Getting The Most Out Of Focus Groups

Large organizations, including corporations, academic institutions, and government agencies, have recruited focus groups for decades to help them gain insight into the wants, needs, and behaviour of the public. For businesses, it’s useful to ascertain what current and potential customers and clients are looking for, and the focus group can be a cost-effective and highly revelatory source of information.

Consider the following points when you’re planning to recruit focus groups, so that you can separate the signal from the noise and ultimately derive useful data from the sessions.

The overall composition of the groups should accurately reflect your target demographic.

While this principle seems like common sense, its importance is difficult to overstate. A series of focus groups whose composition substantially differs from that of the target demographic won’t necessarily yield helpful data.

What age are your prospective clients or customers? Gender? Marital circumstances? Ethnicity, or mix of ethnicities? What language(s) do they speak? Where and in what circumstances do they live?

The better you can form a mental picture of your customer/client base before you begin recruitment, the more informative your focus group sessions are likely to be.

Stay on track.

One the of purposes of a focus group is to enable participants to share their own thoughts and feelings in an open, accepting environment, and in relative spontaneity. But whenever you gather strangers or acquaintances together and encourage them to converse spontaneously, the discussion is likely to wander off topic. This is where the skill set of a competent moderator becomes essential.

Attributes you should look for in a moderator include patience, firmness, articulacy, strong organization skills, the ability to appear neutral and impartial over the course of the discussion, and ideally some credible previous experience in the field. A moderator will also occasionally need to call on participants who haven’t said anything in a while, to encourage their input.

Would Goldilocks approve of the size of your group?

A focus group that is too small will tend to be stilted and fail to generate rich discussion. On the other hand, when the group is overly large, it will tend to segment into several smaller cliques, or a core group will form that excludes participants on the periphery.

Ideally, the scale of your group should be six to 10—not too big, not too small, but just the right size to facilitate an inclusive, respectful, productive exchange of ideas.

Ask the right questions.

To design effective questions for a focus group, you must begin by posing one to yourself: What exactly do you want to know? Until you can narrow down what you’re looking for, you’ll find it difficult to design questions that are specific enough to meet your needs.

You’ll also want to limit the number of questions to a manageable level. A good rule of thumb is that the number of questions (except for clarifying queries that the moderator may inject once in a while) should be roughly equal to the number of participants.

One of the main advantages of a focus group over a survey is the opportunity for participants to modify their views during the discussion. It’s common for a focus group participant to end the session with an opinion significantly different from the one s/he started with.

Conduct at least three or four unique group sessions.

This is likely the minimum you’ll require in order to generate valid, applicable results.

Each session should last anywhere from 45 to 90 minutes. Beyond that point, group productivity tends to stall, and you’ll probably have covered all of your questions anyway.

You’ll know when you’ve reached the “saturation point”.

When new focus group sessions aren’t generating many new ideas, you’ve probably retrieved about as much data as you can reasonably expect from the focus group endeavour. It’s time to wrap up and analyze what you’ve collected.

Marketing to Customers’ Emotions

Consider television advertisements that you’ve seen for fragrance products, such as Axe deodorants and body sprays, Calvin Klein colognes, or Chanel perfumes. Some of these commercials entice would-be buyers with the promise of an exciting and glamorous lifestyle, others portray an image of coolness, stylishness, manliness, gracefulness, attractiveness. Almost universally, they seek to appeal to the emotional desires and ambitions of the target audience.

Of course, the power of emotion extends far beyond the world of fragrances; branding experts regularly employ emotional techniques to plug items ranging from soft drinks, to jeans, to automobiles. By connecting your brand identity to the emotional aspirations of consumers, you too can convey a potent message. But you’ll need to begin with a solid understanding of your customers’ emotional drivers.

What motivates your customers?

Every one of your customers is a unique individual, and each may have h/er own reasons for seeking out what you offer. Nonetheless, you’ll often be able to identify emotional drivers that many share.

As part of their research into customer emotional connectedness, published this month in Harvard Business Review, analysts Scott Magids, Alan Zorfas, and Daniel Leemon compiled a list of High-Impact Motivators that includes the following:

•  A desire to stand out from the crowd, which businesses can leverage by emphasizing the uniqueness of their brand.

•  Confidence in the future, and a feeling that the best in life is yet to come.

•  Well-being, including relief from stress.

•  Freedom and independence, and sovereignty over one’s own decisions.

•  Success, defined by the sense that one’s life and endeavours have meaning.

•  Belonging, as in being part of the “in” crowd, and/or perceiving oneself to belong to something greater.

•  Thrill/excitement, and the associated pleasure or buzz.

•  Environmental protection: the belief that one’s purchasing decisions are either helping to prevent (or at least, not further exacerbating) the degradation of the ecosystem.

            Other common emotional drivers are the desire for love, financial security, the admiration of one’s peers, and the wellbeing of one’s family.

Identify emotional connections.

Existing customer and market data, surveys, and social media can all offer valuable insights here.

If your customers have liked or favourited your business or its products on social media, there is a good chance that these individuals would welcome updates, including information on special deals and limited-time offers. Surveys provide a means for you to learn about the emotions associated with particular customers and their shopping behaviour. (Questions like “Do you place greater value on individuality, or social acceptance?” or “Do you consider (X) a good brand?” can yield enlightening insights.) By aggregating basic customer data points—such as age, profession, gender, and transactional records—you can develop a profile of the kinds of customers who most value what you have to offer.

Emotionally connected customers tend to be lucrative ones.

Typically, your data will reveal that a minority of your clientele consists of regulars and comparatively big spenders. The research of Magids, Zorfas, and Leemon suggests that there is substantial overlap between your most frequent or lucrative customers, and those who feel emotionally connected to your business.

By reaching out to your most emotionally connected customers first, and striving to forge stronger connections with your borderline-emotionally connected customers, you can give your business greater staying power and a competitive edge over those that overlook this factor.

Actually, The Customer Isn’t Always Right

“The customer is always right” is a kernel of received wisdom that has stood the test of time—and will likely remain with us for many years to come. Of course, customer service is essential to the success and viability of any service-oriented enterprise, and no manager who fails to prioritize this dimension of day-to-day business can expect to keep h/er job for long.

Nonetheless, the world is full of imperfect people. Everyone makes mistakes. Some individuals are prone to losing their tempers for no good reason, have irritating habits, or place unrealistic demands on others. The odds are good that, sooner or later, you will do business with a customer who answers to one or more of these descriptions.

In other words, the tired old maxim that presupposes the correctness of the customer isn’t true. On the contrary, customers are frequently wrong.

The expertise gap.

You or your staff likely know more about the products you offer and their best uses than many of your customers do. You may occasionally have superior knowledge about what is in a customer’s best interest. If this is the case, try to be forthright.

Many customers are understandably suspicious of the motives and intentions of salespeople—Is he on commission? Will she try to peddle something I neither want nor need?

By encouraging honesty and integrity throughout your enterprise, you will garner a reputation that reflects those values, and in turn, earn the trust of current and prospective customers. You want them to feel comfortable and confident that you plan to help them, rather than exploit information asymmetries to your own advantage. Obviously, a customer who expects a good-faith transaction will be more receptive to your insights than an apprehensive one who fears a hustle.

Give your employees the benefit of the doubt.

No one is entitled to spew abusive language or direct any other form of harassment toward your staff. If a dispute arises between an employee and a customer, you should give the customer’s concerns a fair hearing, but offer your employee the benefit of the doubt.

By giving your employees the support they need to do their jobs well, you’re likely to end up with more satisfied customers too. Workers who believe that their employer will have their back in a dispute will tend to find their work more gratifying, enjoy higher morale, and offer customers an exemplary standard of service.

Of course, this doesn’t imply that you should embrace the equally extreme position “The employee is always right”. But competent, hard-working staff certainly deserve your support in the face of unreasonable customers.

Don’t reward bad behaviour.

If you dedicate yourself to the maxim “The customer is always right”, you’ll naturally be inclined to tolerate a cantankerous customer’s misbehaviour—and by tolerating it, you’ll only encourage more of the same. Don’t give in to the person who yells the loudest or raises the biggest stink; at the end of the day, this policy will do more harm to your business than good. Do you really want your other customers to perceive that the most annoying shoppers are also the ones most likely to get what they want?

Occasionally, you may have to ask a combative individual to leave the premises, so that you can concentrate on helping those who treat you with civility and respect. Bad customers are also bad for business: they distract your employees from more important tasks, and can create an unpleasant experience for everyone.

Top 10 Sales Mistakes Small Businesses Make

It's easy to track sales figures and determine just where your business stands with regard to making its quota for the month. However, what those numbers might not show is exactly what mistakes are being made by you or your sales force. Even with decent numbers there is always room for improvement. See if you recognize any of these top 10 sales mistakes in your company's sales staff.

1. Not taking the time to listen to your customers.

Every decent salesperson has perfected their pitch. Sometimes it's hard to stop that "train" once it is rolling down the track. However, when you stop listening to your customers you're missing out on the ability to adjust your pitch to meet their specific needs. Listening could open up an entirely new and winnable approach.

2. Making the hard sell.

Being passionate about the product you're selling is a good thing but you need to know when to back off from the hard sell. If your sales pitch is all about pushing towards the sale then you might find your customers backing off from such aggressiveness. This mistake goes hand in hand with the "not listening" one. Take a breath and give your customers a chance to process.

3. Not doing research on your product.

Often a salesperson thinks they've "got it" when it comes to pitching a new product or service. Yet, that rush to hit the sales floor could hamper a sale if that agent isn't as familiar with the details of the product as they should be. It's hard to anticipate every question a customer might have but that is certainly a good goal to strive for.

4. Jumping to the close.

The "ABC" of sales is "Always Be Closing" but that doesn't mean jumping to the close right out of the gate. A customer wants to feel like they are being taken care of. That holds true for someone shopping in a store or online. Take the time to build a relationship with the customer. Online this can mean providing them with engaging content that they care about. Once that relationship has been firmly established, making the close will be a lot easier.

5. Forgetting to close.

The opposite of the sales mistake above is not getting to the close. Every sales pitch should end with some kind of call to action such as, "Can I place this order for you?" Don't assume the customer will always jump in and offer the close. Be subtle but make sure it's part of the experience.

 6. Veering off the sale.

You definitely want to build a relationship with your customers but that doesn't mean spending hours talking about the great game from last weekend or swapping recipes. Too much chattering can have you veering off the topic at hand which is the sale itself. Nothing wrong with getting comfortable with your customer but keep focused on the goal of closing the sale.

7. Not knowing who you're selling to.

If you're operating out of a store or online portal you won't really know who a customer is when they approach your business. However, if you are going out to make a sale you need to understand who you're approaching and what their needs are. That holds true for a client lunch or working the trade show floor. A little research will go a long way.

8. Being too "smart".

Sales people like to think they can size up a customer with a quick look. While a majority of those first impressions could be accurate just as many could be wrong. Don't assume you have everything figured out about a customer by the way they dress or their look.

9. Ignoring good leads.

Are you an impulsive shopper or do you like to take your time before taking the plunge? Your customers run the same gambit. They either will make up their mind fast or need a little time. For those who can't quite decide you need to follow-up with those leads. This is especially true is someone has asked for additional information. Don't waste a lead.

10. Not expanding the customer base.

A business like a food truck has the ability to go where the people are. The key is finding out those locations. In many respects, you've always got to be on the lookout for ways to expand your customer base. You can't rely on repeat business alone to drive up your sales numbers. 

Never Stop Marketing your Small Business!

When it comes to a weak economy we’re all in this together. Yes, it’s true that some businesses manage to stay afloat when times are tough but is that because they are selling something we can’t live without or is it just good marketing? Evidence would suggest it is the latter. The knee-jerk reaction for any small business in a tight economy is to cut costs. However, you don’t have the luxury to sit on the sidelines - You should always keep up your business presence through your marketing campaigns. Here’s why:

The benefits add up

Your bookkeeping records don’t lie: You know when you had a spike in business. Can you trace that uptick to a particular event? If you sell umbrellas and a storm rages through the community then you can thank Mother Nature. Most other upticks in business can be attributed to some piece of effective marketing you engaged in whether that was a coupon, a contest or even a powerful tweet. Build on what worked in the past and embrace the idea that those benefits can be achieved again.

Your competition isn’t stopping

As mentioned, we all share in the economic burdens but that doesn’t mean you should surrender your business to the competition. Do you think they are slowing down their marketing campaigns? Even if they stop marketing, you could take advantage of the downturn to out-market them.  Beat their prices. Offer what they can’t. That’s the way to stay competitive.

Be on the lookout for growth

The best case scenario for any business is to corner-the-market. That means they’re the market leader in their industry. Even the market leader can still experience stagnation if they don’t continue to grow and innovate. Keeping up your marketing provides you with the opportunity to expand your customer base. That’s really the only way to climb out of the economic doldrums.

Think about the long game

A successful marketing campaign isn’t just about a quick infusion of cash. Although that’s going to help, you really want to think about the long game of your business success through aggressive marketing strategy. With those campaigns you’ll be building up a strong brand identity and increasing your customer base. Suppose you ran a contest and succeeded in signing up a thousand entrants? That’s a thousand names you can send email coupons three months from now. When the holidays roll around you’ll be able to send out another blast to remind those folks of what you’re offering. Now you’ve got a consistent business. That can only be achieved if you keep your marketing going. 

Tips For Optimizing An Email Marketing Campaign

While it is true that traditional mail advertising circulars are still an effective way to reach a customer base, email marketing can truly take your business global. An affective email marketing campaign can improve your company’s chances of increasing its customer base and bottom line. Most of the email addresses you’ll be using in your marketing campaign could be willing recipients. In other words, these folks have signed up for the information you’ll be sending them. The goal is to optimize that email marketing campaign and insure you’ll be creating a positive experience for those customers. Here’s how you can accomplish that goal:

Reconnect With Existing Leads

While it is important to constantly be on the prowl for new lead generation, it is equally important to stay in positive contact with existing leads. You might have been sending them newsletters or special offers without much feedback. We are quickly developing into a society where everyone gets to share their opinion. Why not invite your leads to share what’s on their mind about your business? Ask them about their own needs in the form of a quick survey. Invite them to check out a new “exclusive” offer and provide their comments. This could also be a way of sorting out who is really a “hot” lead versus a “cold” lead.

Use the Power of the Referral

Positive word of mouth is extremely valuable for any business. You can boost that along by asking your existing customers to refer new business you way. You can entice them with a special offer for every referral they send your way. On some level, this is doubling your email marketing when you can get existing customers to do the work for you!

Share Your Business Story

Everyone has a story. The history of a small business is what gives that company its personality and charm. Sharing the origins of your company’s start-up is an effective way to build up trust and familiarity with your customers. You’re no longer just a “shop around the corner” but instead you’re part of the neighborhood. You’re family. That kind of sharing can generate positive feelings for years to come.

Create a Strong Landing Page Lead Magnet

Just as the title implies, a lead magnet is going to pull new customers to your website with a specific offer or benefit. A lead magnet can be a piece of fresh video content or insightful report used to support your business. It’s all about keeping the content on your landing page fresh. Give your lead something new to view, read or participate in.

Provide a “Sample”

Who doesn’t like to get something for free? Grocery stores recognize this by offering free samples of tasty treats. You can provide the same enticement in the form of a free trial registration or demonstration of your product or service. This is a perfect opportunity to education a new customer base about what your company is offering. Once a new customer has been given a “free sample” they often buy the product for themselves!

What Should Go in My Business Plan?

A good business plan is more than merely a document. It is a carefully designed outline of your business, a veritable blueprint that accurately describes your business and all its components. Business plans differ in length and detail, depending on the nature of the business. However, there are certain basic elements that a good business plan should contain.

Begin with the Executive Summary. Many consider this to be the most important section of the plan. It provides an overview of the key points of the business. It should contain highlights from all sections of the plan and should be written in an interesting, concise manner, not to exceed two pages. Often, the reader will only read this section. If it doesn't grab the reader's attention, they may not go further.

Follow this with a detailed description of the business opportunity. In simple language, describe what this business will do and why it should succeed. Why are you the right person for this business? What is your vision?

You have done your market research. Put the results into a detailed marketing plan. This section of the plan should demonstrate how you plan to enter the market. How do you plan to promote your business? What are your pricing and sales strategies? How large is your potential customer base and how do you identify them?

Build an organizational chart. Describe the key members of your team and what will be their roles. Include the qualifications of the leading managers, including you. This section should clearly convince the reader that this business will have the team to make it happen.

Follow the organizational chart with a description of the operational requirements. How will the business operate? What are the physical requirements? What types of technology will be employed in the daily operations?

Now comes the number crunching. The financial section should contain a detailed outline of your financial forecast for the first three to five years. The first year should be far more detailed. An investor should see that you truly understand the business. This section should contain cash flow statements, profit and loss forecasts, and sales projections.

Remember that the language of a business plan should be directed to an outsider. Make the plan realistic and believable. Invest your time in preparation as this document may be the key to launching your business.

More help on setting up a business plan

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