Q: I've started
a video surveillance business, and I've been focusing on retail
stores. I recently handed out 550 fliers describing my products and
prices, without one reply. We've also done 1,000 phone calls,
followed up by a free estimate, which sold just five systems for a
profit of $3,000 in 60 days. Do you have any marketing tips for us
to increase our sales? We think there's a big market for this
business in our area.
A: Like many
entrepreneurs, you may have launched your business based on a
"feeling" that there's a big market, without
necessarily making sure one exists. What you need is concrete data.
Decide what constitutes a good prospect—is it their size,
revenue or location? How many stores that fit your criteria have no
video systems in place and can afford to buy one in your price
range? Are you facing entrenched competition or perhaps a
completely saturated market? Without this information, you're
simply marketing in the dark.
So before you do anything else, it would be smart to hire a
research firm to conduct a telephone survey of your retail
prospects. You should also perform a competitive analysis by
gathering your competitors' marketing materials. Use them to
evaluate your pricing and the ways your company adds
value-additional services, products or features-that can help you
stand out. Then come up with distinct benefits you can use to
position yourself against your competitors in sales calls and
marketing materials.
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Your most important goal should be to meet with qualified
prospects-the ones your research tells you will be receptive to
your message. Instead of passing out fliers, which can detract from
an otherwise quality image, create color brochures to use in
meetings. While your telemarketing program has yielded marginal
results, you may see a higher return once you refine the list based
on your research data. Your low conversion rate may also be due to
underdeveloped telemarketing skills or a faulty script. Consider
hiring a telemarketing company to help you overcome these
difficulties and increase the number of appointments scheduled. And
don't overlook networking at business and professional
functions-they're terrific places to meet retail prospects.
Great customer service that leads to positive word-of-mouth will
also play an important role. For each of the five systems your
company has sold, ask for referrals and solicit customer feedback
you can quote in your marketing materials. While building
relationships with the right prospects and customers takes time,
it's the best way to lay a solid foundation for sales.
Kim T. Gordon is a multifaceted speaker, marketing expert and
media spokesperson-and one of the country's foremost experts on
entrepreneurial success. Her newest book, Bringing Home The Business(Perigee),
identifies the 30 "truths" that can make the difference
between success and failure in a homebased business. From formulas
for positioning a business and creating an image to Internet
marketing strategies and tips for work-at-home parents, by reading
just one truth per day, in one month, readers will master a
complete course on homebased business success. To read an excerpt,
get information on media appearances and seminars, receive free
how-to articles and advice, or contact Kim, visit http://www.smallbusinessnow.com.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or
accountant.