24 Aug

Are You Advertising, Marketing or Don’t You Know

 

Many people confuse marketing and advertising, even those who perform these tasks for businesses.  It is important that as a business owner you understand the difference.  Both of these activities can help your business, however, using them interchangeably could harm your business.

Let’s define the two first:

Advertising – this is a paid promotion of your business, its products and services.  It gives potential consumers an idea of what you do and where.  This can happen in many different venues.  For example, television, direct mail, radio, ads in newspapers or magazines.  All advertising is good.  However it may not be good for your specific business.

 Marketing – marketing is designed to reduce the cost of sales.  It is charged with bringing your business a specific number of new customers on a consistent and sustained basis.

 Now right now you may be saying “what is the difference?”  It is a fair question.

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10 Aug

Customer Retention Can Make or Break Your Business

 

You put a lot of time and effort into acquiring your customers or clients.  You developed a product or service, you identified ways of getting it in front of those who would potentially buy it.  Your hard work and efforts paid off; you sold your goods or services.

As time goes along you increase your sale. You develop new customers and new markets for what you have to offer. As a result of your success, you broaden your offerings with new products and new services.  You feel good about what you have done.

At the end of a month, you look at your business, preparing for the next month.  You notice that your Gross Sales are down.  You walk over to your head of sales and ask why.  Your Sales Manager explains that they are selling a lot, so you begin to dig deeper.  Your next stop is your Manager for Customer Service and Retention.  They inform you that they are on target for upselling value added parts to the products and services that are being sold.   Knowing that you haven’t answered the problem, you go back to your office and dig some more.  As you review your sales you notice something.  You aren’t getting enough repeat business.

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