2010 Slow Buyer Response is Lowering Business Profits - and - 8 Ways to Get More Sales in the Current Economic Climate
Marketing Sales Today, businesses spend Trillions every year on marketing and advertising in order to grow their sales revenues. Marketing & Advertising Costs Marketing & Advertising Costs Actual Sales Generated Actual Sales Generated
Ask the Question So, businesses are always asking, “How can these marketing dollars be better spent?”
Economics in 2010 To address that, we must first look at what happens: After marketing dollars are spent, but Before consumers BUY.
The Response Gap The time after marketing and advertising dollars are spent, but before customers actually buy is.… The Response Gap Marketing & Advertising Costs Marketing & Advertising Costs Actual Sales Generated Actual Sales Generated Time
The Response Gap What Factors have the biggest impact on Buyer Response? (And Business Profits)
Commercial Messages Chet Holmes International Research found that… In 1993, consumers were exposed to 3,000 commercial messages a year
The Clutter Effect Today … Consumers are exposed to 3o,000commercial messages
The Clutter Effect This is “The Clutter Effect” 3o,000 3,000 1993 2008
The Clutter Effect What has “The Clutter Effect” done to Marketing Costs? The costs haveTripled
For Example: A small campaign that cost $5,00o in 1993, would have a 2008 cost of$15,000 $ The Clutter Effect 2008 Marketing & Advertising Costs 2008 Marketing & Advertising Costs $5,000 1993
The Clutter Effect Since we are paying three times more, are we getting three times the response?
Effectiveness has fallen NO !!! NO !!! NO !!! NO !!! NO !!! NO !!! NO !!! NO !!! NO !!! NO !!! NO !!! NO !!! It used to take 4 attemptsto get prospects to respond It now takes 8.4 attempts to get the same response The Bottom Line: It costs 3 times more, to get half of the response.
To Respond or Not to Respond What else affects Marketing Response?
Buyers in the Market Quite Simply: The number of people in the market who are viable buyers for your product / service.
Buyers of Products & Services 3% Are always buying 7% Open to it Just not thinking about it 30% Think they are not interested 30% 30% Not interested
Buyers in the Market Product Marketing Reach 3% Currently buying 7% Open to it 10% Actual Market Prospects (Average Economic Conditions)
To Respond or Not to Response What are the effects of Current Economic Conditions?
A Slower Economy Consumer Confidence Index Current Confidence Index 46 Normal economic activity -30 % (1985 = 100) February 2010 Source: Consumer Confidence Survey The Conference Board: Consumer Research Center
Slower Economy = Fewer Prospects Current Product Marketing Reach 3% 2.1% Currently buying 7% 4.9% Open to it 10% 7% Actual Market Prospects -30 %
The Trust Factor What else is affecting Marketing Response?
The Trust Factor Two Decades of Corporate Greed, Ponzi Schemes, and the Mortgage Industry Meltdown Have made consumersless trusting.
Trust & Advertising Journal of Advertising Research indicates 37.7% of consumers trusted advertisements as a whole in 1998.
Declining Trust of Advertising 37.7% Today, Only 14% of consumers trustadvertisements. 1998 2010
Who Buyers Trust Recent research from Razorfish revealed: People care more about how their peers rank products and services than how ranks them. The net number of consumers who trust Search Engine Results is 10%
The Growing Response Gap Adding up the facts
Marketing costs have tripled
Getting attention from prospects takes doublethe effort
Commerce is down 30%
Only 14% of people today trust advertising & marketing
The Response Gap The Growing Response Gap Growing Because of: The Clutter Effect Fewer Prospects Declining Trust Marketing & Advertising Cost Marketing & Advertising Cost Actual Sales Generated Time
The Growing Response Gap Summary
Lack of effectivenessfrom Advertising & Marketing requires businesses to change
Businesses must put more effort intoThe Response Stage of theprospect-to-buyer relationship
Steps to take Fill the Response Gap 8 Ways to Get More Sales
8 Ways to Get More Sales Optimize Current Communication Helps rise above The Clutter Effect and build Trust 1 in The Response Gap.
Optimize Current Communication 1 85% of business communication today, occurs VIA Email. Email
Optimize Current Communication 1 Every corporate email can be individually branded to have current promotions visually displayed.
Optimize Current Communication 1 Increasing the frequency thatpromotions are displayed to prospects helps overcome the “Clutter Effect.” Example Reminder: It takes 8.4 attempts to get a buyers attention with your messaging
Optimize Current Communication 1 Employees send more than 15,000 individual emails per year. - Jupiter Research Example Small Company: (based on 20 staff at 300 emails/wk each)
6,000 per week
25,000+ per month
300,000+ per year
Small Company: (based on 20 staff at 300 emails/wk each)
6,000 per week
25,000+ per month
300,000+ per year
Optimize Current Communication 1 Promote Wisely Would you send out business letters on a piece of scrap paper? Sincerely, Branding Matters
Optimize Current Communication 1 You must promote vividly and consistently to rise above “The Clutter.”
8 Ways to Get More Sales Send Education via RSS Avoids being seen as MarketingClutter and builds Trust 2 in The Response Gap.
Send Education via RSS 2 People give more weight to information than they do to advertising. By providing valuable content, you can bypass the “Clutter Effect.”
Send Education via RSS 2 Embed your RSS into your Email to double the Education potential.
8 Ways to Get More Sales Embed Images in Email Newsletters Helps overcome The Clutter Effect and reach More Prospects 3 in The Response Gap.
Embed Images in Email Newsletters 3 Stripped Images indicated with Most email programs strip “attached” images. So, they rarely get seen, unless the recipient decides to “Download Pictures.” HTML email with “attached” images.
Embed Images in Email Newsletters 3 People shop with their eyes. Make sure your email newsletter images and visual content are getting seen. Repeated imagery gets more attention and counteracts the “Clutter Effect.”
Embed Images in Email Newsletters 3 The Cost is the Same. If you are already spending the money to send eNewsletters every month… You should use technology that Embeds your Eye-Catching Content A picture is worth a thousand words.
8 Ways to Get More Sales Get to the Point Avoids being seen as Clutter 4 in The Response Gap.
Get to the Point 4 Email recipients don’t have time for your dissertation. 60% of email users only read 50% of the message. - ClickZ
Get to the Point 4 Use quick messages, Not long paragraphs. (Helps break through “Clutter”)
Get to the Point 4 Then, link to more information so they can get the details. (Helps build Trust)
8 Ways to Get More Sales Respond Quickly To stay in front of viable buyers 5 in The Response Gap.
Respond Quickly 5 Don’t prospect randomly. Get Alertsfrom those showing the most interest. An example of anAlert from a prospect clicking on an Email Promotion Banner.
Respond Quickly 5 Return Website Visitor Alerts For someone returning to your Website to review additional information.
Respond Quickly 5 What ifyou could call Website visitorsmoments after they entered your website? Alerts help focus efforts on “Quality Prospects”
8 Ways to Get More Sales Cultivate More Warm Leads To reach more Prospects and market where Trust already exists 6 in The Response Gap.
Cultivate More Warm Leads 6 All buyers are not created equal. Buyers that show the most interest are the best ones to call or email. Real Time Report on the most active Website Visitors
Cultivate More Warm Leads 6 Use technology to interface with those in your circle of influence. Start with those who you know use Interactive Media.
What is the potential of cultivating Warm Leads with Interactive Technology? Cultivate More Warm Leads 6
Cultivate More Warm Leads 6 Remember the Market %’s 30% Are “just not thinking about” your product or service This 30% is 3 times the market potential of the 10% that you currently market to: (those “Buying Now” or “Open to It”)
Cultivate More Warm Leads 6 Those that are “just not thinking about it” must be made aware before they are “open” to your product To make them “open” with advertising is expensive & takes a long time Because it combines apathy with “The Clutter Effect” & “Lack of Trust in Advertising”
Cultivate More Warm Leads 6 Of the three phases leading up to buying (Awareness, Consideration, and Action Phase), the strongest influence for the “Awareness Phase” is: Close Family & Friends: 78% Provide Heavy Influence
Cultivate More Warm Leads 6 Once they are aware, new prospects build trust faster through existing relationships. Razorfish research indicates that: 73% of consumers trust friends when making a purchase decision.
Cultivate More Warm Leads 6 A Low Cost Alternative Interactive Media is very inexpensive compared to time and money spent on traditional advertising to influence the large 30% market share (who is “just not thinking about it”).
8 Ways to Get More Sales BeFully Engaged & Interactive To build Awareness and Trust 7 in The Response Gap.
As slower economy means: People spend more time gathering information before they make a purchase decisions. Be Fully Engaged & Interactive 7 Interactivetechnologies make this easier every day.
Be Fully Engaged & Interactive 7 The New Town SquareTM People use toconverseon Town Squares, at the city parks,and in Diners & Cafés. Today, online interactive conversationstake place on Facebook, Twitter, Blogs, and similar web spaces.
Be Fully Engaged & Interactive 7 To be successful with Interactive Media, you must conversein this “New Town Square” by talking to people about what they want and who you are. Anything else would be “un-neighborly.”
Be Fully Engaged & Interactive 7 The concept is not new. To build a relationship with prospects, focus on the relationship and not just on your message. The internet just happens to be where these interactions can easily take place today.
Be Fully Engaged & Interactive 7 As in every environment, it is good tolearn and stay aligned with:
The Best Places to spend your time
Online interaction requires the same.
Be Fully Engaged & Interactive 7 Interactive Media is not a fad. In reality, it is just today’s medium for a fundamental societal shift back to a more community-oriented culture. Renowned social researchers, William Strauss and Neil Howe expound upon this natural cycle in their books, Generations and The Fourth Turning.
8 Ways to Get More Sales Listen and Accept Suggestions To build Trust, appeal to Proven Buyers,and gain Awareness 8
Listen & Accept Suggestions 8 Dissatisfaction is not the end. A study of Medical Malpractice Lawsuits found that 80% of the plaintiffs would have dropped the lawsuit if their complaints were given more acknowledgement. Acknowledge Complaints and make corrections Or, at least, give value to their opinion.
Listen & Accept Suggestions 8 Build Loyalty Harry Beckwith, renowned expert on relationship sales, says to cherish dissatisfied clients. He professes that the most loyal clients can be those that once had a big problem.
Listen & Accept Suggestions 8 The Path of Least Resistance Offer Loyalty Rewards based on what clients want most. Use feedback from direct customer communication, blogs, industry RSS, review sites, and newsletters. Prospective clients will notice if you are offering what they want.
Listen & Accept Suggestions 8 Use Interactive Media for Loyalty Programs It is a great way for Friends & Family of clients to become aware of your rewards. They can also give suggestions quickly and easily.
8 Ways to Get More Sales Summary Optimize CurrentCommunication 5 1 Respond Quickly Send Education via RSS Cultivate More Warm Leads 6 2 Embed Images in Email Newsletters BeFully Engaged & Interactive 7 3 Get to the Point Listen and AcceptSuggestions 8 4
About EnterprisingWorks EnterprisingWorks provides a la carte business solutions to help companies increase performance without overloading expenses. We specialize in supporting small & medium-sized businesses, by helping them grow sales, gain better market positioning, and use systems to operate their business more effectively. Our company is always improving our knowledge and service to meet client requests and needs.
Plug-in Solutions We know that most small & medium-sized businesses cannot afford a fully-staffed multimillion dollar marketing department,
Plug-in Solutions – or – Would not spend $20,000 / mo. on consulting agency fees to build out a full-scale advertising, marketing, and sales platform.
Plug-in Solutions – or – Even $50,000 - $90,000 / year for a salaried Social Media Optimization Specialist. Or if you would even want one around full-time…
Plug-in Solutions In fact, because marketing and advertising has such low effectiveness for the cost today, (14% who Trust x7%Marketable Buyers) We recommend allocating already budgeted dollars into solutions that can cultivate sales from ones being lost in The Response Gap.
Plug-in Solutions Our product that helps bridge The Response Gap is We welcome the opportunity to show you how it can better use marketing dollars and grow your sales.