Grow From Here

Do you tweet?  Are you on twitter?

If you know you should be, but aren’t, or if you have set up an account, but don’t know what to do with it, then this is for you.

Twitter is a huge fad these days.  It’s all over the place, being talked about by many people in the marketing field, particularly those involved in social media and online communication.  But most people still don’t know about Twitter – recently I was having supper with my family, and no one at the table knew what Twitter was or was using it.  So if you aren’t on Twitter yet, don’t feel bad – you’re not alone.

There is a lot of information on the internet about how to get set up with a Twitter account, twitter etiquette, how to attract 10,000 followers in one week, and more.  I assume you can find that information if you need it.

Twitter as a Marketing Tool

I am writing this for businesspeople who have heard of twitter, are not yet using it (or not yet using it effectively) and who want to know how to get started.  I recently met with a franchisor who knew she should be on twitter, and had actually set up an account for her franchise, but wasn’t doing anything with it because she didn’t know where to start or what to do.

I spent five months doing direct Twitter experimentation.  One the one hand, I shouldn’t admit it (Twitter is supposed to be a communication tool for the real you, right?), but honestly I needed to see what would happen if I took different actions.  So I set up a number of different Twitter accounts and tried different strategies to see what would happen.  (If you want to connect with my real Twitter account, follow me at www.Twitter.com/katrynharris).  It was fascinating to see what really happens.

My assumption is that you are on Twitter because you think it will benefit your business in some way; grow sales, increase brand recognition, build strategic partnerships, get customer feedback, keep you in touch with the market, or some other business building strategy.  I am assuming that you are not on Twitter just to be social and connect with friends (although even for a business account, that will become part of the experience).

I make no claim to be unbiased.  As you will see, I think some of the commonly used Twitter strategies are poorly thought out or dangerous for companies to use.  I recommend that before any company starts using Twitter, you first look at the question:

What do I want to Accomplish?

• Do I want to grow sales directly?
• Am I trying to bring traffic to the company blog?
• Do I want to learn about what my customers thinking and get product feedback?
• Is this a brand building exercise?
• Am I trying to find people who will make good strategic partners?

Just like goal setting and traditional marketing, to use Twitter effectively, you first need to decide what you want to accomplish.  Then you can take the steps that will help you meet your goal.  As you read through the next section, keep your goal in mind.  That will allow you to quickly discard the Twitter strategies described if they will not bring you closer to your goal.

The main strategies that I have seen people use on Twitter are:

1. Twitter maniacs – These people get as many followers as possible, indiscriminately. I have a hard time seeing the value of this, unless it’s an ego thing; ‘I have 20,000 followers – look at me’.  This is unlikely to add value to your business and I certainly don’t recommend it.

2. Niche ambassadors – You pick a niche and find people related to that niche & follow them; tweet information about your niche – get found by people who are interested in that niche.  This can be useful if you have a niche business and are looking to attract customers or strategic partners – maybe people who share your interest in the niche and who offer a complementary service or product.  The key here is to slowly increase the number of followers and people you follow so you can keep connections with the people in your circle.  Ignore people outside of your niche area of interest who follow you and only follow people who relate to your niche.  This can build strong interpersonal relationships in your area of expertise and can be very valuable in terms of building brand, strategic partnerships, and even customers.

3. Rounded Brand Tweeters – You start by building a profile around things you are interested in – this will usual be professional interests with a company account, but even with a company account, you want to have some of the personal interests showing through.  Twitter is about interacting with people, so don’t have different people posting to a corporate Twitter account every day – your followers won’t be able to get a coherent sense of who you are or know what to expect.  Building a profile around areas of interest can be very useful; for example, if you run a yoga studio & are interested in politics and international finance, you might follow people who are into yoga, political or news organizations and people talking about international finance.  The blend of interests can help make your account seem well rounded, and will attract people with similar interest.  This type of account is most likely to support a branding strategy where the goal is to get known and to build your profile and build relationships.  It may lead in an indirect way to sales but that is more incidental than causal.

4. Sweet Tweeters – Tweet lots of quotes and inspirational sayings.  This will get you followers and lots of retweets.  However it is unlikely to lead to growth for your company.  It does work to some extent for people who are sole practitioners focused on drawing traffic to their blogs / websites.  If your tweets make people feel good, they will associate positive feelings with your Twitter account, and are then more likely to read and follow links that you post.

5. Twitter-educators – Select a niche & tweet lots of information (links, news articles, other people’s tweets, events, etc) that will be of interest to people in your niche.  Many marketing experts recommend this as a way to establish an identity as a brand leader in your space.  This is ideal for people who already have a public profile that they can leverage so that they get a number of followers right off the bat, but even regular companies can follow this path.  It takes some regular time to keep providing valuable tweets, but this is a strategy that can certainly bring you lots of online traffic if you are consistent about it and have frequent links back to your company blog/website.

6. Controversial Tweeting – Some very high profile people tweet in such as way as to create controversy and get talked about online in an ongoing manner.  By having people attack them, and then attacking back, they build up a base of very loyal followers.  The downside to this (and the reason I would never recommend it for a company Twitter account) is that you also get a large group of people with strong negative feelings about you.  This is a good way to ‘stand for something’ but very dangerous to any sales efforts you may have underway.

7. Twitter Salesbirds – These are usually very clearly company accounts that have regular posts about their company products / benefits / special offers / events.  They can gather a number of followers, but it is slow going since most average people don’t get huge value from hearing about how wonderful a company considers itself to be.  It’s very easy to breach twitter etiquette with this type of account.  These can be effective in generating sales if you have a very obvious value proposition and, usually, relatively low ticket items that do not require any kind of ongoing relationship.  In that case, your tactic may be simply to drag as many one-off visitors as possible to your website / links, and now worry about providing ongoing value.

Twitter is hopefully one sales / marketing tool among many.  Remember, the keys to success are knowing what success looks like for your company, then using that knowledge to select your strategy, implementing and then measuring using your key metrics, and changing direction if necessary based on your results.  With a good plan, Twitter can be a great boost to your business, and a lot of fun along the way.

Join Open Box on twitter: www.twitter.com/katrynharris or visit our blog, read our stories about experimenting with Twitter and share your Twitter stories and questions in the comments section of the blog.

Best Practices, Business Growth, Communication, Franchise, Marketing, Twitter Experiment

A recent UK study showed that nearly twice as many consumers would rather buy from a franchise than a non-franchised business (‘Franchise Awareness & Preferences survey,’ 2006.)

Queried consumers both understood the business model of franchising and preferred using them over non-franchised outlets.   

The problem was that they were often unclear as to which was which. With an estimated 22% increase in customer attainment, the evidence for franchises to increase their visibility became clear.

Contrary to the common misperception of a franchise being a ‘big bad chain’, and media buzz promoting shopping small and local as the noble way to support local economy, these new findings on popular opinion offer a much more positive perspective.  The British Franchise Association (BFA) has acted on this information and developed a brand, ‘Proud to Franchise’ (PTF) which quickly and easily allows consumers to better identify franchises.  BFA member companies (all stringently screened) join at no charge, and are promoted through logo displays and various online as well as print media channels.

How can this data improve your business?

Focus on the advantages that consumers perceive; review your marketing materials and see where they can be improved.

The study shows that consumers want to shop at franchises because they perceive these benefits:

1. Familiar products and services with quality controlled consistency,  high standards of  service levels
2. Support of local economy with the backing of a secure and stable national brand
3. Increased value-for-money due to low purchasing costs
4. Knowledgeable and invested (local!) owners display pride, expertise and commitment
5. A sense of being a valued customer

Remember: 22% more customers are available to you.

Today’s increasingly sophisticated consumers say they see franchises as the best of both worlds:  the dedicated local with the friendly touch; and the broader national network which ensures consistency, support and lower costs.  For business owners, franchises offer a strong supply chain in tough economic times.  Finally, franchise opportunities are offering a safe foothold for people looking to start a business.  All in all, you have many great reasons to be proud to franchise and to find new ways to increase your visibility! 

Have you tried something similar to the BFA’s Proud to Franchise campaign?  If not, is there a simple way you could use these findings to increase sales for your franchises (and therefore interest from prospective franchisees)?

Best Practices, Franchise, Tips

Developmental psychologist and author, Robert Kegan once stated that, “Behind every complaint lies a commitment.”

The theory behind this is that people do not complain about something unless they care about it.  If they didn’t care, they wouldn’t bother to comment.

Sometimes, I am very hard on my credit union.  I love what they stand for, and want them to live up to it.  But every time they fall short of their high standards I am all the more disappointed.   So I complain.  But unless things get too bad, I am fiercely loyal to them as long as I believe that they are doing their best to live up to their brand promise.  Companies that I don’t think care, I don’t bother to contact with complaints - I just leave and go elsewhere, silently.

Complaints often spring from a person’s frustration.  Attempts to voice their frustrations often come out as complaints.   As the person receiving the complaint, it can be seen as a negative (oh no, what a pain) or as a positive (this person cares about my franchise and believes it can be better).  The perspective you bring to the complaint will make a huge difference in what you do with it.

Although you are on the receiving end of the belligerence, you are also the one in control.   It is up to you to turn things around, and it will definitely benefit both parties.

How can you turn a complaint around?  Change the dynamic by changing the way you listen.

If you can create an atmosphere of safety and allow full expression, then several things happen.

• The relationship stays strong
• The speaker no longer feels victimized, but is now empowered
• The complainer is no longer part of the problem, they are part of the solution
• You become known as a good listener
• More importantly… You have accessed new information
• The complaint is turned inside out, becoming useful data
• This constructive feedback can improve systems and operations

The potentially disagreeable situation can be turned around, by the way that you chose to see and respond to it.

You have shifted the complainer from being a problem to being a part of the solution.

Open ears and an open mind are very welcome to an agitated speaker; it leaves them feeling heard as well as reinforcing the feeling that you are committed to your brand promise.  This creation of a safe space will work wonders to diffuse the frustration of the beleaguered grouch.

Who in your franchise complains a lot?

Why do they bother? 

Are they trying to make things better? 

Are they committed but caught up in feelings of frustration? 

Even when a complaint appears as a self-centered attempt to increase profits, bear in mind that you can turn the situation around, and use the feedback to benefit you both.  And yes, I know that not every complaint indicates commitment, but I have found been impressed by how some of our customers have managed to add huge value to their franchises by changing their perspective on how they receive complaints.

Remember, if they didn’t care, they wouldn’t complain.

Best Practices, Business Growth, Communication, Tips

A few days ago, I was talking with Greg Nathan from the Franchise Relationship Institute about his software product that helps franchisors select franchisees who are the most likely to succeed.

In brief, the Franchise Relationship Institute does this by benchmarking characteristics & traits of past successful franchisees and then providing a system that compares new applicants with those traits and characteristics.

Greg is a trained psychologist and works strong in the scientific tradition; hypothesize, measure, analyze and then compare results with hypotheses.  One of his current projects is the validation of the exact extent to which is product is successful in predicting new franchisee success and, not surprisingly, his results will be fact based & very precise.

Listening to Greg talk about the validation project, I was struck again by how vital these feedback loops are to franchise growth.

Successful franchises implement the best programs and systems they can come up with, but then they measure, analyze and adjust based on the numbers and results (rather than what they ‘think’ is happening).  And the faster they can complete this cycle (and then start it up again), the more likely they are to be successful in the long term.

From 1-800-GOT-JUNK?’s Net Promoter measurement tool to calculation tools for attrition rates to sales performance indicators, business growth is fueled by knowing exactly what is actually happen so the best actions can be taken.  One of our customers ties client satisfaction records into payroll bonuses for their employees, which is a great motivator to get everyone in the company on board in trying their hardest to keep the clients happy – you can imagine what that has done for their referral and return customer rates.

What are your best scientific tools to create feedback loops and do more of what is working & change what isn’t?

Best Practices, Business Growth, Franchise

I hear the word ’systems’ and I get excited.  I see possibilities to set things up that make life easier for people & that allow them to focus on what they need to focus on without trying to remember the little details.  I think about setting people free to do what they do best (our company vision).  I think about how it’s the little daily stuff we do that can really change our mindset.

I know that not everyone shares my delight when they hear systems.  Some people think about technology, others think ‘what a hassle’, others just glaze over.  One of the things I enjoy about working with franchisors is that they tend to share my joy in systems.

Out of curiosity, I recently went to Wikipedia to look up the definition of a system:  “a set of interacting or interdependent entities forming an integrated whole.  Systems have structure, behaviour and interconnectivity.”  It almost sounds like poetry to me.  Structure, defined behaviour, and interconnectivity – what better way to grow towards a goal and make sure that each of the pieces is taken into consideration.

However, lyricism aside, good systems are critical to a franchisor.  They increase efficiencies, allow the franchisor to manage the brand effectively, improve communications, and help to increase franchisee satisfaction which then increases your credibility in the marketplace, and the value of your franchise.

Systems include the software used to manage operations, as well as the various forms, checklists, operational manuals, policies and procedures and franchise wide processes.  Systems are also the set of rules that govern behaviour and structure.  The design of effective systems is an entire science in itself (systems theory) which ties into operational behaviour and strategic planning, as well as change management processes.

During periods of growth, the strength of the franchise systems becomes even more important as new people are being brought in at an increased rate and the time available for each task decreases.  Often small gaps in systems become much more expensive or unmanageable during periods of franchise growth.

Franchise systems can include:

• Policies
• Procedures
• Departments
• Corporate (head office)
• Economic
• Cultural (relational)
• Production
• Distribution
• Communication
• Information Distribution
• Sales
• Marketing
• etc, etc, etc

 Developing a system can be challenging as it requires a degree of abstraction and a strong understanding of how all the pieces tie together and how these relate to the business strategy.

Just today I was meeting with a franchisor who had been struck by a very critical system that was suddenly discovered to have been missing from the franchisees’ operations.  “I had it when we ran our first office, but I was absolutely shocked to discover that they didn’t have it.”  Systems that depend on people remembering or doing the right thing require constant energy & attention to maintain.  This is an ongoing struggle and it is easy for systems to fall away over time.  But automating a system not only means the people can put their attention elsewhere (hopefully into growing the value of the franchise) – it also means that the system will be maintained automatically and flagged if it disappears.  What a great way to grow your business!

Best Practices, Business Growth, Franchise

Ever feel like you’re in business overload with a task list that just keeps growing?

I’ve been in that situation recently – lots of good things happening, but the list gets longer every day rather than shorter…  Pretty well everyone I talk with who runs a small-medium business is familiar with the feeling – as soon as you get the sales structures nailed, the project management systems need work.  Then you get those nailed, and the customer support processes need strengthening.  It feels a bit like the gopher bashing game - as a kid I used to go to a local fair where they had a game with multiple holes and gopher heads would keep popping up and people playing would try to bash the gophers (not live ones!) with a mallet.  Every time you got one, another would pop up. 

This is not a new problem, of course.  Solutions are popular; from Verne Harnish’s one page strategic plan (which I depend on heavily) to a variety of other management tools.  But it has been very present for me recently.  I’ve found a couple of things that help me keep a handle on what needs to happen when:

• Lists.  I love lists; writing stuff down gets it out of my head AND gives me a nice visual indicator of progress as I can check items off.
• Delegation.  Once I’ve spent the time to write something up, then maybe I can hand it off.  Otherwise it stays as mine to do!  I did a list this morning and had about 10 different task areas that I can hand off, some ongoing and some one-time tasks.  It’s great to see that written down so I can decide what skills are needed and who can do what (instead of me).
• The Most Important Thing.  I’m a big fan of the square with urgent and important where the goal is to work most of the time on stuff that is important but not urgent, so that nothing makes its way through to the important AND urgent slot.
• Blocking Time.  I recently blocked off two full days for strategic planning.  It was very hard to free up that time, but the results have been spectacular so far (and make determining the Most Important Things much easier on a day to day basis).

None of these are rocket science, but I find that when I get busy or frazzled, going back to the basics makes a big difference.  It lets me focus and make sure the business is moving forward on a trajectory and that I’m not spinning in circles or just reacting to what comes up.  And for today, that’s my most important thing!

Best Practices, Business Growth, Focus

This is a Guest post from Paul Segreto – Franchisessentials, originally posted at http://franchisessentials.wordpress.com/2009/06/22/controlling-brand-trademark-within-social-media-what-to-do-if-franchisees-got-there-first/

I was recently asked to share my point of view on how a franchise brand can — or even should — wrest control of their brand on social media destinations when franchise holders have been early entrants.

Here are my initial thoughts:

As is typical in most franchise agreements, there’s most likely a clause regarding use of the brand name and trademark. It may need some interpretation to Web 2.0 usage, but there should be no problem applying the language in this regard. Also, online branding falls into marketing, and ultimately, advertising. I’m certain franchise agreements provide typical clauses that prohibit franchisees from utilizing non-authorized ads, etc.

All that being said, it’s always best to convince rather than demand. If the organization is large, it may be more effective to work through advertising cooperatives and franchisee advisory councils in pushing anything regarding social media. One strategy could see the franchisor contributing financially to a social media strategy. (Much cheaper than legal expense to enforce clauses in franchise agreement; not to mention “expense” of diminished morale) As incentive to initiate the same, franchisees would need to voluntarily relinquish their online identities so the parent company may establish one facebook page, one twitter id and one website.

I would recommend developing a template for franchisees to use that would piggyback off the national identity. For example, if corporate identity is Zippy Lube, the franchisee could use Zippy Lube NY or Zippy Lube NY 101 or Zippy Lube Jamaica NY and so on. Each franchisee could have their own web page linked to company website. It’s important to maintain uniformity and a sense of organization when attached to company brand or when linked together.

Please share your thoughts below. Thank you.

Best Practices, Communication, Franchise

For those who enjoy reading the franchisor spotlights, have a look at Franchisor Spotlight: Judy Brooks from Blow Dry Bar – Business Wisdom on The Next Women – a business magazine for female internet heroes. 

It’s an interview I did with Judy Brooks from the Blow Dry Bar, talking about how she has grown Blo and her personal learnings along the way as well as her advice for people considering franchising.

A short excerpt:

Growing her company has come from growing the brand and building a strong community, where customers know that they have something in common with the person sitting next to them, whether they ever speak together or not.  Her brand is built down to the smallest detail; calling new staff ‘hair cadets’, fit out details for the premises, playing on the name ‘Blo’ and teaching new staff to honour the fact that customers chose to spend their money with Blo.  Her staff tend to be young and very plugged in – Blo is active online with Facebook, Twitter, YouTube and online bookings.  Read More

The Next Women is also a great place to find articles about women in business and women involved with interesting technology – both start-ups and established companies.

Best Practices, Business Growth, Franchise, Franchisor Spotlight

Top Ten Tips to increase online community interactions

Have you set up an online community that isn’t getting the traffic you are looking for? Online communities can be set up very quickly based on a vision that seems compelling.

‘Build it and they will come’ is one of the most misleading phrases out there when it comes to creating an online community that takes on a life of its own and accomplishes the goals that caused it to be created.

Like any marketing tool, online communities can be hugely effective if you have value to offer that your potential community members also value, and if you are able to spread the word. But getting to the critical mass tipping point is not always simple. Many sites about online communities are full of suggestions about which tool or software package to use. Don’t get distracted. You can have the best software package in the world, but if you don’t get interaction happening, your online community will not grow.

People are swamped by online communities they can join. They may already belong to Facebook, Twitter, LinkedIn, Ning communities or other special groups. There are thousands of specialized communities they can pick from and join.

Open Box has developed a number of online communities, and works with customers to design, build and then draw traffic to their sites. Here are our top ten tips to help increase the interactions in your online community.

1.  Offer something that is of high value TO YOUR MEMBERS. It is very easy to offer something that you consider to be of high value – the most important thing is to know what your potential members see as being of high value – these two can be very different and you must know what they see as valuable. If you don’t know the answer to this, don’t read any further until you do – none of the following tips will help.
2.  Have a tightly targeted community – don’t try to be all things to all people – do one thing extremely well and have a simple message that tells people exactly what your community has to offer them
3.  Seed the community – get a core group of people who are both interesting and experts in the field who will start interesting conversations and get interesting posts going to kick-start the conversation
4.  Try arm twisting and bribery – the key goal is to get to critical mass – where you have enough members and conversation that when new people come they see the community as alive and interacting – then they will want to join and interact themselves. Find people you know who will comment on the early posts and/or start discussions – ideally people who also know each other will get the ball rolling
5.  Reward interactions – make sure that people who do post are getting replies and that a positive feedback loop is being established
6.  Quality not quantity – it will be of greater benefit to you to have three conversations going that are passionate and involved than 50 that each have one or two posts. Map out a strategy for those first conversations (be they in forums, articles, feedback forums or others) then implement
7.  Know what people are doing – use analytics tools to see where people are going, what they are doing, and especially where they are leaving the site. Where they are going means you have done something right – where they are leaving is a place that you may want to make some changes.
8.  Try rapid small changes and measure the effect – this tip ties in with #7 – make numerous small changes and always track the effects. If you add a new or bigger button, do you get more response? How about if you change the wording? One site we worked with was free, but simply adding ‘it’s all free’ above the ‘register’ button increased the number of sign-ups significantly.
9.  Find passionate people – people who are passionate about the subject of your community will make the best contributors. Find them through twitter, through their blogs, through other online conversations. Get in conversation with them and find out what might draw them to your community. These are the people who will post, reply, and tell others about this great new site they have found.
10.  Ask for help – people love to help, so posting questions asking for help / advice / input is a great way to get the conversation going, especially once you’ve found your passionate people in tip #9.

Non tip: Being controversial is often advised as a way to get people talking about you. If you try it and it works, let us know in the comments, and maybe it will be in the next top 10 list!

Best Practices, Communication, Tips

Online Coupons Bringing In New Customers

CBC had an interesting interview recently related to the recent increases in online coupon usage.  They’re in huge demand these days and websites like Red Hot Deals are doing a booming business.  Online coupons can be a great way to attract customers and bring new people in to your location.   People are looking for ways to save money these days, and many are open to trying new suppliers/companies if they can get lower prices.  Coupons can be a great way to entice new customers, and the cost can be extremely low (close to non-existant) if you use online coupons.

Using the internet to distribute online coupons for some retailers has led to a reduction in catalouge production/distribution, saving both the consumer & the supplier money, not to mention lowering environmental impact by reducing paper waste.

Statistics on Online Coupon Usage:

Many retail franchises have traditionally used coupons to bring in new clients, and according to a site called Prospectiv, “Tough times are seeing more people using coupons – 72% of consumers are using more coupons than they did six months ago and three quarters say the state of the economy is the reason for doing so”.  This is strong evidence that using online coupons to promote your product(s) or service(s) is a sound marketing strategy.  When times change and new trends on consumer spending practices surface, they often become the norm for the long term rather just surfacing as a “fad”.

Prospectiv also quotes the following survey stats from polling 1,386 consumers, (August 2008): 

• 80% said they would be very likely or likely to increase their use of coupons if they could be tailored to their interests and delivered online.

• 87% of shoppers said they would be more likely to shop at a retailer that offered coupons.

• And the good news for newspapers: 47% found print and online coupons equally convenient, while just 9% reported online coupons were most convenient.

An article on how to market your coupons can be found at TamingTheBeast.net, where ideas such as; raising standard prices; offering a coupon sign up registry on your site; submitting your coupons to online coupon sites & setting up an affiliate program are discussed.

Creating Your Own Online & Print Coupons:

Other options are to create your own coupon(s) using websites such as MerchantCircle.com (for a fee, their service is to assist you with online advertising), or CouponsReady.com  (design your own coupon for your business website, or print distribution).  Each charges a fee for their service, but make the process of online coupon creation a relatively simple process.  Even better, you can set coupons up for free using Google Coupons.

Get set up with Coupons in 10 minutes or Less With Google:

If you’re not already set up on Google Maps, do that first (5 minutes).  Then go to www.google.com/local/add to create an online coupon for your company.

Google Coupons

Best Practices, Business Growth, Communication, Franchise, Technology, Tips advertising, clients, consumers, creating, Design, distribute, economy, franchises, Google Coupons, Google Maps, ideas, marketing, new, offiliate, online coupons, polling, prices, print, product, promote, retailers, service, statistics, strategy, submitting, trends, usage