Touch Points

Can You Fog A Mirror When It Comes To Advertising?

Ten Most Common Mistakes of Advertising Made By New Businesses

(and oft’ times old ones too)

When you came in to work today, did you just about die when you had to make a decision on your advertising? If you didn’t recoil into a fetal position and your brain’s neurons actually fired up, on what did you base your decision? Gut feel?

Here are the most common advertising mistakes made by new businesses everywhere. I hope you don’t find yourself making these when you are launching your business and I especially hope you’re not making them if you’re one of the old dogs. I don’t mean to belittle your decision-making, but I see it every day and it causes me pain every time.

1. Expecting to open the door and have everybody beat a path to it

When you start a new business you are totally consumed with it.  You can think of nothing else, and that feeling of total absorption rules how you think about your business and how you think others feel about it too. It is natural for you to think that everyone interested in what you offer will flock to your store like sheep being herded by a border collie. Sorry to break it to you, but that won’t happen. The sooner you understand this, the better off you will be. I deal with many well-known, well-established companies who still are amazed by the number of people in their trading area who don’t even know they exist let alone have ever shopped there. Hard to believe, but true.

2. Not making any room in your budget for advertising.

“I’ll advertise when I get more established and get some money coming in.” I can’t tell you how many times I have heard that. What usually happens is the money NEVER comes in and the business is always behind, so they never get to any promotion until they advertise their closing-out sale. One prime form of advertising is your location. Sometimes, an outstanding geographic location of your shop doesn’t even need much more advertising than eye-popping signage. However the less appealing your business’s location, the more you need to spend on alternate forms of advertising. Budget for it.

3. Not fully utilizing your available signage.

Your easiest and cheapest form of advertising will almost always be your signage. Nothing stimulates the purchasing power of the shopping public more than windows covered with a big sign saying “Opening Soon.” Capitalize on your location and the traffic (pedestrian and vehicular) with a sign or signs that stand out from the rest of the business signs around you. Don’t allow a graphic designer to create just another sign that fits in with all the rest; be bold, creative, different - but above all, make sure you do it right. The number of new businesses that skimp on signage is almost endless. A cheap, ill-conceived sign tells the world you really aren’t ready to play on the same turf as your competitors. Who intuitively knows that? Your potential customers. And guess who won’t shop your store because of it? Those same potential customers. They write you off without even giving you a chance.

4. Expecting instant results

Think of advertising your new business much like a farmer thinks of a seed. You plant it in the minds of your potential customers and like a farmer, nurture it and allow it to grow. Farmers do not expect seeds to germinate and grow to a mature crop instantly, why do you with your advertising?  The deeper the commitment to allow the advertising seed to grow, the better you will fare in the long run. Advertising takes a long time to grow, give yourself time to reap the harvest.

5. Not having a strategy for advertising.

You should know exactly why you are advertising, what the core value of your business is and how to communicate it. If you allow an advertising rep to convince you that some goofy, wacky, far-out ad is the way to attract the attention of the consumer, then your ad campaign will never truly reflect your business unless you are goofy, wacky and far-out. Plan your ad strategy with the attention to detail that you used when you planned your business.

6. Using Hype instead of Truth  

Today’s consumer is so sick of hype that they immediately discount it and often ignore it. Think of your own case, when you see SALE - UP TO 75% OFF, what is your immediate reaction? Are you like most of us who say, “Oh sure, they’ll have a few items at 75% off, but not many”? You have discounted the hype in your mind. Instead, truth will set you free, but it must be delivered in a manner that peels back the layers of truth like layers of skin on an onion, exposed for all to see.

7. Not fully utilizing your website.

Many new businesses think of a website as an add-on to come later, but for many, a website creates an initial link to the customer who wants to do some research before visiting your store or service. The business owner who says, “If I can just talk to a prospect, then I can convince them to buy my product” misses the fact that there are a variety of personality types among prospects. Many would rather die than subject themselves to a sales pitch. They want to do their homework before they open your door - and open their wallets! Give these methodical types the option of learning about your business from your well-constructed website and watch your sales climb.

Create a website for those who like to be prepared before they make a decision, tell one story, and make it uniquely yours.

8. Trying to be all things to all people.

It depends on what your business is, but more often than not, a new business tries to be all things to all people and ends up not being anything to anyone. Make the choice of what your business stands for and put all of your weight behind it. Think of your business as the horn of a rhinoceros; with the full weight of the beast behind it, it can crash through walls. Plan your ads accordingly; tell the one story that is uniquely yours and tell it over and over again.

9. Settling for advertising that looks and sounds like others.

How can people be interested and excited about your advertising if it sounds and/or looks the same as most others - read: boring? The saying, “Imitation is the sincerest form of flattery” is absolute hogwash when it comes to advertising. Your goal is to be fresh, new and exciting. Lead the way with something non-conformist and gage the reaction. Even when reaction is strong, you must remember there will most likely be negative as well as positive reactions...and that’s a good thing. Roy H. Williams says in his book The Wizard of Ads, “ The risk of insult is the price of clarity.” There can be no strong positive reaction unless there is a strong negative reaction. Be prepared for it and rejoice when it happens. 

            10. Not using a business mentor.

You’ve just opened your new business or are just about to. Get ready to make a blunder of some sort. You are going to make some bone-headed decisions in the next little while that you will look back on in the years to come and say, “What was I thinking?” We all do it, it’s inevitable, get over it. A wise person once said, “Anything worth doing well is worth doing badly at first until you get it right.”

But…one way to navigate through this numbskull period is to find a wise person who has already made those mistakes. A smart person (you) then learns from these mentors how to avoid making those mistakes altogether. 

If you are embarking on a new enterprise, congratulations! You are joining a business sector that generates a significant portion of the Gross Domestic Product of this country – the small business.  I encourage you to be one of the entrepreneurs that does it right. Get the answers before you begin, not after you’ve launched and wasted your precious time and money.

Cheers

Steve Rae

steverae@cjcsradio.com

The Meek Will Not Inherit The Earth

Watch the video of this post by clicking below.

Much is being bandied about regarding the economy.  Some is real, some is pure bs and fear mongering.  There are ways to make money in an economic downturn, but bet the farm that being meek isn’t one of them.

What would the meek typically do? To trim expenses they would cancel their advertising because they have so many loyal customers.  But even loyal customers tend to slow down their buying when not constantly invited to.  It’s not that they don’t remain loyal, it’s that they get out of the habit.

A great example of that comes from a car wash that used to deal with us. Business was great and they were very successful. But success has its own disadvantages. After a while they forget who it was helped them achieve the level of success they were enjoying and they begin to believe that it was all because of them. It’s the arrogance of some successful businesses that we have to deal with.

The car wash owner’s daughter graduated from college with a marketing degree and they promptly fired us from doing their advertising. This is not uncommon, but the result is almost always the same. The marketing grad decides to stamp their own imprint on the advertising and not put all their eggs in one basket. So they cut back on radio, add a little newspaper, try some direct mail and begin to wander aimlessly like a nomad in the desert.

After a year or so, they call to re-hire us because although they haven’t lost any customers, their business is down and they can’t figure out why.

It’s pretty simple, because the car wash folks stopped inviting the loyal customers to keep their cars clean and making it a point of pride, the customers slowed down their use of the car wash. It’s not that they stopped going, but instead of every two weeks, they maybe only went every three or four weeks.  Voila, business down without losing any customers.

But what a great opportunity for anyone who’s competitors are among the meek. Now is the perfect time to buy more market share. In fact you may never get another opportunity like this until the next economic downturn.

So what do you do?

  -Increase your advertising right now on an intrusive media like Radio or TV

-Refine your message to attract new consumers to your business

-Strengthen your offer

-Don’t be afraid to offend, “The risk of insult is the price of clarity.”* Roy H. Williams

-Stay the course

What will the results look like if you adhere to this plan during this economic slowdown? You’ll probably see growth slow down or even stop altogether. You’ll be working harder to make the same money you did in the past few years.  You’ll meet more new tire kickers than ever before. You’ll feel that what you’re doing is not working. You’ll want to quit the plan because this ad guy who convinced you to do it must be mad.

What will results look like if you adhere to the plan after the slowdown? If you are prepared with the right staff and inventory, you will see the largest growth ever in your business because as the economy recovers the amount of business being conducted increases and because you own much more market share than before, your business will boom.

So it’s time to show your true mettle. Are you a strong confident leader in your industry or a wimpy wannabee? The Meek will not inherit the earth.  But will you?

Cheers

Steve Rae

View Video

The Meek Will Not Inherit The Earth - 3 from Steve Rae on Vimeo.

A Slowdown or a Shutdown

Do you want to sell me something or not?

In this land of so called economic slowdown, I think one of the main culprits may be the apathy of retail salespeople.

My wife and I want to purchase a compact sized washer and dryer for our cottage. We’d love to put in a full sized set, but there isn’t the space. You’d think that we were lepers or something. We’re willing to spend whatever it takes to get the best we can find which is probably about $2000 but we can’t find anyone who is deserving to take our money.

We have been to 4 stores so far, 5 if you count the store that was a minute or two from closing time and the sales lady said to my wife “We’re closed.” When asked if she could answer a quick question the sales lady said, “What about?” “Compact washers and dryers.” “No” she said and SHOOED my wife out the door. Whenever we mention that we need a compact set, the look of abject disappointment from every sales rep is palpable. Not one of them has questioned us about why, about our requirements, the reasoning behind our motivation or anything at all.

We have been the recipients of the half-hearted, “They’re over there.” Or when led to the machines on display, “Here they are, I guess they work okay.” No product knowledge, no evidence of anything resembling a pulse from any sales person.

What gives?

We feel like we’ve been shutdown by these salespeople but I’ll be damned if I’m going to reward some lazy ass slob with the commission on $2000. I can’t be the only person in the world who feels this.

So, if you are in the retail business and you catch yourself or one of your sales staff treating customers with the kind of apathy we’ve been treated to, slap yourself (or because I’m not condoning violence, figuratively speaking, your staff) and stop complaining about how bad business is. If you can’t shake yourself or your staff out of this funk, there is a remedy in the name of Steve Clark of New School Selling. He writes: “During the economic boom of the nineties, business was easy and few salespeople were really “put to the test.” Because the nineties were one of the most prosperous decades in our history most salespeople that have less than ten years experience have never experienced selling in a recession.”

You have a great opportunity ahead of you, go ahead and grasp it simply by showing you care.

Cheers

Steve

Good Ole Vess

One of the most interesting characters you’re ever likely to meet at Wizard Academy in Austin Texas is Vess Barnes. He was the one who once drove his old Corvette from his home in Amarillo Texas to Austin for a class and encountered a few problems on the drive down, so on a break from class Vess disappears for a couple of hours. He shows up later with a brand new ‘Vette, kind of a spur of the moment thing. He later told me that within two months he had to replace all the tires due to excessive wear. He likes to go fast, very fast! Vess Barnes says hello.

Just Imagine The Savings! Specificity is a Good Thing.

In our part of the world, the water is hard with lots of minerals so water softeners are commonly found in houses. They cost a couple of hundred bucks, sit in the basement, every couple of months you fill them with salt and mostly you forget about them. The only reason you remember to fill the salt barrel is because the drinking glasses start coming out of the dishwasher spotted and dirty. I tell you this to give you some background on an ad that I heard on the radio that really got me thinking.

The guy in the ad started explaining their new water softening system doesn’t use electricity to soften the water, it’s just a flow through system yada, yada, yada. Then he says, "JUST IMAGINE THE SAVINGS." I about fell off my chair.

Wow! Could I save enough to take my family on that long dreamed of Mediterranean cruise? Or maybe pay off my new car? Or maybe I could save enough to pay for a building to be built in my name at the Wizard Academy. I’m getting really excited now! What could I save from this guy’s water softener?

I asked my wife, "How much do we pay for our water softener?"

She replies, "I don’t know, we own it."

"So how much do you think it might cost us to run it?"

"Not a clue," came her answer.

As much as the guy in the ad thinks it might be easy for anyone to imagine, in fact, it’s rather difficult. I can’t even imagine a time when I would normally care enough to do the math, but this guy’s got me all revved up. Just imagine the savings!

Maybe I can retire the mortgage on my house, or buy an island in the Caribbean to spend my winters. Maybe

I still don’t know what the savings could be and I’ve been thinking about it for days now.

If you’re writing advertising, BE SPECIFIC! It’s more persuasive than generalities. "Just imagine the savings" is a generality that when it comes to advertising means squat.

He could have said, "Every day, my water softener will save you enough money to buy a cup of coffee and there might even be enough for a cup for your spouse too." I might have felt it was worth it and it probably would have kept my expectations in check, although a new Porsche still sounds pretty darn good.

Cheers

Steve

Good Things Come To Brands That Give

More from the “Giving is becoming Cool” files. SR by Kenneth Hein Brandweek - March 19, 2007 In Kenya , Coca-Cola is helping teach children how to test drinking water for contamination. The company also is providing water-purification systems for some of the country's most poverty-stricken areas. In India , Starbucks is addressing sanitation-related health problems by donating $1 million to WaterAid. On World Water Day (March 22), Coca-Cola and Starbucks took the opportunity to illustrate the good they are doing for the 1.1 billion people who lack access to clean drinking water. Such efforts are applauded not only from a humanitarian standpoint, but also from a branding perspective. Sixty percent of U.S. adults over the age of 18 said "knowing a company is mindful of its impact on the environment and society makes me more likely to buy their products and services," according to findings in the Lifestyles of Health & Sustainability (LOHAS) Consumer Trends Database released this week by the Natural Marketing Institute, Harleysville, Pa. The company surveyed 2,000 adults via the Web to gauge their perceptions of how companies are dealing with social and environmental issues as well as how those perceptions impact their buying decisions. Fifty-seven percent of consumers said they feel more loyal to companies that are socially responsible and about half (52%) said they were more likely to talk to their friends and families about such mindful corporations. More than a third (38%) said they'd be willing to pay extra for products produced by socially responsible companies and 35% said they were more likely to buy stock in such corporations. "Consumers are more likely to be brand loyal and less likely to be price sensitive," said Steve French, managing partner at the Natural Marketing Institute, which was founded in 1990. Despite that, the study found that many companies who do good, do a bad job of promoting the fact. "There's a big disconnect between what companies are doing and what consumer perceptions are," said French. The NMI combined its findings with investment analyst rankings, provided by KLD, Boston , to create the inaugural LOHAS Index of top 50 companies that are both socially responsible and do a good job communicating it. Of the companies they were familiar with, 50% of consumers surveyed weren't aware of their social or environmental practices. Wal-Mart fared the worst as 62% of respondents were unaware of its recent green initiatives. The mass retailer, which came in at No. 40, has done a poor job touting its green efforts while also battling past workplace diversity and human rights issues, said French. Microsoft topped the rankings, thanks to the Bill and Melinda Gates Foundation's efforts to enhance healthcare and reduce poverty. No. 4 was McDonald's. Said global CMO Mary Dillon: "We have a long history of social responsibility. It's part of our corporate DNA." The index divides the top companies into three tiers. At No. 15, Target rounds out the first tier of companies. The second begins with Ford at No. 16 and ends with Avon at No 29. Dell, which ranked No. 18, could do better in terms of creating more environmentally friendly products, said French. General Electric (No. 25), despite its green-tinged "Ecomagination" campaign, is suffering the ills of its environmental legacy—like the "issue they had with PCBs in the Hudson River ," said French. No. 39 Intel, meanwhile, "has the right elements for a corporate responsibility story; the challenge is to relate it in some sort of meaningful fashion."

What's My Fork?

Baby Crying Behind You on a Jet? Turn a Negative into a Positive
I like this fellow’s choice of attitude. S.R. Written by David J. Pollay   The plane was full. My seat was 22C. To my surprise there was no one beside me and no one behind me. I felt like I had won the lottery of seating charts. You know the feeling. You can spread out. You can recline without bothering anyone. You can even use two tray tables! I was flying to Chicago to run a workshop. I needed to concentrate on editing my presentation. The peace and quiet would be great. The flight attendants were getting ready to close the doors when I started working. And then it happened. I heard a flight attendant say, “You’re in 23C.” And just as I looked up I heard the increasingly loud sound of a baby crying. An upset baby girl and her mother were coming my way. Right behind me was the seat 23C. Five minutes later the baby’s cry turned into a wail and her little legs were kicking my seat. I couldn't work with such distraction. There were no answers to my questions: “Why does the little girl have to kick my seat? Isn’t there a way to stop the baby from crying? And why of all places on the plane do they have to sit right behind me!?” I started searching for what I could say, or what I should do. There was nowhere for me to go. When Your Road Turns Negative Create a Fork in the Path Then I smiled. I realized I actually had a choice. I could either see the situation as a dead-end negative, or I could see the situation in another way. I could find another road out and take it. And I did. In that moment I found another way to look at the situation. I now call it “my fork.” I thought of my own children. I started laughing thinking that Eliana, 4, and Ariela, 3, had done their share of crying and seat kicking in airplanes, as hard as we tried to stop it! So I turned the baby’s crying and seat-kicking into a reminder that I have two wonderful little girls of my own. Each time the little girl cried or kicked my seat, I felt grateful for my two girls. Sure I would have preferred the flight to be quieter, but guess what? I was able to work because I became quieter inside. I replaced the negative emotion I was feeling with gratitude for my own children. Psychologist Barbara Frederickson at the University of North Carolina observed how inducing positive emotions in people following a negative experience loosens the vice grip that the negative event holds psychologically. She also found that people bounced back faster physiologically — their cardiovascular activity slowed. When we landed in Chicago I stood up and turned to look at the mother and her child. She smiled a little nervously at me and started to apologize for her daughter’s crying. I stopped her. I pulled my wallet out of my pocket, opened it, and handed it to her. I pointed to the picture of my two little red-headed daughters. I said, “These are my little girls. They’re wonderful. And they cry too. Your daughter is beautiful. Congratulations.” She smiled and said thank you. I smiled and left the plane feeling good (something I wouldn't have thought possible after the crying began). So the next time a situation seems to be a frustrating dead-end, ask yourself, “What’s my fork?” There’s almost always another road you can take.   David J. Pollay is an internationally sought-after speaker and teacher, a syndicated columnist, and is the founder and president of The Momentum Project. Mr. Pollay holds a Master’s Degree in Applied Positive Psychology from the University of Pennsylvania, and an Economics Degree from Yale University. E-mail him your thoughts and stories at david@themomentumproject.com.

Indifference- The Killer of Business

From the book “How To Talk To Customers,” according to a study conducted by the Rockefeller Corporation of Pittsburgh . They asked 450 business executives to identify the most common reasons why a customer stopped doing business with them. -            Death    - 1 percent -            A move or relocation - 2 percent -            A relationship with a salesperson - 4 percent -            Price and other relevant costs - 11 percent -            Dissatisfaction with the product - 14 percent -            Attitude of indifference from someone representing the company - 68 percent Does that attitude of indifference ever creep into your workplace? If it does, you’re losing customers because of it. I was gobsmacked when I saw that figure. Almost 70 percent of business is lost because of a lack of interest being exhibited by someone. Wow! Time to do something about it. Immediately! How To Talk To Customers by Dianne Berenbaum and Tom Larkin presents a systematic approach to dealing with customers with empathy, honesty and integrity. If everyone used their system, this world would be a much more pleasant place.

Take the Bite Out of the Fight

7 steps to resolve workplace conflicts
Workplace conflict is one of the most debilitating and demoralizing occurrences around the office. It zaps so much energy from the participants and sucks the life out of their co-workers as well. "The Customer Communicator" suggests the following seven-step process for stopping conflict in its tracks: 1. Deal with the conflict promptly. Whether it's a mountain or a molehill, all work-related conflicts must be dealt with right away or your molehill may grow into a mountain. 2. Arrange to discuss the conflict in a private, neutral place. 3. Speak calmly and politely. Focus on the situation and facts and avoid personal attacks. 4. Watch your body language. Be careful not to express hostility in your posture or expressions. 5. Use your active listening skills to be sure you understand the other person's position. 6. Offer suggestions. Just as you would offer a customer several options for resolving a problem with your company, offer your coworker several options for resolving the conflict. 7. Finally, if people are unable to resolve a workplace conflict on their own. It's time to seek advice and counsel from a supervisor or manager. Don’t be afraid to ask for help. It’s often the mediation abilities of the manager or supervisor and the outside, unbiased view of the situation they can provide that gets you over the hump and back on the right track.

5 Ways to Expand Your Horizons

1. Break free from routine. If you have performed a task for any length of time, it is bound to become stale. Find a different way to do it. For example, if you drive to work the same route every day, vary it and make a list of 5 new things you don’t see on your usual trek.

2. Read more good books. If you usually read mysteries, then change genres and read biographies, or if you usually read non-fiction then switch to historical fiction. Allow your imagination to be taken to new places with great books.

3. Smash the comfort zone. Putting yourself in uncomfortable situations that stretch your thinking will help you grow. If you usually go to movies for entertainment, take in an opera and if you find it uncomfortable, analyze why you feel that way and what others enjoy about it.

4. Volunteer to help someone less fortunate than you. Whether you help out at a soup kitchen, knit woollen mittens or join a service club, helping others will pay you back in countless ways.

5. Challenge stereotypes. Stereotypical prejudices form in all of us whether we like it or not. What stereotype has developed in your life that you can challenge? Is there a person you deal with on a regular basis who you have not given the benefit of your broadened perspective to? Re-evaluate all of your personal interactions to see where you can understand more of what they live with.

Cheers

Steve