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Rick Segel, CSP

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Are You on Facebook?

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Last week I mentioned at the end of my article that I wanted to begin dissecting several of the popular social media outlets — Facebook, Twitter, LinkedIn, YouTube — to find out how people in our network are using them successfully.

There was such a HUGE response throughout the last several weeks on the topic of “FREE,” that I decided to use the same successful model for this week’s theme.

(For those of you who didn’t get a chance to read the responses, you can find them on my blog. We received hundreds of responses over a 2-week period, and I published as many as I could. I’m compiling all of them into a special report that will be available soon as a free download!)

This week, the topic is Facebook. Surprisingly, I received only three responses to my request for how people are using this social media tool in business. That is quite unusual for my readership. However, there might be some reasons for this:

• Not many of you are using Facebook
• I didn’t offer any contest or incentive to share
• I didn’t advertise it properly
• Didn’t give a good example

(Did you notice a recurring theme that’s even bigger than Facebook? Don’t use the product, no incentive to buy, & not advertised well. Seems to me I just summed up retailing success!)

So here’s the deal. First, I want to announce a competition on the best use of Facebook. The prize is 2 free months of membership on the brand-new Retailer’s Advantage site, which will launch on September 1, 2009 — PLUS your choice of ANY Rick Segel book! (Combined value is over $100!)

Now, to see the competition you’re up against, here are the three comments I’m sure you will find interesting…

This first comes from Heather Bedell, a fundraiser for the Heart and Stroke Foundation of Ontario, Canada. She writes:

I use Facebook to put all my fundraising events out there to all of my contacts and to be passed on to other contacts.

Now that I am more comfortable in putting my events up there, the response has been incredible.

The attendance of the events are up, (people feel this is a personal invitation), the word is getting out and last week I picked up a couple of brand new volunteers for my events by just asking on Facebook, who could help out at the booth at the Downtown Chatham Centre for our “It’s Raining Pennies From Heaven” Event for our Million Penny Drive.

Facebook does work to get the word out there…

~ Heather

The next one comes from a long-time reader, Penny Bolton, in Murfreesboro, TN:

I started utilizing Facebook as a FREE advertising tool approximately 2 months ago and it has been amazing! Facebook reminds old customers to come in and shop plus intrigues new FB friends to come check us out! I have been pleasantly surprised at the number of sales that can be directly attributed to Facebook! Love it!

~ Penny

The last one is from Anne Puthoff, from Emmy’s Bridal and Emmy’s Prom:

I started 3 pages for my store almost 2 years ago and I know it has had a very important impact on our business. I have Facebook pages for our Bridal Customers, Prom Customers and Tux customers. I love the ability to administer the pages myself and get information out very quickly and economically. For my money, there is no better advertising mechanism that is so targeted both geographically and demographically. We now regularly have new customers telling us “I found you on Facebook.” It also consistently accounts for one of the biggest referral sites to our “regular’ web site.

I have spent time talking with a wide variety of fellow retailers, sales reps, and manufacturers about how important a marketing tool I truly believe Facebook is going forward. Beyond that, I think it is also an important tool in creating a store image that appeals to our customers. They are on Facebook, and they think it’s “cool” that we are, too. It’s one more layer of connectivity we can create between us and our customers that we can then convert into sales.

I am constantly looking for new ways to “harness the power” of Facebook! I look forward to reading your column on the subject. If you need any further input, I would be happy to help.

~ Anne Puthoff

Thanks, Anne, for your input and offer.

Next week, watch for more examples from our network, along with the “7 Things You MUST Do To Make Facebook Work For You.”

Send your Facebook success stories to me at rick@ricksegel.com. I look forward to hearing your ideas and sharing them. Remember… the best response will win a fantastic prize worth over $100!

Have a great week!

Is Promoting Online THAT Different From Promoting Offline?

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This month is all about promoting and you can’t talk about promoting your business without including the internet. Is promoting online that much different than our traditional advertising? Yes and no. Let me explain — the web offers ways of telling your story, your advertising and promotions in multiple formats. You can easily record a video or audio explaining the promotion. That’s not difficult or expensive today and you don’t have to buy an expensive camera either. Actually almost any digital camera works. I compiled a list of the 7 Rules to Online Promotions. Many of these points will apply to offline advertising as well.

1. Know the Visitor’s Mindset:
The following are questions that customers ask themselves online. They ask similar questions offline, but they are not as pronounced. This is because online we are exposed to new businesses in seconds and make decisions much quicker than offline.

a. Why are they there?

b. What do they want?

c. Does it make sense?

d. Does it look easy?

e. Do you trust them?

2. Above the Fold:
This is just like in a newspaper. When you do any promotion you want to make sure the reader doesn’t have to scroll down the page because if they do, you will probably lose them.

3. The Offer:
Is your offer clear and understandable, short and simple to use?  We can’t confuse the customer because if you do, you have lost them. Here is an example: a Coupon for $5.00 without restrictions is understandable, where $5.00 on a $50 purchase and a list all of the restrictions can be confusing. The customer wants it their way and too many restrictions create the wrong image for your store.

4. The Blink Test:
Customers rarely read copy. Customers skim pages. Customers read headlines. Look at your offer as the customer looks at the offer with a “blink of an eye.” There is no time for week headlines and copy.

5. Going Naked:
This means there is no way off of a webpage. There are no links. The only way out is to use the back button on the reader’s computer. This eliminates all distractions. It’s as if you have reached a dead end and you have to make a decision

6. Graphics Matter:
Pictures, Icons, & even Charts work well but offline they are expensive. It is inexpensive online. We always knew that color was important and helps to sell and it is easy and inexpensive to use online.

7. Alignment with Your Brand:
It is critically important that your website represents the same look and image of your store. You can’t represent one thing in the store and another on your website. Yes, if you are just an online merchant, that’s one thing but for the rest of us who are multi channeled retailers, we must make the look and feel be the same.

This is just a small taste of this new world of promotion. Next week we are going to start my look at Social Marketing and what it means to you.

Keep your minds open and start to embrace the change, because it will benefit the smaller and independent. I will start to demystifying Facebook and what it should mean to you. If there are any Successful Facebook users, please email me. I want the success stories to share. Write to me at Rick@Ricksegel.com and let’s share your experiences.

FREE is FANTASTIC! …MORE Advice from Our Network

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FREE is far more popular than I ever dreamt, and I am putting together a special report that will be available as a free download from my website. Look for it next month and it will be announced in the newsletter.

The two winners this week for the free book, FREE, are: John Cieslinski, from Macedon, NY and June Schiada from PJS Party Supply. Congratulations! And by the way, it was really tough picking just 2 more winners since there were so many great ideas.

So, here are more FREE ideas from our network:

  • Journey Quilt Company, Nunda, NY: They sell a portion of fabric called a “fat quarter” and when you buy 12 of them, you get one free. The real interesting thing and the learning point for all of us is that they offer an incentive, i.e. something for free, when someone purchases a gift card. In this case, they give a free “fat quarter.” This is significant because gift cards are so popular and important for retailers because the average return of gift cards issued is only 88 cents on the dollar. Plus, people who do use gift cards, normally spend more than the card and it also gives them another reason to come into the store. This simple idea should be adopted and adapted by everybody. It’s a powerhouse!
  • Bucksport, ME, Economic Developer, Dave Milan: This is a downtown promotion called “Get Free Gas in Bucksport.” If a customer bought a minimum of $50 in a participating store, then they would receive a card for 10 cents off a gallon of gasoline with a maximum of 20 gallons. The more that they would buy, the more that they would save. If someone purchased $300 they would receive 60 cents off their purchase. This translated into the store paying $12 for a $300 sale. That’s a 4% discount. It became a win/win/win because the stores attracted people from a further distance, the selected gas stations had an increase in sales, and it was just a fun promotion.
  • Village Bookmarket, Palmyra, NY: They bought advertising on an area map that they could sell for $2 per map. However, instead of charging, this business put a sign in the window, FREE Wayne County maps. This generated more business than any sales that they could have had from the maps. Not only did this attract customers, but it also brought other merchants in for the maps. And that is the best form of referral!
  • 4 Goodness Sake LLC, Orefield, PA; This health food store offers a free cup of organic coffee or tea while you shop. It keeps customers lingering in the store longer.
  • Lynn Meyer from American Home Fireplace and Patio: They offer a free fireplace school 2-3 times a year, not just for customers but for the general public. They also provide free snacks, sometimes brat’s done on the grill, free door prizes, and a chance to learn something for nothing. The best part is that they generally attract their competitor’s customers.
  • Ted Bogusta, Martinka & Co, “America’s Oldest Magic Shop”, Midland Park, NJ: He gives his salespeople the authority to provide something for free when a customer makes a large purchase, a small child seems upset, or just a random act of kindness. As a result, they have created many friends and loyal customers. This tradition goes back to 1939 when the owner always had a jar of subway tokens at the register and would ask young customers if they had enough money to get home. (This shop dates back to 1877 and was once owned by Houdini.)
  • Ann Thomson, STAMPERS! Rubber Stamps and Papercrafts: They have an interesting twist. This craft business dropped having the traditional classes and instead initiated free demos every Saturday. The side benefit was that people who didn’t know that they were interested in a specific product saw the demo and started talking about it. Not to mention the friendships that were created by people watching demos together!
  • Tom Smith from the Delaware Made General Store in Dover, DE: Here’s someone who took advantage of government cutbacks. The Delaware Visitors Center started closing on Sunday, Monday and Tuesday. So this business put up a sign in the window and said “Visitor/Downtown Information Here”. He has brochures of local attractions and maps which he obtained from the Visitor and Convention Bureau. He gives free advice and information and is the unofficial visitor center. Not only did he increase his foot traffic, but other merchants referred people to him. It was a win/win because he increased his sales and showed a community spirit.
  • Nancy’s Hallmark, in Atlanta, GA: This promotion came from Hallmark — buy 2 cards and get 1 free. They had a 22% response from the post card announcing the promotion. It was the best response rate that they got from any postcard that they had ever sent out. And she says that “You are right. The magic word is FREE!”
  • Connie Barr, Magical Creations in Portland, OR: This is a large-size woman’s clothing store where the owner had given many talks to professional groups. Then the light bulb went off and she decided to create a free booklet from her talks on what to wear to flatter your body.
  • Peggy Garred, THE SUN DECK TANNING SALON, Cumming, GA: They offer a VIP tanning program where the customer who signs up receives $100 worth of free products and promotional items.
  • John Cieslinski, from Macedon, NY: This small used bookstore has done a number of things for free, such as a free cup of coffee, damaged books that are readable for free. But the one thing that they do that we can all learn from is the “groupon.” This is a coupon that customers get with every purchase. It has their store’s name on the coupon, plus three other businesses. This coupon can be used at any of the stores on the customer’s next visit. Each of the businesses gives out the same “groupon.”
  • Linda Pasco, Lemon Grass Gifts: They offer free gift wrapping and they buy special gift bags that become synonymous with their store. This is a topic that has been debated for years, however Linda looks at it as advertising and I believe that she is right. Some stores have offered free gift wrapping and then also offer a deluxe wrapping for a fee. I used to believe that was the way to go but in this economy, where customers are scarcer than ever, Linda’s philosophy as treating it as advertising is the way to go.
  • Cornelia Franklin, A Pink Gorilla: This full-service balloon delivery and event decorating service in Cleveland, OH gave out free bags to everyone who stopped by their booth at the trade show. These are the recycled bags that are used by grocery stores and had their logo imprinted on both sides of the bag. They doubled their business with this promotion. (I agree. I did a similar thing in my store and it was a huge success.)
  • The Doll House & Toy Store in Scottsdale, AZ: They just sent out $5 gift certificates to their entire email list.
  • Roberta Whipple, The JuneBug Store: This children’s store offers a surprise gift for customers who purchase $50 or more. They have 18 lockers with a special prize in each locker. When the customer spends more than $50, they get to pick the locker and some have better prizes than others. It sounds like “what’s behind door number 1?”
  • Anonymous Bridal Shop: This store asks all of its local vendors that market to brides to offer something for free that they can put together into a package for their brides. It creates more referrals, the brides are happy, and the other businesses benefit as well from the exposure.
  • Mary Wemark, Ridgeway’s Country Star, Ridgeway, IA: This home decor and gift store has a promotion called “Girls Night Out” where they offer donated services from local vendors such as chiropractic consultation, hair styling consultations, reflexology, scrap book making demonstrations, plus lots of free dips and wine. It’s a great event with great exposure and lots of fun. This is the type of event that people look forward to.
  • William Chappell, Bill’s Wonderland of Pets, in NJ: This natural and holistic pet foods and supplies store gives out free cans of dog food to its preferred customers on the Fourth of July and Thanksgiving. They remind their customers that people food is not healthy for pets. They get the cans of food free from the vendor for this promotion.
  • Gift Basket store in Dresden, ON: Every 6 months they have a free pie tasting and food event open to the public that always generates lots of business.
  • Camarillo Bridal & Gorgeous Gowns, Camarillo, California: Offers a free tank top which says “Bride” in rhinestones and the store logo on the bottom right hand corner. Customers love it!
  • Blanche Schmidt, Schmidt Jewelers, Inc., Arkansas City, KS: Every Christmas they send out a $50 no strings attached gift certificate to their top 50 customers with a Christmas Eve expiration date.
  • June Schiada from PJS Party Supply: This independent party store is a believer in FREE. These are the things she offers:

– Free Popcorn
– Free Balloons
– Free Treasure chest where children pick out a free toy
– A Balloon club where the customers gets a free balloon bouquet after buying a certain number
– Free Party guides for table arrangements, cocktails, children’s parties, centerpieces
– Free referral services for 75 resources
– Free newsletter with coupons
– Drip for Dracula during Halloween which is a blood drive and they give out gift certificates to the participants

  • Amy Trimble Lorimer, WaterMark Stationers, Moline, IL: They have an annual open house with wine and cheese where they offer 4 designs of 10 personalized cards and envelopes. They had over 240 people come in for the promotion and the best part was that they had to come back to the store to pick up the stationery a week later after it was printed. Many of them came back and ordered more sets for themselves or as gifts. Great idea!
  • Swimming Pool Company: They give out free Otis Spunkmeyer cookies that are baked daily. If the customers complain about the price of the chemicals, they just say the chemicals are free — it is the cookies that cost so much and they love it.
  • Terry Myers, Kaleidoscope Toys, Round Rock, TX: I built a float for the citywide 4th of July parade. We threw candy & bead necklaces from the float. Tied to the beads was a $5.00 gift card. We threw 800 bead/gift cards. The kids are having fun using their gift cards. Most purchases have been for more than the $5.00.

There are some great ideas here and hopefully they will become a springboard for your creative juice to start flowing. I do want to apologize to any of the people who did contribute but whose ideas were not mentioned—there were just so many and these 2 columns are 4 times the usual size!

FREE is GOOD. No! FREE is EXCELLENT! …Advice from Our Network

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WOW! I never realized what a tender note I hit when I elected to write the article about FREE. The responses were unbelievable. Many of the responses were pretty long so what I am going to do is highlight the best ideas. However, I am going to extend this article for next week’s article as well. I just don’t want to leave any out.

However, with the spirit of FREE, I AM GOING TO EXTEND MY OFFER OF A FREE BOOK TO 2 PEOPLE THIS WEEK AND 2 PEOPLE NEXT WEEK, which means if you haven’t as yet responded, please do at the link below.

PLUS: I am going to invite everyone to a free teleseminar from The Retailer’s Advantage on Wednesday night, July 15th, to discuss this concept even further. More information will be forwarded before — be on the lookout!

There was one overriding concept that those of you who aren’t using FREE should consider. That is Free with Purchase which means if you buy this, you will get this for free. Many of those free items can be items that a manufacturer will supply to you for free and you just pass them along. The lesson is: are you asking your vendors for “Free with Purchase” gifts?

Continuing with that idea is that many of you are buying logo premium merchandise such as umbrellas, t-shirts, and tote bags with your store name on it and giving that away as the free item.

The 2 winners who will receive a free copy of the book this week, FREE, are: Desert Dancer in Cottonwood, AZ and Christmas House in Elmira, NY.

However, everyone is a winner because the following is a link to download the audio book, FREE. www.hyperionbooks.com/free.

Now onto your responses:

  • From Zig Zag Gallery in Dayton, OH: During sidewalk sales, the owner always puts in a few selected items that are free. The customer’s reaction alone is worth it. (It doesn’t mention anything about restrictions or limits on the free items.)
  • Village Trading on Cape Cod: They have a garden party where they give out small planters with bath and body samples and votive candles. It costs them a dollar for the container and a few cents for the ribbon and bag, but everyone leaves happy.
  • Simply Creative in Wheatland, WY: A flower and gift shop that has a drink bar. She prints out coupons for free drinks and passes them out throughout the town. She also recommended this to restaurants when conventions come to town and this has been a big boost to business.
  • Anonymous in San Francisco: A gift store gives out a free pocket angel or a pocket heart from Vilmain. She reminds people to keep them as a good luck memento and it is amazing how long people will hold onto it.
  • Anonymous clothing store: Their slogan is “we make you look good” and they offer free wardrobe consultation and if you bring in an article or a piece of clothing that you already own, they will help you accessorize it.
  • Signature Clothing in Rutherford, Australia: They offer free embroidery on their premium merchandise and discounted embroidery on their basic and budget lines.
  • Anonymous jewelry store in Mo: He has been using free for years. When business is slow or when he has time, he goes through his customer list to see which customers haven’t been in for a while and sends out either a $25 coupon with a $100 minimum or a $50 coupon with a $200 minimum. Works every time!
  • Amber Lambke from Skowhegan, ME: For a fundraiser for the Main Street Program, she sponsored a yard sale where everything in the yard sale is free. The only catch is that the “buyer” has to make a donation to the Main Street Program. Everyone talks about it, brings people downtown, and the Main Street Program made over $700.
  • Desert Dancer in Cottonwood, AZ: They always give a free gift with every web order. They also give a free bottle of lotion when a customer comes into the store. Instead of saying, “Can I help you,” they say, “Here’s a gift for you.” They have a Lemon Sale where they give away free lemonade and free lemon cookies. On the postcard announcing the sale, it says “Bring in this card for a free lemon” and they actually give a free lemon. Another great idea is on Chinese New Year, they give out fortune cookies made with different discounts in them. The best return on their mailings is always when they are offering something for free. In the past, they have given garden seed, jewelry polishing cloths, bracelets, magnets, and ornaments.
  • Born Again Quilts-Restoration Service in Fort Wayne, IN: She offers vintage linen towels, hankies, and aprons and displays them in the studio. When a customer makes a purchase, they can choose one of these items for free. “Our favorite 4-letter F word is free.” The owner who also owns the building and is looking for tenants offered a free business seminar and invited young entrepreneurs.
  • Grow Prow: They give away an educational booklet on specific topics related to growing such as trees, shrubs, flowers, aeration. They have a free Grow Note Day where the phone just rings off the hook with people requesting these booklets.
  • A Chiropractor from Summerville, GA: He gives out the “gift of health” at Christmas which is a free session good for an initial exam. It is intended for his own clients to give it to someone else.
  • I have lots of consultants that read this newsletter and a number of them checked in on this topic. Many of them give away a free consulting session or store evaluation while others offer free reports on various topics.
  • The Stamp Addict in San Diego, a stamp and scrapbook store: They offer a FREE Make-n-Take Promotion. It applies for new products, where customers use the product (they make a card) and take it home for free. But more often than not they end up buying a bunch of other stuff not even related to the make-n-take, but it got them in the store!
  • Marci Milesky from Cooper’s Jewelers in Woburn, MA: Have a “Charmila charm club” They give a free charm of the customer’s choice when they buy 4 charms. It’s a $24 Value. It works!
  • Linda Alger, Everwarm Hearth and Home, a hearth and fireplace store: She offers a FREE remote, fan, or fireback (not sure what a fireback is) when someone purchases a stove, insert, or fireplace. It’s a $200 Savings.
  • A flower shop gives a $5. Starbucks certificate for an email address. EXCELLENT IDEA. That keeps on giving. At my store we would take $5 off a purchase to have people sign up for our mailing list. No One ever said No.
  • Tom Messingham from Garrison Hill Florists: He shares another story (he submitted the one above as well) about a bakery that gave $5 coupons when someone bought $25. The same store would give away bread and rolls at the end of every day. Another twist on that is when a bakery give the leftovers to various charities.
  • One of the WINNERS: The Christmas House in Elmira, NY is only open from July through December. On July I they always give every customer a $5 gift certificate and the 26th person in gets a $26 Certificate because it’s their 26th year in business. Next year it will be $27. Julie Delgrosso employees the old philosophy “Gift Certificates are CASH and Coupons are TRASH” (Coupons still work well BUT GIFT CARDS are working even better).

This store also offers a free Lang Calendar worth $16 to all their VIP membersOn The 4th of July they gave away free stars and stripe “Clappers.”

On July 24-26 they celebrate Christmas in July. It includes make an ornament (of course customers shop while their ornament dries). They also offer free mini-seminars on easy holiday entertaining. Also Christmas Trivia contestants get a FREE cookie Cutter.

Free drink recipes – Free Cookie decorating – Christmas Cash. It’s $1 for every $20 spent. If they spend the cash in September they can also buy one item for 505 off.

They have an August Party on The Porch called Girls Just Want To Have Fun. Some of the fun giveaways are Free chair messages, free fudge, Free wine tasting, Free making of “Wine Charms.” (I want to go, between the free wine and massages I bet the Girls are having fun.)

The Best part about this winner is they are truly putting people in the Christmas Spirit and doesn’t this just sound like the place you want to shop. BTW there are only 169 days shopping days left till Christmas.

  • Auto Expressions in The Barbados: They offer free installation of all auto bulbs, wiper blades and headlight cleaning. (That is a big deal. Did you ever try to change an overhead bulb in the car? Trust me I would have paid someone.) Denis Mahon also offers Free Car Care Clinics for Woman. If a woman returns to another clinic they receive all sorts of free merchandise. These are all supplied to the store for free from their vendors.
  • The Paddock Saddlery in Chagrin Falls, OH also gives as many free gifts from vendors along with the stores logo merchandise such as umbrellas and mugs.
  • Cassie Schmidt from Jake’s in the Village in Prairie Village, KS store is located in an upscale shopping center that was having the annual Sidewalk Sale but the temperature hit 100 degrees. Cassie went to the wholesale club and bought bottles of water and put up a sign “It’s Hot, Have a Cool Drink on Us. Complimentary water from Jake’s in the Village.”
  • Echo Trends in Cornwall, Ontario: They offer a free pair of sunglasses with a purchase. There is a dollar amount required but the store reports it actually increases the average transaction size because everybody wanted the free glasses.

More to follow next week. And remember if you haven’t already added your FREE promotion, just click on the link to join in on the contest.

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