Small Business Revitalization Blog

This morning I was on the BRW site and saw a banner advertisement proclaiming 'Win a chance to meet Warren Buffett!"  All you had to do was subscribe to the Australian Financial Review.  It sounded great, but in the small print it actually stated that there was no guarantee the winner would actually get to meet Mr Buffett!!  Imagine that - you win the prize, but actually it's only the "chance" that you might run into him!  How disappointed would you be!!

AFR is a publication whose reputation and brand has been built on its high level of credibility and integrity of reporting.  What brand manager would let a promotion like that out the door?  Is the AFR so desperate for subscriptions that they're willing to ruin the credibility of their brand by being a little too 'smart' with their competition wording?  Technically they are not misleading their subscribers, but most people would not take the time to read the competition headline literally - 'meet Warren Buffett' would be the message that sinks in.

How often do you run a promotion or other marketing activity which is ever so slightly misleading for your customers?  Wouldn't you rather be a brand which values integrity in its communications? It is never the reality that matters but the perception.  Whether we like it or not, reputations are built on perception not reality.  The next time you put together a promotion, make sure you check what perceptions you are creating!

Now, at this point, many hard-nosed business owners will be thinking, "What do you mean creativity? Have you forgotten we're in a recession? Got better things to do with my time and resources!"  So, this is the moment when I’m going to ask you to forget your tunnel vision, and focus with total laser vision instead! I promise you won’t be sorry!

Marketing Guru Seth Godin says that “Ideas That Spread, Win”.  Now I bet you are thinking, yes, but my product isn’t interesting enough, isn’t innovative, isn’t new, isn’t….. whatever!

Just because what you are selling may be “boring”, does not mean you or your company should be! So, if your business was offering something boring, say a blender, what could you do to make people take notice of your offer? Take a look at this...



Is it cheesy?  Sure!   Is it cheap advertising? Well how would you like to spend $50 on props, make 5 ‘homegrown’ videos and get over six million views on YouTube within one week? BlendTec make the world’s best blenders, but until they thought creatively about their marketing, no-one knew! 

Is it worth starting a creative revolution in your business? Well, as business owners and managers, you know that results are where the rubber meets the road.  Since the introduction of the videos:

• Overall sales increased 43% in the first six months;
• Blendtec's consumer sales increased 500% in 2007;
• Website traffic increased 650%;
• The extended ‘Will It Blend’ campaign has received over 100 million views on YouTube;
• The campaign provided a breakthrough in market segmentation – previously the company was primarily a commercial blender manufacturer;
• Marketing department is now a profit centre for BlendTec!

So, what can we learn about combining creativity and marketing?

1. Be compelling, be quirky, be different.
2. Be entertaining, be surprising.
3. Be willing to experiment.
4. Solve a problem or provide proof your product works.
5. Create a personality for your business.
6. Be prepared to leverage your success.
7. Use social media to your advantage!

Creativity is about culture.  What can you do to encourage creativity in your organization?

For most of us, dealing with unhappy customers is something we'd rather avoid.  Until the advent of social media, the ramifications of NOT 'doing the right thing' were relatively manageable. Not anymore!  In just ten days, Canadian band Sons of Maxwell have had more than 3 million people view their YouTube video "United Breaks Guitars" and 15000 people comment!!! And that's not counting the media coverage the song is getting... CNN, Fox News and more... 

What a customer service and public relations fiasco for United!  And what a great marketing opportunity for Sons of Maxwell!  After 50,000 YouTube views, United Airlines finally got the picture and started talking to the guy with the broken guitar.  Here's a few business lessons that any business owner can take away from United's very expensive mistake...

1. If a customer with a complaint has to talk to more than 2 people to resolve their issue, think about the wages you are paying out whilst they struggle to get a resolution.  Wouldn't you rather create goodwill with that money?  I'm pretty sure that United spent more on wages than the guitar repairs would have cost them...

2. Are your customer service systems designed to make your customers love your business or hate it?  Organise to have your business mystery shopped by 'customers' with complaints - you'll soon find the twitchy bits!  Solve problems before they become a problem - it's often cheaper!

3. Never underestimate the power of an unhappy customer... whether they can sing, gossip, pull strings, share on social media or are just very determined to get 'justice' whatever it takes, you cannot predict what an unhappy customer will do.  What can your staff do to ensure every situation is turned around in a way that is satisfactory for the customer?

Now, of course there are some people that will complain about anything, just to see what they can get.  I am certainly not suggesting that you give money back willy nilly without the situation being genuine and justifiable.  Design an effective customer service strategy which can:

• Ascertain the real facts surrounding the situation.
• Provide a timely and simple response from the customer perspective.
• Minimise damage to your business - word of mouth is both the best publicity and the worst... which one is up to you!!

Every business owner knows how important it is to have a point of difference, but few businesses take this seriously and effectively establish a truly unique position in the minds and hearts of their customers.  And of those that do, few ever leverage those factors that make the business special and desirable to anywhere near the profit potential of the initial idea.  In my business coaching sessions, I often work with clients on these two issues, as they offer some of the best insurance around for creating a successful growing business which is hard for competitors to copy.

The trend for TRANSPARENCY is just one approach you can consider…
There are many industries where customers are highly aware of the risks of being ‘ripped off’ or taken for a ride. If your business is in one of these industries, you have a golden opportunity to deliver way more than your customer expects.

Find ways to make your business dealings transparent to the customer. The more honesty and integrity you can demonstrate, the more trust you can build and the more referrals you can receive and the more you will be able to charge. This works especially well in highly competitive industries or industries where the client requires a high level of trust in you to commence the relationship eg financial services or construction.

What would it take for your potential customers to trust you? What could a transparent business model look like in your industry?

Need some support in discovering your goldmine?  Contact Lisa Murray to arrange your free business coaching session. (No obligation, 30 minute introductory session for new clients only)

Got a comment?  Share your thoughts below...

Imagine this… you are new in town and attending a networking event.  There are plenty of service providers there and you are looking for a day spa you can visit regularly. You meet a hairdresser/beautician who wears no makeup, promotes tanning but is pale as snow and has ratty looking hair…would you use them?

Most of you are already laughing – you are probably thinking ‘stupid question’!  It sounds stupid, but it is a reality for many service providers – who they are does not reflect the products or services they are promoting…  If you are going to promote yourself as a success coach then you must be vibrant and full of life first.  If you are a strategist, then demonstrate your expertise in your conversations.  If you are an image consultant then lose the bright green eyeshadow and frumpy clothes!

When your personal brand is incongruent with your stated business image, your potential clients experience confusion.  They don’t know what to believe… and research tells us that people believe what they see before they believe what you tell them.  Everything about your personal brand needs to reflect your business brand if you are the one representing your business in public!!

As a small business coach, I encourage my clients to look at their personal brand Here’s 5 (hard) questions to ask – if you want an honest opinion, ask for feedback from others who are willing to tell you what they really see:

1.    Does my branding (logo, business cards etc) reflect my product and services accurately?
2.    Am I dressed and groomed appropriately to represent my business?
3.    Do my written communications demonstrate my expertise?
4.    If I met me for the first time, would I have confidence in me?
5.    How else can I add value to my brand to make it even more distinctive and personal?

Reinventing your brand can reinvent your business.  The devil is definitely in the detail!!

Recently I registered a couple of .com.au domain names.  Not long after, I received a very official looking letter from www.domainregister.com.au asking me to pay for these names (again!).  A closer look revealed that these were the .com versions of the sites I had recently registered - and they were offering me the domain names for just $249 each!!  

A quick check on www.godaddy.com revealed that I could get them for $9.99 USD each - a saving of over $450!!!  Of course there was also the enticement of a "free" Ipod Shuffle to take your attention away from the basic offer... Remember that there is generally no such thing as a free lunch... my friends at Domain Register were still making a rather tidy profit from those less vigilant with their accounts!!

The other part of this equation to consider was did I need the .com domains - clearly not as I did not choose to register these first time around...  It always pays to be 'buyer beware' when you receive invoices.  Do check what you are paying for carefully.  It would have been easy to have let that one slip through...and that is exactly what companies like this are hoping for...

		Many small business owners ignore the marketing strategy of networking because they don’t see obvious results on the bottom line, or they feel they are just too busy to invest the time that networking requires.  Here’s 3 quick tips on how to leverage your networking investment and maximize the results:

1.    Define your networking objectives clearly.
‘Getting some leads’ is not a clear objective.  Consider the following instead:
•    Make contact with at least three people who want to know more about what I do
•    Meet someone who can ……….(fill in the gap – what do you need to make your business work better right now?)
•    Find at least two opportunities for joint ventures or promotional partnerships…
Now that you know exactly ‘who’ you are looking for, networking is going to start working for you!!

2.    Follow up!!!
By this I do not mean collect as many cards as you can and add them to your database without asking!!!  Be strategic in your follow-ups:
•    Write notes on the back of the person’s business card if you need to follow up in any way.  Do what you promised within 48 hours.
•    Set up an automated process on your website where you can enter their details into your database – BUT you give them the choice to opt-in!  I actually share an example ezine with my prospects to entice them to sign-up.
•    Be willing to explore.  I often have coffee with people I’ve met just to explore what the possible opportunities are – a quick brainstorm can lead to outstanding profit generating projects!

3.    Measure your networking returns
If you don’t know what you get out of networking events, it’s time to start measuring the return on your marketing investment for each event that you attend.  
•    Set up a simple spreadsheet that notes investment of both time and money, the follow-ups and the outcomes.
•    Measure the returns on any joint promotions that you undertake.
•    Measure the referrals you receive from people you have met networking.

Networking will work for you, when you start working it!  I always go to events with the approach of ‘how can I help you get what you need?”  Give first and you will always receive!

Everywhere I look at the moment there is buzz around using social media as a marketing tool!  Twitter and Facebook are constantly in the news and the growth of 'how to' information is almost overwhelming.  It was refreshing to come across some great social media statistics today that shed some light on what's really happening out there! Over 800 businesses were surveyed by Michael A Stelzner from the Social Media Marketing Industry Report and the tangible results being achieved were very encouraging, especially as using social media is free (except for your time investment):

• Generated exposure for my business (81%)
•  Increased my traffic, subscribers or opt-in list (61%)
• Resulted in new business partnerships (56%)
• Helped us rise in the search rankings (52%)
• Generated qualified leads (48%)
• Reduced overall marketing expenses (45%)
• Helped me close business (35%)

So what is your social media strategy?  If you don't have one, now is the time to start!  Email me if you'd like my free 'Get Started on Twitter' guide! Of course, for Revive Coaching clients, there will be a much more comprehensive guide coming your way soon!

Just for the record, after being on Twitter for less than two weeks, I received my first prospective client enquiry!  How does it get any better than that?

		I come from a family packed full of entrepreneurs and small business owners. Just lately I've been to quite a few family functions and have been loving talking to people about their various businesses.  What's interesting is how often people expect a simple perfect answer when they haven't actually told me what they really want to achieve!  To be successful in any area of your business decision-making, you need to start with your objectives and goals!

For example, I am commonly asked about how to set a marketing budget: "Do you set the marketing budget as a percentage of sales or are there better options?"  My usual response is "It depends, what are you trying to achieve?" 

There are some broad rules of thumb around percentage of turnover for most industries, but if you really want to set a marketing budget that is appropriate for your business you need to ask yourself the following:

• What are the specific business objectives that my marketing budget is supporting?
• What marketing strategies do I need to use to achieve these business objectives effectively?
• How much will effective implementation of these marketing strategies cost?
• Are there other hidden costs involved?  (e.g. lots of time or resources, or compromises on gross profit if pricing strategies are a part of the solution?)
• Can my business afford this marketing strategy?  If not, what are my alternatives?

When you ask questions like these, you are setting your marketing budget strategically, rather than operationally.  You are seeing this budget as an investment which will bring a return to your business... just make sure you measure the results of your efforts so that you know exactly which 20% of your marketing budget is creating the 80% of the results!!!