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Your Signs Tell Customers More Than You Think

I snapped two pictures of signs recently. I probably could have taken several. Apparently proof-reading is a thing of the past.

One sign I drive by regularly is on too busy of a road to safely snap the pic. It says “Comeing Soon.” I cringe every time I pass it. I know two of my regular readers who cringed just reading it here.

TYPOS/GRAMMAR

I took the following pic on a recent trip to Las Vegas:

I’m not sure whether auto-correct or the sign maker doesn’t know the word tarot. Maybe there is a new type of cards made out of potatoes? The real question is, would you trust the readings of a psychic who couldn’t foresee this typo on her sign?

Typos and grammar mistakes are so common on signs now that we almost take them for granted. In fact, some might argue that the mistakes make you look at the sign longer, making the sign more effective.

I disagree.

I’m not stopping for a psychic card reading, no matter whether it is fried, mashed, hashed, or julienned. I don’t trust her. I also lost trust in KFC the other day while reading a grammatically incorrect sign behind the counter. It just set me off.

Those signs are the easy ones to fix. Proof-read them. Give them to a writer to proof-read them. Then proof-read them again. Don’t trust your print-shop people or your computer to fix any mistakes you’ve made. You have to fix the easy stuff yourself.

If you can’t get the easy stuff right, your customers won’t trust you with the more difficult stuff.

The second sign I want to show you is a little different. I found this on the door of a McDonald’s restaurant.

This sign has a different message (or two).

On the surface it basically says to anyone under 18, “you are being judged and labeled by the actions of someone else who happens to share one characteristic of yours—age.”

The second message, however, may be the more damaging. To everyone over 18 it also says, “this establishment gets visited by young hooligans and we have no way of stopping them short of trying to keep them from coming in—eat at your own risk.”

Do you see the problem?

One picture I wish I would have taken was a toy store I visited years ago. The front door was covered in small hand-written signs each starting with the word No. “No Public Restrooms.” “No Pets Allowed.” “No Backpacks” “No more than 2 unaccompanied minors at a time.” “No Shoes, No Shirt, No Service, No Exceptions.”

You couldn’t even see in through the door. You just were bombarded with handwritten placards saying No, No, No, No, No.

The last word any retailer should want rattling around in a customer’s brain is the word No.

Whether the McDonald’s management or the “No” toy store understand it or not, they are changing the emotions of the customers entering their establishments.

The two questions you should ask before posting any sign are:

  1. Is the sign free from typos or grammatical errors?
  2. How does the sign make my customers feel?

Retail is a game of managing emotions. Happy customers who trust you will spend way more than uncomfortable customers who don’t.

-Phil Wrzesinski
www.PhilsForum.com

PS There are positive ways, even fun ways, for any store to post all its restrictions. “Please leave your backpacks up front where our staff will guard them with their lives.” “Our carpet cleaner thanks you for leaving your food and drinks outside.” “For our customers who have allergies, we thank you for leaving pets outside.” Manage the emotions to win the sales.

9 Out of 10 People Don’t Recommend Your Store

I think a lot about Market Share. Maybe too much. I find it the most fascinating piece of data you can track because it tells you so much more about how you are performing than just sales, profits, or cash flow.

For one, it tells you how well you are competing in your market. If your share is growing, you’re obviously doing something right. If you’re losing share—even if your business is growing—you have a leak in your ship that needs fixing.

It also helps you focus your marketing. Once you realize that 9 out of 10 people in your area don’t shop in your store (results may vary but most indie retailers have less than 10% share of their market), you can hyper-focus your marketing on just one of those nine “people.” Win that one and you’ll double your sales.

Make the “one” the loudest voice in the crowd.

Let’s talk about those nine people for a moment.

I was at an event recently that had a panel of expecting moms. They were asked where they went for information to buy baby products. All six answered Friends and Online Reviews. None of them answered Sales Staff in a Store. None of them said Advertisements for Baby Stores. None of them mentioned Informational Fliers at the doctor’s office. Not one of them discussed Emails from brands or stores. They barely talked about Instagram influencers (and not in a positive way).

Friends and Online Reviews.

Even the online reviews didn’t get a favorable viewing. Most of the panel said they didn’t fully trust online reviews but would read the negative reviews in detail. They trusted most the information from friends who already had children.

From this panel you might conclude that the most important form of advertising for your business is the word-of-mouth referral from your happy customers. You would be right.

Yet nine out of ten people don’t refer your business to their friends. That’s a lot of friends telling their friends to go elsewhere. Not one member of our panel had visited an independent specialty baby store. Only a handful had gone to a Buy Buy Baby chain store. Most did their shopping/registering at Target because nine out of ten of their friends went there.

It didn’t help that there was only one indie specialty store in their town and it had a limited selection. I would have loved to see the responses of a panel like this in a town with a powerful indie store. I think Sales Staff at a Specialty Store might have made the list of trusted sources.

As it is, the lesson for all of us is simple. You have to give that one out of the ten such an amazing experience that her voice drowns out the other nine when the subject comes up where to shop.

Conversely, you cannot allow one bad experience to walk out your door. You’ll be dead to her circle of friends. Yeah, you might have to eat some crow from time to time, but it is better to eat the crow now to get the chance to eat the filet later.

Retail is not a money game. It is a game of the heart. Win your customers’ hearts and the money will follow.

-Phil Wrzesinski
www.PhilsForum.com

PS Not sure how to calculate your Market Share? Check out the Market Share Diagnostic Tool. It will not only show you how to calculate your Market Share, it will tell you why this is the second most important part of your business to track.

Be Yourself, Be a Unicorn!

I love those signs that say, “Be yourself. Unless you can be a Unicorn. Then be a Unicorn.” (Substitute Batman for Unicorn for those who identify that way.)

Be yourself is the best advice I could ever give to any business owner. Know your Core Values, what drives you in your life, and be them so clearly and proudly that everyone knows exactly who you are.

Those who share your values will become lifelong fans and evangelists of your business. You’ll always have a core of supporters.

HABA USA Unicorn Rainbow Beauty

To truly stand out in retail, however, you also have to be a Unicorn. You have to be so different from every other retailer that people believe you to be magical.

I say this in light of the article that came out last month stating that the Retail Apocalypse is still upon us with over 5800 stores closing in 2019 alone (and that’s only through March!)

Before you panic, 2,500 of those stores are Payless Shoes. Another 390 are Family Dollar stores closing after Dollar Tree bought them out. Other big chains with big closures include The Gap, JC Penney’s, Chico’s, and Gymboree.

None of those stores were Unicorns. 

The Gap was the closest, but no one under forty remembers when they made their splash on the retail scene. Their horn fell off decades ago.

The culprit most often blamed is Amazon, followed closely by Millennials. While Millennials probably had a lot to do with Victoria Secret closings (Hey, VS, have you noticed society has mostly shifted away from your idea of sexy lingerie?), they and Amazon are more symptoms than causes of retail store closures.

The real culprit is the stores themselves.

Chain stores are dropping like flies and they only have themselves to blame.

First, we are over-saturated with retail to begin with. Too many chains competing for not enough dollars. The chain stores work on the premise that the more stores they have, the more revenue they would be able to collect to “make it up with volume” which led to rapid growth and expansion well beyond what the market could bear.

Second, these stores invest next to nothing in training for their managers and staff. A couple of my former employees went to work for chain stores and showed me their employee handbooks. Sixteen pages on how to use the time clock and what will happen if you get caught breaking a policy, but not one word on how to create a relationship with a customer or even how to sell.

Third, there is little to differentiate one chain from the next. They all have the same merchandise from the same manufacturers. They all have the same lack of service that begins at the top with poorly trained managers who know nothing about team building, HR, or how to teach and motivate others, let alone how to merchandise and run a customer-centric store. They all fail to grasp how much of the population has moved on from the materialism in the 80’s and 90’s to more sustainable approaches to life. They all think big discounts = loyalty. They all chase the shiny new baubles like omni-channel, big-data, BOPIS, and social media, thinking those will be the big fixes that will help their businesses.

Nothing about any of these stores is or was unique, exciting or magical.

The downside for you is that all of these lousy experiences in other stores are driving customers online and making online shopping more prevalent and convenient.

The upside for you is that it is much easier to become a Unicorn of a store than ever before.

The bar is so low now that stores that care about their customers through their actions and policies stand out like lighthouse beacons on a desolate ocean of crappy retail.

Toys R Us is the only chain store closing where I actually heard customers lamenting the loss. No one is lamenting Payless going away. No one will even remember Charlotte Russ stores once they’re gone (if you even knew they were there). Heck, most people thought JCP was already closed!

Be yourself. But be the most Unicorny version of yourself you possibly can. Amazon is the default when you don’t give your customers a reason to believe in the magic.

-Phil Wrzesinski
www.PhilsForum.com

PS If one of your Core Values is Nostalgia, celebrate those nostalgic moments in your customers’ lives with gusto. Ring a 32-pound brass bell on their birthdays and put their picture up on your wall. If one of your Core Values is Education, hit the road and do Free Classes on how to better use the products you sell. If one of your Core Values is Helpful, have a high school kid with a golf umbrella escort customers out to their cars on a rainy day.

PPS If you aren’t well-versed in Team Building, hire someone to help you build your team. (Note: check your local YMCA or Y-Camp.) If you aren’t well-versed in motivating your employees, I suggest you read Drive by Daniel H. Pink or Maestro by Roger Nierenberg. If you aren’t as good at teaching the sales process as you’d like, check out my Free Resources – The Meet-and-Greet, Close the Sale, and How to Push for Yes. The resources are out there to help you grow your horn.

Making the “Experience” Over-the-Top

Last night my bracket got busted. As a diehard University of Michigan Wolverine fan, my NCAA tournament bracket lasts until the Wolverines bow out. (I know, I know. I shouldn’t always pick them to win it all, but then I would have to root for them to lose, and I can’t do that.)

Brackets for the NCAA tournament are fun. They are also an easy tool to implement for a promotion or event in your store.

One year we had a “March Games Madness” where every Friday at Game Night we played four games and voted on the best. After four weeks we had a “Final Four” and in week five we crowned a champion. We had brackets for people to fill out and seedings for the games. Not only was it fun and attracted a decent (and returning) crowd, it gave us fodder for social media marketing. (This game is a “Final Four Game.”)

Another year we set an unofficial world record for having the most people playing the game Snake Oil at one time.

At a Breyer Horse event we had a stick-horse obstacle course complete with a bale of hay and a water element.

For our Disney Princess Day we had a quartet from the local symphony play Disney songs on our stage.

Go big or go home.

Put some kind of Wow Factor into your events and two things will happen. First, your events will get customers talking about your store, coming back more often, and bringing their friends with them.

Second, and more importantly, you will separate yourself from the influence of negative experiences at other brick & mortar stores.

It doesn’t just have to be an event, either. Go big in other ways. I knew a jewelry store that had a $30K diamond engagement ring and special “throne” to sit in to try it on. I just visited a toy store recently with an eight-foot tall Steiff giraffe that sells for $20K.

Take the money from your advertising budget if you have to for a splash item because that’s what those two pieces represent.

Go big in your services, too. Serve food/drinks. Have valet parking. Do a coat check. Have expert demos. Have someone with a large golf umbrella walk customers to their cars on rainy days.

Those are the actions that set you apart, that insulate you from being lumped in with all the other retailers out there. Your toughest competitors now are not the other stores that sell what you sell. Your toughest competitors are the horrible experiences people have at other brick & mortar stores that keep them from shopping in any brick & mortar.

Set yourself apart and you become a category all to yourself, insulated from those negative experiences that drive people away.

-Phil Wrzesinski
www.PhilsForum.com

PS Actions speak louder than words. Do these things. Don’t advertise these things. Talking about them makes them less special. Just doing it and letting your customers talk about it is what sets you apart. (Yes, you should advertise your event, but don’t give away all the surprises in how you’re going over-the-top. In time, your customers will be showing up just to see what crazy stunt you’re going to pull off this time.)

Upgrades Versus Shifts – Choose Wisely

Back in the 1990’s we had four big spiral notebooks on a table in the office. I’m talking huge, four-inch-wide, thick plastic covered, heavy-duty spiral notebooks. They contained our Inventory Sheets and tracked all the inventory in our store by vendor, item number, and price.

My dad created these sheets. Designed them himself and had them printed by the ream. There was a stack of blanks in the office right up until the day we closed.

These sheets were awesome for tracking purchase orders, receiving, and sales. If you wanted to place a new order, just do a quick physical inventory of that vendor, enter it onto the sheet and you could see what we had sold and needed to reorder.

That’s my dad with some old school cash registers behind him

Prior to the computer, this system was a godsend for us to keep track of 500 plus vendors and 30,000 skus. After the computer it was a relic.

When we switched to our second computer system in 1998, the inventory sheets were completely obsolete. My dad held onto them until he retired, but the computer streamlined the process so much that the sheets became a waste of time. In the old days it took my dad three days to write a Mattel order. With the computer I could do it in under an hour.

Sure, there was a learning curve to the computer. But the end result was a huge savings of time and resources. It was a major Upgrade.

I’m going through another form of Upgrade in my new job. Today I have been learning how to use Microsoft Teams. In my role I have to communicate with several people about several issues all day long. Often I have found myself sending out multiple texts and emails to try to stay in touch and get info. Teams is going to help me keep that organized and eliminate a lot of the time I spend tracking down old email threads, texts, and contact info.

Sure, there is a learning curve. But I can already see the end result being much better communication and less time spent tracking down information. Pretty soon it will be as natural to me as sending out a text or sharing something on Facebook.

Upgrades exist to make your life easier in the long run. 

That is the important distinction. If you look beyond the short-term pain and see the long-term gain it is an Upgrade. If there is no gain, it isn’t an Upgrade, it is merely a Shift.

Shifts can be dangerous. They often are sold as Upgrades because of their newness. They sometimes masquerade as Upgrades because of new features they offer that you’ll never use.

Just like the Upgrade, they take up a lot of time and money at first, causing a lot of short-term pain. Unlike the Upgrade, they have no long-term gain. They only move your resources from one place to another.

You’ll see these Shifts most often in advertising. Online advertising, social media advertising, and mobile-marketing are all Shifts, not Upgrades.

The best way to avoid Shifts is to ask this most important question …

Will this shiny, new tool save me Time or Money?

If you cannot answer Yes, it is most likely a Shift, not an Upgrade, and probably not worth your limited resources. Now you know the difference.

-Phil Wrzesinski
www.PhilsForum.com

PS Sometimes you have no choice but to make a Shift because the old way is obsolete and no longer available (think credit card chips). Hopefully you can find a new way that also brings you a benefit (like Apple Pay capabilities.) When someone pitches you a shiny, new tool, ask yourself if it is merely a Shift or truly an Upgrade. Always wait for the Upgrade.

Different Eyes See Products Differently (And That’s Okay)

I got a new laptop. While I was preparing to transfer files from the old laptop, I figured now was a good time to purge. I went through all the document files one by one, deleted all the duplicates, consolidated all the pictures, and opened up files I haven’t seen in over 10 years.

One of them was a staff meeting idea. The concept was to flash certain words on a screen and have everyone write down their own definition of the word. Some of the words would be applicable to our situation like “service”. Others could be words that have dual meanings to begin with like “experience” (noun or verb?). The point of the exercise was two-fold. First, we would see how different people interpret words differently. Second, I would see how the members of my team interpret important words like service.

We all come from different backgrounds with different life experiences, so we see and interpret things in our own unique way.

Never was that more apparent than at Toy Fair last week.

My retail customers came in looking at our brand new offerings. For everything I showed I had some retailers who loved it, some who hated it, and some who just said, “Meh.” Not everyone who loved it, loved it for the same reasons. Nor did those who hated it, hate it for the same reasons. In fact, I had one retailer give me a reason for loving an item and another gave me the exact same reason for hating an item.

Just because the first customer who sees your new offerings hates them doesn’t mean they are bad.

Just because the first customer who sees your new offerings loves them doesn’t mean they will do well.

I missed one of the biggest fads of the last two decades in the toy industry. It was Webkins. I loved the toy. Loved it so much that when it was first introduced, I bought the display and the TV monitor to show the video of how it worked. Got it in August. By December 1st I had only sold 2 of 144 pieces. That night I clearanced them all at 50% off.

Do you know when the craze hit? December 2nd. The first customer of the day walked in and asked, “Do you have any Webkins?”

She bought six. By the end of day on December 4th we were sold out. I never reordered and never looked back.

Some of the negative feedback we got in the booth was really good. It was constructive criticism of things we can (and will) change. Some of the positive feedback was location-specific to the person and store giving us the feedback. Knowing the difference and knowing how to decipher the feedback you get goes a long way.

“You are not a hundred dollar bill. Not everyone is going to like you.” -Meg Cabot

We all see the world differently. When you look through the other person’s eyes, however, you see things in a whole new light.

-Phil Wrzesinski
www.PhilsForum.com

PS Normally I like to give you something concrete to do in these posts—an action step or two. This post does not. But it does set up the next couple posts where I’ll try to show you what happens when you look through someone else’s eyes. It will transform your marketing & advertising, your customer service, your staff training, and even your merchandising. Stay tuned.

Don’t Just Go With the Tide

If you have ever studied the topography of Lake Erie, you’ll know it is one of the shallowest of the Great Lakes. It is shaped much like a swimming pool with a shallow end to the west (25-30 feet deep) and a deep end over near Buffalo, NY (210 feet deep).

When the winds come strong out of the west they blow that shallow end all down to Buffalo. Storer Camps used to have a sailboat docked at a marina on the west end and some days the boat would be resting on its keel at the dock because the water had drained completely out of the marina and blown east.

All boats rise with the tide. But also all boats fall.

Your business rides on several tides.

There is the tide of the economy. When the economy is booming, even the mediocre retailers can make money. When it is in the dumps, only the smart retailers who shored up their business rather than just rising with the tide are making any money. (This affects you both locally and globally.)

There is the tide of your sales team. The worst person on your sales team is blowing all the water to Buffalo. Hopefully you have enough good people pushing the water back.

There is the tide of products. A good fad or hot trend can fill the marina fast. You just never know when it will drain.

There is the tide of demographics. As they grow, so does your sales, but as they grow, so does your competition. The competition just doesn’t wash away as fast as the demographics might.

People who live or work along the shores of the Great Lakes and the coasts pay close attention to the tides. Their tides are predictable.

Your tides are not.

But you still need to be paying attention to them.

Are you tracking the local and global economy and adjusting your inventory to match?

Are you measuring your sales people and training up the lower producers?

Are you following the trends in your industry and comparing them to past trends to see how your store fares with each passing fad?

Are you measuring the demographics and watching for any major changes and how those would impact you?

All boats rise with the tide, but only the smart boats know when to set sail to take advantage of the rising (and lowering) tides.

Sometimes it is best to set sail and go get those sales before the tide falls too far.

-Phil Wrzesinski
www.PhilsForum.com

PS I’m channeling my oceanography degree and sailing background for this post. Just remember that when you’re rising, so are your competitors. In a sailboat race the lead boat always wants to do whatever the trailing boat does to keep that boat from gaining. The trailing boat, however, has their best chance to overtake the lead boat by following a different path.

(Repost) What to Do with the First Quarter Blues

(Note: this is a repost from March 2, 2018)

I went for a walk/jog down the Falling Waters Trail a couple days ago. It was sunny and in the mid-50’s. My dog, Samantha, and I enjoyed getting out of the house. There is something about those early spring days when you get that sense of renewal, that rebirth of energy. Of course, today, I stare out at five inches of snow courtesy of our bipolar vortex. Just when you think you’ve turned the corner on winter, Mother Nature smothers you with another blanket of white. So much for that rebirth of energy.

It’s easy to get the blues.

Image result for cabin fever clip artEspecially if you’re a fourth-quarter retailer. January feels like a relief from the exhausting marathon of Christmas. But by February, when the bills have all been paid and it doesn’t seem like any new cash is coming in, it gets to be a drag.

If you’re a jeweler or florist, you get Valentine’s Day. If you’re a toy retailer or candy shop you get Easter. But that isn’t a lot to carry you through the First Quarter Blues.

Here is a list of different things you can do during the quiet times to combat the blues.

  • Paint the store. A fresh coat of paint brightens the mood and lifts the morale of the staff.
  • Re-do all your signs. Print new ones, change wording, make them more fun and in alignment with your Core Values.
  • Work on new selling techniques. Hold trainings, do role playing, practice new techniques.
  • Make displays for out-of-your-category gifts. For instance, January-March are big baby shower months (no one wants to hold them in November/December because of the holidays). Put together an endcap of great “baby shower” gifts – even if you don’t sell baby products! A hardware store could do a display of “build your nursery the right way”. You could also do “gifts for the mom/dad-to-be.” Get creative. The same is true for weddings. The bridal shows are January-February. Bridal showers are March-June. Put together “bridal/wedding gifts” like board games if you’re a toy store (the family that plays together, stays together), or tool kits. I got a drill as a wedding gift from a thoughtful friend.
  • Get creative with your social media. Post often about a wide variety of things (not all related to selling your products). Have a contest among your staff. Make them all admins. Allow them two posts a day. See who can get more comments and shares in a week. Pay the winner $20. Do it for five weeks. It will be the best $100 bucks you spend on social media this year because you’ll see what kind of posts move the needle.
  • Have a contest of some kind. Maybe a raffle for charity. Maybe a “taste-test” where you put two competing products side by side. (I can see this for tools, for toys, for shoes, for cleaning products, for foods, for strollers …) Maybe a competition. We did a five-week March Games Madness where we pitted four games against each other for four consecutive Friday nights. The game voted the best each week made it to the final four. The fifth week we crowned the champion.
  • Spend more time networking. Send everyone on your team to different networking events.
  • Rearrange the floor layout. Stand at the front door and look around. See what catches your eye. Redesign the store so that your customers can see farther into your store. And make sure something cool and compelling is in those sight lines.
  • Clean and fix everything. Everything.
  • Make your bathroom cool. When George Whalin wrote Retail Superstars: Inside the 25 Best independent Stores in America, he mentioned the really cool bathrooms for 14 of the 25 stores.
  • Make a list of your top 50 or 100 customers with phone numbers. Assign them to your staff to call each person and personally thank them for shopping in your store. No sales pitch. Just a simple, “I want to thank you for being a customer last year. We truly appreciate your business. Have a great day!”
  • Make a goodie-bag for those same top 50 or 100 and personally deliver them. Free. No questions asked. (Thank you Brandy & Eric for this idea!)

The customers will be back soon enough. You have new products rolling in. Take this time to plant the seeds for future sales by refreshing the store, training the staff, and getting creative with your marketing.

That’s how you beat the First Quarter Blues.

-Phil Wrzesinski
www.PhilsForum.com

PS I would love to hear your suggestions for additions to this list. I know there are some really good ideas out there. Help me share them with the world.

How Much Would You Pay?

Have you ever walked through a store, saw a display, and thought, “Wow! Someone would actually pay that much for that?” Of course you have. We all have. It is the internal pricing game we all play called …

“How Much Would You Pay?”

Unless you’re the only option in town, pricing is a game of finding that sweet spot in price that matches the answer most people would pay for your product or service. The better you determine that price, the better your sales and profits.

And before you think that lowering the price is the only way to go, remember that some people will look at a really low price and think, “What must be wrong with it?” You can cheapen the perception of your products or services by pricing them too low.

I knew a guy who sang at events. He was getting tired of the gigs. He asked me if I thought it was smart of him to double his price so that he would get fewer gigs and still make around the same amount of money. I told him to expect the opposite to happen. I was right.

His bookings doubled with the doubling of his price because people figured if he charged that much he must be really good. In other words, his earlier price was too low. Fortunately, the extra bookings along with the higher price re-energized his career.

I call this concept Perceived Worth. It is something we all do when shopping. We look at an item and determine its Perceived Worth (PW). Then we look at the price. If the price equals the PW and we’re in the market to buy it, we place it in the cart. If it is too high or too low, we hesitate. We won’t make the purchase until we can justify the price discrepancy.

If we don’t need the product, our PW for that item is zero, and we move on, but we’ll still play the Pricing Game to see if what we would expect to pay matches the price.

I NEED YOUR HELP

I tell you this because I would like your help on the PW of a service I have been asked to perform.

You may recall a couple weeks ago I gave you five Self-Diagnosis Tools to help you take a critical look at your business. Those tools were:

I was asked what it would cost to hire me to come to a business for three days to perform those five diagnostics.

I would like to know what you think the Perceived Worth would be to have someone like me do a complete diagnostic evaluation of your business using those five criteria.

I would visit your business for three days. I would need access to your financials (Balance Sheet and Profit & Loss plus your Average Inventory at Cost). I would need to see what Advertising you have done (and any contracts you’ve signed for advertising). And I would need a couple hours of your time over the three days to answer questions here and there.

At the end I would write up an evaluation showing where you were doing well, where you needed attention, and recommendations for what to work on next, including a priority of where to put your resources first.

Two Questions:

  • What would you EXPECT to pay for such a service?
  • What would you be WILLING to pay for such a service?

I am curious to see your responses. You may send them to me via email or PM, leave a comment on this blog, or comment on Twitter, LinkedIn, or Facebook.

-Phil Wrzesinski
www.PhilsForum.com

PS Even if you don’t own a business I am curious to see your response. I am trying to gauge whether there is a viable market for this service or not. I’d love to know what people perceive such a service to be worth. There are no wrong answers.

Self-Diagnosis Tool #5 – Marketing & Advertising

My favorite class segment in the Jackson Retail Success Academy was always the Marketing and Advertising Segment. One portion of that segment was dedicated to Media, Myths, and Money. We would discuss all the various forms of media and how/when to use them properly. We also discussed several myths about advertising. One of the biggest myths was this …

Advertising will fix your business.

No it won’t.

If your customer service sucks, advertising will only draw in more people to find that out and tell their friends to beware.

If your product selection sucks, advertising will only find you more disappointed and empty-handed customers.

If your market isn’t big enough to support your business, advertising will only drain your coffers faster, and hasten your demise.

That is why, of all the Diagnosis Tools, this one is last.

Abandoned Boat on the Pond by the House

Think of your business like a boat. Your Core Values are the hull and body of the boat. Your Market Potential is the size of the body of water. Customer Service is the driver of the boat. Inventory is the engine/oars. Advertising is the launching of the boat. Would you launch if you knew you had a leak, didn’t have a driver, or had an engine not working? Of course not.

You need to make sure your boat is rock solid and ready to go before you launch. (Check out Tool #1 Core Values, Tool #2 Market Potential, Tool #3 Customer Service, and Tool #4 Inventory Management if you think your boat has even the tiniest of leaks.)

Advertising will not fix your business, it will only speed up what was going to happen anyway. If your boat is leaking, advertising will just sink you faster.

DEFINE THE TERMS

First, let’s understand the difference between “Marketing” and “Advertising”. Marketing is everything you do to attract customers to your store. Advertising is a subset of Marketing. It is the paid marketing you do through a form of media.

MARKETING

Marketing includes your building, your signage, your front door, the “Open” sign on your building, the events, activities, and classes you hold inside and outside your building, the networking you do by joining clubs and being involved in your community, the free publicity your garner, etc.

One of the first steps in this self-diagnosis is to list all of the ways outside of Advertising that you are Marketing your store. For some ideas of different things you can do, check out the FREE eBook Main Street Marketing on a Shoestring Budget.

You should have a healthy list of ways you are marketing your business outside the realm of traditional advertising. Fortunately most of these ways cost more time than money. If you don’t have enough customers—the whole reason you’re marketing your business—then you should have the time.

Once you have that list, see which Core Values are evident in each activity. All of your Marketing efforts must be aligned with your Core Values to be most effective. If there is anything you are doing that doesn’t speak to your values, change it or drop it for something else.

ADVERTISING

The next thing to do is to look at your paid advertising through the same lens as your other Marketing efforts. Pull out all of the ads you ran last year. Look closely at the message you sent. Ask yourself these six questions …

  • Does it look or sound like an ad? Chances are good that it does. Did you know our brains are hard-wired to ignore advertising? Maybe you should create something that doesn’t look or sound like an ad to keep from being ignored.
  • Does it tell a story? Stories are more interesting, get people to pay attention, and are more memorable than facts and figures. Your ad needs to tell a story if you want it to work best.
  • Does it make only one point? The person seeing or hearing your ad will only remember one point at best, so only give her only one point to remember.
  • Does it speak to the heart? Emotions always trump logic. Always. What emotion does your ad invoke?
  • Does it speak to your tribe? Does it align with your Core Values? If you want to attract better customers, speak more directly to those people who share your values and ignore everyone else.
  • Does it make your customer the star? Ads about you will be ignored. Ads about your customer and what you can do to help her will gain her attention.

The message is more important than the media. Here is another big myth in Advertising …

You must reach the right people.

Nope, nope, nope, nope, nope. You can reach all the right people but if you don’t say the right thing, all is for naught. Also, everyone you reach is potentially the right person because even if they aren’t your customer, they know someone who is your customer.

It isn’t who you reach that matters. It is what you say to the people you reach.

Get the message right and everything else will follow.

(Note: to help you choose the right media for your business, go to the Advertising Media Reference Guide and check out your options.)

BUDGET

The last thing to check is your budget. How much should you spend on Marketing? Notice how I said Marketing, not Advertising? Part of your Marketing is your location. If you spend a lot in rent to be in a high-traffic area, you don’t have to advertise as much as the guy under the bridge on the wrong side of the tracks. The Cinnabon store at the airport doesn’t spend a penny on Advertising. He just bought a fan to blow that cinnamony goodness out into the terminal. That’s his Marketing Budget.

There are many formulas for calculating a budget. The one I like best came from Roy H. Williams, aka The Wizard of Ads. He suggests you take 10-12% of your Gross Sales as your “Total Exposure” budget. Then multiply that by your Percent Markup (this is different than Profit Margin – the formula looks like this Percent Markup = (Gross Sales – COGS)/COGS) to adjust for your pricing and profit. Then subtract your rent from that number to find out what you should spend on Advertising.

For many businesses, however, that leaves a budget close to zero as rent is often 10-12% of your budget.

I will tell you to push that upper limit to 15% of Gross Sales, but only if you can find that money without taking it out of Payroll. If push comes to shove, Great Customer Service is always more important than Advertising. It is what drives your boat.

-Phil Wrzesinski
www.PhilsForum.com

PS There you go … Five tools for evaluating your business to see where you need to improve as you sail into 2019. Take a critical look at all five in order and you’ll find your silver bullet for success. If you don’t think you can be those critical eyes because you are too busy trying to drive the boat yourself, call me. I’ll come do an analysis of your boat using all the criteria in these five Tools and show you where the boat needs work.