Harness the power of relationships to grow your small business
By Gail Goodman
Small businesses are key drivers for the U.S. economy, representing 99.7 percent of all employers nationwide. There are 27,504 small businesses in Worcester County alone - 7,605 of them based in the city of Worcester (according to ReferenceUSA) contributing to local job growth, economic diversity, and innovation. But they face intense challenges to their success.
Speaking with small businesses owners on a regular basis, I consistently hear concerns regarding the pressure to stay connected with their customers - who for most small businesses are likely to be their next sale. Regular customer contact is especially critical today when consumers have so many options, whether online or on Main Street. Small businesses must also recognize the importance of reaching a wider audience to grow their business.
Many small businesses and organizations also have limited budgets and resources. Not surprisingly, more than 50 percent of small businesses fail in the first year and 95 percent fail within the first five years, according to the U.S. Small Business Administration. For many entrepreneurs, finding the right business and marketing solutions are critical for long-term success.
Reach out by e-mail
Never underestimate the value and reach of a loyal, repeat customer. On average, repeat customers spend more than new customers. To grow a healthy, thriving business you must leverage current relationships and start by building connections with the people who you already know and who already know you. Email marketing can be a great way to do this, as it helps small businesses keep in touch with customers with a minimal amount of time and an even smaller amount of money.
Regular email marketing via an email newsletter, promotional mailings, and event invitations keep your business in front of your current and prospective customers. Whether you’re a retailer, consultant, restaurateur, or a nonprofit - email marketing is an easy and cost-effective way to get your message out to your target audience.
Small businesses should take advantage of every opportunity to reach out to their customers. For example, the holidays can be a big gift to small businesses owners like Viki Lynch of Bark Busters Home Dog Training. Lynch, based in Hudson, knows how to leverage seasonal spending opportunities. Using email marketing to capture the attention of holiday gift buyers, Bark Busters will promote its holiday gift certificates and make the most out of the seasonal spike in spending. According to a recent Constant Contact survey, Bark Busters is not alone. In fact, 68 percent of more than 1,500 small business owners polled said they will run seasonal promotions - 82 percent will use email marketing in their promotional mix.
Communicating with customers frequently, no matter what the season, is critical. But, remember to be relevant! The Westboro Tennis & Swim Club in Westboro, reaches out to customers up to three times a week using email marketing to promote its many events - always making sure members only receive information they are interested in. Owner Justin Lundberg segments his email subscriber lists into categories, depending on activities members participate in - and then sends each list relevant communications. This precise targeting gets the Tennis & Swim Club high open rates, as well as click-throughs that average 40 percent.
Connect early, connect often
Because email is easy to forward, it’s easy for your customers to refer you to their friends and colleagues. An email newsletter puts you in front of your happy customers, and they’ll remember, "So-and-so needed a landscaper. I’ll forward them this newsletter!"
It’s also important for organizations of all types to stay connected with their audience. The Worcester Center for Crafts, a nonprofit offering craft education, uses an email marketing service to send current and prospective students new class announcements and upcoming session reminders. The Center for Crafts finds their students to be responsive to these emails and feels they are a quick and effective way to communicate with their student body. Email puts the Worcester Center for Crafts back in front of its audience and encourages enrollment.
Powerful relationships don’t just happen from one-time meetings at networking events and loyal customers aren’t made by merely sending a yearly holiday card. What you need is a plan to make those connections often and let them grow and work for you.
Lynch and Bark Busters know the value of building strong relationships and the effort it takes to do so. Statistics show that it takes up to seven contacts before you can turn a prospect into a customer. Lynch says a quarterly e-newsletter along with frequent dog care tips, "toy of the month," and other useful emails to her database of customers and prospects is the fastest, least expensive way to stay in contact and nurture relationships with consumers.
Keep customers coming back for more – and bringing their friends with them – with these smart tips:
1. Know your goals. Email marketing is a great way to achieve business and membership goals. Define them.
2. Identify your target audiences. Determine the industries, customers, prospects, potential investors, donors, and stakeholders that will be most interested in hearing from you.
3. Build a great list. Begin building your email list by collecting email addresses with permission (agreement that you are allowed to send email to an individual or organization) at every point of contact with your customers or members.
4. Pay close attention to your current customers. They’re the ones that will drive your future growth. You can learn a lot about their interests and buying habits simply by listening closely and soliciting their feedback during in-person meetings, over the phone, or through your email campaigns.
5. Determine campaign frequency. Take a look at your calendar to decide what information to communicate and when.
6. Make it interesting. Email campaigns that are personalized and relevant are more interesting and useful to recipients.
7. Offer them something. Promotions, coupons, and special announcements are a great way to bring customers in the door and coming back.
8. Watch the numbers. Use tracking and metrics to improve email campaign results by sending more targeted emails based on the particular interests and buying habits of your customers.
9. Keep it fresh and simple. People are busy, so try and vary your content to keep their interest while also making your email campaigns simple, concise, and to the point.
10. Get started. The only way to build a successful email marketing program is to get started. No list is too small.
For more email marketing tips, go to http://www.constantcontact.com/email-marketing-resources/hints-tips/index.jsp
Gail Goodman, CEO of Constant Contact in Waltham. Constant Contact (www.constantcontact.com) provides email marketing tools and services to small businesses, nonprofits, and associations.
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