Month: November 2013

Shop Calumet City: The Coupon Book Quandary

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Supporting our neighboring communities is a great idea. It’s just not the stated purpose of the Shop Calumet City program or this coupon booklet.

Says the Alderman Jones in the booklet,

“When you shop and support local businesses in Calumet City, there will be more dollars available for local school districts, more money to improve our roads and streets and more funding will be available for our parks and libraries.”

If we’re trying to encourage shopping in Calumet City stores, why is one of the twelve coupons in the booklet belong to a store based in Midlothian? Doesn’t that encourage people to spend money in a suburb other than Cal City?

Cal City - Midlothian Coupon

Coupons are marketing devices. They can be a great way to generate interest in what a business has to offer and drive traffic to their locations.

Or they can go end up hidden at the bottom of kitchen drawers until spring cleaning time.

I applaud the 12 businesses that have coupons in this book for having the guts to take action to improve their business and participate building up the local economy. But to be frank, the decision-makers in these businesses should demand more from their marketing efforts.

Here are a few points worth noting about this coupon book:

  1. Again, 8.3% of the coupons direct shoppers to spend money outside of Calumet City
  2. Of the 12 coupons, eight of them are worth about $2. For example, a free McDouble with purchase of medium fry at McDonald’s or $2 off of a $20 dry cleaning order. In  most cases, any resulting sale will probably be profitable, but how many sales will result from the distribution of these coupons?
  3. One of the more seemingly valuable coupons is $5 of free gasoline. That’s pretty hard to resist. BUT how much does it help the gas station? With the less-than-razor-thin profit margins on fuel, it’s practically impossible to recoup the value of the coupon on a gas-only purchase.
    • What makes it even worse is that there’s almost no chance the customer who redeems the coupon will suddenly start buying their gas at that particular station. People buy gas a) at convenient locations or b) where it’s the cheapest. The coupon basically gives away gasoline for nothing in return (unless the driver buys snacks while getting their free fuel); it will not change buying behavior.
  4. For long-term economic impact, these coupons should include some way of building relationships with customers. The businesses should get these people’s contact information and follow up with them.
    • They could offer bounceback coupons to turn one-time shoppers into customers (people who make it a custom/habit to buy from you).

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I don’t mean to “go negative” here. I really love this town and the people in it. I honestly want things to get better. Why should Orland or Tinley Park enjoy more prosperity than us?

What we need is not short-sighted marketing ploys created by government officials. We need gutsy, intelligent entrepreneurs to lead the charge to a better future.

Since when do entrepreneurs rely on the government, anyway?

P.S. Next time, we’ll talk about specific business growth methods entrepreneurs in our area can use to start building a better tomorrow for our community.

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Shop Calumet City: The Article that Didn’t Make Quite It

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I submitted the following article to our local newspaper, the Shopper.

More than news, I guess it sounded like a letter to the editor, so it was printed in the “Speak Out” section of the paper, without a byline. (Maybe that’s not such a big deal. I’ll have to be more specific next time.)

I wasn’t going to publish it here, since news articles are printed on the Shopper’s website. But because this wasn’t considered news, it’s not. So here it is.

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‘Shop Cal City’ is a Two-Way Street

Residents of Calumet City have probably received a post card introducing the new “Shop Calumet City” program.  This project, the brainchild of Alderman Thaddeus Jones is designed to boost the local economy, support our local business community and generate revenue for schools and other municipal projects.

It’s a great idea. Probably long overdue.

It also seems to be somewhat incomplete in its scope.

In recent months, we’ve seen several major businesses pack up and leave town (Sears, Old Navy, etc.). Numerous small businesses have had to shut their doors, as well. River Oaks mall looks like a ghost town sometimes; Wentworth Woods looks even worse.

Shopping local is the responsibility of citizens in communities everywhere, isn’t it?

I often hear people grumble, “THEY need to put more stores here.” Well, the fact of the matter is, WE need to make setting up shop here in Calumet City a profitable endeavor.

But shopping local is a two-way street.

Businesses need to understand how to promote themselves and provide top-notch customer experiences for their local clientele. Owners can’t complain about a lack of customers if they’re just sitting and waiting for us to come.

It’s the responsibility of those people running the businesses to give customers a good reason to spend money with them.

We want to support you! But you have to let us know you’re there. You have to show us how we will benefit from shopping with you.

You have to be a real part of the community and create real value for the people in our neighborhoods.  Then we’ll happily patronize your store.

That’s the give and take of a shop local program. I think both  lanes on this two-way street could use some repairs. Hopefully Alderman Jones program will be a major step in the right direction.

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My buddy John Breese also posted an interesting perspective (his point of view is always interesting) over on the One Hour Startup blog. Check out The Dark Knight of Marketing Takes Over the City.

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Isn’t Selling to the ‘Lizard Brain’ the Goal?

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In The Art of Planting Ideas, we talked about how the prefrontal cortex (PFC) of the human brain goes dormant while watching movies on the big screen, television shows and sometimes even marketing videos.

Understanding people, how they think and why they do what they do is the foundation of marketing. Knowing why certain tactics and triggers work makes you much more effective at applying the what and how of selling and marketing.

Why does the relative inactivity of the PFC even matter? Don’t people always buy based on emotion? Isn’t the goal to sell to the “lizard brain” anyway? First, let me say that I find the term “lizard” or “reptilian brain” ridiculous (although the phrase itself is both visual and visceral, making it a great use of language). This part of the brain – the limbic system – is not some genetic hand-me-down of an evolutionary process. (In fact, the “three-brain theory” has been largely rejected by modern neuroscience. Most marketing educators are clinging to old, invalidated information.)  I find that the radical self-interest of the human race can be traced back to choices Adam made back in Eden. The more I learn about psychology and neurology, the more clearly I can explain why marketing works from a Biblical perspective. (Maybe we’ll talk about that another time.)

I prefer the term “old brain” instead of “lizard brain“?

Back to the point…

The desires that drive our decision-making, including purchasing decisions, do come from the old brain. They’re more emotional than intellectual. That’s why we focus on appealing to the emotions in sales and marketing.

But the prefrontal cortex is still in control of the executive function, i.e. the ability to guide thought and action in accordance with internal goals. We aren’t lizards! Desires still have to make it past the PFC, which processes the logical outcomes of acting on that desire. This is the reason why “reason why” advertising works.  Marketers have to provide the necessary ammunition to rationalize the purchase. Check out Simon Sinek’s 2009 TEDx presentation explaining why “why” matters. (I don’t agree with all of his conclusions, but it’s still worth watching.)

Ultimately, desires are rooted deeper than logic and rationality, but the PFC almost always has the final authority.

Have you ever wanted to punch someone right in the mouth? Have you seen yourself do it in your mind’s eye? Most of us have. But most of us don’t act on that desire. That’s the executive function at work, overriding emotion.

That means you sell to the emotions, but you can’t neglect the intellect in the process.

So, is the PFC-paralyzing power of video good or bad? It is inherently neutral. It can be used for evil purposes, e.g. the Nazi propaganda film “The Triumph of the Will.” It can also be used for good. In either case, it’s effective.

A good story can have a similar effect on the brain. When you’re engrossed in narrative, the brain makes its own mental movie to watch the story unfold. Robert Collier said it well: “The mind thinks in pictures, you know. One good illustration is worth a thousand words. But one clear picture built up in the reader’s mind by your words is worth a thousand drawings, for the reader colors that picture with his own imagination, which is more potent than all the brushes of all the world’s artists.”

 

Shop Calumet City: My Introduction

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I noticed the banners around town a few weeks ago.

To be perfectly honest, I thought they were not-so-subtle propaganda. Calumet City isn’t the greatest place to shop. Anyone familiar with the area knows that; outsiders would find out quickly.

About two weeks ago, a postcard mailer came out introducing the “Shop Calumet City” program. 3rd Ward Alderman Thaddeus Jones is spearheading an attempt to stimulate the local economy and support the business community here in town.

Now the banners make a little more sense.

As a Cal City citizen and businessperson, I feel compelled to comment on this program and it’s resulting effects. I plan to do so here on my blog over the coming days. I believe my gifts, expertise and experience could make valuable contributions to this effort.

As much as it will probably seem like it, I’m not attacking Jones or his ideas. But sometimes the best way to improve something is to point out weaknesses or inconsistencies, and that’s one of the things I do to help people and businesses get better at what they do. I come off harsh sometimes, the same way a trainer may seem rough on his boxing students.

I’ll be sharing my thoughts and I hope to hear from my fellow citizens in Chicago’s south suburbs and northwest Indiana. A lot of our neighborhoods are going through similar struggles. Many businesses will find insights that can help them reach higher levels of success.

If you’re interested in going even deeper, you can sign up for my email list specifically for Chicago’s South Siders. Here you go:

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“Who Are You Going to Believe, the Doctor or Me?”

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One of my readers asked me a question about gaining trust from his clients. What most entrepreneur doesn’t think about that least occasionally? Of course, people like you who read my ramblings are a special breed. As such, this reader took his question a little further. “How do I build my authority and credibility to the same level as a doctor?”

Here’s a slightly modified version of my response. I hope you’ll find it helpful.

6 Ways to Build As Much Authority As 6 Years of Med School

Realistically, it’s very difficult for most entrepreneurs to be as authoritative in the mind of an individual as a physician before actually working with him. In all likelihood, he’s been conditioned year after year to literally trust doctors with his life. He also has plenty of personal experience with them.

Doctors have been around for ages. Almost everyone on Planet Earth has been to a doctor, or at least they desperately wish they could. As such, physicians are among the most authoritative professionals in the world.

Most entrepreneurs don’t have that advantage. Their industries are probably not continuously portrayed in the media as the pinnacle of intelligence, value and significance the way the medical profession has been for decades. On the other hand, there are plenty of industries that are the butt of non-stop ridicule from Hollywood, e.g. used car sales, lawyers, marketing professionals.

But, after producing mind-blowing results for a client, you have the chance to become just as trustworthy and authoritative as a doctor. That’s really the tip before the tips. Do great work and proactively encourage clients to give you referrals. I guess that’s 2 tips…

Having said that, there are 6 things entrepreneurs can do to boost their credibility and authority among people they haven’t personally worked with:

1) Writing a book has always been a huge authority builder. Even in this digital age, authors are seen as experts, period. (You may have noticed that author is the root word of authority.)

Even if you never make the bestseller’s list, having a somewhat comprehensive piece of intellectual property on a given subject will give you instant credibility. E-books are good, but physical books are better.

Even though digital books are outselling their print counterparts, a physical book has a powerful subconscious trust-building effect. We instinctively think of them as more valuable, more expensive to produce, and more likely to have gone through a more rigorous approval process. Self-publishing is okay, but if you can get published even by a small publishing house, that adds more gravitas to your credibility.

2) Multimedia – Create MP3s, CDs, online videos or DVDs. You can showcase your expertise at length and in a professional way.

You can create these as products for sale, give them away as “freemiums” to get people to sign up for your newsletter, or give them away free on your website, Youtube or as physical handouts.

Like books, physical CDs or DVDs are seen as more valuable, more difficult to create, and thus, build more authority. Would someone who has nothing to say go through all the trouble of making CDs and handing/sending them out to potential clients? Even if they never listen to them, you’ll have positioned yourself as a confident expert. Of course, you want them to listen…

Your content should be specific and unique. If possible, give information that can be easily put into practice to generate instant results. That quickly establishes you as a source of positive change. The easier it is to take the first step, the more likely they’ll take it. The quicker they see results, the stronger their appreciation for your ability will be.

3) Public speaking. Do some searching to find an opportunity where you can speak to a group of people on a subject that 1) matters to them and 2) you can deliver a quality presentation about. Look for these opportunities wherever you can. (If possible, record them on video capturing some shots of the audience as well.)

Most people are terrified of speaking in public. Those who do so well are highly respected. I have a few buddies who charges $10,000+ for one speech. Are they celebrities? Not one of them. But in their niches, they are sought-after thought leaders. They also signs big clients as well as future speaking gigs almost every time they get on stage.

4) Get testimonials and make them a prominent part of your self-promotion.

5) Associate yourself with someone else who has authority. For example, Dr. Phil’s appearances on Oprah Winfrey’s show took his career to heights he probably never would have otherwise reached.

Who has the trust of the people in your target audience? Or who would be perceived as authoritative to your audience that you could become associated with? Ask them if you can interview them. Write guest articles for their website or newsletter (everyone’s always looking for good content).

Sometimes it takes creativity and persistence, but I’ve found most experts to be easier to get in touch with than you think. They’re also willing to give interviews to promote themselves.

Writing articles for major magazines or websites your audience pay attention to.

6) Public relations. If you can get your story noticed by the news media, you become an instant celebrity and authority. Honestly, I don’t have much experience in this area (but I do have something cooking in this area right now). Write press releases and deliver them strategically. You’d be surprised how many of the stories covered by news outlets is planted by self-promoters via one-page press releases.

Your Action Steps

1) Think about which of these techniques you might be able to use to boost your own credibility.

2) Get in touch with me if you need some clarity. I know these are very general recommendations. Perhaps I can help you make specific applications.

3) Check out the following resources about why prospects don’t trust you (yet) and how to fix that:

Bypassing Your Prospects’ Hardwired Conversion Obstacles

30 Minutes to More Trust – An Interview with Charlie Green

Until next time!

Learning Salesmanship from a Kid’s Toy

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Today’s lesson is inspired by and based on a 47-second video. (None of this will make much sense if you don’t watch it now.)

Why Does This Ad Work?

I wasn’t able to find any verifiable figures on how this particular device is selling (or how much can be attributed to this 2-week old commercial), but according to Inc. Magazine, the company that created Nabi, Fuhu, is the fastest growing privately-held company in America this year. With 42,148% growth over 3 years, they’re clearly doing something right.

Let’s go with what we know. This commercial is:

1) Laser-targeted. Fuhu knows precisely who the main buyers of these tablets are: parents (mostly mothers) of children in their Pre-K and early school years. This commercial makes its appeal directly to them. They’re not trying to win over any other audience. The commercial is running on channels where Mom, in full parenting mode, will be most receptive to the message.

2) Emotionally-driven. The video plays on the heartstrings — and does so mostly without words. It isn’t about tech specs; it’s not even about the device itself. The quick plot focuses on the triumphant end result: your child is fearless, unstoppable, even when her peers tremble.

3) Visually compelling. Again, the words are almost an afterthought here, although they do strengthen the visuals. But if you play the video again with the volume off, it has just as much punch. Video is powerful that way.

Viewers who don’t have kids can still appreciate the impact of the message.

Parents who see the commercial are deeply moved.

Parents with kids struggling academically…well they’ve probably already gone to buy the thing.

You can make your message visually compelling even if you’re not using video. Good copy can create the exact same effect in print or audio. Robert Collier said it well:

“The mind thinks in pictures, you know. One good illustration is worth a thousand words. But one clear picture built up in the reader’s mind by your words is worth a thousand drawings, for the reader colors that picture with his own imagination, which is more potent than all the brushes of all the world’s artists.”

Your Action Steps

1) Get to know your target audience. I sound like a broken record, but this point can’t be stressed enough. You can’t make a truly persuasive marketing message if you only have a vague idea who you’re talking to and what they care about. If you don’t get anything else from this newsletter, I’d make this the thing you pay attention to.

Your ideal client is like your spouse: you can never know her too well.

2) If you are intimately familiar with a promising audience, consider customizing a product or service for them. Fuhu saw a big opportunity to market kid-friendly, drop-proof tablets (you know you always cringe when your little one grabs your iPad with his slippery, slimy fingers). They went from $279,000 in revenue in ’09 to $118 million in 2012.

Maybe there are some 9-figure doors waiting for you to open them.

3) Add emotion to your messages. Aim for those heartstrings.

You’ve got a great product with all the bells and whistles. Who cares? Potential customers want to see their own triumphant end result. Paint that picture.

4) Make sure you have a good copywriter on your team.

5) Get your laser-focused, emotionally-charged message out in places where your best buyers will see them — and be in the right state of mind to listen attentively. Maybe it’s a radio ad during drive-time. Maybe it’s a snail mail letter from someone they trust. (That’s another one of those things you’ll have to figure out with study and testing.)

How Do I Get People to Want What I Sell? Part 3

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In Parts 1 and 2 of this short course, we’ve been talking about intensifying your potential customers’ built-in desires and directing them towards the thing that you’re selling. There’s a common thread tying together each of the points we’ve covered. Perhaps you’ve noticed.

You use your words to paint vivid, evocative images in the minds of your prospects…their response will correspond directly with their desires, motivations and priorities…

You base your marketing messages or sales pitch on the quest they’re on, the vision they have for their lives and the way they see their place in the world…

You do your best to be convincing…but those who become your customers are those who convince themselves that you can deliver the results they want.

Do you see it? Conversion is essentially a self-initiated change. All persuasion is self-persuasion.

Persuasion’s Passive-Aggressive Nature

“No matter how brilliantly an idea is stated, we will not really be moved unless we have already half thought of it ourselves.” ~ Mignon McLaughlin

If you’re honest, you know deep down that this quote speaks to real experience.

As irresistible as your message may seem to you, what really matters is how it matches up with what the hearer thinks about himself (his quest)… about the problem you’re addressing or promise you’re making… about you.

For example, if he believes he was born to be an entrepreneur and that reading a book can speed up the process and increase his chances of success, he’ll actively search for those kinds of books.

If he believes that “I could never succeed in business” and that starting a business a risk reserved for richer, more educated people, “be your own boss” products won’t appeal to him.

Vision Is the Delivery Mechanism

In order to get someone to buy from you, you need him to convince himself that your product or service will give him what he wants. To do that, you have to give him the materials he needs to convince himself. That brings us back to the concept of building vision.

When you’re helping your prospect imagine all the wonderful tomorrows that are sure to come after he buys your product… when he can see himself enjoying a brighter future because of you, he’s really selling himself on your proposition. Of course you’re doing your part: feeding him the raw materials he needs to see that mental image. This is where copywriting, storytelling, demonstration and testimonials come into play.

You want him to come to a predetermined conclusion: that your product is his best option to achieve the transformation he’s looking for. Rather than stating that too explicitly (which will probably be a turn-off for most potential clients), you want to help him draw that conclusion on his own. As Blaise Pascal said, “People are usually more convinced by reasons they discovered themselves than by those found by others.”

When he decides that you’re the best choice based on his own “reasoning,” you’ve won a firmly-convinced convert.