Community Connected Commerce

[Patrysha]

Grab a coffee (or your favorite beverage) and sit back...this is likely to be long...

First of all, yes, I know it's a cheesy name. I seem to be unable to resist alliteration. It was originally the 4E3C Simple Math Marketing Plan. There's a whole story behind that, but I cut it...because while it may seem interesting to me, I don't think it would've done much for my target market.

So what is this plan?

Well it's a marketing program that is aimed at small towns (I know it works in small towns...it hasn't been tested in other environments)

In any case...it revolves around a joint loyalty card that is sold by a non-profit group and sponsored by at least 50 businesses. The cards are good for one year and in addition to cardholder discounts the cards qualify the holders to entries in four prize draws throughout the year.

In return for the participation, monthly marketing investment and discount offer to cardholders, merchants are included in an online and in-store promotion that includes a full tab on a joint website, inclusion in weekly emails and in-store promotional materials. Plus, presence at at least the four draw events.

With the charity tie in and so many businesses involved all tied in with an overall shop local publicity campaign to tie it all together...it's really powerful.

And I can say that because I did it once already. Well mostly...my summer promotion didn't include the charity tie-in...but it did have the prizes :-) And I only had 24 businesses involved and they didn't (for the most part) have any special discounts for cardholders...

I learned a lot from it and that's why I am confident taking it to the next phase.

As soon as I get my marketing pieces in place.

The hard part, from where I am sitting, is that many in my target market are not online. At least not at the local small business owner level that I would need to be to sell it well. But the non-profits are...and so are lots of online/offline consultants.

Ideally, I'd think joint venturing with people who are already doing offline work with clients would be the best way to go. All I really want to do is the publicity & media relations and brainstorming with clients.

I can provide web development, writing, database management, advertising writing and booking, printing and all that jazz too

I did all that here but it was more out of necessity in that I did not charge enough for all the work involved and I had to be juggling individual client work as well as the local promotion - it seems like poor planning until you realize I expected 1000 customers to participate...not the over 3400 that did! And I did not figure out the automation part until the promotion was over...I had put this all together in three weeks.

Now the thing is, I am still not quite sure whether to turn all of this information into an info-product or sell this as a full service marketing plan. If I go full service, I'll have to outsource, with an info product there'd be a lot less outsourcing and a lot less work for me overall, but I'd lose control...and that scares me because I don't want this to be done poorly.

While I'm deciding exactly which way I am going to go, I have been contacting different resources to see if there might be a market for it (outside of my local community). That's about the only marketing I've done so far. I created a case study and an outline and sent it to a couple of leads...

I sense that the market is huge, but I also know how closed off some small towns can be when it comes to new ideas. Of course, if it comes from somebody who is already established in the community then it's a lot easier :-) But I haven't found anyone who is really interested in taking it on where they are yet...so I might have to just reach out and do it myself...which I wouldn't mind but would be an awful lot more work...

Not that I'm lazy...but you know if I can do less work...

In any case, I put this here because I am going to need some help deciding which way to go...and because having posted it gives me a little bit of accountability - I've been running on my own power since mid-June when I came up with the idea and it's getting tough to remain upbeat and certain all the time...

[Patrysha]

Steps I took today...

Contacted a journalist on a lead that looked like a good fit

Formulated half a response to one of my potential joint venture leads...they liked the case study and outline...have to figure out where I want to go with this contact next...ack!

Spent a bit of time tooling with article ideas but nothing to show for it really than lots of random thoughts...

Busy day with other business (2 consultations- 1 converted and invoiced, plus actual work (brochures for two clients, membership form for one of them. And I likely spent too much time tweeting...

[Lynn Terry]

Hi Patrysha,

I just found this thread buried in a sub-forum - my apologies for not catching it earlier. I moved it into the Private Brainstorming Forum where we can brainstorm it more.

I would really love to hear Traci and Tina's input on this as they both work in local markets and may be able to share some ideas or resources with you.

How did your teleseminar go this week?

[Gord Young]

This is a very interesting topic to me as I am involved with a similar business structure.

Patrysha is on Twitter http://twitter.com/patrysha

I started getting involved with local businesses through selling listings for
a local directory. But that's a whole other story.

I did come across a business called Get With the Program http://www.getwiththeprogram.ca/

This offers an annual membership card that is sold through any charity
that wants to sell it.

The businesses listed agree to offer discounts to card holders.
The charities keep $5 of a $10 sale. (better than chocolate bars)

I know that networking locally can lead to many opportunities and social
media can be a great boon for charities and events.

It is interesting to observe new businesses, who have heard that they need
to get involved with social media and have an online presence, but don't have a clue how it works.

I was blown away with Patrysha's comment about getting 3400 customers...
would like to hear more about that.

I'm hoping we can continue with this discussion.

I have been experimenting with networking locally through Twitter. There is
certainly a huge market of small biz needing help to get online but that don't
have huge ad budgets or time to spend.

[Gord Young]

Oh! You've already taken care of it. There's a surprise. :rolleyes:

[Lynn Terry]

Yup Yup - thread moved and Patrysha's on her way ;)

[Gord Young]

So what is this plan?

Well it's a marketing program that is aimed at small towns (I know it works in small towns...it hasn't been tested in other environments)

In any case...it revolves around a joint loyalty card that is sold by a non-profit group and sponsored by at least 50 businesses. The cards are good for one year and in addition to cardholder discounts the cards qualify the holders to entries in four prize draws throughout the year.

In return for the participation, monthly marketing investment and discount offer to cardholders, merchants are included in an online and in-store promotion that includes a full tab on a joint website, inclusion in weekly emails and in-store promotional materials. Plus, presence at at least the four draw events.

With the charity tie in and so many businesses involved all tied in with an overall shop local publicity campaign to tie it all together...it's really powerful.

And I can say that because I did it once already. Well mostly...my summer promotion didn't include the charity tie-in...but it did have the prizes :-) And
I only had 24 businesses involved and they didn't (for the most part) have any special discounts for cardholders...

I learned a lot from it and that's why I am confident taking it to the next phase.

As soon as I get my marketing pieces in place.



How small is a small town?
When you are talking about very small you are talking about a market where
everyone knows everyone else by their first name and the name of their kids.
Often the loyalties are long established and not much advertising is required
by the biz owner.

What you are describing sounds more like a promotion than a business model
in that case.

The idea of a membership, loyalty, discount card is not new and has been
tried many times many ways. One problem is often trying to be all things to
all types of businesses.

There are many examples of successful models. For example the Student Card.

I think I'll stop there for now. Just trying to stir the discussion again.

[Patrysha]

Yup, yup I am here :-)

I didn't know whether to laugh or cry or run in the other direction when I saw the Get with the Program Site. I never heard of it before and it is very similar to the programs I want to develop. But hey! It's proof I'm not totally insane.

As for getting 3400 customers...that blew me away too!! I expected 1000. 10% of our local population. That is what my research seemed to indicate would be an average result and based on what I'd observed with contests and the like in town over the past couple of year I thought that would be pushing it - especially in the summertime because it is so slow and quiet in town over the summer months. Evidently some of the things incorporated into the promotion made it more popular than I'd anticipated.

Really though, it's not just about the big promotions (though they are easiest to get publicity for). Even a few businesses banding together for a promotion with a common, cooperative theme can stretch their budgets and reach more people than going it alone.

Anyway, over the past few weeks I've created what I think is a good funnel to lead towards getting these ideas out there.

The teleseminar was part of it. It only had 6 sign ups and only one of them made the call. I just don't appear to have enough reach and visibility in the wider marketplace yet. (I have a tendency to come up with ideas and implement them too fast...)

I am in the midst of turning that into a product though. I know the information was solid and works...not thoroughly impressed with the delivery, but think with the transcripts and workbook that it will flesh out and maybe down the road I can re-do it with a new call.

Localizing twitter hasn't worked well here...not enough ppl on board here and those that are tend to be from high school...though there is a local band on there now and I often found bands playing at the Casino through there. I only found two active adults on there that I've connected with...one of them moved away though. I am using it a lot to grow my network in the city (Edmonton) though.

[Lynn Terry]

About the teleseminar - you charged a fee for that, right? You might try doing a free teleseminar to use as a lead generator in the future and see if that gets you more sign-ups. It could work out very well with a strong follow-up system in place.

[Patrysha]

How small is a small town?
When you are talking about very small you are talking about a market where
everyone knows everyone else by their first name and the name of their kids.
Often the loyalties are long established and not much advertising is required
by the biz owner.

Well our town is just under 10,000. I have lived in places small enough that yeah it would be a total no-go. (Though I see those sorts of communities coming into programs in their hub community - because when a town is that small there are often only the most basic of services and maybe a store or two so they all are going to go to a hub community nearby or head to the nearest city.

For the record, even in towns of 500 not everyone knows everyone else.

Here we have the challenge of a transient population that has no ties to the community and no incentive to shop local. While we have founding families that have been here since the beginning, they are no more loyal to the business owners here than anyone else and can be found jumping in their vehicles to head to the city as quickly as anyone else.

Example: When I first moved here, my boys went over across the street and met the boys there. Their mom had friends over and invited me and over coffee and getting to know each other I asked "Where do I buy decent clothes for work?" (I originally came here and had a job in radio sales) "Oh there is nothing in town! You have to go to the city to buy anything for yourself or the kids"

There are people who have been living in this town for years who do not know what is available in this town at all. Some are stunned to discover we have a mall. (Okay so it's small and old, but it is there!)

And some of the kids from the founding families are the first to head to the big city ("eewww it's so boring here...there's nothing to do...")

So, I believe the thought that loyalties are long established in a small town is a fallacy. Advertising may not be required, but marketing is. Competition as locally owned business owners is fierce...here the city is an hour and a half away and online shopping is becoming more commonplace every day.


What you are describing sounds more like a promotion than a business model in that case.

Yeah, that's the idea - developing and managing simple campaigns (for the consumers and merchants...not so simple in everything they encompass).


The idea of a membership, loyalty, discount card is not new and has been
tried many times many ways. One problem is often trying to be all things to all types of businesses.

There are many examples of successful models. For example the Student Card.

Of course it's not new. There is nothing new under the sun, after all. And why would I want to start with something all new when all that is required is putting a new spin on things that are already proven. You know, build a better mousetrap? Because most of the ones that I have encountered don't incorporate all the marketing and publicity strategies that go behind these ones...combining web, radio, print, in-store promotions, publicity etc and few of them target the small locally owned merchants who don't have the marketing budgets to do incorporate these things on their own and don't have the time to do it on their own.

The hairdresser, the plumber, the cozy restaurant and pub, the caterer, the florist...you know the people in your neighborhood :-) (Yes, I based some of this concept on what I learned on Sesame Street :-))

For example, there is one clothing store here who has an internal customer loyalty card program. They do not email, the do not direct email, they do not make phone calls, they do not have a website. Customers get points with purchase towards discounts and that's about it.

So basically the owner is paying for the software (no open source freeware or shareware) and brochures (there are no cards involved in this particular system) but isn't getting the potential marketing power of it...it's not included in the package.

So how is a business owner in a small town supposed to know how to use all these strategies or find the time to do it? Despite all the hype of working on your business and not in your business, that just doesn't seem to translate to most small business owners.

[Patrysha]

About the teleseminar - you charged a fee for that, right? You might try doing a free teleseminar to use as a lead generator in the future and see if that gets you more sign-ups. It could work out very well with a strong follow-up system in place.

Yes, I did. It was a strategy that worked well for me with another project last year (though ultimately that project fizzled...I used it as a template for pulling this one out because it wasn't the system that led to the fizzle last time but me)

I will be trying to see if the response is better to a free one (just brainstorming for related topics on that one).

I am working on a local joint venture project on a smaller scale with a few of my current clients to run from just past Christmas until the end of January. I think I'm seeing a pattern in that I really get jazzed about doing things in slower times...

[TraciKnoppe]

Hi Patrysha - I have a good friend who is doing something very similar to what you've described here in offline markets. Although his model is a bit different, there are many similarities and geared toward local, offline communities. He's given me license rights to his model - but due to time constraints on my end (I seriously need to stop sleeping a FULL 8 hours EVERY nite :p ), but I believe the model to be a good one.

I believe our goal as social media savvy entrepreneurs, is to approach offline small business owners and help them see the benefit of having an online presence. In my case, I offer social media management packages to business owners where I handle it all for them. ;) I know Tina Williams does this as well.

Businesses know they should be online, but they don't have a clue as to how to go about managing it all. It's folks like us, who can help them come up with a marketing plan and actually help them implement the plan.

Offline small business owners is a HUGE untapped market. To be successful in this market, you need to develop your plan of approach, systemize your methods and decide what services you will offer and then either offer consulting services and/or provide the full services to manage it all for them.

[TraciKnoppe]

One more thing... if you're targeting offline businesses, trying to do online promo events generally are not as successful. These folks need to see you face-to-face in real life. It's all about hitting the streets and meeting them where they are. If they aren't already online, you have to win them over in person.

This is why I have offline conferences in local communities to meet with business owners. Try contacting local area Chambers of Commerce - another great way to contact multiple businesses at once.

[Patrysha]

I started working for offline business owners in 2003. I did quite well on the local level for 2 years, then we moved.

The year after was a complete disaster on the personal level (was inches away from separating from hubby) and I just wasn't finding my groove in business with all the insanity going on.

We pulled it together and went into counseling and all that jazz and it was basically put out there that it was time for me to get a "real" job. So when we moved again at the end of that year...I got the radio station gig. I held on for two years before I bailed on that and got started back in the publicity/offline marketing type things again.

I am reaching out to area Chambers (I was on the board of our local Chamber as a director last year) and am actually booked for a presentation next month in a town an hour away. I'd love to book more of those (only had about 3 speaking engagements in 2009 that I didn't create myself) and am working towards that.

I know that reaching small businesses online is nearly impossible...at least the ones I really, really want to reach and my efforts in that are just a portion of what I've been working on...might as well make use of all the time that I spend on the computer :-)

[Gord Young]

Here's a great interview by Willie Crawford talking to Andy LaPointe about
his book "The New Offfline Consultant"

It's not targeted to local biz necessarily but there is lots of noteworthy content and tips.

He starts with;
Small biz owners want 3 things.

Retain existing customers.

Attract new customers.

Increase profits.

Worth a listen when you have time. Here (http://goldclub24.posterous.com/the-new-offline-consultant)

[Patrysha]

Very similar to the lines in my book :-)

http://pkmarketingsolutions.com/profitmarketing.pdf

I created and had the book printed for the local trade show earlier this year as my giveaway at the joint venture booth I put together with five other business owners in town.

[Patrysha]

Just a quick update. I met with a potential client yesterday and delivered the proposal today. I am crossing my fingers as all indications are that the funding is in place (subject to budgeting issues) and they want to move forward quickly.

I am praying that this is my Christmas Miracle and that I have the first CCC program up and running within early 2010.

Oh I was also booked for a luncheon presentation and a workshop for a town about an hour down the road.

[Gord Young]

Patrysha,

That's quite an impressive list of accomplishments. You are obviously an action
taker and your love of clever marketing strategies and promotion is apparent.

Their are plenty of people online who would not be willing to go out and do
the face to face selling and meeting with clients. This, in my opinion, is a very
important aspect to consider if you want to work with local merchants. If you
can do this you are ahead of most who will not.

You would be a valuable asset to any company either as a consultant or employee.

Good luck with the new client.

[Gord Young]

The author of this is anonymous but I think it sounds like a quote from
one of the greatest promoters ever....P.T. Barnum

“If you paint a sign that says, ‘The circus is coming to town Saturday,’ that’s advertising. If you put the sign on the back of an elephant and walk him through town, that's a promotion. If the elephant walks through the mayor’s flowerbed, that’s publicity. If you get the mayor to laugh about it, that’s public relations. And if you planned the whole thing, that’s marketing.”

I like the updated version I found, which includes, “If you make the elephant run through the mayor’s flower bed, that’s guerrilla marketing. If you run a contest and ask everyone to create their own videos about circus animals running amok, that’s user generated content. If they post their videos and forward them to their friends, that’s viral marketing.”

Have you updated your marketing programs? Are you still satisfied to just let the elephant walk through the flowerbed, or are you going after user-generated content? Still just painting signs, or are you doing something viral?
SOURCE (http://allyouneedisagoodidea.typepad.com/all_you_need_is_a_good_id/2009/08/so-an-elephant-walks-through-a-flowerbed.html)

[Patrysha]

You would be a valuable asset to any company either as a consultant or employee.

Good luck with the new client.

Noooooooo....not an employee.....

I tried the employee thing with radio. After 10 years at home it seemed like the right thing to do.

It did not work well. I did top the sales for the station all but one month during my time there, but there were two major problems.

#1. The station thought I worked for them. My take was that I represented them, but the clients were my employers. Being on straight commission it was the clients who paid my wages...

So the manager would ask why I hadn't sold such and such client on the list and I'd be thinking "Uh cuz it doesn't fit their marketing plan, target audience or budget dimwit!" - though I never said it out loud.

It caused me a lot of stress to be working for a sportscaster who had no knowledge of marketing beyond what the radio station offered in training (which was good training but very basic.)

The beginning of the end was at my first year review. The areas I had to improve on "You research too much" and "You're too citified in your approach"

Evidently research is something you do just enough of to sell to the client, not deep enough to actually offer them value for what they buy. Being too citified in a small town...why bother with market analysis and proposals when you can just baffle them with BS, I guess...it's not like their competition is GLOBAL with the 'net or just an hour away in the CITY or anything...

#2 Monetizing the station's assets wasn't their goal...selling radio was their only purpose. Sitting on a $9000 a month database/website system without working to turn it into another profit center just about drove me out of my mind. Oh I tried! But was told more than once that I was hired to sell, not to worry about these things...so all my suggestions landed on deaf ears.

I tried to help the promotions girl with improving the copy of the newsletters to the loyal listener club one day and was reemed out for doing so..."That's her job and yours is to be out of the office in front of the clients"...yah, cuz the quality of what I'm selling (which to my mind included the emails sent out on behalf of my clients) has no bearing on my ability to sell it, right??

Yeah, I have a bit an attitude (internally at least)...so not a good employee.

[michaelhartzell]

Patrysha,

What you are trying to do has not only merit but has served many with more than an income. Been doing similar programs for 20 years (each with new twist) and pre-computers. (sign of age?) :)

I am going to dig into my brain a bit and share.

Simplicity is key for the organization. (with multiple people and businesses involved)
I had best success by focusing on the greatest need. (organizations doing fundraising)
-- Boy Scouts are having their 100 Year Anniversary next year.
-- Churches
-- Libraries
-- PTA / PTO
-- Booster Clubs
-- Parks and Rec Departments.

Thus when the program was introduced to these organizations, they would provide the legs, emails, phone calls, etc. (they provided the guerrilla squad to make the invitations and get into the community to "sell")

A person / company such as yours provided the tools, marketing, cards, etc.
Me? I provided the stuff, the services the wares.
The program can work whether it be 1 company on the card or 40. It does change the price point of course.

By creating a platform where people in need are given a tool / opportunity for helping themselves with a part time, temporary gig..... it is a great thing.

Non profit / fundraiser list for each town.
Introduce the program. (which includes? card? Calendar? Booklet? One page on web? more?)
Provide cards / etc. to organization up front with no money down (need agreement though)
Offer assistance to contact local businesses with them for commitments to support.
Businesses pay up front
The organization shares in the proceeds
Monetization for you comes from both.
Offer prizes, motivators, etc. for the "top sellers"
The organization is the "customer". Their success is imperative. Greasing the wheel for them the key.

I remember one year sending out 50 envelopes per week with a proposed plan. Had to pull back because too many wanted to do it. Had too many people "selling cards". So learned to limit the "discount cards" to geography and / or calendar months.

Notes I remember
Get a commitment that does not go beyond 45 to 60 days. (the organizaions lose steam quickly)
Be involved weekly with enthusiasm and cheer-leading.
Be sure to understand the heirarchy or the organization. (too many have 5 people doing the work of the 200 members... sad)

These are a few notes from the past 20 years and certainly just a tidbit. Of course as technology has improved, so has the ability to be online with emails, etc.

Once the Purpose / Cause is in place, emotion and passion pile into it, people are moved and there has much good from programs you want to delve into. (and profits)

I encourage you to keep going though it does take an organizer to connect everyone together to a common center and execute. (Once you have a few successes and testimonials, the 2nd year goes great)

Just a thought.

I have just posted the new marketing calendars for offline businesses (or online I suppose). They are meant to be printed large and posted on wall as tool. This is a back door link around the opt in. 2010 Marketing Calendar Planning Spreadsheets (http://www.michaelhartzell.com/library/restaurant-forms-spreadsheets/marketing-planning-spreadsheets-/)

PS
I use Sales Genie or America Clearing House. Read more at Restaurant Marketing Idea (http://www.michaelhartzell.com/restaurant-marketing-ideas-blog/bid/30266/Great-Restaurant-Marketing-Idea-211-Stop-Advertising-Use-Technology).

This may or may not fit in your planning. Just sharing what has worked for my businesses in the past.

8 Days until Christmas.
In the meantime Guerrilla Marketing (http://www.michaelhartzell.com/Blog/bid/32385/Guerrilla-Marketing-Meet-My-Family-Dancing) via the Santa Dance. :)

[Patrysha]

Thanks for the links and the advice.

I've been going at it from the business angle, but...I do have notes about advancing through the non-profit groups - I just haven't done anything with it yet. Haven't really had the time to pursue it, but it was on the schedule for early next year. I kind of think Chambers of Commerce are the most appropriate non-profit to start with though.

[michaelhartzell]

Patrysha

Superb! Chamber is a must. Excellent.
Found it so much easier to "get the sale" and participation from businesses with much less work when the purpose was defined up front. (and the groups did a big part of the work)

You have so many notes, no surprise that you are on top of the options.
(I do love the small towns so much though. Connection, Collaboration and Communication is so much easier as friends connect and help friends.)

Need a hand. Feel free to call on me. You're on the right track and ready to roll.