Archive for July, 2011

July Economic Insights

Written By Dr. David T. Flynn, July 27, 2011

In the new reality of business, it’s more important than ever that your banker be more than “just your banker.” That’s why, at Alerus Financial, we bring you news you can use. This monthly overview on economic indicators contains insightful information for business owners of all sizes. 

Download the PDF: July Economic Insights

Overall assessment: Over the last several months the U.S. economy acted like a car with its wheels stuck in the mud; the Federal Reserve is stepping on the gas, but the economy is not gaining any traction. That picture continues to be accurate with the current data releases. Whether we look at growth, unemployment or housing we see the same mediocre numbers. The equity markets delivered the same type of up-and-down mini-roller coaster, though clearly they are off their post-crisis levels. Political issues continue to disappoint with no resolution on the debt ceiling/budget deficit front. Demand remains weak, as indicated by the sales concerns of small businesses in the latest National Federation of Independent Business (NFIB) survey.

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Data and the related opinions have been compiled by Alerus Financial’s strategic information partner, Dr. David T. Flynn.

Dr. David T. FlynnDr. David T. Flynn is an Associate Professor of Economics and Director of the Bureau of Business & Economic Research at the College of Business & Public Administration, University of North Dakota. Dr. Flynn has developed forecast models for personal income and employment in North Dakota, and analyzed small business location patterns for the top 200 cities in North Dakota. His commentary on the North Dakota economy has appeared in print and online publications such as BusinessWeek, NewsWeek, American Banker, the Financial Times, the Wall Street Journal, and in newspaper and magazines from the United States, Brazil and Finland. Dr. Flynn is a member of the International Institute of Forecasters, the National Association for Business Economics, and many other professional organizations.

 

SBA’s July Web Chat Offers Tips and Advice on Growing a Home-Based Business

Written By SBA, July 20, 2011

Join Boyd Wright from Wright Made Products for SBA’s July web chat!

What do Apple Computer, Hershey’s, Mary Kay Cosmetics, and the Ford Motor Company have in common? These well-known corporations all started out as home-based businesses. In fact, more than half of all U.S. businesses are based out of an owner’s home. Starting a home-based business has many rewards as well as challenges. Join chat host Boyd Wright to learn what it takes to grow a successful home-based business.

WHO:  Home-based business champion and small business owner Boyd Wright will host the July Web chat on “Growing a Home-Based Business: What You Need to Know.” Chat participants can get valuable insight from Wright and learn more about working out of your house, starting a home-based business and managing the business within the law. Wright will answer questions on how to grow a home-based business, the benefits and the challenges.

WHAT:  SBA’s web chat series provides small business owners with an opportunity to discuss relevant business issues online with experts, industry leaders and successful entrepreneurs. Chat participants have direct, real-time access to the web chats via questions they submit online in advance, and during the live session. Chat participants can receive helpful tips and advice on how to grow their businesses.

WHEN: July 28, 2011, 1 p.m. ET
Wright will answer questions for one hour.

HOW: Web chat participants can post questions online in advance and on July 28, join the live web chat by going online to www.sba.gov, and click on the web chat event under What’s New.

To review archives of past web chats, visit online at http://www.sba.gov/tools/monthlywebchat/index.html

 

Check out the web chat and then comment to tell us what you’ve learned!

 

Re-energizing the Struggling Employee

Written By John Trombley, July 18, 2011

Seven steps you can use to get things going in the right direction again

As managers and supervisors, we are sometimes faced with significant performance issues from employees who have been strong performers in the past. We know they can do the work, but they seem to have lost their confidence and sense of competence. What can we do to bring them back to an acceptable level of performance?

The first thing I recommend is to find out what is going on in this employee’s life, both inside or outside of work, that has resulted in a sudden decline in performance. First, let’s list the observable facts:

  1. Documented, recent poor performance
  2. Usually a capable, strong performer

Second, the assumptions (and these are assumptions unless the employee has stated otherwise):

  1. Loss of confidence
  2. The employee doubts his or her ability to perform the job to meet stated expectations

Job performance matters, and a multitude of factors influence performance, not the least of which often occurs outside the workplace. While as a supervisor you may have no control or influence over those things, knowledge provides context for your understanding and ultimately the type of help you may be able to offer. Stephen R. Covey’s Fifth Habit, “seek first to understand…” (from his book “The 7 Habits of Highly Effective People®) has a very definite application in your situation.

I believe open and honest communication is the place to start. This  can be very threatening to an employee who has recently been chastised for poor performance, or worse yet, who feels that you are looking for an excuse to pry into his/her life. Still, you have to try to open the door for this person to talk about what he/she sees as the reason(s) for the change in his/her behavior and/or attitude. Think of this as a coaching opportunity while keeping in mind that coaches coach for the purpose of improving performance, not to control or intimidate. 

According to the facts above, it seems that you have a star performer who has lost an edge. In the parlance of “The Manager’s Coaching Handbook” by David Cottrell, let’s call them a Middle Star in need of attention.

Here are seven steps you can use to get things going in the right direction again:

  1. Build their confidence by increasing responsibility. Help them discover their hidden talents one step at a time, building one success upon an increasingly bigger step.
  2. Give them feedback. Make it timely and specific. James A. Autry once said, “No one ever did a worse job for having too much information.” Feedback helps Middle Stars understand what it takes to be a Super Star.
  3. Create a resource library. Leaders are readers. Encourage learning in your organization by creating a library filled with books and CDs that help folks become better at what they do.
  4. Teach them how to set goals. Goals should be SMART: Specific, Measureable, Attainable, Realistic, and Time-bound.
  5. Praise them when you see them doing something good. It goes along with the Law of Reciprocity: the more you give, the more you get. Accentuating the positive has a way of eliminating the negative. One candle lit in a dark room lights the whole room.
  6. Provide them with a Super Star mentor. It’s good for both of them AND the rest of the team. All of us can benefit from having a mentor.
  7. Choose rewards matched to those who receive them. Ask people how they wish to be rewarded. Some may choose time off or a cash bonus; others would prefer something they can touch and that serves to remind them of their accomplishment, like a plaque. Many people like to be rewarded in front of their peers, but be sensitive; some folks just want to hear you say, “Great job!”

 

John Trombley is a consultant and trainer with The Village Business Institute. He holds a bachelor’s degree in psychology from the University of Alaska, Anchorage, and a Master of Management degree from the University of Mary, Fargo, North Dakota. Prior to founding his own organizational development company, John served as a pilot, staff officer and commander in the USAF and Air National Guard. He retired as a Lieutenant Colonel with more than 6,200 flying hours. With 12 years of experience in providing training programs and workshops, he comes to VBI with a passionate focus for providing relationship management skills training, leadership development training, leadership transition processes, MBTI© personality assessment workshops, corporate training and group facilitation. John is also a trained Qualified Neutral mediator.

 

The 11 “Musts” of Direct Mail

Written By Andrea Morrow, July 9, 2011

directmailYou have a new product to promote, an event to announce, and the sales team needs leads…any of these sound familiar? Your next step may be to turn to marketing for the infamous magic bullet to solve all your problems. You’re in a scramble: you just need to get something out to get results. We’ve all been there.

Before we turn to mail – and specifically DIRECT mail – we first need to ask three simple questions:

  • Is the mailing targeted?
  • Is there a call to action?
  • Can responses be measured?

If you answered “yes” to all three questions, then (and only then) do we plug ahead with the direct mail piece, always keeping in mind these 11 “musts” of direct mail.

1.       Determine the objective of the mailer and critical success factors before it goes out.

Why are we sending this communication? Is it to generate leads, drive traffic to a branch or store, increase sales of a product line? The objective should be very clear. This will shape the critical success factors (CSFs). How will we know if “it worked”? I love the line “direct mail never really worked, so we don’t do it.” What will make us stand up and shout, “This direct mail was a success!”? Are we counting the number of leads/responses we get (lead response rate), traffic by way of coupon/offer redemption (make sure your operations team [staffing for data entry, phone support, offices, etc.] is equipped to report back redemption of the coupon/offer), sales figures of the featured product within a specified timeframe (this is less accurate since it cannot be directly tied to the direct mail piece specifically), or cost per sale (CPS) or cost per lead (CPL) measurements?

2.       Have a call to action (CTA).

Duh, right?! What do you want me to do once I get your mailer? I once received a B2B postcard with the message “Introducing the Xerox iGen3™” and a list of features on the back. It also listed a phone number and web address. So…WHY would I call or visit your website? The CTA is directly tied to the offer. Make it clear what you want people to do and why they should do it. For the B2B postcard example, “Get 20% off your next personalized print order using the iGen3™. Call 888-xxx-xxxx or visit www.urlhere.com” would have made the communication much more effective.

3.       Give your audience multiple channels to respond.

Some people prefer to talk; others prefer to use mail or go online. If possible, don’t pigeonhole your audience into being able to respond only one way. Give the option to call, go online, visit your office or branch, or to mail (via business reply card, if applicable). Giving multiple options will boost your overall response rate. You’ll also be able to trend response rates by channel to give operations estimates to help with work flow and fulfillment.

4.       Rule of three.

It takes at least three “touches” to get noticed. Develop a series of communication efforts that build upon each other. Your communication can be repetitive. We want your prospects and customers to recognize each piece as something they may have seen before. Don’t be too quick to write off your success on only one direct mail piece. Send another piece as a follow-up (tweak it if you need to), and trend the response of each effort in your series.

5.       Implement an A/B test for every mailing. But, test only one variable.

Before you take all 5,000 names on your list and send out the same old postcard, always test something as a way to continually improve your response rates. That’s where the “A/B” comes in. Take half of your list (2,500 in this example) and code those “A”. The other half is coded “B”. If you have a control (a mail piece you’ve used over and over or one that has performed well), start there. Your control group (the “A” group of records) will get that piece. Now you can make tweaks to fine-tune your control. This is your “test.” There are several variables you can test. However, don’t throw in too many variables; it will make it impossible to determine what variable may have increased or decreased the performance (response rate, sales, etc.) of your mailer. Start with your control and test any of the following (you may be surprised at just how wildly different your response may be by only changing the predominant color of a mailer from blue to red):

  1. Creative/Design: color, images, call outs, font choice
  2. Offer: discounts, free items, or wording of the offer “half off” or “buy one get one free”
  3. Copy: headlines, sub-headlines, or entire copy focus (emotional versus fact)
  4. Format: letters, self-mailers, die-cut, postcards, window envelope versus no window
  5. Timing: time of month to drop communication or the number of efforts/communication pieces mailed
  6. List: for prospect mailers, purchase from two sources and test the response rate from each

6.       Copy is king.

Your designer may cringe, but in the world of direct mail, the copy takes center stage. Writing and designing for brand and awareness communication are completely different than copy and design for direct mail. Copy shouldn’t be overly flowery or clever; rather, it should be to the point. When writing, be sensitive to the use of “we” and think about re-phrasing into “you” sentence structure. This will help emphasize the benefits for the recipient versus touting what you (as a business) can do or offer. Use short snippets of copy rather than run-on sentences.  Write around the offer and call to action.

7.       Talk to your customers differently than your prospects.

There’s nothing worse than getting communication from a company or organization that makes you think, “don’t these people realize that I’m already a customer of theirs??!” Make sure you create a copy version that speaks to your customers versus how you would speak to prospects. Simple copy statements like, “As a valued customer…” or “As a member, you already enjoy…” can reinforce that you know your customers.

8.       Personalize.

This is extremely important when you are communicating to your customers and those individuals for whom you have information beyond name and address. When you don’t have more than a name and address (if you’ve rented a list, this may be all the information you have), try creating a campaign with a database-building component. You can use the information you collect on your next (personalized) campaign. Personalized campaigns incorporate the data collected (for example, birth date, gender, previous purchases, life events, etc.) to make the communication more relevant. A “personalized” campaign or communication is NOT just simply using only the person’s name or slapping a personalized URL (PURL) on a mail piece. A PURL is used to make the online experience just as personalized and relevant as the printed piece. Personalized campaigns have also proven to generate higher than average response rates across all industries.

9.       Clean your list(s).

It’s tempting (mainly because there is little effort involved) to just export your customers and prospects from the beginning of time for your next direct mail piece, but that could be worse than not mailing at all. Your list finally reached quadruple digits, so you should be getting more leads and more sales from your mailing efforts, right? Wrong. Your list has been growing for more than five years. People move (NCOA-National Change of Address), register on the do not mail/do not call lists (DNC/DNM), and pass away (Deceased file). Some are even committed to prison (Prison file).  Use the lists just mentioned to suppress against your customer list and/or rented list. Quantity of records is not as important as the quality of records. You not only waste the printing cost, but also the postage cost if you mail with a “dirty” list.

10.   Make it measurable.

How will you undoubtedly KNOW if your mailing efforts “worked”? Besides a gut feeling that the phone rang more, you had more traffic to your store, or had a spike in sales, how do you really know that it was due to your mail piece? Next time use a vanity URL (www. companypromohere.com), a specific 800 number, and/or a coupon code to track the activity directly from your direct mail efforts. By tracking the response from all response channels, you’ll be able to calculate the response rate, cost per lead, and cost per sale.

11.   When necessary, call in the experts.

When in doubt, call in the experts. If you’re not sure where to start on your direct mail efforts, need a nudge in the right direction, or are looking for reassurance that you are indeed on the right track, there are a number of blogs dedicated to direct mail. Check out Direct Creative Blog and TMR Direct. And of course, our team at Flint Communications would welcome the opportunity to help you.

By following these 11 “musts”, you’ll soon be on your way to direct mail success. Good luck!

Andrea Morrow is the Direct Marketing Strategist for Flint Communications. Flint Communications is a full service marketing communications firm dedicated to building brands, business and relationships.