The Timing and Training of Market Leadership

"Black Friday” sounds rather ominous to me. Though retail in-store sales were “only” up 5.1-7.2% over last year, depending on which horrifically negative expert you choose to fear, this was to be followed by a booming “Cyber Monday” for online retailers.

No matter the outcome, this’ll be followed by “Identity Theft Tuesday”. There’ll be the traditional day of rest to filter your personal data, and then it’ll be “Male Enhancement Offer Thursday.” There’s nothing like Spam for the Holidays.

True as this is, there’s much to be learned from the onslaught. “Congruence” with the season matters, as does incremental timing within the season. (You wonder why we put “Holidays” instead of “Christmas” on our Card offerings? It ain’t for being PC boys and girls – my stance there is well-known – it’s so ‘your’ card has a chance of staying relevant ‘til New Year’s.)

Likewise, we’ve all heard the lazily disregarded radio ads that tout “Summer’s almost here!” in September or “School’s just around the corner” in November. Sadly, we’ll continue to hear Christmas references until it becomes an utter embarrassment to all Wise Men.

The money spent on being perceived as “late, lazy, and/or irrelevant” undoes most any claim you’d have to being fast or efficient. Your example trumps your words, sort of like parenting, but with faster public humiliation. (Spears and Hilton families may beg to differ on this point.)

The antidote for the perception of being behind is of course, to lead. You may ask, “Lead what? Lead how? And what ever happened to your request for submissions on the not-so-sharp non-salesperson who missed 3 sales opportunities while he was replacing your water heater?” Talk about timing!

Leading is an even more fearful concept in a time of great hand-wringing, “holding back” and “Let’s just wait and see what happens.” I’ve long persisted that the last one is more correctly stated as “Waiting to see what the leaders in my market do first, so I can make sure it’s safe to do something.” The leaders lead. The followers follow.

Most would say they would unfearfully lead if they only “knew” what was coming. Let me remind you I’m not talking about going into battle. Or before a Grand Jury. I’m only talking about marketing leadership, or in the case of the current economy, a marketing presence while others retreat. An unrisky strategy if ever there was one.

So, “marketing leadership” becomes easier when a bunch of “me too’s” falls from existence. The marginal contractor, made moreso by his marketing invisibility, will likely fail in 2009. There’s not enough excess to support the invisible. The corollary of “visibility” holds true and can easily be deemed as leadership. Would you rather run a race against 25 competitors or 10? The timid’s response is “Depends on who’s competing!” And the answer will always be, “The leaders”. I presume you’d like to be included.

Yet this year, marketing visibility with efficiency will be our push at Hudson Ink. There will be no “street wise” example overlooked, no tightwad’s angle cast aside. Likewise, though I’ve been saying it for 5 years, your bloated YP budget has got to go. Now. Your resistance to lead before the need arises, cannot wait any longer. A healthy market is forgiving to slackers in the pack; a tight market grants no leniency. Same goes for us.

I’m in this thing with you. (I won’t bore you with our plans, but suffice to say they’re identical to the ones suggested for you.) I’ve joined another Coaching Group, helping create an entirely “different” Coaching Group (more about this in upcoming months) and am staunchly encouraging readers to join in their own. Why?

A mastermind group’s input is potentially the most efficient system on earth. Problems get sliced, diced, repackaged, solved by example, and focused upon with laser-like intensity. You don’t feel like your market’s only pioneer (the ‘arrows in back’ analogy coined by followers no doubt) when you hear a gaggle of “Go for its” from those who’ve been there, done that.

Yes, we offer Coaching Groups but I’m not trying to “sell” you ours (Platinum is sold out anyway) yet I urge you to get involved in one filled with a leadership mentality. You rise – or fall – to a bracketed level of performance and attitude.

NOTE: We are having a F*R*E*E ACCESS Teleseminar for ALL SMI READERS on December 10, 2008. I’m putting 6 of the highest paid Contractor Coaches on the phone for ONE HOUR. All are required to share a strategy or tool worth at least $10,000 to you. I cannot accept more than 500 attendees. You must register here.

Quick Report on a couple of Groups to Avoid and Embrace here.

Now, this finally brings me to the smorgasbord of “Group Think” support by listing the answers to a question posed two issues of SMI back.

The Missed Sales Opportunities

Sometimes I think I have all the answers, and just then God laughs at me and makes me trip over something. Like the other week, I asked for “three ‘missed’ sales opportunities" from the plumber who was at my house. From a DELUGE of reader emails, it appears he missed FIVE opportunities. Counted ‘em myself. Here you go…

1. The Sump Pump. This was so obvious Stevie Wonder and Estaban both wrote in with the right answer. Of course, I told the plumber that I wanted him to look at it before he left and let me know. He didn't. I still have the problem and will call another to solve it. Sorry.
2. The “Tankless” water heater. Ugh. He actually told ME about this option, to which my wife, also known as, “What’s a budget and why would you want one?” expressed interest. Never told me the price, availability, installation time, benefits… nothing. Me and my “budget” are secretly relieved.
3. The Maintenance Agreement. Talk about a softball. I’m standing there in 4” of mud on a Sunday, faced with Emergency OverTime Double Secret Upcharges with hints of gas fumes in the background… and not ONCE did the word “Agreement” emerge. (This company DOES offer them. I guess you have to beg them for it, along with certain quotes.)

Nearly all of the respondents got those right, for example:

“I would recommend our Maintenance Plan or complete home plumbing inspection – this reduces the chance of another one if these last minute, Sunday afternoon issues and maybe save water,” said Tim Bruce, General Air Conditioning, Inc.

“He missed the upsell on the water heater (tankless or high efficiency), cost to bring gas installation to code, and replacement/repair sump pump. Not to mention a service agreement on the new unit,” explained Garth Hepler, Roth Heating & Cooling.

Yet the real “thinkers” added the following….

Paul Guzman of O'Connell Plumbing, Inc. wisely suggested a Flood Detector/Alarm.

And Tom Hawkinson of Air-Tech Services saw another angle when he suggested, “Hey, Ronnie turned off the water heater for you so you wouldn’t die from carbon monoxide poisoning. Good move on Ronnie’s part (maybe the only one). But wait…how do you prevent carbon monoxide poisoning in the future? Well, sell the customer a carbon monoxide sensor, of course.”

So there you have it. Timing, success, and mastermind thinking all rolled into one. Makes you think there might be a connection among them. Hope you’ll join us on our F*R*E*E* Coaching Teleseminar on December 10. I may not ever invite these people back here again, so you’d better go register and see what the heck’s going on. You might learn something from us, and almost certainly, we’ll learn something from you.

Have fun,

Adams Hudson

Marketing MapQuest

Last issue’s editorial, about how to “NOT” sell things to customers in need set a record. It achieved the highest click through rate of any editorial in 2008. (If you don’t know about “click through rate” it has nothing to do with how fast Dorothy and her Ruby Slippers get back to Kansas. Nothing.)

Why do I tell you this?

1. To brag. Look, I’m a marketer; we live for stuff like this.
2. To let you know that your customer’s response is a vital measurement of your message relevance.
3. Measure anything you want to improve.

None of the above affected the story’s popularity of course. (Read here if you were one of the 3 people who missed it.) The above list is merely the outcome, the result, and the trailing indicator of what to do next.

Wall Street is full of trailing indicators that give forecasters the upper hand (and lower GI issues) in picking what to do next with the money... if anything. Equally in marketing, trailing indicators help you spot rising trends, products on plateau, those in decline.

Trailing, Forecasting, Surprising Results

In these pages and in coaching groups, we’ve long been pushing “down” in YP expenditures. Seems illogical since we design ads for a fee, indicating either business idiocy or inability to cite profit as a sole reason to recommend.

Results are generally a huge savings, with either no discernable lead drop (provided the ad is improved) or an increase in lead count.

Though certainly not due to contractor’s insistence for better cost per lead, yesterday’s Wall Street Journal cited that the Yellow Pages print and online are in serious financial straits. Shares of R.H. Donnelley and Idearc (top publishers) have plummeted 99% in the past year. Looks like the world realized the decline of relevance all at once.

Though there are a couple dogs in this next media, we’ve pushed way “up” in targeted direct mail, meaning a higher quality list at a lesser quantity of mailing. Our real push started in June 07 as the new construction fallout was apparent and markets were poised to be flooded with low-cost competitors. The higher- than-expected results help launch what we now call “Cluster Control” (Entire Seminar devoted to this winning strategy at the ACCA National Conference, February 24-26 in Fort Worth, Texas.)

Conversely, we’ve advised “down” for broad mailings – Card decks, blind “occupant” mailings, and others chosen primarily for volume. Bad idea. Let your competition be fooled after a huge mailing has him saying, “Why isn’t the phone ringing?” Hear me: Frequency over reach.

As the economy worsened through Spring 08, contractors began reporting better than average returns on a proven cash producer.

Customer Retention got a large, unintended boost this year. Seems if “asset protection” is wise in a downturn, it’s hard to name an asset more valuable than customers. (If you shout “Money!” please recall the source of that money.)

What’s Working Now

When you read the above, you can sense the leading indicators. Though I’m a little shy to project too far out, there’s broad insight from contractors who’ve shared healthy results.

Example from Real contractors…

Bill Stribling at Sullivan Service Company is a great guy. Very well-liked by customers; but, like many contractors, sort of “overlooked” Customer Retention. He got more serious about it last year. He said, “To say things have been slow is putting it mildly – we were almost to the point of calling our own numbers just to make sure the phone still rings! Then the newsletter you did for us went out. Suddenly it’s all anyone is talking about – church members, friends, and thankfully, customers!”

Jimmy Eanes, another contractor friend of ours told us “I sent out 6800 issues to my customer base and during the next 4 weeks, over 124 calls came in. Some of them we hadn’t spoken to in 3 years! We sold $169 tune-ups (great idea) yet normally have trouble selling them at $79! Plus we sold 12 complete systems for $62,728. Basically, my customers love the newsletter… and we do too!”

Juan Cardona in West Virginia noted, “Though I sure don’t tell my wailing competitors, we just had our best October ever. It feels good to be able to serve more people.” Main factors: Good hire from summer; Fleet-wide truck wrap; “Clustered” Direct Response; Newsletter.

What’s clear from the above – Decisiveness. Action (largely resistant to over analysis or needing approval), Willingness to change and track. Not easy in turbulent times. Maybe you need.…

Your Marketing Map for the Next 90 Days

To help all of you move forward, we’ve launched the most ambitious schedule of our lives, with 2 upcoming events in December, another TBA in January -

1. Marketing Map – Webinar on December 3 hosted by ACCA for ComfortU members. Go here to join or register.
2. First Time Ever. No plans to repeat. Coaching Club Bonus Meeting – December 10. Six of this nation’s hottest (and most expensive!) contractor consultants will be in my office visiting. I figured, “Why not put ‘em to work!” Basically, there’ll be $35,000 a day worth of talent on the phone for those who register soon. Sales, Hiring, Customer Service, and Marketing topics covered. Require each expert to “GIVE AWAY” a tool or idea worth a minimum of $10,000 on the call. Thought about making you pay for this one ($1000? $500?) but it’s a no-cost event. Limited to 500 lines. Am not buying any more than that. Register or miss out, your choice. A surprise announcement may be made.

“Hey, Let’s Lose Some Sales! Blame it on the Economy and Cheap Customers!”

A True Story (much as I hate to admit it.)

It happens. I was nervously preparing a speech to my church, (for BOTH services, 2500 members or so) and as you might guess, I’m “just a tad behind” getting ready. I decide to take a shower at the last possible second, since its considered bad form to reek at the lectern. Then, since I have remarkably sensitive powers of discernment, I notice….

NO HOT WATER!

That’s right. Go ahead and laugh. I took a shower that would give a Penguin hypothermia. As a result, I complete the entire cleansing process in 2.8 seconds. Possibly God’s way of making sure I wasn’t late.

Anyway, the water heater was in the home when we moved, 11 years ago. Figured it’d be “on the list” soon enough. We did the roof three years ago (no, I don’t remember by whom, haven’t heard back) and paint the next summer. (I referred him ONE $11,000 job, never acknowledged, never got re-contacted. Oh well. Guess I can’t remember him to refer for the neighbors across the street.) Since we’re now contemplating a kitchen remodel, the water heater must’ve gotten jealous.

When I swung open the basement door, I though I heard, “FIX ME, FIX ME! I’m gross and underappreciated!” in a rusty little voice. So by golly, we did. Called the plumbing company that also does our heating and air. Things went downhill from there.

The rest of this story might be a tiny bit painful. Please know I don’t do individual consulting any more (except for Platinum members) but thought you might find this valuable. Also realize that most homeowners would just be happy to get hot water again. They’re not even THINKING of telling you where they might be “sellable”. This story reveals the other side of the sale...

The answering service on Sunday had no idea who I was. Understandable actually. Told her everything again. Tech calls me back. “HAY!” he says at Volume 12 “CAIN’T GIT THERE FOR TWO HEURRS.” Understood. What he lacked in couth he made up for in conversational economy. He said he was busy, but his timing bore a remarkable resemblance to the NASCAR race. Ten minutes after the final lap, the doorbell rang.

“HAY! I’M RONNIE WITH and…” since I refuse to put the rest of this article in capital letters for fear of grammatically-correct hate mail, just know that Ronnie doesn’t have an “inside voice”. People two blocks away became startled when he spoke.

He did a good job telling me of his “trip charge” for a Sunday visit. Understood. Said it had gone up from $69 to $80 recently due to fuel prices. However, my wife promptly pointed out that fuel prices had “dropped dramatically… so was the trip charge going back down?” For the first time in our 87 year marriage (rounding up), I actually gave her “the look”.

I gave Ronnie an out by complacently saying, “It’s a moving average, so…” but Ronnie interrupted, feeling compelled to defend it anyway.

For 5 minutes he discussed the $11 rise. He told of customers who were mad about it, didn’t understand it, and the problems the CSRs were having with explaining it. Frankly, this sounded more like “their” problem than mine, so guess who wasn’t interested?

Sales mistake: Ronnie forgot that my “real” problem was no hot water. NEVER confuse your customer’s problem for a reason to vent your own or to create a problem that clearly wasn’t. It got worse.

Ronnie and I ventured indoors, he stopped. “HAY! I GOTTA PUT ON THESE!” Sorry. He put on his Shoe Covers, but instead of “GOTTA” he should’ve said, “At , these are required to protect your property.”

Small Sales Infraction: “Justify” your behavior, habits, and practices as your “difference” on every opportunity. Otherwise, is it a burden… or branding?

As we walked toward the Neolithic Water Heater, just past the dinosaur bones, I pointed to my sump pump, which had worked overtime scavenging the water produced by the erupting heater. “HAY!” I said just to get him back, “After you finish with the water heater, my sump pump is very erratic. Works when it feels like it.”

“Will do” Ronnie said as he fondled the water heater. “OH man, this is gonna be a problem…” and his voice trailed off. I left the basement, Ronnie, and the heater to work things out.

Eventually, Ronnie tells me he “can’t” get a gas water heater down there like I had. Said the last plumber fouled things up. Said it was too dangerous, code wouldn’t let him, plus if he did (though he’d already said he “couldn’t”) he’d have to move it way away, run more gas lines, lots of cost. Recommended full electric, but said there was another option for “instant” hot water, no tank, a bit more cost. Would get us the estimate on both. Stop right there.

Two sales mistakes: Told me everything he couldn’t do, compounded this with “bad history”. Sometimes this is done to support the upsell, but in this case, he told me what a mess things were, how the last plumber was an idiot, “code violator”, etc. Failed to mention why his company had stood inches from this area repairing a sink drain, but never mentioned my water heater was a Saturn V rocket, spewing Carbon Monoxide.

Ronnie had unwittingly entered the Serious Risk Zone: What if I had put the water heater in? Or my beloved, well-meaning, but now-deceased relative? Or an ill-guided representative from this company? Is Ronnie psychic, or just regularly prone to insert shoe cover in overly loud mouth? A brief detour…

In top automotive sales-training curriculum, you NEVER say or agree that the clapped out trade-in is “junk” even if the owner uses that word. You are to say, “Well, you’ve certainly extracted lots of miles out of that one…” or “You must be pretty good with maintenance to have nursed it this long” but you NEVER agree or suggest that it’s junk, or that “their mechanic” must be an idiot. Same thing here. It gains nothing.

Ronnie tells us he can’t finish the job that day, but has shut things off to be safe, which we appreciate. Says his supervisor will get with us early Monday to report and suggest. He does. Says to remove the old one (a job and a half) and install a new 50 gallon “low boy” all electric heater will be $850.

Two more mistakes: First, the “exact” number of $850 is too round, imprecise. Prices weren’t broken down. Since I don’t browse the water heather section often, how am I to know if or how this compares? Is the labor $50? Or $500?

Second is worse: Fails to quote us the “other” option that my wife was honestly interested in. We then would’ve had comparative value instead of mild sticker shock, and actually gotten to choose. In terms of the kitchen remodel we’re planning, this might’ve been worthy. Did he ask? Too late now. Ronnie needs to cancel his Psychic Friends membership.

Though very shaky in his sales presentation, we half-reluctantly bought from the company. (A lesson in there by the way. They mail us several times a year, call us for reminders, thank you’s, treat us very well on the HVAC side, and have an “agreement” with them. I’d call myself a “tentative” customer on this side. We’ll see.)

Would others have done so? Overlooked the missteps? Checked around? Bought more if asked?

Epilogue: Those of you convinced the economy is solely to blame for hurting sales; look inside to see if a little training investment mightn’t be well spent. Anyone in touch with customers needs it. (Hint: your CSRs commit even more sales infractions.)

If you think this is the “end” of the story because it was the “end” of the sale, then you’re definitely a candidate for improvement. Why?

Because some who were reading closely figured out that Ronnie also missed three, rock-solid, nearly guaranteed sales. But he didn’t even try. Send me your answers here: askadams@hudsonink.com

Questions:

1. How can you raise your average transaction size on every call, starting now?
2. Do you believe that great Customer Service Skills also sell?If so, what are you doing about it? (If not, please hand the reins of management to someone else, immediately.)
3. What are you doing to be remembered and referred that is different from “all the others”?

Simple Choices

Article and text NOT by Joe the Plumber

(I did this only for the Google rankings. A marketing lesson already.)

My teenage son just got an earful (perhaps two) about having good judgment. “We’re just a product of our choices,” I said, trying not to call attention to any of mine.

He’s driving now, which causes me to squirm even as I write the line. We gave him a Driving Contract, which is required for modern day “with-it” parents. He signed it with slightly less enthusiasm than putting a Bic lighter to his own flesh. Somewhere in there, the topic turned to friends, influences, news.

I’m as sick of the economic non-news as you are. (Part of the reason its called “NEWS” is something in it should “NEW”.) I’ll go so far as to say the following, which could cause a flurry of hate-mail being sent my way.

I’m not crying about the Economic news, especially if....

1. We start looking at what’s more important in life than money. How can it be bad to return focus on family, simplicity, and doing without meaningless clutter? Gosh, we might read a book instead of forking over $50 to go to the movies. Which one could “enrich” you in two ways?
2. We remember that if we weren’t selling our stocks or homes when they were “up”, why in the world would we become anxious in contemplation of doing so when they’re down?
3. We recognize that the “value” of our gains was merely “potential” value, only becoming realistic if sold. Big difference between “potentially” and “realistically”. Potentially your service van can compete in the Indy 500. Realistically, you’d be better off on foot.
4. Embrace the “C” word. I’ve yet to see homeowners go without heat, or plumbing, or electricity. Be very thankful you’re in your field of work, and that commodity is not a four-letter word. And more importantly....
5. Just be thankful, period. You’ve got health, or the hope of improvement, plus family, friends, and faith in better days ahead. Even what Americans call “poverty” materially dwarfs 70% of the rest of the world. We need to show less attitude, more gratitude.
6. All this stuff is God’s anyway. We’re just renting it. (Some of us a little behind on the payments perhaps.) Regardless of your faith or belief, there’s a pretty decent chance you believe someone other than man made the earth, its resources, its glory. Further, I’ll imagine you’ve yet to figure out a way to take it with you when you’re gone. Want what you have.

If THIS is what the economic turmoil brings us, bring it on. It’s here anyway; neither you nor I caused it; we can only control how we respond.

A choice, as I see it.

By this time, my teenage son had passed out, bored into a slobbering heap. I hope some of it got through, and those are my hopes for you too. Now go share some good news. There’s plenty enough to go around.

Thoughts and considerations –

1. Do you have ONE PERSON you’d like to thank? I bet more than one. Why not ‘pay out’ with some thanks to somebody who could use it? Pretty darn easy, too. Click here to get started.
2. Do you have a whole BUNCH of people you’d like to thank at one time? Like, um, maybe YOUR CUSTOMERS? Take a look at Holiday Cards ANYWHERE YOU WANT. Ours are here.…
3. Would you like to triple your market penetration for pennies? Let us send you the Radius Marketing report, click here.

Recession Proof Your Business Now

From BusinessBuilder.com - "There are some businesses that continue to thrive during economic down times, mostly because they offer products and services that are always necessary or in demand. These businesses are recession-proof. But many make missteps that cause even their own decline…”

As a contractor, you’re taught to almost hate the word “commodity”. It reeks of sameness, lowest-common denominator, “price is the only differentiation” type mentality.

Yet, in contractor marketing, we do all in our feeble power to create distance between you and “that” word. We promote uniqueness, value-driven benefits, creating an iron-cage of loyalty and referrals because of the service you provide.

In all of this, we know a damaging truth: the skill sets and products don’t vary tremendously among other contractors who call themselves “good”. The variance is how you market your particular company to create differentiation. Now, in the grips of an economic downturn, there is a word that has a sweet ring all its own:

Commodity.

If you and I were selling luxury yachts, or waterfront condos as a 2nd home, or any of a zillion businesses even remotely “optional” we’d be scanning the classifieds for work right now. Yet, in the contracting world of keeping homes comfortable and safe, with running water and a dry roof overhead, there is a silent word of thanks that this is our calling. Oddly, to offer a “necessity” becomes its own luxury. Yet, many contractors will do something that – as humans – gives us all reason to shake our heads in near disbelief.

They’ll go silent. They’ll hide. Presumably, they’re wondering if becoming invisible will make them visible. Sorry, I can’t figure it out either.

At the very point on the economically-dictated map when stepping into the light of availability would make the most sense, many contractors play hide and seek. The customer would prefer not to seek, but to find. Instantly, if possible. Thus, the cowering contractor who was “waiting to see how bad it really is” becomes his predictor of fate.

Yet the corollary to this assessment is where my best clients would rather I’d chosen to silence myself. It is that if enough contractors think invisibility is a good idea, then that throws the door open wide for them. It’s almost as if half, or more, of the competition has suddenly left the market.... which in true service terms, hasn’t diminished at all.

The HVAC system doesn’t read the newspaper, and will thus fail if it feels like it. In fact, more readily if unmaintained. The water heater is neither Republican nor Democrat, and will collect sludge at the same rate as always, choosing to rot at its normally scheduled time. My breaker box is just as old and crusty as most of Congress (yet more agreeable) and doesn’t change its rate of corrosion for anyone.

So, the service business is the same now as ever. Only difference is the fearful contractors are leaving it wide open, walking away as if the home’s systems are doing exercises at night to prevent failure. There’s even a sound argument that the service business will expand due to more “cocooning” (marketing speak for more time indoors, at home) resultant from the too-expensive off site vacations, restaurants, and entertainment. I for one agree, but don’t want to take you too far too fast, on the assumption that I somehow benefit from a “pro-marketing” push.

Oh, sure, we marketers always think marketing is “the” answer, and in my not-so-jaded reality voice, I contend it usually is the answer. But only to a problem that is related to generating phone calls, building image, recognition, RETENTION, and referrals. If you happened to notice one word in there more prominent than the others, there’s a reason.

I get paid most of my money to generate phone calls. So be it. You find this proclivity “mystical” but I find your ability to detect a leak you can’t see “other worldly”, so we’re even. So, my reverence and strongest advice is for retention right now. (You can call us to get your phone to ringing, but it’ll be a lot more expensive and quite honestly less productive than the following.)

See, “your” business economy is not currency. It’s customers. So, to go one alliterative step further, customers are your currency. They’re cash. They’re gold reserves. They’re your oil pipeline. And if any of those were in your physical possession, you’d do all in your power to “protect” those, right? Same thing here. Your focus upon your most valuable asset – customers – is premiere, right now, like no other time.

And for those of you who might slip into “fear-think” mode and say, “Hey, they already call me when they need me so I’ll just do nothing” are woefully misguided. I don’t know who told you that customers have 100% recall, 100% loyalty, and that all 100% have you on speed-dial, but sorry to let you know: they don’t. You think the American public doesn’t know and remember who Coca-Cola is? Then why-oh-why do they continue to remind us? Perhaps to continue building and maintaining their position of 65 year uninterrupted dominance in our brains, that’s why.

Your job is to service customers, not to disappear on them. So, if you want a marketing tip or two, be a good steward of both your resources and your customers by.…

1. Reach out. It’s not all about you – at least to your customers it isn’t. So when you make it about them you score every time. This is one reason why your newsletter is so important (ask for a free sample if you haven’t yet done yours for this season). You get to reach out to your customers about more than just their contracting needs – but you reinforce the relationship and their loyalty for when they do need you.
2. Remind. Do you remember everything that you’re supposed to do? Didn’t think so. So why would you think your customers remember every time their equipment needs to be serviced? Or who serviced it for that matter? Remind them that you can handle both for them with your branding and TOMA campaigns (call us if you don’t have one and we’ll get you started before more of your customers forget that they’re your customers).
3. Reward. If your customers repeatedly choose to buy from and refer you, why not make sure they’re getting something out if it? Use discounts, “bonus dollars” towards future services, or small gifts to reward them for their loyalty.
4. Respond. Your customers want to know that they’re being heard. That means when they call with questions, concerns, or outright complaints, you respond. When they know that you’re paying attention and not just ignoring them, they’ll know you really care – which strengthens the relationship and their loyalty to you.
5. Reap referrals. There’s no better way to gain automatic trust than through a referral. You’re covered under the umbrella of whoever referred you. And if you’re not asking for referrals, you’re missing one of the most valuable – and least effort – revenue streams available to your business. Not such a great idea with this economic forecast, eh? Call us for a free Endless Referrals report and start mining this high quality group now.

Before you say “why bother”, you may want to consider these cold hard facts:

• It costs more to find a new customer than to keep an existing customer. It’s estimated that landing a new customer costs 5 to 20 times more than selling into an existing relationship. (Source: http://www.salesresources.com/)
• Just a 10% improvement in customer retention results in a 30% increase in the value of the company: That’s absolutely huge, and although effort is involved, the process of implementing a sound customer retention strategy isn’t hard. (Source: Bain & Co.)
• The probability of selling to an existing customer is 60-70%: And there’s only a 5-20% probability that you will sell to a new prospect. (Source: Marketing Metrics)
• 80% of your sales come from 20% of your customers. (Source: http://www.marketing.about.com/)
• A 5% increase in customer retention can increase business profits by 25% to 125%: Read it again if you have to, because those increases again, are huge! (Source: Gartner Group and “Leading on the Edge of Chaos”, Emmett C. Murphy and Mark A. Murphy, 2003)

Neither of us can “change” the news. All we’re able to control is our reaction to it. Thus, the choices are to do nothing and cause that exact outcome in our business or to market prudently from a true stance of fearless invulnerability. I assure you, either choice will make a tremendous difference in your confidence, business and future.

The Great Email Backlash

I hate it. We all hate it.

Email has turned into the digital telemarketer during dinner. It's too much, too often, and - in my lowly estimation – too cheap. I wish they'd charge for it so the spammers, slammers, and scammers could just go bother someone else.

In the meantime, you and I nearly dread the return from a vacation, finding inboxes crammed with promised millions, Viagra offers, male "enhancements" and some scandalous promise from the marketing world. (Yes, probably even me on occasion.)

So, the legitimate emailers of the world are sort of trapped by association. This very e-newslettter goes through massive filtration to keep out of the trash (though we lose a few some every issue) and has gotten 'dressed up' mightily over the years to maintain a credible presence. We've taken steps to greatly increase readership, get by the "wrong" filters though.

Many of you have ezines for clients who visit your website. Yahoo! Great move, that's an awesome babystep toward the relationship. But it cannot stop there, or in fact, it WILL stop there…. then retreat.

MarketingSherpa – an online marketing training company - conducted a study of 4,000 email/ezine publishers and found some startling news about email backlash. If you ONLY use email as a customer contact, they found that "Credibility and readership" were most at risk. Seems those might be important.

Shocker 2: They found many online, solely digital based businesses "finally" resorted to postal mail to drive customers to portal and commerce sites with resounding results. One seminar company ($40million in sales) that teaches how to make money on the internet found its biggest response to seminar attendance was from – gulp – postal mail.

Re-read the first 3 sentences of this article. Now read the rest of this article and the strategies you should consider now to grab your customer's attention while your competition is looking for the "cheap" way to drive them to boredom…

Bottom Line: Postal mail is back, in a big way.

Almost immediately, we launched a paper and ink newsletter mailed to our top clients (CRC and MegaMarketer members receive The Contractor MegaMarketer every month.) We've been bugging you about this trend, feeling it would only get worse. We were half right.

It got worse, but for two different reasons: "Distraction and interruption".

Whereas postal mail can be read at leisure, and other media can chosen or not, email continues to relentlessly 'bling' into place, ever heightening the stack of "unopened" mail, each begging for attention.… while some legitimate email lands in the SPAM folder for no discernable reason. (Case in Point: I'm doing a product exchange with a man I've communicated with for a couple months; today, without warning I see his proposal is in my SPAM folder…. and has been for 2 weeks. Why? He had a "dollar sign" in his email.)

It's Not A Youth Thing, Mega-Byte Breath

I was sure I was on the "other side" of the age group attempting to form a "Let's Kill the Sender of the Next Email I Didn't Request" party. But no, not by a rather long shot. And the "target" audience that contractors are after hate email more than you do!

So, here's where I admit I was half-wrong, twice in one article. Quoted from Vertis Communications study on readership habits and advertising response:

"Despite the rise of website, email and other electronically based advertisements, printed direct-mail marketing pieces are still widely read, especially by women ages 25 to 44.

"Eighty-five percent of women ages 25 to 44 (with email accounts) said they read printed direct-mail pieces compared to just 53 percent who read email advertisements. The percentage of young women who read email advertisements has not changed from 2005, when 54 percent indicated they viewed this type of marketing. Numbers for women 45-65 were 94% and 45%, increasing the email to postal gap markedly."

Double oops. Your "target" group prefers postal mail, and email readership hasn't gone up at all in 3 years. (Remember, the prediction was that the US Post Office would be nearly shut down by now!)

After a year of our print plus email versions, results have been astounding. We "point" from one to the other, engaging people at the level they prefer. Likewise, we point from email to web, web to phone, and mail to both. Email alone could never accomplish this. Also.…

Ever try finding 'that' email you so enjoyed 4 months ago? Sure, I can print it out and save it, but who does? But with "real" mail, I can keep up with it in one location quite handily. Mark it up, dog ear, write on it, rip a coupon and put it in my wallet.

Your strategy in a limping economy –

1. Build a huge, impenetrable fence around your customer base starting yesterday using a variety of media. Primary means is Direct Mail. Secondary means is Telephone (as thank you to every service visit, follow up to request referrals). Third means is email identified clearly as from you and NOT a solicitation.
2. Postal Mail contact frequency per customer: 4-12 times per year with at least 4 contacts as "soft sell" and/or educational pieces (newsletters, reminders, or other). Two to four more can be "celebratory" (birthday, anniversary, holiday, etc.) The remainder Direct Response offers.
3. IN ADDITION to above, you can email up to twice as often (since delivery rates are so pathetic) making sure every contact is run through a SPAM filter. More trigger words are added daily. CLICK HERE to get the most current list.

Remember, your credibility is contained in how you contact your customers. If YOU ONLY communicate in a way that's cheap and grossly overused, don't be surprised if you're "associated" thereby. Combine your contact methods. Let Postal mail "drive" customers to the phone and to your website; pound your name into their recall for their friends and neighbors.

Adams Hudson

P.S. Do you want credibility and readership from your customers? Click here to receive a free Customer Retention report and customer newsletter sample.

The Concept of the Common Villain, and the Ugliest Yellow Page Ad I Ever Saw in My Life

Headline too lengthy? At 17 words, it's 3 over the "expert's" limit, but since you've now read this sentence, apparently "they" are wrong. Again. The problem with experts, policy, rules is that it is no sooner created than refuted in the area of human psychology and persuasion.

Yes, I list "rules" in my seminars and writings. I do this to keep it simple, clear, relatively concise – and I'll defend to the death that there is a place for such. The pie crust recipe on the box is just fine for "standard"; it's your mama who made it better. She made it hers.

So far, I've hinted at two marketing lessons relative to the headline. The first is the elusive "they", a band of mysterious experts that most would like to see beat up somewhere. The second is "standard", which although representative of the majority, virtually no one claims to be a member!

Both, as it turns out, are rather subtle "enemies". You identify with each on some level, desirous of stepping aside while they pass.

Then there are the flagrant enemies, worthy of banning together and bashing against the tyranny.

All good movies and books have them. All super-heroes have them. All fascinating lives have them. And I have mine in marketing: Thank Heaven for the villainous Yellow Pages.

I applaud their sales nastiness, their cunning, marginally deceptive strong-armed tactics. I adore their awful, underperforming ads, dripping with world-class creative incompetence. I love that they're a really big, really expensive, and – in the realm of ad creation – an easily beaten foe. A Goliath needs a David. I have been happy to accept the role, however poorly, crudely, or undeservedly.

The ad agencies told me, not so politely, that I was insane to "charge" for a YP ad that the publisher would do for free. We started doing these because we knew we could do a better job than the schlock "they" did. And we could guarantee them. (Currently a 97% "keeper" rate! Something MUST be working!) We were paid, and the ads worked.

Oddly, that wasn't the main value.

Whenever I mentioned the Yellow Pages in a seminar or article, we found a near-rabid, froth-at-the-mouth, "Let's storm Frankenstein's castle!" type of rage toward the Yellow Pages. Contractors were livid, impassioned with stories of, well "un-nice" things. I'd stumbled upon "the enemy". Hallelujah.

Over the years, you've supported helping us take Goliath if not to his knees, at least a couple well placed shots to the shins. Thousands of you have gotten better ads (mine and your customer's opinions.… not always yours!) that saved you money, generated more leads, and got you to consider investing some of those saving with this "crazy marketing guy". It's been an honor.

You too have enemies to flail in front of your customers.

A few in our PowerPack in case you missed them, but whether you have that product of ours, take a gander at the "enemy" line up that causes your customer to sit up, take notice, and hopefully take out a pen to sign the "Bid Acceptance" form….

The Government – We yelled at them for the 1.6 gallon toilets (in the Plumbing PowerPack) and for their handling of the 10-12 SEER efficiency change. We did the "end around" for the efficiency rebates. (Greg Gill did over $2million is sales by himself with that promo. Showed that ad to a combination of applause and shock at two conferences. Mega Members have it.) We've used the Government as a "friend" when needed to support facts and figures. It's all marketing.

The Utility - If you can't make these guys enemies, you're WAY too nice. The rate shifts, profit gouging (perceived), and the assumption that all energy bills are going up, all the time, even while you sleep. Showing an ROI on energy – NOT PAYBACK! – is easier than my daughter's 9th grade math homework, by far.

The Competition – Be careful here. What you want is a "General" acceptance that "many" contractors make you wait too long, or don't show up at all, or "seem" to disappear when there's a warranty claim. That's easy because it's true. But customers need reminding. And many contractors don't drug test, or train beyond the "can you please walk upright" test, but YOU do drug test, and you send your techs/CSRs to school regularly. Plus, "others" may confuse the homeowner (undoubtedly) but you show prices up-front, and explain what you're doing. Guarantees separate you even farther.

The "Business As Usual" Approach – This is the "Whatever happened to Customer Service?" that McD and others have so ungraciously numbed us to. Making a point of follow-up, sending newsletters, thank you cards, and appointment reminders are not just me trying to 'sell' you something, it's for you to be a standout in a sea of Customer Disservice. Heck, I just spent a year on a CSR package because this industry needs to step out of the shadows. Making an 'enemy' out of sorry service is easier than Michael Phelps kicking rear in Marco Polo. You're different from the "norm"; make that thoroughly obvious.

Yourself – Funny one to pick, but you're different.… remember? You bought too many, you bought too late, you understaffed for the season, you forgot there was a price-increase coming ("so act before I change the price books"), you over-allowed/under-allowed for the mild weather. Oh, you can't "admit" a mistake to your adoring public? Then please show us the X-rays of the printed circuitry where your brain is supposed to be. We make mistakes; humans admit them; customers accept them.… and raise their trust of you while they buy accordingly.

If you're not employing enemies in your work, you're failing at the "contrast" customers use when they buy. Check your PowerPack for more, or call us to get you started.

QUESTIONS:

1. How can I make an obvious 'differentiation' in my business in every phone call? Every ad? Every form? Every customer contact?
2. 
   Do my techs and CSRs know how we're different? Do they regularly "position" us favorably against the enemies and threats customers face?
3. 
   WHAT IS THE UGLIEST YELLOW PAGE AD ever in the history of the universe? (Okay, it's not the ugliest, but it IS the one we chose for the Free Yellow Page Ad Makeover to be given away at Comfortech! Come by EXHIBIT 132 to see all the critiques! Or you can "CLICK HERE" to get the full report when it's published. This should be a hoot!