Tag Archives: Marketing strategy

Why Marketing alone can’t save your business

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During a recent google search, I found an interesting article that listed the top 50 questions asked to “Consultants in 2016”. Literally 48/50 were related to some form of Marketing, Social Media or SEO.  While those are very important reasons to look for an expert, I am concerned(and my business shows) that many businesses are missing out on other fundamental ways to help their business.   Given National closure rates are so high for Small/Medium Businesses, do people think Marketing will save their business?  What are the top reasons a business fails and how does Marketing help avoid that?

The number one concern a business owner should have is how to maximize their businesses ability to generate revenue.

Marketing is one of the 4 most important areas to develop and can not be overlooked.  But not developing the other three can jeopardize the sustainability of a business. I have seen too many instances where an organization improved efforts to increase the customer base through Marketing, only to find the business couldn’t capitalize on the new found popularity or volume.  If your first reaction to this is “that’s a good problem”, you are wrong.  It is a problem that may hurt your business more than it helps it.  To increase revenue in a sustainable way, you need to consider building on all 4 key areas.

The 4 key areas (we call them Pillars)

Products – People – Operations – Marketing

–M.O.R.E. Business Assesment©–  by C.S.SimonsConsulting

Case in point –
A classic example is the restaurant that creates a great coupon that is hard to say no to. People come in droves and crowd the restaurant. Tables are full, the Bar is crowded and there is a wait list as long as your arm.

Successful Marketing right?

Then things start to go wrong, the food comes out late, servers become overwhelmed, orders begin to get switched around and as a result the tables don’t turn. Then the customers at tables start to become frustrated and before you know it, they have such a bad experience, they don’t want to return. People waiting for a table end up waiting twice the time they were quoted.

Perhaps the house buys a drink or dessert to appease, this calms many people but that may not work on everyone.  Customers take out frustration on your staff.  Your staff takes out there frustration on each other.  All in all, it turns out to be a tough night for that restaurant.

But the pain continues because customers who want to vent are just getting started.

Customers proceed to tell there friends what a bad time they had when they’re at work or through social media and this can linger for some time.  So while the coupon brought increased sales initially, the other areas of the business that weren’t ready for this suffered.  The servers don’t make($) what they expected due to the restaurant failing, the kitchen crew is frustrated because they weren’t set up for that kind of business, and the product quality suffered due to the volume.  Marketing people call this a successful campaign and while sales were up temporarily, they then slumped even lower than before the coupon was sent out.  Damage has been done.

We all know this story, and it can happen in all industries.

This problem was created by an over emphasis on Marketing and not insuring that other important components needed were addressed.  Generally this is a type of ad hoc marketing, and don’t confuse it with “strategy”. A Business Strategist would not only look at ways to get more people through the door, but make sure the business was equipped to handled the increase.   I have literally seen Groupon tactics destroy businesses, they will get people to your business, but it is unlikely you will make money off the new business or create repeat customers (which is what every owner  that signs up for that service wants).  I am all for Marketing.  Marketing/Advertising is to increase demand or volume, just make sure your business can meet the demand you create.

So if Marketing won’t save my business, what should I look at?

FACT:

90% of business fail due to lack of quality management

                   48% due to incompetence

                        42% due to inexperienced leadership

   -International Management Consultants, USA

The SBA, SBDC, Dunn & Bradstreet, IRS &  Census bureau will also show similar statistics.

4 ways to achieve a sustainable growth in your revenue
  1. Learn to evaluate your business.  When you are in a position of growth, expansion or even for a limited promotion like the coupon in the case study above, make sure you look at the 4 key area’s needed to generate revenue for your business.  If any of those area’s slip during a period of increased advertising, understand it will jeopardize the results you had planned.  Maintaining product standards, Quality Assurance measures, and Brand management are the tip of the iceberg to insure daily execution.  Daily execution is what your customer base will judge you by and ultimately determines everything from customer loyalty to profitability.  Much more information on these 4 areas (Pillars)can be found on our website.
  2. Don’t confuse sales with growth.  Sustainable businesses create strategies that take all 4 areas and develop each of them to meet desired goals.  Top line sales don’t always translate to growth especially if you can’t sustain that level of revenue.   Training everyone in the company to focus on all 4 areas can lead to rapid, organic growth for a company that is sustainable.  In short, develop your people and they will develop the business.  Give them systems and tools that help them achieve their job.  When systems, tools, training, and goals are all focused on developing your products, then you have something to Market.  Never Market under the “Strategy” these others will “fall in line”.  This is a common mistake and they seldom do.
  3. Don’t over rely on online development.  Unless you are strictly E-Commerce.  As mentioned above, 98% of the questions searched about consultants were for Marketing based consultants.  Yet, Marketing usually doesn’t make the top 5 reasons why businesses close.  Marketing Consultants are important in today’s business world and C.S.Simons Consulting works with several extremely valuable Marketing experts, but there is more to developing your business than a Marketing Expert can offer.  They are part of the solution, not the whole solution.
  4. Know how the pieces connect.  The business “Pillars” I refer to have overlap and it can be confusing as to how they fit together to build a business.  Further more, what is needed to support each pillar can change by industry, by business size and even business age.  Knowing what is needed to get you to the next stage is the key to growth & sustainability.  If you think all your organization needs to grow is better or different Marketing, I strongly recommend you look at the other pieces of the puzzle to.                                                               LearnMore-Red-Primary-16

All businesses need to Market.  Many outsource this for a variety of reasons and many of them are good reasons.  The point is to understand the impact of the marketing tactics to the other sides of your business before they are launched.

If you really want to increase your revenue or strengthen your business make sure you are defended against the top reasons business fail in the first place!

Carpe diem!

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Non Profit Marketing takes “S.M.A.R.T.’s”

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A Case Study

A couple of years ago while performing a “Market Study” for a well established Non Profit, I learned of yet another way to utilize the SMART Goal methodology.  This Market Study Project had multiple steps that were designed equally for discovery and for future planning purposes.  Discover who the current supporters were, identify opportunities to reach new audiences AND analyse the existing Communications Plan and aide in developing a new, more targeted approach to plan for messaging.

First, we needed data….

For the first phase, three surveys were designed and well received by the region which provided excellent information of current users, lapsed membership, and of non members.  Multiple avenues were used to reach each base and we had nearly  a 40% return rate (which is very good).  Once compiled we had lots of information to use to determine Attitudes and Motivators.

Many reports and presentations later, our clients were still having a difficult time determining who to target and what to say.  They had never looked at this from the scientific side and didn’t know how to generate goals using this data.  Long story short, I realized the group had a very difficult time creating goals because they had never used the “SMART Goal” technique.

Previous goals were to “increase Volunteers” or “Donations”, but with no details on how to know when you achieved them, or even How you achieved them.

My Corporate Trainer background makes me assume everybody knows and uses the Smart Goal technique, but that simply is not so.  Further more, the entire Board of Directors didn’t use this either and as a result created some unattainable goals in past years.  For those unfamiliar SMART is an acronym that stands for Specific, Measurable, Actionable, Relevant(realistic)& Time based.  The methodology is that SMART is used as a project plan to create a goal.  If you can’t think of a way to answer one of these headers, then you risk setting a bad goal that is not achievable.

The Answer?

I offered to Facilitate a “Goal Setting” session with the Board to help create more concrete, achievable goals that the Marketing team could then build a campaign from.  In one afternoon we were able to unite many different thoughts of what direction this NP should focus based on using the data provided by our firm AND by using the SMART methodology.  As an exercise, I used some past goals and illustrated how if even one component is left out of SMART when forming a goal, that it is likely not achievable.  Then I referred to the notes taken in our initial assessment and proved what they were presenting then as problems were the result of poorly written goals.

Wait, ..Written Goals?

Yes, it is very important when first using this model to write down all thoughts and to then present it to the group for discussion.  SMART is an exercise that helps embed this process.  After time, it will become an integrated behavior or way of thinking, but at first give it it’s due diligence and write them down.

Closer investigation showed that certain goals had been too “lofty” and not Realistic.   The end result sounded nice, but how to get there hadn’t really been planned out.  As a group we broke these down to smaller goals that could be accomplished, once that happened it was easier to attach Measurements to them.  Specifying action steps to help achieve each goal were discussed and they realized that “SMART” is also a management tool to determine what progress they were making.

 Our interviews showed that both the ED and the Board had shown some frustration to each other because the previous goal hadn’t been accomplished.  

By following the SMART technique; Management has direction from the Board and the Board has a way to gauge progress.  There had also been a confusion when setting goals for the organization on the relationship  between time and resources.  Most Executive Directors I have met take on far more than they should.  If the Organization needs it, well, they will find a way to get it done.  This creates a problem over time and literally empowers a BOD to take the Time factor out of goal setting.  If the Board doesn’t  know how to assess the ED’s ability to manage time vs resources, then how can they apply it to goal setting?

Time-bound vs Resources?

This may have been the biggest takeaway of our meeting; the need to insure a goal is achievable with in a certain time frame.  Many do not put timelines with goals for a variety of reasons, and I think I have heard them all.  Understanding that time lines must be part of the foundation of a goal is what makes it a goal.  Otherwise it is simply a dream.  Time lines and accountability make it real and coincidentally, they also make them happen.

Our Results

Over the next month, utilizing the SMART goal method this group was able to develop 3 distinct goals to then ask the Executive Director and the Marketing team to complete.  Each goal gave Specific details of what would be accomplished, it defined how it would be Measurable with both metrics and timelines, it outlined Actionable steps similar to a project plan, the entire team felt these were Realistic steps given the mission of the organization and the new data they had from our Market Study and lastly , the Marketing team felt they could accomplish this goal given the Time they were given and resources that were made available for it.

WHEW!

This Board session also highlighted the need for the organization to budget money on an annual basis to support the ongoing needs of Marketing.  Previously no money was budgeted(common), but the ED spent it when needed(also common).  How is this good planning? Budgeting and goal setting should be done at the same time.  Money is a key resource when considering Marketing tactics.  General guideline is 5-10% of annual Revenue.

Almost 3 years later that Non Profit has a dedicated Marketing Manager with an annual budget.  Other non profits in the area are looking to them for advice on Marketing and Membership has grown.  They have an annual process of Goal setting before the Budget is determined for the following year(yeah!).  This has also opened communications between the ED and the BOD.  Our facilitation that afternoon featured the SMART Goal methodology which certainly had an impact on the way this group does business.

Click here to read my blog on how to build a Marketing Plan or Communication Strategy   LearnMore-Red-Primary-16

For a look at other Case Studies  –Click here

Business PhotoC.S.Simons Consulting specializes in Management & Business Strategy, offering 25 years of successes for you to benefit from.  Offering a Shared Risk Platform – Results Guaranteed or you won’t be billed!   ContactUs-Blue-Pill-16

 

Carpe diem!

Non Profits & Small Business – How to plan a Communications Strategy

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Content Management, Frequency, and Target Audience are but a few of the components in a Communications Plan.  Non Profit(s) and Small Businesses need to be very strategic on what messaging they need and which tactics to use when creating a Marketing Campaign due to the amount of time needed and financial investment it takes for these to work.

Knowing the attitudes and motivators of your buyers/supporters/followers has a direct impact on measuring  a plans effectiveness.   The following are excerpts from a white paper published by C.S.Simons Consulting  in 2012 designed as a FREE resource for those businesses who recognize the need for better effectiveness in their communications but have limited funds to hire a professional Marketing firm.  There is also 2 worksheets available to expedite your Communication Planning, feel free to contact me if you would like a copies.

Why develop a strategy around a Communications Plan?
  • Planning contributes greatly to success.
  • Increases effectiveness of messaging
  • Identifies key users and followers
  • Engagement, engagement, engagement
  • Keeps entire organization focused on Strategic initiatives

What is Strategic Communication?

 Strategic communication is planned and accomplishes a specific outcome.  It is essentially a project plan for everything you may need to “Market” a product, service or business effort. Designing one will ask the right questions of you as to how you want it presented(see below).  It is designed ahead of time so your company controls the exposure and narrative that puts your product/service/effort in the best light to the people or businesses you want to see it.  Otherwise you risk the reputation and message being delivered.  Below is a checklist to help you organize a Communication Plan of your own.

  • Strategic communication is targeted to a particular audience or audiences utilizing known demographics about your customer.
  • Strategic communication is designed and delivered to produce a desired result
  • Strategic communication aims for results with the best possible use of time and resources.

Strategic communications should be tracked, with measurable performance.

Some key questions to consider at the start of the process are:
  • Where are you now and where do you want to be?
  • What will you need to do to get there?
  • What role can communication, education and training play to achieve your goals?
  • How will you learn from your experiences?

 

 Be careful! – what to avoid
  1. Communication is part of the entire Policy and Strategy implementation process.   To implement a Communication Strategy there are many projects to be prepared and undertaken. There must be an understanding of what your customer wants from you, who your customer is and where to find them.  Demographics, Attitudes and Motivators is how it is referred to with in the Marketing world.  These are addressed first prior to forming a Communications Strategy around how to effectively have that group pay attention to you.  Most business people or Executive Directors would agree with this yet this stage often receives little attention until much later on.  Often communication is considered only after plans, polices or projects are prepared which strongly reduces the potential for successful project implementation.
  2. Ad hoc communication is not effective.   There is an enormous difference between communication strategically planned and that without strategic planning.  It will miss the target audience or deliver the wrong message.  You may have very little time to get the attention of your audience, so every little effort needs to be effective.

 

FREE Checklist for planning a Communication Strategy

 Message: This will comprise a combination, of WHO you are trying to speak to, and WHAT you want them to remember or HOW you want them to act.

Timeframes & Frequency: You have to clarify if you are designing a communication strategy with long term goals, a communication plan with short term goals or a communication plan for a specific project. A Strategic Communication Plan will likely utilize all three types of communication plans and is a comprehensive approach for long term messaging.

Target Audience:  To create a master strategy, match the goals of your strategic plan to groups identified in the recent membership survey.  The membership survey results provide detailed information on demographics such as age, proximity to lake, length of membership, and communication preferences.  Use this information to choose which medium to communicate to each demographic.  To broadcast a particular message, many organizations choose multiple mediums and alter their message slightly to improve connection with a particular demographic. Much of a communication program success relies upon the content connecting with its target audience.

Budgeting:  You must consider costs when planning a single event or campaign style communication.  This needs to be in the planning phase to insure its completion.  Too often plans don’t become reality because the finances weren’t thought of ahead of time.  Include time of any staff in your estimation even though it is part of a different line item.  When you want to determine the success of a tactic, all costs must be considered.  Include any print materials, ad space, postage, graphic design, sponsorships, office supply and smallwares (table, chairs, poster board, raffle prizes, etc)

Content:  The body of the communication and the vehicle for reaction.  Utilize demographic information to “speak in a language” that the reader will understand.  Incorporate grabbing headlines, pictures or graphs whenever possible as this is a proven to increase attention and action.

Tools & Format;  what method or medium would be best suited to deliver message and achieve results.  Consider the target audience, and how to best reach them based on prior success.  If trying to reach a new target audience, which design works best for the market? Is capital expense needed for a first impression?   Is graphic designing needed for a mailing or email blast?  Print ready advertisement design?  Pictures needed for social media or press release?

Instrumental style communication – You need to be conscious of whether you are dealing with a communication campaign that is organized to raise the interest of the public, politicians and other special groups for a particular issue, or to generate support for policies or plans.

 Interactive style communication – A plan is for establishing active dialogue with certain groups and fully involving them in planning, implementing or evaluating (Feasibility study)

 Maintenance and Accountability;  to assist with daily management of any communication campaign, the creation of tools to help monitor message, frequency, placements and responsibility should be utilized.  Examples of such tools are provided in the tools section of this report.

 5 considerations for Successful communications
  1. When implementing, regularly check how feasible the plan is, and what disasters may occur.
  2. What will affect the success of the message? Which stakeholder is it designed for?
  3.  Be flexible in adapting the plan in case of shortages in money or time.
  4. What will people’s reaction be – What do they want in the communication?
  5. If the communication is announcing an event or action item, how much time is given for members to react?

 

When to use a campaign and when to use single source messaging

A campaign can be designed for virtually any application, after all, more is often better when done right.  The primary goal behind a multi-tactic campaign is to leverage each individual tactic/method to achieve greater impact with the desired message.

Some occasions for use of a campaign

  • To educate a population on a particular subject
  • To tell a story of your brand
  • Establish a dialogue
  • To create recognition of a subject
  • Public Relations
  • To display a style or belief system

Single source messaging which is a one time event through standard media such as direct mail, email, website or online posting and is designed as a “one and done”.  It doesn’t have a direct connection to either the message that LSPA has agreed to or a direct connection to the mission of the organization.  While it is important and informational, it may not lead to a call for action like those in a campaign will from its recipients.

Some occasions for use of single source messaging

  • Scheduled events
  • Confirmation of expected information
  • Thank You’s
  • Annual Reports
How Non Profits can identify the role for a Communication Plan

 To identify the role of communication it is necessary to ask:

  • What is the current Knowledge, Attitude and Practices (behaviors) of the target groups and stakeholders involved?
  • What reactions do you want the target groups and stakeholders have?

It is also important to clarify what are the desired changes in the people involved in this issue:

  • Is it to change the attitudes of people and/or organizations
  • change the mind sets – the way people look at a certain issue
  • change the way people feel about an issuer
  • change behavior? (more difficult)

To assess the role of communication in this change process it is necessary to understand if the problem is due to:

  • A lack of awareness that the issue is important
  • Negative attitudes towards the issue or the solutions
  • Lack of skills or “know how” to make a change

In these cases the different states of knowledge, attitudes and practices need different communication solutions, and communication may be used as a sole instrument.

 Frequently made mistakes in communication planning

 The objective of the communication activity is not properly defined or is too vague

  • The objectives are too ambitious to achieve
  • There is lack of knowledge of what is precisely wanted from the target groups and what is required to achieve the result:
    • e.g. is knowledge needed? new skills and practices?  
    •   e.g. do we need an attitude change from them?
  • Communication goals are set to change other people’s behavior and values without understanding how the behavior change can take place
  • The fact that people need social, economic or other benefits for any kind of behavior change is not considered when objectives are defined
  • Indicators are not defined for the communication targets/objectives, making evaluation of the outcome difficult.

 

For more on this subject or to discuss additional ways to help your organizations Ability to Generate Revenue, contact C.S.Simons Consulting.

 

Carpe diem!