Boost Sales in a Tough Economy
Considering today's tough economy, we decided to focus the Barwalt Advantage's space on ways to assist you with dealing with the issues at hand. We consider ourselves your partners and friends in the industry so we have been looking for information and ideas that we hope you will find useful as we all look for ways to be the best our companies can be in these challenging times.
As the economy slows, it's tempting to cut your sales and marketing budget. A better idea is to reassess the strategy. But watch out for the most common sales and marketing mistakes. If you are considering cutting your marketing and sales budget, due to the tough economy, why not take some time out to rethink your strategies first. New technology means you can reach more people, more cost effectively. Here are 14 common mistakes entrepreneurs make in times like these. Some are classic mistakes made from time immemorial, others apply directly to 2008.
Mistake 1: Entrepreneurs still confuse sales and marketing. Entrepreneurs often excel at marketing but are not so good at selling. Why? Selling focuses on the needs of the seller who needs to convert their product or service into hard cash. Marketing focuses on the need of the buyer -- satisfying the needs of the customer. Successful entrepreneurs are usually very market-focused and very good at satisfying the needs of the customer. But developing the skills to sell means acquiring a completely different skill set. What do the best entrepreneurs do' Keep the two functions separate, but ensure there is intensive knowledge sharing as the internet changes the roles of sales and marketing.
Mistake 2: It costs too much to get to the customer. This is a common mistake made in the small and medium business market. As you can not rely on customers finding you, you must find the customer. A key part of the strategy is to find multiple channels to market.
Mistake 3: Trying too few ways to get to market. Many companies should be trying out numerous paths to market, using the internet, a sales force, distributors or the channels of larger competitors or customers. While the multi-market approach can work, it can also be expensive.
Mistake 4: Not valuing "selling" skills. Be prepared to change quickly if you're not getting the results you want. Make sure you sales force is the best out there, trained not only in the art of selling but also experts on your products and services.
Mistake 5: Providing no compelling reason to buy. Do you have the best products in the marketplace? Products that people would die without, if they could not get hold of it right now! If a customer has a choice between a lot of products or does not have a compelling need to buy your product, your company will not grow fast. As the discretionary dollar increasingly stays in the wallet this year, marketers may need to remind clients that their products are essential, not a luxury. Watch out that your marketing team this year does not develop "feel good" ads that lack triggers to help the customer make the purchasing decision.
Mistake 6: Overcomplicating the product or the service. Keep it simple. Often entrepreneurs who come in to turn around companies say the first thing they did was cull back the number of products and simplify the offering. The explanatory literature accompanying products also needs to be presented simply by professional copywriters. As time-poor people increasingly scan information, lengthy explanations on how things work that is bogged down with product features are out.
Mistake 7: Failure to make the most of email marketing. Email marketing is an art. Develop your database continually by offering prizes, competitions and give aways. Work out the best time and frequency to target people. Use your offline advertising to drive people to sign up to your database. Also, if you do use the internet for sales, remember that a paid search campaign is critical. As words get more expensive, make sure you have an expert bidding for the right words.
Mistake 8: Marketing in short bursts. Don't. Keep your name out there constantly, any way you can. Highly successful entrepreneurs develop very close relationships with the media. They can be relied on to give comment on an issue, be launching a new way of doing business, or providing off-the-record gossip. It is a very cheap way to get your message continually out there.
Mistake 9: Taking word of mouth for granted. People will tell others all about your great products and services; right? Well, don't take it for granted. Use "Send to a Friend" campaigns, viral campaigns or ambush marketing.
Mistake 10: Letting customers speak to machines instead of people. No explanation needed.
Mistake 11: Ignoring new ways to advertise. It is becoming more popular to place your advertising where your customers are and when they are in the right frame of mind. New trends range from putting your name on coffee cups, street umbrellas and even naming hiking tracks after your brand, as well as having your name on a street sign when you sponsor a section of "clean street" in your community.
Mistake 12: Not fighting hard enough when a major client is walking. Never take a major client for granted. And never accept them walking away. Entrepreneurs tell stories of working for two to three months for nothing in order to make up to a client. And they never regret it.
Mistake 13: Being cut out of the complaints loop. If you don't know if customers are complaining, because someone lower down the food chain is taking the calls, change the system instantly. Either receive a regular report on complaints or ask for complaints to be brought to you directly.
Mistake 14: Lacking integrity. As the economy becomes more difficult to read this year, consumers will turn to trusted brands. Make sure your brand is seen as credible and your company has integrity.