Buyer Response Gap


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Buyer Response Gap

  1. 1. 2010<br />Slow Buyer Response is<br />Lowering Business Profits<br />- and -<br />8 Ways to Get More Sales <br />in the Current Economic Climate<br />
  2. 2. Marketing  Sales<br />Today, businesses spend Trillions every year on marketing and advertising in order to grow their sales revenues.<br />Marketing & Advertising<br />Costs<br />Marketing & Advertising<br />Costs<br />Actual Sales Generated<br />Actual Sales Generated<br />
  3. 3. Ask the Question<br />So, businesses are always asking,<br />“How can these marketing dollars be better spent?”<br />
  4. 4. Economics in 2010<br />To address that, we must first look at what happens:<br />After marketing dollars are spent, <br />but <br />Before consumers BUY.<br />
  5. 5. The Response Gap<br />The time after marketing and advertising dollars are spent, but before customers actually buy is.…<br />The Response Gap<br />Marketing & Advertising<br />Costs<br />Marketing & Advertising<br />Costs<br />Actual Sales Generated<br />Actual Sales Generated<br />Time<br />
  6. 6. The Response Gap<br />What Factors have the biggest impact on<br />Buyer Response?<br />(And Business Profits)<br />
  7. 7. Commercial Messages<br />Chet Holmes International Research found that…<br />In 1993, consumers were exposed to <br /> 3,000 commercial messages a year<br />
  8. 8. The Clutter Effect<br />Today …<br />Consumers are exposed to <br />3o,000commercial messages<br />
  9. 9. The Clutter Effect<br />This is “The Clutter Effect”<br />3o,000<br />3,000<br />1993<br />2008<br />
  10. 10. The Clutter Effect<br />What has “The Clutter Effect” done <br />to Marketing Costs?<br />The costs haveTripled<br />
  11. 11. For Example:<br />A small campaign that cost $5,00o in 1993, <br />would have a 2008 cost of$15,000 <br />$<br />The Clutter Effect<br />2008<br />Marketing & Advertising<br />Costs<br />2008<br />Marketing & Advertising<br />Costs<br />$5,000<br />1993<br />
  12. 12. The Clutter Effect<br />Since we are paying three times more, <br />are we getting <br />three times the response?<br />
  13. 13. Effectiveness has fallen<br />NO !!!<br />NO !!!<br />NO !!!<br />NO !!!<br />NO !!!<br />NO !!!<br />NO !!!<br />NO !!!<br />NO !!!<br />NO !!!<br />NO !!!<br />NO !!!<br />It used to take 4 attemptsto get prospects to respond<br />It now takes 8.4 attempts<br />to get the same response<br />The Bottom Line: <br />It costs 3 times more, to get<br />half of the response.<br />
  14. 14. To Respond or Not to Respond<br />What else affects <br />Marketing Response?<br />
  15. 15. Buyers in the Market<br />Quite Simply:<br />The number of people <br />in the market who are viable buyers <br />for your product / service.<br />
  16. 16. Buyers of Products & Services<br />3%<br />Are always buying<br />7%<br />Open to it<br />Just not thinking <br /> about it<br />30%<br />Think they are <br /> not interested<br />30%<br />30%<br />Not interested<br />
  17. 17. Buyers in the Market<br />Product Marketing Reach<br />3%<br />Currently buying<br />7%<br />Open to it<br />10%<br />Actual Market Prospects<br />(Average Economic Conditions)<br />
  18. 18. To Respond or Not to Response<br />What are the effects of Current Economic Conditions?<br />
  19. 19. A Slower Economy<br />Consumer Confidence Index<br />Current Confidence Index 46<br />Normal economic activity -30 %<br />(1985 = 100)<br />February 2010<br />Source: Consumer Confidence Survey<br />The Conference Board: Consumer Research Center<br />
  20. 20. Slower Economy = Fewer Prospects<br />Current<br />Product Marketing Reach<br />3%<br />2.1%<br />Currently buying<br />7%<br />4.9%<br />Open to it<br />10%<br />7%<br />Actual Market Prospects<br />-30 %<br />
  21. 21. The Trust Factor<br />What else is affecting <br />Marketing Response?<br />
  22. 22. The Trust Factor<br />Two Decades of Corporate Greed, Ponzi Schemes, and the Mortgage Industry Meltdown<br />Have made consumersless trusting.<br />
  23. 23. Trust & Advertising<br />Journal of Advertising Research <br />indicates<br />37.7% <br />of consumers trusted advertisements <br />as a whole in 1998.<br />
  24. 24. Declining Trust of Advertising<br />37.7%<br />Today,<br />Only 14% <br />of consumers trustadvertisements.<br />1998<br />2010<br />
  25. 25. Who Buyers Trust<br />Recent research from Razorfish revealed:<br />People care more about how <br />their peers rank products and services <br />than how ranks them.<br />The net number of consumers who trust Search Engine Results is 10% <br />
  26. 26. The Growing Response Gap<br />Adding up the facts<br /><ul><li>Marketing costs have tripled
  27. 27. Getting attention from prospects takes doublethe effort
  28. 28. Commerce is down 30%
  29. 29. Only 14% of people today trust advertising & marketing</li></li></ul><li>The Response Gap<br />The Growing Response Gap<br />Growing Because of:<br />The Clutter Effect<br />Fewer Prospects<br />Declining Trust<br /> Marketing & Advertising<br />Cost<br /> Marketing & Advertising<br />Cost<br />Actual Sales Generated<br />Time<br />
  30. 30. The Growing Response Gap<br />Summary<br /><ul><li>Lack of effectivenessfrom Advertising & Marketing requires businesses to change
  31. 31. Businesses must put more effort intoThe Response Stage of theprospect-to-buyer relationship</li></li></ul><li>Steps to take<br />Fill the Response Gap<br />8 Ways to Get More Sales <br />
  32. 32. 8 Ways to Get More Sales<br /> Optimize Current Communication<br />Helps rise above The Clutter Effect<br />and build Trust<br />1<br />in The Response Gap.<br />
  33. 33. Optimize Current Communication<br />1<br />85%<br />of business communication today, <br />occurs VIA Email. <br />Email<br />
  34. 34. Optimize Current Communication<br />1<br />Every corporate email can be individually branded <br />to have current promotions<br />visually displayed. <br />
  35. 35. Optimize Current Communication<br />1<br />Increasing the frequency thatpromotions are displayed to prospects helps overcome the <br />“Clutter Effect.”<br />Example<br />Reminder:<br />It takes 8.4 attempts to get a buyers attention with your messaging<br />
  36. 36. Optimize Current Communication<br />1<br />Employees send more than 15,000 <br />individual emails per year. <br />- Jupiter Research<br />Example<br />Small Company:<br />(based on 20 staff at 300 emails/wk each)<br /><ul><li> 6,000 per week
  37. 37. 25,000+ per month
  38. 38. 300,000+ per year</li></ul>Small Company:<br />(based on 20 staff at 300 emails/wk each)<br /><ul><li> 6,000 per week
  39. 39. 25,000+ per month
  40. 40. 300,000+ per year</li></li></ul><li>Optimize Current Communication<br />1<br />Promote Wisely<br />Would you send out business letters on a piece of scrap paper?<br />Sincerely,<br />Branding Matters<br />
  41. 41. Optimize Current Communication<br />1<br />You must promote vividly and consistently <br />to rise above “The Clutter.”<br />
  42. 42. 8 Ways to Get More Sales<br /> Send Education via RSS<br />Avoids being seen as MarketingClutter<br />and builds Trust<br />2<br />in The Response Gap.<br />
  43. 43. Send Education via RSS<br />2<br />People give more weight to information than they do to advertising. <br />By providing valuable content, <br />you can bypass the “Clutter Effect.”<br />
  44. 44. Send Education via RSS<br />2<br />Embed your RSS into your Email<br />to double the Education potential.<br />
  45. 45. 8 Ways to Get More Sales<br /> Embed Images in Email Newsletters<br />Helps overcome The Clutter Effect<br />and reach More Prospects<br />3<br />in The Response Gap.<br />
  46. 46. Embed Images in Email Newsletters<br />3<br />Stripped Images <br />indicated with <br />Most email programs strip “attached” images. So, they rarely get seen, unless the recipient decides to “Download Pictures.”<br />HTML email with<br />“attached” images.<br />
  47. 47. Embed Images in Email Newsletters<br />3<br />People shop with their eyes. <br />Make sure your email newsletter images and visual content are getting seen. <br />Repeated imagery<br />gets more attention and counteracts the “Clutter Effect.”<br />
  48. 48. Embed Images in Email Newsletters<br />3<br />The Cost is the Same. <br />If you are already spending the money <br />to send eNewsletters every month… <br />You should use technology that <br />Embeds your Eye-Catching Content<br />A picture is worth a thousand words.<br />
  49. 49. 8 Ways to Get More Sales<br /> Get to the<br /> Point<br />Avoids being seen as Clutter<br />4<br />in The Response Gap.<br />
  50. 50. Get to the Point<br />4<br />Email recipients don’t have time <br />for your dissertation.<br />60% of email users only <br />read 50% of the message. <br />- ClickZ<br />
  51. 51. Get to the Point<br />4<br />Use quick messages,<br />Not long paragraphs.<br /> (Helps break through “Clutter”)<br />
  52. 52. Get to the Point<br />4<br />Then,<br />link to more information <br />so they can get the details.<br /> (Helps build Trust)<br />
  53. 53. 8 Ways to Get More Sales<br /> Respond Quickly<br />To stay in front of viable buyers<br />5<br />in The Response Gap.<br />
  54. 54. Respond Quickly<br />5<br />Don’t prospect randomly. <br />Get Alertsfrom those showing<br />the most interest. <br />An example of anAlert from a prospect clicking on an Email Promotion Banner.<br />
  55. 55. Respond Quickly<br />5<br />Return Website Visitor Alerts<br />For someone returning to your Website to review additional information.<br />
  56. 56. Respond Quickly<br />5<br />What ifyou could call Website visitorsmoments after they entered your website?<br />Alerts help focus efforts on<br />“Quality Prospects”<br />
  57. 57. 8 Ways to Get More Sales<br /> Cultivate More Warm Leads<br />To reach more Prospects<br />and market where Trust already exists <br />6<br />in The Response Gap.<br />
  58. 58. Cultivate More Warm Leads<br />6<br />All buyers are not created equal.<br />Buyers that show the most interest are the best ones to call or email.<br />Real Time Report <br />on the most active <br />Website Visitors<br />
  59. 59. Cultivate More Warm Leads<br />6<br />Use technology to interface with those in your circle of influence.<br />Start with those <br />who you know use<br />Interactive Media.<br />
  60. 60. What is the potential of cultivating<br />Warm Leads with <br />Interactive Technology?<br /> Cultivate More Warm Leads<br />6<br />
  61. 61. Cultivate More Warm Leads<br />6<br />Remember the Market %’s<br />30%<br />Are “just not thinking about” your product or service<br />This 30% is 3 times the market potential of the 10% that you currently market to:<br /> (those “Buying Now” or “Open to It”) <br />
  62. 62. Cultivate More Warm Leads<br />6<br />Those that are “just not thinking about it” <br />must be made aware<br />before they are “open” to your product<br />To make them “open” with advertising<br />is expensive & takes a long time <br />Because it combines apathy with <br />“The Clutter Effect” & “Lack of Trust in Advertising”<br />
  63. 63. Cultivate More Warm Leads<br />6<br />Of the three phases leading up to buying <br />(Awareness, Consideration, and Action Phase), <br />the strongest influence for the “Awareness Phase” is:<br />Close Family & Friends: <br />78%<br />Provide Heavy Influence<br />
  64. 64. Cultivate More Warm Leads<br />6<br />Once they are aware, new prospects build trust faster through existing relationships.<br />Razorfish research indicates that: <br />73% of consumers trust friends when making a purchase decision.<br />
  65. 65. Cultivate More Warm Leads<br />6<br />A Low Cost Alternative<br /> Interactive Media is very inexpensive compared to time and money spent on traditional advertising to influence the large <br />30% market share<br />(who is “just not thinking about it”). <br />
  66. 66. 8 Ways to Get More Sales<br />BeFully Engaged & Interactive<br />To build Awareness and Trust<br />7<br />in The Response Gap.<br />
  67. 67. As slower economy means:<br />People spend more time gathering information before they make a purchase decisions.<br />Be Fully Engaged & Interactive<br />7<br />Interactivetechnologies <br />make this easier every day.<br />
  68. 68. Be Fully Engaged & Interactive<br />7<br />The New Town SquareTM<br />People use toconverseon <br />Town Squares, at the city parks,and in Diners & Cafés. <br />Today, online interactive conversationstake place on Facebook, Twitter, Blogs, <br />and similar web spaces.<br />
  69. 69. Be Fully Engaged & Interactive<br />7<br />To be successful with Interactive Media, you must conversein this <br />“New Town Square” <br />by talking to people <br />about what they want <br />and who you are. <br />Anything else would <br />be “un-neighborly.”<br />
  70. 70. Be Fully Engaged & Interactive<br />7<br />The concept is not new. <br />To build a relationship with prospects, <br />focus on the relationship <br />and not just on your message.<br />The internet just happens to be <br />where these interactions <br />can easily take place today.<br />
  71. 71. Be Fully Engaged & Interactive<br />7<br />As in every environment, it is good tolearn and stay aligned with:<br /><ul><li>Acceptable Behaviours
  72. 72. Effective Practices
  73. 73. The Best Places to spend your time
  74. 74. Ever-changing trends</li></ul>Online interaction requires the same.<br />
  75. 75. Be Fully Engaged & Interactive<br />7<br />Interactive Media is not a fad.<br />In reality, it is just today’s medium for a fundamental societal shift back to a <br />more community-oriented culture.<br />Renowned social researchers, <br />William Strauss and Neil Howe<br />expound upon this natural cycle <br />in their books, Generations and <br />The Fourth Turning.<br />
  76. 76. 8 Ways to Get More Sales<br /> Listen and Accept Suggestions<br />To build Trust, <br />appeal to Proven Buyers,and gain Awareness<br />8<br />
  77. 77. Listen & Accept Suggestions<br />8<br />Dissatisfaction is not the end.<br />A study of Medical Malpractice Lawsuits found that 80% of the plaintiffs would have dropped the lawsuit if their complaints were given more acknowledgement.<br />Acknowledge Complaints and make corrections<br />Or, at least, give value to their opinion.<br />
  78. 78. Listen & Accept Suggestions<br />8<br />Build Loyalty<br />Harry Beckwith, renowned expert <br />on relationship sales, says to <br />cherish dissatisfied clients. <br />He professes that the<br />most loyal clients can be those <br />that once had a big problem.<br />
  79. 79. Listen & Accept Suggestions<br />8<br />The Path of Least Resistance<br />Offer Loyalty Rewards based on what clients want most.<br />Use feedback from direct customer communication, <br />blogs, industry RSS, review<br />sites, and newsletters.<br />Prospective clients will notice if you are offering what they want.<br />
  80. 80. Listen & Accept Suggestions<br />8<br />Use Interactive Media for Loyalty Programs<br />It is a great way for Friends & Family of clients to become aware of your rewards. <br />They can also give suggestions quickly <br />and easily.<br />
  81. 81. 8 Ways to Get More Sales<br />Summary<br />Optimize CurrentCommunication<br />5<br />1<br />Respond Quickly<br />Send Education via RSS<br />Cultivate More<br />Warm Leads<br />6<br />2<br />Embed Images in Email Newsletters<br />BeFully Engaged & Interactive<br />7<br />3<br />Get to the Point<br />Listen and AcceptSuggestions<br />8<br />4<br />
  82. 82. About EnterprisingWorks<br />EnterprisingWorks provides a la carte business solutions to help companies increase performance without overloading expenses.<br />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. <br />Our company is always improving our knowledge and service to meet client requests and needs.<br />
  83. 83. Plug-in Solutions<br />We know that most small & medium-sized businesses cannot afford a fully-staffed multimillion dollar marketing department,<br />
  84. 84. Plug-in Solutions<br />– or –<br />Would not spend $20,000 / mo. on consulting agency fees to build out a full-scale advertising, marketing, and sales platform. <br />
  85. 85. Plug-in Solutions<br />– or –<br />Even $50,000 - $90,000 / year for a <br />salaried Social Media Optimization Specialist. <br />Or if you would even want one around full-time…<br />
  86. 86. Plug-in Solutions<br />In fact, because marketing and advertising has such low effectiveness for the cost today,<br />(14% who Trust x7%Marketable Buyers)<br />We recommend allocating <br />already budgeted dollars <br />into solutions that can <br />cultivate sales from <br />ones being lost in <br />The Response Gap.<br />
  87. 87. Plug-in Solutions<br />Our product that helps bridge <br />The Response Gap is<br />We welcome the opportunity to show you how <br />it can better use marketing dollars and <br />grow your sales.<br />
  88. 88. The Rapid Responder<br />Embedded Email<br />Promotion<br /><ul><li> Enhanced Messaging
  89. 89. Consistent Branding
  90. 90. Higher Conversion Rates
  91. 91. Prospect ‘Click Alerts”
  92. 92. Analytics on Every Email
  93. 93. Compliance Control</li></li></ul><li>The Rapid Responder<br />Web Traffic<br />IN-site<br /><ul><li> Visitor Identity Technology
  94. 94. Better Prospecting
  95. 95. Sales Staff Access Tools
  96. 96. Competitor Strategy Insight
  97. 97. PPC Fraud Protection</li></li></ul><li>The Rapid Responder<br />Integration<br />Social Media<br /><ul><li> Growth of Organic Traffic
  98. 98. Improved Buyer Experience
  99. 99. Increased Internet Presence
  100. 100. Keeping Up with Trends
  101. 101. Positive Effect on Marketing
  102. 102. Monthly Reports & Tactics</li></li></ul><li>The Rapid Responder<br />More Sales More Quickly<br />