Archive for year 2012
If you do just one analysis for your business…
May 16th
By Neicole Crepeau, Contibuting {grow} Columnist
Are you a small business owner or manager looking to improve your marketing and sales? If so, you’re also probably seriously time-constrained. So it’s important that the time you do spend yields tangible results with conclusions that can translate into actions that improve your bottom line. Based on my experience working with small businesses, if you only have time to do one thing, it should be becoming acquainted with your sales funnel.
In my experience, discussing and documenting the sales funnel has never failed to provide new insights, identify holes, and uncover opportunities to improve marketing, reach more target customers, and increase actual sales/conversions.
In this day of digital marketing, social media, and mobile, a simple sales funnel analysis may seem passé. But I guarantee that if you do the analysis and ask the right questions, you’ll find ways to improve all those aspects of your marketing … and more. That’s because reviewing how you acquire customers and the stages they go through to buy from you exposes the rocks in the stream.
Who should analyze the sales funnel?
One of the great things about sales funnel analysis is that it applies to all types of businesses—and even non-profits. B2B and B2C companies can benefit from looking at how they acquire customers. Non-profits can use the same process to evaluate how they acquire donors.
You don’t have to limit your analysis strictly to sales, either. For example, I worked with a services firm recently who uses subcontractors. We used the same analysis technique to examine how they acquire subcontractors, especially for key positions. Since doing that is critical to their business, it warranted a thorough evaluation, so we could find new ways for the company to “market” to contractors.
It’s best to perform the analysis with a small group of people, rather than trying to do it alone. In a small business, the CEO is very often in the analysis meetings. If the goal is to improve marketing/sales, then the marketing owner should certainly be involved. Other likely candidates: any consultant you are working with on marketing/sales, a key sales person or the manager of sales (if you separate marketing and sales), whoever owns digital, social media, or content marketing (if you are doing those), and whoever owns your website and watches the analytics. You may also find it valuable to include someone from customer support or, if you provide services, project or account managers who work with customers after the sale.
What funnels should you create?
To start, determine which products or services or markets you’ll analyze. If you have multiple products and they appeal to very different customers or are marketed in very different ways, you’ll want to analyze each. If you market different services or to different types of clients, then you may need to model each sales process separately. If you’re not sure whether you need to model them separately, start with one funnel. As you begin discussing the process, if you find yourself saying “Well, if it’s this product then xyz, but if it’s that product then abc,” you know you need to model each one separately.
How do I do the analysis?
I always draw a funnel on the white board. Begin at the top and work your way down. The basic stages are generally the same, though you might end up modifying them as the discussion ensues. I usually start with:
- Awareness of problem/need—Customer realizes that he/she has a problem or a need
- Awareness of product/service solution to the problem—Customer realizes that there are products that can fill his/her need or vendors who can provide services to solve it
- Awareness of your company’s specific product/solution—The customer discovers your product or service as an option
- Shortlisting available products/solutions—The customer narrows down the products or vendors under consideration
- Comparing shortlist products/solutions—The customer does additional research and comparison of the products/vendors. This step may only apply to large purchases.
- Proposal and negotiation—The customer puts out an RFP and/or contacts you, you provide a proposal and/or cost, and negotiations ensue. This step may or may not apply to your business (typically a b2b step).
- Sale—Sold! The customer purchases
Asking the right questions
The key to getting value from this analysis is asking the right questions. Start by trying to understand who your customers are. Include questions such as:
- The role or title of the customer (in B2B sales)
- The age, gender, and other demographics of the customer
- The demeanor of your customer, at the time they are in this sales process. Is your customer frustrated, worried, in a hurry or taking their time, in the store or at home or on the move, under the gun from upper management?
- The online behaviors and activity level of your customer. Is this a person comfortable researching or buying online? Is he or she a mobile user?
At this stage, you may decide to diagram separate funnels for different types of customers.
Now, for each stage, ask the right questions to prompt ideas, identify problems, and determine where you need more information.
Awareness
- How do customers describe their problem/need? In what terms do they think of their issue?
- How pressing is the problem? How likely are they to look for information about how to solve it?
- Will customers know already that there is a product or vendor to solve this need?
- How do customers learn about your company or product? What are all the possible ways now? How do they learn about competing products/vendors?
Short-listing
- What’s the checklist in the customer’s head? What requirements have to be met for you to even be considered?
- How do customers find out whether you meet these requirements? Where do they look for information? How hard do they look?
- How short is the customer’s short-list? What are the determining factors as customers narrow down their choices?
- Is there anything about a product or vendor that would cause customers to move directly to the next stage or even skip the comparison stage?
Comparison
- How do customers do a detailed comparison? Who is involved at this stage in making decisions?
- Where do they get the information they need?
- What are the deciding factors for selecting a product/vendor?
- How long does this process take and what can derail it?
Proposal/Negotiation
- Is the process formal or informal?
- How transparent are customers about their budget?
- What approvals are necessary and what other stakeholders become involved at this stage?
These are just seed questions to get you started. You may find that you don’t have the answers to even key questions, suggesting the need for further research. You’ll certainly see places where you may be able to improve. For example, you may realize that you don’t have the kind of information customers want to do a detailed comparison, at least not in a way that’s easily accessible to them. You may find that customers short-list by looking for reviews—and you don’t have any reviews on popular sites.
All of these represent opportunities to improve your marketing, and grow your sales. Of course, that’s only half the battle. Next, you have to actually use that information, create a plan, and execute on it. A sales funnel analysis is a excellent and relatively easy way to take the first step in improving your sales and marketing.
Have you used a process like this in your business? What would you add?
Neicole Crepeau a blogger at Coherent Social Media and the creator of CurateXpress, a content curation tool. She works at Coherent Interactive on social media, website design, mobile apps, & marketing. Connect with Neicole on Twitter at @neicolec
The most useful blog post ever
May 15th
This is a blog post with a mission and shortly, you’ll see why. I’m going to keep the link to use far into the future and maybe you will too. I think it will save you time and get you out of awkward situations for years to come. Here we go:
Dear Twitter follower:
I enjoy connecting with people and am eager to help my social media friends in any way I can. However, it is a bit awkward when folks ask me to tweet a link, contribute to a charity, review a blog post, read your book, examine your website, review your business strategy, or like a Facebook page when I don’t really know you.
The social web is a weird place. Perhaps you have been following me for some time and maybe you’re even reading my blog. I can see why you might think that you know me. But from my perspective, it is a little spooky to have people I have never heard of pop up and ask me to do them favors. And all these requests add up! If I answered every request from people who want to “pick my brain” I would not be able to feed my family. You see, as a consultant, my time is the only thing I have to sell.
How can we correct this situation?
For people who authentically try to connect with me on my social sphere — commenting on blogs, connecting with me on Twitter, conversing on Google Plus or Facebook — I will enthusiastically and tirelessly help them in any way I can. In fact, I give my time to help somebody almost every single day.
Remember that the social web is about being SOCIAL. It’s about giving. In fact, it’s about giving, giving, giving, giving, giving … and THEN asking. So please get to know me before asking for a favor, OK? I look forward to that because once we’re connected, you never know where it may lead.
Thanks for taking this first step.
Your friendly neighborhood blogger,
Mark Schaefer
A shortened link for your future enjoyment and use : ) bit.ly/GrowByGiving
How does a small business move into social media marketing?
May 13th
I recently received this excellent question from one of my students:
Big global companies usually have a social media department but medium and small companies usually add this job for some marketing or PR manager in addition to his area of responsibility or hire some cheap employee or intern — with negative results. So how should a small business with limited resources realistically approach social media marketing?
The time and resources needed to be effective in social media is certainly a problem for companies big and small. I think we can burst the bubble by now — social media is NOT free. In fact, large brands are devoting a significant part of their marketing budget into these efforts.
There seems to be no choice — most companies must develop some competency in this channel. In addition to the obvious reason that social media has become a preferred method of communication (and complaining) for many demographic groups, other marketing channels are drying up.
The transition to a social marketing mindset is difficult for companies of any size! One huge consumer goods company laid-off 1,500 marketers last month because they didn’t have the right skillset to move into the future. Another global brand I work with has literally tested the digital competency of every marketing person in their company. Low scorers are going through mandatory training, medium scorers are going through advanced training and even high scorers are going through a series of “TED talk”-like seminars.
These represent two strategies toward this transition — jettison ineffective resources or aggressively re-train them.
But let’s get back to the original question, what if you’re a small business and have very few resources to begin with? How do you make this transition?
The big difference is, as a small business owner, you have less room for error. You probably don’t have the luxury of hiring a new team to create a social media effort. So here are some ways to minimize the risk during this transition:
1) Do a reality check. Before committing to a new plan, conduct a simple survey or get out and talk to your customers. Where are they spending their time? What are your competitors doing? Keep in mind that there is probably a first-movers advantage for many businesses so don’t overlook the fact that creating a competency in social media marketing could be a source of competitive advantage.
2) Learn. To move ahead with social media for your business, you don’t have to be an expert, but you do have to learn enough to at least ask the right questions. If you’re just starting out, here is a video series that can help get you quickly up to speed on the basics: Social Media From Scratch.
3) Set real goals. What are your company’s critical needs right now? How can some of these new social media opportunities specifically align with your goals? Don’t get caught up in the hype. Your budget probably does not have much room for “extra,” so think through how this activity will best move the needle for your business.
4) Get professional help. 95% of the companies I see engaging in social media are simply checking a box and not getting much out of the effort. In other words, they had somebody’s cousin create the company Facebook page. For the first six months, it usually makes sense to invest in a marketing professional to give you some guidance and speed you through the learning curve.
It’s like strapping yourself to an instructor the first time you skydive. After a couple trips, you’re ready to go it alone. When seeking expert help, ask this question: What previous marketing experience do you have and can you show me measurable results of your social media efforts? That will weed out most self-proclaimed “gurus!”
5) Don’t view social media as an “add on.” Before you hire a new social media team, I would first look at where you are spending your current budget and resources – is it time to simply re-adjust? For example, spending on newspaper advertising has declined by 75% in the US (down to 1950s levels). If you have been spending much of your time on traditional forms of advertising, it might be time to move those resources to something else. You have to go where your customers are. Should you re-allocate? If you just pile more work on to existing employees this will probably fail.
6) Re-frame the opportunity. Here is some good news. Ten years ago, you would take out an ad and wait for something to happen. Today, literally every employee can be involved in “marketing” as a beacon for your company on the social web. It’s a new way of thinking, isn’t it? How can you capture employee incremental time or down time? How can you involve and engage the many networks of your employees, customers, and other stakeholders?
Another way to re-frame the opportunity is that marketing through the social web can possibly be a great equalizer for small businesses. For a little bit of time and effort, you can potentially have a very powerful impact and possibly reach vast new audiences.
7) Realistic expectations. For many small companies, the result from social media marketing is more like the long-term benefits of networking at a chamber of commerce meeting than the short-term benefits of issuing a coupon in the newspaper. Don’t get me wrong — short-term benefits are certainly possible — but in general, aim for long-term benefits such as increasing customer loyalty.
I’ve worked with many small businesses and start-ups so I know how painful and risky these marketing decisions can be. I’d love to hear from you. What additional recommendations would you give a small business trying to make begin a social media marketing program?
The Joy of Life
May 12th
I just completed a whirlwind trip of London and had very little time to rest and take in the sights. But a meeting cancellation opened up a magical 90 minutes to walk through Hyde Park and enjoy a rare period of London sunshine.
I came upon the glorious sculpture and fountain pictured above, “The Joy of Life” by T. B. Huxley-Jones (1963). I became transfixed by the uplifting theme and the sheer exuberance of the artwork.
While I was admiring the fountain, I caught a whiff of pipe tobacco smoke — the same brand used my grandfather, who died almost exactly 10 years ago. My grandfather was a hard-working plumber who, through his craft, helped transform his hometown of Pittsburgh from a sooty mess of a place to a shiny, modern city always at the top of the “most livable” cities in America.
It could not have been easy work and he sometimes struggled to make ends meet. And yet he never complained and taught me through his example to take pleasures in the simple things that he could afford — a hearty soup, flowers in his garden, a baseball game on the radio. Such a simple life, such a joyful life.
I sat by the fountain and reflected on my friend Gabrielle Laine-Peters. I had known Gabrielle some time through Twitter but met her for the first time this week and learned that she was a woman who had looked death in the face — numerous times — and has overcome incredible hardship to re-gain an infectious spirit of joy in her life. Much of this has come through the global connections of the social web. What an inspiring woman. What a joyful woman.
As I stared into the face of the boy in the statue seeming leaping into the pool I recognized the expression of my little friend Elijah, an inner city child I mentor and help care for.
He is a boy with the odds stacked against him yet can find joy by leaping (never walking!) down steps, turning a rusty railing into a playground, and yes, leaping head-first with joy into a puddle. I learn from him constantly — he can find joy in anything.
To be human is to suffer. And yet, what defines us as individuals is how we can or cannot overcome this unavoidable pain to find meaning and joy in our lives. Life is hard. I am constantly thinking about how I can transform and re-frame my personal challenges into experiences of joy. I’m still learning from these inspiring people.
How about you? Are you making joy a priority in your life?
Welcome to {grow}
You’re in marketing for one reason: Grow.
Grow your company, reputation, customers, impact, profits. Grow yourself. This is a community that will help. It will stretch your mind, connect you to fascinating people, and provide some fun along the way. I am so glad you’re here.
-Mark SchaeferFollow Mark
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