You Know What You Sell, but Do Your Customers?

In a friendly chat between myself and a fellow business owner, the topic of poor sales arose. This discussion with Bill was similar to others I had had in the past with other proprietors. In an attempt to offer a solution to this common problem, I begin by asking the business owner where he advertises. He says that he does not advertise because it doesn't work. I ask if he networks and he replies that he is too shy and does not like networking with potential customers. I also comment that his business does not have a sign on the building yet Bill cannot provide a logical reason. Finally, I joke with Bill and say; " You don't advertise or network, there is no sign on your store, and you wonder why sales are so low? - I wonder why your sales are so high. " All jokes aside, you can sell the world's best products or services, but if your customers are not aware of your business, they cannot buy, period!

I introduced Bill to the concept of marketing by simply defining it as the process of communicating to past and future customers what a company can offer to them. Marketing communication includes advertising through various media, the sign on the front of the store, sales representatives speaking with potential customers, in short, any method of communication to convince your customers to buy.

Sell benefits not features

I proceed to explain to my friend that customers buy benefits not features. I use the example of a fictitious carpet cleaning company that advertises that they have been in business for 30 years. First, is it commendable that it has been running for 30 years; One could have 30 years of making the same mistakes, or 30 years of learning from past experiences. Is the potential customer ultimately concerned that a company has been operating for 30 years or is he or she more interested that a company is up-to-date with their products or services? The following table gives examples of feature versus benefit for the carpet cleaning company.

Feature Benefit

• Advance cleaning equipment - can get stains out of carpet
• Truck mounted equipment - equipment is not in your home so there is no noise
• Radio dispatched truck - quick service when you call
• Fast drying chemicals - you can walk on the carpet in 10 minutes

Bill agreed that as a consumer, he is not concerned with any features of this carpet cleaning company. " I do, however, appreciate the benefits that it can provide me." I resumed by explaining that some overall benefits that entice customers are found in products or services that save time or money, provide enjoyment, is a necessity, or enhances the quality of life. Since customers purchase benefits, a company's marketing effort should express this to their potential consumers.

Consistency in marketing material

Bill urges me to carry on so I continue by saying that customers can easily get confused when a business sends out conflicting marketing messages. What if a company sign testifies that the lowest price is the law, yet they offer valet parking? This undoubtedly adds customer service but that extra expense will be passed on to the buyer so the store cannot possibly affirm that they offer the lowest price. While the example may be a little ridiculous, I often see subtle conflicts in marketing messages. The ad or brochure may be aimed to target sophisticated clientele, while the store or office appears to be one of less sophistication. It is important to devise a consistent message in the marketing material. This will help avoid misleading the potential customer when relaying the message to them.

How do you reach your customers

Every business is different in how it can send it's marketing message to potential customers. By knowing the demographics of the customer, a proprietor can send a message out in a media that reaches that specific demographic group. Bill excitedly interjected, " Let me see if I've got it, if you are selling computer equipment, for example, you could advertise in a computer newspaper. " The same computer ad placed in a regular newspaper will generally get less of a response. This is largely due to the reader having a different focus. A similar situation could occur with a company that sells cowboy boots. Perhaps advertising on a country radio station could meet that target market. My friend is beginning to see the big picture so I provide him with a list of advertising medias that he may consider:

• Direct marketing
• Newspaper
• Radio
• Referral
• Location
• Networking

I add that a business will usually use a combination of concurrent advertising medias so that the consumer will receive multiple reinforcing messages urging them to make a purchase from that particular business.

Know your customer

I can't stress enough that the more you know about your customer, the better you can serve them. Prosperous companies attribute their success to being experts on their target market. Market research enables a business owner to recognize a potential consumer. Marketing research does not have to be expensive. Many business owners, as Bill agrees, feel that this is costly but there are many cost effective methods to find out valuable information about your market and your customers.

• Do a customer survey in conjunction with a draw to determine who the 20% of your customers are that are responsible for 80% of your sales, you could start a database of your customer transactions to see the top purchasers.
• One way to build a customer database is to have customers fill out their name and address to get a free offer (buy 5 get 1 free).

• Do people see your sign?
• Are they having problems getting in or out of your parking lot?
• Of the customers that go into the store, how many make a purchase?

While it is important to find out this information, and other, what is most significant is what the information actually means and how it will be used. For example, if customers are having difficulty getting out of the parking lot, good customer service is to fix the problem and let customers know that you solved the problem to make their shopping experience more enjoyable. In some businesses, it makes sense to narrow the target market so that you can provide better service to your customers. I continue to educate Bill by saying that often it is very difficult to satisfy all customers in a specific market. I illustrate this with the example of a restaurant. One could sell entrees at $6.95 or at $29.95. Everybody eats so you might say that everybody is your target market. This is not true. A customer that would pay $6.95 for a meal probably would not buy a $29.95 entre. Then we can consider other factors like type of food - Chinese or Italian, and the timeliness of service - quick service or leisure meal. Once the attributes of the products or services are known, the marketing communication can be tailored to fashion that message and image.

Marketing action plan Bill was eager to learn about the next step. I explained that once the basics of the marketing communication have been decided, an action plan is required to get the message out. Without a plan of action, all the preliminary work is merely just wishful thinking. An action plan tells you what, when, where, and how things will be done. Armed with this information, one knows exactly what to do when. Then just do it. I showed bill an example of an a abbreviated marketing action plan which he felt would be helpful when starting his own plan of action. Date Activity Description:

Bill was very gracious with his thanks but I had to caution that it is difficult to be successful in business while hiding in the back of your store or office. You have to let your potential customers know that you exist and that your products or services can fill one or more of their needs. Remember, if you market your company the same way you have in the past, you may not get the same results today. Customers don't remain the same over time, why should businesses.