If a customer who complains is a gift for business why do customers ignore them?  In my particular situation I wrote a detailed letter (yes very old school on paper with an envelope) to Qantas over really really bad service I received, I also emailed as well just to make sure and 6 weeks has gone by without hearing a peep from them.  Business statistics say that only 3% of all customers complain which doesn’t mean that only 3% have reason to complain but only 3% take action.  97% choose to let it go or clearly go somewhere else.

It’s been proven that the customers that complain actually care about the product and in marketing speak are ‘advocates’ for the business i.e. usually do the company’s marketing for them through word of mouth.  76% of most business comes from word of mouth so how can businesses ignore this?  Just to throw another statistic on the fire, each customer complaint usually represents 26 other customers who have had a similar problem.  That’s 27 customers Qantas almost enough for a Qantaslink flight!  I invested 2 hours of my time to alert Qantas to a major problem and they haven’t got the courtesy or businesss sense to contact me to discuss it.  Somehow I don’t think it’s just Qantas who is looking this gift horse in the mouth.  Hmmm I wonder how their share price is doing?

What can I say just because you can doesn’t mean you should!  I’m sure you have experienced the sudden increase in email newsletters promoting everything in the shop using a ‘one size fits all’ method. It is unwanted, untargeted and e-nnoying!  When times are tough it is important not to don’t give in to negativity instead roll up your sleeves get out there and market.  But let’s do it smart people!  Let’s use marketing principles along with technology to save people’s sanity and save your customers.   Technology has given businesses the tools to do really great stuff like personalising emails, tracking who reads what and the ability to contact thousands of people at a time for almost no cost at all.  Great for businesses but what about customers?  You may be scaring them away and with the anti-spam laws you may lose them forever.

Marketing is about looking at things through the eyes of the customer.  For marketing activities to be effective they need to put customers top of mind.  Email communication needs to follow the same principles as any other effective communication.

1. Permission from the customer

I have ended up receiving emails from businesses have asked my permission to contact me but haven’t ask me if it was ok for that contact to be every day.

2.  Relevant

I get sent the same email that everyone else is being sent even though it is address specifically to me.  It doesn’t take into account what I’m interested in.  I don’t want to fly to Byron Bay without any luggage.  So stop sending me this stuff it’s e-nnoying.

3.  Delivered in the way the customer wants

I recently spoke with an advertising representative from an online and paper business directory.  They gave me the sales spiel and I said very clearly “I am interested in receiving this information if you can mail it to me with full costings that would be great.”  I even told the sales rep that I was about a 50% chance of purchasing.  He then asked me for my email address.  I said “why do you need my email address?”.  He answered “so I can send you out some information”.  I again reiterated that I wanted to receive the information by mail.  No surprises here…. I never received the letter and I guess they never got my business!

Last Thought:

Never forget that the customer has the last say and it’s goodbye or…. unsubscribe.

All businesses undertake marketing activities.  At the very least they get business cards, a brochure, a website, maybe they undertake advertising, direct marketing campaigns or other targeted promotions.  Increasingly businesses are finding that even their best marketing efforts are not achieving results.

Over the next couple of weeks I plan to highlight a range of factors that are the difference between marketing strategies many businesses use and professional marketing strategies that work.

There are many off the shelf products that promise quick and cheap marketing solutions and ‘marketing’ consultants that rehash the same promotion plan for each business.  It may have ideas but it’s based on a one size fits all approach.  In my experience one size fits nobody. It’s the same as buying an off the shelf evening dress - rarely does it fit and rarely does it have the same results as a tailored made outfit.  Like individuals, businesses, even franchise businesses have unique elements that needs to be taken into consideration in determining what marketing is appropriate for that business. The more customised the marketing strategy to meet the needs of customers as well as the business, the more powerful the results.

Many strategies fail to consider the personal attributes of the business owner who let’s face it drives the business and the personality of the business.  There is no point suggesting publicity if the business owner is not comfortable speaking in public or being contacted by the media.  Another consideration is the balance of time versus money. Some businesses are in a position to outsource marketing activities and have the budget to do so, other businesses don’t have the time to implement certain strategies nor the skills or the money.  A unique solution to their situation needs to be created (although with the no time, no money scenario a wand may be the most realistic strategy!)  The people factor of the business is rarely taken into consideration yet it can make or break a business success.

Individual Business Factors That Must Be Taken Into Consideration for Marketing Strategy Success

• Goals
• People - staff and owners
• Talents - writing, speaking, being photographic, marketing experience
• Customers - target market, unique attributes
• Budget Available - immediate, future, options for outsourcing
• Time - available for implementation, learning new skills
• Assets - customer database, website, staff, research, skills, contacts

It can take years to build up a brand.  As well as lots of money, hard work and consistent performance yet it just takes months to unravel a brand.  Let’s look at Qantas.  Qantas 10 years ago was undisputably one of the world’s best airlines known for safety, reliability, quality aircraft, professional and capable staff, generous membership programs and a choice of extensive travel routes.

Something seems to be going wrong.  In recent months the media is full of stories about the poor performance of Qantas.  It seems as though this magnificent Australian brand which had an enviable position in the market place is truly unravelling before our very eyes.  There have been reported issues of safety, issues of reliability and my recent experience suggests a serious decline in customer service.  From a marketing perspective Qantas has mucked around with its most valuable assets - a strong competitive advantage difficult to copy.  Sadly they seem to becoming mediocre like many other airlines and with a new budget airline specialist as chief I am concerned what other poor decisions will be made that affect the customer experience.  Qantas should never have risked their safety and reliability.  An exceptional safety record is hard to achieve, hard for anyone to compete with and something most people are prepared to pay for.

Where is the original value proposition gone?  I don’t think the poor performance of Qantas shares can be solely blamed on the economic crisis!  Without turning this blog into a bash Qantas site, what are your thoughts?

Tips for a strong brand

• Don’t muck with your best assest
• Identify your key value proposition and protect it at all costs
• Consider the impact operational decisions may have on your brand

Last week a workshop participant at a seminar I was presenting in Melbourne asked the question “What’s the best and cheapest way for small business to promote their brand”? Such a great question and yet such a complex issue. A brand is so much more than a slogan, point of difference or consistent image, it is the whole personality of your business. It requires more than external promotion. A brand is like a person. For customers to experience and understand your brand they look for three things.

• SAY: What your business says about your brand e.g. value propositions, slogans, positioning statements
• DO: The actions that your business takes
• BE: Whether or not the business seems to believe or live what they say.

If businesses are authentic and “are” their brand then at every contact the customer has with the business the branding will be reinforced. If a brand was a person then the clothes, actions and beliefs of that person help tell the story. If they don’t match up, who that person is and what they stand for, can be difficult to work out. In business terms if a business says that it is friendly and yet the staff don’t smile and say hello or don’t believe in helping people, then no amount of promotion is going to communicate this brand as it doesn’t ring true.

So choose think about what is authentic for you as a business and make sure your statements, actions and beliefs line up and everyday as part of the way you do business you will be communicating your brand. Make sure you SAY, DO, BE.

So there you have it. Ailsa’s Romper Room Branding Theory. What are your experiences?

A couple of weeks ago I was part of a panel speaking to businesses in the City of Stonnington about marketing in tough times. It was a delight that all three panel members choose to be optimistic rather than pessimistic. The podcast is now available and has handy hints for marketing when things are tough.

One of the biggest challenges facing small business owners is keeping high levels of motivation to continue doing what needs to be done in order to achieve success. It is not an easy thing to achieve. I think the key three ingredients are: