Tag Archives: Advertising and Marketing

November 6, 2019 · 10:27 am

Who’s Calling?

If you carry a smartphone, and nearly everyone does, you’ve probably had the experience of your caller ID showing a fake number that’s calling, often with a fake name or organization displaying. You might think it would require a great deal of technical knowledge to be able to spoof a number or generate a fake caller ID, but you’d be wrong. There are several apps available in the Android or Apple stores that will do just that for you. They’ll even change your voice and add fake, location-specific background noise. I’m not clear what the legitimate purpose of these apps is but for $8, you can set yourself up to run any number of scams if you’re so inclined.

It dawns on me, though, that many folks do exactly the same thing with their social media posts. Their food is picture-perfect. They’re always smiling and having fun, often in some unusual locale. Their party never stops. They never mention that they’re short on cash, their job is unfulfilling, and they’re slowing sinking into depression. I mean, what’s the point of being happy if you can’t post it? As with the phone apps, everything is not as it seems.

I think businesses can learn from this. I’m not suggesting that they use social media to bum us all out, but I am saying that being authentic and transparent will win the day. People appreciate being made spoof-proof, and that happens when they know the businesses they follow aren’t posting visual checks that their real-world business can’t cash. Are they using “influencers” to say nice things about their business when that person has never been in the place or used the product? Have they generated some FOMO by purchasing fake followers?

Don’t believe every number that pops up on your phone. The IRS isn’t calling you. Neither is the Social Security Administration. I’ve had my bank call me but I’ve never had them ask me for account information over the phone. Don’t believe that everything you see on social media is the whole story. It might have been the only good day in a month. And if you run a business, there are very few people who will patronize you based solely on some pretty Instagram photos. Dozens of review sites will keep you honest. People like to know who is calling for real. So be real.

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Filed under digital media, Helpful Hints, Reality checks

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October 30, 2019 · 12:42 pm

Something For Nothing

I went to one of the warehouse club stores yesterday to make some bulk purchases. If you’ve ever been in one of them – Costco, BJ’s, Sam’s Club, etc. – you know that one feature of walking around the place is that there are usually free samples. You can taste the latest and greatest in meats, cheeses, and frozen things to cook while you’re too busy to make something yourself. That got me thinking about the fact that you really don’t see a lot of sampling elsewhere.

I’m a fan of the free trial. It gets customers walking through your door and using your product. What I don’t particularly like are those “free” trials that require you to fork over your credit card. Free means without strings, right? In particular, if you’re a business that is built around what I think is the gold standard – recurring revenues – you ought to be spending a good chunk of your marketing dollars on free trials.

It’s relatively simple math, right? What’s the lifetime value of a customer? What does it cost you to offer up a free trial – a visit, a free month, whatever? What is the conversion rate of those freebies – how many of the trials become regular customers? Recurring revenues are predictable and generally pretty stable. I bet you’ve signed up for subscriptions of some sort and forgotten you’ve done so or don’t use them as often as you thought you would. For a business, that’s a customer without costs, and that’s a nice margin!

When I talk to people who are looking at franchise opportunities and who don’t have a particular brand or industry in mind, I usually talk to them about the businesses with recurring revenue models. Things like cleaning services. Not a sexy business, but very profitable and that, in part, is because of the recurring revenues. Same thing with spa businesses or some hair salons that feature memberships. Are those businesses that can offer a free trial? Maybe if you’re an out-of-the-box thinker. Giving a converted customer the ability to give away a free trial to a friend is another great way to expand your base at very little cost.

Here is the thing about free trials leading to recurring revenues. As with any business, you have to maintain a high level of customer service. After all, when someone’s credit card is getting dinged each month and your business appears on their statement, it’s an opportunity for them to reconsider.  If they walk away, no amount of free sampling will get them back most of the time. Everyone loves something for nothing. The opposite – nothing for something – is very much NOT true!

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Filed under Consulting, Franchises

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October 4, 2019 · 2:01 pm

McRib And You

The big news this Foodie Friday is the return of the McRib sandwich. It’s only going to be around for a limited time and only at select McDonald’s stores (which is about 10,000 of them). If you’ve never had one of these babies, it’s a pork patty formed to look like pork ribs (but boneless) on a bun with pickles and onions and a fair amount fo a sweet barbeque sauce.

I’d be very dishonest if I said this concoction appalls me since I’m a fan of the thing, or at least I was before I both quit eating a lot of carbs (45g in this baby) and lived in a place where real BBQ pork sandwiches are easier to find than a decent deli. When it hit the market back in 1981, it was a dud. It’s been released every so often since into a limited number of outlets and it sells out.

There is something any business can learn from the McRib or the pumpkin spice craze at Starbucks or Dunkin’. It’s the smart tactic of giving customers a reason to come back. There is a restaurant here in town that I patronize on a regular basis. The food is quite good but there are rarely any specials. It gets boring, frankly. I’ve tried pretty much everything on the menu. Something special might get me to make a special trip as opposed to the every 10 days or so when I want a really good burger.

There is something else. Here is a quote from a marketing professor at Northwestern:

For fast-food chains in particular, which rely on familiarity, holiday items can offer consumers some variety. “You need consistency because that’s the brand mantra,” said Chernev. “But no matter how much you like something, consuming something different … increases the enjoyment of what you consumed before.” Chernev says it’s a neat marketing ploy: Although a specialty item may be exciting on its own, it can also remind consumers how much they like the basics.
In my mind, it’s like how being on vacation often reminds you of how much you like being home if that makes any sense. In any event, every business needs to think about how a special product promotion (vs. a sale price promotion) can provide an overall lift to the business.  Got it?

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Filed under food, Helpful Hints, What's Going On

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