Exorcising Your Demon Clients October 29, 2008

Look like one of your demon clients?

We are all too happy to identify and focus our marketing towards our best clients.  It is the way to get more of them, right?  But, what about the bad customers - the ones who are time wasters, low return and even cost you money when they purchase?  What are you doing to repel them? 

“Repel clients?  I can’t do that.  Even a bad client is better than no client.”  Well, probably not.  Here’s an example to drive this point home.  A national electronics retailer identified that a small but annoying segment of their clients only purchased high end, loss-leader items with manufacturers rebates.  They would process the rebate, then return the item to the store and then buy back the same item at the even lower “clearance price”.  These items would end up on certain EBay storefronts at a great price, but still a profit for this demon client.  So how do you end this behavior?  They implemented a 15% restocking fee for returns and only do not sell returned merchandise at the same store.  Demon exorcised!

I just went through this process with a retail client that hosts kids birthday parties which are a significant part of their sales.  However, we identified there was a segment that just wanted the space and to bring in their own food.  Since the margins are mainly on food, that wasn’t a client she wanted to attract.  So, she implemented a $50 charge to bring in outside food.  Demon exorcised!

Of course, this all assumes you are paying attention to which clients are treats not tricks.  Sometimes they are lumped into a demographic group and skew the overall numbers.  For instance, this same client is open daily for breakfast, lunch and dinner with tumble time.  Stay-at-Home-Moms are a good share of her business, however she wondered why they weren’t spending more on food.  After a little analysis, we identified that there were two types of SAHM’s that visited:  easy going ones that loved her place, came weekly and spent money on food.  The other were self proclaimed “super Moms” that wouldn’t dare be seen feeding anything they didn’t make themselves to their child.  That sub-set didn’t spend beyond the play space admission.  (They don’t even drink coffee!  Definitely demonic.)

When analysing your very best customers and how to direct more marketing effort towards them, don’t ignore the demons.  They could be lurking in your showroom right now!  (Crosses and holy water are optional unless you cater to lawyers.)

Pull vs Push: the Importance of Client Personas October 17, 2008

My last post was “all about you” - your Value Proposition.  Hopefully, you took time to not only create one but test it against the measurements and have a pretty good one. 

Now we need to move to “all about your client”.  The internet killed mass marketing for most businesses that don’t bonus their C-levels in the seven-figure range.  You need to think “pull” not “push”.  Not only is mass marketing financially wasteful in many cases, it’s plain annoying.

Mass marketing = Push marketing = Pushy = Intrusion

Is this your client?

Your Optimum Client:  Think of the clients you already have that are such a joy to work with that you would do it for free.  Then think of all the qualities and needs they have.  It’s imperative that drill down as far as possible in this step.  Create a persona (something used in marketing regularly) that enables you to know exactly the types of things this person likes to do and experience beyond your business relationship.  You should be able to close your eyes and picture this person and what they would motivate them to find you.  What’s their annual income, do they have kids, do they drive a domestic car, do they buy or rent, etc?  Sound familiar?  When those optional surveys pop up, those clients are trying to determine everything they can about you so they can replicate successful conversions. 

Are they your client?

Now, Pull!  This is where you determine something of amazing value to can offer FREE to this client to get them to perform a certain action other than buying.  The quickest way to win your client is not by annoying the hell out of them.  (Shocker!)  Providing amazing value, with a “no risk trial” element and without pressure to buy will get them on board.  I’m not suggesting giving away your products or services to your detriment.  But similar to this blog, give away knowledge to optimum clients in a massive way.  They will feel that they are getting the keys to the kingdom.  We all know that most people won’t act fully on everything.  However, those that do should be given so much that they are amazed by how much you know and curious how far your generosity extends.  “They are giving me so much in this free trial.  I can only imagine what I’d get if I paid for something.” 

Regardless what you intend to share with these potential clients, you absolutely must determine with laser precision who they are and what gets them excited.

Strong Value Proposition – It’s ALL you got! October 12, 2008

For my regular readers (thanks for being one), I will be dutifully writing on marketing topics from my weekly BNI meeting presentations.  There, I am given a mere 3 minutes to educate my chapter on something that will drive their business marketing.  Here is where I will expand on the topic more fully for all readers.

I chose to start from the primordial ooze of marketing - value propositions.  We all think we have a great one.  “Superior customer service,” “State of the art system,” “Family environment.”  Those are all very nice, but the pros know that there are plenty of customers who are saying, “So what?” to each of these statements.  The most important question you can ask yourself is:

Why should my optimum customer buy from me versus anyone else?

If you can formulate a credible, quantitative phrase around your key differentiator, you will increase your conversion rates exponentially.  Conversion tends to be used for online marketing, but in the case around a strong value proposition it will cross all types of marketing. 

The Goal:  Have a brief, indisputable phrase that your competitors cannot meet or beat.  This differentiator needs to be an area where you excel.  It’s okay that you match your competition on everything else as long as you do one more great thing.

Quantitative vs. Qualitative:  Most business owners are most comfortable with qualitative value propositions:  “New,” “Safe,” “Best,” “Friendly.”  Although these words are compelling when used in conjunction with other marketing they are subjective and elicit varying emotions in the customer – a.k.a. points of friction.  These points of friction are many along the path to purchasing in the customer’s mind.  You must address these up front and with complete objectivity for your company’s offer and products.  When you use qualitative phrases:  “Voted #1 in Sonoma County,” “3 Generations of Experience,” “We will spend at least 10 minutes listening before…Guaranteed,” you eliminate subjectivity and increase credibility.  (Of course, subjectivity can sneak into this element if the customer doesn’t find the source credible.)  Quantitative doesn’t need to be numerical.  It needs to be measurable in some way and indisputable.  Do you now see how “New” just doesn’t fly anymore?

Measurability:  Marketers love to measure.  We even measure the effectiveness of a value proposition with formulas.  I won’t bore you with these, but I will point in the direction of my next post (and presentation).  Once you have a value proposition statement that you think works, test it on the below grid.  You need to be able to walk in your optimum customer’s shoes.  Rank your customer’s desire level and the exclusivity of your offer.  Plot on this chart using the key on the right.   If you are in the Green section – it’s not bad, but you can probably do better.  Purple is what you want. 

Value Proposition Measurement

Desire
0 = no interest
1 = possible interest
2 = high interest

Exclusivity
0 = anywhere else
1 = somewhere else
2 = nowhere else

Working towards a great value proposition will help in every part of your marketing.  If all you do is nail this one marketing element, you are virtually competitor-proof.

Source:  MarketingExperiments

Cats vs. Dogs – which are your customers? October 5, 2008

Anyone who reads marketing books knows that the Eisenberg brothers have some pretty sound advice that has a tendency of smacking people right between the eyes.  One of these, titled “Waiting For Your Cat to Bark?” says it all.  So many businesses do not pay attention to what their clients respond to and instead thrust marketing efforts at them expecting results. 

Approach your target audience like a house pet.  

• Dogs:  They are loyal, repeat customers who are excited with each new product or service you offer.  But now, with so many choices they will be tempted to stray.  Years ago when there were a handful of TV networks and the Internet hadn’t been invented competition for attention was limited.  You need a strategy to keep them loyal.
• Cats:  These are all the new customers you want.  You probably don’t know how they prefer to be contacted with your message.  If you torment them on the wrong level too often, like cats they will become indifferent to your message.  Worse, they will decide to pay you back by telling others how annoying you are and that they wouldn’t buy your catnip if you were the last catnip vendor on Earth. 

Today our targets have choices in what they pay attention to.  Like cats, they come when they need something – period.  These cats can choose the Internet, text messages, blogs, TV, TiVo (where they fast forward through your 30 second spot with ease) and hundreds of channels that focus on their precise interests.  We need to focus our attention on the places our target spends their time when they most likely need our product or service. 

If yours is a “need not want” product or service, you have a great challenge.  I’ll use myself as an example.  Marketing is not a wanted service.  It’s a business expense that most business owners see as a necessary evil.  Corporations prove this every time they have a layoff – marketing staff usually goes first leaving a few, scared people to work with limited support and funds to produce quality leads for the sales force in a depressed market.  Hmmm?  Do you think they will do something brilliant, risky and inspiring?  Not a chance. 

I approach them constantly with education.  I choose to educate via this blog, speaking engagements, networking and WOMM that I know what is happening in marketing at all times.  During this particularly poor time, anyone marketing even slightly more than a competitor will reap rewards when we come out of this.  It’s been proven by large and small companies alike.  If you pull back now, your competition will take your market share later.  See http://collateraldamage.wordpress.com/category/marketing-blunders/

More on “need versus want” in another post.