Transcript MI-SBTDC Entrepreneurial Series Course Three

Entrepreneurial Series
Promotions That Work!
Copyright © 2010 MI-SBTDCTM. All rights reserved.
MI-SBTDC™ ● Region 5 ● (989) 686-9597
Please introduce yourself!
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•Tell us about you and your business!
•What do you hope to get from this class?
•How did you find out about this class?
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Aspects of Retail Promotions
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Targeting Your Customer
Branding
Advertising
Signage
Publicity & Social Media
Sales Management
Customer Loyalty
Community Involvement
Contests & Events
Visual Merchandising
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Where is your business coming from?
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Using your three favorite
colors from the crayons on
your table, make a pie chart
that represents the breakdown
of your annual gross sales
based on customer type:
1. Regular, repeat customers
2. Occasional customers
3. New customers you have
never seen before.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
How do you currently allot your annual
marketing & advertising budget?
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1. Traditional Media (radio,
newspaper, TV)
2. Targeted Mailings,
emails, & rewards to your
existing clientele.
3. Internet and Social Media
4. Events
5. Branding
6. Sales incentives to staff
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Targeting
Your Ideal Customers
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Knowing who is coming to your store to buy,
why they buy,
what they like,
how to reach them,
what their demographics are,
what their hobbies are, etc,
will save you a lot of money
and generate higher sales!
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Your chances of selling….
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You have a 1 out of 2 chance of selling
to an existing customer (50%)
You have a 1 out of 4 chance of selling
to a previous customer (25%)
You have a 1 out of 20 chance of
selling to a new customer (5%)
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Best ways to reach your clients
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Existing & Former
Customers
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Direct mail
Birthday/Holiday cards
E-Mail Newsletter
Social Media
Customer Loyalty Program
Surveys
Exclusive Events/Sales
Win Back Program
Sales Team Tools
New Customers
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Traditional Media
Website
Social Media
Referrals
Invitation Gift Certificates
Windows & Signage
Unique Sales/Flag
Community Events
Streetwalking
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Increase Sales w/ Existing Customers!
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Since they are the
source of the
majority of your
business,
and they purchase
the most at
regular price,
you should be
offering them
extra special
treatment!
• Direct Mail, 4-6 times a year
• Customer Loyalty Program
• Email them a photo of new merchandise
they might like when it arrives.
• Offer premium gift wrapping
• Offer to ship gifts for them
• Birthday and Holiday gifts or cards
• Exclusive previews and sales
• Social Media updates of new
merchandise, design tips, sales,
customer testimonials and more!
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Win Back Your Previous Customers!
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The odds are
still very
good here!
Plus, if you can
win back a
customer
who had
previously
been
dissatisfied,
they will
become
your most
loyal of
customers!
• Create a list of who hasn’t been in for
a year or more from your previous
mailing list or employee’s memories.
• Do a special, personalized letter to
each person, survey why they haven’t
been in, and offer a $5-10 gift
certificate for anything if they bring the
survey back to the store.
• If a problem is identified, make it right.
Thank them for bringing it to your
attention. Welcome them back!
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Bring in some new customers!
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• Analyze your perfect customer
• Survey your regular clients
• Plan new advertising around what the existing
clients research revealed.
• Ask existing customers for referrals, or have a
special “bring a friend” sale.
• Have gift certificates made and give them to
likely new customers you meet, with an
invitation to come in the store.
• Hit the streets, and give gift certificates to all
potential clients working in a three block radius
of your store.
• Have a nice website that shows your store’s
style instead of an expensive yellow pages ad.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Compare the results
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Loyalty, Rewards,
Gift Certificates
• Loyalty programs don’t
cost money unless they
are used. Usually, it’s a 1015% kickback on
purchases. (Much less
expensive than having to
do a 25% off sale!)
• Gift certificates don’t cost
until they are used, which
means a new person you
have chosen is now
shopping in your store!
Traditional
Advertising
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Costs the same whether or
not it brings in sales, so use it
well. One large ad a month will
bring in more than four small
ones.
To test efficacy, give away
gift certificates in ads
too…only have a minimum
purchase.
Use the media that the you
find out your existing
customers are reading or
hearing.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Sure seems like we
are giving away the
store, huh?
Copyright © 2010 MI-SBTDCTM. All rights reserved.
13
Branding Your Business
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Branding is the process of creating a unified
look and theme to all of your marketing
materials, signage, packaging, advertising,
labels, music, paper choices, bags,
giveaways, uniforms, and more!
You do this so your business is easily
recognizable to all your customers, and it
sets the tone for what your store will be like.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Branding: the Basics
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Logo
Fonts
Graphics/Art
Borders
Colors
Papers
Motto
Fabric
Texture
Sounds
Smells
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Business Cards
Letterhead
Signage
Bags
Receipts
Advertising
Website
Loyalty Cards
Labels
Employee Clothing
Atmosphere in store
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Advertising Tips & Tricks
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There are many aspects
to your advertising
strategy, and by
planning your year in
advance, you can
keep on budget, have
a flow of ideas week
to week, and track the
results of your
spending very simply.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Advertising Budgeting
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For existing
clients, use
about 30-40%
of your total ad
budget.
Use this for loyalty, direct
mail, events, birthday and
holiday gifts, email
newsletters, gift with
purchase promotions,
and referral bonuses.
For new
clients, use
about 50-60%
of your total ad
budget.
Use this for gift certificates,
radio and newspaper
advertising, event
sponsorships, new client
referral gifts, website, and
cross promotions.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
That leaves about 10-20%....
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Use this to win back your former customers. Use this
for surveys as to why people have left, for extra
“concessions” when someone comes back in dissatisfied,
and bonus gift certificates to give to surveyed customers
to bring the survey back in.
AND/OR
Use this for sales bonuses and commissions that
reward excellence in sales! More on this in the sales
motivation portion of the class!
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Advertising Budgets Should Be…
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Ask yourself…
Will this ad
be seen by
my perfect
target
customers?
If so, place it.
Maybe? Do a
smaller ad.
If not, Skip it!
• Set ahead of time.
• Based on percentage of sales, not on
available cash on hand when a
salesperson stops in!
• Regulated to cover both the slowest
and busiest times of the year.
• Allocated based on the response you
get from the customers.
• Given enough wiggle room to take
advantage of special offers.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Easy way to plan your month…
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st
1ndweek: Direct mail
2rd week: Newspaper
3th week: Radio
4 week: E-newsletter
Be sure to ask when people come in,
what brought them in today!
Write it down!
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Two things you’ll need:
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Clipping Notebook
Planning Calendar
Each time you do a
promotion, take a
clipping of the ad, paste
it in the book, and keep
track of how many sales,
customers, and cost of
the ad.
You will be planning for
budget, for lead time, for
promotional time, and
results. Have one part of
your planner (or a
separate one) just for
marketing activity.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Your Website
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Websites are
now the way
most people find
out information
on a store
before they go.
Over 50% of
people say they
first look online
for phone
numbers, or to
see if a place is
worth going to!
• Online business card
• Location, hours, directions, phone,
email
• Photos of the store
• Product lines and links to major
suppliers sites.
• Upcoming events, current specials.
• Testimonials from customers
• Email newsletter/coupon signup box
• Updated at least monthly!
• Link to Facebook or MySpace pages
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Customer Database
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What you need to get!
How you will use it!
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Name
Complete Address
Email Address
Loyalty Card Information
Purchase Record
Favorite Brands
Birthdate (not year)
Any notes that help you
know more about the
client.
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Direct Mail pieces
Email Newsletters
Email Surveys
Email blast when a favorite
new brand comes in for
the season
Birthday cards
Referral programs
Distribute Rewards
Invitations to special
events
Copyright © 2010 MI-SBTDCTM. All rights reserved.
I saw the sign!
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Outdoor Signs
Inside Signage
• Your main sign should be of
the highest quality and reflect
your brand image perfectly.
• All other signs, banners, or
placards in the windows
should also use the branding
standards.
• Should be well lighted.
• Flags and banners can be
great attention getters with
their movement. Consider an
embroidered sale flag.
• Feature new/seasonal items
• Feature famous brands
• Direct customers to the sizes
or areas they are looking for.
• Make sale items easy to find.
• Tell policies in a nice way
• Suggestive sell loyalty
program benefits
• All signs must be kept current
and use branding.
• Use your computer to create
consistent signage
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Displays
Windows
Floorplan
Image
Neatness
Ambiance
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Publicity
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• Is easy to use if you
understand and follow the
basics of press releases.
• Can showcase your
expertise in your field when
you write articles about
topics of interest.
• Should always include a
full color photo.
• Should always include an
ad that promotes how your
business is related to the
article submitted. It’s a great
way to get a half page of
notice for 1/8th page price!
• Is not something you can
schedule. It goes in when the
papers want it to.
• Is not a replacement for
traditional advertising.
• Cannot promote your
business directly, it needs to
be a public interest story.
• Is a good way to announce
employee promotions,
educational milestones, and
national affiliations.
• Will help you build credibility
as a specialist in your industry.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Social Media
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Pros
• It’s free!
• Your customers use it
already.
• Can complement your
regular ad schedule.
• Can show full color
photographs of new
merchandise, to entice
shoppers to stop in.
• Great way to give tips on
how to use your products.
• Is a silent referral system.
Cons
• Can be very addictive.
• Can take too much of your time
away from the sales floor.
• Can lead to employee time
wasting if not properly
managed.
• Is not a replacement for your
regular promotions and paid
advertising.
• Can be annoying to customers
if you used inappropriately.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Social Media Guidelines
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Post something every few days for best results.
Don’t spend more than 15 minutes a day on it.
Use it to promote contests and events, and get
customer input on how they use your products in
their lives.
Be sure to friend people regularly.
Be very proper. Never do or say anything that can
offend anyone, anytime. It’s permanent.
Announce your weekly specials, and it may boost
traffic. (Don’t rely on this, though.)
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Promotions That Work!
Week 2 Agenda
1.
2.
3.
4.
5.
6.
7.
8.
Questions from last week?
6 minute group activity- 4 minute feedback
Personnel Management/Customer Service
Loyalty Programs
Community Involvement
Cross Promotions
Budgeting and Planning Tips
The Apprentice Challenge-Group Activity
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Management & Motivation
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Your sales and service professionals are
the face of your business to your customers.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Salespeople vs. Clerks
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Salesperson
Clerk
• Greets customers, lets them look a
bit, then formulates a soft open.
• Sells to the individual, based on
what they are looking for/at. Shows
how it will work for the client.
• Gives excellent customer service,
offering to show them other items
that complement. (Upsell/crosssell)
• Offers extra services.
• Gets them signed up for emails.
• Makes notes on the customer file.
• Sends a Thank you note to the
client.
• Greets customers with
a “Hi, can I help you?”
• Walks away.
• Spends a lot of time
behind the counter.
• Rings up what they
brought to the counter.
• Says Thank you.
(maybe)
Copyright © 2010 MI-SBTDCTM. All rights reserved.
32
Your staff should:
• Know the products you
sell inside and out.
• Be able to answer
questions about how to
use the products.
• Be helpful and
suggestive, without
being pushy.
• Feel confident about
their role in selling.
• Not take rejection
personally.
• Know the sales goal
numbers for the day,
week and month.
• Know their personal
best, and strive to beat
it regularly.
• Make notes in the client
files about purchases.
• Call or send notes or
emails on new groups
that they know a
customer would like.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
33
Perceived Indifference
68% of all customers
Never purchase from us in the first
place OR
Never come back again.
Because they get the feeling that you
don’t care, you don’t appreciate their
business, or you have something else
you’d rather be doing.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Overcoming Perceived Indifference
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PRACTICE “RELIABLE C.A.R.E.”
The 5 best ways to keep customers coming back.
•Be Reliable
•Be Credible
•Be Attractive
•Be Responsive
•Be Empathetic
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Management/Motivation
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Management
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Job descriptions
Hiring the best
Effective training
Posting goals
Sales meetings
Keeping focused
Give them tools
Review and Reward
Motivation
• Know each person’s
specific motivations
• Personal goals &
professional goals set
• Performance pay
• Motivational library
• Recognition & Praise
• Positive
reinforcement
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Types of loyalty systems
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Simple In Store System
• Very low cost to start.
• Can be used with POS,
on paper, or punch
card for wallet.
• Can be customized for
your business.
• Tracking is the
responsibility of the
sales staff and clients.
• More labor intensive.
Loyalty Card Scanners
• About $250-500 to
start, call your credit
card provider for
details.
• Professional
• Easy to use & track
• Industry standard now
• Higher cost, less
flexibility.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Benefits of Loyalty Systems
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To the Store
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Increased sales
Targeted database
Higher margins
Low cost to promote
directly to best clients
• Doesn’t cost until the
customer purchases
a set amount.
• Early season sales.
To the Customer
• Feel rewarded and
appreciated.
• Part of a club/group.
• Special discounts and
preview sales
• Kickback on purchases
• Increased services like
giftwrap or shipping.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Community Involvement
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• Getting involved in the local community is
the key to a successful retail district.
• Joint marketing campaigns cost less and work
better than going it alone.
• Consistent store hours pay off.
• Non-profit organizations make great partners
for fundraising for both.
• Cross promotions=Low Cost+High Return
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Cross Promotions
• Low Cost, but High Impact!
• Show Customers Your Town
• Get Existing Clients into New Stores
• Build Loyalty to a Community
• Added Value to Clients & Businesses
• Smaller Individual Buy-in
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Coupon Cross Promotions
Newspaper Wrap or Insert
• Full page of same size coupons for all
different businesses in one community
• Back side of coupon has details about the
same store as the front (2 sided)
• Coupons expire 6 weeks from issue date
• Coupons offer $$ Off or Gift with Purchase
• Header tells total $ value of page
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Coupon Cross Promotions, 2
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Given inside a business to their buying customers,
to promote your own business, and surrounding,
non-competing businesses. (Customer Rewards)
$ Value should be at least 20% of average purchase, or
high perceived value to the customer.
Larger, 1/3 page size, individual coupons in an envelope
$ off, Free Gift, or BOGO….(No % off coupons)
You reap the benefits of reaching other paying
customers within a shopping district, people who are
more likely your target customers, and are already loyal
to the community. (Less risk)
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Coupon Cross Promotions, 3
• Direct mail cross promotions go to
specific demographic profiles at home.
• 2 Business Cross Promotions---I hand
out your coupons, you hand out mine.
• Themed- All bridal businesses, going to
prospective couples; All home goods to
new homeowners; All family related for
families with children at home, etc.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Why Coupons?
According to
Advertising Age,
87% of Americans
use coupons!
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Community Involvement
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Professional Organizations
• Join 1 or 2 key groups that
have similar goals.
• Elect strong leaders and be
involved in event planning.
• Suggest consensus seeking
and brainstorming sessions
if the group is stuck in ruts.
• Groups to consider: DDA,
Chamber, Lions,
Kiwanis, Michigan Retailers,
or the National Association
for your business.
Charities & Churches
• Have a set program for
charitable givebacks. Offer
this to each group that
comes in asking for
donations.
• Give out cards that allow
customers to donate their
rewards to local charity of
their choice.
• Offer special sale weeks
where a portion of the sales
go to a specific charity.
• Use their publicity to
promote.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Promoting During Events
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Participate in group advertising efforts.
Be open the same hours as the event
Have 1 day specials for event attendees.
Do some streetwalking
Make your storefront festive
Give away coupons or tokens in goodie
bags going to attendees.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
46
Keep the bottom line in mind!
Events and contests are great ways to build traffic
and keep things fresh and new for your customers.
However, make sure you are not giving away more
than you are taking in!
•Set Sales Goals for the event
•Keep advertising costs in check
•Tie in with local festivals to reduce costs
•Have enough salespeople on hand
•Buy special items with higher margins but good prices
•Have instant cash bonuses to salespeople who reach goals
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Hours of Operation
• What are your town’s standard hours of
operation for downtown businesses?
• How do your hours compare?
• Why are your hours different?
• Consistency is the key to a downtown’s
success. People need to be able to rely on
businesses being open the same hours, or
you will lose to malls and other areas.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Your Advertising Schedule
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Plan ahead. Choose the
best of the best for sales
and promotions, schedule
the year, and adjust for
budget. Then go for it!
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Budget considerations
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Sample Budget Breakdown
Branding
Loyalty
Traffic
Copyright © 2010 MI-SBTDCTM. All rights reserved.
How much $ to budget?
There is no magic
number, but roughly…
New businesses,
7-10% of projected sales.
Existing businesses,
3-7% of projected sales.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Steps to Promotional Schedule
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This will
take several
sessions.
To work
best at this,
I suggest
you get out
of the store,
and go to a
neutral
location
where you
can work
without
interruption.
1.
2.
3.
4.
Brainstorming ideas
Research pricing, profitability, sales
Check local events to tag along with
Check calendar: Holidays, national
“weeks”, staff vacations, buying trips,
local town events, weather, etc.
5. Plan branding and loyalty pricing
6. Plan traditional advertising
7. Calendar of events, with lead time for
preparation.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
How do I find time to do it all?
52
•Analyze your typical week. How much time are you
spending doing things that do not increase your business?
•Carve out office time for working only on promotional
stuff. I suggest 5 hours a week of focus time, without
interruptions. One hour a day will work.
•Don’t try to do it all yourself. Delegate tasks, outsource,
ask media reps to do the work for you, or barter
•If you don’t have an office that you can close the door,
leave the building and go somewhere else where you can
take your laptop and work strictly on promotional stuff.
•Have proofs and quotes emailed to you. That way, you
can proof from anywhere, anytime.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
The Apprentice Challenge!
• Count off 1-6,and break into groups
• Appoint a secretary/notetaker
• Create a promotion using a $1000
promotional budget, to take place in
September or October of this year.
• You have 15 minutes to create, and 2
minutes to present your idea to the group!
Copyright © 2010 MI-SBTDCTM. All rights reserved.
Next steps…
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• After you read all of this, let it sink in for a week.
• Choose your favorite concepts to follow-up on.
• Schedule a free one on one confidential
counseling session with an SBTDC business
consultant at your convenience, and we can
help you put this in perspective.
• Get a great calendar and planner system.
• Be active in your DDA and Chamber
• Pick 2-3 promotional ideas to implement in the next
few months, while working on your annual
marketing calendar.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
A Gift For You!
• You are each receiving a CD that has a
wealth of information on a variety of the
topics we spoke about today.
• On that CD are promotional ideas, articles,
tips and tricks on budgeting, forms, and
lots of other things that I hope you find
helpful.
Thank you!
Copyright © 2010 MI-SBTDCTM. All rights reserved.
The Michigan SBTDC
The MI-SBTDC™ is funded through a cooperative
agreement with the U.S. Small Business
Administration (SBA), the Michigan Economic
Development CorporationSM (MEDC) and matching
funds from Local Network partners in each region.
MI-SBTDC ™ State Headquarters
Grand Valley State University
Seidman College of Business
Phone: 616.331.7480
www.misbtdc.org
Copyright © 2010 MI-SBTDCTM. All rights reserved.
MI-SBTDC™ ● Region 5 ● (989) 686-9597
Michigan SBTDC Services
• Counseling - One-on-one meetings with experienced
business consultants to assist starting or growing small
businesses
• Training - Available through the Entrepreneurial Series:
▪ Starting a Business
▪ Writing a Business Plan
▪ Marketing Your Business
▪ Financial Management
▪ Business Legal Issues
• Research - Provide a full range of information services
through the State Headquarters
Copyright © 2010 MI-SBTDCTM. All rights reserved.
MI-SBTDC™ ● Region 5 ● (989) 686-9597
Disclaimers
The Michigan Small Business & Technology Development Center™
(MI-SBTDC™) provides counsel, training and research for Michigan’s new business
ventures, existing small business, expanding new businesses, new technology companies,
and innovators. The MI-SBTDC™ is housed at Grand Valley State University’s Seidman
College of Business in Grand Rapids, Michigan. As host of the MI-SBTDC™ State
Headquarters, the Seidman College of Business oversees the twelve region MI-SBTDC™
network. Entrepreneurs and small business owners may access the services of their nearest
MI-SBTDC™ by calling (877) 873-4567 or visiting www.gvsu.edu/misbtdc/region5.
Funded in part through a cooperative agreement with the
U.S. Small Business Administration. All opinions,
conclusions or recommendations expressed are those of the
author(s) and do not necessarily reflect the views of the SBA.
All rights reserved – Copyright 2010 by MI-SBTDC Region 5
The information contained in this PowerPoint presentation is believed to be
accurate at the time of publication. All information is subject to change without
notice. Unauthorized use or reproduction of information contained in this
presentation is strictly prohibited.
Copyright © 2010 MI-SBTDCTM. All rights reserved.
MI-SBTDC™ ● Region 5 ● (989) 686-9597