Sound ADvice | The Genuine ScLoHo aka Scott Howard

It’s Not Just The Facts Ma’am

by Scott Howard | Oct 30, 2023 | Marketing and Advertising Insights, Sound ADvice

First a few facts…

We’ve gone thru a challenging number of years in the political world as divisions between Republicans and Democrats have become more prominent, at least at the national level in our country.

Those on the left accuse those on the right of not telling the truth and those on the political right accuse those on the left of not telling the truth.

Both sides accuse the news organizations they don’t like as Fake News.

As someone who knows how media works and who observes all of this on radio, TV and online, I can not only see the biases, but I also understand the why’s behind them.

But I’m not going to go all political on you right now, I’m just going to use that as an example of Facts versus Emotion.

We may think we operate and make decisions based on logical facts but most of us are actually ruled by emotion and then we find the facts to support what we believe.

There’s another part of this that relates to how customers decide what to buy that subscribers to my Sound ADvice newsletter read about recently and I’ll share it right now.

Some consumers make purchase decisions based on relationships and some make them purely on price. They are referred to as either relational or transactional customers.

If your business sells on price alone, this information may not pertain as much to you. If you would like to sell more on relationships, pay close attention and heed this information.

Chris Lytle, author of The Accidental Salesperson, says “If you become known for what you know instead of what you sell, buyers will come to you for help and advice instead of the lowest price.” The good news is that they will pay you more for your knowledge than they will for just the product!

Chris goes on to explain “To become known for what you know, you have to actively market your knowledge instead of your product.”

A group of hugely successful auto parts stores created a strong market position in the DIY category by promoting and exploiting the knowledge of their employees. They had employees who loved Ford and others who knew Chevy, Chrysler, or Dodge inside and out. Even some who were more specifically knowledgeable about the older “muscle cars”. This knowledge took the focus off the price and put it squarely on the fact that they had people with the knowledge, and they had the parts!

As they say, knowledge is power, and the more knowledge you are perceived to have, the more people will look at you and your company as the “experts”.

In the 10 Ways to Market Your Knowledge, the author suggests, “Have an FAQ (Frequently Asked Questions) page on your website. Monitor the questions your customers are asking and publish your answers clearly in layman’s terms. Allow your prospects and customers to ask questions online, and always be prompt in posting your answers. Most importantly, take credit for your answers and make sure the public recognizes that the answers came from you.”

Click here if you would like to see the 10 Ways to Market Your Knowledge.

If you would like to receive my Sound ADvice weekly newsletter, send me an email to Scott@ScLoHo.net.

A few more thoughts on Relational versus Transactional customers:

Transactional will usually only be loyal to you as long as you are the lowest price. That’s a losing game because there is always someone else that can underprice you, even if they do it as a loss just to gain that customer. It’s called a loss-leader.

Relationship based customers are going to be less sensitive to increases in price. Just the other day when I was stopping to pick up my breakfast, I heard them tell a customer that the prices had gone up 20% and they said that’s fine and paid the new price. Relationship based customers are also more forgiving when there is a problem and you explain to them the situation.

I urge all of my business owner friends to pursue the Relationship based customers, they’re the ones that will keep you growing in business.

One more fact to share with you and that is starting today, I am returning to a weekly schedule for publishing and podcasting due to changes in my schedule and the requests from readers and listeners.

Referrals Rule

by Scott Howard | May 3, 2022 | Marketing and Advertising Insights, Sound ADvice

When you hear the words “so-and-so referred me/or suggested I see you”, it’s almost like money in the bank!

You’ve probably heard that it can cost five to ten times as much to attract a new customer as it costs to maintain and keep an existing customer. And, that 80% of your business comes from 20% of your customers. While finding new customers is important, finding more new customers and keeping them is the true secret to success!

Bain & Company and Harvard Business School reports that 80% of businesses believe they deliver a superior customer experience to capture repeat and referral business, while only 8% of their customers agree that these companies provide superior service. They also suggest that a 5 percent increase in customer retention can lead to an increase in profits of between 25 and 95 percent. Both sets of numbers should grab your attention!

While your customers are bombarded with messages from your competition, it makes sense to craft your advertising to attract new customers, but also keep you front and center with current customers.

Many businesses use internet tools like email or social media to pursue customer loyalty and use intrusive broadcast media to attract new customers. While that strategy is certainly valid, they often under-estimate what intrusive media, like radio, can do to serve as a reminder to their current customer base.

What do you do, or can you do, to provide “over the top” customer service? And, do you tell people what you do? Customers expect good service, but it’s when you go over and above that they start to tell their family and friends.

In business, customer perceptions become their realities. If 92% of customers don’t perceive you deliver superior service, they are vulnerable to the aggressive appeals in your competitors’ advertising.

There is a reason that successful businesses like McDonald’s, Home Depot, and GEICO continue to invest more in broadcast advertising…. they understand that to GROW their business they not only need to keep their current clients, but they also need new customers. New customers come from one of three ways: referrals, advertising, or luck!

Want to get luckier by getting more repeat and referral business? Click here to read 12 Ways to Generate More Repeat and Referral Business.

Are U Unique?

by Scott Howard | Apr 26, 2022 | Marketing and Advertising Insights, Sound ADvice

Famous women’s fashion designer and perfume manufacturer Coco Chanel said this about running a business, “In order to be irreplaceable, one must always be different”.

What makes your business special? Do you stand out among your competitors? Do you do things that make other businesses envious and make the general public talk favorably about what you do or what you offer?

Or… are you playing the, “I’ll beat ‘em on the price” game?

If your business isn’t doing anything “special”, the only thing your potential customers can and will judge you on is price or convenience; are you cheaper or are you closer than your competitors. Winning on price alone generally means losing where it really matters….in profits.

Assuming your pricing is at least in the ballpark, there are many things you can promote that cannot be “shopped and compared”. What makes your business stand out in the crowd? Is it your…

Knowledge
Skill
Talent
Hours
Speed
Guarantee or Warranty
Extras (something you do that no one else does)

Even your advertising or marketing style can make you unique. If your commercials and ads look and sound like everyone else’s ads, they won’t stand out. If you create a unique style and strategy, it can make all the difference in the world.

In business, having and promoting superior knowledge, skill, talent, hours, speed of service, guarantee, or doing something extra special is often times the difference between a decent business and a GREAT business.

Click here for our free “Seven Secrets to Promoting Your Competitive Advantage” to increase your top line, and more importantly, your bottom line.

Truth Detection

by Scott Howard | Apr 12, 2022 | Marketing and Advertising Insights, Sound ADvice

Marketing and advertising are all about winning in the court of public opinion and it’s a tough and skeptical jury you are facing. Many of us have been misled by sales pitches or outrageous advertising claims in the past. In short, they are justifiably skeptical of offers made via advertising today.

When preparing for trial, good attorneys are prepared. They have a plan of attack and will often present their case from different angles. Advertising, over the long haul, should be approached in much the same fashion.

There’s an old saying, “facts tell and stories sell”. This is true whether in the courtroom or in advertising. Facts can and will validate your claims. However, it’s a good compelling story that makes it believable and memorable.

In the courtroom, lawyers will tell the same story from several different perspectives and angles. Advertising should use the same approach. Different stories told from different angles will have a different impact on different jurors/consumers.

In many famous court trials, the attorney that can tell the best story, using the cleverest lines, oftentimes win. Remember the famous line, “If it doesn’t fit – you must acquit”. Many experts agree that this one line is what swayed the jury.

The smoking gun is an irrefutable piece of evidence that convinces the jury “beyond a reasonable doubt” that your case is sound. In advertising, there are several ways to convince the public that your business is the one they should choose!

For your advertising to be successful, you must, over time, convince the public that your business is a viable and reputable option.

Does your advertising win in the court of public opinion?

Click here to read the Eight Ways to Validate Your Advertised Claims.

3 Ways To Grow

by Scott Howard | Mar 29, 2022 | ScLoHo Sales Tips, Sound ADvice

As owners or managers of a business, it’s our responsibility to not only figure out how to keep our business functioning properly and effectively, but also how to GROW our business. Staying even or going backward are not options. Growth is vital!

Growing a business is more complicated than just increasing sales. Understanding that there are only three ways to grow a business is a great place to start.

1.) Sell more of what you are currently selling.

2.) Sell what you are currently selling for more money.

3.) Add additional product(s) or service(s) to what you are currently selling.

Regardless of how you slice it, nearly everything you can come up with to grow a business will fall under one of these three headings.

We suggest that you look at each area and identify within your business how you might increase your sales.

1. Selling more this year than you did last year isn’t as easy as it sounds and simply opening up your doors and hanging a “We’re Open” sign isn’t the answer. What can you do to get the same people, or new people, to buy more of your products or services?

2. Can you increase prices? If not on every product or service, can you increase the pricing on some of them? Which ones? Identify them!

3. Adding products or services gets tricky. Think within your business category and then think outside of it. Are there products or services that you can add that won’t distract from or replace your current offerings?

Attracting a customer and getting them to open their wallets can be a difficult and costly process. But once they’re in your showroom and have their wallets open, an accompanying up-sell is relatively easy. Once the customer has chosen a new outfit, getting them to consider adding a pair of shoes or belt is relatively easy and it can be a big step towards growing your business.

The formula works regardless of if your business is retail, service, medical, or professional.

If you would like to see a simple worksheet that can help you start the process of utilizing the three ways to grow your business, click here.

Make Your Networking Work

by Scott Howard | Mar 22, 2022 | Marketing and Advertising Insights, Sound ADvice

Do you network? Does your networking work?

Regardless of whether you operate a business in a small market or a large one, networking can be one of the most powerful “free” marketing tools at your disposal.

While networking is free in many cases, it’s not as simple as signing up or showing up. Productive networks don’t just happen by default. It takes effort and planning. But, if approached correctly, the rewards can be significant.

Look around your community. Many of the most successful businesses are owned and/or operated by people that are actively involved in the community. Networking does work when it’s worked correctly, and done so for the right reasons!

Rule #1 to being a great networker is “Give before you receive and never keep score”. To paraphrase John F. Kennedy, “Ask not what your network can do for you, but what you can do for your network.” If you’re prepared to give of yourself and your company, your networks will return the favor.

Like all of your marketing tools, a little planning, effort, energy, and financial investment can net huge results over time. The positive effects go way beyond the goodwill you provide to the cause and your community. Approached and handled correctly, networking will:

Gain valuable knowledge about how other businesses are run
Uncover opportunities and create connections that can enhance your business
Raise your positive profile in your community and among your peers
Increase your confidence
Provided valuable ideas from like-minded people

If you would like to start networking or make your networking work better, click here to see the 16 ideas and suggestions that can help you develop a successful networking marketing strategy.