Posted by Scott Dunn on February 9, 2008
In today’s blog, I cover why Word of Mouth Advertising is the most powerful form of advertising your business can ever do. The Return on Investment with Word of Mouth Advertising is higher than any other form of advertising you implement.
Why is it so powerful and why does it work so well? Easy… it’s called Raving Fans. Raving Fans not only purchase from your business on a regular interval, they also are the ones telling people to do business with you.
You are probably thinking to yourself how much money you are going to save this year in advertising. Not so fast. LESS THAN FOUR PERCENT of your client base turn into raving fans. (Let me say that again: LESS than FOUR PERCENT!!!!) This means that 96% of your business comes from your customers and clients. How do they find you? Through traditional advertising.
Most businesses use Word of Mouth as a cop-out because they either do not understand their Target Market or have not developed their Unique Selling Proposition. Do not put your organization in that predicament. Understand how to harness ALL forms of advertising and grow your business. Traditional advertising works. If yours is not working, then make changes today and start making it work for you.
Bottom line: While Word of Mouth Advertising is the most effective form of advertising for your business, it is simply a spoke in a wheel. For a wheel to roll properly, their must be multiple spokes. Understand your target market and use different advertising mediums to reach them. Word of Mouth Advertising is simply not enough to sustain your business. DO NOT MAKE THE MISTAKE THAT WORD OF MOUTH ADVERTISING IS THE ONLY ADVERTISING YOUR BUSINESS NEEDS!
Please click on the arrow below and I look forward to your comments, questions and input.
Posted in Advertising | Tagged: Advertising, Alpharetta, alpharetta business, appen, appen newspaper, atlanta, city of Alpharetta, city of atlanta, city of johns creek, city of milton, city of milton advertising, city of milton business, GA, Georgia, gnfcc, Johns Creek, johns creek business, johns creek chamber, marketing, money mailer, Scott Dunn, small business advertising, small business marketing, super coups, target market, Town Planner, Town Planner Calendar, valpak | 5 Comments »
Posted by Scott Dunn on January 29, 2008
I came across an article the other day in the New York Times (it was sent to me by a fellow Town Planner Publisher) which asked a simple question: “Does it pay to advertise during a recessionary period?” My first thought was why would someone (especially the New York Times) write about advertising in a recession when we are not in one. A recession is defined as two straight quarters of contraction (I knew my Economics degree was going to come in handy some day). As of this writing, there has not been one quarter of contraction, much less two. I guess when you work for the media you actually start believing your own hype! Never the less, I did find the content of the article very, very, very interesting. It is nothing new, revolutionary or something that has not been said for hundreds of years. YES, you MUST ABSOLUTELY ADVERTISE in a recession.
I know, I know…I sell advertising, so what else would I say? No?? While it is true that I sell “Kick Ass Advertising”, another company actually came up with the findings. No, that company does NOT sell advertising. The name of the company is McGraw Hill Research. They actually use this thing called math to figure it out.
In a nutshell what they found is this: After analyzing 600 companies from 1980 through 1985, those who advertised the same or increased their advertising averaged significantly higher sales both during the recession and after it. My first question was this: What does significant mean? According to McGraw Hill, significant means 260% over those who stopped advertising. If you don’t believe me, see the graph below.
Lastly, the article went on to explain that a company by the name of Meldrum & Fewsmith found that advertising during a recession not only increases sales but increases profits as well. How can this be you ask? Simple…it is called Top of Mind Awareness. When I say car, what do you think of? How about TV or computer? That is called Top of Mind Awareness. If you stop advertising for one second, you risk the chance of losing Top of Mind Awareness.
Still don’t believe me? I guarantee you that every single one of your answers was influenced by advertising. How many of you came up with TATA Motors? (Go on and google it.) Unless you have lived in India, you are not familiar with them. TATA Motors does not advertise in the USA, so how could you be?
As always, please post your thoughts and comments. If you would like to see something covered in a blog, shoot me an email or give me a call.
Posted in Advertising | Tagged: advertise, Advertising, advertising alpharetta, advertising atlanta, advertising city of milton, advertising johns creek, alpharetta business, appen newspaper, atlanta, b2b advertising, b2b marketing, city of milton, GA, gnfcc, Johns Creek, johns creek business, johns creek chamber, marketing, marketing plan, money mailer, recession, roswell, Sandy Springs, Scott Dunn, small business advertising, small business marketing, sonnarconnects, super coups, Town Planner, Town Planner Calendar, townplanner, valpak | 7 Comments »
Posted by Scott Dunn on January 24, 2008
I came across a couple of interesting articles yesterday. The first is that Dunkin’ Donuts has launched an on-line customer loyalty program that offers a cash back program and company news. My first reaction is: WOW- a customer loyalty program….what a novel idea. This is truly a cutting edge, out of the box idea on how to connect with your customers to keep them coming back. NOT!!!! Second, I read that Starbucks is offering FREE refills in certain stores and coffee for only a buck($1.00). The company spokesperson for Starbucks says they too are looking for ways to connect with the customer. Um-mm, I don’t feel a better connection with you Starbucks. It is going to take more than free refills and a buck for that.
Let me get this straight. Two established brands want to connect or re-connect with customers and this is the best they can come up with? An on-line rewards program and $1.00 cups of coffee. In my opinion, this is a knee-jerk reaction when revenue tapers off and the company does not want to invest (spend) money back in itself.
While I applaud the fact that Dunkin’ Donuts realizes (after all these years) the need for a customer loyalty program, how does a customer loyalty program drive NEW customers? When Starbucks decided to offer free itunes cards to it customers, how many NEW customers came into the stores because of that program? My guess is not many. Why offer $1.00 coffees one month later? Our existing customers are the life blood of all of our business, I understand that. However our existing customers can only purchase/consume so much. I am not going to drink 10 cups of coffee in a day when I normally drink 2. An increase in sales must come from NEW customers. See where I am going with this?
As for Starbucks, you are playing with Pandora’s box when you go from a position of a market leader to just another Joe. Do you really want to compete with McDonald’s for coffee sales? So what they are putting coffee bars in their restaurants. Step up to the plate and create something of value for your customers. What message are you sending your TARGET market? That after all these years of paying $2.00 for a cup of coffee, the coffee is really only worth a $1.00? How much money has Starbucks spent developing their brand and does $1 coffee fit it? (I think you get my drift here.)
In my opinion, both companies need to go back to their Unique Selling Proposition, define their target market and create a message that their target market understands. Their current customers already identify with the message and NEW customers can too if they are exposed to it.
Lessons: First, EVERY BUSINESS MUST HAVE A CUSTOMER LOYALTY PROGRAM. If you do not have one, stop reading this now and make one. (If you need help, give me a call. I have helped other businesses with this). Second, knee-jerk reactions can have long, long, long lasting effects on your business. Lastly, when you have a down turn in business ALWAYS, ALWAYS, ALWAYS revert back to your Unique Selling Proposition. It is the reason why you started the business in the first place….right? Playing into your competitions hand almost never works.
Dunkin’ Donuts, if you are reading this, please click play below and listen to the message. It is what built your brand.
Posted in Advertising | Tagged: Advertising, advertising alpharetta, advertising atlanta, advertising city of milton, advertising johns creek, Alpharetta, alpharetta business, atlanta, city of milton, city of milton business, direct mail, Dunkin' Donuts, Georgia, gnfcc, Johns Creek, johns creek business, johns creek chamber, marketing, marketing alpharetta, marketing atlanta, marketing city of milton, marketing johns creek, money mailer, roswell, Sandy Springs, Starbucks, super coups, Town Planner, Town Planner Calendar, townplanner, Unique Selling Proposition, valpak | 3 Comments »