By William J. Lynott
Today’s economy is rippled with uncertainty. One day, consumer confidence is up and things look promising. The next day, bad economic news casts a pall over the outlook. In uncertain times like these, it may seem natural to pull in your horns—take shelter until things look more promising, but that’s exactly the wrong thing to do.
The economy may look cloudy, but there are still plenty of potential customers out there. Your job is to ratchet up your marketing efforts while your competitors are slacking off. When the smoke clears, you’ll be stronger than ever and your competition will be wondering what happened.
Here are six ways to build your store’s business on a tight marketing budget:
1. Take action on something that most of your competitors only talk about.
The retail gift business is a people business; you sell your merchandise to people, not to objects. All of the Harvard Business School expertise in the world is no substitute for an understanding of that basic business principle.
The most effective, least expensive marketing technique for any gift shop owner is an uncompromising commitment to customer satisfaction. As you know from your own experience, it’s a pleasure to do business with a firm that keeps customer satisfaction at the top of its priority list.
Making certain that every one of your customers goes home with positive feelings about you and your store will turn those customers into walking advertisements.
2. Harness the power of the telephone.
Independent studies consistently show that the telephone remains one of the most underused business tools. In one study, researchers called 5,000 Yellow Page advertisers to say, “I saw your Yellow Page ad. How much does your service (product) cost?”
The responses clearly indicated lost opportunities. More than 78 percent didn’t bother to ask for the caller’s name. More than 55 percent took eight rings or more to answer. According to the researchers, many spoke so rapidly that the caller had a difficult time understanding what was said. Less than 10 percent answered the phone in a way that made the caller feel welcome.
To harness the power of the telephone as a marketing tool, you and your employees must regard every ring of the telephone as a marketing opportunity. Here are three simple steps that will help create that profitable first impression:
a) Try to answer the phone by the second or third ring. Taking too long to answer creates an impression of disorganization and lack of interest.
b) Speak slowly, clearly giving your name, your business name, and a phrase like, “How may I help you?”
c) Most communication experts agree that a smile on your face translates into a smile in your voice. Some storeowners place a mirror next to the phone so that they can see the expression on their own face when they answer.
3. Use cross-promotion.
Retailers are ideal candidates for cross-promotion—an inexpensive and effective way for non-competing businesses to help each other.
Here’s how it works: John, a printer, works out a cross-promotion arrangement with Laura, a small retailer in the same town. Each agrees to display copies of the other’s business brochure at their businesses. The cost? Nothing more than the cost of printing.
Combinations for cross-promoting are limited only by the participant’s imagination. Cross-promotion may include such tools as window signs or posters, discount coupons, or personal referrals.
How many businesses in your community are candidates? Probably many. Why not take the initiative and suggest a cross-promotion program with your favorite business owners?
4. Put networking to work for you.
People prefer to do business with people they know. If you need a plumber, an attorney, or any professional, whom are you most likely to call? A stranger from a listing in the Yellow Pages, or someone you know— perhaps a neighbor or the friendly fellow you met at last week’s Rotary meeting?
Service organizations such as Kiwanis, Lions, or the local chamber of commerce are populated with entrepreneurs and professional people, and most are as anxious to meet you as you are to meet them.
5. Get more mileage from your business cards.
Business cards are among the most inexpensive yet most underused shoestring marketing tools.
A carefully designed business card functions like a miniature billboard. Held at arm’s length it registers in the viewer’s eyes as apparently the same size as a 30-foot billboard viewed from a distance. And a good business card contains more useful business information than many full-sized billboards.
Use every opportunity to get your card into the hands of anyone who may be a prospect. Don’t wait for someone to ask for your card. Ask for the other person’s card, take the time to look it over, and then present your own.
6. Grab your share of the best publicity of all—free publicity
Advertising professionals know (but usually won’t admit) that free publicity is generally more effective than the best paid ads. Most prospective customers will be far more receptive to a simple news item about your store than a typical advertisement.
So, how do you go about getting a piece of the free publicity pie? First, you need to learn what makes a good story. Then you need to learn how to sell it your local news media.
Your news item doesn’t have to be of monumental importance to gain a free spot in the media, it just has to be “newsworthy.” That simply means there is something about your or your business that the public might find interesting.
Here are some newsworthy story ideas about your business:
• Employee news. Many neighborhood papers run columns dedicated to residents of the community. Such things as hirings, promotions, and special awards are ideal candidates for submissions to these columns. Another area of interest is employees who have unusual hobbies or who have performed public service to the community.
• Changes in your business. Most newspapers are anxious to run newsworthy items about local businesses. Any time you make a change in your business whether it’s an increase in the size of your staff, remodeling of your store, or relocation to new premises, you have an opportunity for some free publicity.
• Your own activities and accomplishments. Don’t be shy when it comes to publicity for you or your store. If you’re involved in community service, invited to speak to a local service club, have an unusual hobby, operate your store in an unusual way, or take interesting buying trips, don’t hesitate to grab a spot on the free publicity bandwagon.
To get free publicity for your business, you have to seek it actively. The media isn’t going to come looking for you. While it isn’t necessary to have a “contact” in the local press to get your share, it doesn’t hurt. That’s another reason to put networking to work for you.
Shoestring marketing techniques such as these may not seem as challenging or exciting as other methods for building your business, but they can be an effective and inexpensive way to add dollars to your bottom line.