Yes, Go After Your Competitors' Customers

Is it proper etiquette to try and grab customers from your competitors during a recession? Absolutely! Any time is the right time to go after market share.

Times are tough, right? How can you get your competition's customers to switch to you? Here are some dos and don'ts for keeping it classy while gaining more customers.

DO continue your marketing efforts.

Downturns are when the biggest shifts happen in market share. If your competitors stop spending or cut budgets for sales and marketing, it's your opportunity to attract attention and get noticed by their customers.

DO focus on your core type of customers.

Stick with the customers that you know best. Who buys from you through thick and thin? If you're an airline that primarily caters to business travelers, then target business travelers. If you're having success selling life insurance to 30 to 40-year-olds with teen and tween kids, then stick with them. Now may not be the time to go after an entirely new audience.

DON'T target your competitors by name.

It's just my opinion, but I think it's better to take the high road. If you directly name your competitor, it can come off as a little underhanded and unsportsmanlike. I have recently noticed more insurance company ads on TV using competitors' names when talking about who has the lowest rates. You may gain customers in the short term, but they might be fickle! Also, make sure you deliver on your promises. If not, your competition will most likely point it out.

DO promote what makes you better.

You can indirectly say that you offer something that's better than the competition. In late 2008, McDonald's ran billboard ads that simply said, "four bucks is dumb. now serving espresso." It was a rather obvious jab at Starbucks' higher pricing. Reportedly, the advertising and publicity from the billboards increased McDonald's coffee sales by 30% in 2008.

DO consider adjusting your product strategy.

Think of new ways to give customers what they want. If you're in financial services, customers may want more hand-holding. You could offer free consultations or conduct seminars to help reassure your customers and give them face time with you. Consider creating a blog containing topics and information that's relevant to your customers. Start a Twitter account that provides customer service and support - check out Wells Fargo - or offers discounts and coupons. It could also be a good time to launch new products that suit your core customers' changing needs.

DON'T panic and lower your prices.

Many companies are focusing on price in their marketing and advertising. And yes, price is an important factor for most consumers right now. While a price cut to make your product or service more appealing than the competition may feel like a good idea, in the long run it can undermine the foundation of your products or services. Besides, at some point, you're going to want to raise prices again.

So, go out there and get more market share. What are you doing to take your competitors' customers? If you have any experiences with targeting competitors by name, lowering prices, or adjusting your product strategies, post a comment. I would love to hear from you!

Say "Hello" to Your Customers

I recently read an article about the amazing benefits of one simple act: saying "hello." (You can read the entire article on the Reader's Digest website.) The author did an experiment spending one month saying hello to everyone he met. He made some interesting discoveries.

First, he found it harder to greet everyone he met than he initially expected. As we get older, it's more difficult to put ourselves out there and say hi. We fear rejection and that people might just think we're weird.

It also caught people off guard. He found that it was a nice way to grab someone's attention, and it usually helped him get what he wanted. If you have a genuine, personal interaction with someone, they are more likely to help you out.

He learned that even the brief interaction of saying hello to someone can improve productivity. A school did a study where teachers greeted each student as they came to class in the morning. They found this simple act ultimately raised the kids' productivity by 27%.

And, he discovered that sometimes the people he might not normally acknowledge were the chattiest after he took the initial step of saying hello. It's almost impossible to say hello without smiling. Smiling has been linked to providing health benefits, such as lowering blood pressure, boosting immunity, and releasing endorphins. Plus, smiling can do the same for the recipient - who will most likely say hi and smile back.

After reading this article, it made me wonder what effect it would have if we took every opportunity we could to say "hello" to our customers. Especially in a down economy, loyal customers are a great asset.

Keep talking to your customers.
You may think that now is the time to cut back on your direct marketing programs to customers - because they are already your customers - and focus on acquisition. But, focusing on customers is even more critical during recessionary times. You've probably heard the old marketing adage: It costs less to keep a current customer than acquire a new customer. It still holds true, and it makes more sense to keep your customers happy so they'll stick with you.

Make customers feel safe with you.
Take the time to reach out to your best customers and reinforce your value proposition. Send customers a special direct mail package or email offering a valuable service. Create a positive message that thanks customers for their business and offers a discount or a free perk. It doesn't have to be a big, expensive item. Now is the time to say "hello" to customers and reinforce their confidence in both the products or services you're selling, as well as the company that's behind the products. Let customers know you're doing okay, and you appreciate that they are loyal to you.

Tailor your messages and offers.
Think about creating more focused messages for different customer segments. You may be able to mail less, but mail more effectively. You can create variable content for your current direct mail programs that speaks more directly to customers needs. For instance, you can vary the offer based on recent purchases or activity. If you know that customers who buy X typically also like Y, send a special offer for Y and thank them for buying X.

Find new ways to reach out.
Now is the time to get creative and find new ways to say "hi" to your customers. Maybe you can send a personal letter or email letting customers know they are important to you. Or, if you normally send direct mail packages, experiment with self-mailers or postcards. Perhaps it is time to make your presence known in the social media space or begin blogging. Now is also a good time get back-to-basics with simple messages and no-nonsense formats.

Build trust with direct marketing.
I believe customers still trust direct mail. Digital media is important - and I think it's even more powerful when integrated with direct mail - but customers also value what is written on paper. And direct mail works! It adds credibility to your message, and there's a perception that you're willing to spend money to mail information to them. Hello! Make your customers smile and send them compelling, innovative, smart direct mail.

Excel at customer service.
I recently called a mail order catalog company to straighten out an order and shipping issues. I have been a customer for over 15 years and have always been so proud of their exceptional customer service. On this call, the customer service rep argued with me and got a bit snippy. Besides being mad, I was very disappointed. They let me down. More than ever, it's time to step up customer service. See my blog about the importance of great customer service. It will be a while before I order from them again.

Take time to reach out to your customers and say "hello." It can be a simple mailing, an email, or even a phone call. In addition to making more sales now, you'll also receive long-term benefits. By sticking with customers, showing them you truly value their business, and giving them extra attention and perks, you will build even greater loyalty and retain those customers through thick and thin.

How to Generate Good Leads

Do you market a complex product or service? For instance, long term care insurance and annuities are complex products. It can be a lengthy process to present the need for these products, as well as explain the details of the products themselves. Or, do you sell an expensive product or service? For instance, buying an aircraft, passive solar system, or a piece of medical technology is a big investment.

A complex or expensive product usually means a longer sales cycle. Marketing in the business-to-business space means careful targeting is needed. Direct mail is a valuable tool to help find and nurture good leads.

When leads are well qualified, it improves the sales process. Your salespeople can spend their time doing what they do best – selling – instead of cold calling and tracking down their own leads.

To obtain qualified leads, a lead generation program should follow a few simple rules.

1. Consider your list.
While marketers will argue percentages, we can all agree that the list is a critical component of any direct mail campaign. Make sure your mailing list is reaching the kind of businesses or individuals who will buy your product or service. To beef up your database, you can buy a list of company names in a targeted industry. To build your own good leads, you can attend trade shows, seminars, and industry events to gather new prospects.

2. Develop your offer.
Many lead generation mailings forget to make the offer clear. Typically, the offer in lead generation is not your product or service. It's something to entice the reader to respond so that you can capture their information. For instance, prospects respond for a free booklet, special report, brochure, sell sheet, or free Demo. Sometimes you may want to push for a meeting with the prospect. Be sure you offer something in return. For example, "We will analyze your current power needs and make recommendations that can save you money."

3. Hone your creative package.
Be strong on benefits. Make sure prospects understand the need that your product or service can fulfill. Unless you have an extremely attractive price, you should typically avoid price in the lead generation and let your sales staff introduce it later.

4. Less is more.
In lead generation, sometimes it's better to give less information. Tease the prospect to want to know more. Give them a reason to respond to your mailing. For instance, could prospects save money? Can you make their job easier? Help them grow their business? Your goal is to quickly entice them to respond to your offer.

5. Encourage response.
Make sure prospects know how to respond. Say it often. Include up to two ways to respond – mail, phone, email, or on your website. Provide a business reply card or envelope to make it easy to drop a response in the mail. Or supply a toll-free number that is answered by a real person.

6. Take advantage of your website.
Your company's website can play a valuable role in lead generation. Your prospects may need more information before they are ready to respond to your mailing. A micro-site or landing page can be customized to correspond with your direct mail efforts, provide more details about your offer, and encourage prospects to respond online. You can create a response form online to collect these leads, fulfill your offer, and quickly pass the leads on to your sales staff.

So, you've sent out lead generation mailings, and you have leads for the sales staff. Direct mail's job is done, right? Actually, it's just the beginning. Now it's time to "nurture" those leads. See my blog "The Power of Good Collateral Materials" to learn more about turning your leads into sales.