You're In The MARKETING Business...

Whatever you sell...product or service...B2B or B2C...whether you're in manufacturing, or retail, or distributing, or reselling....you're in the marketing business.

Marketing is the engine on which your business runs. Without a good marketing plan that will consistently deliver customers to you and keep them coming back, your business is worthless. You need customers to make your business worth something.

When you switch your thinking to realize you're really in the marketing business, that's when breakthroughs can happen.

That's when your entire organization becomes focused around obtaining and keeping customers. That's when you realize that good customer service is good marketing and great customer service is great marketing.

It's when you realize that every customer interaction, even delivering an invoice, is a marketing opportunity. (See Seth's post on this.)

It's when you realize that industry conventions ("that's the way things are done in this industry") are made to be broken, as long as it serves the customer.

It's when you realize that you need solid marketing systems in place to increase the number of inquiries, optimize your conversion rate, and maximize your total customer value.

It's when you realize that you need to do an excellent job of communicating all the benefits of doing business with you to prospective customers.

Dan Kennedy defines marketing like this: "Delivering the right message to the right people in the right way, using the right media." I would add "such that you obtain and keep them as a customer or client for the longest possible duration of time." (And I know Dan Kennedy would agree with that!)

Makes you look at your business a little differently, doesn't it?

The 12-Letter Word That Guarantees Success

After my post yesterday, Doug D'Anna, legendary direct response copywriter, posted this over at Clayton Makepeace's Total Package.

He writes specifically about keeping the relationship in mind when writing copy for your marketing materials...but the relationship is central to your business success. If you always keep in mind that your business is about relationships...and that your most valuable asset is your relationship with all your customers and prospects (or distributors or joint venture partners)...and that philosophy permeates every aspect of your business...then you, too, can have a success like Zappos.com.

"The 12-Letter Word That Guarantees Success," "Your Most Valuable Business Asset"...whatever you call it, it all comes down to RELATIONSHIP.

Your Most Important and Valuable Business Asset

It's ironic that your most valuable asset as a business owner is not even reflected on your balance sheet. That should give you a clue as to what it isn't...

It's not your building, or your capital equipment, for example. It's not your liquid assets...it's not even your "brand."

So what is it?

Many marketers would say your most valuable asset is your customer list. But that's not entirely accurate...

It's your RELATIONSHIP with all the customers or clients in your list. That's where the real value is. It's where the future value is for your company. It's your livelihood.

You could have millions of dollars worth of hard assets, but without relationships with people who will buy what you're selling, they're pretty much worthless to you.

So what does that tell you about how you should treat your customers? Smart companies will not only come to the conclusion that good customer service is good marketing (like Zappos.com), but will understand the importance of maintaining the relationship through frequent and relevant contact.

After all...don't you have to communicate to have a relationship?

With that in mind, think of all the customers you haven't heard from in a while. Maybe it's time to send them a letter or make a phone call. Don't let that relationship just wither and die!

(BTW, the image is an ancient Mesopotamian balance sheet from a state-run farm on display at the Louvre. It's almost 4,000 years old.)

How To Grow Without Advertising: A Case Study

I've never ordered anything from Zappos.com, but I keep hearing about what a great company it is. They don't do any advertising...but let's look at their growth pattern:

• 1999: Startup...almost zero sales
• 2000: $1.6 Million in sales
• 2001: $8.6 Million (800% growth in one year!)
• 2002: $32 Million (400% growth from previous year!)
• 2003: $70 Million (200% growth)
• 2004: $184 Million (250%)
• 2005: $370 Million (200%)
• 2006: $597 Million (160%)
• 2007: $800 Million (135%)

Phenomenal. Absolutely phenomenal. All without advertising.

How did they do it?

Obviously, there are many factors contributing to this kind of spectacular success. But one reason is they understand the three ways to grow a business...

1. Get more customers
2. Increase the average transaction value.
3. Increase the frequency of purchase.

Step 1: Get More Customers

Zappos depends almost entirely on word of mouth / viral / referral marketing. All pretty much the same thing, but your company needs to be worthy of being referred to someone else. And that's where Zappos excels. Their slogan is "We're a service company that happens to sell."

Take a look at this customer testimonial.

They realize they're not in the commodity shoe business, but in the business of servicing customers. They have a well-articulated unique selling proposition. See Why Shop at Zappos.com.

Step 2: Increase the average transaction value.

Zappos doesn't have the lowest prices because they don't compete on price. They compete on service. And NO ONE does better.

I haven't purchased from them, but if they're smart (and they must be) they'll offer cross-sells and up-sells at the close of the transaction.

Step 3: Increase the frequency of purchase.

I know the CEO, Tony Hsieh, understands this because of a quote in Direct Magazine. Here's what he says...

"Our business is based on repeat customers and word of mouth..."

Did you get that? Repeat Customers. The formula for long-term success.

If you're chasing after new customers all the time, and ignoring or not communicating with the ones you have, you'll never enjoy long-term success, and you'll never experience phenomenal growth.

How can you improve each of these areas in your business?

Differentiate or DIE (Mwahahahaha.....)

Jack Trout wrote a classic book on marketing called "Differentiate or Die." I haven't read it yet, but the title is a lesson in and of itself. (You might want to check out "Positioning," by Jack Trout with Al Ries, which I have read and is fascinating.)

Creating a Unique Selling Proposition (USP) is a strategic move. It's taking a look at the competition and finding a void that no one is filling...then claiming that void as your very own.

It's classic chess-level thinking. And to continue the theme of my last post, it's the most fundamental and most important aspect of your marketing system.

So how can you differentiate yourself without competing on price?

Well...price is certainly one way to do it. Some companies can be successful by positioning themselves as the price leader. Think of Walmart. Or the local mattress store that always boasts "We'll match anyone's advertised price or your mattress is FREEEEEEEE!" (BTW, that statement doesn't really make sense if you think about it. I mean, what are they going to say, "Sorry...we can't match that price. I guess we'll have to give you a free mattress!")

Anyway, moving on...

But price is only ONE way to differentiate and is not the best option for most small businesses. In fact, competing on price alone is a sure path to bankruptcy.

Consider instead, other ways to differentiate. Here are some ideas...

1. Speed of Delivery. (Think Domino's or FedEx.)
2. Speed of Service. (Like a one-hour response time for IT support, for example.)
   
3. Quality of Product. (Be VERY specific about WHY your product is better.)
4. Outstanding Customer Service. (Like Zappos.com...but again be specific about WHY your service is better.)
5. Expertise. Does your company have unique knowledge, expertise, or experience?
6. Customer Experience. (Starbucks, Cold Stone, any high-end establishment)
7. Specialization. Do you specialize in a particular industry, product, application, or niche?
8. Unique Process. Do you break industry norms? Think of CarMax: "The way car buying should be."
9. Unique Guarantee. Remember Craftsman tools' lifetime guarantee? That was the only brand my Dad would buy.
10. Location (or number of locations). Could work for retail businesses, but leaves you vulnerable if a competitor moves in next door.
11. Accessibility. Do you have accommodating hours, like a 24-hour call center?
    

It's important to remember that the best USP is one that can't be duplicated very easily. If your USP causes everyone else to change in response, then you'll have to come up with a different USP.

Think of Domino's. They built the franchise based on the "30 minutes or less" guarantee during a time when no one else was doing it. And they were phenomenally successful because of it. Now, however, everyone offers fast pizza. It's not unique anymore. The challenge for Domino's, then, is to come up with a fresh USP.

The Big Reason WHY

Can you answer the question "Why should I do business with you versus any and all of the alternatives that are available to me (including doing nothing)?"

For most businesses that's a tough question to answer without spewing out vague generalities like "quality service," "dependability you can trust," and "customer service is our priority."

How many times have you heard those kinds of marketing dribble before? Everyone says those kinds of things...so consequently they mean NOTHING.

If you want to give REAL reason why someone should choose your company over the competition, you need a Unique Selling Proposition that gives a specific and compelling "reason why."

Notice first that it must be "unique." In other words it must be something no one else in your industry is doing. Secondly, it must be a "selling proposition." In other words, it must be something unique that the marketplace actually wants and is willing to spend money for.

There are many ways to differentiate your business. We'll take a look at some of them in the next post.

Stay tuned...

Aaron Stanley
Leverage Points Marketing

Stupid Marketing Phrases

I've been writing about copy lately because most business copy SUCKS...and it's always fun to point out others' shortcomings. I just can't help myself.

I ran across this sentence today....

"Our experience and dedication to excellence is hard to match as we strive to best align our business strategies with your business objectives" [sic on the lack of a period]

Can someone translate that for me? I got lost at "hard to match."

Here's a great one:

"We specialize in everything from..."

This is just funny. How can you specialize in everything? Yet Google tells me there are 43,500 businesses that do just that! Incredible.

I wish I could specialize in everything. It would help me get around this particular problem I've had for years...it's just that I know a little about a whole lot of things and a whole lot of nothing!

Who Needs Needs?

Herschel Gordon Lewis is a legendary copywriter and direct marketer. Every month, he publishes an editorial in Direct Magazine. Recently, he addressed one of the most ridiculous, but ubiquitous phrases in marketing copy: "...for all your [insert word] needs."

I love his title: "Who Needs Needs?" It's a fun read. Check it out.

This phrase has rubbed me the wrong way for years. I hate it!

Honestly, why do people feel this phrase is necessary? Let's take an example. Let's say you own a printing business and you're tempted to use "For all your printing needs!" on all your literature.

Is that really true? Do you sell printers, too? Do you offer screen printing? What about imprinting? Do you stock every kind of paper known to man so I can print it myself? What about replacement cartridges for my printer? Do you print photos? Do you really handle every kind of printing need known to mankind?

I'm guessing not. And even if you did, wouldn't that be an awful unique selling proposition? How do you convince someone to do business with you if you "specialize" in everything?

My advice: nix the "needs." People have specific needs, not general "needs." (See Lewis's article.)

A Chest Beating Exercise

It's maddening how certain phrases are so ubiquitous in marketing copy...yet they mean absolutely nothing. Do any of these ring a bell?

"...is the leader in..."

Why, exactly, are you a leader? Can you spell it out? (If so, you'll gain much more credibility.)

"...offers only the highest quality..."

How so? What, exactly, do you mean by that? Everyone says that, so what makes you any different? (If you can be specific, you'll gain credibility and memorability.)

"...state of the art..."

How is "state of the art" beneficial? What do you mean by that, anyway?

In short...be SPECIFIC and avoid generalities in your copy. Your website, brochures, etc. are not about "chest beating," they're about communicating a specific message to your target prospect.

Good URL...Bad URL

To inaugurate my blog, I figured I would post "the rules" of printing URLs. I've had my own thoughts on this for quite a while, but Aaron Goldman, who blogs exclusively about it at "Good URL Bad URL," has written up a terrific "manual of style" concerning URLs in print. Here it is in his own words...(And be sure to check out his blog for some good fun!)

Do's

1. CapitalizeTheFirstLetterOfEachWord.
2. UseDifferentColorsOrBoldToHelpEachWordStandOut.
3. Whenever possible, use YourBrandName.com.
4. If .com is not available, use YourBrandName.net.
5. If .com and .net are taken, find a new brand name. Seriously.
6. Use YourSlogan.com when running an integrated media campaign.
7. Use subdomains when driving people deeper than your homepage - e.g. Product.YourBrandName.com.

Don'ts

1. Don't include www. We know to go to the World Wide Web to find you.
2. Don't include http://. If your audience isn't web savvy enough to know where to type the URL, you shouldn't have a website.
3. don'tusealllowercase (canyoureallytellwhereonewordendsandthenextbegins?)
4. DITTOFORALLUPPERCASE
5. No-hyphens/or slashes.
6. Don't use acronyms, abbreviations, or numbers unless your brand is widely known as such.
7. Don't bury your URL at the bottom of a billboard. I'm the only nerd driving around with a 4x zoom lens to find URLs.