Can You Discount Price and Increase Brand Loyalty?

by Steve Fodor

That’s a balancing act marketers struggle with. Marketers struggle even more given today’s economy when discounting has become a means of survival to generate sales traffic. “If we discount, will we ever be able to raise prices (and our margins) again without sacrificing brand loyalty?”

If you’re wrestling with this question, think about this: Forget about price and think about your customer relationships. I’m of the belief that if you manage customer relationships…and your brand…responsibly, price becomes far less relevant.

I just saw something from Coldwater Creek that reaffirmed this belief. I got a mailer from Coldwater Creek announcing a discount. But instead of the usual “great deals to be had now” tone so many retailers are taking, Coldwater Creek did something different. Their mailer was a simple card with a personal message from the CEO, Dan Griesemer. The message simply said, “We know things aren’t easy. But they can get better when we all pull together. Since you’ve always been a good friend to us, we’ve just reduced many of our regular prices. Thank you.”

In that very simple and understated card, my perception of Coldwater Creek as a brand elevated to new heights. Instead of talking in terms of price, they talked in terms of empathy, understanding and like a real friend. The Coldwater Creek brand took on an even more likable personality in my mind.

I’ll miss this recession when it’s over. I’ve managed to get a lot of great buys on brands that I normally would not have considered because of price. And when the recession ends, so will my temporary relationships with those brands that chose to differentiate themselves on price rather than on brand relationships.

Flickr Photo Credit: http://www.flickr.com/photos/rwp-roger/3186643427/

Increasing Your Odds of Winning New Customers

by Brad Smith

Every good poker player has a pretty good grasp of the odds. For example, if you make a bet, some of your opponents will fold. The fewer the opponents, the better your chance of winning.

A marketing example to increase your company’s or your product’s chance of winning is to create a blog (like the one you’re reading now). By doing this you are increasing the odds that potential new customers will find your Web site…and consequently learn more about the advantages your company and products have to offer.

Blogs add “content” to your site, increasing the odds that search engines will direct “word search’ inquiries to your blog/Web site.

“Content” on the Internet is exploding exponentially every day. You need more just to compete. So start a blog. Odds are you’ll have fun, too.

Flickr Photo Credit: http://www.flickr.com/photos/strupler/

Hammer the Benefits

by Steve Badertscher

A wise advertising creative director once told me, “Nobody buys a hammer to own a hammer…they purchase a hammer to pound in nails.”

I’ve never received better advice to help shape effective advertising messages that really resonate with prospects and end-users. Simply put, it’s a great reminder to focus on benefits, not features. In other words, focus on what the product does for the end-user, not on what the product is.

For example, I love to take photos as a hobby. I particularly enjoy taking photos of sporting events, especially those involving my kids. But when I recently went shopping for a new lens, I didn’t do so with the intent of owning a zoom lens…I wanted to be able to see the grit and determination on my kids’ faces as they edge out their competitors at the finish line of their cross country races in my photos.

Likewise, my teenage son didn’t recently purchase a Jeep Wrangler so he could own a sport utility vehicle…he bought it to enjoy the “top-down, music-up” benefits when the summer weather arrives.

And clients don’t engage our agency’s services because they want to acquire beautiful brochures, advertisements and Web sites (although it is a nice added bonus)…they hire us because they want their sales to increase and the bottom line to improve. In other words, they don’t want tools, they want results.

So whether you’re responsible for crafting your company’s marketing messages or approving the messages that are created, always keep in mind the perspective of your target audience. Remember, your customers don’t want to own your product, they want the resulting benefit of what it will do for them. And once you clearly define and articulate the key benefit that is most important to them, all that’s left to do is hammer it home!

Flickr Photo Credit: http://www.flickr.com/photos/justinbaeder/

Generating Sales Leads In A New World

by Steve Fodor

I’ve been in business-to-business sales for about 20 years. Recently, I’ve heard and read a lot of information about cold calling as an ineffective lead generation technique.

Given that I started my sales career before voice mail, the Internet, e-mail and social media, I’ve felt that anyone saying “cold calling does not work” was just lazy. It’s hard to pick up the phone and make a 30-second pitch to someone that doesn’t know you.

Lately, though, I’ve become a convert. But let me be clear. Picking up the phone still has its place. There are just so many NEW ways to generate leads.

Even if you live in the world of industrial products and business-to-business selling, here are a few thoughts on lead generation for today’s selling environment.

1. Don’t leave voice mail if you’ve not had a prior conversation – voice mail is mostly a screening tool today. If you can’t reach that person, send them a handwritten note saying you would like to get in touch. Put your Web site on the note. Then call. Now you have something specific to call about. And, a handwritten note gets noticed in today’s e-mail world.

2. Put your sales people on YouTube – If you have a national sales force, think about the presence you could make for your brand if you had all of them on YouTube with well-produced, two-minute videos of why they enjoy selling your product and working with customers. Google and other search engines are the way people find information today. And a strong YouTube presence with the right keywords will increase your brand’s search rate. And don’t forget LinkedIn, Facebook and other popular social media venues.

3. White papers instead of collateral – Sales used to be “here’s my brochure” or “I’ll drop a brochure off.” The world continues to evolve and industrial buyers and decision makers cite that white papers and case histories are far more valuable in making decisions than the good old brochure. Think about creating white papers for your products and services. Put them on your Web site. Announce their presence with push e-mails and search engine optimization strategies. Have your sales people use white papers as “send me something” pieces instead of brochures.

4. Blogging – Again, the Internet continues to replace the phone as a sales tool. Your sales force is an incredibly valuable information asset. Counsel them on how to use blogging as a marketing and sales tool. Set them up with individual blog destinations. Not only will this aid in prospects finding you through online searches, but your sales people will be seen as valued information providers rather than commodity product purveyors.

Yes, sales and sales lead generation techniques have evolved and continue to do so. Hey, I’m an old-school person, too. But there sure are a lot more new and effective ways for generating sales leads today…in addition to good old-fashioned cold-calling.

Flickr Photo Credit: http://www.flickr.com/photos/markhillary/

Social Media -- Is It Time To Go "All In"?

by Brad Smith

Yep, I’m a poker player. My auto license plate reads PKRCHPS.

One of the most powerful plays in Texas Hold’em is the all-in move. It’s also one of the most dangerous. If you’re right, or lucky, you get to play on with more chips…more money. If you lose, you go home. Sometimes when you go for broke, that’s exactly what you achieve.

So is it a gamble to participate in the new social media?

FaceBook. LinkedIn. Twitter. Blogging. YouTube. Etc. Should you be there? Should your clients?

I view these as tools. Valuable tools that can connect you with prospects and drive increased traffic to your Web site.

But they are not the panacea or the answer to everyone’s marketing dreams. They should not receive 100% of your attention or your budget. Social media is not the silver bullet, but should be viewed as one of the many bullets in your marketing communications arsenal.

Like I said, I’m a poker player. That doesn’t mean I’m a gambler. I like poker because it’s a game where you assess and calculate the risks you take. If your chances of winning are too slim, or the rewards aren’t great enough (we call this “pot odds”), then you don’t gamble, you fold. If the potential rewards are in sight, you make an appropriate bet.

So place a bet on social media. But don’t go all in.

Flickr Photo Credit: http://www.flickr.com/photos/chaps/

Making a List

by Steve Badertscher

Are you in the habit of making a list? I have recently started to do this since the advent of creating our agency blog. Actually I make several every day, which I guess technically qualifies as lists, plural. I’ve found my lists are always a good starting point for inspiration when sitting down with pen in hand to write my blog (I know it’s more efficient to sit at the keyboard and type away, but we all have our vices).

Having said that, there are also lists that you make, not by what you physically write on paper, but by the virtue of who you are and what you do.

For example, in the “who you are” category, there are the “A” lists for extravagant celebrity parties (or at least so I’ve been told as I’ve personally never actually been on one of those lists). There are also traditional Christmas card lists, both business and personal, and who doesn’t feel good to be included on those lists of the people you like and admire (oh, and family too). And of course there is the proverbial “excrement” list, which we all try to avoid by trying not to offend people.

Now in the “what you do” category, there is the business listing list, categorized alphabetically under your industry heading in the local chamber of commerce directory. And there is the short list, which in the case of seeking new business, you hope your unique skills and qualifications land your company name among the final few.

Finally, there is a particular list that we were especially happy to have been included on this week. It's kind of a "who you are" and "what you do" combo list. It is BtoB magazine’s Top Agencies List. It’s an honor the magazine bestows upon the “best of the best” in business-to-business advertising. We feel fortunate to have once again been named one of the top agencies in America. Although we’re one of the smallest, we’re listed right there amongst all the big boys in our industry. It is the sixth time we’ve been able to celebrate this honor in recent years, and we never tire of being included. In fact, it’s one of our favorite lists to make.

Flickr Photo Credit: http://www.flickr.com/photos/spcummings/

Fly Fishing and Marketing Communications Planning

by Steve Fodor

I was in a meeting with a client recently who said, “Marketing is like fishing. I’m going to keep throwing bait into the water until I find out what they’re biting on.”

Being a serious fly fisherman myself, I bit my tongue and replied, “Well, you shouldn’t be fishing. You should be catching.” What I was implying is that any serious fisherman devotes effort into understanding the environment they’re fishing in. What are the predominant food sources? Where is the structure that will harbor the biggest fish? What weather conditions may impact the mood of the fish?

In other words, successful fishermen do their homework so their time on the water is more productive. Yet, when it comes to planning marketing messages, so many organizations neglect their homework and, consequently, their marketing messages are far less effective. “Laundry lists” of tactics get generated before thinking about what the message should really be.

“Planning” is one of those words that we should embrace. Yet it often sends shivers up the spines of marketing executives as they envision three-day-long workshops, buzzword-spewing consultants and hefty price tags.

Planning for marketing communications -- meaning what should our message be and how can we most efficiently communicate with our audience -- really starts with answering a few simple questions:

· What do we want our audience to think, feel and do?
· Why doesn’t our audience currently think, feel or do what we desire?
· How does selecting a product offering in our category affect the lives of our audience?
· Why would they buy from us vs. someone else?
· What funds are available for communicating with our audience?

Oversimplified? Perhaps. But if you’re charged with creating and implementing the communications program for your company or organization, start with these questions. And don’t cheat yourself with simple answers. Think long and hard. Share these questions with your colleagues. After giving it some thought and some well-invested time, you’ll be thinking in terms of creating a powerful message based on emotional motivations rather than generating a “laundry list” of tactics.

Photo Credit: Trish Fodor