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Buyer Response Gap Buyer Response Gap Presentation Transcript

  • 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:
    • Acceptable Behaviours
    • Effective Practices
    • The Best Places to spend your time
    • Ever-changing trends
    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.
  • The Rapid Responder
    Embedded Email
    Promotion
    • Enhanced Messaging
    • Consistent Branding
    • Higher Conversion Rates
    • Prospect ‘Click Alerts”
    • Analytics on Every Email
    • Compliance Control
  • The Rapid Responder
    Web Traffic
    IN-site
    • Visitor Identity Technology
    • Better Prospecting
    • Sales Staff Access Tools
    • Competitor Strategy Insight
    • PPC Fraud Protection
  • The Rapid Responder
    Integration
    Social Media
    • Growth of Organic Traffic
    • Improved Buyer Experience
    • Increased Internet Presence
    • Keeping Up with Trends
    • Positive Effect on Marketing
    • Monthly Reports & Tactics
  • The Rapid Responder
    More Sales More Quickly