A few days ago I had lunch with a long-time friend, who happens to be co-owner of a family business. I offered her some help as sales have been in half since the economy became the big worry and concern.
In looking over her stats it was obvious that her sales was in half. Struggling to cope with this drop, I asked what happened. Her business was driven by referrals from insurance companies. People were not claiming accidents, as they were pocketing the insurance money to pay personal bills, or just not reporting their claims for fear that their premiums would be increased.
I realized two things. One, she had not identified that her correct target market was insurance agents. The actual customer was not the one paying her; the insurance company was the source of the lead and the money. So I asked, "How large is that network?" She had about 300 referring agents on her list of contacts.
Two, she had not seen that this was her public, and thus was looking at doing all types of other marketing actions, none of which was directed at her actual target public. This was franticness setting in, all from the non-identification of who and how her revenue was being procured.
Business and revenue in half? Well, then TRIPLE the network of referring agents. I asked, "Can that be done? Are there that many more agents you could contact and activate as referral sources?" She confidently replied, "Oh sure."
Why increase the network by three times? Double it to make up for half the sales and add another third for safe measure and some expansion.
We then set out a plan:
* Hire someone to rapidly 3x the network of potential agents that could refer.
* Personally contact these people and let them know who you are and what you do.
* Send a weekly blog to this entire network, talking about common industry problems, potential solutions and other newsworthy items. Position yourself as a knowledgeable industry leader.
* Render fast, reliable service to everyone.
* Send thank you cards, flowers, etc. for every referral.
* Continue and don't let up on any of the above. 3X all promotional actions to this target market, no matter what, 24/7.
We canned the other ideas and focused her attention on what was and has created 95% of her wealth and lifestyle.
Identifying your key public, the one that actually pays you, may seem like something simple. Yet you would be amazed at how many business professionals cannot rapidly and confidently rattle off exactly who is their target market.
Once this is done, now you can do real and important market research, which I will cover later.
Know your key, revenue generating public!
Best, Ed Dearborn
Thursday, July 30, 2009
Wednesday, July 29, 2009
Free Advice Costs Them So Much
I am hopeless optimist every time I try to give free advice to a business owner. Yet it is a habit that seems to have no cure.
A while ago I walked into one of my favorite eating establishments and much to my chagrin, it was empty. Knowing what I would hear, I asked, "What happened?"
"It's the economy." Man I despise that excuse. It's just such a cop out and a great crutch in which to hang all our internally generated mistakes on.
I went on to tell the owner that in the three years that I had been coming to eat there that he has never asked me for my e-mail or for my business card and then sent me a postcard, nor has he asked me to refer others. No need to ask, I have already turned 30people and friends onto this place.
While enthusiastically coaching him and giving him several workable ideas, he just nodded content in his excuses. I stood there waiting, like a fool giving free advice, hoping he would now ask me for my e-mail or card. No such luck. I didn't even get my meal comped for trying to be helpful and go out my way to see that he would do better financially.
He has probably seen about 2-3,000 clients since he has been in business and not once has he gathered their contact data and sent them something to cause them to remember him and come back. And refer even more.
You know, even in hard times people eat. I don't think my receiver of free advice has fully realized that those customers are still eating lunch. As to my advice, "Eat your heart out!"
Best, Edwin Dearborn
A while ago I walked into one of my favorite eating establishments and much to my chagrin, it was empty. Knowing what I would hear, I asked, "What happened?"
"It's the economy." Man I despise that excuse. It's just such a cop out and a great crutch in which to hang all our internally generated mistakes on.
I went on to tell the owner that in the three years that I had been coming to eat there that he has never asked me for my e-mail or for my business card and then sent me a postcard, nor has he asked me to refer others. No need to ask, I have already turned 30people and friends onto this place.
While enthusiastically coaching him and giving him several workable ideas, he just nodded content in his excuses. I stood there waiting, like a fool giving free advice, hoping he would now ask me for my e-mail or card. No such luck. I didn't even get my meal comped for trying to be helpful and go out my way to see that he would do better financially.
He has probably seen about 2-3,000 clients since he has been in business and not once has he gathered their contact data and sent them something to cause them to remember him and come back. And refer even more.
You know, even in hard times people eat. I don't think my receiver of free advice has fully realized that those customers are still eating lunch. As to my advice, "Eat your heart out!"
Best, Edwin Dearborn
Tuesday, July 28, 2009
I Didn't Relish My Pickle
This may seem insignificant, but I feel my free pickle is a microcosm of a bigger problem in marketing. You see, I didn't ask for, nor want a large pickle spear as part of my garnish.
I had ordered a pretty fancy sandwich and was kindly asked if I wanted a bag of chips or an apple. Feeling like I should be a healthier consumer, I went with the apple. The service was prompt, but right by my sandwich and my very small apple was a pathetic pickle spear. No one asked me if I wanted one, I just got it.
I say pathetic, as this uninvited guest was bereft of color or crispness. Already not a pickle eater, this just furthered my preconceived ideas of not liking pickles.
Why did they not spend that pickle money on a bigger, better apple? I mean that's what I wanted. So please bring to me the high level of exchange in what I wanted.
Or at least give me the option of a better garnish. I like grapes or maybe carrots.
In marketing, we may be providing unwanted pickles, when really our customer wants a better apple or something more pleasant. Small stuff, when offered correctly, are the important, personal touches that adds to our brand value.
Maybe you need to do a reality check and see that some of what you are providing is an unwanted pickle, that when discovered and remedied, now opens the door to providing the actual item that people want, and doing so with your saved up pickle money.
Best, Edwin Dearborn
I had ordered a pretty fancy sandwich and was kindly asked if I wanted a bag of chips or an apple. Feeling like I should be a healthier consumer, I went with the apple. The service was prompt, but right by my sandwich and my very small apple was a pathetic pickle spear. No one asked me if I wanted one, I just got it.
I say pathetic, as this uninvited guest was bereft of color or crispness. Already not a pickle eater, this just furthered my preconceived ideas of not liking pickles.
Why did they not spend that pickle money on a bigger, better apple? I mean that's what I wanted. So please bring to me the high level of exchange in what I wanted.
Or at least give me the option of a better garnish. I like grapes or maybe carrots.
In marketing, we may be providing unwanted pickles, when really our customer wants a better apple or something more pleasant. Small stuff, when offered correctly, are the important, personal touches that adds to our brand value.
Maybe you need to do a reality check and see that some of what you are providing is an unwanted pickle, that when discovered and remedied, now opens the door to providing the actual item that people want, and doing so with your saved up pickle money.
Best, Edwin Dearborn
Sunday, July 26, 2009
The Power Of Doing It Now
The reports say that all is to turn around in 2010. Why then, and not now?
I've always wondered how this works and how so many fall for this ambiguous and defeatist idea. Why not now; why not on our own steam?
When "the economy" is some outside force that we all hope and pray to, as if it was a ruthless god of an ungracious nature, we have placed our fortunes into an unknown force. Likewise, we have admitted that our own efforts have nothing to do with creating our own future.
Time and time again, I see business people and entrepreneurs doing nothing about obvious problems that could be resolved in the moment, simply because they entered the day and the equation with an apathetic resolve of futility.
On the other hand, I have found that some are taking action now, looking for the opening, finding the creases within the problems and creating new solutions, and thus determining their own future and possibly even blazing a new trail for others.
Thomas Edison did not go to lighting school to develop the light bulb. The Wright Brothers did not take flight lessons in college. In fact, they never went to college like those who created the AIG and Enron mess.
Innovators have never looked to the economy or the way things are, nor did they listen to the bad news of how things could not be. They saw opportunity; they had a vision of what could be and then created it.
That takes courage and a high belief and faith in your own abilities and ideas. These are the people that will not only survive this economy, but will in fact be the architects of the new economy. And of course, they will be in front of the others enjoying most of the success that is to be.
Your revenue and your future are not determined by Washington, Congress or the man on the moon. Congressional committees could have never invented the light bulb, the airplane nor the solution to your future success.
Best, Edwin Dearborn
I've always wondered how this works and how so many fall for this ambiguous and defeatist idea. Why not now; why not on our own steam?
When "the economy" is some outside force that we all hope and pray to, as if it was a ruthless god of an ungracious nature, we have placed our fortunes into an unknown force. Likewise, we have admitted that our own efforts have nothing to do with creating our own future.
Time and time again, I see business people and entrepreneurs doing nothing about obvious problems that could be resolved in the moment, simply because they entered the day and the equation with an apathetic resolve of futility.
On the other hand, I have found that some are taking action now, looking for the opening, finding the creases within the problems and creating new solutions, and thus determining their own future and possibly even blazing a new trail for others.
Thomas Edison did not go to lighting school to develop the light bulb. The Wright Brothers did not take flight lessons in college. In fact, they never went to college like those who created the AIG and Enron mess.
Innovators have never looked to the economy or the way things are, nor did they listen to the bad news of how things could not be. They saw opportunity; they had a vision of what could be and then created it.
That takes courage and a high belief and faith in your own abilities and ideas. These are the people that will not only survive this economy, but will in fact be the architects of the new economy. And of course, they will be in front of the others enjoying most of the success that is to be.
Your revenue and your future are not determined by Washington, Congress or the man on the moon. Congressional committees could have never invented the light bulb, the airplane nor the solution to your future success.
Best, Edwin Dearborn
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