Valitics Blog

Ok, so I have been waiting to be inspired with a new blog topic and I finally have a few minutes to share my most recent inspiration with you.

I have been following Mark Buckshon's blog on marketing ideas for the construction industry. Most of the time he is right on. However, there was a little dissonance on a recent post. Let me explain: Like a lot of other industries the construction trades rely heavily on referral and word-of-mouth marketing, and there is an ongoing debate about the effectiveness of advertising (which unfortunately is often confused with word marketing).

For a little background read Mark's post on "The referrals are drying up -- What to do?" I agree with the general sentiment that businesses need to be careful with how they spend their money, and like him I agree that you don't need to wait for a bad economy to get serious about tracking the efficiency of your marketing activities. Here's the rub though: "The problem right now is that while advertising and other marketing services will still work to bring in new business, they will be much less effective than in good times, and the quality of leads you receive will be significantly poorer than the type of leads to which you are accustomed."

I suppose there are two schools of thought on this, but let's reason this out a little bit. Think about the opportunity this down-turn presents. Most people (including most of your competitors) are in cost-control mode. They are laying off employees, reigning in their advertising spend, cancelling their leads group memberships, and in other ways "decreasing costs." Customers that they have had cornered in the good times will be frustrated that your competitors' quality of service is now going down (they respond less quickly, they cut corners to cut costs, etc.). Those folks may not have been willing to talk to you this time last year, but now they need someone who can get the job done, someone who meets their needs even when the economy is tanking, and someone who plans to be in business this time next year.

Also, think about the effect of each marketing dollar. This time last year you were competing for share of voice, but since your competition is cancelling their advertising and marketing activities at the same spending price you get a larger share of voice. If you increase your spending you can get exponential growth of share of voice.  Plus, you should have some negotiating power with the really hungry media providers.

Finally, I recognize that "most people" also includes most of your customers, which is what I think Mark was really getting at. Sure, they will be more apprehensive to spend -- guaranteed. But, are they really going to be poorer leads?  If so, your targeting efforts change, you seek out the companies that are willing to continue growing and you do business with them.

Oh yeah, and the other content Mark shares regarding measurement and "What should you do then?" is on point (IMHO). Obviously, companies who consistently measure their business results will have a much better gauge on whether they are doing better or worse -- but, that is no excuse for continuing to shoot from the hip. So, start measuring, keep doing, and gobble up some market share while your competitors lick their wounds.

When it comes to customer satisfaction and customer relations, online tools can help businesses quickly and easily communicate with their customers. Contact forms and email links can give your customers a variety of easy ways to get in touch with you. FAQs and forums can enable your customers to answer common questions and solve common problems on their own. Online chat is another great tool for certain types of businesses looking to quickly and effectively interact with their customers online.

We have recently switched banks to a bank that offers this online chat. Obviously, nerdy guys like us are going to use a feature like that!  Considering how much we are online, that is a very convenient feature for us.  We have tried to use it several times. We always get a quick response from an bank employee on the other end when we submit an inquiry, but that person always says "can we just call you?" Okay, that's not so bad (I do wonder why they installed chat if they aren't dedicated to using it), but the real problem is that they usually don't call back quickly (if at all), and when they do call we have to re-explain the problem because it is not the same person we were originally chatting with.

This actually makes our problem (as the customer) even worse because, while the business makes an implied promise that they are available to help us online when we need it, they really aren't available and they usually can't help us with our problem when we need them to. Their online chat is working against them because it is making promises they can't/don't keep. I would much rather have a phone number that I could call and have a more typical customer/business interaction on our banking issues. For this bank, it seems like they added this feature because it was "cool," but day-to-day they aren't willing or able to use it as a viable communication/problem solving tool. And that just makes me frustrated. 

Online communication mechanisms (like online chat) are supposed to make these sort of interactions easier, faster and more convenient, but they don't manage and run themselves. They have to be supported!

I am not sure the grammar is correct, but I love the concept that you can "extenuate your brand" (for a definition of extenuating).  I am not a branding expert -- talk to the guys at Tricycle for help with developing your "1000 Year Brand."  However, I can warn you about three online activities that can really hurt (extenuate, spread thin, etc) your brand.  Your brand is not just your letterhead -- it is how you are perceived internally as well as externally.

Brand Schizophrenia

This happens when you have worked very hard to create experiences for your market, your customers, and even your employees -- AND THEN -- you participate in an activity that is totally counter to your entrenched values.  Now, this can be good when you are breaking the mold of inefficienies or a negative brand -- in those circumstances a shallow attempt will perpetuate brand schizophrenia; a successful attempt will result in "re-branding."  If your product is cutting edge and reliable, but your website is out-dated and broken you are confusing your audience.

Keep in mind your brand is not always exactly what you ARE, but may be what you want to BECOME.  So, to properly combat being a victim of brand schizophrenia you have to know where you are going, and base your actions on that vision.  On the web, that means getting an appropriate design and putting it on a system that will grow with your company.  Your website, like all of your communications, must perpetuate your brand; anything else is brand schizophrenia.  A design consistent with your image does not have to be expensive or complex -- unless, of course, that is your brand.

Keep Your Voice

Your customers, your employees, your suppliers, and all of your other stakeholders love you because you are you; otherwise they would do business with someone besides you.  It is a bad move to leave your voice at the proverbial online door.  Here's what I mean -- if you are structured and professional in your business interactions a free flow conversational blog may not be your ticket.  Similarly, if you are the cheapest (in marketing we say "least expensive") provider of your service it may be an uphill battle to convince your online audience that you are the highest quality (people generally assume a there is a direct correlation between price and quality). 

If inexpesive is your brand, perpetuate it with discount coupons, big sales, and all of the other things you do in the offline realm.  Keep your voice.

Gut Check Measurement

Usually I like to get really specific when it comes to measurement; it makes me giddy.  But, in this case, you don't need a complicated data collection or extensive reporting system.  In small businesses particularly, your brand is an extension of you, so if you feel like what you are doing is contrived -- it probably is.  Don't confuse growing pains with contrived efforts.  You should be a little uncomfortable with trying new things (blogging, tweeting, or even simply writing web content), but you should believe in the end product.

Once you are comfortable with your online activities you can really start dialing your message by listening to your customers and giving them more of what they want.  If you measure your activities properly you will start to discover cause-and-effect relationships. 

Bonus Tip -- Be Focused

Don't try to do too much.  This applies to your business as well as your web presence.  It will be a challenge to be actively involved in every social media, so don't.  Pick the areas that match your brand best and be the best.  Over extension creates extenuation.

We all know things are a little rough out there right now. The economy is struggling, but that doesn't mean our professional lives screech to a halt. Smart companies know that in a down economy the last thing you should do is decrease marketing spend. Quite the opposite, it's time to focus on gaining market share.  But you have to be smart in how you go about doing it.

We've had a noticable increase in work coming through our doors over the last couple months. Companies are looking to find more effective and cost-efficient marketing tactics to attain their marketing and promotional goals.  Internet marketing can help your company improve it's position in a down economy too. Here's a couple reasons why:

It's effective

A lot of online marketing tactics (online advertising, paid search marketing, etc.) have a pay-for-performance aspect to them. That means a company can decide what they want to spend and rely on that budget to not expand in size and scope without their say-so. When you combine these modularized, pay-for-performance tactics with the tracking and monitoring capabilities of online marketing (web analytics, website reporting), you attain the ability to shift, rearrange and tailor your efforts to those activities that are producing the most results for your business.

It's reasonably priced

Companies have been conditioned (dare I say brainwashed) to accept the ridiculous cost of traditional advertising. Everything from tv to radio, from print to Yellow Page advertising (hundreds of additional dollars to bold a business name in the phone book? Really?) cost many times more than a targeted, measurable online marketing effort. At Valitics, we like to use our hard work and heads-down research to customize online marketing plans for our clients (and deliver stats on the results that plan is producing). Traditional advertising on the other hand relies on ambiguous promises of "circulation," "reach" and "CPM" (with a lot of fear and dogma mixed in). I am not saying there is no place for traditional adversting; there absolutely is. All I am saying is that companies should demand more from what they are spending their advertising dollars on and not simply equate the familiar tactics with the most effective ones.

In this regard, we don't mind putting our money where our mouths are either. For companies who are really serious about doing a focused online marketing effort, we will take them on as "revenue sharing" clients. That means we tie our compensation for their projects to the lift in revenue we provide them as a results of our efforts. See if you can secure that deal with a phonebook company or radio station!

If you are looking to make the most of this down economy for your business, online marketing gives you set of reasonably priced, measurable tools to gain share and make the most of a difficult situation.

I recently was thinking about ways to keep our dental practice busy in a down economy.  The last continuing education class I went to talked about the lifetime value of a patient.  You want to think about the cost of acquiring that patient vs. how much lifetime value that patient brings to your practice.  I measure lifetime value in terms of both services you can provide for that patient and the value of services provided by referred patients from that patient.  In those terms, there is a lot of value in not only acquiring patients, but also in keeping your existing patients happy, developing a relationship, and encouraging them to refer their friends. 


Can your website help build a patient relationship?  YES!  Here's how:

1.  Potential referrals can get to know you, your practice or business philosophy, hear from other satisfied customers and actually see some of the work you do. 

2.  E-mail newsletters - Keep your patients informed about your business.  Did you purchase new equipment or technology to make their experience better?  Did you attend a seminar of interest?  Did some interesting news come out regarding your business?  People want to know they are dealing with a company that keeps up with relevant trends and does quality work.  Keep your customers informed so you are the first thing that comes to mind when they need your products or services.  I have found that informed patients in my practice make the best decisions.

3.  Surveys - We have a survey request card that is given to patients when they leave their appointment.  Some people have nothing to say, so it is not important.  But there are many people who have either glowing praise or strong suggestions.  You really want to hear both.  E-mail or phone follow-up messages with a reference to the survey are also great. 

4.  Discounts - If you business is slowing, it is nice to have a customer database which you can send e-mail discount coupons to.  You know these customers are interested in you already, so they are the most logical source to give incentives. 

The one thing you have more of in a slow economy is time.  Now is a great time to build your customer relationship systems to keep your customers happy now, but also in the future.  A turn around will happen at some time.  So when people have more money to spend, make sure they think of your business first. 

After reading Josh's post earlier today, I decided a confession of my own was in order.  I am a dentist and a Valitics partner.  There it is.  My second largest source of referrals after patient word of mouth is from the our website.  When people tell me they found me online and the really like our website, I run into the same dilema as Josh.  Do I tell them my company made the website or not.  I tend to not, because at that point I am a dentist and not a web designer.  And that is the way it should be when you wear two hats.  

How can I perform at both my jobs at the highest level possible?  I focus on the aspects of each job that overlap.  By designing content for dental websites, I keep abreast on the latest in dental technology and procedures.  By developing relationships with clients for Valitics, I learn how to organize information and present options in the most concise and understandable way.  The technology and coding--That is for the other guys.  But if I learn how to use the Valitics platform system for website design, customer relationships and analysizing goals it not only helps my practice, but also I can teach anyone else to use it. 

Following Josh's lead, if you want to learn more about our practice, http://www.boise-dentist.com/services/.

To learn more about Valitics, http://www.valitics.com/services.htm.

My confession is that I am an officer at Pacific Technologies and a co-founder/partner at  Valitics.  Earlier today I had a meeting with a gentleman who saw the Pacific Technologies website, and asked, “who did your website?”  I was happy to pass the Valitics name on to the inquirerer, but it created an interesting challenge.

Do I tell him my involvement with Valitics?  Should I attend the sales meeting?  Will this affect our business relationship either direction?

Here’s why it might matter to you – I am happy to recommend either firm to anyone seeking their respective services because they both do fantastic work.  The fact that I am writing in a blog and working at an asbestos abatement company is evidence that I believe Internet Marketing really works.  My executive role at Pacific Technologies has helped me understand that in many cases Internet Marketing may not be the highest priority when I go in for a Valitics sales meeting.

So, now that the secret is out, rest assured that both of the companies I am involved with deliver superior results.  In both cases, I am surrounded by specialists who know their field better than anyone else. 

If you would like to know what Pacific Technologies does — http://www.ptiasbestos.com/asbestos-services/

If you would like to know what Valitics does — http://www.valitics.com/services.htm

"If you want it, measure it. If you can't measure it, forget it."

- Peter Drucker

One mantra we have around our office is "Don't guess. Know." Well, I have been taking this work mantra home with me a lot lately. I have been on a measurement kick. Like, kind of an obsessive one.

Some Proof

1) Weight - You might already know about my weight loss plan. What you probably don't know is that I have an elaborate, color-coded Excel spreadsheet and a slew of calorie calculator websites I visit every time I ingest something.  I have two friends on my system now too!

2) Money - I keep a detailed record of how much change I collect per week. I have the denominations sectioned out on my counter in my kitchen (I get back quarters more often than any other denomination, including pennies; who'd of guessed?). I find the weekly fluctuations fascinating. Everyone else just makes fun of me for it, but I don't care. Knowing how much change I collect per week let's me forecast out how much money I can collect per year, which gives me a good excuse to buy things I can't really afford.

3) Height - Last weekend I had friends over to watch the Boise State v. Oregon game. My friend Tim is always saying he is 6'4". Well I am 6'4" and change (get it?). Tim towers over me. So, I searched my house for 10 minutes to find my measuring tape, made him stand against the wall and measured how tall he really was. He's 6'7" with no shoes on. Mystery solved.

4) People's Actions - I daydream on my drive home every day about how cool it would be to be able to measure the patterns of people listening to the radio. Things like:

     - What songs are most/least likely to trigger a channel change?

     - On a per song basis, how likely are people to increase/decrease the volume?

     - How much do they increase or decrease their volume per song?

     - How many people leave a station when an ad comes on?

     - How likely are they to come back to that station? In what time frame?

All of this data would be huge for radio advertisers if they could get their hands on it. I bet satellite radio has some of this data. I wonder if they use it...

Measure Everything

Keeping track of stuff is fun, especially when it comes to stuff that is easy to measure. Just like weight, money, height and peoples' actions, websites have all sorts of measurable data points that can lend valuable insight into how/why people are interacting with your business/organization on the web. And I love measuring all that stuff too!

One of the core goals of almost all websites (for good or bad) is to get people to come back once they have visited.  This generally makes sense because the cost of retaining should be less than the cost of initial contact.  I thought I would give you a couple of metrics for determining whether your website is achieving the goal of visitors "coming back for more."  Below are a few of the concepts related to getting people back, and a potential metric (or two).

Great Content

Great content is probably the best way to get people to return to your site.  I have a few metrics for measuring great content, and you can't really use any of them in isolation and come up with a reasonable assumption about your content.  There is no way to use a single metric with no analysis to determine the quality of your content.

New to Return Visitor Ratio -- This will give you an idea of your customer mix.  If one of your goals is to have more return visits this ratio should be high.  However, because it is a ratio, if you work hard to get new visitors and you work on retention, the scales may tip.  As a general rule you want the ratio to reflect how you allocate your marketing resources.  If it doesn't you may want to reevaluate the type of marketing/advertising you are doing.

Number of Times Visited -- This will give you a clearer view of website loyalty than New to Returning Ratio.  Again, be careful about making assumptions without context (competitors may visit your site many times, but that doesn't increase the propensity to be a loyal customer).  Depending on your analytics this measure may be lifetime visits or period visits.  If it is lifetime (like Google Analytics) it is difficult to pin retention to any specific campaign, but you can see the likelihood that people will return.

Top Content -- Look at the top pages of the site ranked by unique pageviews and compare that to total pageviews; you might be surprised that your home page is not always at the top of the heap.  Visit the top pages on your website and make an educated assumption about the quality of their content.  If pageviews is significantly higher than unique pageviews, the time on site is relatively high, and you feel the content is compelling you are getting close to safely saying the page has good content.  Keep in mind, the purpose of the page greatly affects your assumption.

Newsletters

Newsletters are a good way to bring people back to your site.  If folks double-opt-in to your email campaign you are almost guaranteed at least one return visit (don't mess it up :-).  What you want to find out is, what is it that makes people come back for more.  There are a number of metrics you could use for this, but my favorite is:

Campaign Impressions to Unique Campaign Visits  Ratio -- This will take a little calculating, depending on your analytics solution.  Basically, it is a measure of the number of emails opened (an "opportunity to view") divided by how many people visited the site (don't count bounce visits or multiple visits in a time period if you can help it).  Once you have this number start comparing it campaign to campaign.  After some comparison you will be able to determine which content, design, and frequency keeps them coming back.  If you have website conversions add that to the mix for gut-checking your newsletters' efficacy.

Forums or FAQ's

If your site serves any sort of support function return visits can be good and/or bad.  You can't make that determination using web analytics, but you can get closer to understanding why people come back.  The two best, non-web analytic, ways to know if your forum or FAQ is working is to (1) notice a decrease in support calls or emails and/or (2) ask your visitors via surveys.  But, to start to get a preliminary look try the following metric and analysis:

Time on Forum Pages -- This is a very deceptive metric, so don't take it at face value.  A bigger number is not always better.  More time on forum pages could mean people are engaged and finding answers; it could also mean they are lost and can't find what they need in an acceptable time frame.  Start by looking at the content on high time pages -- Are there comments multiple comments or strings?  Is there a low bounce rate and high exit rate?  Are there high search engine entrances?  These things likely indicate the content is helping. 

As with all metrics using them outside of appropriate context is dangerous.  You will certainly need to analyze your analytic data, or you are likely to make the wrong decision.

I took this weekend to tackle the task of cleaning out the garage.  I have years of "stuff" piled in there.  Some of it is worth more to me than others and some is just junk that is old and dated.  Garages (here comes the metaphor you've all been waiting for) are kind of like websites.  They tend to accumulate old, dated and worthless stuff.  A clean, organized garage is great.  It has good stuff in there and you can find it when you need it. 

The same goes for a useful website.  Good websites have the information you need at hand in an organized manner.  The more information in a website, the more organized and planned it must be.  Right now I am doing a garage assessment.  What do I really need out of all this stuff?  What is the best organizational pattern so my garage can stay organized and clean in the future?  You get the picture. 

Well, that is enough of a break from cleaning.  Now if I can only build in some search functionality for the garage...