Copyright © 2010 MI-SBTDC TM. All rights reserved. Entrepreneurial Series Promotions That Work!...

Copyright ©

2010 MI-SBTDCTM

. All rights reserved.

Entrepreneurial Series

Promotions That Work!

MI-SBTDC™ ● Region 5 ● (989) 686-9597

Copyright ©

2010 MI-SBTDCTM


Please introduce yourself!2

• Tell us about you and your business!

• What do you hope to get from this class?

• How did you find out about this class?

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2010 MI-SBTDCTM


Aspects of Retail Promotions

Targeting Your Customer

Branding

Advertising

Signage

Publicity & Social Media

Sales Management

Customer Loyalty

Community Involvement

Contests & Events

Visual Merchandising

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Where is your business coming from?

Using your three favorite colors from the crayons on your table, make a pie chart that represents the breakdown of your annual gross sales based on customer type:

Regular, repeat customersOccasional customersNew customers you have never seen before.

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How do you currently allot your annual marketing & advertising budget?

Traditional Media (radio, news-paper, TV)Targeted Mailings, emails, & rewards to your existing clien-tele.Internet and Social MediaEvents BrandingSales incentives to staff

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Targeting Your Ideal Customers

Knowing who is coming to your store to buy,

why they buy,

what they like,

how to reach them,

what their demographics are,

what their hobbies are, etc,

will save you a lot of money

and generate higher sales!

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Your chances of selling….7

You have a 1 out of 2 chance of selling to an

existing customer (50%)

You have a 1 out of 4 chance of selling to a

previous customer (25%)

You have a 1 out of 20 chance of selling to a

new customer (5%)

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Best ways to reach your clients

Direct mail

Birthday/Holiday cards

E-Mail Newsletter

Social Media

Customer Loyalty Program

Surveys

Exclusive Events/Sales

Win Back Program

Sales Team Tools

Traditional Media

Website

Social Media

Referrals

Invitation Gift Certificates

Windows & Signage

Unique Sales/Flag

Community Events

Streetwalking

Existing & Former Customers

New Customers

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Increase Sales w/ Existing Customers!

Since they are the source of the majority of your business,

and they purchase the most at regular price,

you should be offering them extra special treatment!

Direct Mail, 4-6 times a year

Customer Loyalty Program

Email them a photo of new merchandise they might like

when it arrives.

Offer premium gift wrapping

Offer to ship gifts for them

Birthday and Holiday gifts or cards

Exclusive previews and sales

Social Media updates of new merchandise, design tips,

sales, customer testimonials and more!

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Win Back Your Previous Customers!

The odds are still very good here!

Plus, if you can win back a customer who had previously been dissatisfied,

they will become your most loyal of customers!

Create a list of who hasn’t been in for a year or more from

your previous mailing list or employee’s memories.

Do a special, personalized letter to each person, survey

why they haven’t been in, and offer a $5-10 gift certificate

for anything if they bring the survey back to the store.

If a problem is identified, make it right. Thank them for

bringing it to your attention. Welcome them back!

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Bring in some new customers!

Analyze your perfect customer

Survey your regular clients

Plan new advertising around what the existing clients

research revealed.

Ask existing customers for referrals, or have a special “bring

a friend” sale.

Have gift certificates made and give them to likely new

customers you meet, with an invitation to come in the store.

Hit the streets, and give gift certificates to all potential clients

working in a three block radius of your store.

Have a nice website that shows your store’s style instead of

an expensive yellow pages ad.

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Compare the results

Loyalty programs don’t cost

money unless they are used.

Usually, it’s a 10-15% kickback on

purchases. (Much less expensive

than having to do a 25% off sale!)

Gift certificates don’t cost until

they are used, which means a

new person you have chosen is

now shopping in your store!

Costs the same whether or not it

brings in sales, so use it well. One

large ad a month will bring in more than

four small ones.

To test efficacy, give away gift

certificates in ads too…only have a

minimum purchase.

Use the media that the you find out

your existing customers are reading

or hearing.

Loyalty, Rewards, Gift Certificates

Traditional

Advertising

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Sure seems like we are

giving away the store,

huh?

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Branding Your Business

Branding is the process of creating a unified look and theme to all of your marketing materials, signage, packaging, advertising, labels, music, paper choices, bags, giveaways, uniforms, and more!

You do this so your business is easily recognizable to all your customers, and it sets the tone for what your store will be like.

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Branding: the Basics

Logo

Fonts

Graphics/Art

Borders

Colors

Papers

Motto

Fabric

Texture

Sounds

Smells

Business Cards

Letterhead

Signage

Bags

Receipts

Advertising

Website

Loyalty Cards

Labels

Employee Clothing

Atmosphere in store

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There are many aspects to your advertising strategy, and by planning your year in advance, you can keep on budget, have a flow of ideas week to week, and track the results of your spending very simply.

Advertising Tips & Tricks

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Advertising Budgeting

For existing clients, use

about 30-40% of your total ad

budget.

Use this for loyalty, direct mail, events, birthday

and holiday gifts, email newsletters, gift with

purchase promotions,

and referral bonuses.

For new clients, use about

50-60% of your total ad

budget.

Use this for gift certificates, radio and

newspaper advertising, event sponsorships, new

client referral gifts, website, and cross promotions.

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That leaves about 10-20%....18

Use this to win back your former customers. Use this for

surveys as to why people have left, for extra “concessions” when

someone comes back in dissatisfied, and bonus gift certificates to

give to surveyed customers to bring the survey back in.

AND/OR

Use this for sales bonuses and commissions that reward

excellence in sales! More on this in the sales motivation portion

of the class!

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Advertising Budgets Should Be…19

Ask yourself…

Will this ad be seen by my perfect target customers?

If so, place it.

Maybe? Do a smaller ad.

If not, Skip it!

Set ahead of time.

Based on percentage of sales, not on available cash on

hand when a salesperson stops in!

Regulated to cover both the slowest and busiest times of

the year.

Allocated based on the response you get from the

customers.

Given enough wiggle room to take advantage of special

offers.

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Easy way to plan your month…20

Be sure to ask when people come in,

what brought them in today!

Write it down!

1st

week: Direct mail

2nd

week: Newspaper

3rd

week: Radio

4th

week: E-newsletter

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Two things you’ll need:

Each time you do a promotion, take a

clipping of the ad, paste it in the book, and

keep track of how many sales, customers, and

cost of the ad.

You will be planning for budget, for lead

time, for promotional time, and results. Have

one part of your planner (or a separate one)

just for marketing activity.

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Clipping Notebook Planning Calendar

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Your Website22

Websites are now the way most people find out information on a store before they go. Over 50% of people say they first look online for phone numbers, or to see if a place is worth going to!

Online business card

Location, hours, directions, phone, email

Photos of the store

Product lines and links to major suppliers sites.

Upcoming events, current specials.

Testimonials from customers

Email newsletter/coupon signup box

Updated at least monthly!

Link to Facebook or MySpace pages

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Customer Database

Name

Complete Address

Email Address

Loyalty Card Information

Purchase Record

Favorite Brands

Birthdate (not year)

Any notes that help you know more

about the client.

Direct Mail pieces

Email Newsletters

Email Surveys

Email blast when a favorite new

brand comes in for the season

Birthday cards

Referral programs

Distribute Rewards

Invitations to special events

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What you need to get! How you will use it!

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I saw the sign!

Your main sign should be of the

highest quality and reflect your brand

image perfectly.

All other signs, banners, or placards in

the windows should also use the

branding standards.

Should be well lighted.

Flags and banners can be great

attention getters with their movement.

Consider an embroidered sale flag.

Feature new/seasonal items

Feature famous brands

Direct customers to the sizes or areas

they are looking for.

Make sale items easy to find.

Tell policies in a nice way

Suggestive sell loyalty program benefits

All signs must be kept current and use

branding.

Use your computer to create consistent

signage

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Outdoor Signs Inside Signage

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Displays

Windows Floorplan

Neatness Ambiance

Image

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Publicity

Is easy to use if you understand and

follow the basics of press releases.

Can showcase your expertise in your

field when you write articles about

topics of interest.

Should always include a full color

photo.

Should always include an ad that

promotes how your business is related

to the article submitted. It’s a great way

to get a half page of notice for 1/8th

page price!

Is not something you can schedule.

It goes in when the papers want it to.

Is not a replacement for traditional

advertising.

Cannot promote your business

directly, it needs to be a public interest

story.

Is a good way to announce employee

promotions, educational milestones, and

national affiliations.

Will help you build credibility as a

specialist in your industry.

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Social Media

It’s free!

Your customers use it already.

Can complement your regular ad

schedule.

Can show full color photographs of

new merchandise, to entice shoppers

to stop in.

Great way to give tips on how to use

your products.

Is a silent referral system.

Can be very addictive.

Can take too much of your time away

from the sales floor.

Can lead to employee time wasting if not

properly managed.

Is not a replacement for your regular

promotions and paid advertising.

Can be annoying to customers if you

used inappropriately.

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Pros Cons

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Social Media Guidelines28

• Post something every few days for best results.

• Don’t spend more than 15 minutes a day on it.

• Use it to promote contests and events, and get customer

input on how they use your products in their lives.

• Be sure to friend people regularly.

• Be very proper. Never do or say anything that can offend

anyone, anytime. It’s permanent.

• Announce your weekly specials, and it may boost traffic.

(Don’t rely on this, though.)

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Promotions That Work!

Week 2 Agenda1. Questions from last week?

2. 6 minute group activity- 4 minute feedback

3. Personnel Management/Customer Service

4. Loyalty Programs

5. Community Involvement

6. Cross Promotions

7. Budgeting and Planning Tips

8. The Apprentice Challenge-Group Activity

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Your sales and service professionals are

the face of your business to your customers.

Management & Motivation

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Salespeople vs. Clerks

Greets customers, lets them look a bit, then

formulates a soft open.

Sells to the individual, based on what they are

looking for/at. Shows how it will work for the

client.

Gives excellent customer service, offering to

show them other items that complement.

(Upsell/crosssell)

Offers extra services.

Gets them signed up for emails.

Makes notes on the customer file.

Sends a Thank you note to the client.

Greets customers with a “Hi, can I

help you?”

Walks away.

Spends a lot of time behind the

counter.

Rings up what they brought to the

counter.

Says Thank you. (maybe)

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Salesperson Clerk

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Your staff should:

Know the products you sell inside

and out.

Be able to answer questions about

how to use the products.

Be helpful and suggestive, without

being pushy.

Feel confident about their role in

selling.

Not take rejection personally.

Know the sales goal numbers for

the day, week and month.

Know their personal best, and

strive to beat it regularly.

Make notes in the client files about

purchases.

Call or send notes or emails on

new groups that they know a

customer would like.

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Perceived Indifference33

68% of all customers

Never purchase from us in the first place

OR

Never come back again.

Because they get the feeling that you don’t

care, you don’t appreciate their business, or

you have something else you’d rather be

doing.

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Overcoming Perceived Indifference34

PRACTICE “RELIABLE C.A.R.E.”

The 5 best ways to keep customers coming back.

•Be Reliable

•Be Credible

•Be Attractive

•Be Responsive

•Be Empathetic

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Management/Motivation

Job descriptions

Hiring the best

Effective training

Posting goals

Sales meetings

Keeping focused

Give them tools

Review and Reward

Know each person’s specific

motivations

Personal goals & professional

goals set

Performance pay

Motivational library

Recognition & Praise

Positive reinforcement

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Management Motivation

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Types of loyalty systems

Very low cost to start.

Can be used with POS, on paper,

or punch card for wallet.

Can be customized for your

business.

Tracking is the responsibility of the

sales staff and clients.

More labor intensive.

About $250-500 to start, call your

credit card provider for details.

Professional

Easy to use & track

Industry standard now

Higher cost, less flexibility.

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Simple In Store System Loyalty Card Scanners

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Benefits of Loyalty Systems

Increased sales

Targeted database

Higher margins

Low cost to promote directly to best

clients

Doesn’t cost until the customer

purchases a set amount.

Early season sales.

Feel rewarded and appreciated.

Part of a club/group.

Special discounts and preview

sales

Kickback on purchases

Increased services like giftwrap or

shipping.

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To the Store To the Customer

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• Getting involved in the local community is the key to a successful retail district.

• Joint marketing campaigns cost less and work better than going it alone.

• Consistent store hours pay off.• Non-profit organizations make great partners

for fundraising for both.• Cross promotions=Low Cost+High Return

Community Involvement38

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Cross Promotions

• Low Cost, but High Impact!

• Show Customers Your Town

• Get Existing Clients into New Stores

• Build Loyalty to a Community

• Added Value to Clients & Businesses

• Smaller Individual Buy-in

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Coupon Cross Promotions

Newspaper Wrap or Insert• Full page of same size coupons for all

different businesses in one community• Back side of coupon has details about the

same store as the front (2 sided)• Coupons expire 6 weeks from issue date• Coupons offer $$ Off or Gift with Purchase• Header tells total $ value of page

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Coupon Cross Promotions, 2

Given inside a business to their buying customers, to promote your own business, and surrounding, non-competing businesses. (Customer Rewards)

• $ Value should be at least 20% of average purchase, or high perceived value to the customer.

• Larger, 1/3 page size, individual coupons in an envelope • $ off, Free Gift, or BOGO….(No % off coupons)• You reap the benefits of reaching other paying

customers within a shopping district, people who are more likely your target customers, and are already loyal to the community. (Less risk)

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Coupon Cross Promotions, 3

• Direct mail cross promotions go to specific demographic profiles at home.

• 2 Business Cross Promotions---I hand out your coupons, you hand out mine.

• Themed- All bridal businesses, going to prospective couples; All home goods to new homeowners; All family related for families with children at home, etc.

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Community Involvement

Join 1 or 2 key groups that have similar

goals.

Elect strong leaders and be involved in

event planning.

Suggest consensus seeking and

brainstorming sessions if the group is

stuck in ruts.

Groups to consider: DDA, Chamber,

Lions, Kiwanis, Michigan Retailers, or

the National Association for your

business.

Have a set program for charitable

givebacks. Offer this to each group

that comes in asking for donations.

Give out cards that allow customers

to donate their rewards to local

charity of their choice.

Offer special sale weeks where a

portion of the sales go to a specific

charity.

Use their publicity to promote.

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Professional Organizations Charities & Churches

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Promoting During Events

• Participate in group advertising efforts. • Be open the same hours as the event• Have 1 day specials for event attendees.• Do some streetwalking • Make your storefront festive• Give away coupons or tokens in goodie

bags going to attendees.

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Keep the bottom line in mind!46

Events and contests are great ways to build traffic and keep

things fresh and new for your customers. However, make

sure you are not giving away more than you are taking in!

• Set Sales Goals for the event

• Keep advertising costs in check

• Tie in with local festivals to reduce costs

• Have enough salespeople on hand

• Buy special items with higher margins but good prices

• Have instant cash bonuses to salespeople who reach goals

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Hours of Operation• What are your town’s standard hours of

operation for downtown businesses?• How do your hours compare?• Why are your hours different?• Consistency is the key to a downtown’s

success. People need to be able to rely on businesses being open the same hours, or you will lose to malls and other areas.

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Plan ahead. Choose the best of the best for sales and promotions, schedule the year, and adjust for budget. Then go for it!

Your Advertising Schedule

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How much $ to budget?

There is no magic number, but roughly…

New businesses,

7-10% of projected sales.

Existing businesses,

3-7% of projected sales.

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Steps to Promotional Schedule51

This will take several sessions. To work best at this, I suggest you get out of the store, and go to a neutral location where you can work without interruption.

1. Brainstorming ideas2. Research pricing, profitability, sales3. Check local events to tag along with4. Check calendar: Holidays, national “weeks”, staff

vacations, buying trips, local town events, weather,

etc. 5. Plan branding and loyalty pricing6. Plan traditional advertising7. Calendar of events, with lead time for preparation.

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How do I find time to do it all?52

• Analyze your typical week. How much time are you spending doing

things that do not increase your business?

• Carve out office time for working only on promotional stuff. I

suggest 5 hours a week of focus time, without interruptions. One hour

a day will work.

• Don’t try to do it all yourself. Delegate tasks, outsource, ask media

reps to do the work for you, or barter

• If you don’t have an office that you can close the door, leave the

building and go somewhere else where you can take your laptop and

work strictly on promotional stuff.

• Have proofs and quotes emailed to you. That way, you can proof

from anywhere, anytime.

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The Apprentice Challenge!

• Count off 1-6,and break into groups• Appoint a secretary/notetaker• Create a promotion using a $1000

promotional budget, to take place in September or October of this year.

• You have 15 minutes to create, and 2 minutes to present your idea to the group!

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Next steps…54

After you read all of this, let it sink in for a week.

Choose your favorite concepts to follow-up on.

Schedule a free one on one confidential counseling session with an SBTDC business

consultant at your convenience, and we can help you put this in perspective.

Get a great calendar and planner system.

Be active in your DDA and Chamber

Pick 2-3 promotional ideas to implement in the next few months, while working on your

annual marketing calendar.

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A Gift For You!• You are each receiving a CD that has a

wealth of information on a variety of the topics we spoke about today.

• On that CD are promotional ideas, articles, tips and tricks on budgeting, forms, and lots of other things that I hope you find helpful.

Thank you!

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2010 MI-SBTDCTM


The MI-SBTDC™

is funded through a cooperative

agreement with the U.S. Small Business

Administration (SBA), the Michigan Economic Development CorporationSM

(MEDC) and

matching funds from Local Network partners in each region.

MI-SBTDC ™

State Headquarters

Grand Valley State University

Seidman College of Business

Phone: 616.331.7480

www.misbtdc.org

The Michigan SBTDC

MI-SBTDC™ ● Region 5 ● (989) 686-9597

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2010 MI-SBTDCTM


Michigan SBTDC Services

• Counseling - One-on-one meetings with experienced business consultants to assist starting or

growing small businesses

• Training - Available through the Entrepreneurial Series:

▪ Starting a Business

▪ Writing a Business Plan

▪ Marketing Your Business

▪ Financial Management

▪ Business Legal Issues

• Research - Provide a full range of information services through the State Headquarters

MI-SBTDC™ ● Region 5 ● (989) 686-9597

Copyright ©

2010 MI-SBTDCTM


Funded in part through a cooperative agreement with the U.S. Small Business Administration. All

opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily

reflect the views of the SBA.

The Michigan Small Business & Technology Development Center™

(MI-SBTDC™) provides counsel, training and research for Michigan’s new business ventures, existing small business, expanding new businesses, new

technology companies, and innovators. The MI-SBTDC™ is housed at Grand Valley State University’s Seidman College of Business in Grand Rapids,

Michigan. As host of the MI-SBTDC™ State Headquarters, the Seidman College of Business oversees the twelve region MI-SBTDC™ network.

Entrepreneurs and small business owners may access the services of their nearest MI-SBTDC™ by calling (877) 873-4567 or visiting

www.gvsu.edu/misbtdc/region5.

All rights reserved – Copyright 2010 by MI-SBTDC Region 5

The information contained in this PowerPoint presentation is believed to be accurate at the time of publication. All information is subject to

change without notice. Unauthorized use or reproduction of information contained in this presentation is strictly prohibited.

MI-SBTDC™ ● Region 5 ● (989) 686-9597

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