Business processes, business technology, online marketing. I am Phil Ayres, 20 years in enterprise software and business improvement. And blogging on and off since 2006.
Monday, December 17, 2012
APE it up. Author, publish and market your own creative genius.
Wednesday, March 14, 2012
Growing customers - advertise to attract, reward to retain
In the last week or so, Constant Contact has released a new 'deals' product designed to give Groupon and LivingSocial a run for their money. Or more importantly, Constant Contact's SaveLocal aims to help small businesses control the deals they offer. With discounts they can afford businesses attract new customers by rewarding current customers that share their coupons with their network. It is an interesting concept, and just one of the tools that small businesses can use to attract new customers. But do deals just downplay the value of what a business offers, cheapening the product and the vendor?
The concept of SaveLocal, is that by offering rewards to current customers for sharing your coupons with friends, you are more likely to grow a local and loyal new customer base. Today's New York Times online article, A Groupon Alternative Aims to Offer Small Businesses a Better Deal talks with Constant Contact's CEO to flesh out the details of the way it works. When it comes down to it, the argument is that small businesses typically thrive on referrals and endorsements from current customers, since the new customers they bring in are likely to provide repeat business.
Groupon on the other hand does the opposite, focusing on a mass of previously unknown wannabe customers sharing with their bloated social networks, in order to satisfy the entry requirements for getting 50% or more off. The Groupon masses are likely to just take the discount and never be seen again. Which means that your discounted rate minus fees still has to cover costs, because a businesses is unlikely to recoup much from a new customer base. If profit margins are over 75% on your products (remember that Groupon takes half of your discounted coupon value, so you effectively see 25% of the full price) then Groupon can get you a flood of customers really fast. Some may come back.
This is the issue with deals to attract new customers: like any discount scheme, the customer's expectations have now been set based on the discounted rate. In future they may not want to pay double what they paid the first time. And if a sub-standard service was offered, there will be no repeat business anyway. There are not many wins in this.
For years, this approach to attracting and retaining customers has worked for companies big and small:
market for awareness, advertise to attract, reward to retain
Advertising your products at full price, spending 25-40% of your sales on advertising may ensure that your brand doesn't suffer a devaluation up front. With new customers in place from advertising, the SaveLocal approach can then help keep them loyal, since they've paid full price for the products and now feel rewarded for coming back again and again, and encouraging their friends to do the same.
So it seems that deals can be seen less as pure devaluation of your products and more as rewards for loyalty, as long as you use them right. Huge discounts to an unknown crowd seems like a risky proposition. I think I'll stick to marketing with valuable content (does this blog count?!), using free business listings (Manta, Google Places and Consected's own Roaming Local), Google AdWords for online advertising (contact me for a $100 coupon to get started - no obligations), and rewarding my current customers in very individual ways.
A post from the Improving It blog
Let us help you improve your business today. Visit www.consected.com
Thursday, March 01, 2012
Business excellence - how do you know you've got it?
There is a concept of 'excellence' that is often used in business improvement to show that we are doing something so well that everybody agrees that we are excelling at it. On the BPM ebizQ forum this morning, the question came up of what is process excellence, and what is a key metric to show it?
A great response from Steve Weissman sums up the difficulty of measuring any form of excellence:
It's sort of like pornography in that – as Supreme Court Associate Justice Potter Stewart famously once wrote – it's hard to define but "I know it when I see it."
My thinking was along similar lines, that excellence is hard to measure but easy to know when you observe it working in practice:
I'll suggest that process excellence is an emotional response to a process or set of processes. "Happiness" could be the very untechnical metric.
If everybody is truly "happy" with an organization's processes, there is a good chance they are excellent. When we don't have process excellence, it is hard to measure but easy to observe: users don't fully adopt them and there is rarely additional investment.
As with anything we do in business, happiness with processes just means that they are delivering the results that everybody wants without getting in the way. So maybe I could have suggested an even better non-metric to define business or process excellence:
If you don't notice that you are performing a process or activity because it is so easy and natural, and it has the desired results every time, you have probably achieved excellence,
A post from the Improving It blog
Let us help you improve your business today. Visit www.consected.com
Thursday, February 02, 2012
Facebook welcome pages - but why?
Last night I received a question from a customer asking how his new Facebook welcome page can help the ranking of his main website. He suggested it was a dumb question, but when you think about it carefully it is hard to see the link between all the effort that goes into Facebook and getting the rankings on a regular website up so you can convert more visitors to new business.
So, it is not a dumb question at all. Here is the way I look at it, and it is likely that social media gurus will be able to scream at me and say I'm missing something. So go ahead, scream! That's what the comments box at the end of the post is there for...
But back to the real issue, how does a fancy Facebook welcome page help drive up your main website rank?
In short, the more people you can get to Like the page, the more likely you are to keep them engaged and have them share things you post that point back to your website. This will get you more traffic to your main site, and will get you a bigger likelihood of links from other blogs and sites. This drives up page rank.
Of course, people aren't going to do much if your Facebook timeline is empty. So it is essential that you share something at least once a day on the Facebook page to make it worth people coming along and coming back to take a look.
In general, for promoting the Facebook page with the aim of getting more people to visit your website, I would suggest a few things:
1) discuss your Facebook page in a blog post, and reference how it is (or you hope it will grow into) a community of people interested in your area of business and sharing their experiences etc.
2) is there something you can give away? Can you offer discount coupons or similar things? Maybe you can offer one of your longer articles you've been sitting on for a while, made into a simple PDF ebook. Visitors will only get it if they like the page (see the Consected page for an example, which I put together today, where you get a free eBook if you like the page)
3) if you do have a give-away of some form, make sure you send an email newsletter pointing people to the page, discussing its merits as a community and telling them what they get for free when they 'like' it
4) once you get more people involved in it, tweet about interesting items on the page occasionally
5) everything you do needs to keep people involved in your brand and so the more activity there is, the better chance of higher page rankings
There is no causal link that I'm aware of between a Facebook page with plenty of fans and a higher ranking website. The page rank may not get boosted directly, but the amount of traffic you get back to your blog and website will grow, which is the real aim of the exercise. Visitors are where your leads come from, not a mystical page rank number. So keep blogging, keep sending email newsletters, keep Facebooking, keep Tweeting and keep updating your website.
And if you'd like a Facebook page like Consected, just drop me a note!
A post from the Improving It blog
Let us help you improve your business today. Visit www.consected.com