Discounts and referrals: What works now
How to stand out in a crowded field without spending loads of money on advertising.
Jenny, Deer Park, N.Y.
I own a small beauty shop in a mid-sized town on Long Island, New York. The problem for me is the competition: In the past five years, three more beauty shops opened around the five-mile area, and my business started to sink two years ago. How do I stand out from a crowded field without spending tons of money on advertising?
By Lenora Chu, CNNMoney.com contributor
Start off by giving some serious thought to what really differentiates you from the competition.
Develop an “elevator speech,” says Willis Turner of the Richmond, Va.-based marketing consulting firm Huntsinger & Jeffer. That’s a 30-second answer to the question, “Why should I come to your shop instead of your competitors?”
Do you have highly trained stylists with more experience? Do you specialize in certain types of service? Are you better on service details like remembering names and birthdays?
Once you’ve identified a few key points, Turner says, focus on them again and again with your customers.
“Repetition is the key to success,” Turner says. “Remember, just when you start to get tired of your message, that’s when your customers and prospects are really beginning to notice it.”
The goal is to jumpstart a word-of-mouth campaign. No form of advertising is more effective, so make sure every client leaves your shop with a reason to tell her friends how great you are, Turner says.
Then give your customers an incentive to keep coming back — and to refer their friends.
For example, you could offer a referral program and print special discount cards for clients to give to acquaintances. Both the new customer and the referring client would be eligible for the discount.
You could also borrow tried-and-true methods of inspiring customer loyalty from other service industries, suggests Steve Winston, a South Florida marketing and communications consultant.
Start a frequent-visitor rewards system, much like the airlines’ frequent flyer programs, suggests Winston. Customers can earn a set number of points for each treatment, then win free services when they reach a certain threshold.
Like restaurants, you could post daily or weekly specials on a blackboard in the window to draw in traffic.
Or you could distribute discount coupons in your local area, like many home furnishings stores or take-out restaurants do. Try hand-delivering coupons to a targeted group of people, Winston says, such as teachers at a nearby school.
Lastly, make sure you have a brochure that lists your services and your strong points relative to your competitors.
It may cost a little money to produce, Winston says, but if done right, it will stand as a record of what makes you different in a crowded field.
Give us your advice: Check out recent “Ask & Answer” questions.
From Dr Bill Toth Houston TX Jenny – Add value! Determine what makes you and your business unique and tailor your marketing to the customers that LOVE that uniqueness. Be very clear as to who your ideal client is.
For example; Our ideal client is "Bob" or "Bobette". a 40ish YO salesperson who makes 60k per year, has two kids they never get to see, a spouse they rarely get to relax with, hasn't had a vacation in more than a year, wears khaki's and a golf shirt to work, drives a 2+ YO car, is fed up with being downsized and right sized, was considered "over qualified" on their last interview and is seeking to start their own business."
After you are clear as to your value in the marketplace, who your ideal client is, THEN you MUST have a written plan…for the year, month, week and each day.
Most important – Have Fun, Be flexible and
Live With Intention,
Dr Bill Toth
Success Coach
CreateYourFate.com
From Jeremy J. Ulmer, Chicago, IL If you are not yet using social media such as twitter, linkedin and / or facebook to help get the word out, I'd encourage you to get some social media coaching and dive in.
You may also consider some incentives geared toward target niche markets.
Also, consider designing a referral program with your current clients. Make sure they are clear that you do want referrals, what is in it for them, and how they can specifically help you in that regard.
Jeremy J. Ulmer
Sales & Business Coach
http://www.coachwithjeremy.com/
From Jennifer Woodard, Detroit, MI I would add that you should try and find out why your customers are leaving. It may not be the price. Maybe the new shops are offering more trendy styles then you offer. Maybe the beauticians are younger and friendlier, maybe they carry products that you do not carry. Try asking some of your old customers why they left and visit the new salons and take in what is different at their shops compared to yours.
From Ms Price Milwaukee, WI do you have a presence on Networking sites like Facebook? try some networking sites for exposure. if you need affordable health care go to : http://www.healthcoveragemadeaffordable.com
From Rita in Orlando, FL Go to your local library and read the book "Guerilla Marketing." YOu can also buy this on Amazon.com or in any bookstore. It has a lot of great, innovative, inexpensive marketing ideas for small businesses.
Also, consider "partnering" with another small business in a related area. For example, you are a hair dresser. Is there a nail salon that you could partner with that you have a Pre-Wedding special for members of a bridal party where if you get your hair and nails done on a certain day and patronize both you and the nail salon they will get 20% off or something? Basically, it's setting up an inter-business referral service.
The advice about rewarding customer referrals was good, you should definitely do that.
Finally, I would ask you: how much have you spent on advertising/marketing? Many people think all they need to do is start a business, hang a sign out front and the customers will roll in. What have you pro-actively done to get the word out about your business? Have you taken out ads? Have you got a radio spot? Who is your target client? Do you specialize in one type of hair style (for example African Americans)? If so: target your marketing efforts to that target client. If your answer is: we'll cut ANYONE's hair, then market yourself to families! Advertise in a newsletter that goes to area daycares/preschools, say "members of XYZ preschool get a 10% discount, and the discount is 15% if you bring in 2 or more people to get a haircut." EVERYONE has to have a target audience: focus on who yours is.
Lastly, if your competitors are eating your lunch, ask yourself: are they better than me? Or are they merely cheaper? If they are better than you are (better skills) then you have to be cheaper. If they are cheaper than you, then you need to be better (have better stylists or offer a better, more relaxing salon experience for the price premium you are charging). If they answer is that they are BETTER AND CHEAPER then no advice can help you. You need to be honest with yourself.
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I think Mr. Winston is way off base. Your not selling coffee. You should know your customers better than anyone. 1. Serve. Don't Sell. 2. Reconnaissance on your competition 3. Forget social media unless there is a true utility in it for your customers. 4. The devil really is in the details – Create some small personalized wow factors for your customer experiences and your competition will crumble like a Crummy Brothers cookie.