January.

For retailers, it’s cold not just outside, but indoors when it comes to moving the stock off the shelves. After the Christmas-buying sprees, most shoppers are back at home cooling their heels while retailers try to entice them back out to buy. The one stand-by many local store owners turn to is holding big sales, and they’re finding that in a tough economy it’s necessary to offer deeper and deeper discounts to get folks back and willing to buy. It’s great to have warm bodies in your store again, but it’s not great if your sale ends up making you no profit due to all that deep discounting.

So what’s the method of success that allows you to get the customers back and still make a profit? Is there a way to get both?

There are several methods you can employ to attract business and still maintain a profit margin. See which one of these (or more than one) will work best in your restaurant, retail store, or service-based business and give it a go.

Know Your Bottom Line, and Sell Just Above

This is the method to use with that inventory that needs to move out the door, not with that great new batch of products that just came in for Spring. Calculate your bottom dollar on these items: how low can you go and still make something, even if it’s a small something? Then make your strategy to sell many of these items, each bringing in that small amount of profit, and you’ll end up with a good amount of profit when all is said and done. Plus you’ll have cleared your store of excess, aging inventory.

Create a Loss-Leader

Grocery stores use the loss-leader method just about every week; their circulars advertise a deal that’s “too good to pass up” for their shoppers. In many cases, the grocery stores are taking a loss on this item, but they know that just getting the customers in the store is worth that small loss. How many times have you gone to the grocery store and bought just one item? Most of us don’t shop for groceries that way, and why not? Because in the process of locating and purchasing the loss-leader item, we’re unable to ignore the displays of other great merchandise – some also discounted, some not – that we have to walk past and around to find our goal. Use the same strategy in your store; advertise a huge discount on a popular item, set up a great display for it, and put it smack in the middle of many other great displays with enticing offers of their own.

Offer Package Deals

Another angle on the loss-leader strategy is to offer package deals and discounts; this method allows you to package your items of choice together, being sure that one of them is a cheaper item for you to purchase, which gives you greater wiggle room for a discount. You can offer a greater discount on a combined package, knowing that your combined investment in all the package items is still well below the discounted package price. You might even use a “buy one of these, get one of these other things” free method to sell a costlier item without a discount while taking the “loss” on your cheaper, freebie item. It’s the same method beauty product companies’ use when they offer a “special gift” with a purchase.

Add Value that Doesn’t Cost You Cash

What can you offer your customers that doesn’t come with any cash cost to you? Look beyond the basic inventory, and think about subscriptions, memberships, special discount or dining clubs, consultations, or other perks that offer a huge incentive for customers thinking about a purchase. The value is still there for the customer, who would otherwise have to pay to get the subscription or membership or consultation; but the value-added item isn’t costing you cash that you can’t afford to lose. Use these value-added items to upsell; offer them as freebies or part of a package, which allows you to give your customers an increased value for the same cost without decreasing your profit margin.

What method sounds best for your business?

Image by Alan Cleaver2000.

It’s funny. It seems like the posts you (my readers) like the best are the ones where I give a more personal insight into the work I’m doing, or the thoughts I’m thinking as it relates to business. Not to take all the warm and fuzzies out of it, but I’ve got stats to prove this. The web analytics, Facebook insights and Twitter re-tweets – they all tell the story. My readers…my customers…they like knowing the real me and hearing that inside my brain, emotional, thoughtful type stuff.

Which got me thinking… maybe your customers would like the same thing.

Customers Are Humans, Too.

In general, humans are emotional beings, created to live in community with other humans and to interact with on a personal level. There’s way more to every business transaction than some logical need – there is an emotional connection that takes place – yes, even in the most shrewd business situations. So, how can you use this fact to connect on a deeper level (which creates immense customer loyalty, by the way) with your customers today?

Here are a few ideas I had… But I’d also love to hear your ideas, so fire away in the comments sections to help all of us do a better job at using our “humanness” as a marketing tactic to grow our businesses.

1. Use a picture of a human (you, the business owner, the manager, a key employee, an employee of the month, even a customer testimonial with photo) on your outgoing messages (that includes email, web site pages, traditional advertisements, posts on Facebook and your Twitter profile pic for your business).

2. Have all owners and employees name tags in your business, so that customers can connect with a name, not just a face.

3. Have all owners and employees introduce themselves personally and shake hands or hug customers when they enter (depending on the level of familiarity, of course). Physical contact in this professional way will deepen relationships and leave a more lasting positive impression.

4. Have your owner and employees become a source of valuable ideas instead of marketing gimmicks. For example, instead of greeting a customer with a sales gimmick when they walk in the store, have them demonstrate what to do with a certain item, how to use it, etc.

5. Place signs around the store with photos of employees or owners that provide personalized advice through signage. For example:

Mary’s Top 10 Graduation Gift Ideas Under $50

Mary’s Favorite Pair of Jeans for Summer – White Bootcut Delta Blues

Mary Recommends… Mixing your grandmother’s antique china with this Gail Pittman ivory pottery plate for a bright spring luncheon

6. Use your blog, email, Facebook and Twitter as a place to circulate more of these types of ideas, to reach out to others who are asking questions or making comments that you can engage in conversation about (i.e. be human and join conversations in a normal human way, but on behalf of your business).

7. Use your blog to explain more about the ideas you’ve shared on the signs in-store. For example, you can create a blog post “written by” the person who made the tip on the store sign, include their photo on the blog post as well, include some additional sample pictures of products (include price and official name of product in the caption), and explain in more detail what you presented on the store sign. For instance, if you were saying more about Mary’s favorite pair of summer jeans, you might show some outfit ideas, tell why they are her favorite from her perspective (does she have a certain body type that they fit well, are they lighter weight for hot Southern summers, is there an event that she looks forward to that she plans to wear the jeans to?), and even share a bit of the story behind the brand (a brand created in the South to fit Southern women, etc.). This extends the customer’s in-store experience, and it gives you a lot of content to post on social media, which will in turn also create new sales. And it’s all done from a human, personal perspective, which will lead to tighter emotional connections, higher per-ticket sales averages, and a more loyal customer base.

Trust me… we all really do like it when people are more human in how they do business. The numbers prove it.

Image by: brewbooks

The good news for retailers this Valentine’s Day is that consumer spending is on the rise. An annual Valentine’s Day survey, conducted by the National Retail Federation, suggests an 11% increase in spending on Valentine’s Day purchases. The expected total spending on all the romance is in the neighborhood of $15 billion dollars.

If you’re a retail store or restaurant owner, you should definitely be reaping some of those benefits from increased consumer spending.

And if you’re a retail store or restaurant owner, you should definitely be planning how you will attract those sales. Throwing a few paper hearts in the window is great, but come on: you can do better than that.

Even though we are less than one week to V-Day, you can still make the time count.

10 Last-Minute V-Day Marketing Ideas

1. Market to the ladies! Though men traditionally spend more on their Valentines than the other way around, women still comprise a large chunk of Valentine’s change, with the average female consumer expecting to spend around $80 on Valentine’s purchases this year. So clear out some of that lacey, heart-shaped stuff and put together some gift packages and product promotions that any red-blooded male would be happy to receive as a gift.

2. Put together a last-minute shopper’s package. Or several. There will be many who delay shopping until the last minute, and if you can present options that are thoughtful, creative, beautifully packaged, and good for several price points, you can get their business.

3. Hold extended hours on the weekend before Valentine’s Day. If you’re not usually open on the weekend, make an exception. Stay open late on Saturday night. Open up for a few hours on Sunday afternoon. Advertise your additional hours, of course, as a special time for Valentine’s shoppers.

4. Offer Early Bird Specials on V-Day itself. This year Valentine’s Day falls on a Monday; open up a couple of hours early for those wanting to grab a gift on their way to work. Put together a special discount for the Early Bird Shoppers. Have some piping hot coffee available, too. Donuts wouldn’t hurt.

5. Offer free delivery. Of course, not every business is set up for this, but if you are, then capitalize on it. Restaurants could offer pre-made romantic dinners to be delivered the day of (or a day ahead) with instructions on cooking or reheating as needed. Retail shops (beyond florists!) could offer beautiful wrapping and timely delivery of any Valentine’s gift purchased. It doesn’t have to be free, either.

6. Offer a custom shopping service. If you have some talented sales staff, offer to assist shoppers; uncertain or time-crunched spouses can call in with a price point, a few details about their significant other’s tastes, and then have you pick out, wrap (and deliver?) and charge them for a great, custom-selected gift.

7. Appeal to the rebels and creatives. Break out of the traditional Valentine’s Day flowers-candy-chocolates-dining gift list. What do you have that is quirky, funny, creative, off the cuff, special in a non-sappy way? There are plenty of people who are tired of the same old options. Give them something refreshing for a change.

8. Go with a red-and-white color theme. Help yourself think out of the box by promoting anything that fits into your red-and-white criteria as potential Valentine’s material. You could even offer a discount on any red or white items purchased between now and February 14th.

9. Offer an incentive with a future deal. Give a coupon towards 20% off future purchases with any purchase made for Valentine’s Day. Designate amounts if you want. Or make it for a specific product or service.

10. Extend your great offers through “Valentine’s Week.” Offer deals for the dudes in the doghouse (“Forgot Valentine’s Day? We can help!”) or the gals who didn’t get what they wanted (“Not loving your Valentine’s gift? Come pick out your own!”). Hey, when love is in the air, don’t just leave it hanging!

Image: Samantha Marx.

In this week’s marketing strategy, we’re going to explore how to give customer rewards (customer loyalty rewards) in return for customers sharing your business on popular social media sites.

iMingle is a fairly new player in the social networking scene, and it brings in an element most people don’t associate with social networking: insurance. It works by rewarding people for networking and purchasing insurance; when individuals network, and get a group together to purchase insurance, they can get a multi-policy deal and garner big discounts that otherwise they’d have no way to access. The insurance companies get more customers, and the purchasers get a better bargain on what they pay.

So far it’s working pretty well, and it’s a new concept that small businesses can grab onto and use in their own way. Here’s how:

Putting the Strategy to Work in Your Locally-Owned Business

To apply this strategy to your own small business, ask yourself two questions: what do customers want most from you (what can you provide) and how can you give your customers what they want with your social networks? Let’s break that down a little bit by looking at a hypothetical case: a small-town restaurant owner with a good business and the desire to expand with online sales.

So our restaurant owner – let’s call him Jerry – thinks about what his customers want most from him. That means both his local customers and his (potential) online customers. Jerry wants to use his online presence to connect with local people and to increase his customer base for Internet sales of his packaged gourmet foods. He knows what his local customers want: they want to get great deals and discounts on meals at the restaurant. He’s asked them in various ways, and that’s always the most popular response.

Jerry’s not so sure about his Internet customers, because he’s still getting into that world of online sales. So he takes a guess that they probably want great deals on the stuff they’re going to buy from him, too. They want high-quality, unique gourmet food items and they want to get deals and discounts on those items.

In both cases, what Jerry needs to provide is a better deal or the opportunity for a discount: a way for his customers to get an insider’s bargain on his meals and gourmet items. The second question he thinks about is this: how can he use his online presence to give his customers what they want, in a way that rewards them for interacting with him (i.e. his restaurant) online?

Jerry comes up with these ideas:

• He can give a coupon every time someone refers a friend who becomes a fan of the restaurant’s Facebook page or a follower of the restaurant on Twitter.
• He can offer group discounts; when a fan or follower gets X number of people to make a purchase (in the restaurant or via the online store) they all get a certain discount. He can use coupon codes for this.
• He can give a coupon for any type of social interaction online which promotes his restaurant; customers can “earn” a discount by sharing a link to his webpage, his Facebook page, or his Twitter account, or by blogging about his restaurant, reviewing his products, or getting a friend to sign up for his e-newsletter.

What ideas do you have for your business to expand your reach to new customers while rewarding the loyalty of existing customers?

Image: One Laptop per Child

The Ritz-Carlton is known for luxurious hotels, great amenities… but most of all, it’s known for customer service. Great, astounding, personal, friendly, immediate customer service. Customer service that actually keeps the customer in mind. If you want to stand out among your competitors, take these Ritz Carlton customer service lessons to heart.

1. Acknowledge and apologize for your mistakes.
Then do something nice to make up for them. Stacey Hylen, a business coach, recounts an experience at a Ritz-Carlton hotel: they forgot her wake-up call, and when she let the front desk know about it, they immediately apologized and offered to send breakfast to her room. Hylen declined, as she had other breakfast plans, but when she got back to the room she found a basket of gourmet food and a handwritten note of apology waiting for her.

When a customer is wronged, even in the slightest way, don’t make excuses or get defensive. Instead, be bold and sincere enough to admit your mistake (even if it was inadvertent) and then apologize. Then take it up to the Ritz level by doing something nice to make up for the mistake. Send a card, a gift certificate, buy them dinner, give a freebie, make it better. Be memorable for your great response, not for your mistake.

2. Be proactive.
Don MacAskill, founder of SmugMug, talks about an anniversary visit he and his wife took to a Ritz-Carlton. The outstanding part of his story was that several days before they even left, he got a call from a member of the Ritz staff, asking if there were any special preparations they could make to help make their anniversary stay even more special.

What can you do to stay top-of-mind with your customers? Reach out with amazing proactive customer service to make every experience they have with you special, unforgettable, unbelievably good. Don’t wait for an unhappy customer and then pull out the stops. Make an advance phone call, send out birthday cards, remember names, greet people at the door, be proactive.

3. Make it a top priority.
In order for great customer service to happen on a regular basis, you have to make it one of your businesses’ top priorities. And you have to pass that attitude on down to your employees. That means that you need to give them authority to extend amazing customer service. If you’re getting upset with a waiter who comps a dessert to please an unhappy customer, you’re sending the wrong message. Set up any system you want, but be sure that message your employees get – every single day, every single shift – is that customer service matters.

And it does. If you don’t pay attention to customer service, you may get by, but most likely you won’t stand out. The personal experience and the friendly connection created by superb customer service will make you memorable – in the best of ways – with every person who walks through your door.

Image by Paul Lowry.

This is a post in the “How to Create a 2011 Local Business Marketing Plan”* series. Some of it will be shared here on [resultsrevolution.com]. The rest will be shared via my free newsletter. Sign up now to get the newsletter so you don’t miss a single tip in the planning series.

As you look forward to 2011, if you’re a local business, here are four tips to help you embrace your inner “local” and to help your small business stand out in a BIG way this next year!

1. Be local.

You’re a local small business with a brick-and-mortar storefront in your town. Maybe you have more than one location. Maybe you’re the oldest business in town, or maybe you’re the newest one. Whether you’re small or big, you’re the only store offering your service or product in the area, or you’re in the midst of many competitors, your local edge is a brand advantage and one you should use wisely.

Don’t try to be something you’re not: a national, faceless, anonymous business. Sure, those big boys have larger budgets and more resources, but they don’t have the local roots and the local connections you do. Put a local spin on what you do. Celebrate being local, Take part in the community. Highlight local products. Promote other local businesses. Advertise in local publications. Get involved with local organizations, charities, and business groups. Meet your neighbors, both personal and business. In short, position your brand as the local business option.

Highlight your strength as a local business and use your knowledge and relationships to offer what the local people want. Embrace your local-ness – love being local and use it to your advantage in marketing and customer retention efforts!

2. Have a specialty.

How do you stand out if you’re a single, locally owned restaurant in a town with five other great local restaurants? Find your niche, your specialty, and play it up. Maybe you’re the King of Cajun Cuisine, or you have a big-city wine list in a small town. Perhaps your dessert is out of this world, or you offer great seasonal specials that highlight the local produce, or you know that customers order your soup just to get those amazing garlic breadsticks on the side. Whatever your specialty is, find it and magnify it. Make it a prominent part of what you offer. Talk about it and market it. It’s not a specialty if no one knows about it.
While we’re on the topic, here’s a great case study on niche positioning and related customer experience that might be helpful to you as you pursue this idea.

3. Give amazing service.

No matter where you are or what your product or service is, giving consistently superb customer service will cause you to stand out amongst your competitors, both local and national. When you treat customers like your friends, that’s what they will become. When problems do arise, as they inevitably will, deal with them promptly and courteously.

A key element of this tip is the word “consistent.” We’ve talked about this before, but it stands repeating. Consistency is critical – especially in customer service.

4. Offer what the box stores can’t.

Big box stores and huge, national chains have advantages over local, small businesses, sure. But local, small businesses have advantages too; as part of a locally owned small business, you can make your own policies, create personal relationships, follow up on a personal basis, set your own hours, take special orders, and do custom work. You may not have the inventory capacity of the big store down the road, but you have the small business capacity to listen to your best customers and adjust the inventory you offer to meet their needs. If you find that your busy times are in the afternoon and evening instead of morning, you can open later and stay open later. Take advantage of the freedom you do have as a small business to relate specifically to your customers.

2011 is the year for local success. Please let us know how YOU benefit from your “local-ness” in your marketing and business efforts – drop us a comment below!

Image by Cameron Cassan.

A customer loyalty program, sometimes known as a rewards program, gives your small business an easy way to reward your customers for doing what you want them to do: coming back and giving you repeat business. You already have a base of loyal customers, and creating a customer loyalty program helps you strengthen those relationships. For newer customers, or those who are still deciding how much they like you, a loyalty program can be just the right incentive to keep you front of mind and keep them coming back to your brick-and-mortar store.

Need convincing that customer loyalty is critical to your business? Try reading these posts on customer loyalty and the value of customer retention.

Elements of a Customer Loyalty Program

Implementing a customer loyalty program is a pretty simple matter. You need to make it easy for people to sign up, preferably in several ways: a short form to fill out when they’re shopping or checking out in the store, an easy form to fill out online via your Facebook page, blog, and/or website. (You can do it in conjunction with growing your e-mail list – we explain step by step how to do this here.) Once people sign up, you need to have a system for keeping track of those in your loyalty program; you want a single place with all the information on each customer who has opted in. That way, when you do special mailings or offers, you have your mailing list right there.

The third element of a successful customer loyalty program is the rewards that customers can “earn” by continuing to give you repeat business. Rewards programs can be simple, and are usually very low cost to the business, but they need to be measurable and tangible. Your customers need a tangible reason to opt in to the loyalty program, and you need a measurable way to see what you’re investing in the loyalty program and what kind of return you’re getting on it.

Types of Customer Loyalty Programs

Points system: this is what airlines and credit card companies use. In simplest terms, a point is awarded for every dollar spent, though the ratio may vary (1 point for every 1.50 dollars, for example). When a customer accrues a certain number of points, they can be redeemed for a product or service offered by the company or, often, by a partner company.

For small businesses: this system is simple in theory but can get a little complex to keep track of without an electronic system. Be sure you have an accurate way to track the points earned by your customers and to track when those points are used for rewards. You’ll also need to set up a rewards scale with specific prizes or options for certain amounts of points.

Discount system: many retail businesses use a discount system for loyalty programs. This works well for both retail shops and restaurants. For every purchase or for every dollar amount spent (could be $10 or $20 or whatever level you choose to set), the customer receives a credit. Once the customer has earned a certain number of credits, he gets a discount, perhaps a dollar amount or percent amount off on their next purchase.

For small businesses: this system is easy to implement and track. Generally, businesses use a punch card type system and customers simply show their card when it is full to receive their discount. Another bonus of this system is that the reward actually brings in even more business.

Freebie system: similar to the discount system, the freebie system is often used by cafes and coffee shops. When a customer makes a sufficient number of purchases or spends X amount of dollars, she gets a freebie. A coffee shop might offer one free coffee drink for every ten cups of coffee purchased, or a free pound of coffee for every ten pounds of coffee purchased.

For small businesses: this system is also easy to implement and track using a punch card set-up, and customers love the idea of getting something for free. It’s also easy for small businesses to track the amount of money they’ll invest for each customer, and it’s usually minimal. Retail shops can always offer freebies too, and it’s a good way to get rid of excess inventory.

Image by Easa Shamih.