How Familiarity Breeds Business a.k.a. the power of word of mouth

When you talk about marketing your small business, what you’re really talking about is communicating what it is your small business does for prospective customers or clients.

However, marketing is MORE than just communication – it’s communication that inspires action.

Marketing = Communication that moves people to action

In my book, Beyond the Niche: Essential Tools You Need to Create Marketing Messages that Deliver Results, I spend a LOT of time covering how important it is for you to get to know your customers.    Getting to know your target audience is a vitally important part of creating a compelling and selling marketing message.  After all, if you don’t know to whom you are speaking – how can you communicate in a way that moves people to action?

One way some business owners try to “get around” this whole ugly “target market identification” is to rely upon the most coveted of marketing tactics to promote their business – word of mouth marketing.

While having your customers spreading the word about what your business does is every business owners idea of nirvana – word of mouth marketing doesn’t just “happen”.  In fact, a lot of thought goes into laying the proper foundation for a successful word of mouth marketing campaign.

Laying the foundation for your Word of Mouth Marketing Campaign

When you start thinking of marketing less like “selling” and more like other forms of communication, a lot of factors start to fall easily into place.

Note: If you want to make a real MESS of social media – treat social networking tools like a sales call instead of a cocktail party!

Marketing communication is really not so very different than striking up a conversation at a cocktail party.  Part of cocktail party etiquette includes making a proper introduction of yourself.  However, in the case of marketing communications it’s not considered bad form to include an introduction of your services as well.

This introduction is called many things.  Some circles call it an elevator speech while authors would call it creating a great “back story”.  Whatever name you use, creating this introductory piece is an essential part of laying a foundation for your word of mouth campaign.

Brian Clark wrote a truly profound article on How Word of Mouth Marketing Really Works where he points out that the KEY to creating successful word of mouth marketing is to create a story that your customers want to tell.

An essential part of creating a story your customers want to tell is to give them a proper introduction to your business.

Let’s go back to the cocktail party.  You’re laughing, drinking and having a wonderful time when “that guy” corners you.  There’s no introduction – no pleasantries  – he thrusts his business card upon you and launches into his hard closing sales spiel.

EWWWW!!!!!

You want to run.  This guy doesn’t know you and you certainly don’t want to get to know him any better.  The same principle holds true when you’re striking up a conversation with prospective customers.  A natural part of the process is introducing yourself to your customers.

When you’re blogging, you do that on your “about” page.  The “about” page on any business website or blog is a very popular destination for prospective customers.

So while it’s important to become familiar with your customers -knowing who they are and what problems they need to solve, you must also be sure that they become just as familiar with you.

Jason Alba, the founder of Jibber Jobber, understands how important building familiarity is to building his business.  Meridith Levinson wrote about Jason in the article, How a Job Search Led Jason Alba to Start JibberJobber, and shares the story of how Jason went from aspiring CIO to unemployed “geek” to successful entrepreneur.  When the story is published, Jason notices that sign ups for Jibber Jobber have increased.

Word of mouth marketing is simply when people tell the story of your product or service for you. PR is what happens when the person telling the story is a journalist.

Jason has been building “familiarity” with his target audience ever since he launched his business.  One important tool he’s been using to tell this story is his blog.  The story of how Jibber Jobber came to be is told often in his posts such as, Happy January 13th! Guess what’s special about today?

Jason has carefully crafted a story that is easy for others to pick up and tell – whether they’re journalists, job seekers or career coaches. Notice how the story not only tells the problems Jibber Jobber helps to “solve” but how it also offers assurance to his target audience (job seekers)  that Jason “gets it”.  He knows what works – and what doesn’t in a job search and he has created a tool to make job searching better!

By creating such an appealing “back story”, he has laid the necessary foundation to create a powerful word of mouth marketing campaign.

Part of crafting your story is knowing who your target customers are.  Once you get familiar with your target audience, be sure that they become just as familiar with you.  Crafting your business introduction is perhaps one of the most important marketing tasks you’ll undertake.

If you don’t think your business has a “story”, try answering these questions:

  • How did your business get started?
  • If yours is a family business, why did your ancestors get into this line of work?
  • What problems were you trying to solve when you bought or launched your business?

To work as hard as you do, there must be a compelling reason for doing what you’ve chosen do for a living. The story of how your business came into existence can create a great foundation for a word of mouth marketing campaign.

What’s the story behind the launch of your business and/or blog?

Steps to Starting a Small Business: #5 Marketing Strategies – AGAIN

This is the fifth installment of the Steps to Starting a Small Business and it’s really an extension of the previous Steps to Starting a Small Business: #3 Promotion. However, I’ve addressed this twice via email and phone over the past seven days, which is always a sign that I need to blog about a topic.  Here it goes.

A marketing strategy is different than a marketing tactic.  A blog is NOT a marketing strategy. Believe it or not, a BLOG is actually a marketing tactic.

Marketing tactics are how you achieve the marketing goals established in when you created your marketing strategy.

If you have a product or service of interest to bloggers, then by all means, a blog is a WONDERFUL marketing tactic for your business.   However, it’s possible that your target audience doesn’t know a blog from an online bulletin board.  If that’s the case, then a blog IS STILL probably a GREAT marketing tool but it may not be a marketing tactic to take your business where you want to go.  (Blasphemy – I know!)

Creating a marketing strategy is like planning a trip. When you’re planning a trip, you must first identify where you are, “I’m in Philadelphia, PA” and then you identify where you want to go, “I want to end up in Miami, FL.”

When you’re creating a marketing strategy, you begin with where you are.  “I provide coaching services to women who are divorced and want to create a new life after divorce.”    Then, you identify where you want to end up.  “I want to have a coaching practice where I have 5 coaching groups with 7 members in each group.”

GREAT START!  You know where you are and you know where you want to be.   Now all you have to figure out is how to get there!  Part of planning your trip is figuring out where your target audience (divorced women) are spending most of their time and what has their attention.

Marketing is a numbers game – pure and simple.  You have to determine how many people need to be exposed to your message to keep your business afloat.

The numbers game translates into an easy to represent funnel.  The first question to ask is how many website visitors do you need to get 35 clients into your group coaching programs?

The illustration to the left shows a “typical” sales funnel.   For every 1000 website visitors, 100 (1 out of 10) of those visitors signs up for the newsletter.  (If you don’t HAVE a newsletter – you’re missing an important step in the sales conversion process.)

Out of those 100 newsletter subscribers, 10 “bite” when you offer your coaching group.

With this information in hand, you now know that you need 3500 unique visitors to your website to get the 350 newsletter subscribers to get the 35 group coaching members.

This is why it’s so important to tightly target your audience and then do the keyword research to find out what WORDS your target audience is using to find solutions on the internet.

See, if our coach above didn’t define her target audience as “divorced women” then she wouldn’t have any idea of where to start when it came to looking for the keywords her target audience may be using as they search for answers to their problems via the web.

HOUSTON WE HAVE A PROBLEM:

a) It’s very possible that divorced women are not SEARCHING the web looking for a divorce coach.

b) The search engines aren’t going to be delivering tens of thousands of visitors to her brand new website any time in the near future.

Does that mean that you should scrap the idea?

DEFINITELY NOT!

If you’re offering solutions to people’s problems – and those people are willing to PAY to have those problems solved – then you have a viable business.  However, you may not be able to sit back and allow the search engines to drive the traffic you need to your website to build your business.

What it does mean is that she needs to look at using other methods to drive traffic to her website.

One way around the whole “oops I need more traffic” conundrum is to use Google Adwords.  Google Adwords is SOOOO amazingly easy to use, but I’ve got to warn you – it’s some of the most expensive advertising on the planet!

And for those of you who wonder what I do to pay the bills – here it is.  I come up with creative ways to build your business.  Sometimes it’s via the web – sometimes the web is just a “gathering basket” for traffic driven via other means.

In the client’s case above, we came up with a “vertical marketing strategy” of sorts.  See, my client really isn’t a blogging kind of a girl, so we had to brainstorm new and different ways for her to fill her sales funnel.

So I asked, where is the one place you can be sure to gain access to newly divorced women?  Answer, “Divorce attorneys offices.”

At first, my client was resistant.  After all, why would divorce attorneys help her build her business?  That’s where the hard work began.  I helped her to “frame” her services in a way that it was actually a benefit the divorce attorney could offer his clients – with no additional cost to him/her.

If you’re getting a divorce and your choice is between two attorneys – one of which offers not only access but a substantial discount on a program to help you get back on your feet in a matter of months instead of years after your divorce and the other doesn’t – which attorney will you choose?

The first ten attorneys she approached JUMPED at the chance to sit down and discuss this with her and now, instead of paying Google tens of thousands of dollars for a PPC campaign, she’s going to buy lunch for ten different divorce attorneys.  If each attorney sends her 4 clients, her practice will be full AND she’ll have access to a constant stream of new clients. Oh,  the “tough” economy is exactly WHY those ten attorneys are looking for something to give them an “edge”.

What’s your marketing strategy?   Who’s your target audience?  How are you planning on reaching them?

The “Real Deal” – The Value of Authenticity in Blogging

If each of us hires people who are smaller than we are, we shall become a company of dwarfs. But if each of us hires people who are bigger than we are, we shall become a company of giants.

David M Ogilvy

It’s no secret that I’ve been a HUGE fan of Cath Lawson for quite some time now.  While I don’t remember exactly which blog post it was that I first read, but I still remember the feeling that washed over me when I discovered her blog.   Was it recognition?  Was it relief?

It was probably a little of both.  After all, I’ve publicly declared that there are times when I feel like I’m the only ” honest politician in Washington” because sometimes, I sometimes get EXHAUSTED by the “self proclaimed gurus and experts” who talk the talk, but don’t walk the walk!  I was half way through reading my first Cath Lawson blog post when I recognized that I had found another “honest politician”, even though she lives “across the pond” from me.

See, Virtual Impax is NOT my first rodeo.  I’ve jumped in and out of self employment ever since the birth of my oldest child and I worked extensively with entrepreneurs and business owners during my time as an AE with an advertising agency.

So it’s only natural I guess that when I had trouble finding a reliable cleaning lady, I decided to start my own cleaning business on the side.  I don’t know WHY I thought that was a good idea at the time.  Looking back, that one was PURE FOLLY!  “Let’s see, I can’t find ONE person who will clean my house properly – I think I’ll start a business where I have to plant my foot in the buttocks of a CREW of people who don’t know how to clean a house properly OR show up for work!”

In the end, I learned A LOT about myself.  I discovered that  I SUCKED as a boss.   I ran my business like it was some kind of charity organization.    I hired women who needed flexible hours and extra money instead of hiring people for their work ethic.   I hired dwarves instead of giants!  I hired people who wanted easy money, not people who took pride in their work!

Of course, my employees used and abused me.  (As Liz Struass would say, “They were people being people.”)   I closed shop when I had a dream that I was working in food prep at McDonald’s.  In the dream, I was stinking of grease and exhausted, but I declared  within that dream that it was better than cleaning houses.

So that’s probably why, when Cathleen would write about the trials and tribulations of running her plumbing company, I could relate.  I recognized the voice of another battle scarred business veteran.

With that said, I don’t know why I was so FLOORED by reading Cath’s offer to run an ad for free on her blog.  I just sat back in shock and awe.

DAMN – SHE’S GOOD!

As a matter of fact, I’d say she’s a MARKETING GENIUS!  No wonder I’m such a fan!  Not only is she a giant, but her readers are as well.   As her readers have been finding this blog, I’m feeling quite privledged to be in the company of so MANY giants at one time.

By the way, I can DEFINITELY tell a difference between Cath’s readers and mine.  Cath’s readers leave comments.  Mine email me or use the contact form.  Either way is good for me!

Starting Your Own Small Business: Tell Your Story

In advertising and in business, familiarity doesn’t breed contempt -it breeds business.

Telling your business story is an essential part of your marketing efforts. James Chartrand writes in his post Creative Storytelling

A good story grabs anyone’s attention. We love stories. We listen to the tale and imagine everything in our mind’s eye. We experience emotion and are compelled to take action because of the stories we hear.

Matt McGee seconds shares in his post 12 Tips on Creating Content for Social Media that sharing stories is a GREAT way to leverage social media.

Heck, I even wrote about the importance of sharing your business’ story in my book Beyond the Niche: Essential Tools You Need to Create Marketing Messages that Deliver Results:

You must be familiar with your customers. Know who they are, where they live and what they like to do. Then, be sure that they become just as familiar with you. Tell them your story. If you don’t think you have a story, consider these questions:

• How did your business get started?
• If yours is a family business, why did your ancestors get into this line of work?
• What factors led you to enter into this business?

If you’ve got your own small business, then you have a story to tell. How did you get started? What inspired you? What would you do differently if you could do it over?

I’d love to share your story of how you started your own small business with readers of this blog.

Just fill out the form and I’ll be happy to share your story. (I will reserve the right to final editorial approval.)