Have you heard of “cashback shopping”? If you have heard of Rakuten (formerly Ebates), then you have experienced the leading example of business to consumer (B2C) cashback shopping. In B2C cash back shopping, the cashback is paid directly to the shopper as an incentive to buy. Why? It is much less expensive to sell an item on-line than in a brick and mortar store. Online retailers take a portion of these savings and invest them in cashback advertising to bring more shoppers into their on-line stores and encourage on-line vs. in-store purchases.
This same cashback shopping concept can be also be applied in a business to business (B2B) environment. The biggest drawback of B2C cashback is that shoppers are reluctant to provide their personal contact information to someone they do not know, in this case, Rakuten. In the B2B environment, shoppers already have a relationship with the sponsoring organization. The sponsor might be their bank, church, favorite restaurant, or any number of other organizations. The key is for the sponsoring organization to have a trusted relationship with the shopper. In many cases, the sponsor may already have significant personal information on the shopper and be sending the shopper regular communications.
Most organizations with ten thousand plus (10,000+) patrons can benefit through adopting cashback shopping as a component of their on-going promotion program. The more potential shoppers, the greater the benefit. The cashback that flows to the organization can be utilized as a donation (for churches and charities), to pay for future purchases (retailers), and to pay a portion of the price of current purchases (grocery stores, insurance providers, and power companies). Most sponsors keep at least a portion of the cashback to pay expenses and as accretive to profit.
The benefit to the organization can be quite substantial. For example, a charitable organization that is keeping 100% of cashback as donations can expect to receive roughly $1 million per 10,000 shoppers. A commercial business will receive the same amount but will likely pass 80% or more on to the shopper in one form or another. Therefore, a commercial operation keeping 20% of cashback will be retaining roughly $200,000 per 10,000 shoppers.
To learn more about cashback shopping and its potential for your organization, contact Philip A. Davis at pdavishr@comcast.net or 678-977-5578.
Thank you for visiting our blog.
Jim Weber – Managing Partner, ITB Partners
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We have reached the halfway point for 2020, which may be the strangest year of my life. Your’s too, most likely. Working through the challenges presented by Covid-19 is certainly remarkable. Few if anyone I know, has ever experienced a pandemic of this nature or the measures required to moderate its spread. And then, the follow-on weeks of civil unrest. Yes, this year has been surreal.
The sudden transition from a booming economy to a voluntary lockdown has been jarring. Overnight, we have gone from historically low to depression-level unemployment. The relief provided by the Federal Government is unprecedented. It has helped employers and employees survive the lockdown. To some extent, however, it may have been counterproductive as minimum wage earners lack the incentive to return to work before their benefits expire. Nevertheless, many furloughed at the beginning of ‘shelter in place,’ lost their jobs as employers face the realities of survival. Some of these people have reached out to me for help.
The underlying structure of the economy is still intact.
Even though many jobs are gone, at least temporarily, the underlying structure of the economy is still intact. This has not been a traditional recession where a bubble in the economy collapses. It is closer to a natural disaster save for the destruction of infrastructure. The manufacturing, supply chain, logistics network has suffered a minimal impact. The financial services sector has fared well. The Service Sector has been hardest hit as the need for social distancing directly impacts their business model. By design, the Service Sector is based on close personal contact. Even so, the road back to prosperity has not been closed. The level of employment is rapidly improving. There is a reason for guarded optimism.
My neighbor is a good case study. He was furloughed from a senior-level construction and development position for a major restaurant brand. By the end of the lockdown, his position was eliminated as his employer decided to reduce their development plans for 2020.
The good news is that he is a licensed Architect. He has other options. In fact, he has landed freelance work with architectural firms. Additionally, he has found that positions, like the one he lost, are available locally.
I have received a significant uptick in calls from job seekers requiring help. A few have not had to look for a job for many years and want to understand the changes in the recruiting and selection process. Others are looking to become more competitive by improving their job search skills, resume, and other collateral material. Most find the process confusing. They seek clarity and direction.
Questions for The Job Seeker:
How is Your Situational awareness?
Are you savvy about the labor market dynamics?
Do you have a full appreciation for your options?
Do you understand the needs of your audience, employer risk?
Do you think and behave like a brand? Be the product/brand!
How are your communication skills?
Do you understand how to navigate interview traps and pitfalls?
Situational Awareness:
The first step in the job search process is to gain situational awareness. Job seekers face a dynamic market, especially for senior management. Employers are working mightily to remain relevant. They face intense pressure from traditional and disruptive competition. Even the strongest brands can become distracted by mergers, acquisitions, downsizing, right-sizing, productivity improvement initiatives, etc. The newest challenge is, of course, a heightened concern for employers’ ability to survive the devastating impact of the pandemic driven lock-down. Brands must not only survive the lock-down, they must learn to thrive in an environment requiring a greater focus on sanitation and hygiene. They are forced to adapt, in real-time, as humanity suffers the first wave of the Covid-19 pandemic. Employers have cause to substitute technology for human capital. Many companies will never reopen. This is not all bad. Successful companies will become stronger, increasing demand for employees.
Conclusions and Recommendations:
What is your evaluation of the situation? Are you working in an industry sector more, or less impacted by the virus? Are your skills still in demand? Do you need new skills or a tune-up? What opportunities have been revealed? How should you adjust your strategy? Relevancy is a fundamental issue for job seekers. If you need help, seek out professionals who understand the situation. Remember, you are the product. Be the product! You must adjust and adapt to the “Latest New Normal.”
I will explore the remainder of these challenges in the next few weeks.
Thank you for visiting our blog.
Jim Weber – Managing Partner, ITB Partners
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Like the eye of a hurricane, businesses raked by the leading edge of the COVID-19 pandemic are now taking a cautious look outside. Though the winds have subsided, and it’s tempting to think that the worst is over, the eye simply gives us a chance to prepare for what’s left to come. But the time is now to begin planning for the rebound.
If you withstood the worst of the impacts of the pandemic so far, you likely have accepted that the storm was coming, and had battened down your hatches (or at least applied for PPP funding to keep vestiges of your business afloat). Now, as we can start to imagine a future, it’s critical to have your plan in place when the rebound hits.
For those who haven’t been willing to consider the details needed in your post-pandemic recovery plan – or simply weren’t willing to “go there” – now is the time to plan for your rebound.
The public has been released from their quarantine in many states and other states are scheduled to open. Research indicates consumers will be ready to shop and dine. The world into which they will venture will indeed be changed. Will their appetite for dining with you also be transformed?
In my view, planning for the rebound – the re-grand-opening into the brave new world – will require a three-step planning process:
An accurate assessment of NOW – Analysis and cost-cutting based on where you are today, and how you’ll conduct business until social distancing is no longer needed;
Planning for NEAR – Executing on pivots or changes to your offerings to help your cash flow to improve your survivability, and;
Plan NEXT – Stop random acts of marketing and follow the 12-step approach that follows “The Growth Gears,” a strategic marketing book authored by Art Saxby and Pete Hayes, to plan for your recovery.
Where have your customers gone? Are they still in need of your unique brand of hospitality? Have you maintained your competitive edge? Can you keep your employees active and engaged in the business? Many businesses are grappling with these and other questions, as they fight for survival in an apocalyptic present, and uncertain future. Here are four tips to consider when planning for the rebound and assessing your business:
Review costs
Most people have already done this – things like canceling recurring services that are simply irrelevant, asking for payment terms on necessary services, and in general, having a series of difficult conversations about labor, supplies, and rent. Job No. 1 is to understand your cash flow – and factors influencing it.
Review competition
What is your competition doing now? How have they pivoted? Did they reduce hours of operation? Were they forced to close? Is there something you could do with your local competitors to encourage customers to order takeout and delivery? For example, an entity called “The Great American Takeout” has formed, and has encouraged customers via social media posts to takeout food to support restaurants every Tuesday since March 24.
Reconnect with your employees
Did you furlough or lay anybody off? With the crew that is left, what has the pandemic done to morale? How are you? Now is the time for frequent communication with your current and past employees. To prepare for reopening, you should prepare a plan to re-hire and train employees.
Reassign tasks
To keep employees on the payroll (assuming you have sales because you are offering curbside pick-up or delivery), reassign team members to answer the phone, shuttle deliveries, or serve as curb-side ambassadors. In the short term, this could also mean repurposing the business for strictly philanthropic purposes. One restaurant invited the American Red Cross to park its Bloodmobile in their parking lot for a blood drive to help medical professionals.
Step 2: PLANNING FOR NEAR
Planning for the rebound needs to happen now. If you’ve withstood the worst of the pandemic so far, you may find that the tweaks you’ve made temporarily should be considered for permanence. Now, more than ever, understanding the customer’s needs and wants – and how you are positioned to be a guiding force in their upturned lives – can be a make or break proposition. Here are some ways to be a part of this change:
Rethink offerings.
If you’re a restaurant, you might offer groceries or sell toilet paper. Most restauranteurs reduced their menu offerings to optimize the to-go experience. For retailers, this can involve sticking with conveniences like online ordering and curbside pick-up. Creativity is key. Here are some creative examples:
Red Roof Inns: The lodging company offered up hotel rooms as a remote office and alternative resting spaces during the day for truckers for only $29.
Fogo de Chao: The unique Brazilian restaurant shifted its focus to offer curbside packages of ready-to-grill cuts of meat.
Wow Bao: The restaurant has begun “selling the materials necessary to make a simplified version of their menu of bowls, buns, and potstickers to other restaurants and ghost kitchen facilities,” according to the website Restaurant-Hospitality.com.
Subway: The sandwich chain is testing a Subway Grocery concept in California. The beta program allows customers to order items such as baked bread, deli meats, sliced cheese, vegetables, and soups.
Panera: Like Subway, Panera Bread has launched a grocery offering at scale to allow customers to order essential grocery items such as loaves of bread, milk and produce, and to have the items available for delivery or drive-up pickup.
Reconsider sacred cows
As businesses rethink their offerings, they can run smack into certain “sacred cows” that seem to be integral to their identity. For example, a full-service eatery may balk at delivery options, since that fish dish might be ruined in the 30 or 45 minutes it takes to deliver it. This is no time for those kinds of pretensions. Find a way to make a meal pack, or focus on offerings that can be delivered successfully. Several restaurants have created pop-up drive-throughs, with no more than a tent and a landlord’s blessing. And the likes of Home Depot have shifted to curbside pick-ups even as it prided itself on counseling customers in the store.
Reschedule Initiatives
Retailers and restaurants that had planned remodeling projects could move those up, but only if the resources exist to do so. Only the best-capitalized businesses will be able to embark on a remodeling project now, but if you can move up the date, it’s worth doing while your dining room or bricks-and-mortar location is closed. Of course, such initiatives can still be hindered by government directives that limit non-essential work and will vary by municipality.
Reconnect
Communication matters more than ever. We may be keeping our distance physically, but we’ve never been more social. We have regular Zoom happy hours, and we can still call upon clients virtually on a regular basis. B2B companies will have closer relationships since they sell directly to their clients, but B2C companies shouldn’t go quiet either. They need to reach out every few days, so long as they are mindful in tone and content.
On an April 8 webinar sponsored by Valassis and featuring data from Technomic, they suggested:
Source: Valassis
If you can maintain communication with your customers through advertising, social channels, and email, do it. You must be mindful of your tone and message, but the research of the past 93 years is clear – if you can maintain or increase your advertising during a downturn, especially when your competitors don’t, you will be rewarded with higher sales and market share during the recovery.
Step 3: PLAN NEXT
Opening Soon
Planning for the rebound sooner, rather than later, is critical. Those who wait for the rebound to begin will be late to the party. If you wait too long, you will likely lose market share to more aggressive competitors.
With what you’ve gleaned from studying your competitors and company in Step No. 1, above, it’s time to learn more about your customers as they exist today, to get an idea of what and who they may be in the future. The shifts in public policy, social interactions, virtual workspaces, and personal hygiene will likely be tectonic in scope. As a result, you need to understand how the shifts will affect your business and which ones you may be able to exploit.
Ways to learn about your customers now, so you can plan for the Next.
Google Analytics – Look for shifts in devices used, demographics, source of traffic, etc.
Email surveys – Query your customers about their lifestyle, media preferences, food choices, favorite foods, etc. as they were prior to the pandemic, and as they are now. Do a gap analysis to find opportunities.
Read – Information abounds online regarding perceived or guessed new behaviors by many sources. Pete Hayes, CMO, and Principal for Chief Outsiders outlined the basic steps to follow in his blog “COVID-19 Crisis – 12-step Pre-Recovery Checklist for CEO’s. Also, McKinsey & Company posted an opinion on how to prepare for the next stage of the crisis. Their opinion is deeply rooted in management consulting expertise and is more about preparation for the next stage of the crisis vs. recovery.
Regardless of your current posture on the COVID-19 pandemic, it is a certainty that the danger will eventually come to an end. Now is the time to be sharpening your pencils and honing your strategies so you can be ready for the next steps.
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Maintaining advertising in a recession has been proven over time to increase market share and boost revenues over time.
In these uncertain times amidst the COVID-19 pandemic, there are likely two distinct pathways for businesses to follow — adapt or perish. Because none of you reading this would ever consider laying down your arms and not fighting for survival, I thought I’d share a couple of quotes from noteworthy types who chose the latter mindset, choosing to both adapt, and thrive, rather than survive.
“To improve is to change. To be perfect is to change often.” –Winston Churchill
“Skate to where the puck is going to be, not where it is.” – Wayne Gretsky
Of course, your survival instinct is just a starting point. What will it take to truly gird your organization for the post-pandemic economic recovery?
In this blog and the one to follow, I’d like to lay out some steps that might be worth taking. First, we’ll discuss why your advertising budget should be spared the ax. We’ll then discuss strategies to employ to prepare for an economic rebound.
Onward, ho!
Playing to Win the Ad Game
History is full of examples where businesses that maintained or increased advertising budgets during a recession were rewarded with more market share and higher sales and profits.
During the Great Depression, Post cereals reduced its advertising budget while Kellogg doubled its ad spend. The result? A catchy slogan — “Snap, Crackle and Pop” – for its new Rice Krispies cereal, and a 30 percent increase in post-depression profits. Oh, and they’ve been the market leader ever since.
During the 17-month recession in 1973 -75, Toyota maintained its ad spend and became the No. 1 import in 1976, surpassing Volkswagen.
In the 1990-91 recession, Taco Bell and Pizza Hut took advantage of McDonald’s decision to reduce its advertising spend. Pizza Hut sales increased 61 percent and Taco Bell,s jumped by 40 percent, while McDonald’s decreased 28%.
More than 40 studies over 93 years for Advertising in a Recession
In 2009, Gerard J. Tellis and Kethan Tellis compiled and synthesized 40 historical empirical and non-empirical studies on the topic of advertising in a recession. What they found was a healthy dose of evidence that advertising during a recession is a good thing. Several studies found clear evidence the reduced recessional ad spending led to lower post-recession sales; still, other studies found that the inverse – higher spend led to higher sales – was true. And, some studies actually found that market share can actually increase more for some companies during a recession than in stable times. The likely reason is a combination of lost share by competitors and the entry of new, more nimble firms into the post-depression marketplace.
Advertising Drives Word of Mouth
In another example, researchers looked at the lessons learned from the automotive and financial industries during the 2008-2009 depression. Brad Fey and David Shiffman concluded that:
Advertising plays a substantial role in driving positive word of mouth (WOM) for major brands.
Even during a major crisis, ad-driven WOM continues to be nearly as positive as during normal times.
Cutting back ad spend during a crisis diminished the impact of a valuable tool for offsetting negative news (though customer service, public relations, and social media also play a role).
From personal experience, I lived in the 2008-2010 recession. While a member of the executive team at Firehouse Subs, we used the downturn to reposition the brand and double our ad spend – actions that led to increased market share and exponential growth from 2010 to 2016, at a 20 percent year-over-year clip.
“The optimum response to the recession is to maintain, and ideally increase your advertising investment.
Unfortunately, to pull this off you require three things. You need to have some money available to spend on advertising. Then you need an executive team smart enough to know marketing is an investment or trusting enough to listen to your presentation that explains all of this to them. And, finally, you need to not be shit.”
How Does This Relate to Today?
Of course, we know that cash flow is critical, and maintaining ad spend during this crisis is easier said than done for many brands. But, if you have the ability to communicate with your customers through email/SMS text and other owned channels like social media, do it. As Fey and Shiffman learned from their work, the message is important, and this is the time to do all you can to maintain positive Word of Mouth with your customers.
If you are fortunate to have cash reserves and can maintain ad spend, especially by shifting to digital channels where “shelter in place” directives have increased usage, do it too.
Messaging Counts Too
Now, the message you convey during the COVID-19 crisis will vary slightly by industry. In some industries like restaurants and retail that are considered essential services, the advertising message could be similar to pre-COVID-19 messaging, since customers seem to be sympathetic to the struggles being experienced by their local merchants.
But striking the right balance is critical. If you are seen as putting profits before people, you may squander trust in a way that it cannot be recovered. A recent study by Edelman on brand trust confirmed this fact but also found that most brands are using their advertising powers for good rather that evil. Consumers in the survey responded as follows:
90 percent want brands to do everything they can to protect the well-being and financial security of their employees and suppliers, even if it means substantial financial losses until the pandemic ends.
89 percent believe brands should offer free or lower-priced products to health workers, people at high risk, and those whose jobs have been affected.
83 percent are seeking a compassionate connection, including brand messaging that communicates empathy and support with the struggles they face.
84 percent are turning to brand social channels to find a sense of community and offer support to those in need.
65 percent like hearing from brands they use about what they are doing in response to the pandemic because it is comforting and reassuring to them.
The takeaway?
Though it may be ok to advertise product or brand, as usual, it is advisable to change messaging, especially in owned channels like email, SMS/text, and social to a more humanistic tone and values.
“There is no doubt that the COVID-19 crisis is more than a recession. It is much worse and physical distancing is a demand killer. However, we at Edleman believe there will be much pent-up demand after the tide turns. American consumers like to be mobile, to eat out and spend money shopping. Don’t under-estimate the power of “Cabin Fever” and the “stir-craziness” for all Americans due to physical distancing.”
In our next blog, we’ll look at the importance of strategic go-to-market planning in being ready for the rebound.
Doug Reifschneider
Thank you for visiting our blog.
Jim Weber – Managing Partner, ITB Partners
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Loyalty, not such a long time ago, was a fairly easy thing to cultivate. You give a punch card or green stamps (or even wooden “round-tuits,” some of you may recall) to your customers, and they reward you with frequent visits or purchases so they can earn the points or badges to pocket free stuff.
Even today, as businesses like restaurants, retail stores, airlines, and hotels work to digitize and mobilize loyalty programs, customers still find it exciting and compelling to rack up the rewards.
But a funny thing happened on the way to the bank—loyalty, it seems, can be a fairly fickle concept—and even with the ease of participating in today’s e-programs, they don’t seem to be creating the brand affinity and “stickiness” that companies crave.
In fact, a third of customers will vote with their feet after a single instance of poor customer service, according to one survey. Keep ‘em happy, however – with outstanding personal service, great products, and minimal gimmickry—and you have an 80 percent chance of cementing that loyalty.
The message here: Being loyal to your customers, in today’s uber-competitive landscape, is as critical—if not more so—as customers being loyal to you.
If it seems like the script has been flipped, you’re right. In the days of Loyalty 1.0, those green stamps paved a one-way street of loyalty, from consumer to company. But now, in the world of Loyalty 1.5, with the ability to gain insights through apps, clicks, interactions, and views, it’s easier than ever to open a reverse lane of loyalty traffic from the company, right back to the customer.
So, let’s step back for a moment and think about what we really want to do. How do we tool our loyalty programs to demonstrate our love of, and affinity for, our consuming public? And, in particular, how do we replicate this online, without the benefit of the human interaction that comes with bricks-and-mortar businesses?
How to be loyal to your guests
Here’s an example using a counter service fast-casual restaurant concept.
Imagine if you will, striding into a local fast-casual restaurant near your office. You’ve been in about once per week for the last two months because it is close, and you like the food. You decide you’re in the mood for their grub again for lunch, so you cross the street, walk in the door, and take your place in line.
As you wait, you look at the menu and think about the meeting you just departed. Now, you approach your cashier, Susan (you know because of her name tag) and she looks up and says, “Hi, Mr. Smith! Great to see you. Would you like the usual today?” You are shocked she knows your name and are impressed she knows your usual order. You reply, “Yes, please,” and add a drink. Susan goes on to say, “Mr. Smith, you’ve been in a lot recently and we love serving you. Lunch is on us today!”
In this scenario, it’s easy to see why you would be floored. Susan not only knew your name, but she comped your meal too. The rest of the experience is equally as stellar (clean restrooms, a spotless restaurant, a follow-up visit from the manager) and you return to the office and tell six of your co-workers. The restaurant was loyal to you — which created an emotional bond, and the intensification of your love for that restaurant brand.
Loyalty 1.0 and 1.5 promised the ability to scale loyalty, and in most cases it did. But to add personalized messaging – like that offered by the restaurant chain — and to attempt to be loyal to your guests on this type of grand scale, takes time and a mastery of technology. Is your company up to the challenge?
If you’ve been around for awhile, perhaps you felt a little déjà vu when you heard loyalty platforms would save your team time?
Many years ago in a galaxy far, far away, a similar promise was made…
The Machine of The Year – 1982
At the dawn of personal computing, and before PCs and laptops became ubiquitous, we were promised that these gizmos were going to make our lives easier and give us more time to enjoy life.
The impact of the Apple II and the IBM PC was fully demonstrated when Time magazine named the home computer the “Person” of the Year for 1982. It was the first time in the history of the venerable publication that an inanimate object was bestowed with this award.
An excerpt from an accompanying article, “A New World of Dreams,” painted a rosy picture of a promised future:
“…Point is, it will save you time. Time time time. And we need all the time we can save. Can’t kill time without injuring eternity. Thoreau said that. Great American, Thoreau.
You say: Why should I want to save time? I hear you, friend. I hear you. You wonder where it gets you, saving all that time when you think about old Henry Ford’s gizmo that was supposed to save a peck of time. Only instead of conquering the open road, we wound up living on it. You’ve got a point. You a college boy? But this is the country of the A-bomb and the zipper. We always save time, good and bad. Tempus fugit. Time is money. Most of all, time is dreams. And computers give you time for dreams.”
Loyalty 2.0
So, how do we upgrade to Loyalty 2.0? How do we blend all that we have learned to produce a loyalty relationship with our clients that is as strong as the one we wish them to have with us? A good starting point is to replicate the 1-to-1 experience – with as much richness as we can – in the digital universe.
For a Loyalty 2.0 program to succeed, it needs to have a few of the following features:
Social media integration
Detailed analytics
Targeted email marketing
Targeted text message marketing
Smartphone integration and an app
Software that’s integrated with POS
Segmentation tools
Campaign tools
Customer recognition
Loyalty automation
The last four points are the most important. Most Loyalty 1.5 platforms lacked automated campaign and segmentation tools. Or, took too much time and effort from your teams to create the kind of personal connections we are advocating for now.
To get your company on track quickly, you might consider a provider like Punchh, LevelUp, Paytronix, and others that live in the Loyalty 2.0 space.
All of these are vendors that are purely focused on the B2C experience. They are dedicated to providing clients with a mobile-first strategy. It makes it easy to analyze customer behavior, generate insights, and develop sophisticated marketing automation. And it makes customized campaigns and promotions possible. Most offer deep integrations with leading eCommerce/online ordering, POS, and payment providers. All that provides marketers with a single view of the customer for omnichannel engagement across physical retail and digital channels.
Are you ready to take a leap forward into the world of two-way loyalty? By adopting a Loyalty 2.0 mindset, you will find it easier to be loyal to your customers. However, you’ll still need to commit corporate resources to execute with success if your customers are to feel the love.
Doug Reifschneider
Doug Reifschneider is a dynamic results-oriented, data-driven professional, Douglas drives nationwide growth through the creation and delivery of unique, creative brand strategies enhancing customer affinity and market position. With 25+ years of executive marketing experience, he strengthens brand equity with resonating positioning strategies. He uses successful marketing programs and innovative marketing campaigns that boost revenues. An innovative leader with strong team-building and collaboration skills, his strategic initiatives generate substantial shareholder and franchisee value and open new revenue opportunities.
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
There was a time, generations ago, when buyers didn’t venture too far from their home to satisfy their basic needs. Today, most consumers don’t think twice about using a few keystrokes to get the necessities shipped from some distant warehouse to their front door.
Despite this phase shift, “buying local” remains a relevant concept and even a source of pride for communities that rally around the brick-and-mortar businesses that still dot the landscape.
So, in the face of Amazonian-sized efforts to get consumers to do otherwise, how can you, as a multi-unit CEO, provide the necessary marketing support to your local units to keep the lifeblood flowing?
Local store marketing, or LSM, though not easy, isn’t really that hard. Once you commit to a strategy, the actual motions can be exceedingly easy. Nonetheless, LSM requires patience, commitment and resources; and execution can be time-consuming and tedious. And unlike online marketing, where data flows in both directions, many LSM efforts are still measured by feet (the human kind), and not 0s and 1s.
So, how do we define LSM, and what are some key considerations to foster success?
LSM – A Definition
First, let’s consider the following examples:
• A local restaurant drops off a catering menu to your office.
• You notice that a little league baseball team is sponsored by the local hardware store.
• You encounter three dry cleaners within a mile of where you live, each with a sign that promotes their price or extra benefits.
Of these, which would you consider to be LSM? If you answered “all,” you would be correct. Whether you know it as guerilla marketing, shoe-leather marketing, neighborhood marketing or even just plain old “local marketing,” all of these fit the definition of LSM – marketing and advertising for a small business location to augment other national or regional marketing, IF the small business is part of a larger brick-and-mortar chain.
Lather, Rinse and Repeat
To be effective, LSM has to be executed every week, all the time. Sponsoring a little league team once, or replying to online reviews twice per year, or buying an ad in the local shopper twice is what we at Chief Outsiders call “Random Acts of Marketing” – those sporadic and non-strategic one-offs that do little to move the needle.
To be truly successful, LSM needs to be a fixture of every local store’s marketing plan – in the words of Vince Lombardi, “it is not a sometime thing, it is an all the time thing.” The best way to make this happen is to commit resources to it as part of your overall marketing mix. Since it typically comprises but a small percentage of your chain’s overall marketing budget, it is built for endurance – not speed – so you need to be patient with the outcome.
Site Awareness is as Important as Brand Awareness
I’ll share a true story about an experience I had when I was at Firehouse Subs. The story takes place several years ago, when online reviews weren’t yet a big thing, and mobile didn’t have the pervasive influence that it does today.
It was at a time when Firehouse Subs had about 300-400 restaurants, and we determined that, without the air cover of regional or national advertising, we had to do something to jump-start sales and get franchisees engaged.
One way we did this was by conducting “Founder’s Tours.” The co-founders, COO and many of the rest of the HQ staff went on bi-weekly road trips, known as Founder’s Tours. On one trip, we pulled up to a restaurant in central Florida and clamored out of the bus. There were 12 of us on the bus that day and when we arrived at the restaurant at around 9:30 a.m., we were given a map of neighborhoods and businesses to visit and bags filled with catering menus, courtesy cards, cookies, and chips. Of course, one person had to remain behind to be the sign waver.
That’s right – the sign waver. That’s because the two primary LRM tactics we were modeling for the franchisee were:
1. Neighborhood canvassing to get to know your neighbors
2. Sign waving to draw attention to the location
Sign waving in the rain
While I waved a large sign with a Firehouse Subs logo on it, six teams of two people each went into the trade area and visited as many other local businesses as they could in about two hours. When everyone returned to the restaurant, we debriefed.
Here’s what we learned:
• Each team covered a distance of about ¾ – 1 mile from the restaurant
• Most businesses were happy to receive the “free” goodie bag
• About 75 percent had heard of Firehouse Subs (Brand awareness, yes!)
• Over half of those visited did not know of the specific location of this restaurant
I’ll let that last bullet point sink in for a moment. Over 50 percent of the people we talked to within a mile of the restaurant had no idea they were less than a mile from the restaurant. Had this been a new location, site awareness would have been expected to be low. Unfortunately, the business had been open and operating for more than 4 years at the time of the Founder’s Tour visit.
That’s when we realized that brand awareness is one thing, and site awareness is another. Having brand awareness without site awareness is worthless.
How can a small business let potential customers in their trade area know where it is located?
Be active in the community, get to know your neighbors — and be visible.
In other words, commit to local marketing for your locations, and be found.
About the Author
Doug Reifschneider is a dynamic marketing leader with 30+ years of experience in the restaurant industry and a demonstrated history of driving growth through the creation and delivery of unique, creative brand strategies enhancing customer affinity and market position.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Many thanks to Ron Weinstock, of Weinstock Marketing and ITB Partners for facilitating this Partnership.
What is a Company Store?
A company store is an on-line, fully integrated e-commerce site that gives you complete control over your branded merchandise program.
This is not a new concept as many printers have expanded their services, providing companies an outsourced solution for the logistical management of marketing collateral and branded products. A dedicated company store provides employees, dealers, franchisees, agents and even consumers the ability to easily purchase branded merchandise. “The more people who see our logo, the greater the likelihood they will call ITB Partners to resolve their problems.”
“Symphonix Solutions will handle everything for us, from acquiring and warehousing the merchandise for our store to maintaining the web-portal and executing order fulfillment.”
SYMPHONIX SOLUTIONS CLIENT BRAND MANAGEMENT PLATFORM IS CALLED “ONBOARD”
From this customized web portal, you can oversee brochures, displays, promotional products and digital brand assets, control and track projects, costs, create reports control inventory and send direct response emails.
At Symphonix Solutions, we have a variety of solutions to make it easy for our clients.
To learn more about Symphonix Solutions and how we can help promote your brand and your client’s brand, contact Michelle Mehnert at mmehnert@symphonixsolutions.com.
Since 2008, Symphonix Solutions has been helping clients manage their marketing and sales materials providing customized solutions that improve the production, distribution, and control of their assets. “Our proprietary technology provides each client with a customized portal to track inventory, costs, and delivery from anywhere in the world.”
“Our clients want the best quality, cost-effective, easy solutions, and Symphonix delivers.” With the highest level of service and a dedicated team you can trust, Symphonix partners with the best provider network to produce the best results from people who care about your projects and consistently deliver because they love what they do.
Symphonic Solutions stands ready to help you and your clients with their printing needs as well!
i’ve learned that it is a big mistake to ignore my automobile’s ‘check engine’ light. I’ll admit, there was a time when I viewed the indicator light as a suggestion. Not anymore. I respect the ‘Check Engine’ warning light and take immediate action. Often, a failed sensor is the problem. Sometimes, when a sensor fails it cannot provide the automobile’s onboard computer with the information required to ensure the proper functioning of the engine. In other situations, the issue may be more serious. In any event, it means a trip to the service center.
Two weeks ago, a few indicator lights activated on the dashboard of my Nissan 350-Z, including a Check Engine light. The Z was a little difficult to start and the engine was operating below par. Of course, I took the car to the Nissan dealership for service.
As I was the first person in line when the service center opened, my need was processed immediately. In addition to the ‘Check Engine’ light, I asked them to check my air conditioner, as it wasn’t cooling properly. The service attendant was courteous and efficient. He printed a list of items to be investigated with a cost estimate for the diagnostics.
After completing the service order, I was directed to the customer lounge to wait for their evaluation. The owners of this Nissan Dealership had recently completed a major remodel. I suppose, remodel is not entirely accurate as they razed the old building to be replaced with a modern facility. I was not prepared for the utility of the waiting room. It is easily four times larger than the original. The adjacent restrooms are larger and more presentable.
The new lounge is more like a WeWork or Industrious office center. There are workstations and comfortable pit groups with over-stuffed chairs. The dealership offers free Wi-Fi and an ample number of electrical outlets for computers or to recharge smartphones. It is comfortable and well lit. An ample assortment of free beverages and snacks are provided. They offer single-serve coffee service, with a wide selection of flavors. There is juice, water and soda, packaged snacks, power/breakfast bars, and fresh fruit. At some point, a few dozen fresh donuts arrived. I passed on the snacks but enjoyed several cups of French Roast Coffee. There is a big-screen television tuned to HGTV and another screen for viewing the work in the garage. I was blown away by the new lounge. It’s like a combination of Starbucks and WeWork. If I had known about the amenities available, I would have brought my laptop and stayed in the customer lounge until my car was ready.
Almost immediately after my experience with Regal Nissan, I called my friend and colleague Mark Grace. Mark is an industry expert and guru on customer experience. He has trademarked a term for customer experience called Experidigm (see experidigm.com and his eight books). An experidigm is not just the product or service, but all the actions and feelings the customer might have related to the experience now, later, and as the product is integrated into their lives. It was my intention to share this experience with Mark to learn if the Nissan Dealer is providing a competitive customer experience. Also, as I thought it make an excellent blog post, I wanted to enlist Mark’s contribution, which follows.
Mark Grace
This is a great example of the shift from selling a product or service to delivering a complete experidigm of related customer activities. Yes, customer waiting is a major activity in the car repair business. Waiting is part of the experience. We’ve all waited for hours in a cold, damp, smelly, repair place staring at an ugly, cracked linoleum floor. Compare that to Jim’s waiting, or should I now say, productive working experience. Jim might come back for more activities. The dealer could schedule quarterly events, to showcase new cars, accessories, or services. There is a large list of activities the dealer can consider, some of which could become profit centers.
Today, consumers can choose from over a billion products. The opportunity is integrating products and activities into a complete experience or experidigm. Brands that create experidigms, will acquire lifelong customers. Think Airbnb for staying overnight or Uber/Lift for getting from here to there – the complete experience is covered and growing larger. Any product can be made into an experience. Customers create eperidigms by integrating the product into their lives. Brands can take the lead, increasing their profitability by enhancing the customer experience. Let us show you how.
Thank you for visiting our blog.
Jim Weber – Managing Partner, ITB Partners
Jim Weber – Managing Partner, ITB Partners
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Susan Knox of Corporate Connections is a tenth generation Georgian, with an exceptional reputation and network. I am so pleased to have her on the ITB Partners Team as her business is unique and her personal story is compelling. In fact, I thought you would find her story so interesting, I convinced her to sit for an interview. This is the third installment of our discussion.
Jim: “What is your motivation? What gets you out of bed every day?”
Susan: “Number one, I love having great people around me. When I say great people, I mean people with integrity, who are smart, and ask ‘how can I help you first.’ They aren’t takers. They check their egos at the door; men and women, who are genuinely good people. I love having that as my nucleus and I thrive on meeting new people. The capital of my company is my relationships. I think that relationship capital is under-valued currency.”
Jim: “So you wouldn’t call yourself an introvert.”
Susan: “No! I could not do what I do if I were an introvert.”
Jim: “You said you have three brothers, older, younger?”
Susan: “All are older, I am the youngest. I learned a lot from them. My dad treated me like a little princess. He also taught me to be fiercely competitive. I could outrun them, swim across the lake underwater, and not come up (for air) because I was not going to disappoint them.”
“I have a very competitive spirit. I like to win.”
Jim: “How would you describe your clients, is there a common denominator? Industry segments for example?”
Susan: “No, there isn’t. It’s really across the board. I have three companies raising capital, a very big software development company, and a marketing company. My clients also include a Law Firm, a Bank, and a CPA firm. My Network and my clients are much the same. I work with them on retainer until they feel they have gotten what they need and then flip them into the Network, my board. My clients are a feeder system for my Network. I want to make sure the members of my Network, work well together. When I started my network membership, almost two years ago, I did not want to become industry-specific and have one member per category. It is not a leads group at all. It’s totally about relationships and bringing people together that can be top of mind, where likes attract likes is the kind of group I wanted to build.”
Jim: “What was involved in creating Corporate Connections?”
Susan: “Well, I will never forget my first meeting. I invited people I knew well. I called it “An evening of introductions.’ I am still using this title today. Nobody knew what to expect, because there was nothing like it at the time. I was mixing people who should know each other. I served wine and beer and went around introducing them. One of my signatures is to have people introduce themselves (to the group). There is nothing better than knowing who is in the room with you so you can immediately pick out someone to meet. I learned early on to combine socializing with facilitated introductions, and then to follow up.”
“Through the years I’ve learned to give people the most for their time. I learned to slow down, work the room, and let people know why they need to know each other. I learned is to make a personal connection; mention that they both like to play golf, or they might be avid tennis players. Maybe their kids go to the same school or they are both Clemson Alumni. I get to know my contacts so I can say something personal about them. It takes some of the stiffness out of the room.”
“I want to know about their passions. A lot of my contacts are willing to give back their time and their money. Some want to be a mentor or to serve on a board. So, for me to know your passion is important.”
“This morning I was with six hundred women who work with children that don’t normally have access to something like Westminster. It is called Odyssey. These women all have a passion for giving underprivileged children a hand up.”
Jim: “That would be an extension on what you are doing with a philanthropic angle?”
Susan: “And, I tell everyone to figure out ‘what your passion is about and go volunteer.’ Get on a board, help with membership. Do whatever it is that you are passionate about.”
TO BE CONTINUED…
Thank you for visiting our blog.
Jim Weber – Managing Partner, ITB Partners
Jim Weber – Managing Partner, ITB Partners
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Susan and I scheduled a meeting at a popular coffee shop in Roswell Georgia. I like to be punctual, so I arrived five minutes early to order a cop of coffee, find a table and prepare for our visit. As I entered the coffee shop, I immediately saw her, sitting at a table, waiting for me. Of course. That is Susan Knox.
Susan Knox of Corporate Connections and I have known each other for at least 15 years, maybe more. She is a tenth generation Georgian, born in Atlanta, with an exceptional reputation and network. Although I have attended a few of her events over the years, we have operated at the periphery of each other’s networks. For the past six months, we have connected much more frequently. We found that our business models were complimentary. After exploring the potential synergy, I became her client, and she became a member of ITB Partners. That’s a topic for another post. I am so pleased to have her on the ITB Partners Team as her business is unique and her personal story is most compelling. In fact, I thought you would find her story so interesting, I convinced her to sit for an interview.
Jim: “Susan, thank you for making time to meet me today. To begin our conversation, could you tell me about Corporate Connections.”
Susan: “I am a Business Accelerator I help generate revenue for companies and executives by providing high-level corporate introductions. I also connect companies with capital. My tag line is, ‘it’s not the people you know, it’s the people who know you.’
” I believe My Mission to connect executives and to help fill companies and individuals’ pipelines with prospects and influencers. And the reason I say prospects and influencers is because there are a lot of people out there that are doing business who need to know people, they can do business with. They also need to know people who are very well connected. I have learned by doing this since 1999, that not only do I need to introduce my clients to people they can actually do business with but to find other Susan Knox who can help fill their Rolladex, growing their relationships exponentially. ”
Jim: ” So you not only help them with their business development, you help them build their overall Networks.”
Susan: “Totally. I have had several conversations recently with people who say; ‘Susan if I had direct access to the people I am trying to sell to, I could win so many more contracts and get so much more business. But I am going up against three or four other companies.’ So, a lot of people say, ‘if I could hire you, you could take me into the company directly at a level I need to be.’ The instances of me closing their business (contracts) are far greater.”
Jim: “You are a 10th Generation Georgian, having lived here your whole life; is this background responsible for the creation of Corporate Connections?”
Susan: “Yes! So, I think since I was little, I was groomed to do this. I grew up in a family with three older brothers, very southern, hosting events, becoming a gracious host. I always loved combining what comes naturally and what I enjoy doing, with something people want.I mean, that is absolutely so true! I think I have been groomed to do what I am doing today pretty much since I was little. Coming from Atlanta and having deep roots here, certainly helped.”
Jim: “Are your services appropriate to people and businesses planning to move to Atlanta?”
Susan: “It’s super valuable, but I haven’t really leveraged that. I could certainly go to companies and say ‘if you are bringing people into Atlanta, I can help them with their transition. I could tell them about private schools, about country clubs, different areas of town, and that kind of thing. But every day when I wake up, I think, ‘I have a network that I must be helping.’ My focus is 100% on connecting them with people they need to know”
Jim: “Corporate Connections is Atlanta-based, but I know you have clients in Dallas, Texas, and Memphis, Tennessee. What other clients do you have outside the State of Georgia?’
Susan: “I have clients in San Antonio, and a client out of New York, a Private Equity firm. But you know, I have relationships all over the country. I’ve met these people over the years, and those connections have connected me to potential clients that are trying to raise capital or that have an office in Atlanta. What has been highly effective is a connection in Houston who has a Healthcare Think Tank. She has sent me six clients in the past few months. It’s amazing the number of Texas Companies that want to do business in Georgia, and Georgia Companies that want to gain work in Texas. So, we have collaborated a whole lot.”
Jim: “Do you have clients in other Georgia Cities?”
Susan: “Well, I have clients in Savannah, Macon, South Georgia, but the preponderance of my clients in Atlanta and the outlying areas.”
TO BE CONTINUED…
Thank you for visiting our blog.
Jim Weber – Managing Partner, ITB Partners
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
The new lounge is more like a WeWork or Industrious office center. There are workstations and comfortable pit groups with over-stuffed chairs. The dealership offers free Wi-Fi and an ample number of electrical outlets for computers or to recharge smartphones. It is comfortable and well lit. An ample assortment of free beverages and snacks are provided. They offer single-serve coffee service, with a wide selection of flavors. There is juice, water and soda, packaged snacks, power/breakfast bars, and fresh fruit. At some point, a few dozen fresh donuts arrived. I passed on the snacks but enjoyed several cups of French Roast Coffee. There is a big-screen television tuned to HGTV and another screen for viewing the work in the garage. I was blown away by the new lounge. It’s like a combination of Starbucks and WeWork. If I had known about the amenities available, I would have brought my laptop and stayed in the customer lounge until my car was ready.
