ACT! User Group Meeting   (for details, click here)

ACT! On-line Training   (for details, click here)

Related posts:

1. What’s New At True North
2. Get Positive!
3. Database or Rolodex?

So far we have talked about  3 of the 4 tools in the ultimate THRIVAL kit:

• Loyal Customers
• Economical Marketing Strategies
• Effective Processes

Along with each of these tools, we have provided tips and tricks and specific things you can do implement them in your own business. The final tip is a bit difficult because it all hinges on you. It is a positive attitude combined with a little creativity. With all of the negative news it can be hard to maintain a positive attitude. But being positive is exactly what can give you a competitive advantage and that little extra“oomph” to succeed.

History has shown downturns can be a great time to start a new venture. General Electric traces its roots to the Panic of 1873.  William Hewlett and David Packard founded HP during the Great Depression.  Microsoft launched during the recession of the early 1980s.  Disney, Oracle, and Cisco, and countless others took the leap during difficult economic times, and reaped tremendous rewards for their efforts.

You too can be a bright light in a dark market!

Downturns are actually a great time to sign up new accounts. Because companies are examining every expense for ways to save. If you can demonstrate higher Differentiating Values than their curent verndor, you will have a decent chance of winning their business.

Get Creative!

“Innovation is ultimately not an act of intellect but of will”
                 (Joseph Schumpeter)

All too often the first thing large corporations cut during tough economic times is R&D, making it a great time to get your hands on talented innovators or to escalate your idea before the rest of the market. During a time when everyone is playing it safe, creativity really stands out. Focus on experiments and innovation that have low impact on the bottom line but the potential to help you stand out above the competition. When budgets are cut it forces you to get creative with your marketing so use this time to test out-of-the-box concepts that don’t cost a lot.

Plan for the future!

Now is the time to act in the present while preparing for the future. What you do now will directly impact your business stability and long-term growth.

•  Those who have the customer in their back pocket when the purse strings loosen are more likely to come out on the other end with a post of gold.
•  Just because prospects are not buying now, does not mean they wont buy later. Maintain your relationships and realize your sales cycle may take a little longer.
•  Assemble a long-term nurture plan for prospects who are not ready to buy today
•  Show prospects how they can get value from you now, even if they don’t pay everything up front.

Trends Taking Small Business Into the Future

• Small businesses will expand their use of online marketing tools because they’re effective and efficient.
• Small businesses will focus on customer loyalty to build lasting revenue streams
• Small business will drive new customer acquisition through creative, new business models
• Small businesses will need to turn to technology and automation in order to cut costs
• Small businesses will rely on developing relationships to stay competitive

I hope you were able to distill a nugget or two of useful insight from our discussion on marketing in a down economy. I would love to hear your thoughts on the following:

• What is your business experiencing?
• What have you tried?
• Who are you collaborating with?
• What resources are you going to use?

I look forward to your comments!

Enjoy your day!

Ken

Related posts:

1. Make Your Business Thrive!
2. Effective Processes
3. Economical Marketing Strategies

In order for your marketing tactics to be effective you must first have a strong strategy. Your strategy must include:

• Making Marketing a Priority
• Focusing on highly-targeted prospects
• Taking advantage of bargains and discounts
• Leveraging your relationships
• Marketing through new channels.

Many companies react to economical slowdowns by cutting budgets – and marketing always seems to be on the chopping block. In fact, how many of you have already cut your marketing budgets this year? If so, it is an understandable reaction but not necessarily the right one. Here is why:

Analysts tracking companies in previous recessions found that, during the recovery period:

• firms that cut marketing experienced a small decrease in profit
• firms that maintained marketing experienced a small gain, and
• those that increased marketing enjoyed a substantial increase in profits.

In short, it is in your best interest to invest in marketing now!

With all the great opportunities to improve your marketing it can be overwhelming and difficult to discern where to begin.

Why not try a small ball strategy? (a concept designed by Andy Liu of Inspired Startup.com)
The idea is simple. If you are constantly looking to hit a home-run, you are less likely to win the game. It takes a combination of plays and maneuvers to figure out what is working best.

• What works today may not work tomorrow.
• Look at your marketing in bite sizes
• Don’t put all your eggs into one basket
• String together a bunch of small initiatives
• Try different marketing tactics for different results
• Optimize, replicate and scale what works best
• Be adaptable to change as your market changes

Along with the small ball strategy, the next key to marketing in a down economy is focusing on highly-targeted prospects. The benefits are clear:

• Marketing to a smaller list has lower costs
• Targeted lists have higher response rates.
• Focusing on fewer targets results in shorter conversion cycles.

In order to focus on highly-targeted prospects:

• Know your target market
• Deliver them value
• Remember your value has to outweigh their own fears of the economy
• Emphasize urgency
• Create exclusivity

All of these combined mean higher ROI! You can tell your efforts are working through testing. Target, Track and Test Everything you do! Stop throwing things at the wall to see what sticks. That kind of spaghetti marketing is a waste of time and money. Test multiple strategies. Create a clear plan-of-action.

Bartering and trading is a great way to get a lot of bang for your buck. A few examples include:

• I will put your ad in my newsletter if you will do the same for me.
• I will put your banner on my website if you will do the same for me.
• Donate your products/services to a charity in exchange for exposure

Not all marketing has to be high-dollar ad spends or flat rate sponsorships. Are you familiar with the old marketing adage “I know that 50% of my marketing works – - I’m just not sure which 50%”? It doesn’t have to be that way. Today’s marketing is more flexible than ever. Today you have pay for result options. Examples include:

• Affiliate marketing
• Performance based advertising models (Example – TrialPay)
• Pay for the traffic you are driving (Example – Pay Per Click – Google Ad Words)
• Pay-per-results blog marketing
• Performance based marketing plans/programs developed by marketing agencies and consultants

A killer way to market in a down economy is to leverage your relationships – - beginning with your customers.

• “When customers are truly thrilled about their experience with your product or service, they can become outspoken “evangelists” for your company. This group of satisfied believers can be converted into a potent marketing force to grow your universe of customers.” Ben McConnell and Jackie Huba “Creating Customer Evangelists”

How do you get your customers to actively participate in your success?

• Offer Incentives
• Ask for support
• Give referral gifts
• Target new customers

The value of a great customer referral is clear. “Customers referred by existing customers spend an average of 50 to 75 percent of the referrer’s spending over the first three years of their relationship.”

You can also leverage partner relationships to market effectively in a down economy.

• Partner with “Up market” or “down market” companies in your industry to share leads
• Partner with complimentary companies. (Example: create product bundles that add additional value to customers at a lower price.)
• Partner with companies already reaching your target audience.
• Create partner programs that pay for referrals or sales.

Creating a formal referral program is a great way to reward customers and partners for what they do to help you grow your business. A good referral program must be well designed and supported with processes and technology:

• You need a database for capturing data in a structured format.
• You need to track leads and follow-ups with an effective sales team for growing your business.
• You need to acknowledge and reward your referring customers promptly.

There are a lot of ways you can market but some strategies are more economical than others. In times like this, your best bets are:

• Email
• The Web
• Social Networking
• Traditional Media
• Events, Webinars, Seminars
• Incentives
• Networking

Email marketing is cheaper. Consider this: Average costs of 3 to 10 cents per email, versus $2 for direct mail and up to $3 for telemarketing. (Source: McKinsey & Company)

Customer acquisition costs average only $24 for email versus $82 for PR, $958 for print ads, and $1,457 for radio ads. (Source: Fiore & Collins)

In order to benefit from email marketing, you need to have an effective email system in place to manage contacts, deliver targeted messages, and ensure high deliverability (there are a lot of factors that affect email deliverability).

• Email can be used as a relationship builder to build relationships with customers and prospects over time.
• When email provides true value it is often shared (goes viral).
• Email is easy to track. Valuable information for other business decisions can be gathered quickly.
• Email can be automated with the right tools.

Email marketing is not the only way to market using the Internet:

• Use landing pages to produce the best YPV (yield-per-visitor)
• Don’t just sell. Create simple tips. Blogs. Forums. Etc.
• Nothing in life is free. Offer value in exchange for data, but don’t always go directly in for the sale online.
• Make sure your website is a first impression that builds trust
• Add with new daily content: event listings, product/service announcements, blog posts, your latest testimonials, press/news, etc.

Social media is another great marketing tool but you need to be careful how you use it:

• Actively participate, just creating an account is not going to get you anywhere. Join niche groups within the different networks.
• Address any customer complaints that arise in social networks, quickly and carefully. Comment on other third party blog posts and forums.
• Make sure your posts are conversational not sales pitches.
• Unleash your customers and staff by encouraging them to communicate via forum posts and blog comments.
• Track results so you know which activities are driving your leads.

While social media is being utilized more and more, traditional media still has its place:

• Get friendly with your local business reporters and not just the major newspaper: local business journals, smaller/independent newspapers, community papers, university papers, etc.
• The press is looking for good news stories, especially from small businesses and entrepreneurs. Contact them about awards/recognition, industry tips, client successes, charitable activities, and speaking engagements/events.
• Most publications will only accept email submissions so make sure you have a catchy subject line and are following all email best practices (don’t spam the media).
• Write or co-write articles that are pertinent to your industry. Submit completed articles or article ideas to editors, local and national – especially vertical, that might have an interest.

Free seminars and webinars are great ways to engage new audiences and provide clear value that helps you to gain trust and recognition in your market. Find a possible partner to co-host an event. Offering valuable content from two sources is even better than one. Partner with non-competing third-parties that would be interested in sponsoring your event to help you market and gain exposure for your event. Ask your local churches, universities, banks, chamber of commerces, etc if they will host your event. Webinars are a low cost way to execute your event. Invite your prospect and customer base and ask them to share the invitation with friends.

Incentives can be a great way to get your prospects to take action. Here are some incentive ideas:

Low Cost Gift Ideas:

• Company logo items (hats, water bottles, mouse pads, etc.)
• Non-related materials (stuffed animals, candy, paperweights, etc)
• One of your products or services at no cost to them
• Calendars
• Food

No Cost Gift Ideas:

• Free Whitepapers
• Free Reports
• Newsletters
• Admittance to webinars
• Industry specific bonuses
• Trial offers

When done properly, networking can be the single most effective way to grow your business.

• Socialize, don’t sell
• Create personal connections
• Focus on quality vs. quantity
• Find a fit
• Make an investment and commitment
• Get involved
• Look for ideas not just people

In Part 3 of Making Your Business Thrive in a Down Economy, we will discuss the third pillar – Effective Processes.

Have an extraordinary day!

Ken

Related posts:

1. Get Positive!
2. Make Your Business Thrive!
3. Effective Processes

As you may already know, I’ve been in the contact management database business for a long time. First as a user, then as a business consultant. My particular area of expertise is helping other businesses build and develop a database of their most profitable customers, ideal business partners, and passionate referral sources.  I hope you will agree with me when I say that in your business, your database is your most valuable asset. You do have a database right? Now, please understand that I’m not talking about your Outlook address book, or some other email-based address book, or contact directory on a cell phone, smart phone, pda or spreadsheets.

No, what I am referring to is something much more valuable and tangible. What I’m talking about is a living, breathing, dynamic and organic relational database that is the sole-source repository of everyone you know. It needs to be customizable, searchable, and capable of segmenting your contacts into a variety of categories. It also needs to be secure and capable of being backed-up on a very regular basis. Ring a bell? If you don’t have something like this, then not only is your whole business at risk, but you’re losing revenue. Lot’s of revenue!

At True North Partners, we focus exclusively on one contact management (or contact relationship management) database system. ACT! by Sage.

Over the course of the next several blog posts, I will be writing about the ACT! Contact and Relationship Management system, and going in to great detail about how you can improve your company’s profitability, and overall net worth, by harnessing the power of systems like ACT!.

Thanks for taking the time to share in my morning inspiration.  Enjoy the rest of your day!

Related posts:

1. Database or Rolodex?
2. It’s just a database!

Now, let’s talk about your living, breathing, ever expanding database of contacts that you’ve been keeping track of, and staying in touch with over the years. This database represents your customers, your prospects, your suspects, your vendors, your referral sources, your media contacts, absolutely everyone you’ve come in contact with during the course of your business life time. Not only does this database contain the “who’s who” of your company’s existance, but it also contains the notes and histories of all the interactions of days gone by. Details of phone calls, meetings, buying habits, lead sources, measurable outcomes of marketing campaigns, relationships, and more, all packaged together in a nice and neat data repository we call a database. Now, put this bad boy on the market and offer it up to somebody who is interested in buying a business like yours and see if you get their attention! As they say in the auction business, let the bidding begin!

One last thought. If you are at all concerned about the current state of your database, or your thinking that what I described above is a bit of a stretch from where things are for your company today, then maybe we can help. It’s one of the things we happen to be very good at here at True North Partners, so if you would like to talk with us further about how we might be able to help you build and develop your company’s most valuable asset, click here and give us a call. We look forward to talking with you.

Related posts:

1. Have you hugged your database lately?
2. Database or Rolodex?