There is a popular film now in theaters featuring a huge cast of superheroes. Various figures and groups of heroes appearing were featured in earlier films. Each of these films was successful enough that it is clear the producers thought that combining them in ever-larger combinations would be an even greater hit. Well, maybe. And this is an object lesson for any business.
My argument is that too many targets can weaken the entire marketing campaign.
Why? Let's look at our "Mega-film". Twenty two characters can only have so much screen time and some, from what I understand, don't even have any lines! If I am a fan of "Steel Guy" I am in risk of being annoyed that "Furry Creature" is eating into my hero's face time. And that's assuming the film isn't a hopeless mishmash. (Which some critics say it is.)
Similarly, if I attempt to message too many different target audiences I risk weakening my message and creating the image of not focusing much on whatever, say, Target Group A wants when I try to throw a line out to B at the same time. This creates the possibility I'll look like too much a generalist and easy to disregard in favor of a specialist competitor.
Bottom Line: Be careful not to pile on with the superheroes and end up creating a badly diluted campaign. Focus a given message on one carefully identified target audience and give that target the largest possible face time with your product and service.
Showing posts with label Target customer. Show all posts
Showing posts with label Target customer. Show all posts
Wednesday, May 23, 2018
Friday, October 6, 2017
The Power of Story
A recent conversation with a client illustrates the power of story in not only messaging but refining a target customer.
The case involved marketing a health-focused product. Our conversation began with a better understanding of a fairly vague target. The client told her own story of becoming a customer of the product and it occurred to me that the story was much more useful than the client expected: that is, while it was on the one hand a marvelous device for expressing the client's passion, warmth and energy and the product's virtue, it was also a means of connecting with the right target. And in this case someone more or less exactly like the client.
I invited the client to fill in the details of the point where the product changed the client's life and to think of speaking to those in the same life circumstances, as if a group of friends. The story will become a valuable video in the client's messaging.
Bottom Line: Having difficulty narrowing your focus to an ideal target customer? Consider writing down your own story on how you came to offer your own particular product or service and then visualize who you're speaking to as concretely as possible. You should begin to gain some very valuable perspective as well as juice up your own messaging!
The case involved marketing a health-focused product. Our conversation began with a better understanding of a fairly vague target. The client told her own story of becoming a customer of the product and it occurred to me that the story was much more useful than the client expected: that is, while it was on the one hand a marvelous device for expressing the client's passion, warmth and energy and the product's virtue, it was also a means of connecting with the right target. And in this case someone more or less exactly like the client.
I invited the client to fill in the details of the point where the product changed the client's life and to think of speaking to those in the same life circumstances, as if a group of friends. The story will become a valuable video in the client's messaging.
Bottom Line: Having difficulty narrowing your focus to an ideal target customer? Consider writing down your own story on how you came to offer your own particular product or service and then visualize who you're speaking to as concretely as possible. You should begin to gain some very valuable perspective as well as juice up your own messaging!
Tuesday, September 19, 2017
The Power of the Change of Perspective
It is sometimes the case that a change of perspective can make all the difference. I have had many conversations with business owners who are so close to their own work that they can miss opportunities more readily seen by another.
Two recent cases provide some illustration:
A client expressed some frustration that a networking group was heavily represented by people who were not her target customers. But as it turned out, those networkers were married to target customers. The suggestion was to develop a special event that brought in the networkers to help them with gift giving to their partners! We used a simple but effective one-off to reach the actual target customer.
Another client was no longer reaching target customers at a set of venues---large universities. Her virtually-identical messaging, once dependable, wasn't generating responses. A proposal was to turn to the next tier down (smaller colleges) which have very similar students but who have different, more attractive circumstances.
In both cases the business owner hadn't seen the possibilities, being a little too close to the usual and expected marketing approaches.
Bottom Line: Are you having marketing challenges? The remedy may be as simple as seeking another person's perspective to permit some out of the box thinking. Don't let your closeness to existing solutions limit your possibilities!
Two recent cases provide some illustration:
A client expressed some frustration that a networking group was heavily represented by people who were not her target customers. But as it turned out, those networkers were married to target customers. The suggestion was to develop a special event that brought in the networkers to help them with gift giving to their partners! We used a simple but effective one-off to reach the actual target customer.
Another client was no longer reaching target customers at a set of venues---large universities. Her virtually-identical messaging, once dependable, wasn't generating responses. A proposal was to turn to the next tier down (smaller colleges) which have very similar students but who have different, more attractive circumstances.
In both cases the business owner hadn't seen the possibilities, being a little too close to the usual and expected marketing approaches.
Bottom Line: Are you having marketing challenges? The remedy may be as simple as seeking another person's perspective to permit some out of the box thinking. Don't let your closeness to existing solutions limit your possibilities!
Friday, September 8, 2017
Proper Preparation is Essential
A distinguished colleague yesterday told me about some of her recent client situations and in particular how few were really prepared to take advantage of her services building a client base with funnel methodologies. Some had only the sketchiest idea who is their target customer. This is disappointing and a striking challenge for our small business community.
Having a well defined target is absolutely essential. It is not going to work to say that "my customer is everyone who needs my service", or that "anyone is my best prospect." Marketing is costly and time consuming and must be rationed to only the absolutely best market segments.
It does take courage to be willing to focus narrowly. And it may require some market research to determine that focus. But it must be done. And when you are prepared to look for that sharpest and best defined segment (in terms of age? gender? location? circumstances?) one is then properly prepared to put the professional services of those like my colleague to best effect.
Bottom Line: Step back today and think about your own best target prospect. Narrow to a particular demographic or behavior who is absolutely most likely to pay for your product or service. And only then look at the appropriate marketing channel for your business.
Having a well defined target is absolutely essential. It is not going to work to say that "my customer is everyone who needs my service", or that "anyone is my best prospect." Marketing is costly and time consuming and must be rationed to only the absolutely best market segments.
It does take courage to be willing to focus narrowly. And it may require some market research to determine that focus. But it must be done. And when you are prepared to look for that sharpest and best defined segment (in terms of age? gender? location? circumstances?) one is then properly prepared to put the professional services of those like my colleague to best effect.
Bottom Line: Step back today and think about your own best target prospect. Narrow to a particular demographic or behavior who is absolutely most likely to pay for your product or service. And only then look at the appropriate marketing channel for your business.
Monday, August 14, 2017
A Strange Way to Market
Lately I have been watching a strange marketing campaign. It strikes me as one that violates all of the rules of successful marketing strategy. It isn't working, but its promoter is only doubling down and making a more frantic effort along the same lines.
The marketeer chose as the strategy a variation of the old "Brand X" model where a brand seeks an advantage over a competitor by pointing at defects in the competitive product. Over time Brand X campaigns have gotten shallower and even nastier. (An example: an ISP even practically grunts, Tarzan-style, "Us good. Them bad".)
Our example advertiser doesn't spend any time or energy promoting their own product. Everything is directed at assailing the competitor, describing it and the competitor in the vilest way, advancing extremely dubious claims that often don't hold water, and hinting rather conspicuously that the product could only be desirable to subhumans. What is worse is that the marketeer in question actually attacks consumers of the alternative product as idiots---and much worse.
Step back and think about this. You want to command the market and sell your product. To do that you need more consumers. To do that you need to convince those prospects to buy yours. And yet you....insult--and attack--those prospects. What a strange, foolish way to do business. It is no wonder that the advertiser is failing miserably with declining sales over time. Yet that advertiser persists and is doubling down with stronger, nastier insults.
Bottom Line: Are you selling with a Brand X or derivative strategy? Are you finding yourself, even unintentionally, attacking prospects who go elsewhere? Always return to basic principles of informing and courting prospects and where competitors exist only pointing out your own competitive advantages rather than any self-perceived deficiencies.
The marketeer chose as the strategy a variation of the old "Brand X" model where a brand seeks an advantage over a competitor by pointing at defects in the competitive product. Over time Brand X campaigns have gotten shallower and even nastier. (An example: an ISP even practically grunts, Tarzan-style, "Us good. Them bad".)
Our example advertiser doesn't spend any time or energy promoting their own product. Everything is directed at assailing the competitor, describing it and the competitor in the vilest way, advancing extremely dubious claims that often don't hold water, and hinting rather conspicuously that the product could only be desirable to subhumans. What is worse is that the marketeer in question actually attacks consumers of the alternative product as idiots---and much worse.
Step back and think about this. You want to command the market and sell your product. To do that you need more consumers. To do that you need to convince those prospects to buy yours. And yet you....insult--and attack--those prospects. What a strange, foolish way to do business. It is no wonder that the advertiser is failing miserably with declining sales over time. Yet that advertiser persists and is doubling down with stronger, nastier insults.
Bottom Line: Are you selling with a Brand X or derivative strategy? Are you finding yourself, even unintentionally, attacking prospects who go elsewhere? Always return to basic principles of informing and courting prospects and where competitors exist only pointing out your own competitive advantages rather than any self-perceived deficiencies.
Wednesday, May 25, 2016
More on Target Market Refinement
Earlier in the week I joined a workshop on client acquisition and picked up some fascinating insights that further shaped my own thinking on defining the elusive "target customer".
Our host used as his theme putting away firewood for the winter as an analogy for databasing potential customers. The farmer cut enough wood to cover his needs and stockpiled those outside the house for later use.
The exercise he engaged in was bound up in the tactics of taking "trees" and converting them to "stacked wood". I'm just as fascinated with the process of finding the trees. For many, the assumption would be that "all trees are my customers" and cull what is needed. But even our farmer had to narrow the focus, viz:
1. Trees reachable from the farm, either close enough in distance, accessible by road, and/or not owned by someone else.
2. Trees that are the right ones from which to make firewood. (e.g. No pines, shrubs, etc.)
3. Trees that are sufficiently old enough to cut.
4. Trees free of diseases, rot, etc.
5. Trees that can in fact be cut with the tools at hand.
6. Trees whose wood is more valuable for other uses (e.g. fine furniture, syrup production, etc.)
As we search for good customer prospects, we must always be mindful that not all of the "trees" are even going to be prospects, and of the prospects not all will be qualified. We can improve our ROI on prospecting, and finding customers through appropriate media channels, by thinking about exactly what kind of "tree" we want and spending our valuable time on those.
Bottom Line: Look at your concept of a "target customer" and ask, is this truly focused enough? Is this a person I can reach, that would ever be a customer, would present more difficulties than gains, and can ever use my help? Size up your trees!
Our host used as his theme putting away firewood for the winter as an analogy for databasing potential customers. The farmer cut enough wood to cover his needs and stockpiled those outside the house for later use.
The exercise he engaged in was bound up in the tactics of taking "trees" and converting them to "stacked wood". I'm just as fascinated with the process of finding the trees. For many, the assumption would be that "all trees are my customers" and cull what is needed. But even our farmer had to narrow the focus, viz:
1. Trees reachable from the farm, either close enough in distance, accessible by road, and/or not owned by someone else.
2. Trees that are the right ones from which to make firewood. (e.g. No pines, shrubs, etc.)
3. Trees that are sufficiently old enough to cut.
4. Trees free of diseases, rot, etc.
5. Trees that can in fact be cut with the tools at hand.
6. Trees whose wood is more valuable for other uses (e.g. fine furniture, syrup production, etc.)
As we search for good customer prospects, we must always be mindful that not all of the "trees" are even going to be prospects, and of the prospects not all will be qualified. We can improve our ROI on prospecting, and finding customers through appropriate media channels, by thinking about exactly what kind of "tree" we want and spending our valuable time on those.
Bottom Line: Look at your concept of a "target customer" and ask, is this truly focused enough? Is this a person I can reach, that would ever be a customer, would present more difficulties than gains, and can ever use my help? Size up your trees!
Friday, February 26, 2016
Five Steps Small Businesses Can Take to Better Market Themselves
Yesterday I was asked if I could share five ideas of things businesses do wrong when marketing themselves. That sounds so demotivating, so let's cast this as five steps a small business can take to step it up! Same thing, perhaps, but a better tone.
#1. Refocus on your target customer. Too many businesses adopt a philosophy that they serve "everyone" or several different segments at the same time. It's vital to decide what one, laser-focused segment is your true target and aim marketing messages to them. If others buy, that's great, but they cannot be the place you spend time and money. Let's face it: advertising of any kind is expensive and the highest return on every dollar spent will be the customers who are most likely to buy.
#2. Take a good look at your messaging. Do the messages you send when promoting, advertising and selling work together? Can a customer make sense of what you offer? Can someone clearly describe you, your products and services, and how you can help them? Can they easily confuse you with a competitor?
#3. Find that point of differentiation. Most businesses operate in a highly competitive space where consumers find it difficult to understand how one provider differs from another. Your messages are much sharper when you can find a way to stand out, positively, from other choices, Don't make it about price. Do you have a unique skill? use special raw materials? provide extra value?
#4. Engage with your customers. Use tools like an email newsletter, blog, social media platform, and video to make your products and services so much more personal. Create value added by sharing ideas and information, asking questions, and stirring up excitement with contests or special events. People like to do business with people and every chance you have to engage boosts the chance someone else will refer business to you.
#5. Be picky with social media. There are (too) many social media platforms out there and I can absolutely guarantee that not all of them are appropriate for a given small business. Too many small businesses spend huge amounts of time posting and interacting at too many sites. How many do you currently use? Weed out the non-performers and focus on the top three or four.
Bottom Line: Every business can take its game up a notch. Can you sharpen your focus, tighten your message, find ways to engage more actively, and stand out a little better?
#1. Refocus on your target customer. Too many businesses adopt a philosophy that they serve "everyone" or several different segments at the same time. It's vital to decide what one, laser-focused segment is your true target and aim marketing messages to them. If others buy, that's great, but they cannot be the place you spend time and money. Let's face it: advertising of any kind is expensive and the highest return on every dollar spent will be the customers who are most likely to buy.
#2. Take a good look at your messaging. Do the messages you send when promoting, advertising and selling work together? Can a customer make sense of what you offer? Can someone clearly describe you, your products and services, and how you can help them? Can they easily confuse you with a competitor?
#3. Find that point of differentiation. Most businesses operate in a highly competitive space where consumers find it difficult to understand how one provider differs from another. Your messages are much sharper when you can find a way to stand out, positively, from other choices, Don't make it about price. Do you have a unique skill? use special raw materials? provide extra value?
#4. Engage with your customers. Use tools like an email newsletter, blog, social media platform, and video to make your products and services so much more personal. Create value added by sharing ideas and information, asking questions, and stirring up excitement with contests or special events. People like to do business with people and every chance you have to engage boosts the chance someone else will refer business to you.
#5. Be picky with social media. There are (too) many social media platforms out there and I can absolutely guarantee that not all of them are appropriate for a given small business. Too many small businesses spend huge amounts of time posting and interacting at too many sites. How many do you currently use? Weed out the non-performers and focus on the top three or four.
Bottom Line: Every business can take its game up a notch. Can you sharpen your focus, tighten your message, find ways to engage more actively, and stand out a little better?
Friday, January 8, 2016
Lessons From "Frozen"
It's a cold and dreary January day, and I enjoy finding marketing lessons even on such, and one that occurs to me is the phenomena ("film" seems so limiting) called "Frozen". What can we learn?
One thing that stands out is the total focus on the target customer. Disney knows that "princess" movies sell very well. "Brave" comes to mind. That pint-sized princess customer demands doe-eyed heroines, cute talking animals, hunky prince-types, and memorable music that parents are sure to learn to the last word (as innocent bystanders, e.g. "Let It Go").
Furthermore, the studio certainly grasps the boundless possibilities of crossover marketing and does well by sticking to the time-honored "princess" formula. They know there is a huge market seeking to use the film's characters on everything from cereal boxes to sleepwear. I don't approve of these licensing arrangements with respect to those seeking to exploit the film characters, but I can't blame Disney for priming the pump.
Bottom Line: a business is always wise to focus like a laser on the target customer and respect their wants and needs. It also makes a world of sense to avoid changes to successful product and service lines, especially if they lead to productive and lucrative partnerships.
One thing that stands out is the total focus on the target customer. Disney knows that "princess" movies sell very well. "Brave" comes to mind. That pint-sized princess customer demands doe-eyed heroines, cute talking animals, hunky prince-types, and memorable music that parents are sure to learn to the last word (as innocent bystanders, e.g. "Let It Go").
Furthermore, the studio certainly grasps the boundless possibilities of crossover marketing and does well by sticking to the time-honored "princess" formula. They know there is a huge market seeking to use the film's characters on everything from cereal boxes to sleepwear. I don't approve of these licensing arrangements with respect to those seeking to exploit the film characters, but I can't blame Disney for priming the pump.
Bottom Line: a business is always wise to focus like a laser on the target customer and respect their wants and needs. It also makes a world of sense to avoid changes to successful product and service lines, especially if they lead to productive and lucrative partnerships.
Tuesday, December 29, 2015
Know Your Audience: The Lesson of Jimi Hendrix and The Monkees
Yesterday I came across an account of a most unusual concert tour held July 8-17, 1967. Some ostensibly bright minds came up with the idea of opening The Monkees with Jimi Hendrix! The Monkees audience hated Hendrix' pyschedelic style and he had enough of their abuse after eight shows.
Were the proponents of this idea insane? To them (Hendrix' manager and Monkee Micky Dolenz) the project made perfect sense! Unfortunately they had a perspective that wasn't focused on the audience's needs or wants. Michael Jeffrey desperately wanted to break Hendrix into a wider market in the U.S. and Dolenz was utterly fascinated with Hendrix' showmanship, knowing The Monkees were more show than music. In both cases, the principals were focused on their own needs.
A wiser head might have suggested that Hendrix open for a band that had a similar style or accent. The Monkees might have been better paired with someone equally pleasing to their followers. The first consideration should have been "what do our customers want and need?"
Bottom Line: Do we as small business owners make decisions about products and services that are focused on ourselves before customers? Are we sending mixed messages about our brand by combining features, offerings, services, etc. that don't serve one target market?
Were the proponents of this idea insane? To them (Hendrix' manager and Monkee Micky Dolenz) the project made perfect sense! Unfortunately they had a perspective that wasn't focused on the audience's needs or wants. Michael Jeffrey desperately wanted to break Hendrix into a wider market in the U.S. and Dolenz was utterly fascinated with Hendrix' showmanship, knowing The Monkees were more show than music. In both cases, the principals were focused on their own needs.
A wiser head might have suggested that Hendrix open for a band that had a similar style or accent. The Monkees might have been better paired with someone equally pleasing to their followers. The first consideration should have been "what do our customers want and need?"
Bottom Line: Do we as small business owners make decisions about products and services that are focused on ourselves before customers? Are we sending mixed messages about our brand by combining features, offerings, services, etc. that don't serve one target market?
Monday, November 30, 2015
New Advertising Techniques are Really the Original Ones
Time was when a business could advertise itself in a very limited number of channels and cover its target remarkably well. I think of my great uncle who owned a pharmacy in my little home town in the '50s and '60s. He could call up the local newspaper, and maybe even one of the few radio stations easily reachable in the area and do as well as anyone could. He would only worry that he reached, say, 75% of his target, instead of 85% or more.
Today, advertising is an absolute nightmare. Channels are astonishingly fragmented, especially once Internet advertising became a reality. There are hundreds of radio and television channels. It is very difficult to count every possible advertising vehicle available in any given area. I'd dare say one has more advertising options at the South Pole now than were available in New York City even fifty years ago. And it goes almost without saying that no single channel can deliver more than a few percentage points of a target market.
So what to do? It definitely does not make sense to buy ad space to the desired cumulative target. That would be ridiculously ineffective. For many of us it is also too expensive to use targeting technology like geodemographic coding. And it's incredibly difficult to understand the reach of each and every advertising channel.
My thinking is that for small business, at least, the new normal does not include traditional advertising. No newspapers. No magazines. No radio. No television. The return on investment simply isn't there. What I do see is that we need to exploit the potential of what used to be called network marketing. Each of our network contacts in turn knows others who know others, and so on. By creating strong, trusting referral relationships we in essence create an advertising-and-marketing channel of considerable power. In various ways this is a return to principles established before there was widespread print and classical "advertising": long ago your products and services were promoted by the people who knew and trusted you.
It's more work, to be sure, than just buying an ad. But the bond is stronger.
Bottom Line: There is really nothing new, even in advertising. Using very fundamental principles can work well for you.
Today, advertising is an absolute nightmare. Channels are astonishingly fragmented, especially once Internet advertising became a reality. There are hundreds of radio and television channels. It is very difficult to count every possible advertising vehicle available in any given area. I'd dare say one has more advertising options at the South Pole now than were available in New York City even fifty years ago. And it goes almost without saying that no single channel can deliver more than a few percentage points of a target market.
So what to do? It definitely does not make sense to buy ad space to the desired cumulative target. That would be ridiculously ineffective. For many of us it is also too expensive to use targeting technology like geodemographic coding. And it's incredibly difficult to understand the reach of each and every advertising channel.
My thinking is that for small business, at least, the new normal does not include traditional advertising. No newspapers. No magazines. No radio. No television. The return on investment simply isn't there. What I do see is that we need to exploit the potential of what used to be called network marketing. Each of our network contacts in turn knows others who know others, and so on. By creating strong, trusting referral relationships we in essence create an advertising-and-marketing channel of considerable power. In various ways this is a return to principles established before there was widespread print and classical "advertising": long ago your products and services were promoted by the people who knew and trusted you.
It's more work, to be sure, than just buying an ad. But the bond is stronger.
Bottom Line: There is really nothing new, even in advertising. Using very fundamental principles can work well for you.
Wednesday, August 19, 2015
The Two-Target Dilemma
A local professional association is struggling with its marketing. Recruiting new members has not been easy: prospects tell recruiters that they don't see enough value in the membership. Ordinarily, that should be easy to solve.
There's a major twist in the story. The association has two kinds of members, and they are very different.
One type of member is business owners, preferably located in a specific area of the city. They most often seek an opportunity to network. Another type are residents who live in the specific area. They most often seek information about plans for development in that area. Trying to create a meeting format that satisfactorily addresses both sets of needs has proven nearly impossible. Hence, prospects of both types say they don't see enough value.
I have seen this effect over and over. It is very prevalent in non profit associations. They try to grow as large as possible by diluting their target and accepting "marginal" possibilities. The trouble is, it is harder to market to and satisfy the needs of divergent customers.
In the case of this association, the current solution is to tweak the agenda and recruit with brute force---door to door contacts in the specific area of the city, all in hopes of getting just enough new people to advance the association's metrics. I think the solution is to be realistic: pick the primary target and build agendas and offerings that suit that target. Otherwise, admit members of other types at a lower rate and no expectation they will be "served." An organization must focus to efficiently find and serve customers, and there is no room for mixed messages.
Bottom line: does your business (or organization) have a two-target problem? can you really afford to serve two very different customers?
There's a major twist in the story. The association has two kinds of members, and they are very different.
One type of member is business owners, preferably located in a specific area of the city. They most often seek an opportunity to network. Another type are residents who live in the specific area. They most often seek information about plans for development in that area. Trying to create a meeting format that satisfactorily addresses both sets of needs has proven nearly impossible. Hence, prospects of both types say they don't see enough value.
I have seen this effect over and over. It is very prevalent in non profit associations. They try to grow as large as possible by diluting their target and accepting "marginal" possibilities. The trouble is, it is harder to market to and satisfy the needs of divergent customers.
In the case of this association, the current solution is to tweak the agenda and recruit with brute force---door to door contacts in the specific area of the city, all in hopes of getting just enough new people to advance the association's metrics. I think the solution is to be realistic: pick the primary target and build agendas and offerings that suit that target. Otherwise, admit members of other types at a lower rate and no expectation they will be "served." An organization must focus to efficiently find and serve customers, and there is no room for mixed messages.
Bottom line: does your business (or organization) have a two-target problem? can you really afford to serve two very different customers?
Monday, August 17, 2015
Lessons from a Door to Door Evangelist
Last week I was visited here at the home office by some representatives of a well known religious organization. These souls were evangelizing through the thinly concealed device of peddling a "free magazine" (the one that is the voice for that particular sect). Strip away the religion and we really had a door-to-door marketing campaign. And the representatives made about as many marketing mistakes as one could make.
1. Target marketing. The campaign was a simple brute force door-to-door, heedless of analysis of demographics. The mother organization presumably feels "everyone" is a target customer, and its representatives (and there were at least five (!) in my little cul-de-sac) waste massive amounts of time knocking on doors. And by the way, they visited on a weekday morning when hardly anyone is at home.
2. Brand messaging. Almost nil. The representatives were bizarrely attired, and didn't telegraph a positive image.
3. Establishing a connection with the prospect. The representative who addressed me started with (and I am not making this up) "would you like to receive a magazine?". The person could have engaged me with light philosophical questions such as "Do you feel like you aren't getting all the right answers" or some such to spark a conversation about how they can help solve my problems. Of course I don't want a magazine!
4. Tactics. Door to door is not, in my opinion, an old school tactic that works well any more. With concerns about crime alone people don't respond well to the knocked door appeal. I can't remember when a door-to-door contact engendered a really positive experience (except maybe the Girl Scout Cookie kids.)
5. Sampling. Do not ask me if I want a magazine subscription. Do leave behind something I can read. Or leave something as a gift that might invite me to warm up. A coupon? a tract? Sure, 95% of the stuff will be tossed but I might be more willing to respond if I get something, rather than be asked to give or do something.
Bottom line: even the church must pay attention to marketing lessons. This little contact was a fine reminder that the fundamentals matter.
1. Target marketing. The campaign was a simple brute force door-to-door, heedless of analysis of demographics. The mother organization presumably feels "everyone" is a target customer, and its representatives (and there were at least five (!) in my little cul-de-sac) waste massive amounts of time knocking on doors. And by the way, they visited on a weekday morning when hardly anyone is at home.
2. Brand messaging. Almost nil. The representatives were bizarrely attired, and didn't telegraph a positive image.
3. Establishing a connection with the prospect. The representative who addressed me started with (and I am not making this up) "would you like to receive a magazine?". The person could have engaged me with light philosophical questions such as "Do you feel like you aren't getting all the right answers" or some such to spark a conversation about how they can help solve my problems. Of course I don't want a magazine!
4. Tactics. Door to door is not, in my opinion, an old school tactic that works well any more. With concerns about crime alone people don't respond well to the knocked door appeal. I can't remember when a door-to-door contact engendered a really positive experience (except maybe the Girl Scout Cookie kids.)
5. Sampling. Do not ask me if I want a magazine subscription. Do leave behind something I can read. Or leave something as a gift that might invite me to warm up. A coupon? a tract? Sure, 95% of the stuff will be tossed but I might be more willing to respond if I get something, rather than be asked to give or do something.
Bottom line: even the church must pay attention to marketing lessons. This little contact was a fine reminder that the fundamentals matter.
Wednesday, July 22, 2015
Lessons from a Closed Business
Last week a business closed in our city. That's not unusual, unfortunately. But this was a business I knew better than most. I had even spoken with them about their business ten months ago. I had been asked to visit them because they had some problems needing a remedy. While that consultation did not lead to a contract, I kept watching them. You see, they didn't -- as far as I could tell -- change their marketing tactics. That in the end did them in after 18 months of operation.
I'm not about to write that if they picked up my contract that I would have saved their business. However, I do think I understood some of their challenges and that advice would have helped. Now they are a learning experience. What did I learn?
(a) The business had an unrealistic expectation for a target customer. In fact, they had three types of consumers in mind which were truly incompatible with one another. Lesson: focus on one target. Doing so will not confuse the brand message.
(b) The business spent too much money on unproductive promotions, such as sponsorship of softball teams. With a single target customer they should have been able to direct marketing dollars to channels where that customer "lives."
(c) The business blurred its brand with conflicting signals. Even their business name was at cross purposes with their line of products and services!
(d) The business never truly addressed the challenge of an inferior location. They waited for the landlord to deal with better signage and location marketing. But at the end of the day such a business must fend for itself and work their location. Special invitational events might have helped enormously, along with marketing following from (a) above.
(e) The business made tactical mistakes, first dropping a "normal" line of service, then reinstating it (in desperation?) near the end. They also maintained unusual service hours. To some extent they telegraphed their problems and may have alienated customers. Worse: the principals had no important experience in that type of business when they purchased the store.
This was a business that existed in a vastly competitive space and is common enough that mistakes shouldn't have been made: their solutions are known. It's so sad to see a business die for not adhering to marketing fundamentals. This story is a reminder to stick to fundamentals, especially being very precise about target customer, brand messaging, and thoughtful marketing tactics.
I'm not about to write that if they picked up my contract that I would have saved their business. However, I do think I understood some of their challenges and that advice would have helped. Now they are a learning experience. What did I learn?
(a) The business had an unrealistic expectation for a target customer. In fact, they had three types of consumers in mind which were truly incompatible with one another. Lesson: focus on one target. Doing so will not confuse the brand message.
(b) The business spent too much money on unproductive promotions, such as sponsorship of softball teams. With a single target customer they should have been able to direct marketing dollars to channels where that customer "lives."
(c) The business blurred its brand with conflicting signals. Even their business name was at cross purposes with their line of products and services!
(d) The business never truly addressed the challenge of an inferior location. They waited for the landlord to deal with better signage and location marketing. But at the end of the day such a business must fend for itself and work their location. Special invitational events might have helped enormously, along with marketing following from (a) above.
(e) The business made tactical mistakes, first dropping a "normal" line of service, then reinstating it (in desperation?) near the end. They also maintained unusual service hours. To some extent they telegraphed their problems and may have alienated customers. Worse: the principals had no important experience in that type of business when they purchased the store.
This was a business that existed in a vastly competitive space and is common enough that mistakes shouldn't have been made: their solutions are known. It's so sad to see a business die for not adhering to marketing fundamentals. This story is a reminder to stick to fundamentals, especially being very precise about target customer, brand messaging, and thoughtful marketing tactics.
Monday, June 15, 2015
Taking Care of the Fundamentals
One of my current challenges is to help a client focus their brand and build awareness of a new location. In reviewing their social media and web traffic it is clear that the entity has what I call a community of interest but not quite what we would call an organizational clientele. Put simply, they have friends, followers, allies, and what have you, but not nearly as many real paying customers.
Our mission will be to move the friends into the store and become customers. Why is there a disconnect? In this particular case, the entity hasn't done one of the fundamentals of business planning. They haven't defined their target customer and as a result have not developed a strategy for reaching out to that customer. Not all of their followers and allies are likely to be target customers, although they may work out well as investors, say.
So many marketing conundrums are the result of a fundamental that hasn't been addressed. In turn, so much can be accomplished when we know who our customer is, where they can be found, and what are their needs. Have you reviewed your own business plan? it is never too late to take care of this before larger challenges result!
Our mission will be to move the friends into the store and become customers. Why is there a disconnect? In this particular case, the entity hasn't done one of the fundamentals of business planning. They haven't defined their target customer and as a result have not developed a strategy for reaching out to that customer. Not all of their followers and allies are likely to be target customers, although they may work out well as investors, say.
So many marketing conundrums are the result of a fundamental that hasn't been addressed. In turn, so much can be accomplished when we know who our customer is, where they can be found, and what are their needs. Have you reviewed your own business plan? it is never too late to take care of this before larger challenges result!
Friday, April 17, 2015
Not Everyone is Your Target Customer
Every so often I hear a pitch by a small business owner that overtly or indirectly suggests that they target customer is "everyone" who (fill in the blank). Maybe the product or service is pizza or insurance or landscaping or printing. The cruel reality is that this is never the case, regardless of geography, product, service, or time.
We want to be as realistic as possible with our expectations as expressed in our business and marketing plans. Our target customer is a good deal more limited than we may think. For example:
1) Even with the advent of e-commerce, geography is a consideration. Consumers will likely not travel beyond a certain radius for what we sell. Depending on the product or service that could be as little as a mile or two.
2) Not every consumer has the budget or same price sensitivity. Incomes vary. Circumstances vary. Many people are amazingly frugal and will find ways not to buy something they use, either making their own or finding used or substitute products.
3) Consumers may be strongly bonded to an existing provider, and no price point or other incentive will tear them loose.
4) The consumer may not like or be able to use what you sell. There is always, as they say, someone who hates ice cream (for example).
5) And, it is possible your own advertising, promotion, or reputation worked against you among some consumers, no matter how excellent your work.
Are you overestimating your target market potential?
We want to be as realistic as possible with our expectations as expressed in our business and marketing plans. Our target customer is a good deal more limited than we may think. For example:
1) Even with the advent of e-commerce, geography is a consideration. Consumers will likely not travel beyond a certain radius for what we sell. Depending on the product or service that could be as little as a mile or two.
2) Not every consumer has the budget or same price sensitivity. Incomes vary. Circumstances vary. Many people are amazingly frugal and will find ways not to buy something they use, either making their own or finding used or substitute products.
3) Consumers may be strongly bonded to an existing provider, and no price point or other incentive will tear them loose.
4) The consumer may not like or be able to use what you sell. There is always, as they say, someone who hates ice cream (for example).
5) And, it is possible your own advertising, promotion, or reputation worked against you among some consumers, no matter how excellent your work.
Are you overestimating your target market potential?
Tuesday, March 24, 2015
Challenges of Specialized Target Markets
Some of my fellow small business owners face unusually difficult marketing challenges because their target market is extremely specialized. This is the literal opposite of a grocer or gas station where the potential market can be large and wide. Typical advertising plans in this case go out the window due to the very low coverage ratio (i.e. almost no one who sees the ad is a target). So what to do?
Market Research is essential here. At whatever cost or time is needed, the businessperson needs to figure out where to find the target. I would also tap into networks and do some groupsourcing: getting ideas from that wide body of minds. Sometimes there are professional associations or meetup groups. Are there affinity publications? chat rooms? web sites? A database can be created of people in the target market or leads to collections of them.
With that in hand, outreach promotion or advertising can be effected. It may be easier in some cases to advertise or enter a discussion group. In other cases direct contact may be necessary to tap people in the target, adding to the database, and making possible requests for referrals. Another technique is to build a Meetup group oriented to the target where you can facilitate discussions and share information in a "soft" sell mode.
Last but not least, ask through networks for someone who may be a target. Ask if you can share information on what you do or if the person can connect you to the right target, and keep building. In very little time you may be able to assemble a sizeable, engaged and attractive data set of target prospects.
It can be done! Start with that first small step.
Market Research is essential here. At whatever cost or time is needed, the businessperson needs to figure out where to find the target. I would also tap into networks and do some groupsourcing: getting ideas from that wide body of minds. Sometimes there are professional associations or meetup groups. Are there affinity publications? chat rooms? web sites? A database can be created of people in the target market or leads to collections of them.
With that in hand, outreach promotion or advertising can be effected. It may be easier in some cases to advertise or enter a discussion group. In other cases direct contact may be necessary to tap people in the target, adding to the database, and making possible requests for referrals. Another technique is to build a Meetup group oriented to the target where you can facilitate discussions and share information in a "soft" sell mode.
Last but not least, ask through networks for someone who may be a target. Ask if you can share information on what you do or if the person can connect you to the right target, and keep building. In very little time you may be able to assemble a sizeable, engaged and attractive data set of target prospects.
It can be done! Start with that first small step.
Friday, February 6, 2015
Mailbox Marketing - Shotgun Targeting
Today's mail collection led to the discovery of one of those flyers affixed to the exterior of the mailbox. We get them every so often. What is remarkable to me is not so much the wide diversity of advertisers -- today's was a a martial arts studio. I am amazed that the business is using such an inefficient method of promoting themselves.
We have talked about identifying and targeting the right customer. It's rare in small business to be successful by "shotgunning" entire neighborhoods. We do see that with the big marketers but for them the marginal cost of the extra mailer is so small that they can afford to broadcast widely. Keep in mind also that for them a neighborhood can be a well-focused appeal (typically using "psychodemographic" and "geodemographic" cues. However, for small business this every-door method is usually wasteful. I can almost see it for a restaurant or a landscaper. For most of the rest, not so much.
This is expensive: Add to the printing costs the expense of driving all over everywhere and the opportunity cost of putting labor out on the street instead of something else.
When tempted by mailbox marketing, think about the return on investment and how that would compare with another method. Turn to this methodology with care.
We have talked about identifying and targeting the right customer. It's rare in small business to be successful by "shotgunning" entire neighborhoods. We do see that with the big marketers but for them the marginal cost of the extra mailer is so small that they can afford to broadcast widely. Keep in mind also that for them a neighborhood can be a well-focused appeal (typically using "psychodemographic" and "geodemographic" cues. However, for small business this every-door method is usually wasteful. I can almost see it for a restaurant or a landscaper. For most of the rest, not so much.
This is expensive: Add to the printing costs the expense of driving all over everywhere and the opportunity cost of putting labor out on the street instead of something else.
When tempted by mailbox marketing, think about the return on investment and how that would compare with another method. Turn to this methodology with care.
Friday, January 16, 2015
Which Demographics Really Matter?
As I talk about defining the Target customer, the usual starting point is demographics. That's really just a fancy word for "what do people look like" although it goes farther into behavior. That said, the insightful marketer understands that some demographics matter, and some definitely do not. And in this day and age, we graze uncomfortably close to what is often called "profiling"--the idea that we can make broad assumptions about categories of people. So what to do?
We know that some demographics matter. We have extensive consumer data showing that there are very clear differences, in general, on the basis of age, income and gender. And we know that most members of these categories behave similarly. And depending on the product or service we can find a few more that stick out. Sometimes ethnicity matters: think specialty food markets. Sometimes ideology matters: think opinion magazines. Sometimes body shape and size matters: ("Bob's Big Men Store") and so on.
The more narrowly we position ourselves, the more important demographics become. A grocer will be a lot less sensitive to demographics than someone who sells handbags. The small business person needs to sit down and list the attributes of the sorts of people who are expected to be customers (something that should be in their business plan). Add also the attributes of customers actually acquired and those of close competitors. Finally, ask yourself what doesn't really matter. Is there really, say, a gender difference? or an income difference? Make sure to keep a realistic focus and ask hard questions based on both reason and observation. An observed difference may be "unreal" (i.e. some "demographics" may be missing).
Marketing can then be applied. Niche customers can be attracted with the right approach. But it all starts with getting a handle on the demographics. The right ones.
We know that some demographics matter. We have extensive consumer data showing that there are very clear differences, in general, on the basis of age, income and gender. And we know that most members of these categories behave similarly. And depending on the product or service we can find a few more that stick out. Sometimes ethnicity matters: think specialty food markets. Sometimes ideology matters: think opinion magazines. Sometimes body shape and size matters: ("Bob's Big Men Store") and so on.
The more narrowly we position ourselves, the more important demographics become. A grocer will be a lot less sensitive to demographics than someone who sells handbags. The small business person needs to sit down and list the attributes of the sorts of people who are expected to be customers (something that should be in their business plan). Add also the attributes of customers actually acquired and those of close competitors. Finally, ask yourself what doesn't really matter. Is there really, say, a gender difference? or an income difference? Make sure to keep a realistic focus and ask hard questions based on both reason and observation. An observed difference may be "unreal" (i.e. some "demographics" may be missing).
Marketing can then be applied. Niche customers can be attracted with the right approach. But it all starts with getting a handle on the demographics. The right ones.
Wednesday, January 7, 2015
Think About the Target Customer
As I have spoken and consulted with business owners, I find that a widespread challenge is identifying the target customer. So much of a marketing plan hinges on knowing who one's target customer is, yet surprisingly few have a handle on such a basic element. Good business plans include a discussion of the target, but even there many business plans cast the net too widely.
Some of the big mistakes? Target customers are not "everyone who lives within x miles", or "everyone who likes gyros", or worse, some variation of "people who like live music, or who like a quiet place to enjoy continental cuisine, or who need someplace to take the kids". We business owners get into trouble when we don't focus. It may be that our clientele includes some very different people, but our target must be rather more narrow. We only have limited marketing resources: we need to strike for those who are the best prospects. Be brave!
There is no time like the present to step back and clearly envision your true target customer. Ask yourself what types of people are best served by your business? who is best represented among your customer base? what do your most profitable 20% look like? Ask for insights from your mentors and trustworthy observers. Do some simple market research. If you are still a little too fuzzy, keep asking questions.
Once you identify the true target customer, your marketing plan will be more productive and you will have more direction on how to serve your public. Clarity is such a blessing!
So who is your target customer?
Some of the big mistakes? Target customers are not "everyone who lives within x miles", or "everyone who likes gyros", or worse, some variation of "people who like live music, or who like a quiet place to enjoy continental cuisine, or who need someplace to take the kids". We business owners get into trouble when we don't focus. It may be that our clientele includes some very different people, but our target must be rather more narrow. We only have limited marketing resources: we need to strike for those who are the best prospects. Be brave!
There is no time like the present to step back and clearly envision your true target customer. Ask yourself what types of people are best served by your business? who is best represented among your customer base? what do your most profitable 20% look like? Ask for insights from your mentors and trustworthy observers. Do some simple market research. If you are still a little too fuzzy, keep asking questions.
Once you identify the true target customer, your marketing plan will be more productive and you will have more direction on how to serve your public. Clarity is such a blessing!
So who is your target customer?
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