When I was a kid, I loved stories.  Actually, it hasn’t changed much now that I am adult.  I love a good story, told well, with just enough detail, and a reason to be told.

Great stories aren’t just about something that happened.   Great stories, come with a lesson.  I think that is why I love fairy tales; simple stories (with a message and a happy ending) and and great myths (simple stories, with tragic endings and a warning in the lesson.)

As a small business owner, I find lots of good advice in stories:

• Cinderella  – Magic opens doors, but it is your charm which closes the sale.
• The Princess and the Pea – It is the little details which keep you up at night.
• Snow White and The Seven Dwarfs -Success requires a team with diverse personalities and skills.
• The Emperor’s New Clothes – This is more of a tale for the corporate exec, then the small business owner, where the pressure to fit in is greater.  But even small business owners can fall victim to the pressure to see or do something because everyone else says it is a good idea.

So what is your favorite fairy tale?  And what have your learned?

Would you hire an employee, pay them a salary and never check on their work, never set goals or measure performance? Of course not!  Whether you work for a large company or a small business you have a limited amount of money to spend on salary, and you use performance measures to gauge whether you money is being well spent.

While most business owners understand this idea when it comes to employees, the don’t see that it applies equally well to their marketing!   In a very real way, the $10,000 – $100,000 you are spending on marketing is like hiring another employee.   Marketing metrics help you figure out if the money is being well spent.

Paying attention to the metrics helps you refine your marketing expenditures each year. However, it is easy to get bogged down with too many metrics. Ideally, you should measure things that:

• Drive or reflect business results.
• Can be influenced by your direct action.
• Can be measured accurately, consistently, and cost effectively.

The following excerpt comes from a business plan we wrote for a small firm, describing how they would measure marketing performance.   Notice the specific and very measurable goal:

Relevant customer data and contact information is collected in ACT. The source of new customers is also captured. As e-mail campaigns are launched, “open” and “click-through” rates will be tracked to measure effectiveness of programs. Log files capture data regarding Web traffic.

We will budget $500 per month for search-engine optimization. We need to acquire three new customers each month from this program. In addition, by monitoring our results we will adjust Web copy to include the most popular search terms.

How do you measure marketing performance?

]]> http://www.roundpeg.biz/2009/05/marketing-metrics-for-small-business/feed/ 0 http://www.roundpeg.biz/2009/04/marketing-org-chart-lead-generation/ http://www.roundpeg.biz/2009/04/marketing-org-chart-lead-generation/#comments Wed, 22 Apr 2009 14:31:33 +0000 Lorraine http://www.roundpeg.biz/?p=1642

In December,  I introduced a graphic of a Marketing Organization Chart I found on a blog post by John Jansch of DuctTape Marketing .  As a follow up I am exploring each of the four elements ( Strategy, Lead Generation, Lead Conversion and Customer Service) in more detail.  Earlier this week I took a look at Strategy today lets look at Lead Generation.

There are three main elements of Lead Generation:

• Advertising
• Public Relations
• Referrals

Your prospects will come to you ether because they have heard about you from someone they know ( referrals) or from some third party (public relations) or from you (advertising)

REFERRALS

While John Jansch, listed this element third, I really believe this is where any small business owner should focus the majority of lead generation activities.  Why? because prospects who come to you on the recommendation of another person, are more likely to buy.

You have been pre-qualified.   As a result, you can move quickly through some of the early “get to know you” portion of the sales process.

How do you cultivate referrals? Spend time thinking about your core customer.  Who else is selling to your client?   These are the people who will be most influential. So if you want referrals from them, you need to be sending referrals their way as well!

PUBLIC RELATIONS vs ADVERTISING

I almost always  recommend my clients invest in PR actives rather than advertising. ( It isn’t just because that is our area of specialization) It is because PR creates a third party endorsement which will always have more credibility then anything you say about yourself.

But good PR is not free!  Just like advertising, it takes time to craft the right message, and deliver it to the right audience.

And regardless of where you concentrate your efforts, you need to track which methods are most effective!

Include a  public relations plan as part of  your overall business plan. Need help getting started?   Download our FREE Business Plan outline today!

In December,  I introduced a graphic of a Marketing Organization Chart I found on a blog post by John Jansch of DuctTape Marketing .

This post has been extremely popular, and I thought it would be valuable to take a closer look at some of the elements of the diagram

So in a series of post, I am going to explore in a little more detail each of the four  elements:  Strategy, Lead Generation, Lead Conversion and Customer Service.

There are three main elements of Strategy:

• Ideal Customer
• Core Message
• Marketing Material

Ideal customer. This is the element most small business owners wrestle with the most.  They are always afraid if they define the target too narrowly, they will be leaving people out.

The trick is to focus on your IDEAL customer. This is not your ONLY customer.   But the more tightly you define your ideal, the easier it is to build the other elements of the strategy.  If you are too broad your marketing messages are too vague.

Core Message. Once you identify your ideal customer it is easier to decide what to say.  What does your core customer want most? What will they value, what problem can you help them solve.   The more closely you can articulate their pain, the more likely it is they will listen to what you have to say.

Marketing Material.  This is more than a brochure or web site.  At the strategy phase it involves thinking about the most effective way to get the attention of your idea client.  Is it print or electronic communication?  Will you need to reach your client face to face.

Spend some time thinking about just these elements. Making tough choices on the front end of a marketing campaign can help small business owners create more effective lead generation programs.

Roundpeg, an Indianapolis Marketing Strategy Firm can help you build a plan to build a marketing organization chart for your small business.

Over the last few years, through networking and social media I have had the good fortune to meet a number of smart, interesting marketing professionals, around Indy and around the world.  One of the most talented I have met recently is Michael Reynolds, President & CEO of SpinWeb. SpinWeb is an interactive agency delivering marketing, branding, and design solutions to smart businesses and non-profits that would like to utilize the Internet to grow and flourish.

On the surface, I guess you might think we are competitors.  We offer similar services, to similar clients.  But Indy isn’t that small and there  is room for lots of good work.   Michael and the team at SpinWeb do good work.

I put out a call recently for guest bloggers and Micheal responded.  Today I am really excited to share his post.

Don’t Attach Strings To Your Referrals

I recently had a conversation with a client in which we were going over some ideas for some changes to his company’s web site. When we got to the cost portion of the discussion, it became apparent that he was hoping to avoid having to pay much for the updates (which were significant).

As the conversation continued, he then turned the topic to a new service that his company was considering using to offer new services to his clients. It looked interesting and he asked if I would be interested in exploring the service as a possible product offering for my clients, as well. I said that I would be interested and thanked him for the referral. I was truly grateful and was indeed interested in learning more about a product that might benefit my clients.

Then came the catch. After I thanked him for the referral, he proceeded to ask me if I thought it was a valuable referral. He then said that he was trying to help me out and that he hoped that this referral would have some value to me as we discussed pricing for his web site updates. Basically, he was attempted to guilt me into offering him a discount as a result of his referral to a potential vendor.

This is the wrong way to give a referral. For one thing, this was a referral to a vendor, not a potential client (which would have been more valuable). More importantly, all the wind was sucked out of the referral because of the strings attached to it and the expectation of a discount as a result. I no longer had an interest in pursuing it and I will likely decline to accept future referrals from this person. Finally, I am not likely to make referrals to him now because I feel that I would be participating in a game in which we are keeping score. Instead of strengthening our relationship, this interaction damaged it.

I am always making an effort to give referrals to my clients, vendors, and networking partners because I genuinely want to help them. I have no interest in discounts, kickbacks, or compensation for giving referrals to people that I respect. If I do receive compensation, I would consider it a pleasant surprise but I certainly do not ask for it.

When giving referrals, be sure there are no strings attached. By being genuine, authentic, and generous, you will build a stronger network and enjoy greater success with your referral partners.

Do you sit in the same place everyday? Drive to and from work along the same route? Tackle problems in the same manner?

Habits are easy, and they help us get through the day. Do them too often, however, and you end up in a rut. Let the ruts get too deep and it is hard to find a new solution to a problem or challenge. Sometimes drastic measures are needed to break out of the rut.

Read More…

There is a story about an impatient young man who went to visit an old scholar. He demanded the old man tell him everything he needed to know about the bible standing on one foot.

The old man smiled, stood on one foot and said, “Do unto others, as you would have them do unto you! All the rest is commentary

“What Would You Say?” -If that same impatient young man came to your business, could you meet his challenge? Could you boil down the description of your business to a simple message, deliverable standing on one foot?

Try This Next Time -The next time someone at a networking event asks “What do you do?” Treat the listener like an impatient young man. Avoid a long, detailed description of your products and services.

Instead, give a brief, but compelling description that leaves the listener wanting more … and watch what happens!

Read More…

In a world of fast change and fierce competition, the ability to find new and innovative solutions is necessary for your survival. Thinking power and creativity are your primary competitive advantages. Unlocking new ideas and multiple possibilities begin with a “Round Process”. Read More…

Many people will never read more than the headline of your advertisement or the cover of your brochure. With that in mind, make sure your headlines connect with your customers, leave a lasting impression, and encourage them to read on. Read On…

Every day, your customers and potential customers are inundated with advertising messages. So, unless you have the advertising budget of Coca Cola, you need to find another way to reach your target audience. Public Relations is a good way to do that. But how do you get your name in print? Like any other marketing endeavor, start with a plan. Read More…