Make sure you're selling what they want to buy

Deep down, every purchase has an emotional component to the decision. Before emotions get involved however, you need to be selling what your customer wants to buy. Too often business owners and managers make an assumption about their customers' key drivers and thereby miss the sale or, at the very least, waste a lot of time.

The buying experience isn't just about the end product. Let's face it, there's more than just you selling what you've got to sell. So how does the customer make the decision about who to do business with?

The winners are always the businesses who recognize that the customer is really only interested in "what's in it for me". Rattling on about how a product works and completely forgetting to just cut to the chase on the benefit to the customer is a sure way to disconnect from them. I don't particularly care how a refrigerator works - I just want to know that it's going to do the best job of holding all the fresh vegetables and fruits and the never-ending piles of cheese that live in my fridge. There's no point in focusing on the external ice-cube dispenser. I simply don't care.

Be prepared to have a conversation with your customer before you ever start 'selling' them something. You have to know and understand their needs to figure out the answer to "what's in it for me". Why are they shopping for this product or service? What's missing in their current solution?

Of course you'll need to have the list of functions, features and benefits for those lovely analytical people but even they are ultimately driven by "what's in it for me".

In the best sales scenarios, the customer does most of the talking. Not the salesperson. There are brilliant opportunities to learn other needs you can fill by being a listener, rather than a talker. And not surprisingly, customers appreciate a salesperson who doesn't rattle on.

Determine a list of engaging questions to use in every sales situation. This way, even if you aren't naturally spontaneous, you have a safety net of questions to move your sale along.

Key element: The sale is all about your customer. It's about their needs. It isn't about you or what you think they may be after based on what makes you interested in the product or service.

Every sale is different based on different motivations, different requirements and different personal needs. Make sure you're in a position to figure it out so you can sell what they want to buy.

Your current customer - your best business growth asset

It doesn't matter whether it's a recession, depression or just business as usual - your current customers are the best source of business growth. Unfortunately, too many businesses neglect their current customers to go searching after new ones.

Research has shown it takes about five times the money to get a new customer as it does to retain a current one. But just retaining a current customer really isn't enough. Why not get them to do more business with you? Why not get them to bring their friends and family to your business as well? Or in the case of business-to-business enterprise, why not get their co-workers into your customer base?

In some businesses, management believes it is solely the job of the sales force to stay in touch with current customers and try to grow the business. I would suggest however the sales force could be more efficient if the marketing team is on side with the importance of incenting current customers to grow their business.

Have you contacted your customer base to let them know you're still there to support their needs? Have you sent a postcard, letter, email? Have you told them they're appreciated? Have you demonstrated your appreciation through a special offer only to your current customers?

If you haven't, you're missing an efficient, economical business growth opportunity. If you have a retail location, invite your current customers to a small wine-and-cheese party to show off your new merchandise and have some great loss leaders to show your appreciation. If you are in the service industry, perhaps a partnership that compliments your service could be a good appreciation gift (and then you can do the same for that business).

Everyone likes to be thanked. Especially when there's gifts involved. A promotional item with your logo prominently displayed would be an excellent gift. That way your business identity stays in front of them for a longer period of time. But make sure the gift matches your branding. Don't give away a cheap pen if your business represents expensive items.

Bottom-line is: you need to stay in touch with your current customers and give them a reason to do more business with you. And if you can get them to talk about you to their friends and family, even better. Don't wait for someone else to do this for you. Get on it, right now.

Message match your meaning

Okay, so maybe I watch too many crime shows, but the new Air Canada television campaign is rather spooky to me. It's supposed to be the re-launch of the brand but, to me, half of it looks like a murder mystery. The smearing of red paint with fingertips is too much like writing with blood. (maybe I should seek help?)

I seriously believe an airline wouldn't want to be associated with spilled blood, so what were they thinking? The company's in trouble financially and they spend money on a high production ad that doesn't really sell any of their services but certainly puts a negative picture in my mind.

It is however an excellent example of what can happen to your marketing message if it isn't clear, concise and tested. Branding is important, don't get me wrong, but when your budget is tight, delivering messages that are high level and don't actually have a specific call-to-action are not a good use of your money (but it certainly puts cash into ad agencies' wallets). Of course, maybe Air Canada doesn't have anything positive to say about seat sales or services (that's certainly the sound of things in the media over the last while) so this weird bloody ad is all they have in their pocket.

There aren't a lot of ads, television, print or otherwise, that people take the time to discuss to discover what their impressions actually are. So you're stuck with their first impression - good or bad.

And it isn't just the words you use. In the case of Air Canada, there's nothing wrong with the words of the commercial. In this case, it's the visuals. So make sure your images are worthy of the message - both supporting it and enhancing it. For some people something as simple as brussel sprouts can be such a negative image that your brand is scarred forever.

Depending on the audience psychographics, you could find customers turning away simply because the imagery doesn't match their temperament. And the only way to know for sure is through testing or being completely in touch with who your customer actually is deep in their heart.

The more you know about your customer, the more you will be able to reach them with engaging and motivating messages. It's worth the research to not become an airline that markets writing in blood.

When is new radio too much radio?

Enough already! Over the last month or so, the Canadian Radio-Television and Telecommunications Commission (CRTC) has been madly granting new radio station licences. And most of them are in communities that are already extremely well-serviced by an overdose of radio choices.

Just because it sounds like a good idea to put a radio station in "wee tiny town Canada" doesn't mean it actually makes sense. The logic seems to be, according to one radio station owner in "wee tiny town", that it's important to have local news and information. Yep, okay, sure. But unless you are an independently wealthy radio station owner doing it from the goodness of your heart, you are simply watering down the audience market for your advertisers.

As it is, I hear from innumerable small business owners that radio doesn't work. I always beg to differ with this opinion because radio does work, when you do it right. And part of doing it right is choosing a radio station that matches your audience definition. If the audience is spread over five radio stations instead of three - well, you can see that this becomes a nightmare of planning and budgeting. All these additional radio stations are just going to make it harder for a small business to make a reasonable buy that gets results.

As a marketing coach, I get to meet a lot of small business owners. In one local community, a number of the small business owners that attended a coaching session were quite frank in their dislike of buying their local radio station. They felt the music choices were erratic and didn't sit well with their potential customer.

As a result, I had a rather long conversation with radio station owner from "wee tiny town Canada". The biggest surprise to me during this conversation was the emphatic statement, "People don't listen to the radio for the music. They listen for the information." Well, yes that might be true if you are a talk or news station, but if you're going to play music you might want it to have some logical association with the audience you are trying to sell the local businesses.

And in reality if radio can't deliver results, then people will stop buying it. And when they stop buying it, people lose their jobs and the radio stations cease to exist. How does it make sense to saturate the market with loads of radio stations - either for the radio stations or the small businesses?

The economics of marketing - shrink it at your peril

There's loads of research saying if you cut your marketing budget during tough economic times you won't survive with the strength you could if you just towed the line. And yet, there's more businesses cutting their marketing budgets than there are businesses getting smarter about how they spend their money.

I've had the pleasure of dashing about presenting Marketing Bootcamp for Small Business - Your recession survival toolkit to a number of organizations over the last month. The session discusses the importance of not cutting your marketing budget and shares important information about how to get the most bang for your buck. I've met some pretty terrific small business people who are suffering cutbacks and, in most cases, they've felt they have no choice but to cut their marketing budget.

The key thing to remember: If you cut your marketing budget, you are effectively lowering the amount you talk to your customer. At the very least, you are lessening the quality of the conversation. And if you aren't talking to them, someone else is.

This is why companies with their marketing budget intact, even during recessionary times, grow larger and stronger while other businesses close or panic. It's all about continuing the conversation.

Small businesses waste an extraordinary amount of money in their marketing. And they don't understand that marketing is actually a revenue stream - not an expense line (accountants will argue this, but it's simply true that marketing is the top of your sales funnel - without it there's no support for your sales force and no mechanism for relationship development with prospective customers). For many small businesses, marketing is simply a necessary evil that is the first thing to go when money is short.

In my book, Muddled, meager and messy - Marketing performance repair manual for small business there's information about how to make better use of the money you have. In cases where you get smarter, you can actually pare back your spend because you're getting more results.

The media has done a bang-up job of putting recession fear into every business person's heart. Take that fear and turn it into smarter business. Every marketing tactic should be able to be defined by the relationship it builds with your customers. If there's no relationship definition, you should reconsider the tactic.

Bottom line: If you have to cut your marketing budget you'd better get smarter about using the money you have. Heck, even if you don't have to cut your marketing budget, you should get smarter because customers are going to become more discriminating in their purchases.

The in-depth customer definition, nemesis of small business

My Marketing Bootcamp workshop only allows me about two hours to share important elements of successful marketing in recession. Designed for small business owners, it looks at the importance of branding even for the smallest business and all the elements you need to know to develop a successful marketing plan, like tactics and customer definition.

Needless to say, two hours isn't enough to really get into the nitty-gritty of things. The workshop is really interactive and depending on how long the attendees' comments and stories are, the workshop could easily become a whole day event.

We spend a great deal of time on really getting to know your customer so you can target your marketing. That's really the most important thing to know in recessionary times - how to drill down to the most fine-tuned definition of your customer. You can save money and deliver your messages more effectively.

Much to my surprise, nearly half of the attendees at the last workshop hadn't heard of demographics, hadn't spent time figuring out who their customer is and certainly hadn't considered going more in-depth than just demographics.

I can just imagine all the money flying out their windows since, without a customer definition, they must be just flinging their marketing dollars at the first sales rep that walks in the door.

I can't stress enough the more you know your customer, the more successful your marketing will be.

You've got to go past demographics into psychographics and decision-making styles. In a previous blog about psychographics, I discussed its importance and how to get there.

Knowing the psychographics of your customer is actually more important than the demographics in developing your marketing plan. If you can find the commonalities of lifestyle, interest and hobbies in your customer base, you can get more efficient with your marketing spend.

If you are a small business owner, the more you can target your business to a particular set of customers, the more chance you have to survive the recession. In your attempts to be all things to all people, you're actually hindering your chances of creating a loyal customer base. Leave the "all things to all people" to the big guys like Walmart (who have even learned they need to stick with their psychographics. When they tried to add a high-end section to their stores, it failed abysmally.)

You may think by having a broader customer definition you can make more sales, but you also have to spend more money reaching a broad audience. If you can target your message and your business, you can speak only to the people that are really your customer and keep the spill to a minimum.

Don't we love a disaster

With the year drawing to a close, I thought I would look back at the stats for my blogs over the year. The blog about the disasters of Wendy's and Burger King's marketing was, by far, the most popular. And popular around the world.

Most of the readers found the blog through a Google search. Have Wendy's and Burger King become the equivalent of rubbernecking a car crash? As North Americans, we have a morbid fascination with disasters and these two fast-food joints are definitely the prize winners for disastrous branding and marketing.

I re-read the blog to see if there had been any changes to the situation since writing about them in January. To my surprise, the brand-scarring I mentioned in the blog had been eliminated. The evil papier mache King head seems to be gone and the idiots in red braids seem to also have left the building. And thank goodness for it.

Wendy's brand has become more stable and likable again. Burger King is still a mangled mess, but at least they aren't scaring people anymore. (Well, they do scare me but that's a different thing. What scares me is that someone is out there making money off this mess and pretending they know something about marketing)

Needless to say, ill-conceived marketing ploys will be more painful for companies during the recession. Lack of consistency and follow-up will affect business bottom-line in a more pronounced fashion. With a tighter hold on their wallets, consumers and businesses will be making more thoughtful decisions about where they spend their money. Emotions induced by marketing messages will have more power to create a strong customer base.

Tight credit and closely held wallets won't make people stop using their emotions when they make buying decisions. They'll just get better at rationalizing the purchases. So mind your marketing and how it affects your customer.

Best wishes to all for a prosperous 2009.