Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
Entrepreneurial Series
Promotions That Work!
MI-SBTDC™ ● Region 5 ● (989) 686-9597
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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?
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
Aspects of Retail Promotions
Targeting Your Customer
Branding
Advertising
Signage
Publicity & Social Media
Sales Management
Customer Loyalty
Community Involvement
Contests & Events
Visual Merchandising
3
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
4
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
5
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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!
6
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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%)
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
8
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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!
9
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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!
10
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
11
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
12
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
Sure seems like we are
giving away the store,
huh?
13
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
14
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
15
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
16
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
17
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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!
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
21
Clipping Notebook Planning Calendar
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
23
What you need to get! How you will use it!
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
24
Outdoor Signs Inside Signage
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
Displays
Windows Floorplan
Neatness Ambiance
Image
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
26
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
27
Pros Cons
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.)
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
Your sales and service professionals are
the face of your business to your customers.
Management & Motivation
30
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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)
31
Salesperson Clerk
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
32
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
35
Management Motivation
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
36
Simple In Store System Loyalty Card Scanners
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
37
To the Store To the Customer
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
• 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
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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)
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
Why Coupons?
According to Advertising Age, 87% of Americans use coupons!
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
44
Professional Organizations Charities & Churches
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
48
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
Budget considerations49
Sample Budget Breakdown
BrandingLoyaltyTraffic
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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!
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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.
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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!
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
Copyright ©
2010 MI-SBTDCTM
. All rights reserved.
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
. All rights reserved.
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
Disclaimers
Top Related