Tag Archives for " Marketing 101 "

2 branding blog by BNBranding in Bend Oregon

Paralysis by analysis (How fear and data can kill great marketing)

Everyone’s talking about “big data” and how data-driven marketing is the new wave. There’s no doubt, big companies have more data to work with than ever before. And that data often contributes to successful marketing initiatives.

But it can also be a drag. Here’s an analogy:

Branding firm in Bend Oregon blog postIn golf, over-analysis never produces good results. If you’re thinking too much about the mechanics of your swing, rethinking the last shot, regripping the club and worrying about the position of the left pinky at the moment of impact — you’re going to fail. (Ever seen Charles Barkley swing a club?)

Same thing happens in marketing departments and small businesses. People get stuck in a rut of over-analysis. They think things to death and worry about all the wrong details. When they finally pull the trigger on something, it doesn’t meet expectations because, perhaps, it was micro-managed. Which, of course, makes it even harder to pull the trigger the next time.

Blame it on fear. Fear, ego and insecurity. Most marketing managers are not operating in corporate cultures that encourage frequent failure. Just the opposite. So they’d rather do nothing than launch a campaign or initiative that might not produce stellar results.

Instead, they bide their time by gathering data, analyzing the situation, planning, second guessing things and making up excuses. “Well, as soon as we know exactly what the break down is of last quarters numbers and compare those to the previous fiscal year we’ll really know where we’re going. We can’t do anything till then.”

Continued analysis is just a form of procrastination. And procrastination is just fear and insecurity talking.

In small businesses you can’t get away with that for long. And there are times, even in a corporate environment, when you have to trust your gut and “Just Do It.”

Branding blog on data-driven marketing from BNBranding in Bend Oregon When Nike launched the famous “Just Do It” campaign in 1988, they had no market research data whatsoever. In fact, the top managers at Nike were absolutely anti-research. So the brief given to the advertising agency Weiden & Kennedy was pretty simple:

“We should be proud of our heritage, but we have to grow this brand beyond its purist core. We have to stop talking to ourselves. It’s time to widen the access point.”

Widen it they did! In “A New Brand World, Scott Bedbury said, “The unique brand positioning of “Just Do It” simultaneously helped us widen and unify a brand that could have easily become fragmented. The more we pushed the dynamic range of the Just Do It commercials the stronger the brand positioning became.”

“Just Do It” will go down in history as one of the most successful and memorable slogans of all time. It cemented Nike’s #1 position in a massive market and became the cultural soundbite of an entire generation of wanna be athletes and weekend warriors.

And they did it without “big data.” No one would have called it a data-driven marketing initiative.

Don’t get me wrong, when it comes to jump-starting the creative process there’s nothing better than a veteran account planner with good research and a brilliant creative brief. But let’s face it, that scenario oData-driven marketing management fear of failurenly applies to one-tenth of one percent of all marketing efforts. Only the biggest brands with big ad agencies can afford that luxury.

Most business owners are only dealing with little bits of data, pieced together from various sources like Survey Monkey, sales meetings and customer comment cards. If they’re operating from a place of fear and insecurity, this piecemeal data is not enough to go on. They’ll always need more. Always hedge their bets saying “we don’t have enough information to go on.”

At some point, they just have to move forward, regardless.

And here’s another type of “data” that constantly sabotages progress: Institutional memory. Managers who have worked somewhere for a long time often say ” we don’t do it that way.” Or “this is how we’ve always done it.”

And how’s that working out?

Insecure marketing managers are often the ones who know, deep down, that they’ve been promoted beyond their level of competence. They’re afraid of being found out, and that fear affects everything they do.

data-driven marketing on the Brand Insight Blog by BNBrandingThey fill their teams with sub-par talent in order to elevate their own status. They find their way onto teams that are led by other grade C executives, rather than A-grade players. They squelch initiative and kill great ideas at the drop of a hat. Avoid these people at all costs!

To the insecure over-analyzers I say this: Pull your head out of the data and Just Do It!

The best way to gather more data is to get something done. Then look at the results. At least your missteps and blind alleys can lead to insight about where NOT to go next.

If you do nothing you have nothing to go on. No new data.

One of my favorite sayings applies here: “Action is the antidote for despair.” If you’re stuck, do something besides more analysis and more stewing. Take action and keep in mind, failure is, ultimately, the key to success.

Creative types— the writers, art directors and designers who execute great ad campaigns — know this intuitively. Getting shot down comes with the territory, and we always have five more good ideas ready to roll. If only the client would just let go and pull the trigger.

So by all means… gather as much data as you can. Use all the information at your disposal to gleen some insight that will, hopefully, inform your marketing efforts. But don’t expect data- driven marketing to be the panacea. What’s much more important than big data is a big idea.

For more on how to manage your marketing efforts, check out THIS post.

 

1 Marketing lessons from the not-so-surprising failure of Sears

Marketing lessons from Sears on the Brand Insight Blog from BNBrandingThe Sears store in my hometown recently closed its doors. Shut down after a 60 year presence in the market.

Can’t say I’m too broken up about it either. I bought a few tools there, once upon a time. And an appliance or two, but I certainly wouldn’t say I had any fond memories of the place, much less brand allegiance.

The recent demise of Sears, once the country’s largest retailer, is replete with valuable marketing lessons for business owners, entrepreneurs, marketing execs and brand managers. It’s a classic American entrepreneurial tale.

Sears dates all the way back to 1886 when Richard Sears started selling watches to his coworkers at the railroad. Alvah Roebuck was his watchmaker, and in 1893 the name Sears Roebuck & Co. was incorporated.

marketing lessons from Sears and BNBranding in Bend OregonThey grew the business rapidly by selling all sorts of merchandise through the mail at a price that undercut the local mercantile. The offerings were broad — everything from a Stradivarious violin to patent medicines and do-it-yourself houses — but the target market was narrowly defined: small towns where the general mercantile was the only real competition. Western settlers used the Sears catalog for everything under the sun.

It was wildly successful niche marketing, for awhile.marketing lessons from sears on the Brand Insight Blog by John Furgurson

Sears went public in 1901 and in 1925 the first Sears store opened, in Chicago.Mr. Sears got ridiculously rich. Industrialist, oil baron rich.

By 1933 they had 300 stores and the mail order business began to take a back seat to the retail business.

Over the next 50 years Sears became a multi-national retail empire, with 2200 stores and the world’s tallest building as its corporate headquarters. The company obviously did a lot of things right over the years.

For instance, Forbes Magazine reported that “Sears successfully developed some of the strongest and most famous private-label brands in history, in any channel, in the U.S. Those brands include Craftsman tools, Kenmore appliances, Diehard batteries, Weatherbeater paint, and Roadhandler tires.

Marketing lessons from Craftsman on the brand insight blog

One of many successful brands that Sears built.

Those are great names, and the success of those product lines is textbook branding. Someone at Sears was well advised to resist the line extension trap and NOT put the Sears name on a car battery or a paint can.

Some Wall Street insiders believe it’s those proprietary brands that could save Sears from its current “slow motion liquidation.” In fact, there have been rumors that Sears will begin selling some of those brands through other retailers, including Costco. Maybe there’s a future for Sears as a wholesaler???

Sears is a good example of how success often leads to temptation and complacency. Temptation to expand and diversify into other businesses and complacency when it comes to the core of the brand. (I’m not sure anyone in the last 30 years could even define the core of the Sears brand. They were all over the place!)

Sears got into the insurance business with AllState, the financial services business by buying Dean Witter Reynolds, the real estate business with the purchase of Coldwell Banker and even the credit card business, with the launch of the Discover Card.

In the meantime, they missed an opportunity to dominate the direct marketing business, they neglected their retail stores, failed to convert their catalog into a successful ecommerce business, and let their wildly popular private label brands languish.

So much for a clearly defined Sears niche.

For 20 years Sears has been trying to re-position itself as a competitor to Macy’s, JCPenny, Kohl’s and Target. Remember the slogan, “The softer side of Sears?” That was an ill-fated attempt to sell clothing. Now they have the Kardashian Collection. Yikes!

Marketing lessons from The Kardashian Collection. Does this look like Sears to you?

The Kardashian Collection. Does this look like Sears to you?

Forbes magazine reported: “Sears is relying mainly on inauthentic celebrity exclusives (does anyone really believe that Kim Kardashian would actually shop at Sears?) to attract younger, fashion-conscious consumers, and it is clear that Sears has lost its way.”

As Laura Ries put it, “When faced with a broadening of its category, Sears should have narrowed its focus and become a specialist. Instead of shifting to the “softer side of Sears,” the retailer should have further embraced its harder side.”

The department store niche is not the answer to Sears’ problems. Walmart has taken both the price and one-stop shopping advantage. Target is positioned as the aspirational trendy choice. Home Depot is the place to go for home improvement. Amazon has the online convenience advantage. Best Buy dominates in electronics. Lowes is succeeding with appliances. There’s just no room for a general purpose department store that’s trying to be all things to all people.

Even if there wasn’t all that competition, you’d still never convince people that Sears is a good place to buy clothing. That was never going to fly!

Sears Brand car battery

Not sure what can jump start Sears at this point.

It will be very interesting to see what becomes of the company now that it’s merged with Kmart and owned by infamous hedge fund manager Eddie Lampbert. The stock has lost half its value. They’re closing 120 stores this year. And there doesn’t seem to be a plan in place to revive it.

The company’s latest hail-mary strategy is “a free social shopping destination and loyalty rewards program called “Shop Your Way.” (Note to management: A loyalty program’s probably not going to work too well in all these towns where the stores have been shuttered.)

Even the most beloved retail chains have a hard time with loyalty programs. A recent study by McKinsey & Co. found that despite their general growth and popularity, loyalty programs actually erode margins and destroy value for their owners. Companies with them grew no faster than — and sometimes slower than — those without loyalty programs.

The latest update on the Sears saga has Lampbert borrowing a page from Donald Trump’s playbook, blaming irresponsible media coverage for Sears’ troubles.

According to the Business News, Sears has not shown a profit in the last six years. And talk about spin… Lampbert went so far as to liken that performance to Amazon’s early years.

That’s delusional leadership.

Crain’s Chicago Business summed it up the best: “If the hedge-fund mogul knew how to fix Sears, he’d have done it by now.”

There are only two things the company has going for it: massive real estate holdings, and some great brands NOT named Sears.

 

For more marketing lessons and insight on marketing leadership, try this post.

 

1 Fake Thrills — Another Automotive Marketing Misfire.

Automotive advertising, as a category, is notoriously bad. And the Toyota Camry is not an exciting car. In fact, some automotive writers contend that Toyota’s building nothing but toasters these days. Despite that, the Camry has been hugely successful and has been the best-selling car in America 15 of the past 16 years. (Camry was No. 1 from 1997 to 2000, lost to the Honda Accord in 2001, and has reigned since then.)

Apparently, there’s a huge segment of the driving population that does not care about horsepower or handling or sexiness. Just reliable, utilitarian, point-A to point-B transportation for this crowd. My father drives one, and he fits the demographic perfectly… white, suburban 80-year old male who only drives a few miles a month. The last thing he’s looking for in a car is a thrill ride.

7165c3f5dc0c28a95fd2723b16f34ec0And yet here comes an ad campaign for the Camry, titled “Thrill Ride.”

I was enamored with the TV commercial at first. What a great idea… a car as a high-speed turbulent thrill ride captured in a reality-TV format. All they have to do is build a super rad roller coaster style track and then race the car up and down the hills, around the high-G turns, and into consumer’s hearts.

Then I realized it’s a Camry commercial.

Classic case of a great advertising idea executed poorly for the wrong brand. Once again, we have an automotive brand trying to be something it’s not.

The whole idea is misaligned with the Camry brand. “Thrill Ride” is not the least bit authentic, nor is it relevant to the people who might really be interested in a Camry. (They might have fond memories of ancient, wooden roller coasters, but they don’t want to ride on one.)

And what’s worse, the spot doesn’t even deliver on its ill-advised promise of being thrilling.

The so-called “thrill course” features one little hill, a banked turn, and a tunnel. There are relatively young, hip people riding shotgun as the Camry inches its way around the course. It’s a reality TV on Geritol.

I can understand why the Brand Managers at Toyota would want to appeal to a younger audience. And I can even go along with the premise of being a little bit more fun. But why do it in a way that’s utterly fake and out of context?

Why leap all the way to “thrilling?” Consumers are too smart for that. As one YouTube viewer wrote, “So you’re basically saying that the only way your Camry will be exciting is to drive it on some mock roller coaster course.”

Why couldn’t they advertise the car’s popularity and reliability and resell value, but in a fun way?

“Among the boring sedans targeting people over 50, the Camry is the MOST FUN!” That, I could buy. But there’s no way Toyota will every convince people that the Camry is thrilling. They could launch one into space and parachute it back to earth, RedBull style, and it’d still be a boring brand.

But in this case, boring is good. People eat it up! Why are they trying to be something else? There are plenty of thrilling cars already on the market that don’t sell nearly as well as the Camry.

Bloomberg News reports that in 2014 the era of Camry dominance could run out. There’s a lot of competition in the midsize sedan segment from Kia, Honda, Huyndai and the Ford Fusion. Perhaps the Camry spot was a knee-jerk reaction to the Fusion, with Toyota execs saying, “we gotta be cooler and appeal to a younger target audience like they have.”

Good luck with that.

Assuming you built a thrill course worth its salt, the spot would work brilliantly for BMW’s Mini brand. The Mini is a car that runs on rails, delivers thrills and is genuinely fun in every way. The analogy works.

With the Camry it falls on deaf ears.

At the end of the commercial one of the actors says, “like maybe I’ll look at a Camry differently.” That sounds like a line stolen right from the creative brief under the header “objective.” I seriously doubt this spot will do it.

Camry commercial

And more importantly, why would Toyota want people to look at the Camry differently??? Seems to me, looking at it as the #1 selling car in the country with outstanding resell value and a super-high reliability rating would be plenty.

So here’s some advise for brand managers and business owners… if you’re lucky enough to have the best-selling brand in your category, don’t pretend to be something else. Don’t lighten your offering in order to appeal to a seemingly broader audience. Stick to your core. Resist the temptation to leverage your brand it into some other line of work.

For example, if you’re Guinness Stout you don’t start advertising an American-style lager.

If you’re Harley Davidson you don’t start advertising a new line of lightweight motocross bikes.

If you have the best selling sedan in the country that happens to be a bit vanilla, don’t try selling yourself as a spicy hot sporty sedan. You’re wasting your breath.

 

1 branding fundamentals in the guitar guitar business

The ABCs of Branding: RCD

Relevance. Credibility. Differentiation. These are branding fundamentals. When you look at companies — large and small — that have become successful brands, you’ll notice strength, consistency and often superiority in those three areas.

Branding Fundamental #1: Relevance.

Brand relevance is closely related to specialization and niche marketing. Because you can’t be relevant to everyone. My friend Preston Thompson painstakingly crafts high-end guitars for discerning bluegrass musicians who are looking for a very specific, classic, Martin-like sound.

Obviously, the Thompson Guitar brand is not relevant to those of us who don’t play the guitar. Duh! But it’s also NOT relevant to most guitar players. NOT relevant to pop stars or young, smash-grass musicians. Not relevant to classical guitarists. Not even relevant to most blue grass guitarists.

Wisely, Preston and his team don’t worry about that. The Thompson Guitar brand IS relevant to the tiny, narrow niche of customers they’re looking for. Rather than casting a wide net, and trying to be relevant to a broad audience of musicians, they’re staying esoterically focused. Relevant to few, but highly valued.

The more focused you are, the easier it is to maintain relevance among the prospects who matter most.

Relevance is not an absolute. In fact, it’s a bit of a moving target. Ten years ago Blackberry was a highly relevant brand among young, upwardly mobile, hyper-busy professionals. Not anymore. Technological advances from Apple and Google wiped the Blackberry off the map. Such is life in the world of high tech… if you’re not innovating quickly your brand relevance will fall faster than you can say Alta Vista.

Relevance in the restaurant business is also ridiculously fleeting. Foodies, who are the bread and butter of the trendy restaurant scene, suffer from a severe case of “been there done that” syndrome. So when something new comes along, they’re gone and the hottest restaurant of the year gets quickly supplanted by the next great thing. The restaurants that thrive in the long run find an audience after the foodies have left the building.

Sears is still relevant to a very small audience of elderly consumers who have been buying appliances and tools there for 50 years. It’s NOT relevant to younger consumers who represent the future of commerce. High school age girls would rather be shot than caught shopping at Sears.

branding fundamentals too many choices of beveragesSometimes entire categories experience a dip in relevance. Like what’s happened in the soft drink industry… bubbly drinks like Coke and Pepsi are not as relevant to young consumers who have taken to Glaceau Vitamin Water, Gatoraide, SoBe, Arizona Iced Tea, Kombucha and more than 50 other alternatives. It’s a function of choice, really. When I was growing up, we didn’t have all those choices. Just milk, or Kool Aid in the summer.

The more choices there are in your category, the harder it is to maintain relevance. It’s tough staying “on the radar” when there are so many new products, new companies, and new offerings being unveiled. How many of the 50 brands of flavored water do you think will be around ten years from now?

Being relevant equates to being meaningful. If your brand is meaningful, you’ll generate interest. People will desire it. And they’ll take action. That’s what you want: Interest. Desire. Action.

Many brands fail because they didn’t really mean anything to begin with. Others lose their meaning over time, often due to a lack of credibility. They haven’t mastered the branding fundamentals.

Branding Fundamental #2: Credibility

Credibility begins by knowing yourself, your brand, and the core essence of your enterprise. You can’t stay true to yourself if you don’t know what you’re really about… your passion, your purpose and your promise. Write them down.

It’s been said that branding is about promises kept. That’s how you build trust and loyalty. So don’t bullshit people about what you can do or deliver. (That’s another, very basic, branding fundamental.)

Good sales people often gloss over the realities of delivery in order to get the sale. Like the famous line from an old FedEx ad… “We can do that. Sure, we can do that! (How we gonna do that?”) Every time you over-promise and come up short, your credibility takes a hit.

Instead, set realistic expectations. And if things do go wrong, don’t be afraid to say, “yeah, we really screwed up.” And do it quickly! In this world of social media you have to move fast to stay ahead of any bad news.

So let’s assume that you know yourself well and you’ve established a trusted brand. The easiest way to screw it up is to advertise something you’re NOT. Like a personal injury lawyer claiming to be friendly and honest.

And if you really want to compound the problem, try using a celebrity of questionable credibility. That’s a double whammy! Every brand affiliation reflects on your credibility.

Often what you’ll see is advertising based on wishful thinking rather than brand realities or customer insight. The ego of the business owner clouds the message that gets out and harms the credibility of the company. Ego is also a common culprit when it comes to differentiation… CEOs and business owners start thinking they can do anything.

Branding Fundamental #3: Differentiation.

The best brands take the conventional thinking of their industry and throw it on its ear, disrupting everything that came before. They discard the age-old excuse; “Yeah, but we’ve always done it this way.”

You cannot differentiate your brand by watching the rear-view mirror or by following the lead of others in your industry. Instead, try the convention-disruption model… Think about the standard operating procedures and practices of your industry – the conventional approach – and do something else.

There are three key areas where differentiation can produce some dramatic business gains:

branding fundamentals product differentiation
Product/Service Differentiation

The best marketing programs begin with products designed to be different from the get-go. There are plenty of ice cream brands out there, but only one with the crazy, mixed-up flavors of “Late Night Snack.” Ben & Jerry’s continually differentiates itself with its creativity in the flavor department.

Operational Differentiation

If you have me-too products you can still differentiate yourself through operational innovation. Be more efficient, more employee-friendly, more environmentally conscious, whatever. For Walmart procurement and supply chain management was the differentiator. That’s what enables them to keep prices so low.

Business Model Differentiation

This is a good option that applies mostly to start-ups. If you can find a better business model, and prove that it works, investors will notice. But keep in mind, consumers might not know the difference, so you still have to do other things well.

Marketing Differentiation

In crowded markets with many similar offerings it’s often the advertising and marketing programs that push one brand to the front of the pack. Additionally, in advertising circles there are three areas where you can differentiate yourself: Strategy, media, or creative execution.

Take AFLAC for instance… Before that obnoxious duck came along, no one even knew what supplemental insurance was. That’s creative differentiation. And no one else in that niche was running television. That’s media differentiation. The famous “Got Milk” ad campaign utilized a disruptive new strategy for the category, as well as exceptional execution.

RCD. Relevance. Credibility. Differentiation. Most companies are lucky to get one or two out of three. The greatest brands are three for three.

 

 

 

 

 

 

 

 

 

 

5 Who reads long copy these days? The hungry ones.

I’m really tired of people telling me no one reads anything anymore. “Copywriting doesn’t matter.” “Long copy is dead.”

A client recently said he didn’t want professionally-written web copy because, “no one reads it anyway.” He insisted that “People go to a site looking for something very specific. They don’t want to read, they just want to find what they’re looking for and move on.”

Begs the question… what ARE they looking for?

bend ad agency blog post about long copyIf a user has found your site, and has gone to the trouble of clicking in, they’re obviously looking for something they think you have… Information, products, services or insight of some kind. They’re hungry, and they’re following a crumb of promise, and you darn well better feed them something tasty.

When people are serious about a purchase, they read plenty!

It’s self-selected relevance… ONLY people who are interested in your product, company, or niche will feast their eyes on your copy. There’s absolutely no need to address anyone else. And it’s been proven, time and again for more than 100 years, that people will read long copy if it’s relevant to their needs.

So to that client, I suggested he think of his website as a catering gig… The home page is the appetizer. You can’t just tease them with the first course and then leave the party. At some point, you gotta give them the meat.

And guess what… When you do give them substantial, well-written copy, your website will perfoLong copy sell the sizzle and the steakrm better from an SEO standpoint. (Google it!)

Many companies invest big money on the design and programming of a new site and then insist on using free,“factual content” from inexpensive third party sources. Or they have an intern cut and paste “keyword rich” copy into the site.

But the faulty logic of “free content” leads to a detrimental, self-fulfilling prophecy… A couple months later that business owner will look at his Google analytics and see that users aren’t spending any time on those pages of the site. Inevitably, he’ll say, “told you so. Long copy doesn’t work.”

Of course no one read that free content. It has no flavor! There’s no connection to your brand, your company’s culture, your product or your unique selling proposition. It’s the exact same tasteless corporate blah, blah, blah that everyone else in your niche is saying.

It left a bad taste in their mouths, and they went elsewhere. You had them at the table, and you left them hungry and disappointed.

The argument for free content reminds me of the business owner who says, “Oh, I tried radio and it never worked.” How many times have I heard that one? My response is always the same: “Uh-huh. Let’s hear it.”

Inevitably, the radio spot used to prove the point involved two on-air “personalities” and some inane dialog that’s about as natural as botox on a Pug’s face. Boring, vanilla flavored crap. Or worse yet, a locally produced jingle.

The fact is, people will respond to a well-written radio spot if it’s relevant to them. If it’s not relevant, or incredibly entertaining, they’ll simply change channels.

Same with web copy.

long copy still works brand insight blog from BNBranding bend oregon

long copy still works

People have been debating the benefits of long copy since Claude Hopkins made millions writing ads in the early 1900s. Later, David Ogilvy, the grandfather of modern advertising, was a big proponent of long copy.

He understood the need to do two things:

1. Strike an emotional chord that resonates within the deepest, reptilian recesses of the brain.

2. Back it up with enough proof to hurdle the objections of the analytical mind.

There’s abundant A-B testing that proves long copy outsells short copy. But it’s not that simple. Crappy long copy won’t work better than well-written short copy. It’s not the word count, it’s the quality of the message, the concept, the story and the choice of words that really matter. It also depends on the product, the category, the value proposition, the context and many other variables. It’s not a “one size fits all” proposition.

Unfortunately, there’s a trend right now toward one size fits all web design. It’s a move away from anything wdon't settle for plain vanilla copy. Bend Oregon ad agency.ritten to a more visual approach with a lot of boxes, buttons and clipart info-graphics. It’s a template-driven, paint-by-numbers approach that guarantees a big, homogenized playing field of similar-looking sites.

Most companies are trading differentiation and persuasion for the convenience of off-the-shelf execution. And they’re getting lost in the process.
If you’re making a complex, business-to-business pitch, your site should not look, feel or behave like a site selling a simple impulse item. The higher the level of involvement, anxiety or skepticism about your product, the longer the copy should be. In that case, the old-school idea of “the more you tell, the more you sell” still applies.

Let’s say you blow out your knee and you need ACL surgery. Chances are, there are several knee specialists in your market to choose from.

If you’re an orthopedic practice you could load-up generic medical info about the statistical outcomes of ACL surgery. Or you could provide the facts, wrapped with some emotional reassurance. Call me a whimp, but if it were me, I’d want a friendly little pat on the back that says, “It’s going to hurt, but it’s going to be okay. Here’s what you can expect. Here’s the PT you’ll have to do. Here’s what others have said about the experience.”

You can’t do good beside manner in one paragraph. Plus, in that scenario, facts just don’t cut it. The tone of the copy and the overall presentation need to do more than inform, they need to put the patient at ease. For that, you need well-written copy not vanilla flavored content.

Here’s another example… I have a client who has a very involved, do-it-yourself product sold exclusively online. It involves a long selling process and full weekend of yard work after the purchase.

Do customers want the facts about installation and detailed instructions? Of course. But they also need a friendly nudge to actually get the job started. They need reassurance that they won’t get stuck in that Ikea-like hell with a half finished job and lots of left-over parts.

In that case, it’s customers who will be hungry for the long copy. And if you don’t provide it, they may end up paying for a product that’s just collecting dust in the garage.

These days, you can’t just tell them. You also have use every modern marketing devise to demonstrate, illustrate, persuade and prove your case. Long copy still sells, it just has to be served up a little differently.

There are more tools at our disposal than ever before. Use video for presenting meaty customer testimonials — they’re proven to move the needle, especially in B toB applications. Use white papers to present deep, elaborate arguments that prove your value proposition. Use YouTube, Twitter and everything else in your power to deliver the appetizers. But don’t forget the main course.

There HAS to be some meat on that bone, somewhere. You can’t just keep leading people through a site, deeper and deeper and deeper, without ever delivering the whole story. It might only be a small percentage of users, but there ARE people who hungry for that.

For more insight on copywriting, check out this post.

For examples of great copywriting, click here.

2 Non-profit branding (A story of start-up success and failure)

In 2009 I called it “A feel-good brand in a bummed out world.” It was the type of organization that genuinely touched people, and put smiles on little faces. For me, a few minutes at Working Wonders Children’s Museum was a sure cure for a crummy day.

WWLogo - smallOur story of success, and failure, is valuable for anyone who’s starting a new business or running a non-profit organization.

When we started Working Wonders we did a lot things right. It was non-profit branding “by the book” all the way. First, we thoroughly researched the market and determined that there was a gaping need. (We conducted large-sample phone surveys as well as focus groups.)

Once we saw encouraging results from the research, we wrote a mission-focused brand strategy and built a business plan around that. After our strategy was clear, and the business plan written, we came up with a great name, designed a nice logo and put an operational plan in place based on our cohesive brand platform.

non-profit branding case study by BNBranding bend oregon

Print ad campaign

At first, it was just a concept. A “museum without walls.” Initially we raised enough money to build some traveling exhibits and we went to every event in town to introduce kids, and their parents, to our brand of educational play. It caught on. Before the days of Twitter, it went viral.

Our bootstrapping, “museum without walls” strategy achieve the immediate goal: Proof of concept. Parents and kids loved it. In less than three years we raised $400,000 and arrived at that crucial, “go or no-go” point. We had a location and we had enough money to open the doors. Just barely.

The argument TO go: We figured it’d be easier to raise money once people could see a finished children’s museum. We knew we could spend years traveling around, trying to raise more money. (Many Children’s Museums spend a decade doing that.) Or we could get the doors open, and go from there.

The argument to NOT go: We’d be undercapitalized. Cash would be tight, and there was no endowment safety net. We were relying on the on-going generosity of a couple key donors and most of all, corporate sponsors.

We chose to go. Damn the torpedoes!

A team of volunteers scraped up donated materials, did the heavy lifting, and created a children’s museum that was small, but delightful. We launched in less than one-third the time and for one-fifth the cost of most children’s museums. It was a labor of love. A thing of beauty. A non-profit branding success and the biggest accomplishment of my marketing career.

Working Wonders ran successfully for four years. It broke my heart when it had to close because of the economic tidal wave that hit our town in 2009. Despite our best efforts and exceptional marketing, it was not sustainable.

Some people contend it was actually branded too well.

Many customers and community leaders thought we were part of a national chain of some sort. Never mind that our marketing was done with volunteer labor. (mine) Never mind that our advertising was mostly donated space. The general public simply couldn’t conceive of a little, local non-profit doing things so professionally. They figured we had all the money we needed, from some, mysterious, out-of -town source.

But there was no endowment. By the time we identified the perception problem and started addressing it with overt messaging, it was too late.

Our lessons learned from Working Wonders tie-in directly to an online discussion that I’ve been following about branding for non-profit organizations. It’s an informative conversation between branding professionals that everyone can learn from. Profit or not.

One key question that came up:

1.What happens when the public image of a non-profit organization suffers because of commercial branding strategies?

One could argue that’s what happened with Working Wonders. However, there’s more to the story than that.

If not for commercial branding practices the children’s museum never would have opened in the first place. That’s how we were able to touch so many kids. In hindsight, the execution of our marketing was not the issue. We did a great job of reaching the parents of young kids. They came in — over and over again.non-profit branding by BNBranding Brand Insight Blog in Bend Oregon

Unfortunately, in the non-profit world customer satisfaction and brand loyalty doesn’t always translate to financial viability. For children’s museums loyal, repeat customers aren’t enough. They also need loyal, repeat donors.

That’s what we missed… the big dollar benefactors. In a town of only 100,000 people those are hard to find, so we relied heavily on corporate sponsorships, and those dried up overnight when the economy tanked.

As the online discussion points out, nonprofits are often torn between two marketing objectives. But the biggest effort HAS to be directed at board recruitment and fund raising.We woulda, coulda, shoulda spent less time getting kids in the door, and more time on a grass roots effort to raise money and load the board of directors with wealthy supporters.

So if you’re working with a small, local-level non-profit, by all means, do a professional job with your marketing. Non-profit branding is absolutely important! But first and foremost, make sure you’re telling your story of need to the right people. Solidify the base of financial support first, then open your doors.

It’s always a delicate balance to demonstrate that dire need without looking desperate. That’s your challenge as a non-profit marketer. And keep in mind, if the organization does not appear grass-rootsy, potential donors might jump to unfortunate conclusions about your funding sources.

If you’re in a for-profit venture, look closely at the passion and commitment of the people who help build non-profit organizations. At Working Wonders, we were all deeply passionate about the needs of our young kids. That cause is what fueled us.

What’s your “cause?” Every great brand has one, beyond just making money. Is it written down somewhere? Is your operational plan aligned with that? Does anyone really care? These are some of the key strategic questions you need to ask yourself, before you worry about executing your go-to-market plan.

And, of course, you have to balance that thinking with the practical, numbers and sense question of, “where’s the money coming from?”

For more marketing tips and non-profit branding advice, check out THIS post:

 

 

5 marketing strategy vs tactics spock vs kirk

Strategic Thinking vs. Tactical Acting

The single most popular article I’ve ever written focuses on the difference between marketing strategy and marketing tactics. Thinking and planning vs. doing.

Seems there’s a bit of confusion there. For example, I saw a blog recently titled “Top 10 Social Media Strategies.” But the list was purely tactical. Not a strategy to be seen.

So if you’re one of thousands who is still a bit unclear, here’s another way to look at it…

At BNBranding we talk about Insight vs. Execution. Insight being the crucial strategic thinking that has to happen before you execute the tactical plan. Think, then act.

Graham Robertson of Beloved Brands talks about the difference between strategic thinkers and tactical implementers. He writes… “To me, the difference between a strategic thinker and a non-strategic thinker is whether you see questions first or answers first.” Whoever wrote that blog post on social media definitely sees answers first, and social media is it.

Strategic Thinkers ask a lot of “what if” questions before they begin to develop solutions. They think, they reflect, they plan and they stew on things before they act. In fact, many never act at all. They deliver a report and walk away, or they delegate the execution to the tacticians.

Tactical people jump right into answers. They believe that doing something is better than doing nothing at all. They opt for action over thinking, so it often turns into a “ready, fire, aim scenario. They are impulsive doers who often get frustrated by strategic thinkers.

marketing strategy vs tactics spock vs kirkIt’s like Captain Kirk in an old StarTrek episode yelling at Spock; “What we need now, Spock, is a little analysis and lot more action!” Spock was the strategy guy. Captain Kirk was the execution guy.

There are many business owners with A-type personalities who fall into the category of non-strategic implementers. They’re the ones who quickly jump on every new marketing bandwagon that comes along, hoping for a home run without ever taking batting practice. They do a lot, but without clear direction they often do a lot of the wrong things. They’re all over the place.

Strategists, on the other hand, often think themselves to death and never get anywhere.

My firm is often brought in for tactical projects because many clients don’t think they need the strategy help. But in most of those cases, we have to work our way “upstream” to answer those key, strategic questions before we jump into creative execution of a website, ad campaign, social media effort or whatever.

marketing strategy rafting the deschutesTactical implementers never paddle upstream. They just go with the flow.

To be a great marketer you have to wear both hats. “While pure strategy people make great consultants, I wouldn’t want them running my brand, Robertson said. ” They’d keep analyzing things to death, without ever taking action. And while tactical people get stuff done, it might not be the stuff you actually need done. I want someone running my brand who is both strategic and tactical, almost equally so.”

A tall order for most marketing people. In fact, Robertson estimates that only 15 to 25% of all marketing people at legitimately “strategic” in their approach to their jobs. There are far more tactical marketing implementers than there are strategic thinkers.

If you’re building a career in marketing you need to pinpoint where your strengths lie. If you’re more of a manager, organizer and list-making delegator, you’ll probably want to find people for your team who can fill in the strategy gap.

You can’t just suddenly decide to “be strategic.” Being strategic means reading between the lines, delving deeper than just factual data, and trusting your instincts. That takes years of practice and a certain personality type. Don’t try to be something you’re not. Besides, there’s nothing wrong with being a good tactical implementer who gets a lot of stuff done.

There are thousands of successful design firms and small ad agencies that have no strategic thinkers at all. The account executives work with the client and coordinate the list of tactics they’re given. The creative specialists — writers, graphic designers, web programmers, SEO guys, photographers, and social media specialists execute those tactical projects.

That can work well for companies that already have a well-defined brand and a clear-cut marketing strategy. But it doesn’t work if the business owner doesn’t have her story spelled out on paper. In that case, those creative implementers will spin their wheels and go through a lot of false starts before they hit on something that strikes a chord with the client.

Launching a FaceBook contest is not a strategy. It’s a tactic. (And by the way, it’s not an effective tactic if you think it’ll replace other forms of paid advertising.)

Social-Media-Cartoon-Top-640x-940x350“Content Marketing” is not a strategy. It’s a tactic. One of many things on your to-do list that will help you achieve your marketing goals.

Producing and running a Super Bowl commercial is a tactic.

Deciding which product or service to focus on, in that Super Bowl commercial, is strategy.

The most common mistake in marketing strategy is a lack of focus. A strong strategy demands focus, but a most business owners want to be all things to all people in their particular niche.

I was talking with a real estate firm the other day and they had all their “specialties” listed on their site; “First time home buyers. Second time home buyers. Golf homes. Down-sizers. Upscale, low scale, middle of the road scale. Nothing was left out, which made the whole idea of specialization ridiculous.

Time to start swimming upstream!

But strategic thinking is tough. It involves hard decisions and thoughtful contemplation that many business owners simply don’t have time for. The most important strategic “what-if” question you can ask yourself is this: What are you going to hang your hat on? What’s the ONE thing that you can shout from the rooftops? What if it’s this? What if it’s that?

Imagine that you can only advertise your business on billboards along the freeway. You get one idea and one idea only. Five words max. Otherwise, no one whizzing by at 65 will see it. Good luck with that. Distilling your strategy down to that level is a rare talent.

If you make the strategic decision to NOT specialize, your tactical execution will suffer dearly. Generalizations never work as well as specifics, and when you’re “targeting” “men and women age 35 to 64” you’re really talking to no one. In that case, a good advertising team will simply ignore the strategy-that’s-not-really-a-strategy, and hone in on one very specific idea.

Occasionally, some great business strategies come out of this process. Purely by accident. But it’s much more efficient to have your marketing strategy mapped out first and then match the tactics to that.

Think strategically. Act Tactical.

If you need help thinking strategically, or executing any of your marketing tactics, don’t hesitate to call BNBranding. 541-815-0075

Want to read the original post on strategy vs. tactics? Click Here.

In great advertising, God is in the details.

I’ve never heard such a hush fall over a Superbowl party. The commercial titled “So God Made Farmers” disrupted things almost as much as the Superdome power outage.

If you don’t think poetry has a place in business and marketing, think again. Just listen to these words:

“God said, I need somebody strong enough to clear trees and heave bales, yet gentle enough to yean lambs and wean pigs and tend the pink-comb pullets, who will stop his mower for an hour to splint the leg of a meadowlark. So God made a farmer…”

Farmer image for Ram Trucks Superbowl ad

“I need somebody who can shape an ax handle from an ash tree, shoe a horse with hunk of car tire, who can make a harness out hay wire, feed sacks and shoe scraps. Who, during planting time and harvest season will finish his 40-hour week by Tuesday noon and then, paining from tractor back, put in another 72 hours.” So God made the farmer.

The imagery is arresting. The pacing and rapid-fire alliteration, perfect. The details, unquestionably credible.

And that voice… The choice of using Paul Harvey’s original voice-over was a genius move. For 45 years Paul Harvey he was the Walter Cronkite of the radio… everyone knew him and every marketing guy in the country wanted him pitching their products. When his name appeared on the screen, every baby boomer stopped.

Rich Lowry, Editor of the National Review wrote, “Delivered by Harvey, who could make a pitch for laundry detergent sound like a passage from the King James Bible, it packs great rhetorical force.” Listening to it can make someone who never would want to touch cows, especially before dawn, wonder why he didn’t have the good fortune to have to milk them twice a day. In short, it is a memorably compelling performance, and without bells or whistles (of most superbowl spots.)

“The spot stuck out for thoroughly how un-Super Bowl it was. It’s a wonder that CBS didn’t refuse to air it on grounds that it wasn’t appropriate for the occasion. It was simple. It was quiet. It was thoughtful. It was eloquent. It was everything that our celebrity-soaked pop culture, which dominates Super Bowl Sunday almost as much as football does, is not.

It wasn’t just a subtle tug on our heartstrings, but a two-ton pull that produced dramatic results. It’s been viewed over 10 million times in just one week. 10 million voluntary impressions, above and beyond all the eyeballs that were glued to the TV in the 4th quarter of the game last Sunday. And according to Bluefin Labs, which specializes in analytics for social television, the Ram spot was “the most social commercial” of the game, generating 402,000 comments in social media.

If you think the Superbowl is only for outlandishly juvenile spots full of big boobs and talking animals, there’s still hope. AdWeek magazine said it was the #1 spot of the year, with the Budweiser baby Clydesdale coming in at number 2. (Another heartwarming story)

But it was not a new idea. Truck companies have been using this sort of borrowed interest for years, leveraging the themes of hard work, craftsmanship, and salt-of-the-earth American values. But the details in the execution, this time, were far superior.

Paul Harvey actually wrote that riveting monologue back in 1978 for the national FFA convention. The words themselves pack such force, the pictures almost seem like an afterthought.

Kudos to The Richard’s Group for producing it. And to the folks at Ram who approved it. There are a million ways they could have screwed it up.

First, many marketing execs would never approve the use of the word “God” in a commercial, for fear of offending the 70% the population who don’t go to church regularly.

Many companies, in an effort to save money and maximize their media buy, would cut corners when it comes to photography.

Not this time. They didn’t opt for cheap stock images. Instead, the agency commissioned 10 photographers, including William Albert Allard of National Geographic and documentary photographer Kurt Markus, to create the images that form the commercial’s backdrop. Gorgeous.

The only problem is, the connection to the Ram Brand was a bit of a stretch for me. (But then, I’m not a truck driver, nor a farmer.)

Ram is a brand that’s attempting to reinvent itself. No more “Dodge Ram.” Now it’s just Ram, and they’re looking for things — themes and concepts — to affiliate themselves with.

Might as well be God, and country, and hard-working farmers. With great execution, during the biggest game of the year, it’s hard to go wrong with that.

5 naming services from BNBranding advice on naming

Age-old advice on how to name a new business.

Let me guess… you want to hang up your own shingle. Or you have a great idea for a start-up, but you have no idea what to call it. This might be the closest thing you’re going to find to a DIY guide on how to name a new business.

Bend advertising agency blog post on Claude HopkinsEons ago, advertising pioneer Claude Hopkins said “a good name should almost be an advertisement in its own right.” Now, 100 years later, recent studies in behavioral economics and psychology show that many of his theories were dead on.

There’s a proven correlation between a memorable name and market value of the company.

Fortune 500 companies have figured that out. They pay naming firms huge sums to concoct new words that eventually become iconic brands. Those firms employ teams of poets, neologists, writers, comedians, behavioral psychologists and linguistic experts to come up with names like “Acura” for Honda’s luxury car division. “Pentium” for an Intel Processor. “Viagr” for, well, you know what.

Small business owners, start-up entrepreneurs and Marketing Directors of mid-sized firms don’ t have that luxury. Often they try the do-it-yourself approach. (How hard can it be, right?) Or worse yet, they have a contest. They throw the fate of their business into the hands of a faceless crowd that knows nothing about their business model or brand personality.

Naming is one of the toughest creative disciplines you’ll ever find. Alex Frankel, in his book Word Craft, said “naming is like songwriting or Haiku, but it’s even more tightly constrained. You have to evoke shades of meaning in very small words.”

In other words, you really can’t teach the average business owner how to come up with a great business name. It’s even hard to teach a great writer to do naming projects.

Analytical people have a very hard time coming up with business names that have any nuance at all. Their brains simply aren’t wired for the lateral thinking it takes to concoct a name from nothing. So they usually end up borrowed names using terms with very literal, unimaginative meaning that wouldn’t pass muster for old Claude Hopkins, much less a skeptical, modern consumer.

The most common trap is the local, “tell ’em where we’re at” business name… Just borrow a geographic location name, and tack on what you do.

In my town it’s “Central Oregon” blank or “High Desert” anything: Central Auto Repair. High Desert Heating. Central Oregon Dry Cleaning. High Desert Distributing. And almost every brand identity involves mountains.

In San Francisco it’s Golden Gate Heating or Bay Area Brake Service. In Seattle it’s Puget Sound this and Puget Sound that.

Unless there’s absolutely no competition in your local area, there’s no differentiation built in to those names. Might as well be “Acme.”(A lot of companies have names that begin with the letter A, due to the old yellow pages listing criteria. I’m glad that’s no longer relevant)

bend oregon branding firm blog post about naming your new business

How to name a new business – Law firm no-nos.

Another naming trap is the business owner’s last name. If it’s Smith, Jones, Johnson or any other common name, forget about it.

If there are a bunch of owners or partners involved, forget that too. You don’t want to start sounding like the law firm of Ginerra Zifferberg Fritche Whitten Landborg Smith-Locke Stiffleman.

If every partner has his name on the door it’s virtually impossible for the human brain to recall the brand. And it’s just not practical in everyday use… Inevitably, people will start abbreviating names like that, until you end up with alphabet soup. Can you imagine answering the phone at that place. “Hello, GZFWLSLS. How can I help you.”

However, there are times when the last name of the partners can work. Here’s the criteria:

1. The last names themselves must have some relevance, credibility and value in the marketplace. 2. The two names must sound good together. 3. The two names put together don’t add up to more than four syllables. 4. They can be connected into one, memorable name.

Real Estate branding, advertising and marketing services

How to name a new business using your last name.

My firm has a client we named MorrisHayden. Both those names are highly recognizable and trusted in their local real estate industry. Literally weeks after they hung up their sign, they had people calling, saying “yeah, I’ve heard of you guys.”

The Morris and Hayden last names together fit every criteria, but those cases are very rare.

Traditionally, the goal of a good name was to capture the essence of your positioning and deliver a unique selling proposition, so you could establish supremacy in your space just with your name. Precisely what Claude Hopkins had in mind.

Examples: Mr. Clean, A1 Steak Sauce, ZipLoc, Taster’s Choice, Spic & Span.

But literal names are getting harder and harder to come by. The playing field is getting more crowded, forcing us to move away from what the words literally mean to what the words remind you of.

As Seth Godin said, it’s “The structure of the words, the way they sound, the memes they recall… all go into making a great name. Now the goal is to coin a defensible word that can acquire secondary meaning and that you could own for the ages.”

Examples: Apple, Yahoo, Jet Blue, Google, BlackBerry, Travelocity.

Frankel says, “the name must be a vessel capable of carrying a message… whether the vessel has some meaning already poured into it or if it stands ready to be filled with meaning that will support and idea, an identity, a personality.”

Starting out, the name Dyson was an empty vessel. Now it’s forever linked with the idea of revolutionary product design in vacuum cleaners, hand dryers, and who knows what else. The brand message behind that company is very clear. This is not your mother’s vacuum cleaner!

So here’s the deal… The first rule of thumb for how to name a new business… Before you start thinking of names, think about the core brand concept.

If you haven’t already pinned down the underlying premise of your brand — the value proposition, the passion, the values, the promise — it’s going to be very hard to come up with a great name that works on several levels.

So get your story straight first. Hire someone to help you spell out the brand platform. That’s the place to start. Then, whoever’s doing the name will have something more tangible and enlightening to go on.

naming services from BNBranding advice on naming When you nail it, the naming process really is magical. Throw enough images, sounds, thoughts and concepts around, and you come out with that one word that just sticks.

Look what BlackBerry did for Research In Motion. That distinctly low-tech name helped create an entire high-tech category. I’m sure there were plenty of engineers there who didn’t initially agree with the name choice. But those dissenting voices were silenced when BlackBerry became a household word, and their stock options paid off.

 

Click here for more on how to name a new business from the Brand Insight Blog.

If you want a memorable name for your new business, one that can become an iconic brand, give me a call at BNBranding.

4 3 Easy Resolutions For Better Branding.

2014 promises to be a great year for business owners and marketers who are willing to follow a few simple resolutions. I could have written a dozen or so, but that would go against the number one resolution:

• Resolve to be short and sweet.

There’s a proven paradox in marketing communications that says: The less you say, the more they hear. So stop with the generalities and the corporate double speak. Instead, try plain English. Hone in one specific idea and pound it home with powerful mental images and just a few, relevant details.

Behavioral scientists have shown, time and time again, that our brains are hard-wired to discard information. Malcom Gladwell touches on this “unconscious intelligence” in his book “Blink.” And Bill Schley spells it out nicely in his book on micro-scripts.

The human brain has a very active built-in editor, so if it sounds complicated or confusing, we just discard it.

The brain automatically defaults to the simplest, fastest, most understandable messages. So sharpen your pencils, discard all the superfluous nonsense and get the heart of the matter.

Use fewer elements. Simple words. And images that can be “read” at a glance. Because the message with a narrow focus is the message that’s widely received.

Resolve to stop boring people.

It doesn’t take a rocket surgeon to convince you that boring stuff doesn’t sink in. Usually, if you follow resolution Number One, you’ll avoid this problem pretty easily.

The new year is a great time to refresh and rethink your marketing materials. That old Powerpoint deck you’ve been using… toss it out and start from scratch. Those tired stock photos… commission a pro to replace them. Those little pay per click ads you’ve been milking along… gone. That website that hasn’t been updated in years… don’t shed any tears over that.

Sure, you’re creating more work for yourself, or for a qualified marketer, but the process of re-inventing is well worth it. Without even thinking about it you’ll integrate what you’ve learned this past year and improve things dramatically.

Remember, you can only get their attention and hold their interest by using unusual, distinctive, and unpredictable stimuli. Just the opposite of boring stuff.

Resolve to tell stories.

Here’s another way you can avoid boring ’em to death: Tell good stories. Stop reciting data and repeating industry cliches and start using original narratives and colorful metaphors to get your point across.

Stories trigger emotions. Emotions demand attention.

Telling a good story is not that hard. Think about it…You’ve been telling stories your whole life, just probably not in a business context. Everywhere you turn you’re entertained and engaged by stories. Every game you watch is a story. Every YouTube Video and every comic you read has a story. Even email exchanges can become convincing stories.

Storytelling is a wildly undervalued in the corporate world. But if you look at the brands that have been most successful in any given market, they’re all good at telling stories. As are the leaders of those companies.

Think about the role your company plays in stories of your best customers, your key suppliers and even your biggest competitors. Are you the Ruler or the Reformer? The Maverick or the Mentor? The Guardian or the Gambler?

Those archetypes show up in every story ever told.

What’s your story this year, and how are you going to tell it? Do you have a David & Goliath story you could be telling? Or maybe a coming-of-age story. Imagine how well that would play, relative to another, boring Powerpoint presentation.

Resolve to stop throwing money at the latest, greatest deal of the day.

This is for retailers who are constantly barraged by offers to run more and more offers. Stop the madness!

Constant discounting is not going to help build your brand for the long haul, unless your brand happens to be WalMart, Kmart, or Dave’s Discount Deal of the Day Store.

Otherwise, it’s just another way of screaming Sale! Sale! Sale! All the time. It undervalues your product, attracts the wrong kind of customers and sabotages your brand narrative. Is that the story you really want to be telling?

If you’re going to do Groupon-style discounting, look at it this way: It’s a short-term cash flow band aid. Nothing more. If your business is very seasonal it can help get you through the slow months, but it’s not a long-term marketing strategy.

And most business owners are beginning to see that. According to Fast Company Magazine, the daily deal industry is in a “healthy period of reassessment right now.” In other words, there’s a big shake-out going on and even the big guys, Groupon and Living Social, are re-thinking their value propositions.

Most success stories in that business come from retailers who use daily deals as a loss-leader tactic… get them in the door with a discount coupon, then up-sell them into a much larger, more valuable product or service.

But remember, the people who regularly use Groupon are bargain hunters, so that upselling idea may or may not work. And if you’re an ice cream shop, upselling from a scoop to a sundae won’t really move the needle.