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 | May 17, 2018 | Marketing
The original concept in 1908 by Pareto was that 20% of the population controlled 80% of the wealth. In the modern business realm, it has been proven time and time again that 80% of business revenues are generated by just 20% of our customers. Yet we all continue to waste time, money, and inventory dollars on customers that bring in a lower return. This tendency also frequently adds confusion and complexity. At StartupConnection, we help our clients prioritize.
While much of following the 80/20 rule is focused on analytics, the most important (and sometimes simplest) way to keep existing customers happy and is to exceed expectations. As Walt Disney said, “Do what you do so well that they will want to see it again and bring their friends.” Satisfied customers, repeat customers, positive social media, and referrals are the best and least expensive marketing a business can have. There is no substitute for a satisfied customer. In contrast, dissatisfied customers, poor service, and negative referrals can offset even the best marketing efforts.
Some specific examples of using the 80/20 rule with my own clients:
- We helped a number of businesses create sharing sites for parties, home services, programming etc. While the concept is relatively simple, the cost of finding suppliers and developing marketing programs can be both expensive. I have been successful in encouraging these businesses to focus on the services that have the most potential.
- We helped a textile company prioritize its product offerings; at first they were focused on being all things to all people. We worked on developing groups of products, increasing design and marketing efforts, and eliminating over 40 % of the products (which represented less than 10 % of sales.) The result was greatly improved efficiency, but more importantly, the ability to add products by more integrated merchandising.
- Prioritizing and following the 80-20 rule can be easily improved by just taking care of your best customers. For example, why do new customers sometimes get better discounts than the best old customers? I encourage clients to treat the best old customers really well, in addition to seeking out new customers.
Here are some tips to consider when executing the 80/20 rule:
- Reduce inventory. By following the 80/20 rule, you’re choosing to operate using less inventory. You must first admit that certain products (even if you truly believe in them), simply are not selling. This leaves more room for carrying the products that do sell.
- You should spend your resources on what you know will provide a return on your investment. Reducing products that may or may not be a good fit for your customers can save you money. Also, think of all the headaches, space and time you’ll save by not having to market obsolete inventory.
- The 80/20 should not preclude development and testing of new products. However, this usually requires more analysis of the program, evaluation of results, and withdrawal if success is not apparent.
- Simplify products and services. Your customers will also appreciate this. Think about the last time you went to the store to buy one simple thing, and you saw enough options to fill a late 1980s Sears catalog up. It made it difficult to choose the right product, didn’t it?
- By focusing on the products that you know your customers want, you’re making them feel much more confident (especially when you’re selling online.) Instead of finding new ways to market products that simply aren’t selling, you may be better off to shift over to what is selling. If you give people what they’re searching for, they’ll buy. If you don’t, they won’t. It’s that simple.
- Have you run an unsuccessful AdWords campaign lately? It may be the actual product or service that you’re marketing and not the ad. If you’ve followed every best practice and your product isn’t selling, maybe you have to blame the product, and not the ad.
- I know you hate developing complex forecasting models and spending lots of administrative time on the logistics of obsolete products, but you’ll get over it. Who knows? You might even find some more leisure time.
- Suppliers also like the 80/20 rule, and they may reduce prices or increase service if their orders are more concentrated. Everyone in the supply chain, right on down to the customer, is much happier as a result.
This brings me to my next point… what is the MOST important reason the 80/20 rule works? Happy Customers! Want to start rocking your business by following 80/20? Contact me and I’ll get you started!
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 | May 11, 2018 | Marketing
OVERVIEW
At Startup Connection, we believe that the skill of communicating passion for your business — in the form of a refined “elevator speech” or mission statement — is a pure necessity to your success.
Mark Twain is often credited with saying, “I would have written a shorter story, but I didn’t have the time.” These days, we refer to a very short synopsis of your business as an “elevator speech,” and in this article, we’ll call it “the sales pitch.” A sales pitch is a concise, carefully planned, and well-practiced description of your company that anyone should be able to understand in 60 seconds or less. Learning how to give a great sales pitch is a valuable way to share your message. It is also a great way to truly refine the essence of your company’s vision and plan. On one hand, starting the sales pitch is not easy, and it requires some effort and practice. On the other hand, the process should be made as simple as possible.
One of the best strategies we suggest is to start with taking less than one hour to write a first version. Focus on your idea, passion and emotion in this draft. Don’t worry about content, format, or style… we can help you fix all that later.
The sales pitch is as essential as your business card, and you have about one paragraph to get the attention of your audience. You need to clearly and rapidly be able to communicate who you are, what you do, and how you can help your listeners.
Before you can convince anyone of your business proposition, YOU need to know exactly what that business proposition is! You need to define precisely what you are offering, what problems you can solve, and what benefits you bring to prospective customers or clients.
Specifically, the sales pitch answers some of the following questions:
- Who are you and who is your company? For example, “My name is Jim Cando and my company are Cando Widgets.”
- What are your key products or services, and what are their strengths? “We make awesome widgets that are guaranteed to make you healthier, richer, and happier. Our widgets are made with 100% healthy ingredients, cost less, and are easy to use.”
- What adjectives come to mind to describe your company? Avoid common words like better, bigger, and well made. Instead, think of emotional terms like indestructible, exciting, or scrumptious.
- Who is your target market? Be specific in terms of age, lifestyle, location, and income. “We target millennial men who work out and are looking for a shirt that fits”.
- What problem do you help customers solve? Talk about benefits instead of just descriptions. Examples of benefit statements include: “We help you save time and money,” “We make what is usually a horrible experience into something satisfying and exciting,” or “We understand our customers, and ensure that they have the best product selection.”
- What is your business model and strategy? For example, “We are a home service company. Our goal is to develop a base business of 500 customers and $1 million in revenues, and then to grow 10 to 20% per year. We plan to spend 15 to 20% of our sales on internet marketing, materials demonstrations, and exceptional customer service. Our profitability is derived from our low overhead, competitive margins, and growing brand.”
- Who is your competition and how are you better? For example, “Our competition is anyone who sells widgets. We offer the right product at the right price, with great customer service and product selection. We save customers money by helping them purchase the most effective product (rather than the cheapest or one with the most bells and whistles) based on what they need.”
Your challenge is to deliver a great pitch that will make someone want to know a whole lot more about your business.
WORKSHEET
Basic Elements of a Good Elevator Speech
Once you have developed a good sales pitch, you will be amazed at how handy it is, and how often you use it in a variety of settings. To be sure your pitch is top-notch, here is a checklist of important elements to consider:
- A “Hook”: Start with a hook, a statement or question that piques interest and makes the listener want to hear more. A hook can be a surprising or amazing fact. For example, if you were marketing a product geared towards entrepreneurs, you might start with “More than one out of every two Americans works for or owns a small business.”
- Length: Your pitch should be less than 60 seconds. If your sales pitch runs on for too long, you risk losing the interest of your listener. Get to the point you are trying to make, and explain why it will benefit your target audience.
- Passion: Listeners will expect energy and dedication in your speech. If you aren’t excited about your idea, why should the listener be? Why is this idea exciting, and how will it benefit your target audience? This must be conveyed in your sales pitch.
- A Request: At the end of your pitch, you must ask for something. Are you looking for capital? Strategic partners? New markets? Use the fact that you are with the customer to your advantage – ask them to take advantage of this opportunity and close the deal on the spot. Always establish a follow up question, in case your target is unable to commit outright.
- Practice: Be sure to spend time developing, practicing and testing your pitch. Create short videos of your pitch and critically review your presentation. It is imperative that you convey confidence in your product, and how it will benefit the customer.
Think about your ideas and call me for some free mentoring. I know it is not easy, but the more you work on defining your business, the more comfortable you will become. Call today at: (914) 632-6977.
Dr. Bert Shlensky, president of Startup Connection ( www.startupconection.net ) has an MBA and PhD from the Sloan School of Management at MIT. He served as the president of West Point Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he focuses on working with select start-up companies and small businesses. Call today for a free consultation, so we can use our business plan templates to take your business to the next level.
