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Category: Marketing

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What a great business we’re in!

Over the past few years, I’ve made my own business a ‘lifestyle’ business. I have no staff (whereas previously I’ve had up to five), work a maximum of three days and take at least four holidays abroad every year. And I don’t ‘phone home’ to check the answerphone every few hours!

All this has been possible by effective marketing. Selling to the ‘right’ customers at the ‘right’ PRICE. And giving them ‘best value’.

So just the other day I thought about booking my first holiday for next year. I checked online to see what sort of price I would have to pay. Then I went into a high street travel agent to see if they could perhaps do a better deal.

The education in ‘pricing’ was invaluable.

There are at least four lessons that easily translate to our business of carpet cleaning.

Here they are:

The lady I spoke to immediately informed me that she was not a sales advisor but in fact was ‘cabin crew’. She was pregnant and so the travel agent was simply making use of her as cheap labour in the shop. After taking note of all my requirements, a total price came up on the computer screen. The very first thing that she did was to immediately say that she could discount the price as it seemed a bit high. As it happens the price was in the region of another quote I had.

LESSON 1. Make sure that everyone involved in selling has some sort of sales training and understands the psychology of the buyer. Otherwise they will react to price exactly as the cabin crew lady did here. And what impression did it give? That I was being overcharged to begin with!

LESSON 2. Don’t capitulate on price. People are buying value NOT price. People don’t buy a Mercedes just to get from A to B. Yet, Mercedes dealers don’t discount to compete with Vauxhall or Ford. There’s always more involved that gives them greater value. I always recommend using a computer program to come up with the costs so that it’s very hard to change the price. Many times my computer has produced a price that I thought the customer would never pay, only to be surprised. Customers can sense if we’re uneasy about our price and will then try to negotiate. I’ve repeatedly found that customers take the view that “the laptop has spoken” when it comes to price and simply accept it as “the price”. Which of course, it is. And of course, if we provide a high quality service target Mercedes customers NOT Ford customers.

LESSON 3. If they want to change the price…you change the package. The price I was originally quoted for was All Inclusive and for a Water Villa over the sea. (Can you guess where I’m going yet?). So…could I drop down to Half Board or have a plain old bungalow by the waters edge instead of over water? If your customers want to change the price, get them to ‘empty the room of all furniture’ for example.

LESSON 4. Don’t discount…add value. Could she have added something to my holiday that costs them very little but has high perceived value to me? For example, how about pre-booked seats on the plane or late check out or something else that costs them very little?

Of course, if your clients are only concerned about price…it may be better to sack them and get clients that will pay more for a quality service. She asked me how much I was expecting to pay. I gave an artificially low price...about a thousand pounds less! (Don’t all buyers do this?) She then tried her best to see how low she could get the price. Instead she should have just ‘sacked’ me.

We mustn't be timid in explaining our prices to prospects. We must be able to confidently justify our charges compared to other cleaners. And do this in a way that our prospects perceive as ‘best value’ for them.

 

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Need a new van? How about some new equipment? With the banks unhelpful at the moment, have you thought about asking your customers to help out? Now, you’re probably thinking…why on earth would total strangers lend me money when they don’t know me?

Well, that’s an interesting question that I put to the test a while ago. I asked my customers for money and they simply sent it. Let me explain.

I had a large tax bill coming up in a month or two. I had the cash available in  the bank but I didn't want to use it for a particular reason that I won't mention here.

So I told this story to my customers and offered them ‘Cleaning Bonds’ at a preferential rate if they were going to have their carpets cleaned later this year. And they sent me hundreds of pounds! They included notes with their cheques…“Hope this helps”…and “Sorry to hear that you are in trouble.” This is the power of ‘Relationship Marketing.’

Some years ago I heard one of the bosses at Tesco’s announce about relationship marketing… “But our customers don’t want a relationship with us!” I beg to differ. I think they do. Not in the “lets have them round to dinner” sort of relationship. But in the matter of trust.

This is particularly important in our business. After all, the checkout girls at Tesco are not in their customers’ bedrooms like we are! Our customers have to have a relationship of trust with us.

So how do we build it?

First of all, it must be genuine. We must genuinely put their interests ahead of our own. Marketer Jay Abraham calls this a Strategy of Pre-Eminence. We would NEVER do anything to them that we wouldn’t want done to ourselves. Including sub-standard work, including ripping them off in any way. We must be their ‘trusted adviser’ in the matter of cleaning their carpets and upholstery.

How does this come about?  Send ‘Thank You’ cards and letters after each job for example. Many years ago when I bought my first mobile phone (you know, the sort that was the size of a small suitcase), as soon as I had signed the contract, the salesman said “Thank you very much” I was staggered. In fact I can still recall how I felt to this day.

Now, why was this so amazing?

Simply this: No-one had ever thanked me for giving them business before. Yet just that simple act had such a profound effect on me that I can still remember it! And I still feel good toward him to this day. This is ‘relationship marketing’. It’s not a sales gimmick but is built on genuine care.

And how about special client offers not available to anyone else? Or regular communication with a monthly newsletter. Not filled with ‘image building puffery’ but genuine information to help your customers that will cause them to bond to you.

All of this builds a genuine relationship with your customers…and who knows when you might need a short-term loan?

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In an earlier post I related my experience with a carpet cleaner who just wanted more people to phone him. But you may recall that he was giving prospects no good reason to call him rather than his competitors. In other words, he had no ‘Unique Selling Proposition’ as it’s called. Or as I sometimes prefer to call it a ‘Unique Buying Advantage.’

It’s very difficult for carpet cleaners to have an objective look at their own businesses and see what the customer sees. So I thought it would be helpful to consider myself as the prospect for a change.

Here’s my recent experience trying to find an optician for an eye test:

Now my perception of an eye test is very similar to my prospective clients’ view of carpet cleaning. ie: it’s all the same. So I wondered…why should I choose one optician over another?

I thought the best thing to do is to ask them. So I visited three of my local opticians, asked about their charges and then the all-important question….”Why should I come to you rather than a competitor?

The answers I received were nothing short of amazing!. Here’s the gist of them. While reading this, think of what’s going through the mind of someone calling YOU to ask about your service. Here are the three questions I asked each of them. YOUR prospects are also thinking these questions even if they don’t ask them.

Are all eye tests (carpet cleaners) the same?

Why should I use you?

Do you do anything that others don’t do?

 

Optician 1. Cost £27.50. 

Why should I use you… “because we’re great” (yes that really was their answer!). They went on to explain that other optician’s eye tests lasted “five minutes” and that “we are more thorough blah blah blah”

Optician 2. £20

In answer to the question: Why should I use you…I was told “I don’t know what the opticians do” and unbelievably…”some of our opticians are better and more thorough”

The young lady then asked me what glasses I might be interested in before even knowing if I needed them. Prescription BFORE the diagnosis!  I was finally given the helpful advice that I'm sure would have her employer cringing... “It’s your choice where you go”. Hardly a Selling Proposition let alone 'Unique'.

Optician 3. Cost £25 plus £20 for a Retinal Scan

Why should I choose you?…”We’re like independent grocer compared to Tesco”  (I didn’t think it appropriate to tell her I happen to like Tesco but still NO compelling reason to choose her). But at last…a difference…“we charge £20 for a retinal scan but it’s larger than our competitors so you can see more detail”. She handed me a leaflet about it from the reception desk but then realised it was out of date. So she continued…“Our test is more extensive…we spend longer on the eye test...”

Now which of these would you have chosen? Maybe the lowest price? After all, they’re all the SAME aren’t they? Or should I choose the one who gave a retinal scan that others didn’t? But is it really important? Remember a confused mind always says NO! And that’s what I’ve said up till today…“NO!”. I’ve done nothing about my eye test even though I’m what a salesman would call a “hot prospect.” No-one can give me a good reason to choose them. And remember…fear of making a mistake is also very powerful at putting off a decision.

Lesson for us: Make sure you are able to give prospects a compelling reason to discriminate in your favour. Most of the opticians simply said that they are “more thorough” but weren’t able to ‘dimensionalize’ this. There must be a specific reason to choose YOU, not just “good service” or “we’re more thorough.” It must also be different from all your competitors.

So list everything you do that’s different to your competitors. Make sure it’s important to the marketplace (in other words customers really do want it). And then put it into your sales pitch, on your web-site, business card and everything that your prospective customer sees.

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So here are the three reasons why every carpet cleaner should be sending a monthly newsletter to their customers:

1: Newsletters help you retain your clients.

2: Newsletters help with referrals.

3: Newsletters help build your brand.

Now, what should we put in the newsletter that’s going to achieve these goals?

The first thing we want to do is to actually get our newsletter read or at least welcomed by our customers.

That means write it with your customers in mind. In other words, write what they will enjoy reading, not what you want to write. The best content I’ve found over the past 15 years is a balance of content that informs, educates, and entertains! If your customers feel entertained and enjoy reading your newsletter, they'll look forward to it, issue after issue. And what happens if your customers read your newsletter issue after issue? You'll build credibility, increase your reputation as an expert in your industry and increase brand awareness.

Your customers will remember you, will do business with you again, and will refer others to you as well. Newsletters should be written in a conversational tone and you should avoid the use of technical jargon. Customers have no interest in psi or water temperature at the cleaning wand. In addition, make your newsletter fun to read by including trivia, maybe some humour (being careful not to include anything offensive), and general interest articles about health, home, and life issues and some leadership or management tips.

So what specifically can you put in your newsletter? Here are some of the things I’ve used:

Information About Your Other Services

Many of your customers will not know that as well as carpet cleaning you also clean upholstery…or hard floors…or curtains. How many times have you heard a client say “I didn't know you did that" These are all missed opportunities to increase your revenue without the heavy cost of acquiring a new customer.

Education About What's New In The Industry

Have you recently upgraded to a truck-mount that can mean a quicker job or faster drying times? Have you bought turbo-dryers that can leave their carpets dryer? Or a new, better stain remover? Don’t forget, your customers are not interested in your machinery or chemicals…only what these new things can do for THEM. Newsletters are a great way to educate customers and also position you as the expert who is abreast of industry innovations. People like to do business with a ‘leader in the field’.

General Interest Articles About Health, Home and Life Issues

The majority of my customers are women who are interested in health and beauty matters. I often include humorous pet stories that will appeal to them and have been very surprised that these are the type of articles most passed along to friends. Other topics include gardening, cooking, trivia and things to do with the home.

Carpet Cleaning Matters?

A little. Occasionally I’ve put articles about cleaning that will directly benefit my customers and position me as the expert. Like “Should You Replace Your Carpets With Hard Floors”, “How to Remove a Heavy Spillage From Your Carpet” or What Should You Look For When Replacing Your Vacuum Cleaner”. But these are few and far between.

Don’t forget…it's not about you. Customers are only interested in ‘what’s in it for them’. Inform, educate and entertain them, and they will look forward to your newsletter.

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If I had to use only one marketing strategy in my business, which one would I choose?

Without doubt it would be to send a monthly newsletter to my client base. Why? Because newsletters, pound for pound, dollar for dollar are one of the most effective marketing tools available.

Let's just consider the reasons why every carpet cleaner should be sending a monthly newsletter to their customers.

Reason 1: Newsletters help you retain your clients.

How often have you heard people say that they've had their carpets cleaned before and were "very satisfied" but just can't remember the name of the person or company they used. This is a tragedy. One of the most costly expenses in a business is the cost of getting a new customer. And now when it's time for the carpets to be cleaned again, the customer can't remember who cleaned them! Newsletters help keep you ;top-of-mind' with customers. When your newsletter arrives they are immediately reminded to think about whether their carpets need cleaning again. Newsletters also get in 'under the radar'. They are not perceived as a sales pitch and can therefore be used to educate and inform about other services without the usual resistance to a sales message.

Reason 2: Newsletters help with referrals.

If your newsletter is interesting and of value to your customers, they may pass it along to friends or relatives. In fact, just seeing your newsletter can prompt friends to ask what it's all about, perhaps leading to a conversation about the need for cleaning carpets. And of course, your name will be on hand to pass on.

Reason 3: Newsletter help build your brand. 

Brand-building is normally too expensive for a small business to use as a standalone strategy. This is because the usual way for a business to build a brand is by means of image type advertising which is very costly and the results uncertain. However, sending a regular newsletter automatically builds your brand name. I like to think of my ˜brand" as the likelihood of my clients using me again and of referring me to others. I know that technically a brand is the sum total of every experience with my business and how my clients and prospects perceive it. Or something like that! Branding of course is all in their mind. Therefore a regular newsletter has the potential to affect how clients and prospects think about my business. And that's very powerful!

Here's an example of the cost-effectiveness of sending a regular newsletter:

A lady who had not used our services for a few years recently responded to an offer in my newsletter. I estimate that she has received about 75 newsletters in that time. If the cost of sending a newsletter including printing, paper, envelope and stamp is say 50p (here in the UK) that means I've spend less than £40 to re-gain her. (Work out YOUR cost of acquiring a customer and you'll be very surprised!). The PROFIT on the job will be in excess of £200. That's a return on investment of over 5 to 1. Even sending a newsletter for many years without response can pay off eventually. Most of our clients respond long before seven years, making it even more profitable.

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Should a small carpet cleaner focus on "building a brand"? Surely you say, well that's OK for the likes of Coca-Cola and Nike, but I just run a small business! And don't make the mistake of fondly imagining that all you need to have a brand is a new slogan or a redesigned website or brochure.

But what exactly is a brand? Too often even marketing professionals don't have an answer, and too many have their 'own' answer.

But it really all boils down to this: A brand is a collection of perceptions in the mind of the consumer. I like to think of branding as the likelihood of someone using our service again. (or for the very first time). Therefore it's something that is intangible!

This definition makes it clear how to build a brand. A brand is built not only through effective communications or appealing logos. A brand is built through the total experience that it offers.

According to Al Ries in the book The 22 Immutable Laws of Branding, the power of a brand lies in its ability to influence purchasing behaviour. But a brand name on a package is not the same as a brand name in the mind of the consumer.

A few years ago on a Greek island I wanted to buy a cola drink. Now I don't particularly like cheap cola. All the labels were in a language I could not understand. But one had the clearly defined logo and corporate identity of Coca-Cola. And so I bought it. Now it wasn't just that the logo was the brand. It was the fact that it would deliver a promise, that I knew it would be the same as I could buy back home. In other words it would deliver the quality I wanted. The brand was all in my mind!

That's why it's so important for us to focus on giving our customer what she wants and to have systems in our business to make sure that happens.

Here's an example:

I've just come back from a two week holiday in Cuba. I stayed at the Melia Cayo Guillermo on the north of the island. I've never stayed at a Melia hotel before but what I experienced there made sure that it won't be the last.

From a welcome drink on arrival, very quick check-in time to problems being sorted quickly it was evident that we were going to have a good time. All the staff including the gardeners who kept the place immaculate said hello and were very friendly. When we left I saw something I have never seen before. Virtually the entire staff including the manger came to wave us goodbye. The manager even remembered the names of repeat guests. I found out over the course of the two weeks that several of the guests had been here multiple times. The staff genuinely cared about the satisfaction of their guests.

So using the test of ˜the likelihood of using you again" the Melia in my mind has created a strong brand. I would definitely stay there again. I have never felt so well-cared for on holiday. And I am more likely to try other Melia hotels.

Now how can we transfer this to our carpet cleaning business?

According to Al Ries, a brand is a singular idea or concept that you own in the mind of the prospect. In other words we must be unique in the customers mind. The worst thing that we can be is a commodity, interchangeable with any other carpet cleaner. So we need to give the perception that there is no service on the market like ours.

We also cannot appeal to everybody. We cannot be "all things to all people" We can't be the lowest priced and the highest quality service. So we need to choose our target customer, price accordingly and exclude everybody else.

And we need to be in the "relationship" business. Genuinely care about our clients. Give them exactly what they want. Regularly keep in touch with them through a newsletter and reminder cards. Thank them when they do business with us or refer us.

And most importantly, put all of this into a system so our clients get the same experience every time.

Ideally we'd like to get to the point with our business where people instead of asking for an expensive Swiss watch, ask for a Rolex.

That's why it's so important for us to focus on giving our customer what she wants and to have systems in our business to make sure that happens.

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If you were to seek advice on improving your business, you would likely be told that you need to “build your brand” or create “brand awareness”

Typically this means spending money on a fancy logo and generally telling the marketplace what a great business you are. If you do this, you are following the lead set by many, many corporate type companies.

But is this the best way for you as a small carpet cleaner to get more sales?

I was intrigued recently while watching Manchester United play Arsenal at football (soccer) to see that the travel firm Thomas Cook have changed their logo. It was on one of the electronic billboards.

A bit of research on the internet revealed more:

  • “This week the Thomas Cook Group unveiled the next stage in its journey back from the edge of a financial abyss: a new corporate identity known as the "Sunny Heart"
  • According to the firm, "The new, unified brand captures the essence of Thomas Cook: how it delivers inspiring personal journeys as the trusted pioneer in global travel." (The Independent)
  • “Thomas Cook says that the new visual identity and branding looks to reflect the ‘warmth and approachability’, ‘trust and personalisation’ and ‘message of High Tech, High Touch’ of the brand.”
  • “Tour operator Thomas Cook has ditched the globe logo it first used in 1880, replacing it with a 'Sunny Heart', as the tour operator continues its recovery from near collapse. The 172-year-old firm unveiled the design alongside a new slogan - 'Let's Go' - spelling the end for its famous motto 'Don't just book it, Thomas Cook it.' The rebranding is part of a root-and-branch overhaul by new boss Harriet Green, who was recruited last year to save the household name from collapse, after it was bailed out by its banks.” (Daily Mail)

You’ll notice that in response to near collapse, they have decided that the answer is…a new logo!

But surely the most important question of all is..will this lead to SALES?

Let’s ask one of its valued customers…ME!

I’ve travelled with Thomas Cook twice in the last 18 months. What has been my experience? On my recent trip to Mexico the transfer took two and a half hours arriving at my hotel at the equivalent of two in the morning. The problem? The advertised transfer was one hour. The previous year with a rival firm was 35 minutes. Apparently they had crammed in more drop-off points before ours!

On a previous holiday to Egypt, they cancelled an entire plane leaving passengers bound for Manchester to travel via Gatwick. An add-on of several hours. Incredibly they didn’t let the Manchester bound passengers know until they got to the airport in Egypt. It also meant that although I had pre-booked a window seat, I ended up sitting in the centre row.

I decided there and then that I would NOT travel with this company again unless I had very little choice.

Would the money spent on “re-branding” not be better spent on improving the experience for the customer? Frankly I don’t care about their logo or their “trust and personalisation” or their “warmth and approachability.” But I do care about getting what I’ve paid for. A re-brand (“new pretty logo”) does not fool me!

So what brand strategy should you follow?

  • Forget “brand awareness” You don’t know whether it’s successful or not as it can’t be measured.
  • Forget advertising to simply remind people of your existence. Killer advertising is simply salesmanship multiplied according to copywriter Gary Halbert
  • A good ad will work the first time. They don’t need to see it 7, 15 or 20 times
  • Don’t be fooled that a brand is the most important thing. The people who give you money are!
  • Forget ‘clever’ type advertising with just your ‘image’ displayed. If your salesman acted strange or did a silly dance and then mentioned the name of your company at the end you wouldn’t want it. Instead you want them to find out what the persons problem is, what their objections are and present your product as the best solution. That’s salesmanship!

I’ll give the last word to Claude Hopkins who wrote about silly logo’s and image type advertising this way: “Instead of sales, they seek applause”

I say…Let them have the applause - my bank doesn’t accept it!

 

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It’ was 4:30pm on Friday 9th January 2009 and I’d had several phone calls to book in work. Normally January and February are expected to be quiet months in the carpet cleaning industry. Yet, we were busier than ever…even more so than December.

What had caused these homeowners to phone my office on this day? Quite simply…a deadline!

I had sent out a number of reminder cards to existing clients telling them that if they want to take me up on an offer they must respond by Friday 9th January. And they did. In droves.

It’s amazing how a deadline focuses the mind of potential clients. Why a flurry of calls right at the end? I imagine my prospects mentally going through a fear of loss. That if they didn't phone by that day they would miss out. They simply cant just ‘put it off’.

I clearly remember about 11 years ago agonising over a buying decision. I had received a very good offer from a company saving me money on a particular product…but only if I responded by a certain date. And today was the date. I had to make a decision. I wanted the product but it was a lot of money. I was going on holiday the next day. If I wanted to buy I had to make the decision NOW. And I did. I bought. This was one of my first experiences with the power of a deadline.

It’s been said that the deadline is one of the best things ever invented. It forces people to make a decision. One they probably would have put off and put off until they forgot about it. It seems to be human nature to procrastinate. Now we never send out an offer without one. Often we will have prospects phoning us AFTER the deadline pleading with us to do business with them because they have just come back off holiday and found our postcard, flyer or letter. And of course that changes our positioning. All of a sudden they are just relieved that we will even consider doing business with them.

But you must be believed that the deadline is genuine. So make it genuine. After all, if you offer a discount (or as I prefer, to add value rather than discount) you must have a good reason for doing it. It could be that you are making an offer (perhaps 3 rooms cleaned for the price of 2) in a certain area until a certain date. Or you could be limiting the number of jobs you will do with the offer. Whatever the reason for the offer being limited in some way, it must be believed. It then stands a good chance of being acted upon.

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I’ve just returned from a local business exhibition with over one hundred small businesses exhibiting. It’s a great place to learn.

Marketing experts like Dan Kennedy and Jay Abraham speak about the need to look at businesses outside of your own and learn from what they do well. I must admit that there didn’t seem to be much to learn from what they did well but plenty from what they did badly. These lessons are so much easier to see in a different industry as we are usually too close to our own.

Lesson 1. The need to qualify. Virtually everyone who stopped me failed to find out if I was a qualified prospect. (A qualified prospect is someone who: 1. must be able to buy, 2. must be able to enjoy a benefit, and 3. must be the decision maker)

Here’s an example: A very pleasant man on the Freesat stand proceeded to give me a long spiel about how I needed to have Freesat in my home as it would save me money. “I may not need to subscribe to Sky, particularly if I don’t watch the movies or the football” was his pitch. After about one minute I stopped him and told him that I’ve already got a Freesat receiver (which actually wasn’t true, but it was the only was to stop him). He’d fallen in love so much with his product that he forgotten to fall in love with his clients. Freesat is a High Definition service and I have only just bought a new plasma tv so I simply wont be using Freesat for the foreseeable future. He simply wasted his time with me when he could have been speaking to someone interested (wanting to enjoy a benefit) and ready to buy.

Lesson for us: Have a system in place to make sure prospects are qualified and filter out those who don’t. Many people have dirty carpets…but they don’t care! Or they don’t want to pay premium prices to have them cleaned.

 

Lesson 2. Need for a USP (Unique Selling Proposition). A business owner of a very high-end hi-fi stand caught me looking at his gear. That was enough for him to launch into his pitch. Again he failed to qualify. He simply assumed that I was interested. I bluntly told him that I wasn’t his target market or ideal client as I would never spend that amount of money on hi-fi. He did then explain that they also sold lower-end televisions. So I asked the all-important question: “Why should I do business with you versus your competitors?” His answer was the usual “we give better service; we look after you blah blah blah”.

By coincidence I have just bought a large screen LCD TV which was faulty. I bought it off the internet through Amazon. When I phoned to tell them that it was faulty, it was absolutely no problem at all. They simply asked “would you like it changed or would you like a refund?” No arguments or fuss. I changed it for a plasma TV. Now that’s great service. To just say that you give “better service” is not a compelling reason for a prospect to choose you.

Lesson for us: Make sure we are able to give prospects a compelling reason to discriminate in our favour. This must be specific reasons not just “good service” It must also be different from all our competitors. In our industry we can’t all “give the most thorough cleaning or it’s free” or it’s not unique now is it?

Lesson 3. The need to look the part. A firm of painters and decorators caught my eye because their target market was clearly high-end work. Everything on the stand indicated that they do a quality job except the young man who was sitting there. I can only describe him as unkempt and scruffily dressed with long hair and jeans. Not the sort of person I would want in my house. This is what’s known as an anti-USP because it works against the USP.

Lesson for us: If we are targeting high-end clients make sure that we look and act like they want us to. This includes having our vans clean and tidy, wearing a uniform and saying ‘please’ and ‘thank you’. Make sure that our whole business is congruent with our message.