by Bert Shlensky | Aug 24, 2018 | Marketing
SEO is frequently touted as an effective marketing tool for small business. I receive 3-5 e-mails per week from companies that provide SEO, promising things like first page placement, with inexpensive and quick results. SEO can be highly effective, especially within a comprehensive program. Is SEO overrated for small businesses? I think these claims should at least be reviewed.
- SEO is frequently marketed as a silver bullet. However, it is only a piece in the puzzle of a total marketing program. Integrating programs with social media platforms, like LinkedIn, Facebook, and Twitter require continued posting and new efforts. In particular, key factors such as differentiation, innovation, and attention require additional effort. Also, the pursuit of SEO algorithms can detract from the innovation and differentiation of the project.
- SEO is not as easy as advertised, and like most things, it must be done well. This includes developing content, key words, links, marketing phrases, and pitches, in addition to continued maintenance, measurement, and modification.
It is not cheap – SEO consultants frequently charge $1000-$3000 per month. If you do it yourself, SEO requires significant time spent in branding and writing.- It takes time – SEO consultants generally say it takes 3-6months to even start showing results
- Almost by definition, the big guys win. SEO placement is governed by clicks, and the more you naturally get, the more likely you are to get hits.
- Another concern is the math – It is generally agreed that you need to focus on high placement, as first place in a search accounts for about 60% of clicks (and the first page 90-95% of clicks). Between 2013 and 2018, Google revenues have increased from $55 million to an estimated $140 million, which has two implications. First, paid search must work for many advertisers, because it is growing so fast. Second, paid search is increasingly taking up first page listings (which makes SEO that much more difficult.)
- SEO advocates frequently ignore providing documentation of economics and results in determining when is SEO overrated. In contrast, Google goes out of its way to provide free analysis of clicks, conversions, and pathways to success.
Nevertheless, there are ways to benefit from using SEO:
- The most important way is to have an integrated program, including social media, website development, and other marketing tools (like email, targeting, networking, and paid searches). Facebook, Twitter, LinkedIn, Google Plus, Pinterest, and industry sites should all be considered.
- I frankly believe that networking and targeting can be the most productive techniques, because they engage interested clients. Getting email addresses and posting are key tools to make SEO more effective.
- Focus on getting content and processes right. For example, spelling and inappropriate language can kill a campaign. It is always better to be polite and positive.
- Evaluate your effort and measure your results, and change tools when you see success or failure.
- Always consider how you are reaching your potential client and being interesting to them.
- Don’t be afraid to test and experiment. In particular, if you are using outside resources, be sure to develop clear goals and measures for success.
- SEO can be more effective for local postings, especially for service enterprises like repairs and restaurants.
In short, SEO and social media can produce great results. However, they must be done well, they must be part of a total marketing program.
Dr. Bert Shlensky, president of Startup Connection ( www.startupconection.net ) has an MBA and PhD from the Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business, and President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he now focuses on working with select start-up and small businesses.
by Bert Shlensky | Aug 9, 2018 | Operations
There are two seemingly conflicting trends in organizations regarding technology and innovation. The first is a trend towards autonomy, which focuses on organizational goals, as well as cooperation and empowerment. The second is a trend towards automation, which simplifies work requirements and can result in fewer workers. I argue you can have both autonomy and automation… You simply need to focus on improving the autonomy at all levels as you increase the automation.
The autonomy approach is described by Fred Kofman, who promotes cooperation and voluntary exchange for mutual gain. According to this theory, motivation, culture and collaboration produce better solutions than pure self-interest. In short, organizations should focus on winning for the organization, and not just the individual silos of participants.
Organizations in Silicon Valley often devote their attention to things like automation and AI. However, they are held accountable for the trend that some jobs are being replaced by robots. This includes jobs like taxi drivers (replaced by self-driving cars), hedge fund managers (replaced by algorithms), or financial journalists (replaced by chatbots).
This idea was brought home to me a few weeks ago, during a visit to an 1850’s restoration community Sturbridge Village. They had little cottages doing various tasks to make clothing (like cleaning wool, spinning, weaving and sewing). The work that went into production of a few yards or one shirt was incredible. In contrast, my experience in the apparel industry was that we could weave millions of yards in short periods, thanks to automation.
Similarly, Google and others are developing AI programs to write and develop artistic works. They argue that this technology will greatly enhance an artist’s ability to create, while others argue that it will just replace artists. My own experience in the apparel industry is that automation greatly enhances the artist’s potential by reducing mundane tasks. Instead of it regretting the displacement caused by automation, we need to focus more on realizing its potential for individuals. For example:
- Don’t let automation or analytics give you one simple answer. Programs and situations are diverse, and require a variety of solutions. A great example is the success of the Golden State Warriors and LeBron James in basketball. The Warriors win by an integrated team that gets the ball to the open man, and passes more than any team in history. LeBron’s teams have won by making LeBron the focal point, and supporting with complimentary plays and personnel.
- Similarly, organizations need to consider their goals and processes. Do you need more expertise and experience, or more creativity? Are you maximizing the potential of your stars and developing collaborative solutions? Do you need diverse expertise on a problem?
- Most people I see working care about their jobs and try to do them well, regardless of pay or status. A very simple recommendation is just to consider how can we can empower our staff to do even better. We should acknowledge that there will be mistakes, but they will be far less than the total gains.
- “Need to know” should be a dead phrase, so help staff understand goals and strategies. The more we trust staff to understand these strategies, the more likely they are to embrace them.
- I believe “leadership” is an obsolete term. The best leaders I have seen are people like head nurses, restaurant expediters, triage managers, and legal assistants. They coordinate and manage various (and frequently much higher paid) participants. The process involves gaining their cooperation and motivation to execute a great final result. In contrast, authoritarian (rather than expert or professional leadership) is usually more harmful than helpful.
- Many financial and analytical models focus on a single or best solution. I recommend focusing on the parameters of alternative models. Then you can manipulate the model to evaluate alternatives. For example, we have developed a dynamic operating profit model that allows you to analyze the interaction and impact of various factors like price, cost, margin, distribution marketing etc. It has been effective in helping clients understand retail and online opportunities. Download it here.
In summary, automation and AI offer great opportunities to improve performance, especially when used with analytics. These strategies should also include empowering the organization. In particular, we should continuously challenge assumptions, review alternatives and evaluate progress.
Dr. Bert Shlensky, president of Startup Connection ( www.startupconection.net ) has an MBA And PhD from the Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business and President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he now focuses on working with select startup and small businesses.
by Bert Shlensky | Jun 21, 2018 | Marketing
Some Simple Suggestions to Improve Branding
The potential and strategies of branding are critical today, yet the practices and requirements are dramatically changing. In particular, branding is still dominated by marketing, differentiation, and promotion activities. Right now, technology, customer needs, and operations are becoming vital components of the branding process.
In particular, I argue that many branding experts focus too much effort on packaging, advertising, logos, and copy. At the same time, they often ignore issues like value, service, quality, culture, and our digital environment. If you don’t believe that, just compare the focus of many brands on department stores versus places like Amazon and Costco.
Here are some ways to improve branding:
1. Digital Branding
Brand management frequently does not pay enough attention to the digital world. Branding efforts need to be comprehensive, so it is good to support your efforts with a web site, social media, brochures, etc.
Automation, efficiency, and digital solutions have also allowed us your focus on solutions rather than just meeting customer’s needs. Market the real product your customer wants to buy. For example, the same customer may want the prestige of a designer purse name, and then buy generic labels at the grocery store to save money.
2. Operations
Service, image, and culture are frequently the biggest (and often least expensive) opportunities for small companies to develop a brand and differentiate themselves. Some suggestions:
- Focus on your target market, segment, and your ideal customer.
- Be polite, listen and then act based on what you have learned.
- Become a trusted resource to your prospects by providing information that will help them make a good choice.
- Build an email list and send informative mailings on a regular basis.
- Keep in touch with potential customers and existing customers.
3. Quality
Quality needs to vary by customer and need. Let’s face it: IKEA makes great utilitarian, well-priced, and good-looking furniture for many young people. However, it really isn’t made to last a lifetime. Other products (like pizza) probably have more variance in the perceptions of the consumer than in the actual quality of the ingredients.
4. Convenience
In this day and age, if you’re not offering some sort of ease of use or accessibility, you’re dead in the water. So, try and angle your brand to offer some sort of convenience, such as easy payment, delivery, and contact (24 hour customer service). These are just some options for offering efficiency to your customer in some way.
5. Value
It’s one thing to nab the customer…. But to keep them coming back? That’s the golden ticket. Your product or service can’t be just a one-time thing. It has to be a many-time thing! It’s called customer retention – keep them coming back, and you’ve got guaranteed revenue.
Remember that value can vary, and it often depends on the situation and the perceptions. For example, Nieman Marcus, Costco, and Amazon all offer quite different products, but since they have quite effective value, many customers shop at all three retailers. As an aside, I love the free samples at Costco.
6. Company Culture
In researching this blog, I searched branding on Google. The articles barely mentioned culture (if at all), which I consider to be one of the most important components of branding. Creating and maintaining a positive company culture is a critical component in achieving excellence and establishing a great brand. A great strategy, without a supportive culture, will undoubtedly fail… I’ve seen it happen too many times.
Setting the right expectations, providing support, and accepting responsibility as a leader are all non-negotiable aspects of nurturing the culture in your company. In addition, you must never cease to measure what seems unquantifiable (in order to consider your attempts at creating a successful company culture).
There is no better example of this than the Golden State Warriors, who just won their third NBA title in four years. Much of the attention is given to their super stars, but if you look behind that, you see how the entire organization (including the training staff, coaching staff, medical staff) are all united to create excellence and a unified brand.
In summary, branding and differentiation are two of the key areas required to bring even the greatest new products and services to market. These two strategies are linked and are primarily a function of ensuring that your product or service meets the needs of your consumer.
As one expert said “We all know the adage…. features tell, benefits sell.” If this is true, why do so many entrepreneurs still speak in terms of the features of their product or service and not its benefits? Your prospective customers does not care what your product or service does… they only care about what it does for THEM!
Ready to achieve success by improving your company culture? Contact us today.
Dr. Bert Shlensky, president of Startup Connection (www.startupconection.net) has an MBA and PhD from the Sloan School of Management at M.I.T. He served as the President of WestPoint Pepperell’s apparel fabrics business and President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he now focuses on working with select startup and small businesses.
by Bert Shlensky | Jun 7, 2018 | Operations
It would be pretty cool to be a super-secret agent like James Bond, or Jack Bauer, or Jason Bourne — or ETHAN HUNT! Yeah, that guy from the films “Mission: Impossible” played by the one and only Tom Cruise. What’s funny is that the best business culture out there embodies the secret agent accomplishing amazingly insane feats, hanging by a thread on a plane or scaling a big building. Maybe disabling a bomb with a toothpick? Now I’ve got your attention, but you’re pretty confused: how can your business culture be like that? Easy:
The Trick to Your Business Culture Being Like Espionage Is Competitive Analysis, Namely KNOWING HOW TO PRICE YOUR PRODUCTS EFFECTIVELY!
And it’s no easy feat. Take our word for it. Many small businesses have the tough challenge of trying to price their products at the right amount — not too cheap, not too expensive. They want to be competitive enough…. But not sell themselves short. And honestly more often than not, you’ve got a lot of businesses out there pricing way too low.
The trick is to analyze the competition. Spy on them. Sort of “break in” to their secret facilities and know how they operate. This is especially the case when it comes to the biggest e-commerce giant Amazon as the lead competitor. How it relates to business culture? Your team, your entire business, needs to review everything the competition sells, in and out.
Scout the websites. Look at what Amazon is doing. What they’re selling. How they’re selling it. How much are they selling their stuff for. See if you can dynamically offer something better, something more unique. Match the price, look at your overhead. It allows you to be more competitive when you’re willing to spy on the competition, and believe me: it’s a lot easier to do that!
No lasers to do cartwheels over. No masking the traps or finding the loopholes. Back in the day it was hard trying to analyze the competition given the brick-and-mortar, but nowadays with websites just a click away, it’s pretty easy slipping into Amazon and getting the inside scoop.
So Make Sure Your Business Culture Is Doing Exactly That: They Need to Be Go-Getters, Predictors, Forecasters, Finders…. TRENDSETTERS. SECRET AGENTS.
Now we won’t say you could ever take Amazon down completely…. But you’ll definitely carve your niche and let the big boys know that you own it. And no on else will. Want to know more?
Dr. Bert Shlensky, President of The Startup Connection, directs all small business clients toward maximum sales and profit thanks to his 40 years of high-quality experience. He does this through technological, social, and online integration, supercharging your business success into the next level, so don’t hesitate to sign up for a free consultation RIGHT NOW.
by Bert Shlensky | May 24, 2018 | Marketing
Many marketing guides start with developing strategy – understanding your focus and defining your brand. I argue that execution and excellence are more important than developing vague brand and marketing strategies. As Walt Disney said:
“Do what you do so well that they will want to see it again and bring their friends.”
While this quote may seem obvious, it has a number of implications that are frequently ignored. For example, when I talk to marketers, they frequently discuss the latest hot trend – targeting, SEO, social media, videos, paid search, etc. However, how we execute these strategies for our situation may be more important than the specific program. In addition, many marketers downplay measuring the results of marketing efforts. Now, digital marketing allows you to develop, test, measure and adapt. You can now test various programs and strategies before making expensive commitments. Paid search is an example where key words, offers, and links, are frequently the keys to success. Thus, testing various alternatives can dramatically help focus a program. However, many advocates will recommend spending thousands of dollars a month with little clue of what will work. Similarly, many marketing programs get enamored with technology while ignoring basic execution concepts. For example, I recently read some exciting marketing plans from a client that included videos, links, and many other details. However, they were so focused on technology that they forgot simple things like phone numbers, e-mail addresses, and how they would help their customers.
Here are some tips related to execution in your marketing programs:
- Goals – What are your long-term volume and image expectations? Are you building sales just for today, or are you seeking long term customers? What are your organizational and financial resources? Who is your target market? What is your competitive positioning? The answers to these questions can change during the marketing strategy process, and they will affect your program as you begin to execute in the real world.
- The Internet – It’s fast, centralized, and cost-effective. Traditional print media and many retailers are dying compared to Internet retailers like Amazon (who represent between 35-45% of internet consumer sales, and are growing at about 20% per year.)
- Pricing, Stock, Forecasting, and Value – Now with the ability to reach customers in remarkable ways, you must consider all of these as part of your plan.
- Product Expectations and Customer Service – You’re a brand. People expect a certain kind of quality based on your target demographic, so keep that aligned with your goals.
- Develop, Test, Measure, Adapt – This is the scientific method for a Lean Startup Strategy, and thanks to the Internet you can do all of this really quickly. One of the key recommendations of Eric Ries in The Lean Startup is to “test, measure, and pivot until you get it right.”
- Customer Retention – Satisfied customers are the best, most cost-effective way to grow a business.
- Traditional Advertising – While firms generally are spending less money on traditional media, it can still be an important component of good marketing (especially if your products and services lend themselves to such media).
- Distribution – How are you selling your products or services? Trends in distribution are changing rapidly, and your process needs to be in sync with the times. For example, automation and customer service are replacing the direct salesperson. Money can be saved by eliminating traditional channels and substituting direct shipping and the Internet
- Integration – The key to an excellent marketing plan is to employ all of the tools you consider relevant and affordable, and to develop a targeted plan with clear action steps and benchmarks. First and foremost, the plan must fit your goals and your budget. It is then critical to measure the results and adjust to maximize your goals and profit.
- Risk and Openness – I encourage you to consider more risk in our changing environment, and I also suggest changing the business culture to encourage more risk-taking. I often say, “If you aren’t making mistakes, you aren’t trying hard enough.” Mistakes mean you and your business are growing. Consistently exploring alternatives and evaluating your decisions will help you figure out what’s working.
- Measurement – A number of general guidelines should be followed when making goals and measuring them. First, make goal-setting a process and communicate these goals to those involved. Second, be certain to understand the different needs in different situations. Third, be sure to use clear and simple measurement tools. Fourth, be sure to use the process for improvement (rather than simply as a tool for criticism). Focus on the mediums that work the most; not based on trends, but on what has the best outcomes.
Dr. Bert Shlensky has an MBA and PhD from the Sloan School of Management at MIT. He is the President of the New York-based consulting firm The Startup Connection, where he uses his 30 years of high-level business experience to guide his clients towards maximum sales and profit. For a free consultation, please visit www.startupconnection.net.
