Tuesday, January 16, 2018

Never Underestimate the Value of Good Relationships

Tattly was started almost on accident. Design blogger Tina Roth-Eisenberg was looking at the temporary tattoos her daughter received at a birthday party, and was disappointed by the uninspiring fake tattoo designs available. She had many talented artist friends due to an artistic coworking space she'd recently founded. Bringing these folks together to create a new product seemed a natural fit.


Soon after, she had a range of high-quality temporary tattoo designs that she was offering for $5 a piece. In addition to artists from the coworking space, she solicited work from artists who she knew online through her popular design blog. 


Two months after beginning work, Tattly launched with 16 designs. The company has grown quickly, with their designs showing up everywhere from high-end retailers like Macy's to the Tate Museum and the gift bags at the annual White House egg hunt. Over 8,000 retailers now carry Tattly temporary tattoos. Roth-Eisenberg's success is due as much to successfully leveraging her relationships as it is to her innovative ideas. A few of the ways she made her relationships count:


Look for new ways to leverage relationships.


Like most bootstrapped companies, Tattly was running on a very small margin. Roth-Eisenberg provided the first $15,000 in funding from her own pocket. However, she ran into issues when she realized that she was out of cash to actually print the tattoos.


To solve her cash flow problem, Roth-Eisenberg reached out to a contact and asked if they'd like to sponsor the first "bonus" Tattly, a free temporary tattoo that would ship with every sale. Her partner was enthusiastic about the opportunity. With the advance, Roth-Eisenberg was able to pay for the first printing of her tattoos. 


When you are considering a new direction, always remember what your current contacts do besides the business they do with you. You may have opportunities that you never thought of. 


Show support to the ones who support you.


Too many platforms and businesses undervalue the creative talent that helps them find their success. Tattly has formed strong and loyal relationships with artists from all over by providing a healthy commission on every one of the tattoo designs shown. At the time of this writing, the company has paid out over $1 million in royalties to artists. Because of this, Tattly has attracted over 120 talented designers. 


Let your fans be your ambassadors.


When Tattly started, the company did not have a budget for promotion. However, Eisenberg's existing following from her design blog provided a huge boost. Her social media following worked like a built-in PR and marketing engine. Tattly's influence only grew as proud followers shared the eye-catching designs. This was enough to quickly draw the attention of wholesalers who were happy to carry the bright and fun pieces of art. 


Have confidence in your relationships and provide as much value as you seek. Through this and some creative thinking, you can make opportunities not just for your business, but for all of your potential collaborators. 

Wednesday, January 10, 2018

Keeping Employees Engaged During the Dreaded Month of January

Returning to work after the fun and exciting Christmas season can feel like an uphill battle. If you really want to keep your employees happy, healthy, and engaged during the dreaded month of January, there are a number of essential things to keep in mind.


Encourage Your Employees to Spend Time Outside


Part of the reason why January is so terrible for so many people comes down to SAD, or "Seasonal Affective Disorder." It's a very specific type of depression that relates to changes in the seasons and is often brought about by how cold and dreary January has a tendency to be.


The key to combating this is, thankfully, a simple one - encourage your employees to get outdoors as much as possible. Take them out for lunch at that great new restaurant down the block and insist that you all walk there. Get as much natural light into your workplace as possible. Even getting just fifteen minutes of quality sunlight exposure every day can have a big impact on their mood and their productivity.


Along these same lines, consider starting an exercise program at your office in the new year. Not only will this play an important long-term role in keeping your workforce as healthy as possible, but this type of physical activity will also go a long way towards combating SAD head-on.


Encourage Frequent Breaks


It's important to take an active role in the work/life balance of your employees during the Christmas season, particularly when their attention is being pulled in so many different directions at once. Guess what? This idea doesn't stop being any more important just because the calendar now says "January 1."


Look for any opportunity that you can find to give people a bit of a break from the important tasks at hand. People always need to recharge, but this will become especially important during January and the rest of the cold winter months of the year. Make sure that people are getting out of the office and home at a decent hour, too. Once again, you may think that pulling long hours will help productivity in the long run, but all you're doing is compromising the quality of the work that people can provide you.


While it's true that nobody (yourself likely included) likes to return to work after the fun of the Christmas and New Year season, it isn't as bad as you probably think it is. Indeed, so much of keeping employees engaged during January comes down to a matter of perspective - one that you can fully control just by remembering tips and tricks like those outlined above.

Tuesday, December 12, 2017

What Your Customers are Worth (and Why it Matters)



What is the value of a customer? What profit can they bring this week? This year? Over a lifetime? It may seem like a simple concept, but many small businesses have no idea what a regular customer is worth to their business. This creates two problems:



  • Uncertainty about effective marketing. What is the number of new customers you'd like to attract and what is an appropriate budget to do that? Defining a customer value will guide your marketing strategies!

  • Ambivalence regarding customer retention. With a metric for measuring customer values, you can navigate appropriate parameters for retaining them or expanding their business. Research shows that increasing customer retention rates by merely 5% increases profits by 25% to 95%!

Customer Lifetime Value



While there are many complex formulas for calculating a Customer Lifetime Value (CLV), a basic approach is to break calculations into five digestible portions, like this:




  1. Average Order Value (AOV). On the most basic level, AOV is calculated by how much money is spent per customer in a year, divided by how many orders are placed by that customer in that timeframe.

  2. Purchase Frequency (f). Take the number of orders/visits/transactions from the past year and divide it by the number of unique customers you had. The total equals frequency, or how often an average customer purchased from you.

  3. Customer Value (cv). The base value of a customer can be calculated by multiplying the AOV by the purchase frequency (cv = AOV * f). In this instance, the customer value is being calculated for one year.

  4. Average Lifespan/Time (t). A customer's lifespan is how long they actively connect with your business before they move on or go dormant. This can be a complex calculation, but to keep things simple you can either give a broad estimate (an educated guess) or you can calculate an average based on a select number of known customers (adding the length of each of their commitments and dividing by the number of customers). For example: Total Length of Commitment/Number of Individual Customers = Average Customer Lifespan (t).

  5. Customer Lifetime Value (CLV). Now that you've got a general idea of a customer's value for a year and the average customer lifespan, you can use these variables for a lifetime value: Customer value (cv) * Average Lifespan (t) = Customer Lifetime Value (CLV)



While this is a very simplified equation, even a ballpark CLV can give you a more accurate idea of how valuable each client is to your business. What should you look to spend in order to gain a customer? How much should you spend to extend their loyalty? A benchmark CLV will give you a helpful base for marketing, loyalty programs, and sales goals for the upcoming year. Take a look at a more complex approach Starbucks has taken to determine their CLV as a whopping $14,099!1



Your Customers Are Your Future



A customer represents the future of your success and your livelihood, and it will be difficult to thrive if you aren't willing to risk or invest to attract new business. What are your obstacles to expanding your reach or enlarging your advertising? Has the uncertainty of direct mail marketing kept your business from growing? Why not rely on our expertise? We offer sophisticated, simple ways to reach a mass audience for an amount that works within your budget. Need a creative concept or help to carry it to completion? We offer prompt, knowledgeable service for every custom design mailing. Give us a call today!


Tuesday, December 5, 2017

Cash Flow and Marketing: What You Need to Know

Cash flow is important in the lifespan of any business, but one of the key things to understand is that it's about more than just "money in versus money out." It's a valuable look into the bigger picture of what you're doing, and by having a handle on this aspect of your finances, you can take advantage of business opportunities when they arise.



First, you need to understand how every element of your business relates to this cash flow concept, including marketing. To that point, marketing has a very specific relationship with cash flow that you're going to need to be aware of moving forward.



Hone Your Budget



Yes, it's true that marketing costs can often seem unpredictable. However, working hard to hone your marketing budget can make these unexpected situations easier to deal with.



To get started, sit down and think about your upcoming marketing efforts in relation to your other expected cash inflows and outflows. You can't afford to throw just anything at the wall to see what sticks; you have to be more precise than that. Create a realistic marketing budget (that includes room for experimentation if needed) that is proportional to the rest of your expected business expenses and revenue streams.



It's All About That Return



What matters most? Return on investment. For this, focus on the metrics that provide you the context necessary to understand your marketing efforts.



Essentially, stop thinking about marketing ROI as just "how many sales did that last campaign bring in?" and don't be afraid to break things down on a more granular level. Start looking at metrics like your customer acquisition cost. If one of your campaigns was aimed at increasing more traffic to your website, start breaking things down based on metrics like "time spent on site" and "conversion rate."



It's important to know how your marketing collateral is performing in terms of overall sales and revenues, but in terms of your cash flow you need to dive deeper than that. As long as you're able to A) show that your marketing is giving you something in return, and B) you can identify exactly what that something is and when it occurs, you know where the value of every marketing dollar rests.



This, in turn, will give you the context necessary to understand marketing's affect on cash flow and vice versa. When you know that "X action will pay off in Y way after Z amount of time," you suddenly know the impact that every marketing decision you make actually has and when that impact is going to occur. This makes long-term cash flow projections not only easier to make but more accurate as well.


Tuesday, November 28, 2017

Repeat Success is No Small Achievement

Arnel Pineda never imagined that he would be fronting the world-famous rock band, Journey, when he began singing American rock songs with his friends' band as a teenager.



For years his exceptional singing talent had been good enough to belt out songs with club bands doing parties, special events, contests, weddings, and regular appearances around the Philippines, Pineda's home country. However, one evening Pineda was filmed doing his performance with a particular Journey song, "Don't Stop Believin'." The performance, as well as Pineda's accuracy in singing the song so similar to how the original version was sung by the first Journey frontman, Steve Perry, shocked people. It also shocked the guitarist and an original member of Journey, Neil Schon, when he watched the YouTube video as well. One would think that the fairytale story ended at this point as Pineda rocketed to fame as Journey's replacement singer. However, that's not quite how things went.



Upping Your Game



Yes, Pineda could sing, no argument. And he did a darn good version of Journey as a bar band singer. However, the band made it clear to Pineda that if he were to be considered a serious contender for the real band, he would have to up his game. That meant singing all the original Journey songs to perfection.



It's easy for the typical person to think this challenge might be doable. That's because no one sees what Pineda had to go through to match every tone and every inflection that Steve Perry had done to make Journey's songs famous in the first place. Unlike Perry, who could craft a new song with any version of voice he liked, Pineda had to duplicate the original to every single detail. It was a grueling process with Schon and company catching every mistake and pushing Pineda to reach the zenith of his ability. There were plenty of times Pineda wanted to quit as well, questioning his own talent. Fortunately, the Filipino singer realized his full potential and succeeded.



Success Can Be Hard to Repeat



This story is a classic case showing how hard it is to achieve success a second time once a standard or great performance has been achieved in the first place. In business, a one-time success is just that, a fortunate blip. When a business team can repeat the performance and do even better consistently, that's a huge achievement. It proves that the success was not just good luck or a brief opportunity when things just fell into place.



Repeat success is the primary goal every business team strives to achieve. And it is extremely hard. Conditions change, markets fluctuate, customers move to new interests, team members leave and get replaced. All of these factors and more change the mix in how successful a team can be. To overcome these changes and repeat the success is really the higher level of performance that pays big with rewards when it can be achieved.



Not Just for Entertainment



Think Pineda's story is just something that happens in the entertainment world? Look at Apple after Steve Jobs passed away. The Apple team lost a core resource in Jobs and still had to find a way to keep Apple growing and succeeding even more than what Jobs had achieved with the company. CEO Tim Cook and company did exactly that, but it was a huge challenge to fill Jobs' shoes year after year since his passing. In many ways, Cook had to perform just as hard a Pineda to repeat a success and make it better. So the next time you see a repeat success story, don't dismiss it so quickly. It's frequently much harder to succeed a second time versus the first.


Tuesday, November 7, 2017

Bullies, Burgers, and Buzz

What do Whopper Juniors and bullying have in common these days? They are both being talked about. A LOT.




Recently, Burger King released a three-minute video in honor of National Bullying Prevention month. The viral video revealed that 95 percent of customers were willing to report their smashed, "bullied" Whopper Jr., but only 12 percent stood up for a high school student being harassed in the same store. The "No Junior Deserves to be Bullied" spot received national attention, generating countless online shares and loads of free publicity. One blogger said this:





"Yes, this is basically a three-minute Burger King ad. And, yes, it's not subtle. But this PSA is better than it has a right to be, and is certainly more than you'd expect from a restaurant that doesn't really have an ethical obligation beyond selling burgers . . . this weirdly good anti-bullying PSA will wreck your day."





Viral: Why Certain Messages Multiply



Have you ever wondered why some YouTube videos go viral? Or why some products receive more word-of-mouth and top-of-mind awareness? Whether we're in marketing, politics, or public health, it's helpful to consider why certain products or ideas catch fire. Wharton marketing professor Jonah Berger, author of Contagious: Why Things Catch On, devoted nearly a decade to researching this very question. We all know that word-of-mouth marketing is the most dynamic form of influence, but why do some things seem to create more buzz? Berger gives several ideas for getting your ideas to stick and to SPREAD.





  1. Social Currency. What we talk about influences how other people see us - whether we look clever, silly, or thoughtful. How can our product or idea be a fun or interesting thing for someone to share with others? Many who shared the Burger King ad found it to be a compelling social commentary, a fun (but thoughtful) perspective worthy of passing along.


  2. Triggers. People often talk about whatever comes to mind. Just like a Subway ad might be effective in a subway station, a trigger is an association that prompts people to think about related things. Burger King wisely released this PSA during Bullying Prevention month, because what is on the top of the mind is often at the tip of the tongue. Burgers and bullies were on our lips in October.


  3. Emotion. How can we craft messages and ideas that make people feel something? Our relational bent prompts us to share things that are surprising, inspiring, funny, beautiful, or motivating. Burger King tapped into a heartfelt issue, knowing that when we care, we are more likely to share!


  4. Stories Sell. Why are Super Bowl commercials so fun? Because nothing tops a great story, and these ads tell them well. Top marketers know that one way to replicate a message is to embed it in a "Trojan Horse," or a noteworthy narrative people are bound to repeat. In this instance, the Whopper Junior had a supporting role in the greater story of bullying and social justice. But Contagious reminds us the product or idea has to be essential to the plotline: "We need to make our message so integral to the narrative that people can't tell the story without it."




Getting Your Message to Spread and Stick



Looking for ways to get your message to spread and your brand to stick? From large-scale publicity to customer care and referral options, we have opportunities in all sizes. We'll help you package your stories, triggers, and ideas with several time-tested tools and tricks. Give us a call to talk options!

Friday, November 3, 2017

Ways to Protect Your Brand in the Real-Time Information Age

A brand is more than just a company logo, and it's bigger than any one particular product or service. Instead, it's the feeling that people get when they think about your company. It's what goes into the instinct they have regarding whether or not to make a purchase.



A brand is also massively important in terms of how successful your marketing efforts will be in the long-term. The impression someone has of your brand is something that occurs almost immediately. 48% of consumers say that they are more likely to become loyal to a brand if their first experience is a positive one, regardless of whether or not that experience actually took the form of a purchase.



That means your brand must be protected at all costs, particularly in the real-time information age that we're now living in. People are being marketed to from nearly every angle. If you don't work hard to strengthen and hone your brand, you run the risk of being lost in the shuffle. Hope is not lost, however, as there are a few key things you can do to protect your brand as much as you can.



Consistency is Key



One of the most important things you can do to protect your brand is focus on something that real-time information doesn't provide: consistency. According to one study, 90% of consumers expect that their experience with a brand will be similar across all channels - whether you're talking about print, in-person interactions, or digital content.



Don't Wait For Your Audience to Come to You



Another study estimates that, on average, you really need about five to seven positive brand impressions with a consumer before they start to remember your brand in a similar light. This is good, but you need to remember that in a real-time information age, you don't necessarily have the time to wait for a consumer to initiate those impressions.



Also, consider the fact that brands that are consistently presented are three to four times more likely to experience brand visibility. YOU must be reaching out to your audience by way of consistent, enjoyable and helpful experiences whenever and wherever you can. Increase the frequency of the print marketing collateral that you're putting out there and focus on being helpful, educational, and informative.



The Unmistakable Benefits



Give people as many opportunities to experience your brand as you possibly can and your entire identity will benefit as a result. If brand visibility is something of a numbers game, you need to play those numbers as well as you possibly can. Don't wait for someone else to hopefully do it for you.



Successful branding brings with it a wide range of different benefits, from increased customer loyalty to an improved image, to a relatable identity and beyond. But in an age where information is everywhere, your brand is something that you also need to work hard to proactively protect. If you don't, you run the risk of watching those important relationships with your audience begin to deteriorate.