Internet Marketing is as Easy as 1, 2, 3… (Part 2)

This article is part 2 of 3 in a series written by Matt Walker, VP Technology Services for the SBA Network. You may contact him at mwalker@sbanetwork.org with any questions on the issues raised.

Last week we discussed Search Engine Optimization and how it fits into an overall Internet Marketing strategy. This week we’re taking a look at an element of Pay-Per-Click advertising. To recap, last week’s article gave tips on getting listed by search engines, optimizing your content, finding link partners, and testing. We also mentioned the three most important areas of Internet Marketing:

  1. Search Engine Optimization
  2. Pay-Per-Click Marketing
  3. Internet Viral Marketing

When prospects are looking for solutions to their problems, they often start with the Internet. Using search engines such as Google, Yahoo, or MSN, these prospects are presented with regular search results (as discussed last week) and also small text ads that appear alongside the search results. These ads are inexpensive, highly targeted, and turned Google into a multi-billion dollar company, pennies at a time.

How do they work? An advertiser uses the search engine’s website to select specific keywords for which their ad will be displayed. They create their all text ad with a link back to a website. They also enter the price they are willing to pay each time the ad gets clicked on. Then when the keywords specified are searched upon, the ad is displayed, and if clicked on, the advertiser pays the search engine for the traffic. Because the search engine gets paid each time the ad is clicked on, instead of each time the ad is displayed, this is known as Pay-Per-Click advertising. When implemented properly, this can be one of the most cost effective ways to generate business online.
Overall it’s a simple process, but generally takes knowledge of best practices, experience, and testing to have a successful campaign. The most important tasks in maintaining a successful new campaign are:

  • Selecting Proper Keywords
  • Creating Compelling Ads
  • Proper Bidding
  • Testing
  • Refining Landing Pages

For the rest of this article we’ll focus most of our attention on selecting keywords using Google’s AdWords program, but the techniques discussed work with all Pay-Per-Click providers.Warning- the below content may be too technical for some readers. If this is you, don’t feel bad- you can e-mail me for answers to any questions you have about these techniques at mwalker@sbanetwork.org. We are also presenting a hands-on Internet Marketing Workshop on November 7th in Long Beach, CA. At this workshop, we will be teaching how to implement these techniques. Contact Cory Halbardier atcory@sbanetwork.org to get more details about this event.Proper keywords are the bedrock of any successful pay-per-click campaign. To research keywords, I recommend using the Keyword Tool built into Google AdWords. This tool allows you to seed a search with a website address (it will analyze the content and find relevant keywords) or a brief description of the website you will be advertising. Perform this search, and you will be presented with a list of potential keywords. This list provides estimates on advertiser competition and approximate monthly search volume. The ideal keyword will have little advertiser competition, and a high search volume. Add all keywords that you feel represent terms on which your prospects will search. You should use the drop down box for “Match Type” and add each keyword twice more to ensure that each word is entered as a broad match, phrase match, and exact match. The reasons for using these match types and what they mean are beyond the scope of this article, but if you’d like to know more e-mail me or come to our Internet Marketing Seminar on November 7th where we will be discussing this in far greater detail. At this stage, you want as many keywords as possible- we will refine these later in the process (usually discarding 99% of them). So if you think your list is unwieldy, don’t worry, we will be shrinking it very soon.

Now that you have your keywords, create an ad and use a moderate bid to get things started. Where this ad links on your website is not important…yet. At this stage you want to get your ad running for as many keywords as possible, just to gather information about keywords. Let these ads run for a bit to gather data about search volumes.Now that your ads have been running for a few days, use Google’s reporting tools to see which keywords generate the greatest amount of searches (this will be reflected by the number of impressions your ad garners). At this point, you should keep the keywords with the greatest number of impressions, and focus your efforts on these (since they generate far more searches than the rest of the keywords on your list). The rest of the keywords can either be paused or deleted, whichever you prefer.It is typical for a campaign to start with a hundreds or thousands of keywords that are pared down to less than ten.Take the best performing keywords and create separate ad groups for each one. Each ad group should contain the keyword with the broad match, phrase match, and exact match. Now you should write ads that are tailored specifically for each of these ad groups. Use the search term in your ad copy if you can, and make this ad link to a landing page on your website that is specifically about the keyword.This may seem like a lot of work just on refining keywords, but it is imperative to follow this process for your AdWords campaign to be a success. This process will allow you to create highly targeted ads that achieve very high clickthrough rates, allowing you to purchase traffic for less than your competitors (and also present prospects with content that matches with what they are looking.)Using the proper keywords can help you follow rule 1 of Mark Deo’s Rules of Attraction- Become a bigger fish in a smaller pond. By finding the keywords that generate the greatest search volume, and focusing our efforts on areas in which prospects express interest, we are able to refine ads that dominate small groups of keywords, instead of spreading our effort across large numbers of keywords that generate few searches.To learn more about this process, and how to refine your ads to dominate these small keyword groups, please come to our Internet Marking Seminar on November 7th in Long Beach. Go to:http://www.sbanetwork.org/classes/upcoming_classes.asp for more details.

Next week we’ll explore Internet based Viral Marketing, and how it can be used in conjunction with SEO and Pay-Per-Click to generate business online.

For detailed advice on any of the techniques mentioned, or for an analysis of your website and some specific recommendations on what you can do, please contact Matt Walker atmwalker@sbanetwork.org.

For more information about the Internet Marketing Workshop being held November 7th in Long Beach, go to: http://www.sbanetwork.org/classes/upcoming_classes.asp or contact Cory Halbardier at cory@sbanetwork.org.

Internet Marketing is as Easy as 1, 2, 3… (Part 1)

This article is part 1 of 3 in a series written by Matt Walker, VP Technology Services for the SBA Network. You may contact him at mwalker@sbanetwork.org with any questions on the issues raised.

Facing an ever changing economy, businesses are spending more resources online now than ever before. As with the economy, the techniques that are most effective online are also evolving on a constant basis. Many businesses find themselves facing diminishing returns for their online marketing efforts.

If this describes your business, there are three areas on which to focus to see improvement:

  1. Search Engine Optimization
  2. Pay-Per-Click Marketing
  3. Internet Viral Marketing

When your prospects are looking for information on the Internet, they most likely start with a search engine such as Google or Yahoo. When they enter what they are looking for, they are presented with a list of websites that match their criteria, and some ads that are targeted toward their search terms. The three techniques mentioned above can help make sure that your site is one that attracts visitors.

Search Engine Optimization (SEO) is the process of making changes to your website for the purpose of making search engines (Google, Yahoo, MSN) rank your site higher for a specific term. As a brief example, if you search on Google for “small business coaching”, there are 724,000 possible results. Our website ranks 9th out of these possible matches, due to our SEO efforts on this term. For a more specific search such as “small business coach southern california”, we are ranked 2nd out of 452,000 results.

How did we achieve this? There are five major areas on which we’ve spent our efforts:

  • Getting and Staying Listed
  • Optimizing Content
  • Engaging Link Partners
  • Testing
  • Statistical Analysis

Warning- the below content may be too technical for some readers. If this is you, don’t feel bad- you can e-mail me for answers to any questions you have about these techniques at mwalker@sbanetwork.org. We are also presenting a hands-on Internet Marketing Workshop on November 7th in Long Beach, CA. At this workshop, we will be teaching how to implement these techniques. Contact Cory Halbardier atcory@sbanetwork.org to get more details about this event.To get your site listed and keep it listed, your site needs to be found by the appropriate search engines. For the most important search engine (Google), you can start by listing your site in the Open Directory that Google uses to seed many of its searches. Go to www.dmoz.org, find an appropriate category, and use the submission form on the site to ask for its inclusion. To keep your site listed, on your website you should have an XML sitemap- this is a file that lists all the pages you wish to have Google index and how recently they have been updated. To learn more about the use of site maps and Google’s guidelines, go to: www.google.com/webmasters/tools

Now you should focus on optimizing your content. Your pages should discuss the terms for which you are trying to get ranked. Relevant content will make your site rank higher than sites with content that doesn’t closely match the search terms. One area to make sure you address are the title tags used on your pages. These should be unique, descriptive, and reflect the content on the page. The page title is what a potential site visitor will see first when your site is listed on a search engine, and influences your site rankings.

You also need to engage in a link building campaign. Having other websites link to yours is how search engines decide the importance of your website. Google uses these links to assign a “page rank” to each page in its index. The more inbound links you have, the higher your site will be listed in search results. Having sites with high page ranks link to your site helps more than sites with low page ranks linking to yours. There are thousands of resources you can find online to help you find link trade partners, paid inbound links, and automated software to manage the link building process. Your link building campaign should be ongoing for as long as your site exists. Inbound links are generally considered the most important factor in having a highly ranked site.

If you’ve done a good job on these 4 tasks, you should have some traffic coming to your site. Now you need to analyze that traffic to discover trends about your site. Statistical analysis can show you which pages on your site attract the most visitors and which are indexed the most by search engines. You can then use this knowledge to fine-tune your efforts on the other pages on your site, helping improve the search ranking for every page you maintain.

Next week we’ll explore Pay-Per-Click Marketing, and how it can be used to attract prospects to your website.

For detailed advice on any of the techniques mentioned, or for an analysis of your website and some specific recommendations on what you can do, please contact Matt Walker atmwalker@sbanetwork.org.

For more information about the Internet Marketing Workshop being held November 7th in Long Beach, go to: http://www.sbanetwork.org/classes/upcoming_classes.asp or contact Cory Halbardier at cory@sbanetwork.org.

E-mail Tips

I’ve been sending out this business update now for almost 6 years, to thousands of subscribers. I have received feedback from thousands of you, sharing your successes with me. This message you’re reading is an example of e-mail marketing, yet ironically, this is one topic we’ve rarely discussed. It has taken us years to learn a system that works for successful e-mail marketing, and we’d like to share it with you. Before we get into this subject in depth, I’d like to invite you to share your thoughts about this newsletter with us by clicking here to take our brief survey. To show our appreciation for your feedback, you will gain access to our audio file on Why Most Marketing Fails.

E-mail can be an extremely cost effective means of maintaining contact with prospects and customers, marketing your business, and providing customer service. There are a few rules you should adhere to when considering using e-mail in your business, to ensure that you don’t actually generate negative feedback from your contacts.

  1. No spam. Ever.
    Spam is the term used for unsolicited, unwanted, e-mail. Notice that I didn’t say “commercial” e-mail. Any unwanted e-mail is considered spam. If you are sending an e-mail message to someone, make sure that it is something worth sending first.
  2. Get their permission first.
    Don’t send someone an e-mail message unless they have given you permission to contact them by e-mail, or you have been in contact with them previously. If your first communication with someone is by e-mail, you will likely get a negative response, regardless of how relevant, compelling, and important your message may be.
  3. Don’t sell or give away their information.
    If you have someone’s e-mail address, guard it. Don’t send it to other people, don’t have a huge carbon copy list that you make their address publicly visible on, and make sure that you guard their privacy as you would your own.
  4. Keep it professional.
    If you are sending people business e-mails, don’t pass on jokes, funny movies, political or religious statements, etc. Save these things for your family and friends (even though they probably don’t want them either!)
  5. Learn how to use your e-mail program.
    Make sure you know the difference between to, cc, and bcc. If you don’t, read the help files on your e-mail program. These very important distinctions affect how an e-mail message is received, viewed, and presented to a recipient. They also help you guard the privacy of your messages.
  6. Obey the law!
    There are many new legislated requirements for sending commercial e-mail. While it is unlikely that someone will complain to authorities about e-mails you send, make sure that you obey all regulations about having your contact information on your e-mail, a method for being removed from your mailing list, etc.

Now that we have that out of the way, let’s get into how to best use e-mail in your business! If you do not currently have an e-mail newsletter, you’re passing up an amazing opportunity to connect with your prospects and customers. It is truly the most cost effective means of positive outreach that small businesses have at their disposal. I highly recommend that you start a newsletter to maintain contact with your database as soon as is feasible.
Email – Extension of Direct Mail?
Email marketing is NOT the electronic version of direct mail. It is a far more personal form of communication. Go to your mailbox. Count how many uninvited guests you find every day. Circulars from advertisers, retailer ads, announcements and so on jam your mailbox. In fact, if you’re like me, you have more junk mail than REAL mail. Does it make you mad? No. Do you get on the phone, call these folks, and yell at them for Snail-mail spamming you? No. Do you lobby Congress? No! Then why do consumers do all of these things and MORE to put a stop to SPAM email? No one really knows why, but it is a fact that some people will react negatively to any unsolicited e-mail. So you must make sure that your e-mail marketing efforts are not the same type of sales pitch you might send out by other means.

Getting Personal
Email is a very personal form of communication. Typically, people read their email messages with greater care and more deliberation than postal mail. Many folks read their email messages at home and therefore have more time to digest them and put the message in perspective. When they receive an uninvited message, it is received as a personal intrusion. While Email creates a tremendous opportunity for us as marketers, it also leaves the door open for abuse.

A Powerful Messaging Vehicle
Some marketers see Email as a powerful form of “push marketing.” It is far less expensive than traditional media, is ten times faster to implement, and known to generate a higher response than it’s alternatives. No wonder marketers aggressively leverage it to push their marketing message as frequently as humanly possible. The real challenge is to allow “true” communication to take place. No relationship can exist without two-way communication. My advice is “Don’t turn email into a bullhorn. It’s about encouraging and facilitating a dialogue.” Push yourself to help your customers; don’t push your product or service on your customers. Find out what is important to them, then give them something of value. Educate, inform, and inspire them. Help them to do something that they have been trying to do. Eliminate their pain. Make their lives easier. Invite them to give you feedback. Open the gates to questions, comments, and suggestions. Engage customers in a dialogue. Nowhere is the “attraction” mindset as appropriate and effective as it is with email marketing. It’s about building lasting relationships and creating memorable brand value.
A Collaborative Media
Email is one of the only marketing vehicles that is NOT a successful standalone communication tool. Email will be only as effective as its integration with other media. Most email campaigns today are run as isolated marketing initiatives. Companies hire email-marketing firms to run their email strategies because traditional agencies are unable to provide the quality of service and necessary technology that email pure-plays provide. The problem is an unbroken sequence of communications that do not capitalize on the sum of the parts. The outcome is a confused and possibly dissatisfied customer, victim of your unorganized and untimely messages. Sure, the creative may look the same, but production schedules rarely match, and the integration of media is an afterthought.

One Strike and You’re Out.
Email may be cheap, personal, and powerful but it is an unforgiving media. Even in baseball, you get three strikes. Email customers can fire us in a single click. It just takes those dreaded words “REMOVE ME” in the Subject Box and the fun’s over. My recommendation is to empower customers, and talk to them wisely. Savvy marketers empower customers by asking them what content they want to receive, when they want to receive it, how often, and in what format. Then they follow through. To avoid burning out customers and scoring double-digit unsubscribe rates, consider customer preferences, and carefully plan the frequency with which you communicate to various customer segments.

Measure Right
Click-through, like Web traffic, has never been a good indicator of performance. Chances are that your short-term revenue forecast and long-term profitability are made up of more tangible, quantifiable data. A more accurate measure of the success of a campaign is sales or leads conversion. Some people just want customers who click. You want customers who buy. Stay away from short-term objectives, however, that may force you to over-communicate at the expense of long-term customer value. Create a customer satisfaction index and regularly track results via online surveys. Ignoring customer satisfaction is always a deadly mistake in business. And believe me, your competitors know it. So will you be the diner? Or the dinner?

The Future is Here
Email marketing is the future of direct marketing. Think about it, with Email you avoid printing costs, postage, carriers, paper, stuffing, envelopes and the licking thereof! Never resort to SPAM or unsolicited email lists. Build your own email database. Opt-in email campaigns produce the best result in marketing campaigns.

“Opt-in” & “opt-out”; what do they mean?
Quite simply, spammers utilize “opt-out” marketing. Opt-out means that a marketer can send a message at will and the recipient must contact them and “opt-out” to prevent future mailings. I do not believe in this approach. “Opt-In” means consumers have expressed interest in your topic. In my case, these folks have called in to my radio show, visited my website, attended one of my classes, or purchased one of my products or services.

E-mail Example
Let’s look at a brief example. For our business, we send out a weekly “Business Update” e-mail with FREE business advice. We have been sending this e-mail out for over six years to a subscriber base made up strictly of prospects, partners, and clients that have requested it. People subscribe to our list by going to our website and entering their e-mail address in a form that explicitly states what they will receive. We give them instructions on how to be removed from the list at any time if they choose. These e-mail messages are made up of advice and examples. They are NOT sales pitches. Let me repeat that. They are NOT sales pitches. This ensures that people get our message while we establish closer relationships on a continual basis with prospects. Our meme is seen weekly by thousands of people, and it doesn’t take any more effort to reach 50,000 than it does 500!
Get to Work!I encourage everyone reading this to consider how they might plan an e-mail campaign for their business. Whom do you wish to reach? What can you offer them of value so that they look forward to receiving your message instead of viewing it as an intrusion? How frequently should you contact them? How will you encourage them to respond to your message to foster an ongoing dialogue? Please let us know how your e-mail efforts go.

South Bay Technology Expo

From time to time we send out special announcements and this is one about an event being held by some good friends of mine. The Holden-Andrew Corporation is on the cutting edge of technology, and they are sponsoring the South Bay Technology Expo in Torrance, CA this Friday, March 9th. I’ll be there, as will many members of the SBA Network team, so if you have any interest in technology, I strongly encourage you to attend. Below are some of the details about this event:

The South Bay Technology Expo is a FREE event that focuses on bridging the gap between business and information technology by placing the latest products and services into the hands of the local business community. The event’s goal is to be an educational resource in a fun, interactive manner. The South Bay Technology Expo is sponsored by Holden-Andrew Corporation, a Managed Information Technology Service Provider in Torrance, CA.This year’s event will take place on Friday, March 9th from 11am to 4pm at the Torrance Marriott (Torrance, 90503)The event’s centerpiece is the presence of Microsoft Across America, a 42-foot long mobile experience where you can demo Microsoft Vista and Office 2007. In addition to Microsoft’s presence, the event also features the following technology providers: Ricoh Document Imaging, BTI Communications (VOIP and Call Center applications), Dell Computers, The New Cingular- At&T Wireless, Fat Pipe, Agility Recovery Solutions, The Daily Breeze (On Line Advertising),and Holden-Andrew Corporation.There will be many giveaways for attendees from these companies, and I will be giving away a few copies of my Attract More Business program.For information and pre-registration please go to www.SouthBayTechExpo.com or call Melissa Stewart of Holden-Andrew Corporation at (310) 792-4999

Lessons of the Blair Witch

Before we start this week’s business update, I’d like to thank all of our listeners for the great feedback we’ve received about our interview with Tom Hopkins on our radio show two weeks ago. In case you missed it, you can listen to the show over the Internet by clicking here.

-Mark Deo Tired of reading already? Click here- LISTEN TO THIS ARTICLE. In 1993, two young filmmakers decided that it had been too long since they had seen a movie that actually scared them, so they set out to make a scary movie. To keep costs down, they eschewed big name actors, fancy effects, cameramen, and even a script, instead opting to take some unknown actors into the woods, scare them, and have the actors themselves film their reactions. By now you can probably guess I’m talking about “The Blair Witch Project”, which went on to gross well over $100 Million dollars in the United States alone during the summer of 1999. It is generally considered to be one of the most cost effective films ever made, with a budget that has been reported anywhere as low as $2000, to as high as $350,000. No matter where it falls in that range, it clearly was a HUGELY profitable film.

It was widely considered a good movie, qualifying for an 85% rating at rottentomatoes.com. There are, however, many low budget movies that are well reviewed, yet they never achieve the same level of success. How is it that they managed to achieve such success?

The filmmakers engaged in what is widely considered one of the best guerilla marketing campaigns of all time. Starting with phony “Missing” posters they used to get an audience at the film festivals they attended and a back story they made up about finding the film rather than making it, they were able to generate enough interest to sell distribution rights to Artisan Entertainment. Then they really got to work.

How did they get millions of Americans to see their movie? Using the Internet like no one before. This article focuses on two primary techniques the filmmakers used, and one additional technique you can use to apply to your own business.

Message Boards
Many people are familiar with message boards and on-line communities- these are what grew out of the old text based days of the Internet before the World Wide Web. Some examples of on-line message board sites I use are a newsgroup all about the car I drive, the Toyota Prius, atwww.priuschat.com and one about stand-up comedy at www.chucklemonkey.com. We also have an on-line community on our website at http://www.sbanetwork.org/forums/ where people can post messages about business issues they face and receive advice from their peers. What the filmmakers did was find message boards that dealt with horror films, urban legends, and independent films. They then became members of these communities- providing information of value to the community. Only then did they begin to post messages about the “legend” of the Blair Witch. If they had joined solely to promote their movie, and not to provide information that the readers of these message boards would find valuable, they would NOT have been successful with this tactic. It is important that if you want to use message boards to promote yourself, that you give to the community first. Try finding some message boards and communities that apply to your business, become involved, and watch the members spread the good word about you.

Chat Rooms
Another element of on-line communities is chat rooms. There are millions of people world wide chatting with another on the Internet as I write this. Go find some chat rooms that match the target audience for your products and services. Some of the more popular chat programs are AOL Instant Messenger and Yahoo! Messenger. By finding chat rooms where people who are interested in the types of products and services gather, you have the potential to gain many “sneezers” for your business. For more about sneezers, read Mark’s article on Buzz Marketing. Again, focus on giving to the community first, or the members will see right through you.

Freebie Sites
One great way to get people talking about your business is by giving something tangible away to people. They can then test out your products and services, and tell others about them. How do you find interested consumers? One great way is with “Freebie” websites. One that I frequent iswww.slickdeals.net. This is a site where people post great deals for products that they find. If you have something to give away to get people interested in your products, this is a great place to make the offer. There are many other sites that are similar, and a quick Google search will find literally hundreds of places you can use to give away samples of your products and services. Be sure, however, to abide by the rules on these sites. The last thing you want to do is post something that the community isn’t interested in and they consider “spam”, as that can yield the opposite of what you want- negative buzz.

In short, use the Internet for all it’s worth- we are lucky to have a communication medium available to us that can generate more publicity for our businesses than an army of PR firms. Use this to your advantage, and you may be the next Internet marketing success story that I’m writing about. If you’re having trouble finding appropriate communities on the web, send me an e-mail- I’ll help you find some people to connect with. I’d also love to hear about how you are using the Internet in your business. Send me an e-mail at mwalker@sbanetwork.org and let me know how these techniques are working for you. Have a great week!
This article was written by SBA Network sales technology specialist Matt Walker. You can reach him for more information on this topic at mwalker@sbanetwork.org.

I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mark@markdeo.com

Mark Deo

Internet Resources

It’s been a few months since we last sent out some of our favorite Internet resources. This time around I think you’ll find that these are truly some of the most powerful tools available on the web. As Peter Drucker wrote, “Time is the scarcest resource and unless it is managed nothing else can be managed.” So in an effort to save you some time when looking for the answers you need on the web, here are some starting points that you may wish to bookmark.

1) Google Answers: http://answers.google.com/answers/mainI’ve written before about Google the search engine. But did you know you can ask ANY question and have it researched for you on-line? At Google Answers, you enter your question with the amount you are willing to pay for the answer, and pre-screened researchers will go to work finding the answer to your question. These answers are then made available to the public at no cost. Ever wonder who is in charge of marketing for PepsiCo? Thanks to someone out there who paid $15 for the answer, we can all read the result here: http://answers.google.com/answers/main?cmd=threadview&id=244423. This site can be used to provide sales reps with essential pre-approach information without them having to spend their selling time doing research. Give it a try!
2) PDF 995: http://www.pdf995.com/Do you have the need to create PDF files occasionally, but not often enough to justify spending hundreds of dollars on Adobe Acrobat? Give PDF 995 a try. It is a FREE alternative to Adobe Acrobat. Just download and install this software and you can select PDF output just as easily as printing a document.
3) Megaproxy: http://www.megaproxy.com/Have you ever been in a situation where you need access to a website that your network either filters out or is unable to find? Megaproxy is a proxy site for accessing web based content. What you do is use this as a web browser within a browser. Even if your computer is unable to access a webpage directly, if you are able to get to Megaproxy you may still be able to access the site. Just enter the address in the address bar, and you will be viewing content by proxy. This means that it may be able to find content for you, and relay it to your computer. There are both free and paid versions available depending on your needs.
4) RhymeZone: http://rhyme.lycos.comWriting letters, reports, or proposals and need to add some punch to your phrases? Try The Lycos RhymeZone. This website allows you to find words that rhyme with your entries, as well as functioning as a dictionary/thesaurus to help you uncover synonyms, antonyms, homonyms, definitions, quotations, and even search the collected works of Shakespeare! As I discovered when writing this business update, Hamlet once stated, “Words, words, words.” That is truly what this website is all about.
5) The Small Business Advisory Network: OK, this is a shameless plug for our own website. If you haven’t seen our new version, however, click on over and try out some of our newest additions. Search our business update and radio show archives for specific topics at site search, view our library of articles sorted by category at business development articles, ask for help on our new message boards, and check out our free audio learning programs at audio coaching programs. This is THE place to go for FREE business advice on sales, marketing, and management.
I hope these sites are of some value to you. If you are looking for sites that can give you specific information, please feel free to contact us at (310) 320-8190 or send me an e-mail at mwalker@sbanetwork.org and I’ll let you know if I know of any.
Have a great week!

E-Commerce

What is it?

We are constantly seeing and hearing about electronic commerce or E-Commerce. One might ask, what is it? E-electronic commerce is the conducting of business on-line. This includes, for example, buying and selling products with digital cash and via Electronic Data Interchange (EDI) as well as Internet based credit card and check transactions.How it really works?
It’s quite simple really. To understand E-Commerce all one needs to do is “Follow the money.”
E-commerce can be divided into:

  1. E-tailing or “virtual storefronts” on Web sites with online catalogs, sometimes gathered into a “virtual mall”
  2. The gathering and use of demographic data through Web contacts
  3. Electronic Data Interchange (EDI), the business-to-business exchange of data
  4. E-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters)
  5. Business-to-business buying and selling
  6. Security of business transactions

E-tailing or The Virtual Storefront and the Virtual Mall
As a place for direct retail shopping, with its 24-hour availability, a global reach, the ability to interact and provide custom information and ordering, and multimedia prospects, the Web is rapidly becoming a multibillion dollar source of revenue for the world’s businesses. A number of businesses already report considerable success. As early as the middle of 1997, Dell Computers reported orders of a million dollars a day. By early 1999, projected e-commerce revenues for business were in the billions of dollars and the stocks of companies deemed most adept at e-commerce were skyrocketing. Apart from computer and network products, books (Amazon.com), gardening products (Garden.com), music on compact disks (CDNow), and office supplies (SuppliesOnline) were a few of the better-known e-commerce sites. By early 1999, even businesses that have always counted on face-to-face customer interaction were planning e-commerce Web sites and many businesses were planning how to coordinate in-store and Web store retail approaches. Meanwhile, new businesses based entirely on Web sales were being invented daily.Market Research
In early 1999, it was widely recognized that because of the interactive nature of the Internet, companies could gather data about prospects and customers in unprecedented amounts -through site registration, questionnaires, and as part of taking orders. The issue of whether data was being collected with the knowledge and permission of market subjects had been raised. (Microsoft referred to its policy of data collection as “profiling” and a proposed standard has been developed that allows Internet users to decide who can have what personal information.)Electronic Data Interchange (EDI)
EDI is the exchange of business data using an understood data format. It predates today’s Internet. EDI involves data exchange among parties that know each other well and make arrangements for one-to-one (or point-to-point) connection, usually dial-up.E-Mail, Fax, and Internet Telephony
E-commerce is also conducted through the more limited electronic forms of communication called e-mail, facsimile or fax, and the emerging use of telephone calls over the Internet. Most of this is business-to-business, with some companies attempting to use e-mail and fax for unsolicited ads (usually viewed as online junk mail or spam) to consumers and other business prospects. An increasing number of business Web sites offer e-mail newsletters for subscribers. A new trend is opt-in e-mail in which Web users voluntarily sign up to receive e-mail, usually sponsored or containing ads, about product categories or other subjects they are interested in.Business-to-Business Buying and Selling
Thousands of companies that sell products to other companies have discovered that the Web provides not only a 24-hour-a-day showcase for their products but a quick way to reach the right people in a company for more information.The Security of Business Transactions
Security includes authenticating business transactors, controlling access to resources such as Web pages for registered or selected users, encrypting communications, and, in general, ensuring the privacy and effectiveness of transactions. Among the most widely-used security technologies are SSL and RSA. Secure Electronic Transactions (SET) is an emerging industry standard.Recommendations:
These days nearly everyone is claiming to be an E-Commerce/Web Development expert. I have found that very few can be trusted. Try not to deal with a middleman. They make big promises and deliver small results. Go DIRECT with an e-commerce provider. Find a provider that is preferably a large, public company with 24 hour technical support, fully staffed customer service, has SSL and RSA security, and has their own banking and transaction processing solution. This way you’re not stuck dealing with 4 different vendors who all end up pointing fingers at “the other guy” when things don’t work right.It is also absolutely critical that you find a provider that permits YOU to make you own changes to the site and user configurations. You should be given and FTP account and password so that you can go into their server and make changes to your site directly. Some providers even have a simple interface established which will permit you to make site changes WITHOUT uploading our downloading information through an FTP function.

Win Them Back

Customer defection is one of the most overlooked and least understood problems facing small businesses today. Our economic environment and continuing price erosion are problems in just about every industry. This is causing customers to re-evaluate their loyalties for what are perceived to be “lower cost alternatives.”

Lost customers means lost revenues, negative word-of-mouth and a negative impact on employee moral. I thought I’d take a moment to look at some of the things that we could do to not only recapture lost customers but also keep them more loyal in the first place.

Winning Winback Strategies
Recognize that all customers are at risk. Even satisfied customers can be persuaded to defect to the competition. Do not take any customers for granted.
Consider that customer winback strategies can be more effective than finding new customers. Many experts believe that winback success rates are far higher than recruiting new prospects.
Make sure you fully understand both the revenue potential and the cost of doing business with all of your customers. Initially this may be a massive undertaking but once complete it is easy to maintain and extremely valuable when protecting your customer base from being plundered.
Calculate every customer’s life time value (LTV) and second LTV (after they are won back). This is a powerful way to identify customers that you may want to win back and how much you should invest in wooing them.
Apply CPR to customers that are threatening to bail. This kind of CPR stands for Comprehend, Propose and Respond.
Make an effort to comprehend what their issues are. What do they want? Why do they want it? Try to separate the emotions from the pragmatic realities. Sincerely make an effort to understand their side of the story.
Propose a solution that is reasonable to each party. Not a one sided solution. Truly a win-win. Rolling over and just giving in to unreasonable demands may be the worse course of action. This is why it’s so important to understand the numbers. How does your business look WITH this client as well as WITHOUT them. Their departure may be the best thing for both parties but the way it is implemented can make all the difference in the world.
Then take positive and decisive response. This means action. Try to communicate at the highest levels of the organization. Be clear and concise in your offer. Put it in writing. Don’t be afraid to apologize or admit where you or your company was wrong. But don’t respond to threats. This is a sign of a bluff. I recommend dismissing them out of hand. Finally when you have proposed the best solution give them a deadline so the deal doesn’t stay on the table forever. This weakens your bargaining power.
Make Your Company Defection Proof
While everybody is talking about customer loyalty today few are taking real action. Preventing customer defection is surely the prime motivation for building customer loyalty, but it also gives us the ability to proactively develop strategies to improve our value and service in general. Once you become a convert to customer winback efforts you can learn to prevent defection in the first place. Here’s some ways to improve your position with current customers or customers that you HAVE managed to win back:
Identify all of your products or services that could possibly be of value to your customers.
Motivate your customers to use as many of your products or services as possible.
Prove to your customers that your products and services offer value that they can not find anywhere else.

  • Keep track of every sale and sort in a database
  • Personally communicate with customers at regular intervals
  • Establish some form of satisfaction rating system
  • Sell peace of mind more than just product or service solutions
  • Admit when you’re wrong and pick up the pieces quickly and effectively

I hope these ideas help you to improve customer loyalty and lessen customer defection. If employed consistently I know that they will succeed in producing greater effectiveness for your business in this difficult economy.

What’s Your Story?

What’s your story?

Who are you?Where do you come from?What do you believe in?When you seek to influence others, you face questions like these. Whether you are proposing a risky new venture, trying to close a deal, or leading the charge against injustice, you have a story to tell. Tell it well and you will create a shared experience with your listeners that will have profound and lasting results.I’m not talking about just providing information. People don’t need more information. They are up to their ears with information. They want a relationship with someone they trust and believe in. They want faith, hope and an answer to their problems. Faith and hope needs a story to sustain it. A meaningful story inspires hope that your ideas indeed offer what is needed to solve their problems.The Path to Faith
Genuine influence goes deeper than getting people to do what you want them to do. It means people pick up where you left off because they believe! The story is the path to creating faith. Whether you tell your story through lifestyle or words, the first thing people look for before believing in you is trust. Annette Simmons in her book, “The Story Factor” talks about the six steps in story telling that we can use to build trust:

  1. Who you are story
  2. Why you are here story
  3. The “Vision” story
  4. The “Teaching” story
  5. “Values in Action” story
  6. The “I Know What You are Thinking” story

Before being influenced by you, your listeners want to know, “Who your are and why you are here?”
If you don’t take time to answer this they will make up their own responses which are usually negative. It is human nature to mistrust others. You need to tell a story that demonstrates that your are different. That you are trustworthy. That you deserve their faith. A story lets listeners decide for themselves whether they should trust you. If your story is good enough, people -of their own free will- conclude that they can trust you.The “Who You Are” Story
Stories about “who your are” must reveal something about yourself. Make yourself vulnerable. If your story reveals that you have learned to recognize your flaws, then people will believe you can be trusted to deal head-on with tough problems.The “Why I Am Here” Story
This story must reassure your audience that you have good intentions. However, before you tell them what’s in it for them, tell them what’s in it for you. If you don’t they will suspect that you have a hidden agenda.The “Vision” Story
Once people know who we are and why we are here, they are ready to listen to what’s in it for them. This is where you can differentiate yourself. Like the story of the the man who came upon a construction site and asked each of three workers what tehy were doing. The first responede, “I’m laying bricks.” The second said, “I’m building a wall.” And the thrid said, “I’m making a cathedral.” Your job is to take your vision and transform it into the audiences vision. A real vision story connects with people in a way that shrinks today’s frustrations in light of the promise tomorrow.The “Teaching” Story
Use a story when you want to get your message across, especially when you need to show not just “what” needs to be done but “how” it should be done. For example, telling your new receptionist where the hold, transfer and extension buttons are will not make her a great receptionist. But telling her that the best receptionist you ever knew was Mrs. Smith, who could simultaneously calm an angry customer, locate your wandering CEO and smile warmly at the UPS man.The “Values in Action” Story
Without a doubt, the best way to teach a value is by example. The second best way is to tell a story that provides an example. A story lets you instill values in a way that is memorable and keeps people thinking. “We value integrity” means nothing. But a story about a former employee who hid his mistake and cost the company thousands of dollars or about a salesperson that owned up to their mistake and earned so much trust that their customer doubled their order, teaches your audience the MEANING of integrity.The “I Know What You Are Thinking” Story
Tell a story that makes people wonder if you are reading their minds. I really isn’t that hard to do. If you do your homework about the group you are seeking to influence, it’s relatively easy to identify their potential objections to your message. If you address their objection first, you disarm them.Clothing truth in the form of a story is a powerful way to get people to open their minds to the truth you carry. The naked truth sometimes must be dressed up to be seen. New ideas need room to grow. Tell it like it is. But consider telling it in the form of a story.

TRAINED SEALS

I was at Sea World not long ago and had the opportunity to watch a trainer working with a seal. Now I’m not speaking of the kind of Seal that you might find in the Navy, I’m referring to the wet, pudgy, cute, whiskered kind.

I watched as the trainer used her fingers and thumb to simply touch the nose of the creature. This was the seal’s “cue” or signal to perform the proper behavior. The seal then opened its mouth for inspection by the trainer. This was the seals “response.” The trainer then tapped the seal on the head and said “good.” This was her way of showing “acknowledgement” for the animal doing the right thing. She then tossed the beast a whole fish – “yuck!” However if you’re a seal and you’re reading this, you know just how tasty that smelly old mackerel is. This was the seals reward.What does this have to do with business improvement? Good questions. Have you ever noticed that buyer’s are kind of like seals?They are if you think about it. They automatically react to cues just as the seal did. This is what their training and conditioning has taught them. Their training tells them, “this sales person is here to sell me something therefore I must resort to what will protect my interest best: object to their pricing, terms, program or package.”Let’s face it securing the business often boils down to the lowest price, in one form or another. Are you cheaper than the competition? If not you may be up for a battle of the wills. No matter what price you quote, many customers will automatically say its too high, maybe way too high. Like the seal, that response is so deeply drilled into them that just about every rep they meet gets the same reaction. The trick is to get beyond the knee-jerk reaction and into a reasonable conversation about their situation, needs, budget, and time frames. Until you achieve that level of rapport, price itself simply isn’t the issue.Some of you know my sidekick on the Small Business Hour, Matt Walker. Matt is a comedian. When people find this out they, as you can imagine, often say, “hey Matt say something funny.”This irritates Matt to no end, which is why I enjoy it so much when it happens. However, Matt, being the friendly guy that he is always manages to spew out something hilarious. How does he do it? He’s always ready with a joke.As Matt likes to say, selling is like improvisational comedy: You must be ready to improvise because encounters with potential customers constantly produce reactions and situations that you could never predict. If you prepare long before you meet with customers you will be more effective face-to-face. While you’re still at the office, force yourself to make a list of 10 great, potential responses when you hear that your price is too high. I mean it — 10, and 20 would be even better. It may be what you say. Or it may involve a particular tone of voice or even your body language. Developing and using the responses will make your selling technique more flexible, resilient, and confident.Another facet of the price objection is the explosion of options every client faces these days. There are more varieties of products, and more vendors to buy from, than ever before. Multiply varieties and vendors and it’s clear that the total number of available choices has grown logarithmically. This tsunami of data can lead customers to making comparisons between options that aren’t strictly comparable. Yes, the solutions on offer aren’t equal, but the conditioned prospect can’t look beyond Price A vs. Price B.As I noted earlier, “Your price is too high” is an objection we all hear. In fact, if you aren’t hearing it, then your prices are too low, you’re leaving potential profits on the table, or you just aren’t making enough sales calls. There is no single, sure-fire, works-every-time solution to this problem, but there are lots of great ideas. The more arrows in your quiver, the more options for handling — and the greater selling success you’ll experience. Then you won’t have to worry about all those trained seals out there.I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mark@markdeo.comMark Deo