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    Marketing Ethics: A wounded animal lashes out

    May 23rd, 2010

     

    As companies slowly recover from recession and look at their sales and marketing strategy again, Andrew Scott, Managing Director of Purplex Consulting, asks whether it’s time to stop the back-biting and get back to professional marketing.  

    This year was a landmark for British politics, as the three major party leaders followed our American cousins and went head to head on live TV, hoping to sway the votes of the British people.  The show certainly drew in the viewers and did wonders for British politics, connecting with audience demographics that otherwise would have shown little or no interest in voting.  But what did it do for the party leaders?

    While Brown and Cameron attacked each other throughout the debate, Clegg’s popularity increased minute-by-minute.  Was it his policies that overwhelmingly swayed the electorate during the debate?  While Clegg obviously had his part to play in his rise in popularity, Brown and Cameron did most of his selling for him, by undermining and attacking each other.

    It’s not just in politics we see this trend.  In response to the recession, both Tesco and Asda have tried “comparison marketing” on TV by pointing out how much lower their prices are than their competitors.  And who came out the winner? Sainsbury’s, who posted a significant increase in profits.

    Understand your customers

    Marketing is not about how big your budget is, how clever you are at attacking your competitors, or how brash your PR machine is.  Sustainable, long term business growth and profitability comes through really understanding and connecting with your customers in a positive way.

    The recession has damaged the fenestration industry and we’ve seen a significant drop in volume.   In such a market, customers – and potential customers – don’t want to see suppliers fight it out or undermine each other, it makes them nervous.  It might give a few short-term wins, but in the long run it damages your brand. We all know an animal is at its most dangerous when wounded.  Do you want to portray your business in this way?

    Successful companies who are at the top of their game are driven by marketing principles and ethics that focus on the customer, not their competitors.  Mercedes-Benz may be BMW’s arch rival, but you won’t hear them say “we’re better than they are” because they know it will devalue their own brand values.  Instead, they focus on the demographics of their target customers and what their products will do for them.

    With so many changes occurring in the fenestration industry, there is a temptation among sales and marketing departments to undermine or attack competitors, creating rumours or publishing mistruths.  But this is a double edged sword that could be damaging their own business by pushing customers away.

    In the long run, companies with strong marketing principles and ethics (brand equity) will ride the wave of recession better because customers will remain, on aggregate, more loyal.  Companies with little or no brand equity are likely to lose customers faster, and it is often these companies who revert to the negative marketing strategies discussed earlier, with the effect of turning off even more customers.

    Today, we have a multitude of marketing channels available to us.  But whatever channels we choose as part of our sales and marketing strategy, creating a sense of brand value and integrity will eventually pay dividends.

    In the final analysis, we all like to surround ourselves with positive, successful and dynamic people.  It’s human nature. We don’t want to associate with negative people, those that run down others or gossip. 

    Promoting your company, your products and your service positively, enthusiastically and professionally will attract like-minded customers.  Not just in advertising or promotion, but with the sales team in the field. Selling the positive benefits of your products – rather than undermining your competitors, will gain you respect, credibility and long term benefits.

    Andrew Scott is Managing Director of Purplex, the business, marketing and training consultants to the window industry. www.purplexmarketing.co.uk.  Andrew has acquired, built and sold several window companies and advises major organisations on business strategy.   A Fellow of the Institute of Sales & Marketing Management and member of the Institute of Direct Marketing, he has won numerous awards for business growth and strategy.

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    Online prospect database grows up

    April 26th, 2010

    In March’s issue of Windows Active magazine, Insight Data’s I.T Manager Matthew Stone was interviewed to discover how the new version of Salestracker helps companies find and win new customers. Below is the interview in its entirety.

    Back in 2008 Insight Data launched Salestracker, the first ever online fabricator and installer prospect database. Roll on two years and while other database suppliers play catch-up, Insight has been busy developing not only a brand new version of its online database, but a new way of doing business.

    Windows Active – Matthew, for those of us who don’t already know, what is Salestracker in a nutshell?

    Matthew Stone – Salestracker is an on online portal that combines a range of databases with an easy-to-use prospect management system. For example, users can log-on to our fabricator and installer database and access the latest information live in real-time on over 14,000 companies, then create a list of target prospects and instantly generate direct mail, email, telesales or field-sales lists. Users can then track prospects, leads and sales activity easily from any location.

    W/A – How do you collect the information?
    M.S
    – We have an in-house call centre equipped with a VoIP telephone system with capacity for over 500,000 calls per annum, linked to a sophisticated software system. Our telephone research team constantly updates and verifies records, which are then updated on Salestracker for clients to access in real-time. Behind the scenes we also link to a network of systems, such as Companies House and credit reference agencies, so we identify new companies that have set up.

    W/A – Once you’ve collected the data, how do you protect it from misuse?
    M.S
    – We have a sophisticated system that “seeds” the database with fictitious contacts on a rotational basis. We then monitor who is contacting these “seeds” and if they are not a current customer, we know they have used our data illegally. This breaches copyright law and potentially data protection, and with the new rules announced recently by the Information Commissioners Office could result in fines of up to £500,000. We have prosecuted three companies for using our data illegally, but fortunately the vast majority of companies take a responsible approach to copyright and data protection rules.

    W/A – What prompted you to develop a new version of Salestracker?
    M.S
    – The first version of Salestracker was written in 2008 as a simple web interface to our database, but we recognised the potential of the system was enormous. Insight has grown considerably in the last two years and established a software division with three software engineers and a technical support team. This has enabled us to develop new Salestracker as a state-of-the-art system that can be as simple or sophisticated as clients need. The new system is packed with features from sales pipeline and campaign management to a range of Apps. It can also integrate with other systems, for example if a client currently uses Sage CRM or Salesforce CRM. Although, because our system is much easier to use and is completely free (clients only pay for the data), we’ve found most clients migrate to Salestracker. We’ve also just launched our iPhone version so sales people can access prospects “on the move”.

    W/A – What level of support do you provide customers?
    M.S
    – The truth is companies don’t really want data or a prospect management system, what they really want is new customers and better contact with existing customers. So our business philosophy is based around helping businesses do just that. We configure Salestracker around the clients own needs, regularly visit and attend marketing/sales meetings to provide training on the system and recommend ways to maximise results. We currently have nearly 250 Salestracker users, and some companies have 20 or more people logging on. This requires major support as computer networks vary, people use different browsers or platforms, and computer/IT skills vary from person-to-person. Over the last two years we have established a comprehensive and “user friendly” customer support team that extends to technical/IT support, Salestracker training and “best practice” support for direct mail, email marketing and telesales.

    W/A – What other projects are you working on?
    M.S
    – We have several very exciting developments. We’re shortly launching our “Apps Store” where clients can access a range of options, including a credit reference app, quotation and follow-up, integrated email software and map marketing technology.
    We are also expanding our range of databases. We’ve recently launched our Architects database which has been very successful and plan to launch six new databases in the coming months. But perhaps the most exciting development is the launch of Cyclone, which is a new fully integrated database marketing service, which we will be unveiling next month.

    It would be easy to get carried away, but everything we do is focused on one primary objective: How do we help companies find and win new customers.

    Thanks Matthew. We look forward to hearing from you again in the future.

    For more information contact Insight data on 01934 808293 or visit www.insightdata.co.uk

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    The 8 weapons guaranteed to improve marketing results

    January 28th, 2010

    Okay, so 2009 was a tough year and you need a marketing strategy that delivers results for 2010 – quickly and cost effectively.  

    In the first of a series of blogs, Andrew Scott, one of the industry’s leading marketing experts, runs through the 8 must-do’s you simply can’t afford to overlook.

    1. Get the basics right!

    Before investing a penny, consider how your business looks and reacts to customers. How quickly do you respond to enquiries and customer requests?   If a potential customer emails or faxes an enquiry, do you call them immediately to confirm you’ve received it?  If you pass an enquiry to the sales or estimating department and it takes a day to get back to the customer, you’re already lost some business before you start. 

    People do business with people, not products. So be sure the people who answer the phone, talk to customers or deliver your products are warm, friendly and positively represent your company.  Delivery drivers spend more time with your customers than your sales people. What are they saying about your business?

    Installation companies shouldn’t forget the basics either – clean, sign-written vans, installation boards, drop-cards around current installations, and customer testimonials are more important today than ever before. And when was the last time you reviewed your CRS (Customer Referral System)?

    2. Overhaul your website

    Over 80% of your potential customers will now check out your website before contacting you – but it’s the ones that look at your website and don’t contact you that you need to think about!  For some, a website is a portal between the customer and the company – a resource to find information, place orders, and download brochures.  For others, it is simply a shop window.  But consider carefully how your shop window really looks.

    What if 20% of people who responded to your advertising or promotion didn’t take it any further because your website was poorly designed or out-of-date?  What if it was 40%, or 60%?   Take a long, hard look at your website.  Even better, ask your best customers to do it for you, and let them tell you want they like, and don’t like. 

    Lets be clear – it doesn’t matter what you think, all that matters is what customers and potential customers think and how they respond.  Once you’ve refreshed and updated your website, don’t let it go stale.  Add news, stories, updates and downloads regularly. Insight Data has a full team of software and web developers – for advice and a review of your website email us: info@insightdata.co.uk

     

    3. Plan your advertising

    Press advertising improves your credibility as well as generating enquiries. Quality, well designed advertising planned ahead will dramatically improve your results. Think in terms of advertising campaigns with a clear objective, rather than randomly placed adverts.

    Which newspapers or magazines should you consider?  Flick through the titles you are considering, contact some of the non-competing advertisers and ask their opinion. You’ll soon know which titles are well respected and read, and which ones aren’t.

    Once you’ve selected your advertising medium, the key is simple: invest in good graphic design and good copy-writing.  The best newspapers and magazines won’t give you any response if you have a poorly designed advert.

     

    4. Use the power of PR

    PR is one of the most potent tools your business can use to build your brand and position your business in the minds of customers.  Developing a medium and long-term PR plan will dramatically enhance your company’s image and perception.

    It is not, however, a magic chalice. On its own, it will not drive new business. But combine it with other marketing activities and you will see both the quality and quantity of business increase.  Your potential customers are more likely to deal with you if they believe you have an established reputation in the marketplace.

     

    5. Create leads from Direct Mail

    To generate immediate response, there is no better method than direct mail. It’s personal, exclusive and demands attention.  A mailshot sent out today can result in new business tomorrow.

    However, a lot of direct mail ends up as junk mail.  Poorly designed flyers, labels instead of personalised letters and inaccurate contacts will all lead to your hard work ending up in the bin.  And even worse, sending mailshots to contacts who have moved, gone bankrupt or even deceased.  So invest in quality, up-to-date data, think about the style/design of your mailer, personalise it and watch your direct mail response double or triple. Insight Data has a dedicated direct mail division. If you need more information visit http://www.insightdata.co.uk/Directmail.htm

     

    6. Use Email to communicate

    Email offers a low-cost solution to marketing, but with 150 billion spam emails sent every day, you need to think carefully about your email strategy. Spam filters, junk folders and the sheer volume of emails we receive means your email campaign can easily get overlooked.

    Email is an excellent tool to communicate regularly with customers and newsletter subscribers, but as a tool to generate new business you will only have a split second to generate interest then it’s gone forever. People don’t want to read long, exhaustive emails so keep it short, sharp, high-impact and use it as a tool to compliment other marketing activity rather than a stand-alone lead generator. And remember, email data degrades at 5% to 10% per month, so it’s vital you keep your email list up-to-date.  Insight Data has a dedicated email marketing division and holds data on over 50,000 contacts related to the window industry. For more information visit http://www.insightdata.co.uk/Emarketing.htm

     

    7. Invest in your database

    Always use a database to record, manage and update prospects and customers.  Just because a prospect says “no” today, doesn’t mean they will say no in six months.  So record their details and stay in touch with them.  New technology means sales and marketing people can easily manage databases from home or office with little or no I.T or database experience.  Insight Data has launched the worlds first online database for the window industry with prospect data already built-in and updated live in real time. Visit http://www.insightdata.co.uk/Salestracker.htm

     

    8. Train your people

    A company is only as good as the people within it.  Better trained, multi-skilled and well motivated workforce can be the difference between a very successful company and a failure.  As customers become more difficult to convert, sales training has got to be an ongoing priority in your business.

    Conclusion

    Getting your marketing strategy right is the difference between an average company and a highly successful one. At Insight Data, we are experts at putting together powerful data-driven marketing strategies that will generate results. For more information please visit www.insightdata.co.uk, email us at info@insightdata.co.uk or call 01934 808 293.

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