What Are You Learning From Your Email Marketing?

To improve customer engagement, use your email marketing to learn more about your customers.

Third party email companies like Constant Contact, Emma and StreamSend are great tools to create an effective email marketing program, though most companies only use them to send out emails and track who opens them.

That’s just the beginning for these tools.  The real fun comes from segmenting your database based on their email activities.

• Test which day of the week provides the best open rates for your database, and make that your email date
• Test subject lines to see which version has a greater open rate
• Test what information generates the most interest by measuring click-thru rates, and craft your future content accordingly
• If some of your audience responds to a certain type of offer, segment them and continue to offer them more of the same.  If another segment of your audience responds to a different stimulus, reach out to them with the information they want to receive.

Through their actions (or inactions), you can learn what your customers want if you take the time to dig into the data. The end results will improve customer engagement so you get the most out of your email marketing.

What have you learned about your customer database from your email marketing?

Hey Netflix – Just Tell Me You Want Me Back

Six months ago I canceled my Netflix account, simply because we weren’t using it.  I like the service, but since we weren’t watching movies, the $4.99 monthly fee was adding up.

Last week I received a direct mail solicitation from Netflix asking me to come back. It was a traditional “win back” offer targeting cancelled customers.

The piece encouraged me to use my Priority Code by February 28, 2010 to get “so much for only $4.99 a month”.  Secondarily, it mentioned Netflix’s newest feature, the ability to download movies to my Tivo or computer, as well as their competitive advantages: no due dates, no late fees, and no need to rush to a kiosk (the latter being a direct shot at RedBox).

I thought the six-month follow-up from Netflix was terrific, as cancelled customers are highly responsive, but the meaningless priority code seemed a bit deceptive and the heavy-handed focus on price seemed off base.  I would have preferred a simple letter saying “we want you back and here are some new things you can do with Netflix.”

If you want to win a customer back, be open and honest.  Tell them why you want them back and what they have been missing.  Former customers chose you once so they know who you are. As a result, your sales pitch should be more transparent.

The Little Things Make A Big Difference

When a company does the little things to make your interaction more enjoyable, it goes a long way.

Over the Christmas break I spent some time in Chattanooga, TN at the Doubletree Hotel.

While Doubletree is best known for its warm chocolate chip cookies, it was some of the other things they did that really made the difference:

–   They called a nearby hotel with an indoor pool so my kids could go swimming.

–   The clock radio had pre-set stations listed as rock, news, pop and sports, so I didn’t have to navigate unfamiliar stations.

–   Even the language they used for the ever-present room signage made me appreciate the experience that much more.

Current economic trends might be preventing you from increasing your marketing spend, but that doesn’t mean you can’t make a positive impact on your customers by making small, positive changes in how you do business.

• I’ve seen home service companies bring the newspaper to the door or clear cobwebs from around the house.
• Publix employees still bring your groceries to your car and they are not allowed to accept tips.
• I’ve received a personal note from my Nordstrom’s sales person.
• Zappo’s typically upgrades shipping to next day air.

In this day of social media – where anyone can make their opinion known to millions – doing the little things to make a positive impact can go far. And often these little things don’t cost you anything.

As you look at 2010, share what you are doing to make a difference with your customers.

Stop Saving Your Business And Start Building It

Vince Lombardi

This week’s blog entry is a pep talk to all those business owners who are hesitant to invest in growing their businesses.

Flat sales are considered the new up.   You’ve made many cuts and are hesitant to make any more.  You may have experienced layoffs.  You wonder what else is next.

Guess what?  You are not alone.  Your competitors are facing the same uncertainties.

The reality is if you have survived this long, you’ve run a good business.

You probably think your conservative nature has helped you make it to this point. That may be true, but it’s time to make a change.

People are spending money.  They still need products and services, and they are going to buy from companies in which they are aware.

This requires spending money on marketing, product innovation, introducing new services.  As I have mentioned in the past – give people a reason to do business with you instead of your competitor.

By doing this, you are letting people know you are open for business.

–   Email current customers with a loyalty discount offer. (If you sell a product, a subject line of “Free Shipping” increased click-thrus 60.7% versus other subject lines, according to an Internet Retailer study.)

–   Call customers to reconnect with them.

–   If your staff needs work, offer discounted audits or analyses.  Chances are you’ll find something your customers need help with.

Here are 15 companies that started and succeeded during a recession:

• GE
• HP
• Microsoft
• Federal Express
• Clif Bar
• Method
• Hyatt
• Burger King
• iHop
• Jim Henson
• Lexis/Nexis
• CNN
• MTV
• Trader Joes
• Sports Illustrated

Enough with the pep talk.

Stop saving your business and start building it again.

Customer Service Doesn’t End – Part 2

Last week I wrote about the importance of having your employees positively represent your brand – even if they are on break.  I highlighted a negative experience I had at Starbucks with some employees on break who decided to smoke near patrons when an alternative was available.

Yesterday I had an interesting experience with another popular brand, one that provided a nice counterpoint to last week’s topic.

I was at a neighborhood CVS yesterday when I approached the check-out line at the same time as a Best Buy employee (though nowhere near a Best Buy) who immediately let me take the place at the front of the line.

When another register opened, that same person let someone else go ahead to the register.

Those small gestures made me feel good about Best Buy and has me thinking about Best Buy in a positive light.

It’s amazing what a positive experience — even an unrelated one — can have on your brand.

Remember, your employees are always representing your brand.

Customer Service Doesn’t End – Even On Break

Employees are always representing your brand as long as they have on your uniform or are at your place of work. They play the most important role in creating a brand experience that is consistent with how you want your brand to be perceived.

One company that works hard to manage its brand is Starbucks.  One key element of the Starbucks brand is creating an environment in which its patrons can enjoy coffee.

Imagine my surprise when two Starbucks employees took their break to have a cigarette, and instead of sitting on the side of the patio in which no one was sitting – and smoking was allowed – they decided to sit near myself and other patrons.

I am not sure what offended me more – the smoke or the ignorance of these employees about the message they were sending to customers at a time when Starbucks is struggling to keep its customers.

Being a marketer and brand advocate, I decided it was the latter.

When your employees interact with the public, they are your brand.  If your truck cuts someone off the road, the person you cut off will remember.  If an employee spits gum on the ground before walking in for their shift – the customer will remember.

Branding starts at home so make sure your employees understand their role in making your brand and your business a success.

How Credit Unions Can Benefit Your Bottom Line

Does your company belong to a credit union?

Even with most credit unions moving to community charters where virtually anyone can join one, there remains additional value by being a member company.

1. Becoming a member company costs your company nothing
2. Your employees get access to loan rates that are typically lower than what banks offer, while savings rates are typically higher
3. Credit unions tend to be more stable than banks
4. They provide the customer service of a community bank
5. They typically have all of the services of a national bank
6. They are a terrific marketing opportunity for your company

A terrific marketing opportunity for your company?

It’s quite simple.  Credit unions tend to have very loyal members.  Members who have “gulped the credit union kool-aid” are evangelists for their credit union.  This halo covers the member companies as well.

The opportunity exists for you to reach out to your credit union business development contact and tell them you would like to market your services to the other credit union members or member companies.

Tell them you want to provide credit union members a special member offer or discount which can be marketed through their emails, on their website and/or newsletter.

The cost of this marketing is minimal, if it costs anything at all, and it gives you access to thousands of people you may not have reached before.

You both win when you gain access to potential new customers.

If you are already a credit union member company, you are halfway there. If not, find one who can best service your needs.  To find credit unions in your area check out the NCUA.

Market Share is Not Recession Proof

I was reading the Three Minute Manager in the March 30 issue of Fortune magazine. The first question asked to the CEOs of Staples, TD Ameritrade and Head of Global Customer Strategy for Bain & Co was “Is it really a good time to go after market share” and their answers were a resounding “yes”.

Most of your competitors are in the same place you are – focusing on revenue and expenses.

You may have gone through your first, second and maybe even third round of cost cutting.

The last thing on your mind is market share. You figure your competitors are most likely cutting their marketing budgets so things should remain status quo except for the one or two weaker competitors who go out of business.

Since when is status quo okay for business?

A recession – especially a deep recession – is the best time to increase market share since it is significantly cheaper to stand out compared to your competitors who may no longer be marketing.

Think about share of voice – similar to market share but determined by your share of media impressions.

For example, everyone in your industry spent a total of $10,000,000 in advertising last year. Your ad budget was $1,000,000 giving you a 10% share of voice.

This year your industry’s ad spend is only $5,000,000. If your budget remains at $1,000,000 you grow your share of voice to 20% thus taking a more dominant role in your industry without increasing your cost. That increased share of voice leads to greater awareness and ultimately more prospects. (Sorry, but it is still up to you to close the sale).

If you reduce your budget by 25% to $750,ooo you are able to achieve a 15% share of voice – thus spending less, yet achieving a greater impact than the $1,000,000 investment made the year prior.

By continuing to market your company, you can actually gain market share more cost-effectively and be in a stronger position when the economy rebounds.

But you have to continue to market because if you stop marketing – even to your customers – someone will take your share of the market.

It is your job to market frugally, but not so much so that it is ineffective.

Here are some things you should consider to hone your marketing effort:

• Look at what tactics are having the greatest return on investment. (A previous post on tracking speaks to what you can do to know what marketing tools are working best.)
  • For example, if you are in a service industry like plumbing, HVAC, etc, the thought of cutting Yellow Page advertising is terrifying, so move slowly by cutting your ad from a spread to a single page and track the changes.

• Continue to aggressively pursue inexpensive ways to market to your customers.
  • Email newsletters
  • Service reminders
  • Phone calls

• Implement a customer referral program

• Look for affiliation marketing opportunities.
  • For example, if you belong to your local chamber of commerce, provide all other chamber members a discount on your products/services.

• Volunteer/Donate services – the free publicity will help you reach a broader audience

These are just five ways you can market smarter so that you can gain market share while it is cheaper to do so.

We hope you’ll use the comment section to tell us how you are gaining market share during the recession.

Is Your Point of Contact No Longer Empowered?

One of the recent trends facing B2B companies is the shift in power back up the corporate ladder.  In the past a mid-level manager may have had the authority to purchase your product or service.  That responsibility now exists farther up the food chain where you may or may not have relationships.

So how do you get the ear of the executive suite?  In the March issue of Harvard Business Review, authors Philip Lay, Todd Hewlin, and Geoffrey Moore cover this topic in their cover article called “Provoke Your Customers“.

The article talks about changing how you sell – from solutions-based to provocation-based.  You need to sell by understanding your client’s “critical issue” beyond what your product or service provides them.  What are the bottom line issues that their business faces and how are you the company to solve it?

Once you identify that critical issue, you need to find a path to the executive in charge. Unfortunately, your current point of contact may be a hindrance since most people don’t like admitting they no longer have the influence they once had.

This is where your sales training goes beyond the typical lead generation.  The authors go on to talk about the importance of using your referral network to get you a meeting.  My advice to you is opening your pitch with “this is going to benefit your bottom line” – as return on investment is critical now more than ever.

People mistake marketing as the final product people see. In fact, it is the thinking and knowledge behind the final product that shows you know how to market smarter.

Why Sharing Customers Is A Good Thing.

A client posed a question to me: “Customers are your most valuable asset, so why in the world would you share them with another company”?  

My answer is simple – to get more customers.  

If you can partner with non-competing, complementary businesses who have a similar customer base, you can have access to a huge group of potential new customers at virtually no cost. In exchange for letting them market to your customer base, you get to market to their customer base.

For example, if you provide pest control services – find companies who also provide home services like electricians, plumbers, etc.  If you own a retailer that sells athletic gear, find a fitness center in which to partner.

If you think about it, you’ll be amazed at the opportunities.

Before you jump in, there are some important steps to remember.

1. Reputation – Make sure the company you partner with has a reputation you want to be associated with.

2. Courtesy – Let the company you are partnering with make the introduction to their customers and vice-versa.  It’s just good customer etiquette.

3. Incentive – Provide an exclusive offer to these new customers to encourage them to try your services. 

4. Recognition – If you are going to market directly to their customers, make sure you merge your customer information so you don’t market to their customers who may also be your customers.

5. Tracking – Make sure you are able to track which new customers come from their customer base so you know if the partnership is equitable. 

Sharing customers can be a great, inexpensive source for growth.  Just another way to help you market smarter.