Archive for May, 2012

Social Media and Small Business Part 1

Tuesday, May 29, 2012 by:David Zahn
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One of the first articles ever published as part of this blog was a spotlight on a local business that was just being formed.  That business, Gumdrop Swap has succeeded and grown from those inspiring start-up days.  Now, years later – the proprietor, Gabby F. has become somewhat expert in the use of Social Media.  Therefore, I recently followed up with Gabby and asked her to share some insights.  This will be a two-part interview series.  Part 1 is below.

Gabby F. in front the successful startup - GumDrop Swap.

1. How does social media (Facebook, Twitter, Pinterest, etc.) replace/supplement more traditional marketing methods (Advertising, PR efforts to be interviewed, holding events in the hopes that the media will cover it positively)?
Social media can be the great equalizer between big and small businesses. As a small business, you have the same potential to create a compelling campaign as a big corporation. Money doesn’t guarantee Facebook likes. Just look at GM pulling their Facebook ads recently. Everybody knows they make cars, how compelling could their ads have been? But a small business with a unique product or mission can quickly gain popularity. The more people that know your brand (your social reach), the more potential customers you have. A small business relies so much on word-of-mouth referrals. With so much technology, social media has replaced true socializing. So you need people to sing your company’s praises, share links, like, retweet, pin, etc. People text another person in the same house they’re in! If you ignore this shift in the way we consume and share info, your business is doomed.

Depending on what kind of work you do, traditional marketing methods may still be warranted. If you make a consumer product, you may benefit from an ad in a magazine that targets your audience. If you are an event planner, you should do a press release and invite news outlets to your event. The key is knowing your target audience. Young moms probably aren’t reading a printed newspaper. But if your business has something to do with finance, you would have the attention of the Wall Street types that read the paper on the train each morning. Whatever you do, you need to compliment traditional marketing with social media. If you are a micro-business with little to no marketing budget, the bare minimum web presence should be a website (could be a single page glorified business card) and Facebook page. If your business caters to women between the ages of 25-40 and your business has some visually stimulating element (interior designer, artist, fashion, etc) then you should probably get a Pinterest account which became very popular among this demographic.

2. What are the “tips and techniques” you have learned through your use of social media)?
Facebook is the media titan currently. Before it goes the way of Myspace, I find it to be a useful way to engage and interact with my potential customers (fans). Old fashioned marketing meant casting a wide net and hoping to snag some customers. I love the way Facebook ads let you scale down your target audience by gender, age, education, and even specific interests. You can even target people who are friends of people that are already your fans. But unless you have a specific promotion going on, I wouldn’t create an ad just to get Likes. If you provide a service or have a retail location, you may want to invest the time into writing a blog. Blogs quickly move up in Google ranking because the content tends to be updated more frequently than a website. WordPress blogs have so many widgets now, you can even sell product directly from the blog with a store widget. If you need help with social media or want a website built for an affordable rate, I recommend http://330made.com. They’re Fairfield County based team of entrepreneurs that have been there, done that when it comes to building their brands with a grass-roots approach.

As an example of how the business “practices what it preaches,” Gumdrop Swap is currently seeking to raise funds through a grant program being conducted through Social Media avenues.  The details are below:

Chase and LivingSocial are awarding up to 12 $250,000 small business grants through their Mission: Small Business contest. Each qualifying business must get a minimum of 250 votes from Facebook users. If GumDrop Swap were to win the grant, we would use some of the money to move into a larger storefront on Main St which would allow us to better serve my customers. You can imagine how a grant this size would impact the business and the community. We will finally be able to hire help and have vowed to hire locally.  To vote, go to http://www.missionsmallbusiness.com/ and on lower right click “log-in & support”, then search for “Gumdrop Swap” in the search bar to vote (no need to enter city/state), then click “vote”.

Source and Select For Success

Wednesday, May 23, 2012 by:David Zahn
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As the economy slowly seems to be turning more positive and companies are tentatively considering returning to hiring the staff that they have had to do without over the last few years; there is renewed attention being paid to how to go about securing the best candidates for job openings.  However, approaching this important decision in a non-strategic way can lead to difficulties for both the prospective employee and the company.  It is therefore important to follow a proscribed process to ensure that the chance of errors being made is kept to a minimum.

What is needed?

The first step is to determine what are the gaps, needs, or requirements for the business to succeed in both the short-term and long-term.  Going through the process of not only thinking of the immediate future, but how the position will evolve and grow over time and how the hire is expected to fill current versus future needs.

A job description will help clarify what is “in scope” for the position and what is out of scope.  Merely seeking help with “Marketing” is far  too broad.  Does the business require Public Relations help?  Advertising?  Website development? Or other needs?  A good resource for writing job descriptions is this article.

Turning over rocks

Looking for good employees can sometimes feel like turning over rocks.Once the parameters of the job have been determined, it is necessary to go and find suitable applicants with that background.  Associations, school career centers, articles published by authors with experience in the field, and personal networking contacts can all provide introductions to people with the right experience.  Other commonly used methods include hiring recruiters with experience and “tentacles into the industry,” posting jobs on websites, or in commonly read publications relevant to the industry or geography of the position’s location.

Each of these will require some trade-off in expense, time investment, and involvement in sorting through the potential applicants before making a determination to continue their candidacy for the position.  Given the economy still has a large number of people who are unemployed or under-employed, it is not uncommon for job postings to generate hundred of applications (many of which will be deemed to be outside the needs of the position).

Reviewing Candidates

The first step is often the resume.  Given that there are likely to be a large number of applicants, many companies or hiring managers will look for reasons to eliminate (rather than seek reasons to hire) applicants.  So, misspelled words, unexplained gaps, poorly organized content, or lies (schools attended, positions held, companies worked for) etc. will often eliminate the applicant from further consideration.

The next step is often an interview with the applicant.  If the applicant is unsure of what the resume includes, cannot speak knowledgeably about the experience, industry, or position requirements, etc.; it often raises concerns for the hiring manager and places that applicant in the “do not hire” pile.  Additionally, if the applicant does not show up on time, has poor hygiene, manners, or social graces; it can also relegate the person to the “do not proceed further” grouping.  Even in positions that are remote or do not involve social engagement – any factor that can be used as a negative differentiator will often work against the candidate.

One technique in common use today is the behavioral interview where rather than just asking what the applicant did or accomplished; the applicant is asked to provide an example of how they would approach an issue or when they previously did something and what the impact/process/techniques employed/etc. were for the company, themselves, and others.

As robotic as it seems, following up on references is highly recommended. Conventional wisdom would have you think that a reference listed would have been pre-screened by the applicant to ensure that only the most positive feedback would be given.  Yet, time and again, it has been shown that applicants do not do “due diligence’ with their references and when employers call or check on references – the response is lukewarm or even negative.

Success for the company and the new employee is predicated on doing the right things pre-hire and during the process of hiring.  If the strategy used to source and select employees is not aligned with the current and future needs of the business; the chances of it succeeding are dismal.  And, having to re-enter the process to try to correct a mistake in hiring initially is a further drain on resources and can be a distraction with implications for the organization and other employees.

Presentation Strategy

Tuesday, May 15, 2012 by:David Zahn
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  • It is part of almost any sales cycle that is beyond a “self-serve” purchase. With the exception of certain retail sales where the customer or shopper is expert enough to determine his/her needs alone and decide on the best product fit to accomplish the goal, a sales person will be involved. During that involvement, there will often be a presentation offered by the sales person to explain how the product or service accomplishes the meeting of the customer’s need(s).

Here Come the Yawns

It is at the point where the lights go out and the PowerPoint application is accessed that many customers silently pray for an electrical power failure.  Here is why:

  1. Presentations should excite, not bore buyers.

    The presentation is a long and unnecessary series of patting the presenter on the back delivered by the presenter (“I did this, we were first to do that, we are the best at, etc.”)

  2. The presentation includes too much text in way-too-small font to be read and understood
  3. The presentation is read word-for-read by the presenter without providing context, insight, or offering a point of view
  4. The buyer is not addressed in any meaningful way.  There is no attempt to “put the buyer” into the picture.
  5. There are no clear “next steps” or call to action that advances the purpose of the presentation.

So, buyers are forced to wonder how to apply the information offered to their own situations and essentially link the seller or seller’s organization’s capabilities to their own needs without the benefit of the seller connecting the dots in the presentation.

Current Example

I am currently working with a very progressive executive who recognizes that the existing template being used by the sales force (of about 25 sales people calling on national accounts, large regional accounts, and smaller progressive accounts) are becoming less effective at convincing these accounts to increase their order size with the company.  Competitors offering lower priced (and lesser quality) products are encroaching on market share, unit volume, and total dollar sales of the executive’s company.

In working with this executive and his staff,  some of the key objectives we have collectively agreed upon are:

  • The importance of “telling a story” and not just listing facts, details, features, etc.  The presentations should have a theme, a purpose, and be very specific about answering how the buyer stands to gain from working with the company and their products.
  • Sharing how the company is different than competition.  Not just in a comparison of product, but in their methods, marketing strategy, customer service, and other aspects of corporate performance.
  • Explaining the following to the buyer:

                     – WHY it is important to act or take actions

                      – WHAT is to be gained, lost, avoided, pursued, etc.

                      – WHO is responsible for each step of the way

                       -  HOW the business will be impacted (the benefits)

A great place to start in learning how to present is with this video http://www.youtube.com/watch?v=BqcEYTM7ogE.  There are numerous books and videos on the subject, but the importance of answering the questions above cannot be over-enphasized.  Talking about oneself without addressing the needs of the customer will surely lead to eyelids fluttering and snoring soon to follow.

Creating a Marketing Strategy

Monday, May 7, 2012 by:David Zahn
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At the core of every business are certain fundamentals. Among them are the ability to produce a product or service, deliver it to a customer, and collect payment on it. However, without the competence to link prospects and customers to the business; there isn’t any ability to engage in the other competencies. That ability – to communicate with the market and generate interest in the business – is what Marketing is designed to provide.

However, Marketing is best performed when it is approached in a strategic way that is orderly, organized, and selected to achieve a very specific objective.  It therefore requires an understanding of what levers to pull to accomplish different outcomes.

Marketing requires knowing what the target is before taking action.

The Goals

When approaching a marketing decision, there are a number of goals that can be accomplished, but it is important to know which one will enhance the busines’ needs most immediately.  Those goals are:

  1. Outreach
  2. Credibility
  3. Visibility

Outreach refers to the engagement of a prospect or existing customer very directly.  Speaking with or sharing personalized or customized correspondence (emails, letters, etc.) that are specific to that customer.

Credibility is providing expertise that is perhaps industry or function specific and demonstrates knowledge and insight; but is not being uniquely focused on a particular client.

Visibility is taking efforts to gain awareness for one’s services through various publicity-seeking activities.

Specific Tactics

Each of the above goals is best met through linking specific tactics and actions to that effort.  Some tactics can straddle two goals simultaneously. For instance:

Outreach

  1. Direct Contact and Follow up – talking with existing customers or personal interaction with prospects.
  2. Networking and referral seeking – speaking with people who know your company, you, and the work you have accomplished with others.

Credibility

  1. Networking and referral seeking
  2. Public Speaking – addressing groups of people with similar interests or affiliations.
  3. Writing and Publicity – article writing, interviews, or other demonstrations of expertise.

Visibility

  1. Promotional events – conducting parties, attending trade shows as a vendor or exhibitor, etc.
  2. Advertising – the placement of marketing messages in support of a company, product, or service.

The order of effectiveness is ordinarily as presented in terms of generating the most immediate increase in sales with the direct contacts taking precedence over the more diffuse and specific methods.  Of course, the marketing effort chosen must align with the needs of the business.  If the business has a large number of people who have expressed interest in the product or service, but are not currently being contacts – then the Outreach efforts are of paramount importance.  However, if the pipeline is not sufficient to lead to the level of revenue required or needed to sustain the business or achieve targeted results; then it may be appropriate to look to increase the awareness and visibility the company has in the marketplace.

A helpful resource for those seeking to better understand the various approaches to marketing and increasing existing customer sales while generating new customer sales, is the book, Get Clients Now! written by C.J. Hayden.  Marketing need not be mysterious and should not be seen as simply an expense with no return.  By linking the specific tactics of marketing back to the intended goals, marketing can be approached with a much more targeted focus that delivers strategic results.

Consultation on Consulting

Tuesday, May 1, 2012 by:David Zahn
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Being known or introduced as a consultant often leads to one of two reactions.  The first is people assume I am between jobs or unemployed and then quickly excuse themselves to go refill their drink glass.  The other response is the pursuit of “free advice” under the guise of being curious or making conversation. One of the most commonly asked questions I get whenever I am in a social setting or informal gathering among friends or neighbors is about choosing or selecting consultants.

When seeking a consultant, be sure you know what to look for.

Now, to be clear – every business person needs or is seeking advice on something.  And, if asked (and upon occasion, even when not asked), experts will eagerly and happpily share it.  But, just by virtue of being an expert, not all advice will necessarily be good or appropriate.  At the risk of “biting the hand that feeds me”, it may be illustrative to think through how consultants SHOULD be assessed and hired. 

Who Qualifies?

There is no easy to access source that will validate who truly is an expert or worthy consultant and who is not.  In fact, a key problem clients confront is that nearly anyone (or everyone?) claims to be an expert.  Determining which claims to believe and which to ignore are difficult for even the most sophisticated buyers of services. 

I am not looking to disparage all consultants or experts.  And, in proper context, they serve a tremendous purpose for clients. In fact, we all NEED consultants and experts.  As a homeowner, I need to have a working furnace.  However, I could not repair it if I were given all the time in the world.  Similarly, many of my clients can produce terrific products.  Yet, they are not expert at employee assessment, training, organizational design, etc.  Fortunately, enough of them recognize that they need that assistance; and a sufficient number of those appreciate my skill at providing that.

Five Qualities to Look For

1. The voice of experience

If hiring a consultant, it is typically advisable to seek someone who has actually done the work or provided the results being sought for other companies.  Experience counts.  Academic preparation matters – but pales in comparison to the “field experience.”

2. Look for the Cattle 

There is a saying that some people are “all hat, and no cattle.”  It is relatively easy for someone to get their work or thoughts published.  Once published, then they seek to leverage that credibility by plastering it across the blogosphere with their 3 step approaches, six color typologies, or theories based on five letter acronyms.  Seek someone who not only writes, but has a reference list of clients and testimonials.

3. Disconnected from the end user

Be wary of the consultant who is quick to answer questions from their perspective without soliciting the actual end user or buyer’s views.  Any consultant that thinks they represent the needs, thoughts, feelings, etc. of the “market” is either delusional, misinformed, self-impressed, or out of touch.  No advice should be trusted based on a single data point – even if that one data point is the “esteemed and eminent great consultant’s.”

4. Seeking education 

If a consultant is not constantly seeking to further their own insight, skills, education, etc. than they are most likely stunted in their own growth.  A confident consultant knows that s/he is not the exclusive holder of truth or right and seeks input of others.

5. has more than a hammer in their toolbox

An expert doesn’t try to “force” a single solution into every client situation.  While expertise may mean a deep knowledge of one function, approach, method, etc.; it does not mean that it is the answer to every question. To apply this knowledge on your behalf, the expert must learn about your business. If the consultant does not seek to understand the unique dynamics of your business, industry, company, etc.; you may be getting a one-size-fits-all solution that truly fits no one. 

While there is no one uniform resource to check for consultant grades or evaluations, feel free to check with friends, industry associations, and even the Better Business Bureau to see if there have been complaints.