Friday, December 19, 2014

Small Business Marketing Research

If you've got questions, Marketing Research is your key to getting the answers you need to run your business and focus your marketing. Marketing Research is not a cookie-cutter approach and is so flexible, in fact, that small businesses with limited budgets can certainly get the information and insight they need at very affordable costs. Many years ago I was handed a tremendous project my first day on a new job in the credit card marketing department of a bank. My task was to try to help stem the tide of cardholders canceling their accounts. This was in the late 1980's when credit was abundant and many folks had 10+ credit cards in their wallets. We were losing ground to our competitors. So, in a nutshell we hired an outside marketing research firm to help us.

First, we mailed a sampling of 100,000 cardholders from our database. Those that didn't return the survey were called. In all, we anticipated a 2% response rate and were shocked when we got almost 10%.

The marketing research firm helped us do all sorts of statistical analysis and in the end what we found out was that cardholders wanted more control over their own accounts. This information led me and my team to develop a 'build your own' concept whereby we allowed cardholders to select from a list of terms, annual fees, due dates, and the like. We then created a 'credit card took kit' complete with graphics resembling tools. We went back to those same 100,000 with this new offer and they ate it up. It was a huge success. That then became our control offer that we used in acquisition for quite a while.

It seems people like to tell you what they think and what they want, and so small business owners should ask.

You don't need an outside research firm to conduct your own research. There are so many options both on and offline now, that this once burdensome and very expensive task is simpler than ever for small business owners to do themselves.

Here's how:

First, let's begin with an overview. There are two basic types of research: secondary and primary.

Secondary research is research that already exists. A good example of this is the US Census. While this isn't custom to your situation it can be a good place to begin. For example, you wouldn't want to open a retail store in a town whose population is declining 10% per year. Strategic industry research can also be very helpful to you. Many associations conduct research on behalf of their members. For example, many years ago in a new product development role I was tasked with creating new products that would best our competitors. At the time, pet clubs were very popular and so I found a published survey (that cost $700) that was tremendously helpful to me in creating a relevant product that pet owners would prefer over our competition's. It was another great success and was profitable over forecast (which is always good!)

Primary research is research that is created by/for you and is custom to your needs. For example, if you began with Census information and found that your city has had 15% growth in small businesses, you may be encouraged to finally open your consulting firm. If however, you specialize in family-owned businesses and succession plans, you would need to know of that growth, how many were family-owned. Most likely, the only way you could get this information would be to design your own research and begin asking around.

The next difference within these two basic types of marketing research is quantitative vs. qualitative. Quantitative research is numbers-based. For example, how many people purchase a certain product. Qualitative research focuses on the back story and will tell you why. Qualitative research tends to be more issues-based to explore consumer behavior in depth. Focus groups are a good example of qualitative research.

Choosing the method will depend on what it is you're trying to achieve. Without a clear goal, your research is worthless. So, keep the following in mind:

1. What do you want to know? Be specific and be clear so that you can create questions that will yield useful answers. For example, if you get price resistance and lose business to your competitors, you may want to know specifically if your pricing is too high.

2. What kind of question should you use? Closed ended questions look like this:

Where do you usually purchase your groceries?
___ Supermarket
___ Specialty store
___ Farmer's market
___ Online

Open ended questions look like this:

What is your favorite supermarket? _____________________

Be aware that tallying open-ended questions is more difficult but can yield better answers because that you may not have even thought of yourself.

3. Don't force people over the edge. I personally don't like it when I'm asked to fill out a survey that doesn't have a midpoint. By this I mean there are usually only positive or negative options. A good survey question has a neutral point, usually a 5-point scale that runs from Strongly Agree, Agree, Neither Agree or Disagree, Disagree, Strongly Disagree. If the "neither" option wasn't there you are forcing an answer that may not be accurate and losing the ability to get higher quality information that you can use.

Ways that you can put primary Marketing Research to work for your business include:

1. Feedback Forms - These are so flexible and can be used both on and offline. For example when you have finished a project, you can either send a thank you letter with a short survey, or if you have their email, can do this online. You'd be surprised at the information you can gather. The key here is to do it quickly while the experience is still fresh in the consumer's mind. Feedback forms can help you gather suggestions as well as get information about how your company performed for them.

2. Telephone Research - I don't advocate blind polling to a list of phone numbers (vis-a-vis political polling), but you can do this by calling former clients, current leads and asking them what you need to know. Be sure that you keep it short and tell them up front that their answers will be kept confidential. Always ask if this a good time to talk, and if not, ask when you can call back.

3. Mystery Shoppers - Many years ago I ran a shopper program for one of the largest banks in NYC. I had a few dozen hired 'customers' that were given money to open accounts and test the tellers. Then over time they were given scripts and asked to do various things such as close an account, request a service we didn't have, act in a certain way, etc. Each week they turned in a report so that we could gauge the effectiveness of teller training. It was very, very helpful. And, lest you think this was all negative and we were looking to fire employees, we often did something wonderful for a branch employee who went above and beyond.

4. General Surveys - Used for everything from customer service measurement to product satisfaction. A survey like this could be used to ask employees their opinion, members of an organization can be encouraged to give feedback, banks use these to rate their services - the list is endless.

5. In-store Service - It seems wherever I purchase something lately the cashier uses a highlighter and eagerly circles the "Take our Survey" portion on the receipt and then explains that the consumer can win a prize for their input. This is also done in restaurants frequently too.

6. Launch of a new Product or Service - Before you invest in the creation and launch of a new product or service, it may behoove you to ask your target audience for initial feedback of the idea. Those of you old enough to remember this, think "New Coke" and you'll get the idea.

Some good sources you can use:

-www.mra-net.org - Marketing Research Association's website
-US Census Bureau
-Bureau of Labor Statistics
-American Marketing Association - Demographic Statistics
-Internet Public Library
-Forrester Research
-Constant Contact.com - just added this new service
-SurveyMonkey.com
-Zoomerang.com
-Netreflector.com

To increase your chances of success, consider offering a small token of appreciation to get more feedback. No matter how you choose to go about your marketing research be sure to say "thanks" to those who took the time to participate and do your best to loop back to them so they know their feedback was received and appreciated. So, if you've got questions you now know how to easily get answers.

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Copyright 2014 Affordable Marketing Solutions LLC

Saturday, December 6, 2014

Small Businesses: Tangibility Pays Off

Yes, we live in a digital world, however, the world of print is very much alive & doing well.

Let's start by looking at some very compelling reasons why small business owners should consider the tangibility success factor of printed materials as part of their marketing mix:

1. Think of how many business emails you receive during an average business day. If you're like me, probably at least 100 -- or more. But when I receive a postcard in the mail it immediately captures my attention.

2. A US Postal Service survey showed that for every marketing dollar spent on direct mail, small business owners could expect to earn almost $12 in revenue.

3. Author and Huffington Post editorial writer, Sarah O'Leary says that "to reach consumers in the Internet age, sometimes you have to lick a few stamps."

4. Another study proved that more than 75% of Internet users say direct mail influenced them to purchase something online.

5. The workforce is in such flux now that people are not in their jobs as long. Therefore, emailing to someone who is your contact or decision maker may bounce back. However, if you also mailed into the company that person's mail is always routed to someone - making sure your message is delivered.

6. Take-ones, brochures, sell sheets, flyers, press kits & other handouts used in stores, at trade shows, & at networking meetings are the tangibles that make sure people remember you & call.

7. Retail stores get a competitive advantage when there's a banner hanging out in front announcing a special.

8. FedEx Office just conducted a study of small business owners that examined marketing and advertising tools used to promote their businesses: 87% said that printed materials are very effective at driving customers to their business - even if their business was an online one!

9. Catalogs are making a comeback too. Many years ago companies would mail a several hundred page catalog twice a year. Now, online retailers are successfully using pared down catalogs of select targeted merchandise to mail to niche segments within their database.

10. A recent Direct Marketing Association report found that the average cost of acquiring a new customer is more than 2x as expensive using paid search than direct mail.

11. Another finding: retention rates of customers acquired through direct mail are higher than those acquired online.

12. Can't seem to get that decision maker on the phone? Want to touch base with someone you haven't spoken to in a while? Try a custom created greeting card - it works every time!

As you can see, ink on paper messages help break through the digital clutter. Here are some basic Do's & Don'ts of integrating printed messages with your other marketing channels:

DO -

• keep both an email & a snail mail address in both your customer & prospect databases
• follow up bounced emails with a letter or postcard - you can even ask for another email address if the person's company email server blocks marketing messages
• offer White Papers & eBooks from your website & other online marketing channels

DON'T -

• prospect via purchased email lists - is simply too expensive & too risky; use print for prospecting
• rely solely on just one method - combining them will produce better results
• make just one attempt at acquisition - studies show that it takes approximately 3-5 touches for a consumer to make a purchase decision & 9-10 touches for a business to make a buying decision

Often I hear "the minimums are too high," or "it's so expensive." Consider digital printing for these smaller run print needs. Many years ago, the only choice was conventional, offset printing where, yes, the minimums were at least 5000 pieces or more. Now, however, you do have a choice: digital printing.

The following are just some of the benefits of digital printing, including:

• no minimums
• lower pricing
• eco-friendly as there is no quantity waste nor are there any harsh chemicals or solvents used
• conducive to smaller, targeted offers & audiences
• get color for the same price as black & white

Once you've decided to print your marketing message, here are some important things to consider:

Phase I - Design

-If this is your first time going to print with a piece, it is strongly recommended that you speak with a printer before having your piece designed.
-This includes considering size, colors, design software (printers CANNOT use Word docs to print brochures!), type of paper stock for final product & use of the piece to be sure it meets your needs. I once saw a restaurant giving out coated business cards for customers to provide their email addresses on the back of the card. It is utterly impossible to write in ink on coated stock as it smudges!! I suppose that's why I never received any of their emails.

Phase II - Specifications

-Now that you have the design finalized, it's time to get to the nitty gritty details. Here you need to determine deadlines, quantity, & method of delivery (Will it be shipped? Picked up?)
-Ask your printer for a final estimate in writing so there are no surprises. One important item to be addressed is any additional charge for changes to the piece after reviewing the proof. It is not uncommon to realize "Oh, wouldn't it be nice to add...." once you see the piece.
-One note of caution: if this is a mail piece, it is very much in your favor to consult the Post Office to be sure your piece is the right size & conforms to their mailing regulations. For example, if it's a self-mailer brochure, it must be sealed with a mailing wafer; or if it is a postcard there must a blank area for the Post Office to imprint their barcodes.

Phase III - Proofing

-Always request a proof before giving the 'go ahead' to print the entire job. Digital printing allows for a digital proof which can be emailed to you for your approval. I strongly suggest that you print out the proof so that you can actually hold the piece in your hands & use it as if you were the receiver. I have encountered many instances where this did not happen & the piece came out wrong. For example, in the case of a brochure, print it out & staple it back to back, then fold it into the 'real' piece. Only in this way can you be sure to proof it completely & thoroughly.
-There are no dumb questions at the proofing stage. Better to ask than to have regrets once the piece is finished.
-Remember that printers are not responsible for proofreading. So be sure to thoroughly read all text, phone numbers, URLs, addresses, etc. If the final piece is delivered with an error, unfortunately there is no recourse once you have signed off on the proof.
-A further guarantee to be sure your piece meets your expectations is to be onsite during the printing so that you can see the final product. Ask your printer if this can be scheduled.

Phase IV - Delivery

-Not to be overlooked is delivery. Of course, if your printer is local you can pick it up. Some printers offer FREE local pick up & delivery as well. However, sometimes the final product must be shipped. If so, be sure to ask how it will be packed & if you have your own shipping account, provide your account number so the shipping charge isn't marked up.

So, go ahead & print - it's good for your business & for the environment.

Remember...get started marketing TODAY so that TOMORROW your business will still exist.

Copyright 2014 Affordable Marketing $olutions LLC

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