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.
by Bert Shlensky | Jan 30, 2018 | Marketing
When someone asks you who your customers are, how do you answer? Do you answer based on your perception of them and who’s already purchasing your products or based on actual information? Chances are, you haven’t delved into your demographics as much as you need to.
What Are Demographics?
Demographics are, by definition, the study of a population based on factors such as age, race, sex, economic status, level of education, income level, and employment. It should always be the first step in estimating your potential, limitations, and focus. They are among the most critical and relatively easy factors to consider in your marketing, planning, and strategic decision making.
Uncovering key demographics can be a bit like taking a look in your professional closet. You probably have an impeccable wardrobe, but it’s tough to see all that potential when there’s a giant elephant standing in your way. It’s time to deal with the elephant.
Where to Start
I regularly see business plans that begin with defining their market as the 320 million people who live in the United States and eat, dress, or consume something. No matter what industry you’re in, that is the wrong place to start. You have to dive deeper from the very beginning.
Even if you’re not at the very beginning stages of building your business, you should be studying demographics often and delve deeply into the information at hand. It’s crucial to the success of your marketing efforts.
Here are some staggering statistics that will make you question the audience you’re marketing to, according to the US Census Report. Out of that 320 million people who live in the United States:
- Between 2015 and 2025, the U.S population is projected to grow from 321 million to 347 million.
- 18 million or about 70% of the growth will be over 65 years old between 2015 and 2025
- As a comparison, between 1970 and 1980 the 15-35 population grew 19 million showing the start of the baby boomers as the bubble in the population.
- In contrast the under 65 population will only grow about 8 million people or less than 3%.
- Similarly, the Hispanic population has grown from 3% to 10% of the population.
- Since 1980 States like Florida, Texas and California are dramatically growing while rust belt cities like Cleveland and Detroit are rapidly losing population.
- 50% are one gender, which frequently reduces the market size
- 30-50% of are frequently too poor to buy many products or services.
- Approximately 40% of the U.S. population is between the prime purchasing ages of 25-54.
What’s the point here? The beginning number you should be starting with is actually more like 30-40 million people versus 320 million people before you analyze factors like geography, lifestyles, and ethnicity. This increased diversity demands that you differentiate the totals from your market.
You can start to gather valuable demographic information about your market for free. There is a great tool available from the U.S. Census Bureau that lets you quickly understand the demographics in your locality. It doesn’t take long to gather information and you may be surprised by what you discover.
Understand Your Audience
Studying demographics is an ongoing process. Once you’re at the base line of understanding your potential customers, you must have your ear to the ground and start to identify trends.
For example, If you live on places like Orlando or hurricane regions, this can have a profound effect on your business. It is estimated over 100,000 people moved from Puerto Rico in the last few months. You will not see that number reflected in U.S. Census data.
You can’t just look at the numbers. You have to understand the people that the numbers represent and try to look at the factors that they deal with that you may not dealing with.
Here are some key things to consider when you’re studying demographics for marketing purposes:
- Income: The reality is that the top 1% of the population accounts for about 80% of income and continues to increase while the lower 20-40% continues to struggle. Marketing to struggling service workers requires far different strategies than marketing to Silicon Valley millennials.
- Social Changes: Women and minorities have not always been treated with dignity as consumers. My wife still remembers going to buy a car and being ignored by dealers and being called “honey.” Today, women and minorities comprise a significant portion of both car buyers and dealership employees. This demands respect.
- The Internet of Things: The internet and its usage especially among younger people will continue to explode. Nearly every consumer-based market is dominated by businesses that are capitalizing on the internet of things like Amazon and Google. Recently, UPS increased its Christmas delivery time from 1-2 days because it could not handle the increased demand, which was highly predictable. Similarly, services like Uber, Air B&B, Amazon, and thousands of other businesses are disrupting their individual markets.
- Analytics: Chances are that your competitors are already taking advantage of a myriad of advanced analytical tools. CRM systems are completely changing the game and giving businesses new opportunities to understand their customer base.
Ignoring demographics and demographic trends, whether on a small scale or large scale will be done at a business’ peril. You must make certain to constantly evaluate relevant demographics and demographic trends as they relate to your business both in the now and in the future. This includes both local and national trends. Demographics can be one of the keys to your business’ success or failure.
Contact me to learn more about how you can research demographics in order to help you market your business more effectively and remove that old elephant from your closet.
Dr. Bert Shlensky, president of Startup Connection (www.startupconection.net) is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint 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 and small businesses.
by Bert Shlensky | Nov 3, 2017 | Marketing
How do you get your message across to the right target with all the different forms of communication at work today?
There are hundreds of emails, hours of television, podcasts, streaming video, texting, messaging… there is no end to it.
The result is that we all shut out the communication we don’t want to hear. So, the small business has to give its communications a powerful boost in order to break through the clutter noise. On the other hand, effective communications make sales, so you can’t keep quiet.
Here’s how to get your message across :
- Know your target: Before you think about what you’re going to say, think about to whom you are going to say it. Good communication starts at the receiving end, that is, you please the consumer just as you do with your products. Think about the what it is in your product or service that most interests your customers, and make that the main topic of your communication. That way, they’ll listen.
- Tell a short but meaningful story: You have a real message to get across, so tell the story as simply and clearly as possible, putting in only the parts that the target will care about. Don’t add a lot of extraneous detail, and don’t put in a lot of info about your history or your life. Keep it simple and relevant to the reader.
- 90% of most impressions are made in the first 30 seconds of contact: Find a simple idea that you know will appeal to your customers and get them started with it. The first impression is not based on the substance of the communication. One way to make sure you get the starting part right is to write your story, then cut it in half, then cut it in half again. Now take the main idea, and start with that. And don’t make your first communication too long…
- Don’t try too hard to sell: Your customer will evaluate your message on its merits. Sure, if you are offering discounts or freemium than let them know right away. But, give them the full sense of what makes your product great. If you just say “Buy, buy, buy,” you’ll lose their attention.
- Give them solutions, not problems: Your customer knows what the problems are. Show how you can solve them. Give them a “WIN-WIN,” with an emphasis on the benefits of a relationship. Be sure to respect your targets’ expertise, experience, and opinions, and then show them that your message is right up their alley.
- Give them a call to action: As part of what you offer, give them a chance to learn more, or to watch a video, or to get more details. Always end your communication with a call to action. This means the communication can move up to another level without asking for money from your targets. If they’re interested, they will take the opportunity, and that will give you a chance for a real sales pitch.
- Move to informal communication: After telling your basic story, offer a move to texting, messaging, or a call. Many viewers, especially younger ones, prefer interactive texting or messaging to reading or watching videos. The plus is, once you’ve got your prospect listening and replying, you can zero in on what they really want and try to sell them on your offer.
- On a personal note: if you are over thirty, call your mother. She probably prefers the telephone. If you have teenage kids, take a look at their cellphones; not to spy, but to learn all the great internet advances they are using. Different generations prefer different types of communication – if you are targeting seniors, plan on making old-fashioned calls, but for Millennials, plan on getting on twitter or Facebook or Instagram, etc.
These tips give you a sense of how to manage effective communications and get your message across . Give it a try, and see how much more response you get when you follow my advice. Then, if you want to learn more about effective communication, please contact me here.
Dr. Bert Shlensky, president of StartupConnection.net, is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint 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 and small businesses.
by Bert Shlensky | Aug 2, 2017 | Operations
We think there are a lot of stigmas out there when doing business. Better yet: stereotypes. And some are more prevalent than others. That, however, doesn’t mean you should neglect those ‘others’ for the ones that seem to make more sense: like the business logo, or product development, or how you market and brand your business. Believe it or not, but if you want that business of yours to be successful, make sure you’ve checked this off your list — packaging and distribution!
You Won’t Believe How Important It Is to Ensure You’ve Got That Process in Place When Doing Business
How are you ‘packaging’ your product and service? Are you? If not, you’re missing out on a very valuable piece of the marketing pie. After all, where the heck is the logo going to go? On the package.
Delivery is even more important as you study and research your industry. Logistics is a no-brainer. You have a physical product, you have to get that product in their hands, or else it really doesn’t matter how cool your product is. If the customer can’t get to it, you don’t make money.
But delivery isn’t necessarily about physical transportation. You could have a product or service that’s 24/7, on-call service, or an online product of some kind. Think of the newer-age business brands out there like Uber, Amazon, Airbnb, and Zappos — distribution has become something way more complex and effective than just simple packaging and trucking.
Perhaps you sell digital marketing services, and your work is done via account management. Lay out your delivery processes and make sure your prospective customers know what to expect — and when you’ve got that out of the way, make sure it gets done every time.
After All, Your Customers Can’t Buy and Keep Buying If They Don’t Get Your Stuff Somehow
Be it brick-and-mortar, online e-commerce, or just a delivery service — whatever it may be, get it situated. Make sure the operations are in order. Because you don’t want to launch without having all of those details etched in stone, ensuring customers know what’s coming. In many ways, this is the final gift to great service — they finally get it, use it, love it, and then, of course — they come back for more of it.
That’s business success.
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.
