CHAPTER 6
marketing and sales strategy

Many a small thing has been made large by the right kind of advertising.

—Mark Twain

EVERY BUSINESS needs a strategy to identify and reach customers, and to get those customers to buy its product or service. That’s why your business plan must include a section devoted to marketing and sales strategy. This is where you define the market opportunity and describe who your customers are, how you are going to reach them, what you are going to charge them for your product or service, and how you are going to convince them to choose your business over a competitor’s operation.

Who Are Your Customers?

In the last chapter I discussed business purpose and core values. Your answer to that initial question—What’s your purpose?—will help you define your target customer.

Keep in mind that your business can’t be all things to all people. No matter how broad you consider the appeal of your product or service, not everyone will be interested in it. That’s why it’s important to identify the appropriate niche for your business—your “sweet spot,” as some people say. This identity will serve as the foundation for all your marketing strategies. Always keeping that niche in mind will prevent you from making costly mistakes.

When you did the research for your business plan, you defined the market opportunity. Now, as you begin to develop your marketing strategy, start with that global overview of your market. How large is the industry, and what are the current trends? For example, the American Pet Products Association said that, in 2010, Americans were projected to spend about $47 billion on their beloved companions. And it was anticipated that the pet industry would grow at about $2 billion annually. Those projections demonstrate a strong industry, and that should bode well for you if you’re venturing into pet-related products or services.

Once you have reviewed the industry information, whittle down the numbers to determine how much of that market you might be able to capture. Your target market consists of the customers you believe are most likely to buy your particular product or service. For example, your ideal customer or client may be a dual-income family with a household income of over $100,000, two children, and either one or two pets. Utilizing census bureau information or other reference material, you should be able to estimate the number of families in your area that fit that description. Once again, understating your market opportunity is always better than overestimating it.

You can search online to find industry data, and trade associations are helpful as well. Here are some sources of useful information. (Also see the Appendix at the end of this book.)

• Research companies such as Dun & Bradstreet, Standard & Poor’s Investor Services, and the Risk Management Association; all publish directories and industry surveys.

• FedStats (www.Fedstats.gov) is a website that provides statistics from more than 100 agencies.

• The U.S. Department of Commerce (www.doc.gov) provides demographic statistics on American families.

• Your local Chamber of Commerce and economic development council should have helpful demographic information for your local region.

• Small Business Development Centers (SBDCs) are an excellent resource to assist you in defining your potential target market. The SBDCs are affiliated with the U.S. Small Business Administration. They have access to both federal and local demographic statistical information.

What’s in a Name? Everything.

Your company name is part of your business brand. The right name can help you attract business, while the wrong name may hinder your growth. So, it is worth your time and effort to think about a name that is not just a name, but that is also an integral part of your marketing strategy.

Unless you’re a licensed professional and your name is your business (e.g., a CPA, attorney, or doctor), you may want to avoid using just your name as your business name. For example, in my late twenties, I owned a small boutique public relations and advertising firm, which I named Wilson & Associates. It wasn’t the best name—certainly not very creative for that type of business, and it didn’t explain anything about what I did. On the other hand, when I practiced law as a solo practitioner, using my name made sense.

To find the right name for your new business, start by making a list of all the valuable things your company offers, including intangibles such as good customer service, fast delivery, and other attributes. Then have some fun. Play around with words and ideas that relate to those concepts. Invite others to get involved, too. Sometimes people who aren’t as close to your business idea can do a better job thinking up names than you can.

One of my companies is Susan-Says.^® When I launched the company, I was focused on writing books and doing public speaking to inspire and help women to succeed in business. I was also teaching a women’s entrepreneurial training course at the local community college. So I took the opportunity to use my new business as a case study for the class on creating a name. “Susan-Says” is the result of one class member’s saying “It should be ‘Susan Says’ because women have done what Simon says all these years, and it’s time to do what Susan says.” And that was that.

But generally speaking, avoid being too cute or clever, because humor doesn’t always translate well. While you may think the name is catchy, someone else—perhaps your potential customer—may not get it. Also, be careful not to infringe on someone else’s business name. That can be a costly mistake. Check with your secretary of state’s office and the U.S. Patent and Trademark Office online (www.uspto.gov) to see whether the name is already taken. Even if the name is available, make sure it isn’t too similar to one of your competitors’ names. You don’t want to create confusion or have a customer who is looking for your business go to a competitor by mistake.

Generally, it’s best to avoid geographic identifiers in your business name unless you’re sure you will never do business outside your immediate area. The exception would be adding a geographic location when conveying something positive about the product, as in some brand-name wines, coffee, and so on. For example, Panera Bread, a chain of bakery cafes, was founded in St. Louis, Missouri, and was originally known as The St. Louis Bread Company. When the chain began to expand through franchising, the name was changed to be better suited for other parts of the country. So, in choosing a name, you need to consider possible future geographic expansion. And keep in mind that when doing business on the Internet, you’ll want a name that potentially works across the country and around the globe.

You should also avoid an alphabet-soup name. The government has enough of those—acronyms for agencies and programs: SBA, DOL, CCR, NAIC, OSDBU, and so on. Letters are difficult for people to remember, so be cautious in using initials in your business name.

As you’re naming your business, think about a tagline you might use as well, and make sure the business name integrates well with it. And by all means, keep the business name short and simple; make it easy for people to remember.

Because every small business today needs a strong Internet presence, when you’ve narrowed down your list of names, check to see whether the domain is available. It’s important for your domain to closely resemble your business name because, again, it makes it easier for people to remember your URL. Also, avoid using hyphens and domain endings such as .net, .biz, and .us. If you’re worried that someone else will hijack your business name by taking one of those, then go ahead and register it, but a .com is the preferable domain ending for a business. And the advice about keeping your business name short and simple applies to your domain address as well. Lengthy business names and complicated domains are difficult for your customers to remember.

Naming your business can be lots of fun, but be sure to take it seriously, too. Once you’ve named your business, it’s hard to change it down the road. It’s not impossible, but it is difficult.

How Will Customers Find You?

Identifying the right marketing tools to reach your target customers is a challenge for every small-business owner. While going through all the critical steps to get to the point where they can open for business, many owners don’t think ahead about how they’re going to get customers or clients to come through the door. It’s not as simple as announcing to the world that you’re open for business. Initially, a few people may trickle in, but how will you drive the volume of business you need to be successful?

That requires a marketing plan. The big questions for a start-up business—or really for any small business—regarding marketing are: Where do you find the money to market your business? How do you know which are the best tools to use?

Here’s my advice on marketing strategy. Use the “MACS” principle: massive amounts of common sense. By using common sense and taking advantage of the excellent, inexpensive marketing tools available today, a small business can build considerable brand buzz and ramp up its revenues.

Understanding the Marketing Basics

“Marketing” is an umbrella term that covers a wide range of functions, including sales, branding, public relations, brochures, logo development, direct mail, advertising, Internet strategy, newsletters, and merchandising (i.e., promotional products such as coffee mugs, pens, and magnets). Marketing is so complex that unless you’re a marketing professional it’s impossible to understand all the nuances involved with each discipline. As your business grows, you can work with a marketing professional to develop appropriate strategies for your brand development; but initially, there’s much you can accomplish on your own.

Once you know who your target customers are, you can focus on strategies to best reach them. Mass media outlets such as radio, television, and newspaper advertisements are rarely the appropriate answer for a start-up. Why? For one thing, they are expensive. And then, you’re paying to reach a lot of people who in most cases will never be interested in buying your product or service, and that’s wasteful. Remember: massive amounts of common sense!

Unfortunately, many new business owners get lured into believing they have to make a big splash with their marketing in order to get the word out. Entrepreneurs frequently email me wanting to know how to get capital so they can run a television campaign, which they believe will solve all their marketing problems. Before they know it, they’ve invested a load of money, and yet they either have nothing to show for it or they’re not equipped to support the level of business this kind of advertising drives.

Some Early Missteps

You may remember the popular sock-puppet television ads for Pets.com. The site was launched in February 1999, and it sold pet supplies to retail customers. Its high-profile marketing campaign featuring the sock puppet quickly made it a widely recognized brand. In fact, the sock-puppet spokesperson was interviewed by People magazine and appeared on Good Morning America. Unfortu -nately, the infrastructure of the business could not support the overwhelming attention and sales the marketing campaign drove. As a result, the company lost money and was out of business by November 2000.

Another great example is that of a wildly successful entrepreneur, E. Desmond Lee, a classmate, peer, and friend of Wal-Mart founder Sam Walton. Lee founded a company that manufactured trouser creasers in the late 1930s, and he eventually built the company into an international source for manufacturing and distributing closet organizing systems. But in the early days, Lee was an unsophisticated businessman, and with just one major misstep, he nearly put himself out of business.

“The head of an advertising agency came to us with the idea that we would have an artist create an advertisement showing a model hanging a pair of trousers on the clothes line to advertise the pants creaser. It was a full-page in color and was to run in Better Homes and Gardens, movie magazines, Good Housekeeping, and Life. The total cost was about $200,000,” Lee explained.

At the time, the company’s annual revenues amounted to no more than $300,000. Nonetheless, dreaming of the big time, Lee made the decision to undertake the national campaign. “We had three inquiries and we didn’t sell a single item,” he said. “We were strapped financially. We were out of cash to pay our employees. Plus, there were other unpaid bills. We were nearly broke.”

Don’t you go broke trying to reach customers. Here are the most important things to remember.

1. “Open for business” doesn’t mean business will come.

2. Always focus on your target market.

3. Never create expectations you can’t meet.

4. Bigger and more expensive doesn’t necessarily mean better.

5. Don’t let your ego drive your marketing decisions.

Focus on Substance, Not Sizzle

Your business brand comprises all aspects of your business, including your office location, your marketing materials, and your phone answering system. New entrepreneurs, particularly those who come from corporate environments, often get paralyzed by perfection. Even before they open their doors, they think they must have the “right” image—which, by inference, means expensive. They set up an elaborately decorated office space, design fancy marketing materials, and invest in an elaborate Internet presence before they open the doors.

Don’t spend money on fluff. People often invest a lot of money in window dressing because that’s the way things were done at their old, brand-name companies. That’s not surprising because large corporate entities have correspondingly large budgets. But high cost isn’t the only problem with this marketing fluff; such things take a great deal of time to complete. I frequently hear comments like, “I’ll be ready as soon as I get my marketing brochures printed”; “Once I get the design finished … “; and “I’m waiting for my new logo.” Excuses, excuses, excuses. Successful entrepreneurs are already out the door, bringing in the business.

You can’t afford to make the mistake of doing things the way they were done when you were an employee at a large organization. The small-business lifestyle is all about bootstrapping—looking for ways to get things done quickly, professionally, and inexpensively. Entrepreneurs learn how to do a lot with very little.

The good news is that you don’t need a big budget to look big. Technological advancements offer tremendous opportunities for small businesses to create a professional image without incurring significant costs. There are some types of businesses you can launch for as little as a few hundred dollars in start-up capital. Yet, I’ve seen some new business owners spend thousands on just a company website.

In today’s business environment you can have champagne taste on a beer budget. For example, if you need office furniture, look for a store selling refurbished office furniture in your area. Many new business owners find used office equipment and furniture on sites such as eBay and Craigslist. One business owner I met bartered his services for the furniture, equipment, and marketing materials he needed to get his business started—about $200,000 in value.

Even if you have ample funds to invest in your business start-up, don’t blow them all up front on window dressing. Set some aside for a rainy day. It is smart to maintain cash reserves for working capital so you don’t find yourself in a cash-flow crunch.

Define Your Marketing Message—and Be Consistent

Before you start choosing your marketing tools, know what you want to say. What is your marketing message(s)? You may adjust your marketing message periodically, or you may have different messages for different audiences, but focus on something from the start and be consistent. Here are some guidelines that will serve you well:

• Be concise. You don’t need to include everything there is to know about your business in your marketing materials. Go back and review the purpose, promise, principles, and core values you established for your new company. What makes you different from everyone else in the market? This will be an important part of your marketing message. Stand out from the crowd and give people a reason to patronize your business instead of a competitor.

• Be consistent. Don’t confuse people with too many things, and don’t change your message frequently. A simple consistent message is easier to remember. It takes time for your message to cut through the clutter and be heard. So if you want your message to resonate, you must repeat the same message time and time again.

• Focus on the customer. Always create marketing messages that feature the customer, rather than your product or service. It is what’s commonly known as WIIFM—what’s in it for me. For example, let’s say you’re a car salesperson and the car you’re trying to sell is equipped with state-of-the-art antilock brakes that can keep you from having an accident. Instead of relating to your customer the technical features of the brake system, share a story. Obviously, the fact that brakes are a safety feature will appeal to your customer’s concern for safety. So you could explain how your customer’s family won’t be at risk if there’s a major snowstorm because of this car’s state-of-the-art antilock brakes. See the difference?

As I noted earlier, your key messages may be different for different audiences. As the business owner and primary sales representative, you listen and learn what each audience wants and then align your message accordingly.

• Deliver on your promises. Never guarantee something in your marketing materials unless you are absolutely positive you can deliver on that promise every single time. Establishing expectations with your customers or clients and not living up to them will tarnish your reputation quickly. News of bad service and unfulfilled commitments travels fast.

Make sure all of your marketing messages match your actions. This is known as brand integrity. Many business brands make the terrible mistake of saying one thing in their marketing and doing something else when it comes to delivering their products or ser -vices. If your marketing campaign says that customer service is paramount, but you have people in your organization who ignore complaints or don’t respond in a timely fashion, then you minimize the effectiveness of your marketing efforts. Again, walk the talk.

Select the Right Marketing Tools for Your Business

Smart business owners make sure their marketing dollars are directed to the right people. Are your potential customers involved in a certain type of community activity? Do they belong to a particular trade or professional association? Identify where, how, and when they consume information, and see to it that your message is there, too.

What focused marketing tools should you use to reach your customers? In the confines of this book it would be impossible to cover the endless marketing avenues available to a small business. Check the Appendix for more detailed assistance. Here, I’ll highlight some resources I find most effective for the majority of small businesses.

Customer Interface

We aren’t living in a nine-to-five world anymore. Americans are working longer hours than ever before, and look for services that match their schedules. Therefore, if you want to succeed in business you need to be available when your customers are most likely to want your services or products.

Don’t set your business hours arbitrarily. You need to listen to your market. For example, I worked with a dentist who had been in practice for many years, yet was losing patients. He tried a variety of traditional marketing methods, including radio advertisements, but nothing seemed to turn the tide. I had suggested he get feedback from his patients, particularly those who had not scheduled an appointment in some time. So he created a survey and emailed it to his patient list.

What he learned startled him. His office wasn’t open during the hours that were convenient for many of his patients. The dynamics of the business environment had shifted, but the dentist hadn’t made appropriate adjustments. Worried about their job security, patients weren’t willing to take time off to go to the dentist during a workday. And the dentist’s office was open only one evening per week and one Saturday per month. In response to this information, the dentist changed his office hours. He opened three Saturdays each month and increased his evening hours significantly. As a result, his patients responded and his practice picked up.

It is up to you to make it easy for your customer or client base to do business with you. To succeed in a competitive environment, you must meet consumer demands. If you aren’t there when customers want you, your competitor will be.

Internet Presence

If you’re in business today and you don’t have a website, you’re just being plain stupid. The number of people who turn to the phonebook to find a business is rapidly shrinking. So, if for no other reason, you need a website so your customers can find you. If you aren’t on the Internet, they will find someone who is. Think about all the smartphone applications that search for businesses, locate them, provide directions, share reviews, and link to the business website for more information. Once again, it’s just MACS—massive amounts of common sense.

Thanks to technology, it’s extremely affordable for a small business to create an Internet presence. The first website I developed for one of my businesses cost about $10,000, and it was a static online brochure that I couldn’t manage myself. Today, there are myriad resources offering design templates, so even the most technologically challenged individual can create a site in a relatively short amount of time. Many of these resources include domain name registration and hosting services for free, or just a nominal monthly fee.

To make sure your site really works for your business, commit to adding fresh content on a regular basis. That is, give people a reason to come back to your site. For example, offer a tip of the day or week, or perhaps a weekly special or discount. You might profile one of your customers (with the individual’s permission) as a case study. You can also spotlight a new product offering or provide some timely industry-related information.

Make your site as user-friendly as possible. Don’t clutter it with numerous fancy fonts. People aren’t interested in a complex display or clicking their way through a maze. They just want what they want when they want it. And this sounds really obvious, but be sure to provide a way for people to contact you. It’s very frustrating when someone has a question and there is no “contact us” information.

You can also use your site to capture customer information and email addresses. The more you know about your customers, the better you can serve their needs. With a database of email addresses, you can develop communication programs that allow you to stay in touch and remain at the forefront of your customers’ minds.

Post links to positive media coverage your company has received. This adds credibility to your business. If you are capturing emails on your site, you can also forward to news coverage links to your database.

Finally, your website should be mobile-friendly. Because customers today want everything at their fingertips, chances are they’re accessing your site via their smartphones. Many refer to this as the golden age of the empowered consumer. The “Golden Entertainment and Media Outlook 2011–2015” from PricewaterhouseCoopers found that smart-phones will account for 37 percent of online expenditures by 2015.

Public Relations

A television or radio interview. A magazine article. An Internet blog posting. All of these are opportunities that could help your business gain credibility and build awareness in the marketplace. In the past, it was expensive to hire a public relations firm to help a business attract media attention. Now there are simple ways in which you can turn your business into a media magnet, as I’ll explain here.

Once again, it’s important that you understand your message and define your objectives. In the past, it was common practice to distribute press releases everywhere you could—the old throw-the-spaghetti-against-the-wall-and-see-what-sticks approach. Not anymore. Just as you target your customers, you need to target the appropriate media. Identify the media outlets and specific journalists who cover stories pertaining to your industry or business. Pay attention to what they write about and how they cover the topics. How do you and your business connect with their interests and their audience? Then begin to develop a media contacts list.

When you’re ready to reach out to a journalist or blogger, make sure what you’re pitching has a newsworthy angle—and that it’s not just an advertisement for your business. Whenever possible, tie your pitch to a current news story or a timely issue. At ItsYourBiz.com I get countless media pitches, even from PR professionals, who send information about a person or company and offer me their availability for an interview. There is a slim possibility that I might be working on a related story when that information lands in my in-box, but in most cases, I just hit the delete button. To be effective in attracting media attention, you need to find a news hook and help the journalist see the story angle.

For instance, become a media resource by subscribing to services such as Help a Reporter Out (www.helpareporter.com), which is free, or ProfNet, which charges a subscription fee. Journalists use these tools to submit queries pertaining to stories on which they’re working. Some of the media outlets on these services are small, such as Internet radio programs, but there are reporters and producers from major outlets as well. Your success depends on knowing the appropriate way to respond to a query. Help the reporter understand why you are the best person to be interviewed. Provide several key bullet points that you are prepared to discuss in reference to the story. Bombarding the reporter with paragraph after paragraph of information will only cause him or her to delete your response immediately. Also, not providing enough information concerning the specifics you’ll discuss regarding the topic will most likely knock you out of the running.

There are press-release distribution services you can use that make it easy for a small-business owner to manage the process and reach a host of media outlets. A well-written newsworthy release may be picked up and used in its entirety today because of reduced staffs at many media companies. To capture a reporter’s attention, identify a problem to feature in the headline and then explain why your business is the solution. Provide credible information and advice that will be helpful to the audience.

Many local media sites offer places to post your press releases. Some of the free press-release services include Prweb.com, Prfriend.com, Free-press-release.com, Express-press-release.net/free, and eReleases.com. There are also subscription services, such as PRNewswire.com, dBusinessNews.com, and PitchEngine.com. The benefit of using a paid service is the additional SEO (search engine optimization) and tracking benefits you receive. After you’ve distributed the release, sign up for alerts from the various search engines, such as Google, so you’ll know if someone picks it up.

It’s helpful to establish an area on your site posting your news releases. Sometimes media sources will read current news releases in order to get background information on your business. Additionally, if you have used strategic key words when you posted them on your site, you may attract search-engine traffic.

Social Media

“Social media” is a broad term that encompasses everything from blogs and podcasts to community networking sites. Using social media gives you a platform to share information and be seen as an expert in your business field.

Small-business owners are rapidly embracing social media. About half of them say that they are leveraging social media to connect with their customers and increase their sales (though social media should rarely be used as a direct sales tool). Social media provides a unique way of communicating with your customers, almost in real time. You can disseminate messages, and your customers can also interact with you. You can also use social media platforms as a tool for listening to what the market is saying about your business—and what customers are saying about your competitors.

When Casey Ray decided to terminate his agreement with a dog-training franchise and start his business over again on his own, social media made the transition go smoothly. “Today, with tools like Facebook, you can reach 500 people all at one time and tell them you are changing your name. So it really went smoothly, but I can’t imagine trying to do that without that type of media,” explains Ray.

Similarly, James Berglie, of Be Photography, in Baltimore, has been using Facebook as a way of getting his work out to as many potential brides and grooms as possible. “Facebook has been a blessing. … Today, our clients see our photos from their friends’ weddings as soon as they are ready, and they get to see all the work we do (even non-wedding-related) … and they continuously see our feed—they start imagining themselves in our shots. … They have been following us for the last one to two years, and know they want to use us before they even get engaged.”

Social media sites are a potentially game-changing tool. It would be foolhardy for me to go through all the social media tools because, as rapidly as this landscape is changing, by the time you read this book there will be new resources, new tips, and different tricks. So here are some general guidelines to help you leverage these opportunities, regardless of the platform you choose:

1. To reap the benefits of social media, start with a plan and make a commitment. A halfhearted effort will result in extremely poor results. What is it you want social media to do for your business? Branding? Generate leads? Search for business partnership opportunities? Customer service? Feedback? Using social media can be successful for all these things, so establish a hierarchy of your primary, secondary, and tertiary goals.

2. As you begin to establish a social media presence, you’ll need something to connect all the pieces. That connector should be your website and/or blog. It’s like the center of a wheel, with each of your social media sites as spokes. By directing your social media efforts back to your website or blog, you can measure your results and begin to convert connections into leads, and ultimately, into customers.

3. Limit the time you spend on social media. One of the reasons many businesses don’t embrace social media is that they think it will be too time-consuming. So start slowly with your social media efforts, and don’t overwhelm yourself at first, because if you do you probably won’t stick with this brand-building tool. Decide how much time you can allot each day or week, and then make that part of your to-do list. Don’t try to be on all fronts at once. Choose the media you think will be most appropriate for your target audience; if you aren’t sure, ask some of your customers which tools they use. Don’t imagine your customers aren’t involved in social media. As of this writing, if Facebook were its own country, it would have the fourth largest population in the world. Even my 86-year-old father has more than 100 Facebook friends!

4. Don’t know what to say? Business owners frequently get asked questions about their businesses and their related industries. Use those questions as a way to begin a dialogue through social media. Share helpful articles or blog posts with your connections. Offer valuable tips and resources. Position yourself as a source of useful information. Remember, don’t make “selling” your goal; make your goal building relationships that can turn into sales opportunities.

5. Use an aggregator. Aggregators connect all your social media profiles so you can input an update just once and it will post on multiple platforms, saving you a lot of time. (Currently, a few of the most popular aggregators are SocialOomph.com, Hootsuite.com, and TweetDeck.com.) These tools also allow you to schedule updates to go out periodically. But don’t rely on them exclusively. Remember, the benefit of using social media is to interact with others and when you preschedule updates you minimize your opportunities for interaction.

6. Make your updates more than a one-way communication. Use social media to make communications and so engage people so they will respond to your updates, and comment on theirs as well. Don’t worry about using some of the same material more than once. In many respects, social media sites are like 24-hour news services: Different people are logging on at different times of the day.

7. Online video is another effective social media resource and is an excellent medium for showcasing your product and/or service. In 2009, comScore found that 86 percent of U.S. Internet users view online video content every month. YouTube reports that there are about 24 hours of new video content uploaded on its site every minute. YouTube allows you to create your own channel, but you can also embed YouTube videos on your own website, which means you don’t have to manage a video delivery platform on your website.

8. Whatever type of social media you decide you use, remember: Never post anything you wouldn’t want the world to see. Even if you think your privacy settings provide protection, you can’t be too careful. An advertising agency representative lost his job because of one careless Tweet. He flew into a small city to meet with a major client, and upon landing, he sent a Tweet about how awful the town was. By the time he arrived at the client, upper management had already been apprised of his comment and he was asked to leave. In the fast-paced social media world, careless comments can be costly.

9. Protect your brand by establishing social media guidelines for your employees. It’s also important to make clear what you consider acceptable and unacceptable in terms of employees’ using social media for personal interests while at work. Remember that what your employees post online can reflect on your brand, and may also result in legal complications if they are found to injure a co-worker, competitor, or customer. Do an Internet search and you’ll find social media tool kits created for employers; they provide important guidelines and information you need to know.

Other Marketing Means

Don’t overlook some of the tried-and-true means for building a customer base. The following have been used by companies for years because they yield good results.

Coupons Make a Comeback

Historically, coupons were distributed by the manufacturers of packaged goods for use by consumers at various retail stores. They were widely distributed through newspapers, magazines, and other print media. These consumer brands sought means to reach the masses, but this type of widespread distribution was expensive. Today, couponing is enjoying a resurgence and is taking on a new, more targeted format. A.C. Nielsen, an independent marketing research firm, found that 95 percent of all shoppers like coupons and 60 percent actively look for them.

Offering coupons can help a small business attract new customers. It’s also a clever strategy to entice inactive customers back to your business. But instead of purchasing ads and distributing printed coupons en masse, you can use technology to control costs and more effectively target your audience.

For example, post printable coupons on your website. Include a coupon in your e-newsletter or email marketing campaigns. Join a deal-of-the-day type coupon program, such as Groupon or similar local community programs. If you are a professional service provider, call the “coupon” a courtesy discount offering on a future service.

A quick word of caution about daily-deal coupons: While these companies can potentially generate a significant amount of business for you, they can also turn into a nightmare if you don’t do your homework. Most of these distribution services take about 50 percent of the coupon price, which leaves very little for the business owner. So make sure you are at least covering your cost, and put limits on the offer, such as only one per customer. Be careful—if you aren’t prepared to handle the potential influx of business, you could find your reputation ruined by negative online reviews and dissatisfied customers.

Finally, coupons are an excellent tool for generating return business. Before a customer checks out, provide a coupon as an enticement to come back. This works with both product and service businesses. Offer a 10 percent discount on a specific service upon the next visit, or a free product. My dog groomer gives me a coupon for a free nail clipping, tooth brushing service, or some type of discount after a certain number of visits, which of course gives me a reason to bring the dogs back again rather than trying a competitor.

Customer Loyalty Programs

No matter how small your business is, it never hurts to have a customer loyalty program. It’s much less expensive to keep your existing customers than it is to attract new ones, so why not show your customers how much you appreciate their business? Customer loyalty programs can be structured in many ways, so just choose the strategy that works best for your type of business.

For instance, most programs are based on a point system that allows the customer to accumulate points based on frequency of purchase or dollar amount, which they can use for discounts or free products. Even if you have a service business, you can build a loyalty program. For example, if you are an IT consultant, a customer who reaches a certain level of business could get a free training class or some other type of support service.

The Belleville Farmer’s Market, an Illinois-based community fresh produce market, designed an interesting loyalty program. They created a customer loyalty card that allows the consumer to select a charity to benefit from their purchases. Last year, this small family-owned business was able to donate $30,000 to local charitable organizations. Not only does the program give customers a reason to shop in the store, but many of the supported charities like to shop there as well to show their appreciation.

In addition to the charitable giving program, the Belleville Farmer’s Market uses tech tools to build customer loyalty. For example, the store launched an email marketing campaign to build relationships with its customers. Starting with zero, the business built its database to more than 10,000. It uses twice-weekly emails to share special discounts and promotions with its customers.

Referrals—a Great Door Opener

Of course one of the best ways to build your business is to get referrals from your existing customers. Did you know that the majority of your customers would be happy to provide referrals if you did one simple thing? Ask. That’s right; if you don’t ask, you don’t get. A customer referral is an excellent way to get your foot in the door with a new client or customer. It provides a stamp of approval, and people tend to rely on the opinions of others when it comes to making many of their buying decisions, both personally and professionally.

Some companies provide rewards for customer referrals in the form of discounts on services or products. Or, you could offer to make a donation in the customer’s name to a charity of his or her choice. Social media can be used to get referrals as well. One of the leading Internet marketing research firms, eMarketer, found that 68 percent of U.S. Facebook users said they were more likely to buy because of a positive Facebook friend referral.

So make it a practice to ask.

Start Talking!

Do your knees shake and your palms sweat at the mere mention of speaking in public? There are many different groups and organizations looking for great speakers, so get over your fear and volunteer. Create an informative presentation related to your business and share your expertise.

Don’t fret over the fact that you’re not an experienced motivational speaker. The benefits are too great to miss. By appearing before a group, you’ll gain credibility as an expert. And the chances of getting new customers from sharing your information are significant. Just don’t make the mistake of doing an infomercial. (Not only will you face disgruntled audience members, but you’ll never be given another chance.) Remember that the key to making a successful presentation is providing interesting and helpful information for your audience.

One of my favorite small-business vendors, Constant Contact, hosts seminars around the country on email marketing. These are not sales presentations; they are truly training seminars. Similarly, if you focus on educating your market, customers or clients will come to you as a credible and reliable resource.

The financial services industry is another example where educational seminars can pay huge dividends. Stockbrokers and investment counselors face fierce competition. Making sales call after sales call will eventually yield results, but it is time-consuming. Many successful investment counselors host seminars designed to inform potential investors about various investment strategies.

So use your speaking opportunites to position yourself as a subject-matter expert. If you’re successful, you won’t have to “sell.” People will want to do business with you because you are the resource. But, again, if you try to turn your presentation into a sales pitch, your speaking career will be short-lived.

Networking the Old-Fashioned Way

Everyone talks about the importance of networking. Every motivational speaker, small-business expert, business coach, and self-help/business author will, at some point, include the boilerplate networking banter. It’s become so common that I’m not sure anyone really understands what it means to network anymore.

Networking isn’t a race to see how many business cards you can load into your database or how many friends you can add to your social media profile page. Real networking is about real people and real relationships—face-to-face interactions.

To reap the business rewards of networking, you must be committed. You aren’t in the right mindset for networking if you’re out for instant gratification. An effective network is built on a solid foundation of relationships acquired over time. When you make a new business acquaintance, take the time to learn as much about her or him as you possibly can. Don’t look at the individual with dollar signs in your eyes. Take time to listen and learn by asking open-ended questions. A business acquaintance of mine always asks this, which is an excellent icebreaker: “So, tell me about yourself.” Are there common interests you share? Do your children go to the same school? Remember, people do business with people they like—with friends.

Next on my list of best practices is to follow up after that initial meeting. Stacking the business cards on your desk or scanning them into Outlook doesn’t create a network. Sending your new acquaintance a brochure or sales letter doesn’t develop a relationship. And calling to set an appointment or make a sale won’t do the trick, either. However, taking time to offer assistance and develop a relationship is what will ultimately build a solid network.

For example, let’s say I meet you at an event, and during our conversation you mention you are a dog lover. Guess what? So am I. We have a nice conversation, and you tell me you’d like to know more about creating a dog-friendly office environment. So what do I do? I go back to my office and send a “Nice to meet you” email. But in addition, I include a link to an article with advice for pet-friendly workplaces.

Remember: Give, give, give. You know the adage “It’s better to give than to receive.” Nowhere is this more pertinent than in networking. Be willing to put the other person first. Find out how you can help the person and make sure to follow through. Perhaps you can make an introduction or suggest a good resource for the individual’s business. Become the “go-to” person. Then, when you need assistance, you’ll be abundantly rewarded.

There is no better asset—personally or professionally—than a strong network. A good friend describes it as putting it out to the universe—your universe; whether you need an excellent lawyer or a fabulous hair stylist, your network is the place you go.

Who Is Your Competition?

You can’t effectively market your business until you understand your competition. What are their strengths and weaknesses? What’s their pricing strategy? Who are their key customers? How can you differentiate yourself from them?

Over 66 percent of respondents to a survey conducted by the Society of Competitive Intelligence Professionals (SCIP) said that competitive intelligence is extremely or very effective in helping identify market opportunities. Nearly 44 percent found it extremely or very effective in terms of understanding customer demand. Nothing can be more disastrous for a small company than to be blindsided by a competitor’s strategy.

Additionally, never make the mistake of assuming you don’t have any direct competitors. Even if you have a brand-new type of product or service, you still have competition. Whether you sell to consumers or other businesses, there is only so much money to go around. You have to compete to get your target customers to choose to spend their money with you rather than with a competitor.

For example, ItsYourBiz.com (formerly SBTV.com) was the first—and continues to be the only—video news and information site for small businesses. When we started the business, video on the Internet was in its infancy, so we really didn’t have any direct competition. However, because we depend almost exclusively on advertising revenue, we had competitors who were going after the same advertising dollars that we were. Companies have budgets, and they are going to divide those budgets among various suppliers. So we needed to establish a strategy that demonstrated why video content for small business was a better return on their investment than the primarily text content offered by others.

So how do you find the competitive information you need? Start the easy way—browse the Internet. Know what is on your competitor’s website. What are their key selling messages? You may be able to discover pricing information on the site as well. There also could be information about new product launches or personnel changes. Press releases and news articles are also good sources of information. And don’t forget about social media. You can monitor what is being said about your competition on various social media sites. Listen and learn. Personally, I use TweetDeck to monitor competitive activity, but there are other resources as well.

By using your social media tools, you can follow your competitors and see what they are promoting, and learn what customers are saying about them. If you discover a competitor’s disgruntled customer, that’s an opportunity to develop a lead.

Vendors are another good source of competitive information. Chances are one or more of your vendors also sells to your competitor. Your vendor may be able to give you some insight about what your competition is up to. But tread lightly. Remember, if the vendor willingly discloses information about competitors, most likely that vendor will also disclose information about you.

Track your competitors’ advertisements. How are they positioning themselves? How often do they advertise? Where are they advertising? To whom are their ads directed? Collecting this information will help you get a better understanding of your competitor’s overall strategy.

Secret shoppers can be a good way to learn about a retail competitor’s sales process. Ask a friend or family member to pose as a potential customer and either call your competitor or visit their retail location. (Ethical business practices dictate that this wouldn’t be appropriate in an industry where sales presentations are customized.)

In some cases you may even be able to talk directly with your competitors. Depending on what industry you are in, you may find your competitors are friendly and willing to discuss certain issues with you. The Society of Competitive Intelligence Professionals is a good resource for guidelines.

Finally, whatever information you obtain, use it constructively to assist your own firm’s growth. Never use it to hurt your competitor. Not only does this make you look bad, but you could also run afoul of laws and regulations. And if you gain access to information that appears to be proprietary, destroy it immediately.