Give Things Away and Increase Your Profits
August 10th, 2012
I have been reading (and highly recommend) the book “Free: How Today’s Smartest Businesses Profit by Giving Something for Nothing” by Chris Anderson, the editor of Wired Magazine. Despite mixed reviews and charges of plagiarism, I am a fan of both the book and the concept that it promotes. Practicing what it preaches, there is a FREE audio version of the book that can be obtained online (285MB). Using many historic marketing examples (such as the way that demand was created for Jell-O at the turn of the century through the distribution of recipe books that told people how they could use this new dessert), as well as current examples (such as how Google concentrates on providing dozens of free services that help to enhance their branding and insure that theirs is the – highly profitable – search engine of choice), the book presents a convincing argument for embracing the concept of businesses giving products or services away for free.
To be effective, what a business gives away must have genuine value.
Ideally, it will be something that the business’ competitors are not offering for free … or perhaps not even offering at any price. Some of my favorite local spots for breakfast offer pure maple syrup to accompany pancakes and similar breakfast entrees, while other restaurants (and even many upscale hotels) do not even have pure maple syrup available at a price. Guess which restaurants I patronize when going out for breakfast or brunch! Pure maple syrup is not inexpensive; however, it builds loyalty and introduces many people to a product that might be a new culinary experience. If the sugarhouse that supplies the product is named on the menu or a label on the container, they might very well realize a new source of business.
For another example, Lake Compounce – a popular family theme park in Connecticut – has offered its guests unlimited Pepsi-Cola products for several years now. That fact is promoted in all of the park’s advertising, and the products are probably provided to the park by Pepsi at either no charge or a serious discount in exchange for the promotional opportunities (and the fact that rival Coca-Cola products are probably not sold at the park.)
Everybody wins.
Consumers are getting something for free, the business benefits, and in many instances another business enjoys indirect benefits through cross-promotional opportunities.
Do your competitors charge for parking? Differentiate your business by offering free parking. It can be as simple as that! Since my company works with a large number of family campgrounds, let me start a list of suggestions for how campgrounds might profit by giving things away for free.
- Give away a free round of mini golf on Friday night. If campers enjoy the course, the are likely to return for paid play on Saturday. They are also likely to tell other campers how much they enjoyed the game, increasing paid usage by other guests. Casinos have been doing this for years, giving new guests free plays to get them using the slots.
- Do you have paddleboats or canoe rentals? They are not earning any income when they are tied up to you dock. If they are sitting unused early on a Saturday afternoon, offer free half-hour rentals on a first-come, first-served reservation basis during a limited time period. People who enjoy using your boats will likely pay to use them again. Other people will see campers out on your lake and may decide to give it a try themselves, making this almost a form of free advertising.
- Offer your guests free wi-fi. This is pretty widely available these days, putting a campground that charges for its wi-fi service at a competitive disadvantage.
- Offer free coffee in your store between specific hours in the morning. Guess what? Those people who come in for the free coffee will usually purchase other items. How about displaying the donuts and pastries right next to the free coffee, or offering premium blends and other beverages at full price?
- Does your store sell postcards? Why not give them away for free? A postcard typically includes an indirect testimonial – “Having a great time at XYZ Campground. Wish you were here!” – and is sent to friends or relatives who may also be campers. I would even supply the stamps for free!
What are your own ideas for how you can profit from free? As always, the only limits are your imagination and your desire to grow your business!
This post was written by Peter Pelland
Posted in Guerrilla Marketing, Marketing Strategies |
SmartPhone Apps or a Mobile-Friendly Site?
February 15th, 2012
There has been a growing debate recently among small businesses attempting to choose between the development of SmartPhone apps and mobile-friendly websites. Let me try to cut through the clutter with a bit of common sense.
Let’s start with a few statistics. At the end of 2011, there were 140 million SmartPhone subscriptions in the United States alone. This represents over 50% of mobile phone customers, and well over 50% of the users of handheld devices access the Internet using those devices on a daily basis. According to a study conducted on behalf of Morgan Stanley, it is projected that the volume of mobile Web access will overcome conventional desktop access by 2015 (if not sooner)!
According to some of the “strange, but true” statistics compiled by the Mobile Marketing Association, there are more people – worldwide – who own a cellphone than who own a toothbrush. Here are some perhaps more meaningful statistics provided by the same organization:
- 70% of all mobile searches result in action within 1 hour.
- Mobile coupons realize 10 times the redemption rate of conventional coupons.
- Although it takes the average person 90 minutes to respond to a typical e-mail, the same person responds to a text message within 90 seconds.
SmartPhone Usage Is All About Here and Now
Although the typical website provides a wealth of information that is carefully organized to be highly persuasive and carefully orchestrated to lead to a buying decision, SmartPhone users begin their search for information much further along in the decision-making process. SmartPhone users are dealing with a compact display screen and want to make a quick decision. It is not time to try to sell them (or force them to read) the Encyclopedia Britannica! You need a mobile website that is clean and gets to the point. It should be optimized for a small display and stripped of any non-essential text and graphics.
To start, look at your current website on your own SmartPhone. (If you are the last holdout on the planet who has not yet embraced the technology, ask a friend to show you your site on his or her phone.) Almost all websites will work on a handheld device, but some work much more effectively than others. Certain features are best avoided, such as the use of Flash (particularly in navigation), since that format is not supported by iPhones and iPads. You should also avoid framed content (generally sound advice for any website), streaming video, mouse-overs, and high-resolution graphics. In some instances, the amount of data on a page can exceed a phone’s memory capacity and prevent a page from loading. Sadly, a recent study has shown that 50% of small business owners have not taken the time to view their website on a handheld device, even though their Google Analytics may be showing that 10% of their visitors are accessing their website on a handheld device.
Now that you have viewed your website on a SmartPhone or other handheld device, what do you see? Chances are that you are seeing a totally functional website that is simply not doing its best to capitalize upon the characteristics of these devices. It doesn’t take long for a visitor to tire of the “pinch and zoom” style of surfing the Web, when they have to zoom in and scroll to read small text, and zoom out to navigate and to view graphics. Complicating matters, our thumbs are not nearly as precise as a computer mouse or our fingers on a keyboard. The bottom line is that a frustrated and inconvenienced visitor better really want what you have to offer because he is otherwise highly unlikely to become a customer. Your site is probably among the 97% of websites that were not considered mobile-friendly in early 2011.
The fact than only 3% of websites are mobile-friendly is not particularly surprising. In the overall scope of small businesses struggling to define their social media strategies, developing a mobile website is secondary in importance to the development of more pressing social media content such as a company’s Facebook business page. That said, an effective mobile presence is a very important secondary step for most small businesses. Going back to the statistic that 70% of all mobile searches result in action within 1 hour, it should be clear that you need to be an active player. The question involves which way to go.
For Most Small Businesses, the Answer is a
Mobile-friendly Version of their Primary Website
Here’s why. An app must have a practical use if you expect people to download it and then use it more than once. By far, the most popular apps are games, followed by mobile versions of established online services such as Facebook, Twitter, Skype, and Google Maps. Keep in mind that app development costs are significant. Although more than 10 billion apps were downloaded through 2010 – an average of 60 apps installed on each device – over a quarter of those are used only once. Users are also expected to download and install frequent updates, a non-issue with a mobile website that simply presents content that is updated on the server side, as needed. Beyond the development costs, plan on spending a tidy sum of money just to persuade people to download that app that they may use either infrequently or only once. The question you must ask is why users would use your app. An app makes perfect sense for businesses such as local television stations and newspapers, where they can present breaking news stories, weather forecasts, and sports scores. They also have the resources to promote downloads of their app. On the other hand, the “breaking news” of a more typical business might be better presented on Twitter or Facebook (which have their own SmartPhone apps).
Applications in the Campground Industry
My company is a major supplier of Web development services to the family camping industry, and many state campground associations are considering the development of both mobile-friendly sites and SmartPhone apps. I believe that a mobile-friendly site makes perfect sense; however, the development of dedicated apps for these associations makes little sense as I see it. I have already cited the expense of development (and don’t forget to double that expense because you will need to develop your app for both the iPhone and Android platforms) and the expense of promotion. Before one of these organizations takes that expensive plunge, there had better be a sound objective that will generate usage.
According to the recently released Special Report on Camping 2011, compiled by the Outdoor Foundation, over 50 percent of summer campers make their decisions more than a month in advance. Those making reservations for those trips book an average of 77 days in advance. Combine these statistics with the fact 70% of all mobile searches result in action within 1 hour, and you will begin to see the disconnect. SmartPhone users are generally looking to make a last-minute decision on where to camp this weekend, not weeks or months in advance. In the travel segment, this explains why some of the most popular mobile apps include Priceline, Kayak, TripAdvisor, Southwest Airlines, and Restaurant Finder. All of these apps are designed to alert flexible consumers of last-minute travel bargains. Of course, a campground association could present last-minute “unsold inventory” on their app, listing campsite and cabin vacancies prior to a holiday weekend, but the appeal will be limited. Most campers are loyal to a familiar campground or are at least looking to camp in a specific region of a state. Just because a site is available 100 miles away from their planned destination will not lead most people to be willing to make such a drastic change in their plans and preferences.
Regardless of your business or industry, before investing in a mobile app, give the concept a more careful analysis. Unlike that toy or power tool that you thought you couldn’t do without, but then ended up doing nothing more than taking up space in your garage, you are not going to be able to sell your SmartPhone apps at a yard sale or flea market. Unless there is a clear path to monetizing your investment, spend your money more wisely on something else.
This post was written by Peter Pelland
Posted in Marketing Strategies, Social Media, Uncategorized |
Friendly’s – A Sign of the Times or Simply Behind the Times?
October 12th, 2011
It came as no surprise when I learned of the Chapter 11 bankruptcy filing for Friendly Ice Cream Corporation last week. The company, which was once a local success story, was founded in Springfield, Massachusetts by brothers S. Prestley and Curtis Blake at the height of the Great Depression. From those humble beginnings, the company grew into a regional chain of over 500 restaurants, but neither the restaurants nor the company seemed capable of keeping up with changes in consumption patterns, despite belated efforts in that regard. Changes in corporate ownership in recent years compounded a general lack of focus, starting with the ill-fated purchase by Hershey Foods Corporation in 1979 and ending with current owners, Sun Capital Partners, Inc. What went wrong?
As a young child, I fondly recall trips to the Friendly’s restaurant located in the center of Chicopee, Massachusetts, not far from the company headquarters in Wilbraham. It was located in an early strip mall that was anchored by a W.T. Grant five and dime store that later closed and was replaced as an F.W. Woolworth store which, of course, closed soon afterward. This was a time when competition was sparse and the American public needed to pay little regard to dietary concerns. It was not a time when a restaurant chain needed to either continually evolve or be cushioned by sister properties. For example, if business should slide at Olive Garden, the slack can be absorbed by Red Lobster, LongHorn Steakhouse, or one of the other chains operated by Darden Restaurants. In recent years, the handwriting has been on the wall for Friendly’s.
• Problem 1: Lack of diversification. Sun Capital Partners is a Florida-based investment firm without a broad restaurant portfolio or an apparent interest in food that extends beyond profits.
• Problem 2: The menu. Consumer patterns and tastes in dining have evolved in recent years, with a growing emphasis on healthy menus. The concentration at Friendly’s has remained desserts. Most of the people who I know who dine out frequently probably skip the dessert course 9 out of 10 times. Why are they going to eat at a restaurant where the dessert is the featured course?
• Problem 3: The ice cream. At one time, Friendly’s was a premium brand of ice cream. As times changed, it simply became an ice cream brand with name recognition. It is not a Häagen-Dazs, a Ben & Jerry’s, or an Edy’s. It became just another store brand of ice cream, pumped with air, artificial color, artificial flavor, and high-fructose corn syrup.
• Problem 4: Advertising. A couple of years back, Friendly’s introduced one of the most annoying TV advertising campaigns in history. A 30-second ad was seen daily on local stations within Friendly’s market. I cannot even estimate how many times I either changed the channel or turned off my television within two seconds of recognizing the start of this ad. You be the judge, although I have warned you that this ad is extremely annoying: I Wanna Go to Friendly’s: Mom’s Turn!
Will Friendly’s recover? Can nostalgia come to its rescue? I doubt it. Like so many other brand names from the 1950s, Friendly’s is probably destined to fade into oblivion. You may miss the original double-dip 5-cent ice cream cone or the Friendly’s Fribble; however, like childhood, there is simply no return to the past.
This post was written by Peter Pelland
Posted in Marketing Strategies, Uncategorized |
How to Avoid Turning “Likes” Into “Unlikes”
June 22nd, 2011
In the social networking world, whether your business is keeping in touch with its customer base using Facebook, Twitter or e-mail marketing, your message is only as effective as the number of people who read it. One of your primary objectives, therefore, must be to build your base of likers, followers and subscribers. Concentrating on Facebook business pages, although it should not be looked upon as Armageddon, you should do your utmost to avoid forcing those folks who have “liked” your page from changing their minds and “unliking” the page, effectively cutting themselves off from your marketing messages. The best way to maintain your base of fans and followers is to understand the type of content that they want and expect to see, and to understand the predominant reasons that people choose to leave.
Let’s start by looking at what people want to see in your Facebook posts.
• First of all, they want to see information that either directly or indirectly relates to your business AND ties in to their interest in your business. Try to be the first to present this information. If the information that you post is exclusively presented to your Facebook fans, that is even better. If it includes a special offer, incentive or coupon, that is best yet. Do not post irrelevant information about Lady Gaga, just because you think that she is of popular interest (for some reason that I could never possibly understand). Stay focused, topical, and on target.
• Secondly, as much as we all like to be informed, people respond in a more positive manner when they are entertained. They are also more likely to share entertaining content, expanding your sphere of influence and growing your base of fans. If you can present useful information in an entertaining manner, you have hit upon a winning formula! You will know you are on target when your posts generate a high percentage of “likes” and – better yet – comments that generate a conversation between you and your fans … and among your fans.
• Next, people want to feel that they are part of an active “in” place to be. If they visit your page, and the latest post is three weeks old, your page appears to be unattended, uninteresting, and unlikeable. You must post content on a regular and ongoing basis. The same thing, incidentally, applies to groups on both Facebook and LinkedIn.
How to generate more “likes”.
Forget the nonsense about building a ball park in a corn field. You have to seek out your prospective fans and hold up the Welcome sign. Here are a few random tips:
• If you are willing to spend a little money on Facebook advertising (which, incidentally, can be very cost-effective!), run an ad campaign that targets Facebook users who like your product or service, like your competitors, or like related products, services, or organizations. Send them to a landing page that offers them a coupon or other incentive to want to stay in touch with your company.
• When logged in as your business page admin, find and “like” related pages. For example, if you run a local tourism business, you may “like” your local chamber of commerce, tourism agency, or an annual event. By doing so, you may now post comments on those pages that will be of interest to their fans while subtly promoting your own page and business. If you run a campground, and an upcoming local event draws visitors from beyond the local area, you may want to post the fact that you have cabins or sites available for that weekend.
• Contact admins of groups that are related to your page. Provide them with news that will be valuable for them to share with their readers. Because of the manner in which information is shared within groups, this may allow you to reach people who would otherwise not see your message.
• Promote your Facebook page on your website, but also promote your Facebook URL in itself. To do this effectively, you should have a Facebook vanity URL. When you create your business page, it will have a long, cryptic URL that ends in a series of 15 digits that nobody will ever remember. As long as your page has at least 25 “likes” (enough to convince Facebook of its authenticity), you are entitled to a Facebook vanity URL that will make your address memorable and easy to share. Go to:
http://www.facebook.com/username/.
• Cross-promote your content across the social media, but beware of overdoing it. A perfect example of how to do things right is the “People of Walmart” music video produced by Jessica Frech, a talented, Nashville-based college student, singer, songwriter, and filmmaker. Her video was released on May 5, 2011, quickly went viral, and had over 1,000,000 views in less than 2 weeks. Above all else, it was the quality of the production that earned its accolades. As I write this post, it has now gotten over 2,770,000 views and has generated its own series of challenge videos! If you have not seen this excellent music video, enjoy it now: http://www.youtube.com/watch?v=YvxNgdFeWqM. The end of each of Jessica’s videos includes a self-promotional message that encourages viewers to download her MP3 and to visit her Facebook page, which now has nearly 5,000 fans. Bear in mind that this represents less than 2/1,000 of 1% of her views on YouTube that have translated into Facebook page likes. Social media cross-promotion is challenging for even the best of sites!
How to avoid “unlikes”.
People can “unlike” a page on Facebook just as easily as they can “like” it. If your content fails to meet their expectations, they will do so.
![Reasons Users Unlike Brand On Facebook](http://www.marketingcharts.com/wp/wp-content/uploads/2011/02/exacttarget-brand-unliking-on-fb-feb11.gif)
As you can see, the # 1 reason that people unlike a page is because the company posted too frequently. One of the pages that I follow on Facebook is The David Wax Museum, a talented musical duo out of Boston. Last night, they posted 25 (yes 25!) consecutive “events” on their Facebook page, which monopolized quite a bit of real estate on my wall. This was not a good idea, and something that easily could have led people to unlike their page. (I was more tolerant, at least this first time.) Another way to wear out your welcome? Re-tweet to Facebook. At first glance, this may sound like a good idea that will help to broader your reach, but the fact is that the frequency of posts on Twitter and Facebook are entirely different. What is more than acceptable on Twitter totally crosses the line on Facebook.
The # 3 reason for unlikes is repetitive or boring content. Again, provide stimulating and useful content. One of the pages that I follow (but which disappoints me) is for Florida’s Natural Orange Juice. I want discount coupons for their product. Instead, I get pointless, self-serving posts such as “LIKE this if you need to go grocery shopping!” and “Do you call it Orange Juice or OJ?” Somebody on the company’s marketing staff is totally missing the point! The company’s posts also tie in with the # 5 and 6 reasons for unlikes: Did not offer enough deals, and posts too promotional.
Examine this chart and the survey results carefully, and then ask yourself whether your Facebook presence is working to generate “likes” (not “unlikes”) that translate into an ever-growing and loyal customer base. Treat your fans with respect, meet their expectations, and you will reap the rewards.
This post was written by Peter Pelland
Posted in Facebook Tips, Marketing Strategies, Social Media |
An Award Is an Award, or Is It?
June 11th, 2011
We all know that there are some very legitimate awards and competitions. Probably the first to come into mind are the Nobel Prizes. Since 1901, the Nobel Foundation, presents awards for achievements in physics, chemistry, physiology or medicine, literature, and peace. The Nobel Foundation has a nominating committee, and recipients receive a significant cash award (that many recipients, in turn, donate to charitable causes). There may be public disagreement regarding the worthiness of individual award recipients. For example, I find it incongruous for Henry Kissinger and Yasser Arafat to have been awarded the same Peace Prize as was far more deservedly presented to Mother Teresa and the Reverend Martin Luther King, Jr. That aside, the Nobel Prizes are very real. If you are a journalist, the Pulitzer Prize is the ultimate recognition. If you work in the film industry, it is an honor for your film to be presented in a major film festival from Cannes to Venice to Tribeca to Sundance, and one of the ultimate honors is to be presented an Academy Award.
Yes, there are many very legitimate awards; however, for every legitimate award, there are probably 100 scams, and scams breed on the Internet. The scams have been proliferating recently. If you are told that you or your business is being nominated for an award – or is being presented with an award – it is probably best to think twice before you run out to buy a new tuxedo or evening dress.
How do you know if an award is a scam?
Follow a few guidelines, and ask a few questions.
Who is presenting the award? Do a Google search for the award. As you are typing in the name of the alleged award, is Google suggesting that it be followed by the word “scam”? I remember being called a few years ago (not coincidentally, during an election cycle) and being told that I was a small business leader who had been selected to be part of a recognition ceremony to be held in Washington. Sounds great, doesn’t it? Not exactly. It turns out that the “award” had been concocted by a PAC (political action committee) that was designed to generate support (in other words, financial contributions) for the National Republican Party. (Anybody who knows me realizes that dog was barking up the wrong tree!) Ironically, I know people who fell for the “award” and took the trip to be exploited in Washington, DC.
Is there an entry fee? We received a direct mail piece a few weeks ago, inviting us to enter our work for the Davey Awards. The direct mail piece looked like it was designed by an untalented 9 year old, but that was just the first tell-tale sign that something was fishy. To enter the competition, you need to pay a $99.00 single entry fee, a $185.00 campaign entry fee, or $270.00 to enter a so-called integrated campaign, or go all out and pay $305.00 to enter a marketing effectiveness category. The “final entry deadline” is July 29, 2011; however, you can request a deadline extension (presumably as long as you are capable of paying the entry fee or fees). Adding insult to injury, if you win one of the dubious awards, you will be billed a $175.00 “acceptance fee” for your statuette and certificate. We also received a similar direct mail piece from the Telly Awards. According to their website, they received 14,000 entries last year from small agencies that were hoping to promote their businesses, each paying a minimum entry fee of $85.00. Do the math. That means that this questionable award generated at least $1,190,000.00 for its promoters! Want to, once again, add insult to injury? If you “win” one of these dubious awards, you will be automatically charged an additional $170.00 for your award statuette (probably plastic) and your certificate. I guess this is a bargain compared to the Davey Awards, since the minimum entry fee is slightly less, and you will pay $5.00 less for your statuette if you “win”. It is no surprise that, if you search for “Telly Awards scam” on Google, there are currently 24,400 search results. The Telly Awards and Davey Awards are not alone in preying upon start-up companies that are eager (or desperate) to broaden their exposure. They are joined by the Webby Awards and many, many other questionable enterprises that appear to be in the business of generating entry fees and selling statuettes. Do you think that anyone who wins an Emmy, Academy Award, or Grammy pays for their award?
Are winners asked to make purchases? In addition to obvious scams like the Telly Awards statuettes and the RNC PAC, there are many other so-called “awards” where the winners are presented with the opportunity to spend money with the award presenters. Among my favorites are the various Who’s Who directories. Do not be thrown off by what appears to be a recognizable and once-respected name. For years, I have been asked to validate my nomination to “Who’s Who among Executives and Professionals”. The congratulatory letters read, “The Publishing Committee selected you as a potential candidate based not only upon your current standing, but focusing as well on criteria from executive and professional directories, associations, and trade journals. Given your background, the Director believes your profile makes a fitting addition to our publication. There is no fee nor obligation to be listed. As we are working off of secondary sources, we must receive verification from you that your profile is accurate. After receiving verification, we will validate your registry listing within seven business days. Once finalized, your listing will share prominent registry space with thousands of fellow accomplished individuals across the globe, each representing accomplishment within their own geographical area.”
I do not know a single successful businessperson who needs to be included in a directory of this nature. Despite what the promoters say, there will be a fee to be listed and, of course, you will be presented with the opportunity to purchase one or more of the (very expensive) printed directories. As useless as these directories are in these days of online reference sources, even public library reference departments no longer purchase these worthless volumes. About the only buyers are the same suckers who are proud to be listed therein. Go to Wikipedia to learn more about various Who’s Who scams. There are also 21,100,000 search results for the term “Who’s Who scam” on Google.
Does the award require a reciprocal link to the award website? If you remember the early days of the World Wide Web, there were an abundance of website awards that stroked the egos of early webmasters. Others attempted to enhance the SEO of the award-winning sites. In fact, in its early days, my own company presented the “Campground of the Month” awards. These were only presented to our clients, and they helped to enhance the recipient’s search engine ranking “back in the day”. We discontinued this site years ago. Today, if you search for “website awards” on Google, there are 350,000,000 search results. Most of these awards are totally worthless, randomly selecting “winners” who are encouraged to “proudly display” the award badge on their website, linking it back to the award website. Basically, these award sites are link farms that are trying to enhance their own SEO through a network of links. As time goes on, Google and the other search engine robots have gotten much better at ignoring these sites – and even penalizing the sites that are linked to or from them.
Is the award organizer the primary recipient of value from the award? Many regional newspapers, magazines, and radio and television stations present annual “Best Of” awards, covering a wide range of categories. The categories all happen to consist of potential advertisers, and the awards are almost universally run by the advertising departments of the publications or broadcast organizations. The awards that are compiled based upon the votes of readers or viewers at least carry a bit of credibility. Even in those instances, the voting process may require a visit to the sponsor’s website (and all of its accompanying self-promotional messages). In almost every instance, the business that is presenting the awards will supply certificates that winners are encouraged to display at their places of business, badges that may be displayed on their websites, and award icons that may be added to their print advertising. All of that awareness does more to promote the businesses that are presenting the awards than the award recipients themselves. Is it any surprise that these awards have been concocted by advertising departments, and that winners are encouraged to buy advertising to help to promote their awards? This type of award is not an outright scam, but I would caution recipients against being overly manipulated in the process of engaging in their own part of the self-promotion.
Is the award presenter and the award recipient the same organization? There are also many thinly-veiled attempts to cross-promote one’s business ventures by having one organization present an “award” to what is essentially another arm of the same organization. This is somewhat along the lines of having General Motors present an award to its Buick division as the “Automobile Manufacturer of the Year”. Nobody would fall for that. Or would they?
Let the Winner Beware
The bottom line is that we all like to be recognized for our efforts, but beware of being exploited by people who prey upon that fact. At my company, our efforts are acknowledged on a daily basis by the success that we generate on behalf of our clients. This is the best recognition possible … and all that we need.
This post was written by Peter Pelland
Posted in Marketing Strategies, Scams, SEO & Organic Search, Site Submission Resources, Uncategorized |
The Multiple Powers of Facebook Comments
June 3rd, 2011
Presuming that your business has a Facebook Business Page – as it should – there are some powerful tools at your disposal. One of the most powerful of these is your ability to comment and respond to comments posted by others. One of your key objectives should always be to build your number of followers (you may prefer to refer to them as “fans” or “likes”), particularly followers who have a true interest in your product or service and who will be likely to engage in ongoing conversations. These conversations will take the form of posts, allowing you to further a rapport with your followers in a manner that enhances your marketing efforts in a very subtle yet highly effective manner.
Responding to Posts
Your settings will allow you to determine whether or not you want to allow others to post to your page. Without exception, you want to allow people to post to your page. What happens when somebody who has “liked” your page posts a negative or otherwise unflattering comment? Let me present a few rules of thumb:
1) Use of profanity: In almost all instances, if somebody posts a comment that contains profanity, simply delete the comment. If you leave it there, you are sending a message to others that it is acceptable to follow suit, and you will be presenting your business in an unfavorable light. If you go into your page settings, you can keep this under control without your constant vigilance. Go to Edit Page > Manage Permissions > Profanity Block List, then choose your settings. The options are None, Medium, or Strong. You can also create a moderation block list that allows you to enter keywords that will be blacklisted from posts.
2) Criticisms of your business: In almost all instances, if somebody posts an intelligently presented criticism – even if you vehemently disagree with the criticism – leave the post. Particularly if your page is new or has relatively few followers, you must jump in and respond to the comment as quickly as possible. Remember that you are not trying to engage in an argument. You want to put out – not add fuel to – a fire. Try to see things from the other person’s perspective and use the criticism as a learning experience. You may want to respond with some sort of apology or admission of guilt, even if you were not directly responsible or involved with the incident behind the complaint. In most instances, the fact that you have responded in a prompt and professional manner will defuse a situation which could otherwise snowball out of control. If your page has a large number of followers, it is likely that your followers will jump in and come to your defense, and they are in a position to more strongly rebut the initial comment without the appearance of being defensive.
3) Comments that “cross the line” or a simply vengeful or retaliatory in nature:One of our clients was recently attacked on their Facebook business page by a group of people who had been guests at the client’s campground over Memorial Day weekend. The campers were disruptive, showed no respect for quiet hours, refused to comply with the requests of the park’s security personnel, and had a barking dog. Clearly, these were the type of people that nobody wants at a campground because they interfere with everyone else’s enjoyment. Apparently these folks took exception with being expected to follow reasonable standards of behavior. When they returned home, they began their online assault, “liking” the campground’s Facebook business page specifically so that they could post to its wall. Their comments were highly derogatory, referring to campers who abide by rules as “idiots”, using a mild obscenity, and naming a competing campground as a better place to stay. They continued a string of comments (that were only authored among themselves), with the clear intention of “getting back” at the business. Under these circumstances, the comments were deleted and the users were banned from being able to post. (To do so, simply hover over the posts on a page where you are an admin, then click on the “x” in the upper right of the post.) Had the posts been less inflammatory, it would have been preferable to let them remain, but this was clearly an attack that needed to be nipped in the bud.
4) Spam posts: Delete these immediately, and ban the user from posting to your page.
Responding to Controversy
When the posts were deleted from the page of the client who came under attack by disgruntled campers, the client posted the following message:
Some of the things that our campers truly appreciate are the quiet hours, dog policies, and basic rules of behavior that we enforce, when needed, in order to insure that everybody will have a peaceful and enjoyable camping experience. At (our park), we do everything possible to insure a perfect combination of fun-filled days and quiet nights, without disruption from another camper.
This post received several favorable comments and was “liked” by nearly 20% of the park’s followers. End of controversy! Feel free to paraphrase it if you find yourself in a similar situation.
Posting Comments to Other Business Pages
The situation outlined in the previous section demonstrates the importance of posting comments to your own page; however, are you taking advantage of the opportunity to post comments on other Facebook business pages? Early in the Spring of 2011, Facebook changed its policies in this regard and now allows business pages to “like” other business pages. What does this mean for you? It means that you can broaden your reach to expanded networks of Facebook users who are likely to have an interest in your product or service. For example, let’s say that there is a major event in your area that draws in visitors from beyond the local area. If you are running a campground or bed & breakfast that is located near that venue, you could post the availability of campsites or rooms during the event dates. Sharing useful information in this manner represents the use of Facebook networking at its best. (If you are running Facebook ads, you could also run specific ads in advance of the event, targeting Facebook users who have “liked” either the event or the types of interests that are related to the event.)
Keeping Yourself Informed
As an administrator (admin) of your account, you should receive Facebook Alerts – in real time – anytime anybody posts to your page. Read these as quickly as they arrive, and respond to them in the appropriate manner. Use the tips in this post as your guidelines to success!
This post was written by Peter Pelland
Posted in Facebook Tips, Social Media |
Problems with Merchant Account Services Provider, Sage Payment Solutions
March 21st, 2011
My company works with several hundred small businesses, providing a wide range of Internet and printing-related services. We have built online commerce websites for many of our clients. In some instances, these small businesses have not made arrangements to process credit card transactions or are seeking to make a change in their credit card merchant services provider. After a bad experience with another company, my research led me to Sage Payment Solutions, a division of Harris Bank, in late March of 2009. I set up an account for my own company and agreed to provide referrals to clients who might be in need of these services. The referral agreement that I signed is dated March 27, 2009. I never should have signed that agreement, and the working relationship with Sage proved to be even worse than my bad experience with the previous merchant services provider.
Soon after I had made the first two or three referrals, I began to realize that Divina A. Rutherford, the “senior account executive” (called a “referral agent” on the agreement) assigned to our account at Sage Payment Solutions, was using high-pressure sales techniques and attempting to sell our clients services that they did not need, a practice which was totally inconsistent with our company’s standards. At that point, I stopped referring our clients to Sage Payment Solutions and found another merchant services provider for my own company’s credit card transactions.
Unfortunately, once you sign an agreement with Sage Payment Solutions, it is very difficult to terminate that agreement. Time and again, over the course of these two years, I have had ACH debits from our bank account for specific services which we were not utilizing and which I had not authorized. I had to contact Sage Payment Solutions on several occasions to get these debits credited back to our account. Each time, I would explain that I would like to end our agreement; however, entering into an agreement with Sage Payment Solutions is akin to being held hostage.
On March 7, 2011, I received a statement in the mail from Sage Payment Solutions with a charge of $11.35 that was deducted from our account. This charge consisted of $9.25 for an “Annual 6050W Tax Filing” and $2.10 for “6050W Monthly Reporting”. This was the straw that broke the camel’s back. I contacted Ms. Rutherford and James Cummings, the Director of Project Management & Compliance working out of Sage’s offices in Lawrenceville, Georgia, who had assisted me in previous instances. My only response came from Ms. Rutherford, who wrote, “The charges for the IRS annual 6050W filing is (sic) required by the IRS from reporting entities to report payment card transactions and third party network transactions to the IRS for each calendar year beginning January 1,2011. As a result of this, we, Sage will be required to file an annual information return with the IRS and provide merchant payee with a corresponding form 1099-K, reporting monthly and annual gross sales, thus we have also the monthly reporting fee of $2.10. Again, this is a requirement from IRS and we are just in compliance. All processors not only us are required to do so. Thank you.” I replied that I understood the new IRS filing requirements; however, the IRS does not require that any fees be charged for the preparation and filing of those forms. I pointed out that I supply my company’s independent contractors with 1099-MISC forms, and that I never heard of a company attempting to charge a fee for doing so. I made it very clear that I wanted to cancel our account (that we have not used in nearly two years) and terminate our agreement.
I was sent a merchant account cancellation request form, which I faxed back to Sage Payment Solutions on March 9, 2011. The single-page form included two instances of language which referenced termination fees. I crossed out and initialed both occurrences of that language. Nobody subsequently contacted me with any indication that there was any sort of problem with those revisions, which were an essential part of the document that I signed. A week later, a $600.00 termination fee was debited from our bank account by Sage Payment Solutions. This is a serious matter and a charge that was made, not only without my authorization, but contrary to my specific intention. I called this to the attention of Divina Rutherford and James Cummings in an e-mail on March 16, 2011, clearly expecting to be reimbursed for this fraudulent charge. Other than an e-mail read receipt, there has been no response from either Ms. Rutherford or Mr. Cummings.
I cannot overemphasize my warning to anybody who may be considering doing business with Sage Payment Solutions. Based upon my experience, and the experience of others, you will get burned. Visit the following online resources, and you will discover that there have been instances upon instances of bad experiences with Sage Payment Solutions, with almost all complaints documenting excessive termination fees. Start with the Better Business Bureau, where Sage Payment Solutions has an “F” Rating … the worst possible business rating, based upon “failure to respond to 5 complaints”. I have filed my own complaint with the BBB of Metro Washington DC & Eastern Pennsylvania.
Another website, called “Rate Credit Card Processing Services”, includes 5 customer reviews for Sage Payment Solutions. Four of the five reviews gave the company a “1 star” (lowest possible) rating, citing unauthorized charges, difficulty in closing accounts, automatic renewals, and “early termination” fees ranging from $525.00 to $800.00. Can you imagine the average business attempting to charge a customer a “termination fee” of several hundred dollars because they wanted to take their business elsewhere? This is absurd!
The popular “Complaints Board” website shows 3 recent complaints against Sage Payment Solutions, citing unauthorized charges (including a $550.00 “cancellation fee”) and questionable practices. The complaints against Sage Payment Solutions even go international, with the Indian Consumer Complaints Forum posting a recent complaint for questionable practices.
I sincerely apologize to any clients who were referred to Sage Payment Solutions in early 2009. To anyone else, at the risk of repeating myself, I can only suggest avoiding Sage Payment Solutions under any and all circumstances!
April 2011 Follow-Up: After this post and the filing of a complaint with the appropriate office of the Better Business Bureau, Sage Payment Solutions has refunded the fraudulent charges that I have addressed. I appreciate the refunds; however, it would be nice if the company routinely did the right thing without requiring this type of pressure.
This post was written by Peter Pelland
Posted in Uncategorized |
Understanding Forgotten Rules of Clarity in Communications
March 6th, 2011
The most successful businesses these days are those that are able to communicate with their customers in real-time or near real-time. Often, one of the accompanying risks is a tendency to hit the “send” or “submit” button too quickly, prior to proofreading or taking a few moments to determine whether a message may be subject to potential misinterpretation or may be less than professional in appearance. When you are communicating with a customer at any level, you are either directly or indirectly representing your business, whether your business is a one-man show or a large corporation. To avoid disaster, always spell-check your work, but never put your total trust in the spell-check process. Spell-checkers will not catch grammatical errors, most punctuation errors, use of an incorrect word or phrase, use of most language which is inappropriate in a professional environment, or the use of language which is basically unclear. An effective message must be crystal clear and not be subject to misinterpretation. Review your message, not from the writer’s perspective, but from the reader’s perspective. You already know what you are trying to say, but what you are trying to say must be accurately conveyed to another person. In a face-to-face setting, gestures and facial expressions can serve to clarify a message and provide instant visual feedback in the event of miscommunication, but an online message does not have that advantage. When you review an unsent message from a reader’s perspective, you may be in for some surprises, leading to close calls that can be avoided.
Equally important to the clarity of your message is the content of your message. There is a difference between conversational language and the written word. Unfortunately, that difference has gotten increasingly blurred in recent years. Many of us are losing our ability to effectively communicate. It has been fifty years, and I would venture to say that we may never again witness political oratory on a par with President John F. Kennedy’s inaugural address. On the same token, although we are unfortunately no longer a nation of readers, it is impossible to read a newspaper, book or periodical these days and not find grammatical and typographical errors throughout. If standards have slipped for our professional writers and public speakers, where is our inspiration to be found? For a combination of a variety of reasons, our overall communications skills have been seriously degraded, perhaps the result of an overall lack of disciplined learning, compounded by exposure to an “anything is acceptable” use of language that is prevalent in our mass media.
First and foremost, the language of effective business communication should not be confused with the language that has gained popular acceptance in casual conversation. Any intelligent person understands that there is no place for profanity in business communications. In a more perfect world, most people would consider that same profanity to also be an inappropriate component in their conversational language. Unfortunately, familiarity breeds acceptance. Profanity is an obvious example that I have used to make my point; however, I would like to offer a list of overused words, idioms, and phrases that I would like to see banished from our language, in the interest of clarifying communications.
1. “How come” is an idiom that is usually used at the beginning of a longer question. Usually, the word “why” will be a perfect substitute. Beaver Cleaver used the term “how come” in every episode of “Leave It to Beaver”. Miss Canfield and Miss Landers were probably both appalled.
2. “Make sure” is an idiom that is riding a wave of popularity these days, since it is used in almost every unscripted sentence that comes out of the mouth of President Barack Obama or anyone else in the White House. (Even his last State of the Union address, though carefully scripted, contained five uses of “make sure”.) “Make sure” has become the post-election equivalent of the word “change” from back in the campaign. Even proper language that is overused loses its effectiveness.
3. Additional idioms that we could do without are “a lot” (which some people think is actually a word, spelled “alot”), “find out”, “right away”, “take off” (as a synonym for “leave”), “figure out”, “make off with” (as a synonym for “steal”), and “all the time” (almost always an exaggeration.)
4. The phrases “to be honest” and “to tell the truth”, each of which implies that the speaker is otherwise lying.
5. Single words that are used as complete sentences, typically an adverb that is used in response to another person’s statement. The worst offender is “exactly”, generally used in conversation and typically without pronouncing the letter “t”. Other offenders include “whatever”, “precisely”, and “seriously”. I believe that this use of language originated with girls in middle school, then infected the general population.
6. Phrases that are used repeatedly in conversation, as reactions to basically anything. The worst offender by far is “Oh my God!”
7. Words that are used as verbal substitutes for stammering, most notably “like” and “you know”, can only serve to distract and annoy the person who must endure the other end of the conversation.
8. Starting sentences with the word “so” or a conjunction, most typically “and”, or ending a sentence with a preposition.
9. Use of slang in a professional setting. For example, news reporters who use the term “cops” instead of the word “police”.
10. My final complaint (today) is slightly off-topic: The use of unnecessary gestures in spoken conversation. Some people’s hands just seem to be continually in motion. The most annoying gestures are pointing and the “flip phone” sign language symbol that some people think is a necessary accompaniment to any statement involving a telephone.
Some people will argue that times have changed and that language continually evolves. That may be true, but the ability to effectively communicate will only find itself in ever-greater demand. Without basic rules and guidelines, there will ultimately be little distinction between language and noise.
This post was written by Peter Pelland
Posted in Marketing Strategies |
Rebranding A Company and Doing It Wrong
January 16th, 2011
What do you do if you’re Hyundai, and you want to introduce a luxury automobile brand? Nissan did it with Infiniti, Honda did it with Acura, and Toyota did it with Lexus. Every brand with an “economy” perception eventually wants the prestige and profits to be earned in a more upscale market. Rarely does it work in the other direction, where a luxury brand can successfully appeal to the masses without disengaging its core clientele. Hyundai, in the case of the automotive division of South Korea’s industrial behemoth, has a reputation for building highly affordable, stylish, economy cars that have established a growing niche in the U.S. market. What happens when Hyundai decides that it wants to sell a new line of vehicles with an MSRP that starts at $58,000? For starters, it had better do things right.
It is important to get attention and to create a buzz among consumers and, in this case, auto enthusiasts. In a new advertising campaign under the theme of “Rethink Everything”, Hyundai attempts to convince us that its commitment to technology is unsurpassed. The fact that the Equus owner’s manual comes on an iPad, rather than a printed booklet, is an attention-grabber and a brilliant idea, but perhaps the icon of an old-fashioned incandescent light bulb above the headline is a warning for the consumer to look a bit more closely.
How much research did Hyundai undertake before launching the new brand? Good question.
No company with any sense of intelligence will choose a brand name unless it is unique, memorable, and translates internationally. Consider the Chevrolet Nova, produced from the early 1960s into the late 1970s. Whether fact or urban legend, it has been said that the Chevy Nova was a failure in Latin American markets because the name literally translated into “it does not go” in Spanish. Today, when the Web address of a business is essentially its second brand name, it is equally important that a name is not already in use by another company (an invitation for a trademark infringement lawsuit) and that the domain name comprised of that brand name plus “dot com” is readily available. In this case, Hyundai appears to have blown it, big time. Visit equus.comto learn about Equus Products, Inc., a company that, ironically, produces OEM automotive products and is totally unrelated to Hyundai. The fact that equus.com is already in use by another company is only the beginning of Hyundai’s problems when it comes to branding online.
Because of the company’s lack of adequate research, a type-in for equus.com will not bring a potential customer to Hyundai’s Equus website. Big mistake. Type-ins of known products or brand names account for as much as 20% of website traffic. Instead, the URL for Hyundai’s Equus product line is http://equus.hyundai.com/, a subdomain of the Hyundai brand. Could you imagine the only way of reaching Lexus online being a subdomain of Toyota? Worse yet, visit the Flash-driven website, and prepare for Adobe Flash Player 10 to crash and the latest version of Firefox to lock up. Click on a navigational link on this English language website, and (until your browser crashes) you will find that both the mouseovers and the subnavigational links are in Korean. Alternately, there is a folder on the Hyundai Motor America website at http://www.hyundaiusa.com/equus/. This is where it becomes clear that Hyundai is not introducing a new product line, but merely introducing a new model that will be sold within existing Hyundai dealerships … a certain formula for failure. The brand is intended to compete with the BMW 7 Series, Mercedes S-Class, Audi A8, and Lexus LS, among others. How many Mercedes or BMW owners are going to set foot in a Hyundai dealership? Sorry, but the answer is zero. In fairness, this looks like a nice car with some impression features and engineering, but you simply cannot blow the marketing if you are trying to rebrand an economy image and sell a car made in South Korea at a starting price of $58,000. Product reviews? Mixed at best.
Perhaps the most important reviews these days are the customer comments that may be found in social media posts. How is Hyundai doing in this regard? You decide. There is a Hyundai Equus Facebook page at http://www.facebook.com/hyundaiequus. That, in itself, is good; however, anybody who knows how Facebook works understands that it is not a vehicle for sales pitches but rather for building relationships with your customers. Visit the Facebook page and you will see the majority of Wall posts are from Hyundai dealers trying to get people into their showrooms, a terribly misguided approach.
It is fortunate that Hyundai is an enormous corporation with money to burn. Every indication that I can see tells me that, from a marketing perspective, they are spending a whole lot of money to shoot themselves in the foot. My advice to my small business readers is to learn from Hyundai’s mistakes.
This post was written by Peter Pelland
Posted in Marketing Strategies |
Don’t Waste Time Fishing in an Unproductive Pond
August 15th, 2010
Lots of fishermen tend to waste time fishing in unproductive waters just because of “the big one” that legend holds was caught and got away 25 years ago. If the legend is true, the time that has passed far exceeds the life expectancy of the fish, even if it wasn’t caught by another angler in the interim. Then, of course, the pond itself could have died, the victim of acid rain, eutrophication, or another type of pollution. The same logic applies to advertising buys. In simple terms, times have changed.
Just as a successful fisherman will spend time fishing in a productive habitat, any advertiser should focus ad buys on media outlets where prospective buyers spend their time. A Harris Interactive survey released in late 2009 found that 80% of U.S. adults are Internet users, and these users spend an average of 13 hours per week online. Of that time, the number of hours on social networking sites (the vast majority of which is on Facebook) now exceeds the amount of time either reading e-mail or conducting the (previously) conventional “search and surf” routine. Another recently released report, the American Time Use Survey issued by the United States Department of Labor’s Bureau of Labor Statistics, shows that the average adult American spends over 19 hours per week watching television. Those numbers are actually in decline, primarily cannibalized by Internet usage (where, ironically, a significant volume of television programming is now being viewed online). With readership levels down, recent statistics have also shown that the average American who reads a daily newspaper spends only 15 minutes per day (but up to 90 minutes on Sundays). Similarly, and with circulations spiraling downward, the average reader spends a scant 45 minutes reading the average magazine. Keep in mind that your target demographics (strongly considering factors such as age) will strongly skew any of the numbers which may be applicable in your particular instance. For example, newspaper readership has been in steady decline across all population segments, but the amount of time spent by younger people reading newspapers is virtually nonexistent. At the same time, it is fair to say that cell phone usage and text messaging is skyrocketing, particularly among those same younger demographics that eschew newspapers.
Comprehensive and current statistics on how we spend our time are not easy to find. If the information was easily accessible, it would probably be outdated as soon as it was published. We can sometimes only work with bits and pieces and get a general feeling for overall trends. For a general feeling with a comical spin and graphic effects, I would suggest a visit to the “Life and Time Spent by the Average Joe Blow” post on the Canadian blog, “Life in the Fast Lane”. (Seriously, check out that blog, run by Fast Lane Transport, Ltd. in Edmonton, Alberta, a freight trucking company serving Canada’s four western provinces.) In general, if you are trying to reach a mass market but cannot afford (or afford to wait for) the Super Bowl, which of the following makes more sense: Online advertising (where 80% of adults are spending 13 hours per week) or direct mail (where we each probably spend an average of 3 minutes per day deciding what gets a second glance and what goes into the recycling bin unopened)? Advertising over the years has relied upon the type of inferential data which has only proven to be slightly better than this type of generalization. Have you ever noticed how many erectile dysfunction commercials have text that reads, “See our ad in Golf Magazine”? The presumption, no doubt correct and based upon expensive market research, is that the demographics of the two markets overlap. With the advent of social media, where users volunteer and share a wealth of demographic information, we now have access to the type of real data which allows target marketing to go beyond inference and finally live up to its real name.
Advertising generally falls into one of two major categories: Advertising which is intended to fulfill an existing demand, and advertising which is intended to create a demand. Brand advertising is a textbook example of the latter, accounting for 80% of the two-way split. Ideally, your message should be designed to either reach out to consumers who are willing to embrace a new or improved product or service (now most typically as the result of viral marketing and social networking), or effectively introduce yourself to consumers who are already sold on your product or service but are unfamiliar with your company or brand name. When using social networking as a viral marketing tool, it is important for an advertiser to remember that they not be controlling the conversation but simply joining the conversation. Although it may seem contrary to the old rules of the game, it is best to sit back and allow the satisfied users of your product or service to be your most effective spokespersons.
Once you find the right pond, you will be pleased to discover that it is loaded with fish, and those fish are on a feeding frenzy!
This post was written by Peter Pelland
Posted in Guerrilla Marketing |
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