Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Buyer Response Gap

415 views

Published on

Published in: Business
  • Be the first to comment

  • Be the first to like this

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 />

×