EVERYTHING ON SALE!!!

This blog is about human nature.  Everyone wants a bargain. Everyone is looking for a deal.  It's Black Friday and people were camping out, missing dinner with loved ones to get a bargain on a TV or an iPad.

It works though - I saw tents outside of our local Target last night.  We can debate how we should be focusing on one and other, and that the "reason for the season" is being forgotten, but brass tax people, if it wasn't wanted, this marketing tactic would not work.

Since everyone wants a deal, sites like Groupon, Travelzoo, Yelp, Amazon.com Local and Google Offers have all sprung up to save people money and give you a little change back for your trouble.  Yeah, you hear from my tone, that this is not really that supportive of the little guy in most cases.  My first experience with this deal was with a local radio station... they offered me these coupons that would pay for $3000 worth of advertising. It would "benefit" me because it would come in slowly, and would bring in traffic.  This is what happened:

• No where in the document, did they say they were going to discount my gift certificates and that people would be paying $5 for $10.
• They sold more than my contract expected
• These "gift certificates" are still coming in two years later
• Customers rarely tip the waitresses on what they spent before the gift certificate
• People constantly try to use them all and dicker
• New business was not created, because these customers were not our market

So then, I looked at Travelzoo.  They made a deal up from our menu, halved  it and told us we would get 60% of the sale.  So, math people.  Our Food/Wine goods costs are around 50%, add all the wonderful things like rent, lights, heat, employees, insurance... we have a slight margin.  So Travelzoo is asking us to lose money on the deal to get bodies into our restaurant - that is a SHORT TERM GAIN - and an overall loss.  Again, this is what I should be expecting from our Radio Ad:

• Loss of revenue
• Customers outside of our target
• Employee morale hit

So, I decided, it was to big a commitment to too large an audience to experiment.  So I went to Yelp and played with their deals. They are the same commitment (they are all the same, 50% off, and they take a cut), so I wanted one that I could experiment with, turn off, modify, and play with our internal systems. So this is what I did:

• Made it so it was very clear you could not use more than 2 at a time
• Modified our POS to add gratuity when the cert is used to cover  the employees
• Asked for them to be presented at beginning of the meal

The third bullet is super important.  This is why... This whole discount idea, really replaces my print advertising budget.  Unlike the snail-mailed coupons, that look kinda cheap, these sales online feel like a bargain for people to have an extravagant night out.  My servers need to know when someone has these coupons so that they can:

• Make sure that their experience is so good that they come back (build loyalty)
• Take the time to share what is great about the menu and the wines, and get them to have a big night out on their savings (upsell, because the majority of couponers that came in, don't spend more than the coupon)
• Get them to have something that brings them back in a timely manner (we have dated coupons to get them back within 2 weeks)

This seems to be working.  I am working on a training plan for new employees. After my Yelp training, I was ready for Travelzoo (http://www.travelzoo.com/local-deals/California-Central-Coast/Restaurant/8371). We started this week - our sale expires soon.  I will give you updates on how we have been working, and the issues we have seen so far.  I think you need to go into this with a plan.  I worked with my Chef on how much traffic we could handle, I am printing special menus from a suggestion from another business that did this.  Overall, we keep repeating the goal:

Get the customer to become a repeat customer.

I warn against the TV and Radio deals. You see no cash come into your business at all.  It's a trade for advertising, and in this economy - cash (even if just covering costs) is king. Take a look at each program closely before you consider them.  They pay in different intervals, and some (Groupon) has not been paying quickly.  Check them out, and ask for local references. That was the best thing we did after our Radio debacle.

Have you worked with these deals?  What's your advice?  Like us on FB at: http://www.facebook.com/SocCentral and get into the conversation!

I can make you rich... really.

Uh huh...

Every day at my bar I get at least two cold calls and at least one walk in that tells me how I am messing up my online presence and how they can bring in hundreds of people into my establishment if I just let them take over my social networking and website. Now, there is always room for improvement, but is that how you were raised to start a conversation, let alone try to make a sale?

My favorite, is when they say, "We ran a report and found TONS of errors on your site, and that they can fix them for you for a nominal fee" or even, "Whoever designed your site didn't know what they were doing."  Um, that person would be me, the person who will be paying for your service as well.  Starting our business relationship off like a bad abusive relationship where the salesmen first tells me that my past decisions sucked, and even that I do, but they are the only can make me better -  is REALLY not the way to motivate me, and I can't think of it working on any other small business owner. Honey, I can spot a snake oil salesman a mile away now, and mostly learning from my mistakes.  Maybe you can learn from some of them too...

1. Don't be their first customer.
• Ask for references... pages, quotes, phone numbers.
• Ask their references... how much time they were saved, how much traffic change did they see,
  how well their vision is being communicated online.
2. If they promise traffic and increased followers ask them:
• Twitter
• What % will be robots and what % high visibility people?
• What % of followers retweet?
• What tools do they use (existing or in house created)?
• Where will they get content for tweeting? How often do they plan to tweet?
• What are their goals for followers?
• How will they report updates?
• Facebook
• What is their method for getting new followers?
• Who will be responding and posting
• Where will they get content for posts? How often do they plan to post?
• What are their goals for followers?
  
• How will they report updates?
3. How much will this cost me?
• Seriously, we tout social media as being free all the time, but we know it costs time, and time is money.  It also really needs tools and they cost money too. Lets say it costs minimum wage in California for someone to be maintaining your interests online. That's about $250 a month for 1 hour a day to be spent on Tweeting and FaceBooking.  That's a lot of money for a pretty low hourly wage to be guiding and directing your business strategy online, so what are they doing and how do they work for you?

I have worked in media companies, as well as now owning my own business for two years.   I need to listen to what they are saying in their criticisms, to see if I hear the same thing a lot, and then change things up to make that criticism go away and make room for the next one.  After all, I  let that "horrible" website (http://gatherwinebar.com) lie dormant for 2 years, and in one week of making changes have made 5x the effort in party scheduling. What I don't need to do though, is spend a lot of money for someone who cannot show me how they will make up the cost with income like I just did.  Most can't.  I know how to run my business, today.  I learn more daily - my opinion is  - most people who cold call my business over the phone or by walking in off the street, should not have my business.

Your thoughts?

Disclaimer: I worked on a design/ad company for 2 years, and Fortune 500 companies for years before that - vision comes from within.  If you have a company telling (or even yelling at you like I have heard in the past) what you should be doing and that you don't know how to reach your customers, run.  You started your business.  You know who you want for customers, you know what you want to sell, you know what makes you money.  If you don't know that, then an ad guy or social media maven is not going to help you.  At best, they are going to send you a bunch of traffic that you are not going to be able to fulfill, at worst, no one new will come to your door because the vision they communicate is not your business. 

Assuming you do know your vision for your business, this marketing company should be able to come back with a plan that tells you how to reach the customers you planned your business for. If they can't, you can do this yourself.

A Place for Online SNARK...

 

 

UrbanDictionary -noun Combination of "snide" and "remark". Sarcastic comment(s). Also snarky (adj.) and snarkily (adv.)

 

I am sarcastic. I come by it honestly from a long line of New Yorkers that tell it how it is, and when they aren't being straight with you, they say the truth, sarcastically.

I moved to California 6 years ago. To say it's PC where I live is incorrect.  It's small town.  Sarcasm is lost on many, thought of as mean and unapproachable by some and only appreciated by a few.  Add to that, owning a business in a service industry, and it is a sword that needs to be wielded very carefully if at all. When said in person, one can hear tone, see facial expressions, and has a much better chance of understanding your gist.

Online... ooh that's another matter.  I thought about having my own personal Facebook page where I could be "me" and be pissy and acerbic if I feel like it, and have a way to vent. I thought about having my own twitter as well... *EPIC FAIL* No one cares. Really. If they do, they will use it against you. They will find you funny and awesome for 5 minutes and then a jerk for the rest of the day. 

I am not a jerk, I just have jerky moments (yup, I am human). Jerky moments in print are forever.  Have you ever gotten an email that you sent in the past thrown in your face?  I have.  Have you ever print screened someone's status on Facebook?  It's been done...  A post and a delete, is out there somewhere still - trust me.

My business was founded on buzz. Controlled buzz. I posted construction pictures, I got people excited about me buying their wine and showing it off, I invited them to the party that happens every night.  My business is based on my wine bar being "comfortably elegant" and comfortable comes from my business being an extension of my customer's home.

Drumming up passion about negative situations or people in my life does not create comfort.  It might create traffic, but if people don't like our wine, our food or feel comfortable, then it's not a marketing win.

That's the point - it's all marketing.  Know that every part of your life is your business. From going to the grocery store and running into customers, to getting a pedicure and chatting in the chair, to talking in a coffee shop, you are always a representative of your business.  If you have more than your closest 12 friends and followers online, then every account you have is marketing you, and therefore your business.

There is no place for SNARK online if you have a business.  Belittling the competition, customers, rules will bite you in the butt. Personally, if you think about it, what profiles do you hide? I hide the jerky and pissy ones.  Do you want to be hidden or heard?

The whole is greater than the sum of its parts

Why does social networking work? Because you are not alone.

I started a business with a lot of help from friends and family. My vision was singular, but I could not have done it alone.  People painted, built, scrubbed, and sweat to help me achieve my goals.  The best people did it because they saw my dream coming to reality.  They shared the vision.

It does "take a village" to get things done and there is nothing different in Social Media.  It's not even subtle - they call it "SOCIAL" for a reason.  It's all about relationship building.  I have been told for 17 years that I am a force to reckon with, you don't want to mess with me. My communication style in the business world was, NO first, then MAYBE then NO... In 2 years, I have gotten to pour wine for a living, give hugs as people walk in the door, and make people comfortable - BIG CHANGE in communication. Social media was a way to get a quick makeover of sorts.  I share (sometimes overshare) all the time.  I brag about my staff, my food, my customers, my friends.  I know CLEARLY that all the vision in the world for a business is nothing without all of these people, but I get to share it every day.  I use social media to keep these relationships in tact, even though I have little to no time outside of the four walls of my business.

What does 2000 followers on Facebook mean?

• 3000+ page views a day - can't get that from standard media every day
• Personal interactions whenever I have a moment
• Ability to target messages to genders, locations
• To the second advertising of specials
• Easy tool to show appreciation immediately, instant gratification to the customer
• Like watching a sitcom or the news, your customers get to know the people who make your business happen, intimately

Interaction with your clientele is what makes you different from Walmart, chain Coffee Shops and chain Restaurants.  Knowing the owner is important. Being remembered by the owner and staff is your goal and what will separate you from the pack.

"According to many, George H. W. Bush’s career was advanced by his strong habit of sending thank-you notes (an act ingrained by his mother, no doubt)."

http://www.nytimes.com/2007/11/18/fashion/18age.html.

There is NO WAY ON EARTH, I will be mailing out thank you notes (so if you get one from me, you are truly special).  I have Christmas cards from 2001 with stamps on them waiting to be sent out (several people have died that they would go to, time flies) so I needed something that would allow me to say what I wanted to in an expedited manner. Social Media doesn't just help that, it is the glue to my business relationships.

My business is a cocktail party every night, without knowing who was invited, and hoping they all show every night.  Social Media is my way of letting everyone know they are always invited, always welcome, and always appreciated.

How do you use Social Media in your business to build relationships?

I am naked

Titles work. They suck your customers and viewers in. It's marketing peeps. Gotta get people's attention in your posts.  I am thinking about Facebook for this post, but would love your input on other medium for your tips on how to see what has been successful for you (twitter, linked in, myspace, blogs and others - how do you do it?).

My thoughts on how to get people's attention...

• Say something out of the ordinary 
• Constantly posting events the same way is boring - there are different ways to show things off - updates, pictures, friends posting.
• Don't just post to post - if you post infrequently but it matters, then people will take attention at your posts.
• Be timely - posting something that happened 2 weeks ago or 5 weeks in the future doesn't work.
• Show a picture
• Pictures draw people in - they say that it says 1000 words, but those words are different to every viewer.  It's an amazing way to say EXACTLY what the viewer wanted you to say by them making it up themselves.
• Use a poll
• Tricky one here - I think polls stink.  But if you can get a controversial (yet benign - this is business right?) topic and some wild answers - try it!  Prizes help too...
• Make sure what you used to get attention is true 
•  False advertising is false advertising - people will not follow your cry for wolf more than a couple times.
• I am naked - under my pajamas (I blog in bed a lot)
• 
  

Making a club...

My last post was about being cool.  What is cooler than being in a club?  Clubs are organized cliques! Cliques by definition are cool!  So why a club? Why make a group for people to be members in? How do you do it so that your goals for your business and the club are maintained? Because clubs get things DONE!

I joined a board and a business association when I first opened my business. I really could not participate until I had my feet on the ground and had staff that could run the place so I could attend meetings and get time to help out with things - I am glad I stuck with it, because it's been a great thing for my company and to help build relationships with the bizs around me. I then was asked to be on a chamber board.  It was outside my physical business area, but the members of the board I knew were supportive, and it felt like a good fit - but then there was drama - and a LOT of it, so I left it before the ink was dry. Then, I was asked to join the Rotary.  I was sponsored, nominated and approved by the board.  It's a group that I enjoy because it has structure, goals and camaraderie. I am sure there will be others, but these are 3 great examples to start with.


Why create a club?

• Common interests attract people to each other
• Relationships within the club keep people
• Positive clubs with good membership invite the same to it

How to create a club?

• Start small 2-4 core people -you need workers and people with time and skills to help build the club
• Set goals and objectives - keep them small 1 core goal, 2-4 objectives that meet that goal
• Be selective who joins in the beginning - you are setting a tone and exclusivity will make the ones that want to join later, more willing to follow your structure and help out

How to grow and keep the club going?
Monitor your club... Your club has a goal, and objectives. You and your core group are now responsible for keeping it in line.  How to do that in your social media tools is important.

• Facebook - watch for spam, hide it, block if necessary.  Talk offline to people about the goals of the group.  Do not chastise! No one, no one wants to be told they are wrong - so don't.  Explain your rules, and then moderate. If you need to - change to a group, and make it invite only.
• Twitter - search for mentions, use tools that alert you. Search for your business or club name - stay on top of what people say - thank a lot and retweet as much as you can for things that fit your goals and objectives.
• Blog posts - check for responses.  Delete spam, and respond to all posts.  Yes, all.  Your blog needs to be active.

If I could say one thing about the club you are making it would be this - STAY POSITIVE.  Your club has to have a positive energy and goal to have growth, keep that always in mind.  If you have a Negative Nellie or a Drama Debbie, get them out.  The ripped band-aid hurts, but the club will be better for it in the end.

I have a secret...

Why do certain pages gain followers and others don't?

'Cuz the cool ones make me feel cool for being there.

Not always easy for all professions, businesses or even people.  Here are some quick tips on making your followers feel cool...

• Know them.  
• Even if you might not know them on the street, know what they love, who they love, what they want.  It's amazing when you can't remember a name, if you can remember their drink, the first time you met, what they were looking for that you found... It works.
• Let them know you.
• Weird but true, everyone wants to know the owner.  You have to put yourself out there.
• Don't belittle your competition.  
• Hard, especially when they belittle you, but higher ground prevails. After all, if your customer had a good experience there, or enjoyed themselves - you are telling them they are not cool by going there.  #fail on the goal.
• Thank them.
• In public, and in private.  They need to know you know how important they are to you. Thank with a note, a free sample, a hug, a flattering introduction... it all is appreciated.
• Be sincere.
• None of this crap works if it's an act.  You may be a great sales person, but if you are building relationships, you need to put yourself out there.  For reals.

I go places that have great products and there needs to be more.  The chef coming out to thank me, the waiter remembering I can't have nuts, that all makes me feel wanted, or cool.  You really do want your customers... making them feel it is the goal.