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Is it the Best Place to Spend Your Money?

“It’s only $400. What have you got to lose?”

If you’ve ever run a small business you’ve heard that question before, usually spoken by an advertising sales rep trying to sell you on some new marketing fad, or maybe an add-on to a package you’ve already bought. You fall for it, too. I know I did, several times.

You fall for it like I did for one of three reasons:

  • You didn’t have a marketing plan
  • You didn’t have a goal, or expected outcome you knew you wanted from your marketing plan
  • You didn’t do the ROI and truly answer that question
Close up of a pen and blank check

What have you got to lose? For starters, the $400 check you just wrote. Secondly, the chance to spend that $400 more wisely. The better question to ask is …

“Is this the best place to spend that money?”

When you have a plan, you have a better idea of where you want to spend your money, how that money will be used, what you hope to accomplish, and how you’ll measure the results. You’ll also have a budget that you’re checking regularly so that you’ll know if you even have that $400 to spend in the first place. When I started budgeting, I had set amounts to spend in certain places where I knew I would get the best bang for my buck. I also had some flexible money for opportunity buys.

When you have a goal or expected outcome, you have another measuring tool. When I finally got smart about my budget, the question I would always ask before spending that flex fund was, “Would this money be better spent on this new thing or just added to the money I’ve allocated elsewhere?”

The ROI is the hardest question to answer. One truth about marketing, advertising and even sales training is that there isn’t a simple plug-and-chug equation that says if you spend X your results will be Y. Anyone who tells you otherwise has a good ROI—for him, not necessarily you. At best you have generalizations based on previous experiences, trial-and-error, and hope. Yet being able to figure out the ROI, even in the most general sense, is the only way to really know what you have to lose.

DOING THE MATH

I’m going to do a math problem to give you an idea of how to calculate ROI. To do it, I will be using some basic assumptions. You can adjust your numbers accordingly.

  • Traffic = 200 people/day
  • Conversion rate = 20% (40 people/day)
  • Average Ticket = $50
  • Sales for 30 selling days = $60,000 (40 people x $50 x 30 days)
  • Profit Margin = 50% ($30,000 on that $60,000 in sales)

If we do the math backwards, it might look like this: I need to do $60,800 in sales just to break even on the $400 I’m going to spend. Realistically, though, to make it worthwhile, I’d like to make back at least an extra $400, so I need to do $61,600 to get any kind of return worthwhile. Therefore, at $50/per ticket, I now need an extra 32 paying customers over the 30 days. Since my conversion rate is only 20%, however, I need to attract an extra 160 customers over the month just to break even. So the real question becomes, “Will this $400 attract an extra 5-6 people a day or more (3%)?” Considering one of the most highly measured advertising models—direct mail—has only a 1-2% expected return, that might be asking a lot of any marketing effort, especially something new and untested.

Remember, too, that the effects of this advertising will likely end with the season. If it isn’t already in your budget, being able to do the math like this can save you from losing a lot.

You can play around with this basic formula to find out all kinds of cool things. For instance, if your Profit Margin was 52% instead of 50%, you’d have an extra $1,200 in your pocket. (To find out how to increase your profit margin through a better pricing strategy, download the FREE eBook Pricing for Profit.)

What if you raised your conversion rate from 20% to 22%? (By the way, that’s converting 4 out of the 160 people that didn’t convert before.) Now, instead of 40 people a day, you have 44 paying customers. Over 30 days that equals $66,000 in sales, or an extra $3,000 in profit.

What if you also raised the average ticket just 2% to $51? Now you have 44 people x $51 x 30 days = $67,320 in sales, or $3,660 in extra profit.

Wait. Did I just show you the ROI for The Ultimate Selling Workshop? Maybe I should add in a few other benefits.

Unlike most advertising that ends when the season ends, Sales Training keeps creating results long after the season ends. Your staff will learn new skills that they will use the rest of their lives. You’ll see your culture change for the better as your staff focuses more on relationship-building, not only with your customers, but with each other. They’ll also be more intrinsically motivated because you’ll be offering them Mastery and Purpose, two of the three elements (along with Autonomy) that Daniel H. Pink, in his book DRIVE, says motivates people to do their best.

Better Sales Training also leads to happier, more satisfied customers which leads to more Repeat business as your happy customers want to come back more often and Referral business as those happy customers tell all their friends about you. Yes, you can actually “buy” word-of-mouth by teaching your team to be better at selling. It is the gift that keeps on giving.

Here’s one last nugget for you to chew on …

If your customer service is substandard—and let’s face it, a lot more stores have lower levels of service than they’re willing to admit—then just increasing traffic through advertising will only help speed up your demise as more and more people will talk about you in a negative way. Shore up your Customer Service first. Teach your staff how to build relationships, how to surprise and delight, how to convert more of your traffic into paying customers, and how to make your customers happier. Then you’ll have all the money you need to attract more people through the door.

The ROI is there.

-Phil Wrzesinski
www.PhilsForum.com

PS If your business is going to do $60,000 or more this December, The Ultimate Selling Workshop is a really good deal for you. In fact, the higher your traffic count, the better the investment becomes. I’ve shown you how this pays for itself and then some with just a modest growth of 2-2.5% in conversions and average ticket. Now do that math over the whole year to see the true benefit.

PPS Yes, you can download the FREE eBooks on Selling that I’ve posted and you can read my blogs to do this yourself. You’ll save the $2,000 you would have spent on me. You’ll instead spend it on time and energy planning your own trainings and extrapolating all those idea to your industry. Or you can hire me and not only will I do all that work for you, there is something about bringing in an outside expert that gets your staff fired up even more. They might love you, but they’ve heard you speak before. I know when I brought in new people to my meetings the staff perked up and listened even better. The introductory price ends at midnight September 30th. Let’s make this your best December ever and kick start 2019 all at once.

Price is the Default – Change Your Settings

Do you feel beat up over price? Does the business news turn your stomach into knots as you read about department stores like Younker’s going out of business and Sears and Macy’s doing another round of closures? Does it make you cringe every time you hear that Dollar General has opened a new store? Do you want to curl up in the fetal position every time Amazon has a Prime Day?

The retail economists look at all that news and keep coming to the same conclusion …

Price drives all retail.

They are missing the true picture. Price is not the driver.

In the absence of everything else, Price is the Default.

At 3:01am EDST Apple opened up pre-orders of their new lineup of iPhones they introduced two days earlier. These phones cost more than the computer I use to write this blog. Yet the early adopters were up and ordering their new phones at full retail prices.

Apple gets what so many retailer do not. There are tons of customers out there willing to shop for some reason other than price. The reason they don’t is that too many stores have given up on giving them something else.

I just read a report that department stores, long mired in a slump, are spending more on television ads this coming fall. It also talked about their other strategies to turn their ships around that included supply chain and inventory management improvements.

Nowhere in the article did it say anything about investing in employees and employee training. Nowhere were the words (albeit overused) Customer Service, Customer Experience, or Sales Training. Nowhere was there a discussion of spending more to surprise and delight customers. The article went on to say that modest growth based on the already growing consumer spending in the US was about the best they could hope for.

Do you know why the traditional department stores are struggling? They have cut their staff and their training back so far that they are just over-priced versions of their competitors. Target, TJ Maxx, Marshall’s, and other stores like them now have pretty much all the same stuff with the exact same levels of non-existent service as the traditional department stores, but at lower prices.

According to the same article about their TV spending, the only department store mentioned that has a chance of truly thriving is Nordstrom’s. Yeah, the only store still focused on customer service.

There was a survey done by National Retailer Federation during the Great Recession. When asked what would drive people’s decisions where to shop, 41% said “deals and discounts” and another 12% said “everyday low pricing.” That only adds up to 53% of the population. Another 47%—almost half—said something other than price would drive them during a time where money was tight.

Today’s economy isn’t that tight. Although price has become default for more and more customers—mainly because of the lack of service out there—there are still well over 40% of the population that would choose a store for reasons other than price … if they were given that option.

That’s why I am pushing The Ultimate Selling Workshop so hard this fall. You could spend the $2,000 on advertising and maybe drive in a few more shoppers this season, especially if your prices are sharp enough. Or you could up the game of your sales staff, increase average tickets, increase loyalty (without just giving bounceback coupons or discounts), increase word-of-mouth advertising, increase repeat business, and increase referral business not only this season, but going forward into 2019.

Your holiday ads end with the holidays but Sales Training is the gift that keeps on giving.

Millennials are more open to shopping local than any generation before them. They also shop completely differently than any generation before them. Reaching them through advertising and marketing is only half the problem. You also have to know how to sell to them. You’ll learn how in The Ultimate Selling Workshop.

Don’t be a Default retailer. Change your settings to Surprise and Delight. There are a lot of customers who would choose you if given the chance. Call or email me today.

-Phil Wrzesinski
www.PhilsForum.com

PS Last year over 100 million people went to Toys R Us even though Walmart had consistently lower prices and Amazon had a much larger selection. Those 100 million customers went for some other reason. If they can draw that kind of business by offering a better “experience,” you have the opportunity to draw some amazing crowds, considering I am sure you can offer an even better experience than any chain store out there. (By the way, just for clarification, Toys R Us went under because of heavy debt load caused by their greedy venture capitalist owners borrowing money for themselves against the company. They were profitable, but not profitable enough to pay the massive interest on their debt.)

PPS If you aren’t convinced yet of the Value of The Ultimate Selling Workshop, next week we’ll do the math.

Connecting Through Stories (Part 1)

When people ask me what was my favorite Christmas gift, I often answer my first guitar. I still have it—an Eterna EF-15 six-string acoustic guitar by Yamaha—hanging on the wall with my other guitars. I get a lot of joy from playing guitar.

When I first got the guitar I wasn’t very good at playing it, nor was I as motivated to learn how to play as I thought I would be. It was harder than I thought. Then I met Tim Murnen.

The Eterna is the second from the right.

Tim and I worked together at YMCA Storer Camps. Tim didn’t teach me to play guitar, he inspired me. You see, Tim wrote his own songs, powerful, emotional, poetic visions. I wanted to do that too. So I started learning how to play guitar. Tim had ignited a passion in me.

Recently I found an old notebook that had several of my early songs in it. I pulled a guitar down from the wall and began picking at a few of the tunes. It was amazing how quickly they all came back into my memory. They weren’t good. In fact, all but two of them would probably fall under the Geneva Convention rules for cruel and unusual forms of punishment. But it was fun to see the progress I have made from those early days.

The other Christmas gift that stands out in my mind was given to me by my radio advertising sales rep. Most years the radio station would give me a mug filled with candy or a clock with the station logo on it or some other tchotchke gift that collected dust on a shelf for a year or two. Linda, however, gave me a copy of Roy H. Williams book, Wizard of Ads.

That book ignited another passion in me. I was only halfway through the book when I found out there were two sequels. I ordered the trilogy the next day and started my journey into the world of advertising and marketing. The books spoke to me in powerful ways.

I was thinking about these two gifts recently, and the connection between them.

Both were about storytelling. Songs tell stories. The best ads tell stories. Tim told stories. Roy told stories.

Both were about emotions. Songs speak to the heart. The best ads speak to the heart. Tim spoke to the heart. Roy spoke to the heart. (My early songwriting didn’t really tell stories or speak to the heart. Hmmm … I’m sensing a pattern.)

One of my favorite singer/songwriters is the late Harry Chapin who wrote such fantastic, heartfelt songs like Cats in the Cradle, Taxi, and A Better Place to Be. He was the ultimate storyteller. His live album is even called “Greatest Stories Live.” It is an album I can never grow tired of hearing.

I’ve always loved stories. Love reading them. Love telling them. Every night when my boys were younger I would tell them a story. Often they would challenge me to make one up on the spot. I would ask them, “Real or made-up?” If they said made-up I would ask, “Funny or scary?” Then we’d get into the story. Those nights are some of my most favorite nights of all.

Where is the lesson in this for retailers? It is understanding the connections we make through storytelling.

Linda gave ten businesses the same book for Christmas. I was the only one who took it and ran with it. The other nine set the book on a shelf with the other tchotchkes and never went down that path. For them, Linda worked the same way she always had, with professionalism to a tee. But our relationship grew by leaps and bounds until I became one of her biggest fans and cheerleaders.

You’re going to tell a story. Not everyone is going to connect with it. But those that do connect will become the spark that sets your business ablaze. Don’t worry about the other nine. Focus on the connections you make, not the ones you miss. Those connections will always be deeper and more profound (and more profitable).

Speak to the heart and the hearts that respond will speak of you the way I speak of guitars and wizards.

-Phil Wrzesinski
www.PhilsForum.com

PS My son wrote his college application essay on how he remembers facts and data better when they are in a story than just through plain old rote memorization. There is a lesson in that story for all of you teachers out there, too.

PPS This is the “why” stories work. Tomorrow we’ll discuss “how” to make them work. How to use stories is a big part of my workshops on advertising, but there is also an element of storytelling in The Ultimate Selling Workshop. Make sure you sign up soon.

Did Nike Make the Right Call?

Legendary UCLA basketball coach and hall of famer John Wooden had several rules for his teams. One of them was no long hair and no facial hair.

“One day, All-America center Bill Walton showed up with a full beard. ‘It’s my right,’ he insisted. Wooden asked if he believed that strongly. Walton said he did. ‘That’s good, Bill,’ Coach said. ‘I admire people who have strong beliefs and stick by them, I really do. We’re going to miss you.’ “  -Rick Reilly “A Paragon Rising Above the Madness”

I have always loved that story. Sometimes, to “have strong beliefs and stick by them” will cost you. Are you willing to make that sacrifice?

Image result for Nike 2018 just do it colin kaepernickThat is basically the heart of the new advertising campaign by Nike that features Colin Kaepernick with the slogan …

“Believe in something. Even if it means sacrificing everything. Just do it.”

Not only is that their campaign, it is what Nike itself is doing. The company has taken a hit for this campaign. Stock prices have dropped. People are threatening a boycott of the company. People are making videos showing them burning and destroying their Nike clothing.

The funny thing is these protesters are doing the very thing the ad purports. They are sacrificing ever buying Nike clothing because they believe so strongly against Mr. Kaepernick’s form of protest.

But I’m not here to talk about the politics. Let’s explore instead the decision Nike made to release this ad.

TAKING A STAND

The ad itself is about taking a stand. Nike had to believe there would be short-term backlash. I also believe they will see those gains comeback in multiples. Why? Choose who to lose.

Advertising is interesting. It works primarily like a magnet. Its ability to attract is in equal proportion to its ability to repel. In other words, for every person out there burning a pair of shoes, there is someone else lining up to buy Nike that wouldn’t before. I saw one post on FB from a friend showing the ad. He wrote one word … “#nikeforever.”

Nike is betting on a large segment of the population becoming more engaged with their brand because of their stand. Millennials and Gen Z are two generations who want to know where you stand, and will use that to influence where they spend their money.

One more thing to understand … Nike never actually endorses Colin’s protests, only his willingness to sacrifice for his beliefs. While not everyone will see it that way, many do notice the subtle difference.

NOT AS BIG OF A RISK AS YOU THINK

The other thing at play here is that general public opinion favors the side Nike has taken. According to a 2017 Seton Hall Sports Poll, 84% of Americans believe it is okay for NFL players to protest. 49% did express that the players should find a different way to protest, but that means 51%, or a slight majority, are okay with what Kaepernick has done. I am pretty sure the Nike advertising team knows those numbers and are willing to piss off a handful of people for a chance to more strongly attract the other 84%.

Plus, when you look at the demographics more closely, the number of athletes, especially African-American athletes, who support the protest is even greater. At the end of the day Nike is an athletic apparel manufacturer. Appealing to athletes at the expense of others is a smart marketing plan for an athletic apparel company. Choose who to lose.

WINNING WORD OF MOUTH

Another positive for this campaign is the way it has gone viral. I’m talking about Nike. Every news channel is talking about Nike. Bloggers all over the world are talking about Nike. Social media is sharing the ad by the millions. Nike has probably now received enough free advertising exposure with this campaign to pay Kaepernick ten times over.

The only question left is to see how strongly are these Nike beliefs and how much is Nike willing to sacrifice in the short run to stand by these beliefs (and the gains they will make in the long run).

The lesson here is that it is okay to take a stand. In fact, the two youngest generations who will be influencing most of the spending over the next couple decades are looking to see where you stand on issues. But you have to do it smartly. Nike took a stand that aligned with their Core Values and more strongly attracted their base customers. Back in March I gave you this post to talk about when you should take a stand. Read that and you’ll see how Nike’s decision to include Colin Kaepernick in this year’s Just do it campaign makes even more sense.

Although Colin Kaepernick probably wouldn’t be allowed on a John Wooden team, I believe John Wooden would have admired him.

-Phil Wrzesinski
www.PhilsForum.com

PS The only thing that would make this Nike campaign better, in my opinion, is if the company aligned its own business practices with the same slogan. While founder Phil Knight vowed to clean up the company after reports in the 1990’s of child labor and sweatshop conditions, reports and protests of sweatshops surfaced again a year ago.

PPS Although Nike doesn’t like to see anyone burning their clothing, they probably took into account the fact they have contracts with dozens upon dozens of colleges which will keep some of the demographics of the protesters still in their camp. I doubt too many hardcore University of Michigan fans are going to drop Nike completely. Maybe they’ll cover up the logo, but they already paid Nike for the shirt. I predict Nike’s stock will climb back up by early next year after a strong fourth quarter in sales. They also took into account that many people shop for shoes without a care in the world of the political leanings of the company. Athletic apparel is also a fashion industry. If the fashion fits, people will buy it. If the shoe works because of fashion or design or fit, people will buy it.

PPPS You should see some of Nike’s other ads in this year’s Just do it campaign. From an advertising stance, I love them.

Part of the Solution or Part of the Problem

I was a little harsh last week on a radio station for playing eighteen commercials in a row. I said they were purely paying lip service to their advertisers (their customers) by putting them into a block that long where it would be hard to stand out and be memorable.

Yeah, part of that stand-out-and-be-memorable burden lands squarely on the shoulders of the advertiser, but the radio station did them no favors. From the outside it looked like the radio station was trying to decrease their customers’ chances of success and thus decrease their chances of being repeat customers by scheduling the ads in the least effective way.

What was really happening was the radio station was choosing between two distinct and different customers with distinct and different needs. They were choosing listeners over advertisers.

Image result for listening to the radioThe radio station needs listeners. Those are as critical to the station’s success as the advertisers. Without listeners there are no businesses lining up to pay to reach those listeners. Therefore, radio stations develop programming designed to attract the most possible listeners. Gimmicks like 25-minute rock blocks are designed to attract listeners and keep them from switching channels.

When you’re the only station in your market playing your genre of music, those gimmicks are unnecessary. But when you’re competing with other stations playing the same music, the fight for listeners is real. The winner gets to charge more for advertising. Unfortunately, if the winner, in the process of getting listeners, convinces the advertisers that radio doesn’t work,” they not only bring their own station down, they ruin it for other stations as well.

There is a parallel to indie retail.

If you fail to service a customer in your independent retail store, you jade the experience of shopping local for that customer, affecting her propensity to shop at other local stores.

Here is where the parallel gets interesting …

Most radio stations have no clue that scheduling eighteen ads in a row is hurting their paying customers. Most radio stations have no clue that writing boring, sounds-like-everyone-else commercials is hurting their paying customers. Most radio stations have no clue that scheduling ad campaigns that don’t reach the same listener at least 3x per week are hurting their paying customers. They get so focused on their listeners that they forget to take care of their customers.

The radio stations think that just by having their advertisers on the air those businesses will grow leaps and bounds thanks to the listeners they have attracted. (That’s the sales pitch they give you.)

Most indie retailers have had no training on customer service. Most indie retailers have invested no money into training programs or services to help increase the level of service they offer their customers. Most indie retailers have no formal training program for their front line staff to help them be better servants and salespeople.  We get so focused on the products, prices, and promotions we offer that we forget that our real goal is to service the customers.

Most indie retailers, however, believe they offer better customer service than their competitors and that if they just have the right products, their customers will be happy.

How? By accident? Just because they “care” more?

As an indie retailer you have a much easier opportunity to offer better service than your competitors. First, you have a better customer-to-sales-associate ratio. That allows for more one-to-one sales (assuming you have more than one person working at all times.) Second, you often have the owner—someone passionate and thoroughly knowledgeable on the products—on your sales floor. Third, you can take on the mindset of being awesome, compared to the corporate giants who are just trying not to be lousy.

Whether you take advantage of that opportunity or not, however, is a choice as clearcut as whether a radio station runs eighteen ads in a row.

Here is a place to start.

Two weeks ago I did five presentations at the Independent Garden Center Show on selling and customer service (which go hand in hand). Those presentations were:

  • The Meet & Greet: Working the First Step to the Sale
  • You’ll Score the Sale with Assumptive Selling
  • How to Push for the ‘Yes’—Without Being Pushy
  • Ten Mistakes that Sideline the Sale
  • Yes You Can Get Millennials to Shop in Your Store

Over the next two weeks I will be posting the notes to these presentations in the Free Resources section. Each time I post a new pdf, I will write a blog that focuses on different ways you can teach these concepts to your sales and front line staff. Knowing it yourself and teaching it to your staff are two different beasts.

(Note: those were the titles I used at the IGC Show. The bold words will be in the titles of the pdfs as I post them.)

Not only will you and your team raise your own bar of customer service while selling more at the same time, when your customers run into their friends who won’t shop local because of their experience somewhere else, your customers will be saying, “Oh, then you need to go to …”

-Phil Wrzesinski
www.PhilsForum.com

PS Okay, maybe this time I am being a little harsh on the retailers. Here is the thing. If a retailer ever thinks he or she knows it all, that retailer is part of the problem, not the solution. I spent six months researching those five topics above and learned things in the process I wish I had known years ago. I also learned better, more efficient ways we could have done what we were already doing. Even if it is tweaks around the edges, when you take on the mindset of personal growth and individual growth, it will help your business growth.

PPS I understand the balance for radio stations between catering to the listeners and catering to the advertisers. It is a fine line every advertising-revenue-based entertainment venue must walk. But if radio stations would start by looking at how best to help their paying customers, they might just find a way to create programming that serves both needs. Imagine the radio station where you didn’t mind listening to the ads because they were interesting, heartfelt, memorable, fun, and helpful. Heck, a station like that might just get a few more listeners regardless of their musical genre. Likewise, if a retailer would start by looking at the best ways to service a customer, that retailer would know exactly what products, prices, and promotions make the most sense.

Are Your Ads Standing Out or Getting Lost?

Last Monday I had to rent a van to move some furniture for my son’s new apartment at college. While the rental went smooth, as did the delivery of the furniture, I did something I hadn’t done in a while. I listened to FM radio. In my vehicle my phone is connected via Bluetooth so I listen to my own playlists. In the rental van I didn’t have that opportunity.

I tuned in a classic rock station out of Lansing (94.9 WMMQ) until it broke up as we got closer to Ann Arbor. There I was able to get a classic rock station out of Detroit (94.7 WCSX – yeah, didn’t have to move the needle much). 

Image result for old radio in carOn the ride home, as 94.7 was breaking up, I switched back to 94.9 just as a song was fading out and an ad-block was starting. Nine minutes and eighteen 30-second ads later, the commercials ended and the station started up a 25-minute rock-block.

Nine minutes of advertising! Eighteen advertisers all in a row!

Two days later and I can only remember one of the ads. It was about a golf scramble. I don’t remember when, where, or who it was supporting. I just remember that it didn’t make me want to play golf or support the charity (the only two reasons you would overspend for an outing like this).

The other seventeen ads had nothing memorable. There was a cheap poke at men being stupid, although I forget why. I’m pretty sure there was a car ad with a bunch of numbers thrown at me for how much down, how much a month, and how much interest over how many months if I was an employee. There had to be a drug ad because I distinctly remember being bombarded with all the legal fine print talk of all the ways this drug will make my life worse.

That’s it. That’s all I can remember of eighteen advertisers in an ad block I listened to intently.

How much do you think someone who doesn’t care about advertising is going to remember?

This isn’t a knock on radio. (Although if I were an advertiser on that station, I would be drawing up my contract to make sure I was never in a block longer than four minutes. It is hard enough to stand out among eight commercials, let alone eighteen.) This is a knock on lack of creativity and lack of understanding just how much we tune out advertising.

If you want to get someone’s attention, you have to say something unexpected. If you want them to remember you, you have to make them feel something—anything—happy, sad, angry, nostalgic, or even frustration!

I might have remembered your ad if you ran something like this …

I served them ice cream. 8:30 in the morning and I served my staff ice cream. Some looked at me like I was crazy. Others dug right in. Yeah, I’m a little unconventional that way. Kinda like how we staff the store. I have more staff on the floor than stores double our size. Some think I’m crazy. Others love it. There’s always someone available to help you. It takes a little more ice cream, but it’s worth every scoop. Toy House in downtown Jackson. We’re here to make you smile.

Or this …

She almost fell out of the pew. Her pastor actually called Toy House the Promised Land for kids. Right there in front of a packed church. The lady on her left leaned over and said, “You work there, don’t you?” She nodded. The lady leaned in again, “I love that place.” She couldn’t help but smile. “Me too,” she whispered back. It’s the promised land for kids and adults. Just ask the lady sitting on your left. Toy House and Baby Too in downtown Jackson. We’re here to make you smile.

Your advertising is up against a bunch of obstacles. First, our brains are wired to tune out all ads. Second, we purposefully do what we can to avoid ads. Third, your ad is competing to be seen and heard among thousands of other ads.

  1. Boring doesn’t cut it.
  2. Data doesn’t cut it (see rule #1)
  3. “Me too” ads that sound like everyone else’s ads doesn’t cut it.
  4. An ad that doesn’t connect emotionally doesn’t cut it.

Get me interested by saying something different and original. Then make me feel something. That’s how ads truly work.

-Phil Wrzesinski
www.PhilsForum.com

PS This doesn’t just apply to radio ads. This applies to Facebook and all other social media. This applies to your email newsletter. This applies to the posters you put up in your store about upcoming events. Do something surprising, unexpected, and heartfelt. It doesn’t cost you more—but it does make you more.

PPS This actually is a knock on radio, this station specifically. Just like your goal is to get your customer to want to come back, the radio station’s goal is to want to get their advertisers to sign up again. When a radio station puts this many boring ads together in this long of a block, they are simply looking at their advertisers as short-term money. That’s a lets-pay-some-bills block, not a lets-make-our-own-customers-happy-because-their-ads-are-effective block. I would hate to be a salesperson for this station because they are creating a huge base of businesses who “tried radio” but didn’t see the results. Don’t create a bunch of customers who “tried your store” and don’t ever want to come back.

Winning the Millennial Vote

While doing research for a presentation I am making next week on selling to Millennials I came across an interesting statistic …

Only 51% of eligible Millennial voters voted in the 2016 presidential election compared to 63% for Generation X, 69% for Boomers, and 70% of everyone older.

Image may contain: Phil Wrzesinski, smiling, closeupOf course, the young adult vote has always been hard to come by, but even by comparison, Millennials are behind the other generations at this stage of their development. When Gen X was this age, they were voting at 57%. When Boomers were at this age, they were voting at 60%.

Some of my other research has led me to a possible conclusion why they vote at such low numbers and it can be summed up in one word—Lies.

Millennials were born into the world of hype. They grew up with marketers lying to them. Their BS Meter is more fully attuned to what they read, see, hear, than any other generation before them. They don’t like being lied to. They don’t like being misled. They can spot the BS faster than the FBI. They’ll forsake you at the first hint of falsehood.

They don’t like politicians in general because of how they constantly twist and mangle the truth.

I believe this is what keeps them away from the polls. If you were to give them a “None of the Above” box to check, not only would more of them would vote, but our candidates would become a lot better.

(Note: I have yet to prove this theory. If you know anyone who already has, let me know.)

As for an election, appealing to the young adult voters is not always the best strategy because they typically are the smallest voting block.

As a retailer, however, this group is the current customers of today and the bulk of your customers tomorrow. How well you reach them now could go a long way toward how well you are doing in the future.

The recipe is simple. Avoid the lies. Avoid the hype. Avoid the misleading statements, half-truths, and generalizations. Be honest, especially about the downside of the product. This group of consumers is savvy. If they don’t figure out the misdirection on their own, their online community will spell it out clear as day.

It might not win you an election, but it will win you a whole lot of long-term customers.

I’ll tell you more of what I’ve learned after next week’s presentation.

-Phil Wrzesinski
www.PhilsForum.com

PS Although many generalizations are being made about Millennials, (including the one I made in this blog), I caution you to avoid the stereotypes, especially the negative ones about Millennials being lazy, self-absorbed, and entitled snowflakes. You’ll find an ample supply of those people in every generational group, and plenty of amazing kick-ass-motivated, hard-working Millennials making a difference in this world.

How to Not Frustrate Your Customer

I don’t fit in this world very well. My body wasn’t made for standard sizing. I can’t fly certain airlines without being completely miserable, cramped, and in pain. There are some cars I just don’t like to drive because not only does the seat not adjust to my size, the blindspots hit in all the wrong places. And clothing shopping, while nowhere near as crazy as it is for women, is often a struggle for a long-torsoed, long-armed, small-but-wide-footed, heavyset guy like me.

(There’s an opportunity for a women’s clothing manufacturer to start making more custom-fitted clothing instead of the archaic even-numbered-fits-no-one sizing they currently use, but that’s another post for another day.)

I currently own shirts that are XL-Tall, 2XL, 2XL-Tall, 3XL, and 3XL-Tall. Yet my pants and shorts are typically XL. My head is XL, too (I don’t think that’s what people mean when they tell me I have a big head, though.), but gloves and socks are either medium or large. I keep telling myself I will know when I’ve “made it” because I’ll be buying custom-tailored shirts.

One frustration is going to a store, finding a style I like, yet they don’t have it in stock in my size. Either that or the department is such a chaotic mess that I wasn’t going to find the one item left in my size without an army of hunters. That happens often.

Another frustration is not finding a style I like. I’m not very picky, so that only happens occasionally, but there are simple things too often missing in men’s clothing like pockets in the right ergonomic places. (I prefer function over fashion. Keep it simple, stupid.)

The third frustration is not finding someone to help me when either of the first two frustrations happen, or at the very least, not finding someone knowledgeable enough or willing enough to help me. This, more than Amazon or the Internet, is what is killing department stores these days.

Saturday I found a store free of frustration. I’ve talked about this store before because their advertising is a case study for how to advertise right. In fact, it was their advertising that got me into their store. (Sadly, there isn’t one in Jackson, so this trip took way longer than it should.)

The store was Duluth Trading Post. Their shirts have an extra 3″ in length so that they cover and prevent “cracking.” Their 2XL fit me better than any t-shirt I have tried in any size. They even had the same sized shirt in six different styles and dozens of colors.

In fact, for all of their clothing, they had several styles, all deeply stocked in several sizes. If you’re looking for casual men’s clothing, they eliminated the first two frustrations perfectly (plus, if you’ve looked at their ads, they are answering many of the style frustrations people like me who prefer function over fashion desire).

On top of that, they took pretty good care of that third frustration, too. The staff was friendly, helpful, and available. Not pushy, not bored, not preoccupied with other tasks that kept them away from helping me. They were all busy straightening and stocking, but ready to drop what they were doing to answer a question, find another size, or make a suggestion at a moment’s notice.

One major component of a successful advertising campaign is when the experience you have in the store matches the expectations set by the advertising.

In this case, they blew me away. I expected the product to be good based on the ads. I didn’t know the store would be this well staffed and trained, too.

Here is a sign I saw posted throughout the store. Even the way they advertise for help-wanted goes a step above the normal.

When I told the guy I wanted to take a picture of the sign, he said, “Oh, are you going to come work for me?” I told him I didn’t think I could help him much. The company seems to have figured out a lot of what I teach all on their own.

While it is easier to show you what not to do (because there are so many examples out there), it is fun to show you when a store gets something right. Want to do something fun with your staff? Take them on a staff-training field trip to a Duluth Trading Post (they have women’s clothing, and free coffee and water, too.)

-Phil Wrzesinski
www.PhilsForum.com

PS When I say the experience should match or exceed the expectations caused by the ads, just be cautioned that you shouldn’t go out bragging about your top-notch customer service. That’s a quick recipe for raising the bar of expectation too high to be able to meet it consistently. Instead of telling me you’re great, show me examples of what you do differently. Let me make the determination of how great you are. (And if I believe you are truly great, I’ll tell everyone about you like I just did for Duluth Trading Post.) Fair enough?

Having Fun, Helping Others, Eating Lunch

For the past three weeks I have been making several drives from my home in Jackson to the Oakland County area for lunch. For those of you not in Michigan, Oakland County is one of the three counties (including Wayne and Macomb) that makes up the Greater Detroit Metropolitan area. Oakland County is the northernmost of the three and includes several cities, villages, townships, and lakes.

Oakland County is home to twenty-one Main Street programs in the various cities, villages, and townships, and also home to one of the largest county-wide Main Street support programs. It was Main Street Oakland County (MSOC) that hired me to make these drives each week to do a “Lunch-and-Learn” series of workshops. The workshops are four-week-long tracks on one of three topics: Selling & Customer Service, Marketing & Advertising, or Retail Math.

We rolled this out to three different communities. Two of the communities chose Marketing & Advertising, one chose Selling & Customer Service. All three are reporting back with incredibly positive feedback. Other communities are already bugging MSOC to be included in the next round.

The fun part for me is that I like driving and I love doing these presentations, mostly because I know the difference one or two good tips or techniques can make for a small business.

The fun part for the attendees is that they get a free lunch (or breakfast) and four 45-minute presentations jammed with eye-opening ideas, out-of-the-box thinking, and surprisingly simple techniques to improve their businesses.

The fun part for you is that there is still time to plan a Lunch-and-Learn in your neck of the woods (as long as you are within two hours driving time from Jackson which would include Grand Rapids, Kalamazoo, Fort Wayne, Toledo, Detroit, Flint, and Lansing areas).

Here are the three tracks with class titles and descriptions.

Option A: Marketing & Advertising

  • Week #1 Boosting Your Brand to Attract the Right Business – A quick lesson in branding to show you how a well-crafted brand makes a huge difference in attracting the right types of customers and business. You’ll learn how to uncover the true value in your brand and make your brand stand out in the crowd
  • Week #2 Marketing Your Business on a Shoestring Budget – Seven different ways you can get the word out about your business and draw traffic in without spending a fortune. You’ll learn how to leverage your talents and time to attract more customers to your business right away.
  • Week #3 Making Your Ads More Effective – We hate ads, not because there are too many, but because most ads suck. This presentation will show you the six principles that make the difference between your ad being remembered and acted upon or being simply ignored. You’ll learn techniques even the most highly paid professionals sometimes get wrong, and how you can apply them to your own advertising efforts
  • Week #4 Generating Word-of-Mouth Advertising – We all know Word-of-Mouth advertising is far more effective than traditional advertising, but do you know what it takes to actually get your customers to talk about you? This presentation shows you four proven ways you can generate word-of-mouth advertising. You’ll walk away with tips and techniques that get people talking the very next day.

Option B: Selling and Customer Service

  • Week #1 Selling in a Showrooming World – Online shopping is here to stay. So is the concept of Showrooming, where a customer uses your store to touch and feel the product before ordering it online cheaper. This presentation shows you the two types of customers, how to recognize them, and the very different ways you sell to them. Learn this and you’ll close far more sales than ever before.
  • Week #2 Raising the Bar on Customer Service – Every store thinks they offer Great Customer Service, but every customer can regale several stories where the customer service fell far short. This presentation gives you a different perspective on customer service and shows you how to up your game so that Great Customer Service is only the minimum. You’ll learn how to surprise and delight customers at every turn.
  • Week #3 Building the Perfect Salesperson – Finding the right salesperson is the key for any organization. But how do you identify the perfect fit? This presentation will change the way you look at interviewing and hiring and even training. When you’re done you’ll have a better understanding of how the best companies find the best employees time and time again.
  • Week #4 Training and Motivating Your Team to Perform Their Best – The carrot and stick might be good for a donkey, but it won’t get the best out of your team. This presentation will show you what really motivates people to do their best work and how to get the kind of creativity from your team that sets you apart. You’ll also learn how to turn staff meetings and training times into something your staff looks forward to attending.

Option C: Retail Math

  • Week #1 Reading Your Financial Statements – Your accountant will be glad you attended. This presentation will show you in layman’s terms how to read the two most common financial statements – the Profit & Loss and the Balance Sheet. You’ll learn how they are calculated, what they show, and an intuitive way to use them to check the financial health of your company. It isn’t as scary as it sounds.
  • Week #2 Inventory Management – Cash is King. In retail, the biggest use of your cash is your inventory. This presentation will show you simple and smart ways to manage your inventory levels better including how Open-to-Buy programs work and easy ways to increase cash flow. You’ll learn how to turn slow moving merchandise into cash and make your inventory work for you.
  • Week #3 Pricing for Profit – Most businesses leave thousands of dollars on the table because they don’t understand the principles behind how to properly price their products or services. This presentation shows you how you can raise prices and increase unit sales by harnessing the power of perception. Learn these techniques and you’ll start making more money the very first day.
  • Week #4 Unlocking the Hidden Cash in Your Business – There is more to retail than just buying and selling product. This presentation will show you some different ways to measure your business and some simple ways to make a little extra cash that might just be the difference you need to pay yourself a bonus this year.

If you just read those and said, “Dang, I could use this!” pass this post along to your DDA Director, your Chamber of Commerce, your Main Street Director, your Economic Development Director, your Shop Local director, and tell them, “Dang, we could use this!”

(Heck, you don’t even need one of those organizations. Just get a few other small businesses together and give me a call.)

Then contact me. We’ll go over what it would cost, creative ways to finance it, how to get the food and venues, and what dates to schedule this fall to have some fun helping small businesses grow and thrive, all while having lunch.

Sound yummy to you?

-Phil Wrzesinski
www.PhilsForum.com

PS Not within that two-hour drive? No worries. Instead of four lunches, we’ll do one big brunch and put all four lessons into a three-hour workshop. Call me.

PPS The beauty of what you’ll learn in these tracks is that the dividends are immediate. With many of the lessons you’ll see results right away. Having this information fresh in your mind leading into the busy holiday season will make a huge impact on your bottom line this year. Lets get some dates locked in now.

PPPS If you’re in Oakland County, MSOC is already working on the budget for 2019. Contact John Bry at MSOC and let him know you want in. If you want something this fall, however, check with the other organizations in your community to see if they will help you organize this.

Reaching the Unreachable

I was asked an interesting question yesterday morning at a Breakfast Business Boot Camp I’m doing in Oxford, MI. “How do you get past the moniker of this being a ‘business’ program to reach people who could use what you’re teaching but don’t see themselves as a ‘business’?”

The question was asked by a minister who saw value in the marketing & advertising series I am doing in Oxford this month. She has found great value in the first two classes but hasn’t yet convinced other churches of the value of attending these “business” classes (even though they are free and you get fed).

Image result for out of reachThat is a universal problem with all of us. How do we convince people who we know would benefit from our products but don’t identify themselves as a typical customer of our business to become customers?

“A man convinced against his will is of the same opinion still.” -Benjamin Franklin

There are two ways to reach those people who don’t identify as your typical customer and convince them to shop with you.

The first is through your Core Values. When your business is transparently consistent with your Core Values through your actions, products, and services, and your website, advertising, marketing, social media, etc. reflect those values as well, people who share those values will perk up and take notice.

They still might not believe you have a product or service they need, but they will think of you first when the time arrives that they might need something you offer.

This is the backbone of all branding and relation-building advertising.

Just understand that not everyone will relate to your core values, whether they could use your services or not. That’s okay. You couldn’t service 100% of the population even if you wanted to. Your best customers will be the ones who share your values. Speak to them. Don’t worry about the rest. There are plenty of people in your market who share your values. If you can convince that crowd, you’ll have plenty of customers to keep you busy.

The second way is through Word-of-Mouth. Only when their friends tell them about your business might they even consider becoming a customer of yours.

To answer the minister’s question, first, there will always be people who need what I’m offering but won’t ever see themselves as my “customer.” Second, part of my business model (and yours, too) is to understand that you can’t reach everyone, but if you surprise and delight your current customers, they will help you reach the unreachable. Some of those unreachable will become customers. I am hoping I have done that with this minister and that she will bring some friends to next Wednesday’s presentation.

-Phil Wrzesinski
www.PhilsForum.com

PS If you are in the Holly, MI area and would love to get some free ideas, tips, and techniques to drive traffic through your door, into your store, onto your site, or sitting in your pews, I am doing the same presentation at noon today at the Holly Village offices (Marketing and Advertising on a Shoestring Budget) I did yesterday morning in Oxford. Next week I’ll show you how to Make Your Ads More Effective (Oxford on Wednesday at 8am, Holly on Thursday at noon.)

PPS Yes, this post is as much about Market Share and Customer Service as it is about Advertising. You got that, right?