A business' customer base isn't static. Over time, that customer base will slowly decline. It doesn't matter if your business gives the world's greatest customer service, you will need to find new customers. Maybe some of your current customer base stops needing your product or they move to an area you don't serve or they pass away or whatever. This "customer attrition" will naturally occur. Often, it's unnoticeable, perhaps declining 5% to 10% per year. Over time, though, the results are catastrophic.
So getting new customers should be a primary concern, first to shore up your customer losses (however small they may be) and second to grow your business (assuming that you want to grow).
In acquiring new customers, there are marketing efforts which can create new "cold" customers who have never bought before and need a lot of convincing. But word of mouth is an ideal customer creation tool because it is highly trusted. If your customers can convince their friends to become customers, MOST of your marketing effort is done for you. Therefore, it pays to create a "salesforce" of customers and to empower them to tell their friends about your business.
One company that has built this right into their business model is Groupon.com, which I read about in a Harvard Business School blog recently. Groupon is a coupon site that helps businesses create those word of mouth customer acquisitions.
Other coupon sites simply offer downloadable coupons to whomever is willing to click to the site (and perhaps sign up). There is no customer acquisition component. But there is with Groupon because their discount is only achieved when there are a minimum number of customers. For example, a substantial discount might be offered on a product or service within a specific urban area (they have 45 urban areas listed on their website) and the discount is only achieved if customers can convince a total of 50 people to sign up. This is a great idea in that it "pays" (by offering a discount) people to talk up the business to other people.
The Harvard blog actually lists 4 reasons why Groupon is a great idea and this word of mouth customer acquisition factor is just one of the reasons. The other reasons are:
• "Interactions are super simple"
• "Create a sense of urgency"
• "Make it fun"
These four reasons are great secrets for any business to follow if they want to create an engaging customer experience… and especially an engaging experience that will also contribute to the growth of their business.
Maybe Groupon's group coupon discount isn't right for you. But could the business model be augmented to suit your purposes?
Brought to you by: Contemporary VA - Run your business instead of running in circles.
@ContemporaryVA on Twitter. Follow the team to stay updated on business resources we deliver that cover strategies and tips, social media and more!
Posted in Online Marketing.
Tagged with small busiiness online marketing, small business coupons, small business customers, Small business marketing, small business strategies, small business word of mouth marketing.
By admin
– December 18, 2009
The other day a friend of mine called me up in a panic. His website had been advancing dramatically in PageRank and he was working hard to build it up. Then he checked at the beginning of December and noticed that his PageRank had dropped to zero. The phone call to me was an "I'm ruined" phone call and it took me a long time to calm him down and assure him that he was not ruined. It inspired me to write this list of 4 myths of internet marketing.
1. PageRank is the be-all and end-all of marketing. That's not true. There are several factors that go into successful search engine placement. PageRank is a number that Google uses to determine your placement in search rankings but there are other factors, too. A higher PageRank is helpful, but it's only part of the equation. PageRank is determined from backlinks and how long your URL is registered for, among other things. But it doesn't take into account keyword placement and a smart keyword program can still benefit your business.
2. Keyword density. I sometimes wish this one were on the way out but it still rears its ugly head from time to time. Keyword density is a metric used by internet marketers to determine how many keywords they need to have on a page to optimize the likelihood that Google spiders will view the site and file it appropriately and, perhaps, more highly than something else. A density of 4% has often been the magic number. However, it's a terrible number to aim for because it results in non-readable content. So you might get traffic to your business but you won’t make sales from it.
3. You should only link back to your site from higher PageRank sites. If you're going for PageRank, this does make sense in theory. However, this is a common practice and what you end up with is a marketing plan that puts you in the most competitive places. It's like putting your billboard on the same street where your competitors are all putting their billboards. Instead, some lower PageRank sites might not give you the high value back link you want, but they can give you a steady stream of website visitors using the "long tail" approach.
4. It's not all about search results. One of the points I raised with my friend is this: Some people are online and don't even bother with search results. It's simply not in their sales plan. They know they are in a highly competitive environment, or perhaps they are trying to carve out a new niche with no highly searched keywords. They use advertising and other methods to drive traffic to their site. Search is not the most important.
Consider picking a few high quality (although not necessarily high PageRank) sites and spend your effort on those sites, building up a name for yourself and creating meaningful content that can engage your audience.
Brought to you by: Contemporary VA - Run your business instead of running in circles.
@ContemporaryVA on Twitter. Follow the team to stay updated on business resources we deliver that cover strategies and tips, social media and more!
Posted in Online Marketing.
Tagged with internet marketing myths, keyword density, online marketing myths, page rank, Search Engine Marketing, search engine rankings, seo.
By admin
– December 15, 2009