Tuesday, December 16, 2008

How well do you know your customers?

Lately with the economy being as it is, I've been asking myself this question. How well do I know my customers? For myself, I have to admit that it is at times trying to get to know all your customers, but lets focus on the 20% of clients which give you 80% of your business (i.e. the 80/20 rule).

How well do you know your customers? If your answer is not very well or not at all, perhaps some of these ideas could be of use to you.

1. Newsletters: Use this technique to engage your customers in a discussion. The best method to do this would be to create a newsletter which gives your customers interesting bits of information and ultimately there could also be a Q&A section where the readers of your newsletter could submit question to you to seek your advice. This would really demonstrate your expertise in your business.

2. Co host an event with another business: This would apply to companies targeting the same consumer base but not selling similar products or services. Examples could be:

- A bank hosting a small seminar with a marketing consultant to give tips and advice to customers on the best way to market their business.

- A financial planner and an insurance agent teaming up to run a talk on savings, retirement planning, etc.

- A caterer and wine specialist hosting a wine tasting and food event entitled "matching the correct food with the correct wine".

These ideas could help you to create a better relationship with a your customers and you won't have to resort to spamming them just to remind them that you are still around. These ideas are enduring and like all marketing efforts they take time to build up momentum and gain an audience.

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Wednesday, December 3, 2008

Terms and Conditions

Its been a while since my last posting. My apologies for the absence.

Of late, I've been receiving quite a few value meal vouchers. In my last entry on delivering value, I advocated the importance of delivering value into your business. But recently, I've come across a restaurant which I felt did not quite delivery value or to be more precise, I felt they were cheating their consumers. Lets be very professional here. I've blotted out the name in order to save guard the restaurant.



When you first look at this voucher it says CRAZY FOOD OFFER... 1 For 1. But if you look at the bottom right corner of the voucher, 2 things stand out. First off, it says Saturday & Sunday Only... and of course Terms and Conditions apply. No problem with the first condition...

Most businesses always try to draw business towards their slower times and maybe for this restaurant this could be the case. But, let's take a look at the back portion of this voucher.


If you take a look at bullet number four you will notice this statement there, valid for dine-in only with a minimum spending of RM 100 (i.e. USD 27.00). My point of contention is this, for you to be able to spend RM 100 when your food meals are half priced would mean that you would probably have to order an appetizer and desert and probably booze.

So if I'm going to half to spend a minimum or RM 100 before I can get my meals at Half price then why bother giving me the discount at all...

The point is this, if you are going to create a value promotion of any kind, its important to take note of a few points:

1) That you can actually afford to and are willing to give such a discount. 50% off meals from my experience is quite a hefty discount.


2) Try not to have terms and conditions which are too stringent. If not, my bet is that the promotion will most likely not be very successful.

The above example of the restaurant clearly contradicts these 2 points, having me fork out RM 100 before I qualify to use the voucher only tells me either that the restaurants is not able to really give this kind of discounts or they are not very sincere in their marketing by inserting such ridiculous terms. Either way, my feeling is that this campaign may not do very well.

So, a good thing to remember is that in delivering value, more often than not this can be a double edge sword, do it right and you'll have a tremendous increase in sales. Be too stringent and the promotion will probably fail and could possibly hurt your brand image. Till next time.


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