Download the eBook to learn about the 48 proven strategies for success for local marketing. For example, the eBook can be used as a reference manual.
In other words, it can be useful for CEOs, CMOs, franchisees, operators, and “Mom & Pop” owners of brick & mortar operations. Several of the 48 proven strategies for success are useful for service area operations such as home services.
How to use this eBook
As the CEO of a multi-unit operation, you could download the eBook and give it to your operations and marketing teams.
For example, if you are the head of marketing for a multi-unit brick & mortar business, you could use it for ideas and ways to challenge your team.
And most importantly. if you own a brick & mortar business or are the franchisee of any retail or restaurant chain, use the 48 proven strategies for success to augment the marketing tactics your franchisor provides.
What is local marketing?
Local marketing is marketing to the people who live and work in your trade area and have a propensity to buy your services and/or offerings.
Local marketing used to be simple. To market your business in a local area, business owners used to join the local chamber, send direct mail postcards, buy a yellow-pages ad or perhaps even walk the trade area to introduce themselves to other local businesses, schools, banks, etc. in the neighborhood.
One of my favorite stories is about a small business owner who had the misfortune of being located in a strip center with two other businesses that sold the same wares. The store on the right advertised that they were having a sale, and everything was 10% off. The store on the left followed suit and put up a banner that said everything was 15% off. What was our owner to do?
He also put a banner over his front door that said:
MAIN ENTRANCE
Which door would you enter?
Examples:
#2 is how to optimize your Google My Business (GMB) page
#8 explains the importance of email marketing
#22 how to use local service ads for service-area businesses
#31 about how direct mail still works
#37 explains how to deal with the constant request for donations
#40 on how to use various kinds of signage to promote your business
In addition to ITB Partners, Doug works as a fractional CMO with Chief Outsiders. Chief Outsiders is the largest fractional CMO firm in the USA. As a result, Chief Outsiders is home to 75+ chief marketing officers who specialize in helping small to mid-sized companies grow.
In mid-June, I received an email from my next-door neighbor asking for help with a project. Bob had just completed the first draft of a book and was beginning to think about the publishing process. He thought I could help sort out his options. Six months ago, Bob shared his idea for a book so I wasn’t surprised by his request. He wanted to tell a story about the challenges of becoming a Plant Manager, based on personal experience. His interest was to write a novel in the style of “The Goal,” by Eliyahu M. Goldratt and Jeff Cox. It appears that the Covid-19 voluntary lockdown provided him with the perfect opportunity to write his book. We scheduled a Beer Summit for 4:00 p.m. Saturday.
Bob arrived at our side door, off the kitchen, with a six-pack of chilled Pilsner Urquell. That was a pleasant surprise as I had just stocked our beverage center with a few of my favorite brands. He explained that Pilsner Urquell is a brand he came to appreciate while stationed in Germany. Always interested in trying a new brew, I thanked him and grabbed two glasses. After a brief toast, we exited the kitchen door to the deck and found seats on the shaded corner around the fire pit. The beer was a good choice. We began to talk.
He reminded me of his plan to write a book to help launch a consulting career. The opportunity presented itself, so he took it. Bob said that he had been talking to friends about their publishing experience. So far, the feedback he had received was about traditional publishing. He said he wanted to hear about my self-publishing experience. I told him how I had published my book on Amazon, and I volunteered to introduce him to colleagues who had significantly more self-publishing experience. Also, I suggested that he distribute his manuscript to ten or twelve trusted friends to gain their perspectives. Bob asked if I would like to read his draft. I happily agreed.
The following Saturday, we met again to discuss his manuscript. As with our first meeting, Bob supplied the beer, this time a six-pack of Guinness, one of my favorites. We found our spots on the corner of my deck and opened our beers. Small talk followed as we eased into serious conversation.
Bob had emailed his manuscript in MSWord format. I read it in ten-page printed chunks, making notes on those pages. Before handing Bob his marked-up manuscript, I explained that my focus was on the quality of the story, not the grammar, sentence structure, or syntax. I made notations of issues in those areas for his consideration, however.
As I handed Bob the manuscript I complimented him for creating a remarkable story and enjoyable read. I went on to say that my only recommendation was that he consider changing his opening chapter. Bob had used the first chapter to introduce Bud, the main character. My suggestion was that Bob presents Bud’s biographical information in a series of flashbacks to provide perspective as to how his experience informed his problem-solving and decision-making process. By doing so I believe it would generate stronger reader interest by captivating their imagination at a more dramatic part of the story.
Summary and Conclusion
Everyone likes a good story. It is human nature, part of our DNA so to speak. For millennia, humans have entertained themselves by telling stories around the proverbial campfire. One can imagine the origin of the first Fish Story, “you should have seen the one that got away.”
Things have not changed that much in the 21st Century as a good story is still the preferred way to sell a product and to keep one another entertained. In fact, I stress this point with my consultants and coaching clients. If one wants to be considered a Subject Matter Expert, (SME) or become recognized as a leader in their field, they must be able to sell themselves. In other words, we must be effective communicators. Our skillset must include mastery of the written word as well as verbal communication skills. A compelling story can be your launchpad for more effective networking, blogging, and speaking.
Thank you for visiting our blog.
Jim Weber – Managing Partner, ITB Partners
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Like the eye of a hurricane, businesses raked by the leading edge of the COVID-19 pandemic are now taking a cautious look outside. Though the winds have subsided, and it’s tempting to think that the worst is over, the eye simply gives us a chance to prepare for what’s left to come. But the time is now to begin planning for the rebound.
If you withstood the worst of the impacts of the pandemic so far, you likely have accepted that the storm was coming, and had battened down your hatches (or at least applied for PPP funding to keep vestiges of your business afloat). Now, as we can start to imagine a future, it’s critical to have your plan in place when the rebound hits.
For those who haven’t been willing to consider the details needed in your post-pandemic recovery plan – or simply weren’t willing to “go there” – now is the time to plan for your rebound.
The public has been released from their quarantine in many states and other states are scheduled to open. Research indicates consumers will be ready to shop and dine. The world into which they will venture will indeed be changed. Will their appetite for dining with you also be transformed?
In my view, planning for the rebound – the re-grand-opening into the brave new world – will require a three-step planning process:
An accurate assessment of NOW – Analysis and cost-cutting based on where you are today, and how you’ll conduct business until social distancing is no longer needed;
Planning for NEAR – Executing on pivots or changes to your offerings to help your cash flow to improve your survivability, and;
Plan NEXT – Stop random acts of marketing and follow the 12-step approach that follows “The Growth Gears,” a strategic marketing book authored by Art Saxby and Pete Hayes, to plan for your recovery.
Where have your customers gone? Are they still in need of your unique brand of hospitality? Have you maintained your competitive edge? Can you keep your employees active and engaged in the business? Many businesses are grappling with these and other questions, as they fight for survival in an apocalyptic present, and uncertain future. Here are four tips to consider when planning for the rebound and assessing your business:
Review costs
Most people have already done this – things like canceling recurring services that are simply irrelevant, asking for payment terms on necessary services, and in general, having a series of difficult conversations about labor, supplies, and rent. Job No. 1 is to understand your cash flow – and factors influencing it.
Review competition
What is your competition doing now? How have they pivoted? Did they reduce hours of operation? Were they forced to close? Is there something you could do with your local competitors to encourage customers to order takeout and delivery? For example, an entity called “The Great American Takeout” has formed, and has encouraged customers via social media posts to takeout food to support restaurants every Tuesday since March 24.
Reconnect with your employees
Did you furlough or lay anybody off? With the crew that is left, what has the pandemic done to morale? How are you? Now is the time for frequent communication with your current and past employees. To prepare for reopening, you should prepare a plan to re-hire and train employees.
Reassign tasks
To keep employees on the payroll (assuming you have sales because you are offering curbside pick-up or delivery), reassign team members to answer the phone, shuttle deliveries, or serve as curb-side ambassadors. In the short term, this could also mean repurposing the business for strictly philanthropic purposes. One restaurant invited the American Red Cross to park its Bloodmobile in their parking lot for a blood drive to help medical professionals.
Step 2: PLANNING FOR NEAR
Planning for the rebound needs to happen now. If you’ve withstood the worst of the pandemic so far, you may find that the tweaks you’ve made temporarily should be considered for permanence. Now, more than ever, understanding the customer’s needs and wants – and how you are positioned to be a guiding force in their upturned lives – can be a make or break proposition. Here are some ways to be a part of this change:
Rethink offerings.
If you’re a restaurant, you might offer groceries or sell toilet paper. Most restauranteurs reduced their menu offerings to optimize the to-go experience. For retailers, this can involve sticking with conveniences like online ordering and curbside pick-up. Creativity is key. Here are some creative examples:
Red Roof Inns: The lodging company offered up hotel rooms as a remote office and alternative resting spaces during the day for truckers for only $29.
Fogo de Chao: The unique Brazilian restaurant shifted its focus to offer curbside packages of ready-to-grill cuts of meat.
Wow Bao: The restaurant has begun “selling the materials necessary to make a simplified version of their menu of bowls, buns, and potstickers to other restaurants and ghost kitchen facilities,” according to the website Restaurant-Hospitality.com.
Subway: The sandwich chain is testing a Subway Grocery concept in California. The beta program allows customers to order items such as baked bread, deli meats, sliced cheese, vegetables, and soups.
Panera: Like Subway, Panera Bread has launched a grocery offering at scale to allow customers to order essential grocery items such as loaves of bread, milk and produce, and to have the items available for delivery or drive-up pickup.
Reconsider sacred cows
As businesses rethink their offerings, they can run smack into certain “sacred cows” that seem to be integral to their identity. For example, a full-service eatery may balk at delivery options, since that fish dish might be ruined in the 30 or 45 minutes it takes to deliver it. This is no time for those kinds of pretensions. Find a way to make a meal pack, or focus on offerings that can be delivered successfully. Several restaurants have created pop-up drive-throughs, with no more than a tent and a landlord’s blessing. And the likes of Home Depot have shifted to curbside pick-ups even as it prided itself on counseling customers in the store.
Reschedule Initiatives
Retailers and restaurants that had planned remodeling projects could move those up, but only if the resources exist to do so. Only the best-capitalized businesses will be able to embark on a remodeling project now, but if you can move up the date, it’s worth doing while your dining room or bricks-and-mortar location is closed. Of course, such initiatives can still be hindered by government directives that limit non-essential work and will vary by municipality.
Reconnect
Communication matters more than ever. We may be keeping our distance physically, but we’ve never been more social. We have regular Zoom happy hours, and we can still call upon clients virtually on a regular basis. B2B companies will have closer relationships since they sell directly to their clients, but B2C companies shouldn’t go quiet either. They need to reach out every few days, so long as they are mindful in tone and content.
On an April 8 webinar sponsored by Valassis and featuring data from Technomic, they suggested:
Source: Valassis
If you can maintain communication with your customers through advertising, social channels, and email, do it. You must be mindful of your tone and message, but the research of the past 93 years is clear – if you can maintain or increase your advertising during a downturn, especially when your competitors don’t, you will be rewarded with higher sales and market share during the recovery.
Step 3: PLAN NEXT
Opening Soon
Planning for the rebound sooner, rather than later, is critical. Those who wait for the rebound to begin will be late to the party. If you wait too long, you will likely lose market share to more aggressive competitors.
With what you’ve gleaned from studying your competitors and company in Step No. 1, above, it’s time to learn more about your customers as they exist today, to get an idea of what and who they may be in the future. The shifts in public policy, social interactions, virtual workspaces, and personal hygiene will likely be tectonic in scope. As a result, you need to understand how the shifts will affect your business and which ones you may be able to exploit.
Ways to learn about your customers now, so you can plan for the Next.
Google Analytics – Look for shifts in devices used, demographics, source of traffic, etc.
Email surveys – Query your customers about their lifestyle, media preferences, food choices, favorite foods, etc. as they were prior to the pandemic, and as they are now. Do a gap analysis to find opportunities.
Read – Information abounds online regarding perceived or guessed new behaviors by many sources. Pete Hayes, CMO, and Principal for Chief Outsiders outlined the basic steps to follow in his blog “COVID-19 Crisis – 12-step Pre-Recovery Checklist for CEO’s. Also, McKinsey & Company posted an opinion on how to prepare for the next stage of the crisis. Their opinion is deeply rooted in management consulting expertise and is more about preparation for the next stage of the crisis vs. recovery.
Regardless of your current posture on the COVID-19 pandemic, it is a certainty that the danger will eventually come to an end. Now is the time to be sharpening your pencils and honing your strategies so you can be ready for the next steps.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
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Maintaining advertising in a recession has been proven over time to increase market share and boost revenues over time.
In these uncertain times amidst the COVID-19 pandemic, there are likely two distinct pathways for businesses to follow — adapt or perish. Because none of you reading this would ever consider laying down your arms and not fighting for survival, I thought I’d share a couple of quotes from noteworthy types who chose the latter mindset, choosing to both adapt, and thrive, rather than survive.
“To improve is to change. To be perfect is to change often.” –Winston Churchill
“Skate to where the puck is going to be, not where it is.” – Wayne Gretsky
Of course, your survival instinct is just a starting point. What will it take to truly gird your organization for the post-pandemic economic recovery?
In this blog and the one to follow, I’d like to lay out some steps that might be worth taking. First, we’ll discuss why your advertising budget should be spared the ax. We’ll then discuss strategies to employ to prepare for an economic rebound.
Onward, ho!
Playing to Win the Ad Game
History is full of examples where businesses that maintained or increased advertising budgets during a recession were rewarded with more market share and higher sales and profits.
During the Great Depression, Post cereals reduced its advertising budget while Kellogg doubled its ad spend. The result? A catchy slogan — “Snap, Crackle and Pop” – for its new Rice Krispies cereal, and a 30 percent increase in post-depression profits. Oh, and they’ve been the market leader ever since.
During the 17-month recession in 1973 -75, Toyota maintained its ad spend and became the No. 1 import in 1976, surpassing Volkswagen.
In the 1990-91 recession, Taco Bell and Pizza Hut took advantage of McDonald’s decision to reduce its advertising spend. Pizza Hut sales increased 61 percent and Taco Bell,s jumped by 40 percent, while McDonald’s decreased 28%.
More than 40 studies over 93 years for Advertising in a Recession
In 2009, Gerard J. Tellis and Kethan Tellis compiled and synthesized 40 historical empirical and non-empirical studies on the topic of advertising in a recession. What they found was a healthy dose of evidence that advertising during a recession is a good thing. Several studies found clear evidence the reduced recessional ad spending led to lower post-recession sales; still, other studies found that the inverse – higher spend led to higher sales – was true. And, some studies actually found that market share can actually increase more for some companies during a recession than in stable times. The likely reason is a combination of lost share by competitors and the entry of new, more nimble firms into the post-depression marketplace.
Advertising Drives Word of Mouth
In another example, researchers looked at the lessons learned from the automotive and financial industries during the 2008-2009 depression. Brad Fey and David Shiffman concluded that:
Advertising plays a substantial role in driving positive word of mouth (WOM) for major brands.
Even during a major crisis, ad-driven WOM continues to be nearly as positive as during normal times.
Cutting back ad spend during a crisis diminished the impact of a valuable tool for offsetting negative news (though customer service, public relations, and social media also play a role).
From personal experience, I lived in the 2008-2010 recession. While a member of the executive team at Firehouse Subs, we used the downturn to reposition the brand and double our ad spend – actions that led to increased market share and exponential growth from 2010 to 2016, at a 20 percent year-over-year clip.
“The optimum response to the recession is to maintain, and ideally increase your advertising investment.
Unfortunately, to pull this off you require three things. You need to have some money available to spend on advertising. Then you need an executive team smart enough to know marketing is an investment or trusting enough to listen to your presentation that explains all of this to them. And, finally, you need to not be shit.”
How Does This Relate to Today?
Of course, we know that cash flow is critical, and maintaining ad spend during this crisis is easier said than done for many brands. But, if you have the ability to communicate with your customers through email/SMS text and other owned channels like social media, do it. As Fey and Shiffman learned from their work, the message is important, and this is the time to do all you can to maintain positive Word of Mouth with your customers.
If you are fortunate to have cash reserves and can maintain ad spend, especially by shifting to digital channels where “shelter in place” directives have increased usage, do it too.
Messaging Counts Too
Now, the message you convey during the COVID-19 crisis will vary slightly by industry. In some industries like restaurants and retail that are considered essential services, the advertising message could be similar to pre-COVID-19 messaging, since customers seem to be sympathetic to the struggles being experienced by their local merchants.
But striking the right balance is critical. If you are seen as putting profits before people, you may squander trust in a way that it cannot be recovered. A recent study by Edelman on brand trust confirmed this fact but also found that most brands are using their advertising powers for good rather that evil. Consumers in the survey responded as follows:
90 percent want brands to do everything they can to protect the well-being and financial security of their employees and suppliers, even if it means substantial financial losses until the pandemic ends.
89 percent believe brands should offer free or lower-priced products to health workers, people at high risk, and those whose jobs have been affected.
83 percent are seeking a compassionate connection, including brand messaging that communicates empathy and support with the struggles they face.
84 percent are turning to brand social channels to find a sense of community and offer support to those in need.
65 percent like hearing from brands they use about what they are doing in response to the pandemic because it is comforting and reassuring to them.
The takeaway?
Though it may be ok to advertise product or brand, as usual, it is advisable to change messaging, especially in owned channels like email, SMS/text, and social to a more humanistic tone and values.
“There is no doubt that the COVID-19 crisis is more than a recession. It is much worse and physical distancing is a demand killer. However, we at Edleman believe there will be much pent-up demand after the tide turns. American consumers like to be mobile, to eat out and spend money shopping. Don’t under-estimate the power of “Cabin Fever” and the “stir-craziness” for all Americans due to physical distancing.”
In our next blog, we’ll look at the importance of strategic go-to-market planning in being ready for the rebound.
Doug Reifschneider
Thank you for visiting our blog.
Jim Weber – Managing Partner, ITB Partners
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
The current COVID-19 crisis is already changing the economy in extraordinary and unexpected ways. But there are steps private equity firms can help their portfolio companies make to help weather the storm, and recover when the clouds lift, according to Doug Reifschneider, a CMO with Chief Outsiders.
The world’s best epidemiologists only have models to predict the full depth and breadth of the COVID-19 pandemic, but companies are already feeling the weight of the economic fallout. They’re scrambling to find the best way to respond, and in many cases, survive, all the while being rightly concerned for the health of their families and communities. It’s not easy, and this is no time to pretend otherwise.
Some enterprises might be dusting off contingency plans for downturns or large-scale threats, but this moment requires more than that. It demands a resiliency program, one that’s clear-eyed and proactive. If the outlook is too bleak or too rosy, the result can be the same dangerous inertia. But Doug Reifschneider, a CMO with Chief Outsiders, has a series of initiatives that can counter that.
Building off his extensive experience in the retail and restaurant industries, Reifschneider has devised what he calls the “7 Rs of Resiliency Programs.” It’s a checklist that can help frame and direct the efforts to respond to COVID-19. “It’s based on a mental framework from the US Marines that is centered on three steps in coping with a crisis: improvise, adapt and overcome,” says Reifschneider. “Plenty of people are improvising at this point, but it’s time to look at more constructive ways to adapt and plan for recovery.”
Private equity firms would do well to look within each company of their portfolio and help guide them in executing each one of these steps.
Review costs. “Most people are already doing this, as they’d have to be asleep at the wheel if they weren’t,” says Reifschneider. Still, beyond canceling recurring services that are simply irrelevant, like window washing, it can involve hard calls about labor and supplies. A lot of restaurants, retail brick & mortar and even brand HQ’s are furloughing employees and the current stimulus will help alleviate that pain, but those cuts need to be executed without crippling the resiliency program.
Reassign tasks. Sometimes the best thing a company can do is focus on what it can give back. In the short term, that can be repurposing the business for strictly philanthropic purposes. He cites one restaurant that used its parking lot for a Red Cross Blood Drive. “It doesn’t address the bottom line, but it establishes the business as a partner in the community,” says Reifschneider.
Rethink offerings. For restaurants that never considered takeout or delivery options, this is the time to launch those. For retailers, this can involve more online ordering and curbside pick-up. But creativity is key here. Brazilian steakhouse chain Fogo de Chao was centered around its all-you-can-eat in-house dining experience. “So they became a butcher shop, offering their unique cuts of meat so folks could cook them at home,” says Reifschneider. “It’s a savvy way to redeploy inventory and keep sales from cratering completely.”
Another example is the company Wow Bao, that created a special licensing deal to allow other restaurants to produce and sell its dumplings by selling the ingredients and a few pieces of equipment to do so.
Reconsider sacred cows. As businesses rethink their offerings, they can run smack into certain “sacred cows” that seem to be integral to their identity. That high-end eatery may balk at delivery options since that fish dish might be ruined in the thirty or forty-five minutes it takes to deliver it. “This is no time for those kinds of pretensions,” warns Reifschneider. “Find a way to make a meal pack, which are popular now, or focus on offerings that can be delivered successfully.” Several restaurants have created pop-up drive-throughs, with no more than a tent and a landlord’s blessing. And the likes of Home Depot have shifted to curbside pick-ups even as it prided itself on counseling customers in the store.
Reschedule Initiatives. Retailers and restaurants that had planned remodeling projects could move those up, but only if they have the resources to do so. “It would take only the best-capitalized businesses to embark on such remodeling projects, but if they can, it’s worth doing,” says Reifschneider. “Instead of closing for that week in August to remodel, do that now.” Of course, such initiatives can still be hindered by government directives that limit non-essential work.
Reconnect. Communication matters more than ever. “We may be keeping our distance physically, but we’ve never been more social,” says Reifschneider. “We have regular Zoom happy hours and contact clients regularly.” B2B companies will have closer relationships since they sell directly to their clients, but B2C companies shouldn’t go quiet either. They need to reach out every few days, so long as they are mindful of tone and content.
Reifschneider cites a recent study by Edelman that surveyed over 12,000 people across 12 countries on brand trust in the wake of COVID-19, which finds that 71% of respondents would lose trust in a company forever if that company is seen as putting profits before people right now.
“Every enterprise should take that 71% seriously, and make sure their communications are exclusively about how they’re helping their communities, their customers and their employees cope with the situation,” says Reifschneider. “Striking a tone of generosity and support is crucial.”
Ready the relaunch. There is no reliable guidance for when any company will return to normalcy. However, Reifschneider notes this shouldn’t prevent companies from planning the steps for a reopening. Employees will need to be retrained with new procedures for interacting with customers, and in the restaurant business, there are likely to be new protocols for food prep and increased sanitation. Dining rooms and showroom floors will get dusty during the shutdown, so time needs to be allocated for a deep clean. “This also might be a great time to retrain employees in customer service, stocking shelves, or getting CPUs in line,” says Reifschneider.
However, no one should take any of these steps in a vacuum. Each needs to be tailored to the market reality facing a given enterprise. “At Chief Outsiders, we vet all assumptions, with hands-on research initiatives that capture how customers and peers are thinking and acting,” says Reifschneider. “And we do this even when the market is stable and growing, let alone during a crisis that can change everything overnight.”
So perhaps the first step in any resiliency plan is for a business to get its bearings, and understand exactly where it stands at the moment. It might be all the more important to listen before speaking, to ask, and use that feedback to gauge what to do next. The best private equity firms will already have open channels with their portfolio companies and that level of candor and sense of collaboration should be extended to all stakeholders.
In times like this, humility might be a secret weapon, provided it doesn’t stop a company from acting. Fortune may still favor the bold in times like these, but only if the bold is informed and willing to help.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Loyalty, not such a long time ago, was a fairly easy thing to cultivate. You give a punch card or green stamps (or even wooden “round-tuits,” some of you may recall) to your customers, and they reward you with frequent visits or purchases so they can earn the points or badges to pocket free stuff.
Even today, as businesses like restaurants, retail stores, airlines, and hotels work to digitize and mobilize loyalty programs, customers still find it exciting and compelling to rack up the rewards.
But a funny thing happened on the way to the bank—loyalty, it seems, can be a fairly fickle concept—and even with the ease of participating in today’s e-programs, they don’t seem to be creating the brand affinity and “stickiness” that companies crave.
In fact, a third of customers will vote with their feet after a single instance of poor customer service, according to one survey. Keep ‘em happy, however – with outstanding personal service, great products, and minimal gimmickry—and you have an 80 percent chance of cementing that loyalty.
The message here: Being loyal to your customers, in today’s uber-competitive landscape, is as critical—if not more so—as customers being loyal to you.
If it seems like the script has been flipped, you’re right. In the days of Loyalty 1.0, those green stamps paved a one-way street of loyalty, from consumer to company. But now, in the world of Loyalty 1.5, with the ability to gain insights through apps, clicks, interactions, and views, it’s easier than ever to open a reverse lane of loyalty traffic from the company, right back to the customer.
So, let’s step back for a moment and think about what we really want to do. How do we tool our loyalty programs to demonstrate our love of, and affinity for, our consuming public? And, in particular, how do we replicate this online, without the benefit of the human interaction that comes with bricks-and-mortar businesses?
How to be loyal to your guests
Here’s an example using a counter service fast-casual restaurant concept.
Imagine if you will, striding into a local fast-casual restaurant near your office. You’ve been in about once per week for the last two months because it is close, and you like the food. You decide you’re in the mood for their grub again for lunch, so you cross the street, walk in the door, and take your place in line.
As you wait, you look at the menu and think about the meeting you just departed. Now, you approach your cashier, Susan (you know because of her name tag) and she looks up and says, “Hi, Mr. Smith! Great to see you. Would you like the usual today?” You are shocked she knows your name and are impressed she knows your usual order. You reply, “Yes, please,” and add a drink. Susan goes on to say, “Mr. Smith, you’ve been in a lot recently and we love serving you. Lunch is on us today!”
In this scenario, it’s easy to see why you would be floored. Susan not only knew your name, but she comped your meal too. The rest of the experience is equally as stellar (clean restrooms, a spotless restaurant, a follow-up visit from the manager) and you return to the office and tell six of your co-workers. The restaurant was loyal to you — which created an emotional bond, and the intensification of your love for that restaurant brand.
Loyalty 1.0 and 1.5 promised the ability to scale loyalty, and in most cases it did. But to add personalized messaging – like that offered by the restaurant chain — and to attempt to be loyal to your guests on this type of grand scale, takes time and a mastery of technology. Is your company up to the challenge?
If you’ve been around for awhile, perhaps you felt a little déjà vu when you heard loyalty platforms would save your team time?
Many years ago in a galaxy far, far away, a similar promise was made…
The Machine of The Year – 1982
At the dawn of personal computing, and before PCs and laptops became ubiquitous, we were promised that these gizmos were going to make our lives easier and give us more time to enjoy life.
The impact of the Apple II and the IBM PC was fully demonstrated when Time magazine named the home computer the “Person” of the Year for 1982. It was the first time in the history of the venerable publication that an inanimate object was bestowed with this award.
An excerpt from an accompanying article, “A New World of Dreams,” painted a rosy picture of a promised future:
“…Point is, it will save you time. Time time time. And we need all the time we can save. Can’t kill time without injuring eternity. Thoreau said that. Great American, Thoreau.
You say: Why should I want to save time? I hear you, friend. I hear you. You wonder where it gets you, saving all that time when you think about old Henry Ford’s gizmo that was supposed to save a peck of time. Only instead of conquering the open road, we wound up living on it. You’ve got a point. You a college boy? But this is the country of the A-bomb and the zipper. We always save time, good and bad. Tempus fugit. Time is money. Most of all, time is dreams. And computers give you time for dreams.”
Loyalty 2.0
So, how do we upgrade to Loyalty 2.0? How do we blend all that we have learned to produce a loyalty relationship with our clients that is as strong as the one we wish them to have with us? A good starting point is to replicate the 1-to-1 experience – with as much richness as we can – in the digital universe.
For a Loyalty 2.0 program to succeed, it needs to have a few of the following features:
Social media integration
Detailed analytics
Targeted email marketing
Targeted text message marketing
Smartphone integration and an app
Software that’s integrated with POS
Segmentation tools
Campaign tools
Customer recognition
Loyalty automation
The last four points are the most important. Most Loyalty 1.5 platforms lacked automated campaign and segmentation tools. Or, took too much time and effort from your teams to create the kind of personal connections we are advocating for now.
To get your company on track quickly, you might consider a provider like Punchh, LevelUp, Paytronix, and others that live in the Loyalty 2.0 space.
All of these are vendors that are purely focused on the B2C experience. They are dedicated to providing clients with a mobile-first strategy. It makes it easy to analyze customer behavior, generate insights, and develop sophisticated marketing automation. And it makes customized campaigns and promotions possible. Most offer deep integrations with leading eCommerce/online ordering, POS, and payment providers. All that provides marketers with a single view of the customer for omnichannel engagement across physical retail and digital channels.
Are you ready to take a leap forward into the world of two-way loyalty? By adopting a Loyalty 2.0 mindset, you will find it easier to be loyal to your customers. However, you’ll still need to commit corporate resources to execute with success if your customers are to feel the love.
Doug Reifschneider
Doug Reifschneider is a dynamic results-oriented, data-driven professional, Douglas drives nationwide growth through the creation and delivery of unique, creative brand strategies enhancing customer affinity and market position. With 25+ years of executive marketing experience, he strengthens brand equity with resonating positioning strategies. He uses successful marketing programs and innovative marketing campaigns that boost revenues. An innovative leader with strong team-building and collaboration skills, his strategic initiatives generate substantial shareholder and franchisee value and open new revenue opportunities.
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Susan Knox of Corporate Connections is a tenth generation Georgian, with an exceptional reputation and network. I am so pleased to have her on the ITB Partners Team as her business is unique and her personal story is compelling. In fact, I thought you would find her story so interesting, I convinced her to sit for an interview. This is the fourth and final installment of our discussion.
Jim:“What do you recommend keeping one’s network alive and active?”
Susan: “I say to make a list of people in your network. People you know from the PTA, your CPA, your Lawyer, someone in the church, your neighbor, or your kid’s baseball coach/parents. Literally, anywhere you have relationships, make a list of them. Include people that you know who are either influencers or high-profile people who are actively networking.
“One of the biggest deals I ever got was from a dentist. I went to a new dentist and he asked me what I did. I told him that I connected companies with capital. His next patient told him that he had started a new company and that he was looking for money. The dentist made the connection and I landed a great deal. It’s because I visited him (dentist) and told him about my business. You would be amazed where new deals and new clients, or new employees can come from.”
Jim: “Absolutely. As I tell folks, Executive Search is like pure marketing, as everyone I talk with is either a potential client, a potential candidate, or a referral source to a potential client or candidate.”
Susan: “That is so true! ”
Susan went on to say that it is important to “say yes to new networking opportunities.” She said that to build your reputation as an influencer you must be visible so people will include you in their events. She mentioned that she attends seminars and summits, not so much for the value of the content, but to meet the people that attend those events.
Jim: “What is the next thing you see for Corporate Connections?”
Susan: “Okay! Great Question.
“At the moment I am overwhelmed with new clients, and I am so grateful for that. But I think I need to start conducting professionalism workshops. Because, as you said, people often don’t know what they don’t know. A lot of them grew up behind a (computer) screen and they don’t know the social graces. They don’t know how to shake someone’s hand, to look them in the eye, or how to dress. I tell people that you are the CEO of your life. You are your brand, regardless of where you are. So, you had better protect it (your brand). You must know what you are doing. “
Jim: “Yes, if you step it up, and wear a jacket you can stand out.”
Susan: “I remember a time when I represented a Wealth Management Firm. The Managing Partner asked if I would talk to one of the younger guys, a real ‘up-and-comer.’ He was a runner and wore a sports watch. The Managing Partner wanted him to wear a dress watch. Another situation was with a female who wore (gaudy) colored nail polish. I helped them learn the value of proper attire and etiquette. I tell people, ‘when you walk into a room, you notice people who are very well-dressed and put together. They just stand out.’ People are attracted to successful-looking people.”
“I say the more high-tech we go, the more ‘old school’ I get. People really appreciate a handwritten note or a phone call. I have started working very hard to have more personal connections. But you know, Jim, I’ve always been about my clients and my members. I have focused on helping my clients with their social media, but not for mine (social media). I can use social media to showcase the value of my network. Going forward I aim to be more visible on LinkedIn.”
Jim: “Thank you so much, Susan!”
Susan: “Oh, thank you! It was fun.”
Thank you for visiting our blog.
Jim Weber – Managing Partner, ITB Partners
Jim Weber – Managing Partner, ITB Partners
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The NFL sent this football to every high school in America where one of their former students had played in a Super Bowl. I was privileged to receive a phone call from the principal of Hardaway High School, Matt Bell letting me know he had just received this from the NFL. I was not aware the NFL was doing that. This was sent prior to Super Bowl L (50).
Each year, following Super Bowl XIII (13), I reflect on my experience of the game and how much my life has changed over the years. Yes, they are getting ready to play Super Bowl LIV (54). I do not even like to do that math anymore, 54-13= “I cannot remember”. It is better looking at it in Roman numerals rather than years…..
I now look at the Super Bowl more like an out of body experience, almost not believing I got to play in a Super Bowl game.
Inevitably, my mind always moves back to the business of the game, the financial impact the game has on the city where each Super Bowl is hosted and more importantly the Super Bowl commercials.
No one cared much about Super Bowl commercials in those early years. The cost for a 30-second ad in Super Bowl I was $37,500 dollars. In Super Bowl XIII, it was $185,000. Today, it is $5,600,000 which is not that much money if you say it fast as my father used to say.
This is a pretty good investment of money for 30 seconds of airtime. Speaking of saying it quickly, that is only $186,000 per second.
The interesting thing about this is that is just the cost of air time. That does not include the cost of production of the commercial itself, which could be a million or more dollars. Now, you are talking about serious money for getting your message to an audience of more than 115 million people.
Fox Sports and the Fox Brand will make a significant haul this weekend. The final estimates are close to $550 million dollars in pre-game, during the game and post-game commercials.
The game is always the draw for the fans and sponsors. The halftime show is now an ‘over-the-top’ experience each year because each entertainer or entertainers wants this to be a statement for themselves. Justin Timberlake and Janet Jackson made a statement a few years ago that everyone still talks about.
The commercials are a show in itself. Every company that buys an ad is making its own statement. A statement about their product they are promoting but also how the company can connect with the audience. The number one commercial is the Mean Joe Green commercial, which we all remember that is was a Coca Cola ad featuring one of the toughest football players with a young fan when the fan offered Mean Joe Green his Coca Cola in one of those twelve-ounce bottles. Mean Joe turned it down as he was limping to the locker room. The fan was persistent and Mean Joe finally took his offer and swallowed the entire bottle in one swig. As the fan turned away, Mean Joe turned around and said. hey kid, here catch”, offering his game-worn Pittsburgh Steelers jersey. The kid was elated. That commercial was aired in the 1980 Super Bowl and it is still the number one commercial.
There have been plenty of bad commercials as well. The worst and I would bet no one reading this will remember it. But, Nationwide, a company and brand that hardly ever makes a mistake made a big blunder with this one. Nationwide showed a child, that had died, promoting their life insurance, that this child would not get to experience the Super Bowl or anything else because of his premature death. The commercial bombed and Nationwide apologized to the world for its’ mistake.
The interesting about each Super Bowl game, halftime and commercials is the experience and for those whose team is in the game, they remember every element. For the average fan, which I am today, is more about the entertaining element. I always watch the commercials because of the advertising value and the education I receive as I analyze each commercial.
My question to each company, each CEO, every salesperson, and even every CFO is this. What is your Super Bowl commercial? More importantly, what is the value of your Super Bowl ad?
Almost every time I ask someone about their Super Bowl commercial, I am immediately met with the response, “oh, you mean my elevator pitch”. NO, I am not talking about that. An elevator pitch is 30 – 45 seconds as you ride up an elevator or at a bar or cocktail party. An elevator pitch needs to be a quick intro of you, the name of your company, and the product you sell and a one-sentence statement about something unique about you, your company or your product. Nothing more. The next statement out of your mouth needs to be, ” and how about you?’. This does not matter if you are Ain an elevator, a bar trying to score points or at a cocktail party where very few people really care who you are or what you do. Am I right?
No, your Super Bowl commercial is much different than that. Here is the best news of all. When you ask a prospect to lunch, have a 30-minute meeting scheduled or even a scheduled introductory call, you have about five minutes to get your guest to engage or the worst fear of all is to have your guest, also known as your next best prospect, check out of the conversation. We all know when it happens.
I once had a competitor come up to me at a cocktail party, he was trying to make a point and try and shame me, and make a bold statement in front of a few of his friends. He said, “I bet that ring, pointing to my Dallas Cowboys Super Bowl XIII NFC Championship ring, gets you in a lot of doors. I quickly said, to his embarrassment, You know, John, you are right. It has gotten me in a few doors. But, you know what else, it has not kept me in a single one”. He quickly departed because he knew I had kicked his butt on a few deals he desperately needed.
What did I mean by that? I was referring to my Super Bowl commercial. Yes, I have guys and gals ask me about my sports background. The people who know me also know I do not wear that on my sleeve or speak about it unless asked. After the normal pleasantries. your guest, also known as a prospect, is more interested in how you can help them or their company. Everything else is a waste of time.
My Super Bowl commercial is always about three to five minutes long, well written, practiced over and over, and delivered as if I was on TV in front of a national audience. The best news of all is that it does not cost me millions to prepare, nor millions more to air on TV. This is my story, my moment to share this story and a very short attention span of my guest or prospect.
Please do not think of this as an elevator pitch.
This is also what you want to use during a job interview, an approach to the opposite sex, your boss asking for your next raise or for the guys when you ask your potential father in law for his daughter’s hand in marriage.
Let me say this could be construed as a “sales pitch”. Yes, it could be that. But, I believe it is much more than that. For the CEO, who may read this, this is something every single person in the company should be able to state when they are out in the public eye. I believe that every person, employed by a company, represents that company no matter if they are at a cocktail party, at a sports game, other social events or even a family reunion.
As you watch the game this weekend, it will be a great game, enjoy all the three elements of the day. The game, halftime and the commercials. Especially the commercials. Put yourself in the shoes of the executive and the creative staff that is anxiously waiting for their commercial to air. Will it one a hit? Will it bomb? Will they remember which company made the ad? Will it generate more sales. An investment of $7 million dollars to tell the world who you are or why your company is the bomb, your job could be on the line.
More importantly, when you call in sick on Monday, more than 1.5 million of us will, sit down and write out your Super Bowl commercial. It will not cost you seven million. But, it could make you seven million. The next job, the next few sales or even the next promotion could earn you millions. It has worked for me.
Let me conclude that putting together a Super Bowl commercial, that becomes a game-changer for a company, is hard work. So it will be to create your Super Bowl commercial. You may do this for you personally, your company to use for every salesperson or every employee as they represent you in the public square. Mr. or Ms. CEO. every person in your company is in sales whether you now or even believe it.
If you would like help in creating your Super Bowl commercial, send me a note. You can reach me at robert@mympb.com. I teach people how to fish, so they are fed for life. If you want to join our team send me a note as well. If you are a CEO and want to learn how to get your entire team to act as a part of your sales team, I would be happy to have a call as well. Life is fun. Learn to enjoy the journey.
Robert H Steele
Robert Steele has 40 years of Insurance, Employee Benefits, Healthcare, and Technology experience as a sales and marketing executive. Robert’s biggest asset is his ability to take companies in transition and turn them around when sales, marketing or product development was causing financial or operational bottlenecks.
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It was a very good week. In addition to several client meetings and great interviews with candidates for my COO search; I talked with a few of our consultants and a prospective new member. One of those meetings included a fine cigar and a Guinness. My favorite way to work! I ended the week sharing a bottle of Cabernet with my friend and muse, Faith. More on that later.
My meeting with the prospective new consultant was most instructive. She has an interesting background that includes Fortune 500 experience and tenure as the CEO of her family’s business. Her experience and insight into a family-owned, small-business are valuable to clients operating in a similar environment. I enjoy these meetings as they are fun and enlightening. I enjoy hearing about one’s career and challenges in building a new business. I find it interesting learning how they market their services. Each has a story worth sharing, which could enhance their personal brands. I believe that business development requires a combination of strategic networking, public speaking, and writing articles or blog posts. The point is, we must find ways to leverage our time and resources by talking to a broader audience. By reaching a broader audience, I mean mass communication.
Most people I know are competent at networking and public speaking. A few are even positive toward writing articles. They understand the value of a program that helps promote their written work over an array of platforms. Even so, I’ve been surprised to find that most are reticent about writing articles for publication. Their reluctance is of interest to me as these are solid professionals who know how to write for business. They know how to draft a proposal. They know how to structure a cover letter to support their job search. Their writing skills are not an issue. So, why are so many people reluctant to publish their thoughts?
Back to Faith and that bottle of Cabernet. We get together every few weeks at a favorite watering hole to catch up and decompress. Talking with Faith is always interesting and stimulating. Our conversations are wide-ranging but always begin with a recap of the current week. Often, she helps me determine the theme for my weekly blog post. This week, Faith shared a few interesting stories I thought a broader audience would appreciate. I am convinced her stories will resonate with many as they’re about working for an NFL legend. I told her she should write a book. She demurred. I said she should do it for her family. If for no other reason, it would help her daughter and grandchildren appreciate her life. Faith agreed to think about it. After sleeping on our conversation, I woke up with the topic for this week’s post. Thank you, Faith!
We are busy people. I get it! Writing an article, even seven hundred and fifty words can be daunting. Some cannot justify the effort. However, I know that writing an interesting article in a reasonable amount of time is a process. Experience with this process generates confidence which changes one’s perspective, creating a new habit.
For Members who are reticent about contributing to our blog page, we provide alternatives like conducting an interview with the consultant or working on an article together including final edits. Most people are comfortable with these alternatives as they’re a lighter load. This makes me think that helping people become comfortable as a writer, could be as easy as following a two or three-step process to gain confidence. The benefits of one’s business development activities are too great to forego the power of writing.
After sleeping on it, I arrived at an alternative which Faith might appreciate. I could make video recordings of her telling her life stories. Recording her while enjoying a glass of wine, or two might add an interesting touch. I know it would be more fun for her. We could create a digital book. In time, I’ll wager that she will migrate toward writing that book. Even if she didn’t publish her work, it would be a very valuable gift for her children.
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It was my kind of week! I was busy, but I enjoyed a lot of variety and entertainment. I had a productive meeting with one of my consultants, Paul, over cigars and brews; a conference call with my Latin America Managing Director; coffee meetings with two prospective new consultants; and a luncheon meeting with a potential client. I even had time to complete a few administrative tasks and worked on strategic issues. My visit with Paul took an unexpected turn (it became even better) when Jeff, an alumni buddy joined us at the bar. What a lucky break! I couldn’t have been happier to see him. Jeff is a master licensee developing a non-food franchise concept in the state of Florida. He is an excellent connection for Paul, given that Paul is selling an integrated project management software package for franchisers. It was great to catch up with Jeff, and even better because Paul was able to make an excellent new connection. Connecting great people is my favorite part of work.
The highlight of the week was meeting with my turnaround client to discuss the next phase of our work. The first item of discussion was her update on the remaining contract in Florida. She told me she had successfully ended that contract and helped her employees land jobs with the new contractor. She said that she secured the equipment and supplies at a Lakeland, Florida-based storage facility. She went on to say that she plans to move this equipment to Atlanta when she finds an appropriate local storage facility. This last point gave us an excellent opportunity to talk about coordinating Strategy with operations. I reminded her that the equipment left in Florida was purchased to support her employees. And, she has no further need for that equipment as she will be using subcontractors going forward. I applauded her for successfully extricating herself from her expiring contract. However, I advised her not to spend anything further on that equipment except as required for its sale. She took my recommendation to heart and will work with her attorney to ensure compliance with the bankruptcy court to dispose of that equipment. Resolving that issue, we moved on.
The first phase of this assignment resulted in clarification around my client’s business strategy going forward. Now, the client will use subcontractors to execute her contracts, to minimize her reliance on full-time equivalents. Making this change will increase margins, reduce risk, and result in the more effective use of her time. The client also agreed to move away from the public sector (State and Local Government Accounts) to focus on the private sector, both business-to-business and the consumer market. The next phase of my work is to rebuild the client’s business development function. This change in strategy requires an updated positioning statement and value proposition, key tools for generating new business. My responsibility is to help her grow the business through new channels, promoting existing products and services.
Key Deliverables for Phase 2:
Update Positioning Statement and Value Proposition
Update Promotional Material to Reflect New Strategy
Develop Ongoing Communications Forward/Public Relations Effort Via Email and Social Media
Update Online Presence i.e. LinkedIn and Company Website
Evaluate and Present Options to Employ a Service to Schedule Sales Calls
During our meeting, we discussed the importance of leveraging our efforts to ensure that we are generating the maximum benefit for the time allotted to that effort. We discussed following the Pareto Principle to guide our work. In other words, to concentrate on the 20% of the activity that generates 80% of the output. To transition out of Chapter 11, one cannot waste their time. My client must ensure that she is getting the maximum payback from her work.
Josh Sweeney Presentation on Culture First Hiring
One of the most significant benefits provided by outside consultants is to use us as sounding boards to work through issues big and small. As we have vast experience in various situations, we help our clients make sound decisions in real-time. For questions requiring further consideration, we understand the analysis needed to find the answers. The most important benefit we pass along may be our knowledge of the fundamental principles for setting priorities and managing time.
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