Marketing tips, marketing help and advice

It’s the world’s worst marketing strategy: Why is it so common?

November 4, 2019 by Jim Connolly

Without knowing it, many business owners are engaged in a dangerous race to the bottom. In today’s post, I explain why this is almost always a terrible strategy for business owners. I also share some proven advice on how to avoid it happening to you.

Let’s go.

Race to the bottom: What does it mean?

In marketing, we tend to use the term to refer to making sales or winning new clients, based on being the cheapest option. This is most common among commodity businesses. The ‘winner’ of the race to the bottom is the business that’s the cheapest / lowest priced at that time.

Some big businesses use their financial muscle to work successfully with low prices (or fees). Their buying power means that they have deals available to them, which smaller businesses simply can’t access. This allows larger businesses to compete in your marketplace, profitably, with extremely low prices.

However, small and medium-sized business owners tend to just lower their prices, as a way to make more sales or attract more clients. They then find their competitors do the same.

And the race to the bottom begins.

The prize?

The winner gets, wait for it… the privilege of building a business on a dangerous foundation of customers, who will leave them the moment a cheaper provider comes along.

It’s a high risk, low return strategy. It requires you to constantly look for ways to lower your overhead, cut corners and speed things up. All this, in an effort to attract the least loyal profile of customers in the world: Those who switch from provider to provider, looking for the lowest prices.

Why is such a high risk, low return strategy so popular with small business owners?

Simple.

They see it as an easy way to attract more customers or make more sales. However, a look at the medium and longer term picture shows why this usually goes horribly wrong.

Here’s what I’ve seen small business owners do over and over again.

Bob’s race to the bottom

Let’s take Bob the business owner as an example.

Bob decides to lower his prices by 10%. He soon notices a slightly better sales conversion rate.
So, he lowers prices by another 5%. And it improves sales even more.
Some of Bob’s competitors decide to do the same.
The race to the bottom is now on!
Bob then needs to lower his prices by another (whatever)%, because his competitors are charging the same low prices as him. Bob’s prices are now rock bottom or very close to rock bottom.
Bob continues to make some sales, BUT with very, very little profit.
At this point, it’s a case of waiting for one of the following common scenarios.
Scenario one: A well-funded competitor decides to sell at a loss for 6 / 12 months (to gain market share), Bob then has to try and survive on fewer and fewer low-profit sales.
Scenario two: Bob’s overhead increases unexpectedly and he is forced to start increasing his prices, all those price sensitive customers he raced to win will now look for the NEW, cheapest provider.

It’s easy to attract customers by reducing your prices. However, it’s unsustainable. So, if this is something you are considering, please think again my friend. Consider the medium and longer-term consequences of winning the race to the bottom.

Relax

I’ve got you covered. Here’s a massively better approach. It’s proven to work and I explain it in detail. (You’re very welcome).

Sorry to disturb you

October 31, 2019 by Jim Connolly

Photo: Shutterstock.

I received an email this morning, which contained an extremely valuable marketing lesson.

It started with the following 4 words: “Sorry to disturb you”.

There’s a lot of information packed into those 4 words. Enough for everyone who received the email, to form an opinion on the sender.

The sender knew what they were doing was wrong, which is why they opened with an apology.
The sender also knew that their email was a disturbance. An unrequested interruption from someone I’ve never heard of.
Knowing all this, they still decided to send it anyway.

Here’s the thing

Like everyone else who received that email, I stopped reading after the opening sentence. After all, a stranger just emailed us, saying they were sorry for spamming us. It’s an instant delete.

However, that email may have contained a great message. It might have offered an outstanding deal. It could have provided details of a wonderful opportunity. But their email let them down, so no one will know. The list they used. The copy they used and the tone of their opening line destroyed their email campaign.

Oblivious to this, the sender will be wondering why they received no positive response. Especially if they genuinely had something valuable to share. They’ll perhaps be pondering whether they need to lower their prices, or if email marketing is a waste of time, or if their great offer isn’t actually great.

If we consider this to be merely an example of ineffective email marketing, we totally miss the point!

It’s way, way bigger than that.

This example provides us with a powerful insight of how easy it is, for a business owner to offer an amazing product or service, only for ineffective marketing to let them down. It’s the difference between being inundated with enquiries from eager prospective customers, or being greeted by crickets.

A lesson in goal setting from the genius of Michelangelo

October 28, 2019 by Jim Connolly

Photo: Shutterstock.

How are your business goals coming along, the ones you set back in January?

As you consider your answer to that question, I’d like you to think about the following. It’s from the genius of Michelangelo.

“The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.’
– Michelangelo.

Puny goals fail to inspire us. And as Michelangelo said, even if we achieve them, we don’t really achieve anything meaningful.

Here’s a far better approach:

Set goals that excite you.
Set goals that cause you to grow.
Set goals that are worthy of you.
Set goals that motivate you.
Set goals that motivate the people around you.

That’s the kind of goal setting, which fuels you with the passion, energy, direction and inspiration you need.

No ifs. No buts. They absolutely must hire you. Here’s why

October 25, 2019 by Jim Connolly

Photo: Shutterstock.

It’s really important that your prospective clients (or customers) hire you or buy from you. And not for the most obvious reason.

Allow me to explain.

If your prospective clients go to one of your competitors, you have no way of knowing what kind of lousy service they could receive.

Anything could happen to them!

On the other hand, you know for certain what will happen if a prospective client hires you.

You know that you will look after them.
You know they will receive outstanding value for money.
You know that you will care, really care, about them and the service they receive.
You know that you will go the extra mile for them.

In short, if they choose you, you know they will be delighted.

A powerful marketing mindset

I have clients today, who first hired me over 20 years ago. This marketing mindset is what attracted them, and my total commitment to their success is what keeps them coming back.

I recommend you do the same.

You see, I truly believe you have a professional obligation to ensure that your prospective clients hire you or buy from you. Why? Because it’s the only way you can guarantee for certain that they will not be disappointed.

Now consider this:

How do you think your marketing message will improve, when it’s based exclusively on what’s best for them, rather than self-promotion?
And how do you think your results will improve, when your marketplace knows you’re looking out for their best interests?

You care passionately about your clients. You take huge pride in the quality of your work and the happiness of your clients. So let the marketplace know. Show them that their total satisfaction is your goal. That it’s what drives you. What motivates you to continuously improve. Make that message the cornerstone of your marketing.

Because it’s exactly what they need to hear… and you know that what you’re saying is the truth.

I’m busy. You’re boring. And I’ve never heard of you!

October 23, 2019 by Jim Connolly

Photo: Shutterstock.

The most successful marketing is built on strong foundations.

And here’s one of them: Before you market anything to anyone, there are 3 essential questions your prospective customers need you to answer.

I’m really busy. And I get pestered with sales messages all day. Why should I give you my attention?
Everyone promises an outstanding service. Most fail to deliver on that promise. What meaningful reasons are there for me to risk buying from you (or risk switching to you from my current provider)?
I’ve never heard of you. I’ve never done business with you. Why on earth should I trust you?

The most successful brands answer those questions fully in their marketing. And they answer them with clarity. In doing so, they capture attention, create a compelling message and build the trust required for their marketing to succeed.

In comparison

Now, let’s compare that with the marketing we see every day from small and medium-sized businesses.

Instead of capturing the attention of their prospective clients, they pester people with uninspiring, needy marketing messages.
Instead of providing a compelling proposition, they offer very little motivation why anyone should switch to their brand.
Instead of building trust, they become instantly forgettable.

Failing in any one of those areas is enough to ruin your results. That’s why it’s critical to be as strong as possible in all three areas. Here are a few pointers to help you get it right, if you’re a DIY marketer.

You’ll already know if your marketing is capturing attention, by measuring your response rates. If too few people open your emails, read your newsletters, respond to your advertising etc, see what you can learn from the vendors, whose material YOU always open. What do they do, which you can adapt into your marketing?
Crafting a compelling message is a skill that takes years to develop. This is an area where almost every business owner, who writes their own marketing, has real trouble. It’s a skill that eludes not only business owners, but many marketing providers! It’s why you see at least one marketing provider at every networking event, because their own marketing sucks, so they need to network for leads. So, if at all possible, get expert help with this from a proven professional.
Building trust is something I covered in my previous post. How to add credibility to your marketing.

One of the big shifts in business over the past decade or so, is the speed at which great marketing can spread. A natural consequence of this, is that average marketing (the type that kind of worked in the past), is less and less effective. It becomes hidden under the marketing messages that get shared and talked about.

Yes, the advent of low-cost digital communications has opened up a world of opportunity. However, if you want to benefit from this amazing opportunity, it’s vital to create marketing that your prospective clients will embrace and share.

How to add credibility to your marketing and why it’s now essential

October 21, 2019 by Jim Connolly

Photo: Shutterstock.

Have you ever looked at the marketing promises made by your competitors?

Your most unreliable competitors will promise to deliver on time, every time.
Your lowest quality competitors will promise premium quality at low prices.
Your least competent competitors will promise a highly professional service.
And they’ll all have testimonials. Testimonials that are often the opposite of what a real client or customer will experience from them.

It makes sense.

It’s horrible, but it makes sense.

After all, they’re hardly likely to admit that working with them or buying from them is a total nightmare. You see, the mindset that says it’s okay to produce low quality work and charge over the odds for it, has no problem being dishonest in other areas of their business.

What does this have to do with you?

Your prospective clients or customers have been lied to before. So, the claims you legitimately make in your marketing will only be treated seriously, if you back them up.

Here are a couple of ideas, to help the truth of your marketing stand out.

Adding credibility to your marketing

One way to add credibility, is to link from your website to external (preferably independent) sources. For example, link from your website to external reviews or positive press / media coverage on news sites. (Here’s how I do it). Similarly, if you’ve been accredited by a respected organisation, link to the page on their website, where you’re mentioned.

Another way to add credibility, is to show up regularly with useful information, via a blog, vlog, podcast or on social networks. By providing genuinely useful, informed advice, you demonstrate your knowledge. You also have an opportunity to show your personality. By demonstrating your knowledge and allowing your marketplace to get to know you, you create a potent marketing mix, which helps build trust.

In short, be aware that today’s marketplace is highly sceptical of unsubstantiated marketing promises. And use as many credibility assets as possible.