Bundle Up!
June 17, 2010
It’s tough to stand out when everyone else sells what you do. You need to have something that sets you apart from your competition, and if it can’t be the actual products you sell, then maybe it can be the way you offer those products.
For example, some self-storage facilities offer climate-controlled units, and pickup and delivery of items for businesses. So how about bundling these services, adding something extra, and positioning it as something other than the sum of the parts. Something like this to a restaurant with outdoor seating…
At Bob’s Self Storage, we’re the outdoor dining storage specialists! When it gets too cold for your customers to take advantage of your outdoor seating, just let us know a week in advance. We’ll show up with our 24′ truck, pack up your outdoor tables and chairs, and bring them to our facility for storage.
Then we’ll unload them, wash them top to bottom, and store them for the winter in our custom climate-controlled units. When Spring comes, just give us a heads-up, and we’ll pull the tables and chairs out of storage, give them another cleaning, bring them to your restaurant, and even set them up for you!
It’s all part of our “White-Glove Restaurant Storage Program,” and it’s only available at Bob’s Self Storage!
In reality, the storage facility is not offering anything more than a competitor could offer, but by identifying a specific market niche, identifying the services they might need, and bundling them into a package specifically targeted to that audience, they’ll get a much better response when they offer the package.
As a bonus, because this appears to be something designed especially for that industry, they’ll also be able to justify a higher rate for the main component – the self-storage unit itself – than they would have otherwise.
What can you bundle in your business that can add value to your customers, members, or clients? This is truly a case of the “whole being more than the sum of the parts!”
The Check’s in the Mail
June 1, 2010
There are a lot of ways to present an offer to make it appealing to your prospects. The best and most effective of these focus on the benefits you’ll bring to the customer and the reasons they should select you as the provider.
The insurance business is cutthroat, with virtual “price wars” raging on TV ads between, among others, Geico, Progressive, Allstate, State Farm, and Nationwide, with each one discounting the others’ low-cost claims, and boasting that you’ll save the most with their company.
So in this overcrowded “he said, she said” environment, I was interested in an ad I saw for Nationwide. They claimed that not only would they give you a discount for being accident-free, but they would actually send you a check every six months.
I know, it’s essentially the same thing as offering a discount, but they recognized that people like receiving checks in the mail; it’s the same reason people overpay their income taxes (passively or deliberately) so they can get a big tax-return check the next year.
Think about it – renewal time presents an opportunity to reevaluate your coverage, your carrier, and your agent. What better way to put a quick end to that internal discussion than to send the customer a check for several hundred dollars?
Customer: Do we switch companies? Nah, they just sent me a check!
Try to identify the points where you are most likely to lose customers, and see what strategies you can develop to provide them with something extra – something special – when they’re approaching that point.
Remember, it does no good to keep adding new customers, clients, or members if you’re not keeping the ones you already have.
Inside-Out Marketing
May 27, 2010
This weekend, Lorie and a group of her friends ran a Triathlon. Actually, they were supposed to run a triathlon, but a combination of bad weather and mismanagement caused her to sit this one out. That part of the story is still playing itself out, and I’ll give you an update soon…there will be some customer-service lessons here for sure…
But what I want to talk to you about this week is not the event itself, but rather the day before the event.
Lorie and a few of her friends drove about 30 minutes to pick up their race packets, including the participant numbers they place on their shirts, bikes, and helmets. The pickup took place at a store in Cary, NC, that specifically targets triathletes, and this company is a major sponsor of several large events in the area.
When Lorie and her friends arrived, there were some large tents set up where the participants could go to sign in and collect their packets. Then, they had to go into the store to pick up their T-shirts in the size they had designated when they registered for the race.
There were two problems with this: first, the store was small and very crowded, making it difficult to even move. Clearly, they could have had the T-shirts available outside, but their goal was to get people into the store so they might actually buy something.
Mind you, I don’t begrudge them for doing this any more than I blame Disney for funneling all traffic leaving a popular ride through the gift shop themed around that ride. In fact, I applaud them for doing this, even if it is a bit inconvenient.
But – and this is where they stopped halfway – they gave no incentive for people to step up and make a purchase: no coupons, no one-day sales, and no special “pre-race packages.” They had the perfect opportunity to get people to make that all-important first purchase, and include a “bounce-back” coupon good for the next 14 days to get them back into the store – and into the habit of shopping there.
But they were too busy, too lazy, or too uninformed about effective marketing techniques to take advantage of this incredible opportunity.
Make sure that when you have hundreds of your perfect, ideal customers literally standing inside the door that you do something immediate and deliberate to bring them into the fold – that’s the only way to start building repeat business and lifetime value!
Why Are You in Business?
May 19, 2010
I know that’s kind of a harsh question, but answering it is absolutely central to your company’s long-term success. Have you ever walked into a business and said to yourself, “This place won’t be here in six months,” and when you come back six months later, it’s gone?
It happens all the time.
The only reason you should be in business – whatever type of business – is to offer something special to your customers, members, or clients. Something unique. Something uncommon. Something that helps you stand out from everyone else in your market.
This “something special” is your Unique Selling Proposition, and it can be based on an almost infinite number of characteristics including location, price, market segment, process, customer need, support, or guarantees.
But it has to be based on something. You have to be able to communicate it clearly, concisely, and consistently. If you’re not sure where to start, try answering these four questions:
1. What’s different about what you provide or how you provide it that sets you apart from your competition?
2. If you closed up shop tomorrow what impact would it have on your customers’ lives?
3. What could you tell prospective customers that would cause them to drop everything and come see you right away?
4. Why should prospective customers select you versus all the other options they have?
The answers to these questions will help you define a clear and compelling USP that you can use as a foundation for staking out and owning your market.
Level the Playing Field
May 14, 2010
We all like it when other people “play fair.” In sports, there are referees and umpires to make sure everyone follows the rules. In NASCAR, there are very specific and strict rules about what you can and can’t install in one of the race cars. We have lawyers, judges, and entire legal systems to help make sure the government’s rules are applied fairly.
But I have to say that in the world of business and marketing, I’m not a big fan of the “level playing field.”
I believe that if a business is better at marketing itself, selling its products, and delivering a superior level of customer service; if it invests in infrastructure and education; and, of course, if it obeys the laws and regulations that apply in its specific industry, then it should make more money.
In that sense, I wasn’t at all excited about all the government bailouts that were granted in 2009 – these businesses took dangerous, unnecessary, and, in some cases, reckless risks, and had someone else step in and rescue them from the fate they had earned.
But none of this has to affect you. Remember, you can do almost anything in your marketing as long as it’s not illegal, immoral, or unethical.
And so your job should be to do everything within your ability to create a playing field which is not level at all, but instead, tilted decisively in your direction so that all the business you want flows naturally in your direction.
You can do this by having sales letters, post cards, and web sites that are far superior – and far more effective – than those of your competitors. You can identify a unique position for your products in the marketplace that helps you stand out and avoid being perceived as a commodity. You can create a level of loyalty and long-term value with your existing customers that will help you to get maximum value from every new customer, member, or client you acquire.
I like to have a relatively level playing field on a tennis court or bike ride. But in business, I want the playing field tilted in my direction, and so should you.
Why Are They All the Same?
May 6, 2010
On our recent trip to Puerto Rico, we had the opportunity to taste some of the local food. Actually, we tasted a lot of local food, all of which we thoroughly enjoyed.
One unexpected surprise was the abundance of kiosks – small stands selling different types of homemade specialties, including pastelillos, piononos, arepas rellanas, alcapurrias, and pinchones.
On our way back to San Juan from the east coast of the island, we passed a long row of about 60 different kiosks – these weren’t free-standing, but rather were more like stalls in a long strip-mall kind of setup. They ran the full range from nice to ramshackle, but the food we tried at several of them was fantastic.
The problem was that in most cases, the items on display were virtually identical from one vendor to the next. As we walked from one stall to the next, we both had the reaction: it all looks pretty much the same, so how do we know which ones to buy?
When it came down to making a decision, we bought the ones that had the fillings we were interested in. If one vendor didn’t have that one ready, we went to the next one.
This may work for street vendors, but it’s a death sentence for you in your business. If people perceive what you offer as completely interchangeable with other companies’ offerings, then you’re playing the commodity game – a very dangerous place to be.
Make sure you offer something truly unique, and make sure that you position yourself that way.
Tell Your Friends!
April 8, 2010
In these challenging economic times, you need to do everything you can to generate new business, and referrals are one of the best ways to do this. Unfortunately, most people don’t have a clue how to do this properly, and I got to hear about an example of this just last week.
Erin, our Director of Operations, had just come back to the office from a doctor’s appointment. With a glint in her eye, she said, “Ron, you’re not going to believe this – my doctor’s office has a new-patient referral program.” This was a little exciting, since it’s actually the first time I’ve heard of a doctor being smart enough to try this out.
But then Erin gave me the rest of the details… “You’re not going to believe how much they pay for a referral: five dollars.”
Yes, you read that right: five dollars. That’s just plain wrong on so many levels. Let’s see why…
* So, you want me to go out of my way, remember to mention your office to all my friends when I see them next, and your incentive for me doing all this is…five dollars? Hey, you can barely buy a cup of Starbucks coffee for that these days! Not much of an incentive.
* Plus, they should be able to pay more. A lot more. Let’s say the average office visit costs $200, discounted down to $100 because of negotiated rates with insurance companies. Let’s further assume that we’re dealing with a family of four, who each visit the doctor three times a year. 4 people x 3 visits a year x $100 a visit = $1,200 – and that’s just the first year. Let’s say they stay in the area for five years. That makes the total value of that family a whopping $6,000. Seems to me it’s worth much more than $5 to get that family into the office.
* Finally, there was the method of helping the current patients to get the referrals. There was none. No brochures to hand out to friends, no offers for free visits, nothing at all. In fact, the only way Erin even knew there was a program at all was a small sign at the receptionist’s window. And when she pointed out how weak that offer was, the receptionist just shrugged, not wanting to get into any trouble, I guess.
Of course, if business is falling at that practice, they’ll surely blame it on the economy, and not on their sad, pathetic, imitation of what a real referral program should look like. No, in this case, the cure for their illness would be a good, strong dose of Outrageous Marketing!
How’s Your Back?
March 18, 2010
We just got back from visiting my brother- and sister-in-law who are staying on Hutchinson Island in Florida for a few months. On Sunday, when the weather down there had finally turned nice, they took us to a really nice craft show in Vero Beach, about 20 minutes away.
As always, I’m on the lookout for creative marketing ideas – even ones the people using them don’t quite understand themselves.
For example, I’m always wary about going to craft shows. Don’t get me wrong, I absolutely enjoy seeing fine work and precision in any endeavor, but too often, these craft shows have three or four basic styles that are repeated – with little variation – at every booth throughout the conference.
But at this one, there were nearly as many different types of media, styles, and interpretations as there were individual booths. (Can you say, “Unique Selling Proposition?”)
The one that caught my attention, though, had nothing to do with any of the artists or craftspeople at the show. It was a booth at the far end of the show where they were offering free chair massages and free screenings for neck and back pain.
Of course, this was nothing more than a lead-generation mechanism for a chiropractor’s office, but still it was reasonably well done.
You filled out a brief questionnaire, spoke briefly with the chiropractor, and got a quick five-minute chair massage. If you indicated on your form that you had even one of a wide variety of symptoms, you were invited for an office visit with free X-rays, for only $20.
There were a few things they did right, and a few others they missed, and I’ll share them all with you here so you can have a few things to think about from my field trip:
1. The concept itself was great, especially in an area with an overwhelming majority of senior citizens with various aches and pains who generally have medical insurance that includes chiropractic coverage – a good message-to-market match.
2. An enticing offer: an office visit and X-rays worth over $100 for just $20 – such a deal!
3. Potential patients were required to pay the $20 right then and there to reserve their space and lock in the appointment – an extremely powerful approach to help ensure that people actually show up for the appointment. After all, you can’t sell a treatment plan to an empty chair.
So with all of this done right, what was the problem? They weren’t measuring. When I pulled the assistant aside and asked her what her “show rate” was, (the percentage of people who book an appointment and then actually show up), she didn’t understand the question. Once she did, she said that they paid their $20 at the booth, so naturally they would keep the appointment. If she checked her records, she would certainly discover that wasn’t always the case.
When I asked her what their conversion rate was from the “report of findings” meeting, and what their average case value was, she didn’t understand those questions either, much less have the answers.
Not measuring key performance indicators can derail great marketing strategies just as easily as bad service can. And not knowing how your marketing is working can be a real pain in the neck.
The Flash Pass
December 2, 2009
The Flash Pass
Whenever I speak to groups about marketing their products or services, I always stress that, ultimately, it’s about the experience people have when interacting with the company as much as it’s about what they’re actually buying.
And it’s equally important to note that customers are often willing to pay more for a better experience, whether buying something in a store, planning a trip, or retaining professional services. Hey, even my kids – college students both on very limited budgets – hate Walmart so much they’re willing to pay a bit more to shop at other stores with better service.
Ignoring this basic fact of human nature can cost you a small fortune in lost business. So with that in mind, here’s an example of one company that understands this: the Six Flags theme park company.
Six Flags owns and operates 20 locations in the US, Canada, and Mexico, and is working to establish an international presence over the next few years. And one of the keys to their success is recognizing and meeting the needs of guests willing to pay more for a better experience.
And they do this with two different programs. I’ll explain them both in a minute, but first, let’s have a brief review of what happens when you go to a theme park – any theme park.
You get up early, drag the family out of bed so you can be there right when the gates open. You pay more for parking than you thought the park tickets were going to cost, and then you buy the tickets themselves.
As soon as the clock strikes eight, and they let everyone in, there’s a mad dash – kids in tow, their feet barely touching the ground, as you try to get in line for the “premium” rides – the ones everyone wants to get on. And – good for you – you get a good place in line! But what happens next? You go on to the next great ride, where you’re greeted by a line that will eat up at least 45 minutes of your day. And you have five other big rides to go on. Plus you have to get lunch at some point. Sounds like a fun vacation, doesn’t it?
So recognizing this, Six Flags introduced the Flash Pass. When you get to the ride you want to go on, the Flash Pass holds your place in line electronically so you can go on other rides instead of waiting on line. When it’s almost your turn, the Flash Pass device notifies you. The process doesn’t put you at the front of the line, but it lets you go on other rides instead of waiting in line.
The cost? $34.99 per person for the regular Flash Pass, or $64.99 for the Gold Flash Pass that cuts your wait time by approximately 75%. And that’s on top of the $44.99 per person admission price ($29.99 each for children).
But if that’s not enough, they also have VIP Tours that include front-of-the-line ride privileges, valet parking, reserved show seating, meals and snacks, and a private autograph session with some of the characters.
The cost? $249.00 per person. At least this one includes the park admission fee. Still, for a family of four, that’s $1,000.00 of revenue to attach a minimum-wage teenager to your group for the day.
Not a bad return on investment, and certainly a fantastic illustration of offering premium products and services for people willing to pay for a premium experience.
The question on your mind right now shouldn’t be, “Who in their right mind would pay that much money?!” It should be, “What can I offer that would deliver superior value at a higher price?” Answering that question can be as much fun as a trip to a theme park!
Disney Obsession?
October 29, 2009
Prospective customers can be broken down based on three broad categories: demographics, psychographics, and subcultures.
Briefly, demographics refer to characteristics which are easy to observe or determine: age, gender, race, education, location, etc. Psychographics point to more subjective areas including personality, interests, hobbies, and attitudes. Subcultures come into play when psychographics take on a dominant role in the person’s everyday life. Examples might include vegans, bikers, endurance athletes and “Trekkies.”
Let’s look at an example of how you could use knowledge of these characteristics to your marketing advantage.
We have some friends who probably wouldn’t object to describing them as “Disney fanatics.” They have original animation cells hanging on their walls; they own lots of Disney paraphernalia; and they go on Disney cruises for their vacations.
And they’re not alone – there’s a whole subculture of people who have been Disney fans from a very young age (another important lesson we’ll address another time). But if you knew who these people were and had something to sell to them, you could use Disney references, Disney gifts, and Disney stories as a component of your sales letters.
Because when you speak the language of your prospects you connect better with them, build rapport more quickly, and get better results.
Sure it takes a bit of effort to do this successfully, but your list is your greatest asset, and taking full advantage of your unique and intimate knowledge of it is your best marketing weapon.
