The Difference between Principles and Practices

The Difference between Principles and Practices

There are certain Principles that are Timeless.

There are certain Practices that have a limited lifespan.

We need both.

We also need to know and understand the differences.

I’ll use two different examples, one of which is my area of expertise, the other is simply an observation.

Personal Land Transportation is the example I’ll use for the latter.

The United States of America is just shy of 250 years old.  Our ancestors, the ones that arrived from other continents, came overseas way before the United States became a country.  Water travel, boats, ships with multiple people… it was a form of mass transportation.

On land, we have had, horses and other animals we could either ride or attach to something that was pulled.  Eventually bicycles became a popular form of Personal Land Transportation and then automobiles mostly powered by gasoline. Today the growth and popularity of electric vehicles continues to grow but it was be years before they replace gas powered personal land transportation automobiles.

I almost omitted rail transportation because it’s not a personal but a mass transportation system, however we as individuals have the freedom to use trains, subways and other rail based transportation to travel from one place to another over land.

The Principle is simple.  Get from one place to another over land.  It takes action and energy.

The Practices have evolved over time, and yet some of the early practices are still available.  The most independent is perhaps ourselves, walking.  All we need is fuel for our bodies and appropriate clothing.  You can go faster riding a horse or bike.  Motorized transportation is the Practice that most of us use these days to implement the Principle of getting from here to there.

Now I’ll apply this to my area of expertise, Advertising and Marketing using Human Relationship Principles.

The Principle is the closer you can spread the word about you and your business using what we as Humans respond to, the better.  Boiled down to a couple of words, it’s the Trust Factor.

The very basic is called Word of Mouth.  I ask you where to go for lunch and you recommend a place and tell me why.  Because I trust you, I trust what you tell me and I go there and spend my lunch money.   That Practice is probably equal to walking in my previous example.  Very effective, but a slow way to grow your business.

Signage is another practice.  If your business has no sign identifying it, I’m not going to trust I am at the right place. That kind of signage serves as an identifier of a physical location.  There is also the physical signage that is more closely though of us advertising. I’m talking about billboards that advertise your business. Or it could be a smaller sign I see somewhere.  Signage create a little bit of trust, but not as much as a friend telling me.  The benefits of signage is that one sign can inform many more people than word of mouth and it can be placed strategically to potential customers.

Other Practices for advertising and marketing your business is the traditional media models of newspapers, television and radio stations. Online we also have a multitude of ever evolving tech.

Some Practices work better than others and it’s due to the Human Relationship Principle, the Trust Factor and how closely it is applied. Some of the online practices have evolved to attempt to create a more personalized advertising experience. As you and I do ANYTHING online, we are adding to the meta-data that is used to serve us ads that are supposed to be more targeted and relatable to each of us.

This is where I want you to really pay attention to the Difference between Principles and Practices.

The Practice of personalized and targeted ads makes sense, but it does absolutely nothing when it comes to following the Human relationship Principle of the Trust Factor.

I’ll talk more about the what and why of creating the Trust Factor in your advertising and marketing in the weeks ahead but for now, please understand that just because the an ad message is targeted and personalized the way tech can do it with algorithms, doesn’t make it better if it ignores the Principle of Human Relationships.

More Powerful Than Digital Advertising

More Powerful Than Digital Advertising

Over the past couple of decades, the biggest growth in advertising expenditures has been digital.  I’m talking about nearly anything online, from websites, to apps, to Google ads, Social Media Ads, all of it together has consistently seen growth in the double digits, percentage wise.

This is a good thing, by the way.  Technology is always evolving and automating tasks… that help us be more productive.  Our company just upgraded our CRM system this year from an older, non-intuitive software system to one that was designed specifically for our business.

As we learn to use and trust new tech, we might think that it can replace nearly everything that people used to do.

However, you and I are still people and we still use Human Relationship Principles in our daily lives.

Sure, I mostly trust my digital tech to pay bills and order a pizza, but when it comes to picking a dentist, I want another human being’s input, not just a techy.

The Trust Factor.

It is one of the most important elements of being human.

A recently released study from MarketingCharts.com says that Word Of Mouth Beats Websites, and they also list a few other ways to spread the word.

Word of Mouth has nearly DOUBLE the Trust Factor over branded websites.

Word of Mouth more than DOUBLE’s the Trust Factor on online consumer reviews.

What if there was a way to take the power of Word of Mouth and make it spread faster than just me telling my friend one at a time?

There is.

I’m referring to something I’ve referred to as “Word of Mouth with a Bigger Mouth”  It’s my radio station. WOWO, nearly 100 years old and the most powerful Word of Mouth vehicle in Northeast Indiana.

With over 30 radio stations, WOWO is the biggest Talk Radio Station with over 100,000 weekly listeners.

A news/talk format with local hosts and newscasters is a trust machine.  Thousands tune in every morning to WOWO for news, weather, sports and current events.  Our two local hosts, Pat Miller in the afternoon and Kayla Blakeslee in the morning do the ultimate Word of Mouth endorsement for a select few advertising partners on WOWO and the results speak for themselves.

We actually have a waiting list of businesses that would like to have Kayla or Pat’s endorsement because they will only endorse one business per business category.

This Word Of Mouth with a Bigger Mouth on WOWO reaches tens of thousands of consumers each day.  If you are in the WOWO-land listening area and want to know more, contact me.  Scott@WOWO.com

Feelin’ Good

Feelin’ Good

How are the feeling right now?

Are you:

Happy?

Sad?

Excited?

Scared?

Hopeful?

Hurting?

Melancholy?

Enthused?

No matter what you said you are feeling right now, it’s okay.

I just randomly came up with 8 possible emotions that you could be feeling at this moment and if you were in a room filled with 25 other people, I’m sure you could find someone else who is experiencing the same emotion you identified with.

Some of us have days when we go thru all 8 of those emotions in just a few hours.  Others can experience the same emotion for not just hours, but days, weeks, or even longer.

Emotions are part of our human experience and even if you think you are a facts and logic person, your emotions are actually in the drivers seat of your life.  If you are a facts and logic person and you got a little miffed by what I just said, it simply proves the point.

But I’m not here to play with your emotions today.

No, instead I want to help you understand the importance of our emotional side.

Because I write and talk about media and marketing and offer tips for businesses, I’m going to focus on how our emotions work in that context.

The emotional state of the people you deal with are going to have an influencing factor on how that conversation or interaction occurs, just as your emotional state at the moment will too.

Quite frankly there is a lot of negative news out there, and some peoples emotions are rubbed raw.  I’m not even talking about the political stuff, I’m referring to the challenges we are facing as we wrap up 2021.  Prices are going up.  We have shortages of everything from computer chips to staffing shortages.  A year ago we saw empty shelves instead of toilet paper and sanitizing supplies, and in my visit to the store recently, we seem to have plenty now.

There are other reasons people are having a tough time.  In my circle of friends and acquaintances, I’ve witnessed marital discord and divorce, loss of loved ones, either permanently by death, or because of disagreements that are hopefully temporary.

If you own or run a business, realize that your team wants to be the best versions of themselves, but there are other things going on that could be preventing that, at least temporarily.

If you work for someone, what I just said also applies to your boss.

Customers and clients, they are going through the wide range of emotions too, and we just don’t know the full story of what is going on in their lives do we?

I titled this piece, Feelin’ Good, because ultimately that is what we all want.

We want to feel good about our lives, our jobs, our family and friends.

We want to feel good when we spend our money.  

My wife recently spent money on two very different experiences, one was a gift box that included some fun things she picked out to send to out of town family members.  The other was spending money on getting her car repaired.

Two very vastly different reasons to spend, and yet both times she wanted to feel good when she punched in her pin number as she paid for her purchases.

It might be easy to make someone feel good when they are buying gifts, and more challenging to make them feel good when they are spending it on a repair.  But no matter what your business, please do your best to help your customers and staff feel good.

That’s the best kind of marketing you can create, an experience for all that leaves them Feelin’ Good because of what you did for them.

One more tip and this may not be earth shattering but after living in a world where we couldn’t see peoples smiles because of being masked up, please smile purposefully.  Even behind a mask, we can see a smiling face.

 

The Value of a Single Customer

The Value of a Single Customer

When a person walks through the doors of your business, in-person or online, and purchases something from you for the first time, at that moment, they become your customer, your patient, or your client.

The question is, what is the value of that individual to your business or practice?  Is it the amount of profit from this one-time purchase or, is it the potential lifetime value they create?

Most experts will tell you that the cost to acquire a new customer is ten times more than what it costs to keep them.

With that said, most successful business owners have a well thought out advertising plan, or at minimum, an advertising budget intended to acquire and attract “new” customers, but very few have a plan to keep their “current” customers, patients, or clients.

Since we agree that keeping them is far less expensive than acquiring them, understanding the true Lifetime Customer Value should be enough to persuade you to at least consider implementing a plan to keep them.

There are 4 factors we need to consider when calculating a “Lifetime Customer Value”:

1) Average profit per individual sale including upsells and add-ons

2) # of purchases per year

3) # of years they will remain a customer

4) Word-of-Mouth – average # of people they persuade to do business with you

Paid media advertising is the best way to acquire new customers. Word-of-Mouth advertising is the best way to multiply your customers, and over-the-top customer service is the best way to ensure your customers become repeat customers.

Understanding the “Lifetime Value” of your customers will inspire you to create a strategic plan to serve each customer with more passion.

Click here to get our Lifetime Customer Value Worksheet to help you calculate the LCV of your customers.
 
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How Are Your Reviews?

How Are Your Reviews?

People are talking about you.

You probably don’t know half the things they are saying.

Unless you are diligently monitoring online social media, review sites and chat rooms, you don’t know unless someone tells you what they saw.

How important are these reviews?

According to a consumer survey made public by MarketingCharts.com, 19 out of 20 people read reviews.

But, it’s not just reviews that consumers read — close to three-quarters also read the businesses’ responses to these reviews.

Nearly 80% of consumers trust online reviews, it’s the new Word-Of-Mouth that can make or break a business.  The study also says over 90% of the readers of the reviews use them to make a buying decision. A review often determines the likelihood of a consumer using a local business. This can be seen with 94% of consumers agreeing that positive reviews make them more likely to use a business. Even more telling, 92% also said that negative reviews make them less likely to use a business.

What can you do as a business owner with this information?

Be proactive.

Ask your customers to review you on Google, Yelp and the other online review sites including Facebook which is still the king of social media.

Respond appropriately to the reviews online.

You can even use these online reviews in your advertising.  I have a client that has been doing this for years, it’s the heart of their radio campaign on WOWO Radio.

Contact me for more ideas by dropping me a line to Scott@WOWO.com