Posts Tagged ‘brand’

10 Good Reasons to Use Email Marketing

May 7, 2011

by Doug Smith, President, The Woodhaven Group, LLC

As a CEO, I wish that 30 years ago I had this extremely productive tool to communicate with my customers and prospects.

If your business is not using email marketing, then you need to make it a part of your marketing mix going forward.  What benefit will your company get from email marketing?  Here are 10 good reasons:

  1. It will increase your business cash flow:  Email marketing costs less than direct mail, television, radio and other forms of purchased media.  This means more cash for your company to use in other areas of the business.  Executed properly, over both the short-term and long-term email marketing will have your highest return on investment of any marketing channel in your business.
  2. Can segment your customer base:  Instead of a general message to a mass audience you can tailor your message to a segment of your customer base that has shown a desire for information on a specific topic, product or service that you offer. Relevant targeted content is at the heart of effective email marketing.
  3. Can build a 1 on 1 relationship:  This is not possible with television or radio.  Each email can be personalized with the recipient’s name, they can reply to what you have sent and you can directly respond to their comments or questions.  
  4. Can review response history of the individual:  Did they open the email?  Did they click-through to a link? Did they buy? Compare this to newspaper or television where you have no idea  whether your customer even knew the ad or 60 second spot even existed.
  5. Allows you to use triggered emails:  Based upon response history, you can automatically target future emails to their area of interest.  For example, if you are an attorney and your prospect clicked on an estate planning article, you can follow-up with an email on trusts.  Triggered emails can be set up by date such as birthdays, anniversaries of a successful completion of a job, for  holiday messages and many other ways.
  6. It lets your customer be in control:  Marketing has changed. The consumer now controls the relationship.  With email marketing the consumer can choose what part of the email to read, when to read it, if they want to respond to an offer and even opt out of receiving future emails if they conclude that your information is not relevant to them.  This is a good thing. The best performing company will win. Make sure its your company. 
  7. Email marketing can be synchronized with other marketing channels:  Email marketing does not have to  stand alone. You can use other channels like social media or direct mail to sign up prospects to receive emails about your company. By identifying a specific area of interest, a key person can respond with a personalized letter or phone call and not waste your prospect’s time.
  8. Can utilize education-based marketing:  Email marketing is not a sound bite or tweet.  It allows you to dig deep into a topic and educate your consumer.  Better yet, your company can send a series of emails weekly on a topic of interest.
  9. Builds brand:  A consistent ongoing message can build trust and credibility in your company. When the time finally comes to make a buying decision you will have built a reservoir of goodwill that will give you a chance to close the sale. 
  10. Can link to your website:  Your website should be treated as if it was another location of your company that is used to strengthen the relationship with a prospect or customer.  Linking to different parts of your website from an email can educate, sell, and communicate what makes your business unique.

There are some who say that email marketing is on the decline and is being replace by social media.

I disagree.

Email marketing continues to be at the core of an integrated marketing strategy that can build sales and profitability increase the cash flow of your business over the long-term.

I would be interested to know what your  experience has been with email marketing.

Will Groupon Increase Business Cash Flow?

May 4, 2011

by Doug Smith, President, The Woodhaven Group, LLC

I have to admit that I have not used Groupon or the other coupon sites from a seller standpoint at this time.

But I am intrigued by the potential these sites have to offer.

I know there are businesses that love what coupon sites do to sales and return time and again to using Groupon and sites similar to it.

Having said that, here are a few questions an owner or CEO should ask themselves before taking the online coupon plunge:

  • Who is your customer?  What do they really want and expect from your company?  While everyone likes a deal, do they expect you to be selling your products or services at 50% off?  Are they more price driven or value driven?  Any new prospect you attract should be similar to your existing loyal customer.
  • What is the impact on your brand?  What message do you want prospects and customers to hear from you?  Is the coupon call-to-action aligned with the value proposition your company has invested time and money in developing?
  • What is the cost to acquire a new customer?  You should know this.  What % of the coupon users will return to buy the next time at full price?  Run scenarios to see if you like the cost of customer acquisition.
  • What is the profit per sale and are you comfortable with that?  Run the numbers on gross margin and overall cost of marketing.   If the coupon site takes 50% upfront, what will you be left with after the sale?  
  • What is the impact on your existing customer? Will they expect the same offer even if they do not act on the coupon?  If you offer them the same discount as the coupon, would they have purchased anyway but at full price?  Do their expectations of your company change going forward?

Those are just a few of many questions to consider prior to using the online coupon channel of marketing.

Lastly, I would talk to businesses similar to yours who have used Groupon and similar coupon sites.  Ask them what worked and what they would do differently.  The beauty of Groupon and others like it is that you can learn from the experiences of others.

What do you want to accomplish from using online coupons?

Profitably increasing your business cash flow should be at the top of your list.

Use Google TV Ads To Build Brand And Increase Cash Flow

July 16, 2010

by Doug Smith, President, The Woodhaven Group

As a small business owner or CEO you do not have the luxury of wasting the cash flow of your business while trying to build your company’s brand and increase sales.

One of the quickest ways to blow cash and profit is to invest too many dollars in the wrong marketing channels.

Most business owners have been turned off by TV because of the big ongoing expense and long lead time to produce and schedule a spot.  However, the biggest complaint I have always heard is the inability to truly measure the results of a specific TV spot.

Most small businesses that have included the Internet as part of a well executed  integrated marketing strategy  know about Google’s successful AdWords program.  What you may not realize is that for about the last 2 years Google has been incorporating the mechanics of the AdWords program into purchasing TV spots.

As a small business owner you can find programs on Cable TV and bid on specific spots on those shows.  By using keywords similar to those used in AdWords Campaigns, your company can target programs and times that work best for your marketing strategy.  Best of all, you can measure the results afterwards.

To find out more go to Google TV Ads here.

Successful marketing is all about testing concepts, measuring results, making adjustments and testing again.

Whether you want to build brand or develop a top-notch direct response program, I suggest your company test Google TV ads.

Leverage your knowledge and experience with Google AdWords to become more productive with your TV budget.

14 Reasons A Company Should Use Internet Marketing To Increase Sales And Business Cash Flow

June 22, 2010

by Doug Smith, President, The Woodhaven Group

I envy the manager of today that is  just graduating from business school.  They have a tool available to them that I wished that I had for most of my 30 years as a CEO.  That tool is the Internet.  I can only imagine how this productive tool for generating sales will evolve over time.

It is an exciting time to be the Director of Marketing of any organization.  If your mission is to build brand, generate leads, expand a relationship with your customer, or simply surpass a sales plan, then the Internet must be part of an integrated marketing communications strategy.

For you business owners still not sure whether the Internet is worth spending your company’s marketing dollars this way, then here are a few thoughts of mine on why the Internet needs to be a part of your future:

  1. Pay for Performance:  As a CEO nothing gets better than this.  Using pay-per-click advertising that is  correctly executed allows your company to only pay if a prospect clicks on your ad.  Compare that to a TV spot on the evening news.  You pay for that spot whether your prospect is watching or not.  It’s the same with the newspaper.  Regardless of the location of the ad, you will be writing a check to the newspaper gods even if your prospect is on vacation and did not read the paper that day.  By the way, I predict that all digital newspaper sites will eventually go to pay for performance advertising.
  2. 24 Hour Marketing:  With a website, blog or video on YouTube the Internet offers an around the clock opportunity to deliver your message.  The prospect can log on when they want and you know your message will be delivered.  Compare this to event marketing or a showroom with limited hours, or a radio spot that is only for 60 seconds.  You get more bang for your buck.
  3. Results Can Be Measured:  How many readers really saw the newspaper ad?  How many listeners really heard your radio spot?  How many visitors to a trade show really walked down the aisle of your exhibit?  With Google analytics (read more here about Google)  your company can track how many visitors came to your website, how  many seconds or minutes they stayed, what percent were repeat visitors and on and on.  With analytics for the Internet you will know what pages were read and what pages were not visited at all.  You can even determine what part of the page was viewed.  With good timely accurate information, the Marketing Manager can then make the Internet investment more productive than what is happening with your non-Internet marketing today.
  4. Used To Build Database:  By using such tools as white papers and giveaways, your company can build a database of interested prospects from your website  to then establish a relationship with over time.  This beats buying a list tied to some demographic sampling that maybe could care less who your company is.
  5. Email Marketing:  This is possibly the highest return on investment outside of word of mouth.  For pennies a business can send enewsletters to a pre-qualified database that you generated.  The enewsletters can be segmented based upon the information the prospect wanted so only relevant content needs to be delivered.  The Marketing Manager can judge the performance of this tool by measuring how many readers opened the email and read it.  Email analytics can also tell what day of the week and what hour of the day is best to send the enewsletter.  Probably the most important aspect of email marketing is allowing the company to build a relationship with the prospect or existing customer.  An effective email marketing campaign provides information and a solution to problems of the reader.  It is not just used to deliver a call to action for a promotion.  For more information on effective email marketing go to the website of Exacttarget right here.
  6. Can Reach a Younger Customer:  Instead of hoping a younger demographic comes to your website, you can go where they are.  This can be done by advertising on sites most frequently visited by a young prospect group.  For instance, your company might advertise to young males on the ESPN site or to young female entrepreneurs on a women’s business blog.
  7. You Can Target Market to Almost Anyone:  By utilizing keywords in your organic or pay-per-click marketing strategy your company can send your message to a specific segment of customers in almost any defined geographic market for a predetermined price.
  8. Education Based Marketing:  The consumer is getting smarter and now controls the buy-sell relationship.  Before engaging the seller, the consumer will first take time to educate themselves thoroughly about the product or service they are seeking.  This will be done primarily over the Internet.  Those companies that will take the time to help the consumer by answering their questions and providing good information will gain credibility in the  mind of the buyer.  When she finally decides to purchase, the company that took the time to provide the knowledge she desired will be first on her list to be shopped.  The buying funnel or buying decision cycle has been extended by the consumer spending more time gathering information prior to the buying step.  Make sure your company is the one educating her.
  9. Mobile Marketing:  I predict this will be the most dominant marketing channel in the future.  Consumers are already accessing coupons at the checkout counter on their smartphones.  Will you be ready?
  10. Speed of Message:  In the past if sales were horrible and I wanted to execute a quick promotion it necessitated producing and sending a direct mail piece or producing a TV or radio spot.  If we moved fast enough it might happen in 7-10 days.  Now, if the marketing team this morning wanted to communicate a promotion, it can be delivered via email to the customer database before the sun goes down.  Maybe they would follow-up with another promotion in a couple of days.  Not only is it much faster than before but it is also far less expensive.
  11. Use of Video:  If you want to personalize the message there is no better way than the owner of the business looking into the camera and speaking one on one to the prospect or customer.  Some consumers do not want to read copy.  The video can be used to create traffic to your website, educate the consumer, or be part of a strong call to action.  Video on the Internet tends to be very short in duration and much less expensive than producing a TV spot.  Therefore, video marketing needs to become a strategy in itself.
  12. Build Brand thru Social Media:  All forms of social media such as Twitter or Facebook can be used to build a dialogue with prospects and customers.  This can be the first step in building a relationship that will turn into a sale.  Forums and consumer sites on the Internet can work to the benefit of a business or against it.  Social media is the new word of mouth marketing.  Make sure your company knows how to use it to its best advantage.
  13. Test Headlines and Copy:  By combining analytics with pay-per-click, a company can test various headlines, copy and promotions prior to running a newspaper ad or producing a direct mail piece.  For a nominal investment you will know ahead of time which headlines and promotions the consumer will best respond to.
  14. It’s the Future:  Internet marketing is less than 20 years old.  Yet the estimated dollars to be spent annually in online marketing is expected to surpass $30 billion in the next few years.  At the same time advertising on radio, TV and newspaper is struggling to show any increase.  The message is clear.  Online marketing will continue to outpace other methods of advertising.  A major reason is simply the ability to better measure results from the dollars invested through the Internet.

Will the Internet be a part of your company’s future?

It had better be because it definitely will be a part of your customer’s future.

Increase Sales And Cash Flow By Marketing To The Echo Boomer Generation

May 13, 2010

by Doug Smith, President, The Woodhaven Group

The echo boomers are coming!  Some say they are already here.

For the last 40 years the baby boomer generation has driven marketing decisions in America.  Those businesses that were able to tap into the boomer’s wants and needs have been successful.

Now those boomers have kids and the total size of that market called echo boomers rivals the size of the baby boomer generation.

Ignore them at your own peril!

Every business should be asking two questions:

  • How will the echo boomer decide what they want to buy?
  • How can our company persuade them to buy our product or service? 

Here are a few observations and conclusions I have about this generation and how to market to them:

  1. They obviously are comfortable with technology and anything digital. We see it with their use of social media, text messaging, PDAs, and past times like online games. We need to keep this in mind when deciding how and where to spend our marketing budget. 
  2. They really do not want to be fooled or misled.  The negative reaction to a bad experience will be immediate in forums and social media sites.  The echo boomer has moved on from “the letter to the editor.”
  3. The echo boomer tends to be well-educated and, I believe, will want to continue to learn throughout their lifetime. Utilizing an education based marketing strategy as it relates to your product or service  will gain your company credibility and earn you the right to ask for the sale at a future time.  A call to action by itself will not be enough.
  4. Later marriages among this group means more independent shopping by both the male and female.  For instance, will there be more single female homeowners?  Absolutely!  And this female will not be going to Dad or a boyfriend for a final decision.  She will have the money and the authority to decide on her own.
  5. Traditional or “old media” such as newspapers, direct mail and TV is giving way to making buying decisions through the Internet.  A smart marketer will find a method to “get in the way” of an echo boomer searching online.  How?  By using relevant timely  information that can be accessed when the echo boomer chooses to access it.  In the years ahead, I believe, some evolving form of social media combined with mobile technology will be the method of choice when this group decides to buy.
  6. Echo boomers like to help other people.  We see it with their participation in organizations like TeachForAmerica, microlending, and various social entrepreneurship groups.  As businesses we need to find a way to tap into these opportunities alongside the echo boomer.  Its good for business and good for society.
  7. Traditional brands are not as important to this group.  The echo boomer wants to know what the brand has done for them recently.  Is it evolving to fit their wants and needs?   Does it have momentum?  Do not bore them with your brand.  Think of Apple as an example.  How does your business compare?
  8. You need echo boomers on your sales and marketing teams.  They understand this demographic better than anyone and how it is changing.  Just reading studies or listening to a seminar speaker is not enough.  You should even consider engaging an ad agency owned and dominated by echo boomers.  

More than ever the consumer is in charge.

The next wave of decision makers will be the echo boomers.  It is critical that your company learns their behavioral characteristics and how they differ from today’s customer.

Is your marketing strategy ready for them?

Your marketshare, profit, and cash flow will be dependent upon it.