How to Build Trust in Online Marketing

Although the online community can truly have a global reach, businesses depend on more direct contact with their potential customers. To achieve that connection online companies strive to build trust but that often proves difficult without any direct face-to-face communication.

Can you really trust someone that you can't look in the eye? As it turns out you can and hundreds of e-commerce sites have achieved a strong bond of trust from their customers. How can you build up your company's credibility and make your customers feel safe when they shop?

Consider these important tips:

Post a Privacy Policy

You won't be able to conduct any business online without gathering personal information from your customers. That doesn't mean their information can't be kept secure. Making your customers aware of your security enhancements can give them an added peace of mind about doing business on your website. Additionally, you should assure your customers that their information won't be sold to a third party or used for other promotions without their permission. This keeps them in control of their personal data and builds up the trust.

Pick a Reliable Payment Processor

Chances are that by the time a customer reaches your online store they will have already been accustomed to shopping online. That's a good thing because you want smart shoppers. To help support this you should be dealing with a reliable payment processor such as PayPal, Moneris or others. Not only are these processors extremely user friendly but they also provide various consumer protections like tracking payments and chargebacks. This is something customers truly appreciate.

Put Testimonials to Work for You

If there is one thing the Internet has taught us is that everyone likes to share their opinions. You can put positive reviews to work for your company by making them available on your website. Invite customers who have had a positive experience to post a review in exchange for a future benefit or coupon. When a new customer reads these types of reviews they'll have a sense that your business is indeed reputable and trustworthy.

Be Visible on Social Media

Every business is based in a community. Being highly visible on Facebook, blogging and forums helps build credibility with your prospective customers. They appreciate that you’re trying to reach out to them and that they can communicate with your business representatives.  Develop a relationship with your customers and create a community that revolves around your company’s brand, products or values.

 Be Real

You have a lot of faith in your product or services as you should. However, that doesn't mean those things you're offering "will forever change a person's life" or "revolutionize their very existence." Customers are leery of the hard sell. On the other hand,finding a way to use humor in your marketing campaigns can generate good feelings. When in doubt always go for the smile. 

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. 

How to Choose a Corporate Name

There are many elements that go into choosing a business name.  Most business owners want a name that not only describes their business but has good marketing potential and stands out from the crowd.  But, more importantly, names have to meet the legal requirements set by the jurisdiction of incorporation.  This is where things can get difficult!   You can choose a name that sounds really cool and fits perfectly with your business, but the government may think otherwise.

To avoid the disappointment of a name rejection, here are some tips on choosing a name that fits with your business AND the legal requirements.

Create a distinctive element.

This is what sets your business apart from others.  Whether it be a coined or original word, geographic location or family name it is important to be original and creative when coming up with this element to avoid infringing upon another company name.

Add a descriptive element.

This part tells the customer the type of business the company does.  For instance, if you’re a tech company you may want to use something like ‘Software’ or ‘Telecommunications’.

Choose your legal ending.

This is the easy part.  Legal endings come in various forms but all incorporated companies must have one attached to their name.  The legal names used in Canada are Inc., Ltd., Corp., Incorporated, Limited, Corporation.

      Make your name memorable.

      An easy to spell name with positive connotations goes a long way in marketing your business.  Keep in mind how this name might look as a logo, on a website, in signage and used in other marketing collateral.  

The criteria used if there is confusion with another company is the distinctive character of each name, the visual or phonetic similarity, the ideas evoked, the manner in which the names are used, notoriety of the name, potential competition between the companies, the nature of services provided, and the territory served by the company.

To avoid paying for numerous name reports, doing a pre-search of corporate names can help you get an idea of what names are already in use.  To avoid disappointment, come up with at least 3 variations of your name, all of which you are happy with, so that if your first choice is rejected you have other options that can meet the requirements.

How to Create Urgency in your Sales Pitch for a Faster Close

When sales are slow and buyers are resistant to new purchases, salespeople often use a variety of tactics to get their prospects to purchase to buy now. The most important and successful is to create a sense of urgency to get people to buy. 

Yet, urgency isn’t something that you force upon your sales prospects.  Instead, it naturally occurs once you uncover your customers’ motivation.  So you have to discover it.

It is done by using the consultative sales approach – by asking the right questions; listening carefully, and your customer’s desires and motivation will appear.

Here are some tips on creating a sense of urgency that can be used depending on your prospects’ scenario:

Tell them it's a limited supply.

Whatever you're offering, if you only have a few left then it's going to mean the person you're talking to has to act fast. That holds true for widgets or shares in your company. The key is to be truthful. You don't want to tell a client you've only got a dozen items left when in truth you've got an entire warehouse. It's all about building up trust. Whenever you've seen an ad offering a special deal for the next hundred callers you know that every caller is going to get the same deal. Don't fall into that kind of exploitive ploy. On the other hand, you might often have a situation that arises which is about genuine limited supply. When that happens, spring into action and see if you can't capitalize on that.

Tell them it's for a limited time.

Deadlines work both for someone who has a project due and for someone who has to make up their mind about a sales pitch. By placing a time limit on a special deal you're letting your client know this is a special occasion. Just make sure you follow through and close out the deadline. This is another aspect of the trust issue. If you tell someone they only have until Friday to get this special price but then that price is offered on the following Monday then how will they ever trust what you have to say? Always remember the client you make happy today is one you can go back to tomorrow.

Tell them it's a better price.

This is probably the quickest way to create a sense of urgency: Just tell them it's going to save them money. The problem with this approach is that you might become stuck with the discount for future sales. If a client knows that can get something cheaper they might just wait until you make that offer. This is what you have to be careful with the discount. Either always have it or never have it.

Tell them they'll be getting added value.

The alternative to slashing the price on a product is to add value to that same product. Perhaps there is something you can bundle with what you're offering to make it more attractive to a potential buyer. This type of approach can be combined with the "limited time offer" for a solid one-two punch of urgency. 

How Venture Capital Funds Work

It used to be a popular misconception that venture capital funds only invested in companies that had traction and have proven products. Obviously, that misconception has changed with the large number of risky investments in startups. With the considerable amount of resources and advice available on how to pitch to VC’s, there still is a lackof understanding on how the industry really works.

Innovation has been the key driver of competitiveness within an industry. However, to bring innovative ideas to life requires more than just talent to succeed. As innovative ideas are considered risky for traditional banks to invest in, many entrepreneurs turn to the venture capitalists to bring their ideas to reality.

Venture capital has become an important source of funds for innovative and risky startups that may have a potential for high returns. A venture capitalist invests in a potential company in the hopes that their investment could give them a higher rate of return for themselves in a shorter amount of time.

Due to the risky nature of the investment, the venture capitalist spreads their risk over multiple prospects. This way, they minimize the risk of losing their money in one company and make it back from the one startup that makes it big.

Some characteristics of a VC firm are:

Investing in risky ventures with potential for high returns: VCs usually invest in unproven and innovative ideas which traditional financial institutions avoid. For that investment, they expect a ROI that is higher than usual. In general, they look for a rate o return that is within the range of 25 to 40 percent.

Hands on experience of an industry: VCs have prior experience and contacts which gives them an expertise in better management of the funds deployed. Not only do venture capitalists provide funding, they also provide a network and expertise that can help their investment grow. They can provide technical, marketing and strategic support.

Raises funds from several sources: There is a misconception that venture capitalists are rich individuals who are partnered together to invest in companies. Many VCs are not necessarily rich and almost always manage the funds on behalf of others. They raise financing from institutions such as other investment funds, pension funds, endowment funds, in addition to other successful individuals.

Diversify their portfolio: As mentioned earlier, VCs reduce their risk by developing a portfolio of companies instead of investing their entire fund into one company.

Short-term exits: As high ROI is important for any VC, they always make an investment with an eye for the short-term future. They determine whether they can see a return from their investment within 3-7 years. Their exits can range from getting bought out by a larger company, or taking the company public or even selling it to a private equity fund. 

Advantages of Venture Capital Investments

As a entrepreneurs, you may want to consider funding that range from few hundred thousand to a few million. Normally, you require this funding to grow your company by hiring more employees or the ability to do research and development. When faced with these situations there are many advantages of using a VC. 

These include:

• Securing a larger amount of money than you could from a commercial lender or government lender, turning your shares into more money in a shorter time frame. VCs normally make a decision in investing much faster than traditional financial institutions.

• They share the financial risk in expanding your small business.

• You can get specific experience from different kinds of VC firms, such as those specializing in early stage (startups) businesses or late stage (fully developed) companies.

Some Cons of Venture Capital Funds

Even though a VC firm can review your business and identify a lot of value in your company, it can be a disadvantage to accept VC funding. Some cons are:

• Losing your majority equity share to investors who are not passionate about your company.

• Possibility of surrendering managerial control to a VC firm

• Risking that a VC firm will take your company to a quick exit before it’s ready. 

• Losing competitive advantage in an industry by sharing privileged information about your business model to others.

Before choosing to work with venture capitalists, ensure that the pros outweigh the cons. The best position for a venture firm to be in is to have a substantial equity stake in a company. A VC earns their fees based on a percentage of the profits they create for their investors.

As the startup business owner you need to be realistic with your available equity stakes in terms of what you're willing to part with and the valuation of your company. It's important to find that balance and understand that first offers should not be generally accepted.  

Clean Technology - The New Bubble?

When it comes to investment "bubbles" we've recently experienced two major "popping" incidents. The first was back in the late Nineties with the technology bubble popping leaving a wreck of literally hundreds of online startup businesses.

The second was the housing bubble from the early 2000s. We're still feeling the impact of that bubble bursting.

Now there is a worry that clean technology will be the new fragile bubble. However, there are indications that would point in the direction of longer lasting investment opportunities with clean technology businesses.

Here's why:

Clean technologies get paid first.

Unlike the internet companies who were offering free services, most clean technology companies like those making and installing solar panels are paid up front for their services. In other words, nobody is giving away a solar energy system for free in the hope you'll buy another one. The potential drawback is that for these businesses to succeed they will require a serious investment from the consumer. This brings up the need for a strong marketing campaign to make sure the consumer understands all the money-saving benefits of clean technologies down the road.

It's good for the planet.

At the heart of any green technology is the desire to make the world we live in a better place. By reducing our dependency on fossil fuel burning forms of energy we can make important strides in protecting our fragile eco-system. That approach holds a lot of appeal for many folks. We might not need to buy a luxury item from some online web store but we should all be interesting in preserving the environment. This makes clean technology more of a "calling" as opposed to a "fun fad" and that is going to increase its longevity as a business.

Government support.

For the most part, governments have stayed out of online businesses. It also seems that any government involvement in the real estate industry has had dubious effects. However, with clean technology the government can play a vital role in terms of offering support. Not only have they been providing loan guarantees to clean technology business but there have also been tax credit incentives to spurn consumers into investing. The partnership between the government and clean technology appears to be in for the long haul.

Slow and steady growth.

Unlike the internet and housing bubbles, nobody is going to become an instant millionaire in the clean technology industry. That doesn't mean you can't find success but the approach is one of slow and steady growth. That removes a sense of urgency in investors looking for overnight returns. Smart investors understand the nature of the clean technology business model and will make the appropriate decisions towards infusing those industries with the needed capital. 

Five Reasons to Avoid Crowdfunding

In the wake of tight credit markets in North America, crowdfunding or crowdsourcing, has quickly become a source of readily available financing to startups, charities or projects. This form of financing is extremely popular with the creative industry such as documentaries, artists and writers.

This new form of financing allows a person to get funding through small contributions from a large group of individuals through an online platform.  The entrepreneur makes an online pitch to a community, which then decides if they want to support the project by giving money towards it.

Raising funds for your small business by crowdfunding has its own set of dangers that can be harmful to your company’s success.  Here are the top five reasons to avoid crowdfunding as a financing option.

Crowdfunding is not meant for large projects.

If you need a million plus dollars to get your business up and running, crowdfunding is probably not the best source for you. Yes, there have been exceptions, but raising the large pool of capital works best with venture capitalists that you can focus on as opposed to the sometimes-scattered approach of crowdfunding. The other thing to consider is repayment. Imagine trying to keep 1,000 investors happy!

Crowdfunding is not sophisticated investing.

There is a kind of hip, underground vibe to crowdfunding. You could kick in a couple of hundred dollars towards an edgy independent film and feel like you’re part of the creative process. However, some professionals might not want to open up their business plans for such wide scrutiny.   

Crowdfunding could impact future investments in your company.

If you're tapping into crowdfunding as source of capital, you want to think about the longevity of your business. A single project can benefit from the financing, but if you've giving up shares in a company that might become extremely successful, those shares could tangle up future investment opportunities. See "The Social Network" for a perfect example of this dynamic playing out with billions at stake!

Crowdfunding has a limit on share values.

The cap with crowdfunding is $1 million. If you manage to raise more than that amount you'll be frozen out of crowdfunding for at least a year unless you want to become involved in security registration compliance. Suppose your company experiences rapid growth? You might be stuck if crowdfunding is your only cash flow source.

Crowdfunding is not a quick option.

If you need cash fast, crowdfunding is not the way to go. Once you place your proposal up on a site you essentially have to wait until it catches "fire." You'll also have to do a lot of your own promotion to drive people to your plan. This process can stretch on for weeks and months. Now consider being approved for a loan from a bank and having the funds by the end of the week. Which works better for your plans? 

How to Create a Successful Freemium Business Model

You've heard the warning, "You get what you pay for." When it comes to freemium business models, getting something for free could actually be the ticket to a lucrative business.

The internet is crowded with thriving freemium type of sites like LinkedIn, Dropbox, Skype and others. The goal for those companies is not to completely give away services for nothing in return. The hope is that through paid upgrades, companies can convert loyal users into paying customers after trying out basic services.

If you’re considering in creating a freemium business model, understand these factors:  

Make your product your number one priority.

That might seem like an obvious tip but you'd be amazed at how many developers begin with the premise "I've got to make a lot of money fast with an application" as opposed to "I've got to make an application that serves a need."

Your product has to be easy to find and to use with the kind of adaptable features that today's internet user is drawn to. Like most successful products, you need to identify a need then provide a solution. What are you offering that other sites aren't?

You also have to consider the complexity factor as in don't make your freemium complex! You want your potential customers to be able to click over and start using without very little effort. If your site requires lengthy training or tutorial sessions it might turn off potential users.

Make sure you understand the value of free users.

You're going to be spending a lot of capital and development time to get your freemium company up and running. The initial start-up phase is not going to generate any substantial revenue. However, if you appreciate the value of building up your user base then you can easily translate high volume into potential revenue streams through service upgrades.

Do you know your cost per acquisition (CPA)? Do you know your break even point? Are you realistic about how long it will take to achieve that goal? Those factors should all be part of your business model.

Test, test, test.

Make sure that you test every aspect of your business model, from conversion testing to how users consume your service. You can improve your service offerings, tweak your ad campaigns or even determine who your ideal customer is. Without testing, your business can be left behind by fast moving competitors who can snap up your unsatisfied customers.

While starting a freemium service is not always the right model for every industry, used wisely - it can be extremely powerful. Before you start, remember that all start-ups should begin by creating a product that solves an important need for users. 

Using Content Marketing to Build your Brand

Google can be a business' best friend or worst enemy.

As the number one search engine used by the vast majority of internet users, you would like nothing better than to be at the top of any search tied to your business. Knowing that their users depend on accurate information, Google is constantly updating and modifying its search algorithms to insure the sites they recommend are viable.

Google does this is by searching for fresh, original content and not just "spammy" stuffed copy. This has forced some brands to behave like media companies, producing content across various mediums, including video, photography, infographics and articles.

However, this shift in marketing has made it difficult for many brands, since effective content marketing demands turning away from self-promotion. Companies that put the needs of their customer first in their marketing, by providing interesting and engaging content, without any overt promotion will attract an audience that wants to consume the content, share it, comment on it, and even create it.

Here are some rules to follow to when using content marketing to build up your brand:

Don't promote - educate.

Teach your customers by being educational, not promotional. Work with experts by using thought leaders in your industry to create videos, blog entries, and other content for your target audience.

Help to solve a problem.

Your customers are usually looking for answers to a problem, so include information that solves a problem or answering a tough question. Show your prospects how your information helped solve a problem because they will explore your solution further if they have that same problem to solve.

Measure the success of your content strategy.

Analyze how users discover, consume, and share your content.  It’s vital that you measure the success or failure of your content marketing strategy. Start by taking a look at page views, time on page, your bounce rate and make sure that every single link that goes into your content marketing piece is trackable.  

Make it easy to share.

Your content must be easy to access - share it across many platforms. To get a large amount of traffic, you would need to understand where your customers hang out online. You'll have to do some research by knowing where your customers hang out online. As each community consumers content differently, build content that is specific to the audience, build that community and you'll be building traffic back to your site. 

Less is More - Online User Experience Design

The adage "less is more" can apply to many things. It holds true in cooking, gardening, academics and especially business. It revolves around the idea that you don’t want your customers to think more than they have to.

The fewer decisions to make during the shopping process, the better.

This becomes easier when we consider all of our customer touch points throughout the decision making process. With how connected most people are now, an important part of this is recognizing what platform they’re using and what specific information they’re looking for.

Ask yourself the following questions when approaching your customer’s user experience:

What can you take out of the online shopping experience to make it easier for your users to make purchasing decisions?

 Are you presenting them with too many options too soon in the shopping process

Can you keep your customers engaged while minimizing the decision making experience?

Amazon has perfected the one click approach to online shopping but not without a lot of trial and error. Take a look at these websites to see how they are utilizing the "less is more" principle to web design:

Apple: If there is one company who has mastered the simplified approach to web design it is Apple. Even with the vast array of products that are part of the company's catalog you'll find that their home page consists of just three things: a navigation bar, a single product featured on the page and formational links below the fold.  The focus is on finding what you want, quickly and easily. When you click over to a specific product page you'll find sidebars featuring links to related products and support but that single product still dominates the attention of the user. You're not going to find dense copy, ads or clutter.  

 Shoeguru: Shoeguru is a terrific example of combing user-centric ideas with product-centric solutions. There also exemplify the proverbial "Grandma Rule." If the site is so easy to use that your grandma can shop there then you've achieved the ultimate in minimalistic design.

Etsy: Like Amazon, Etsy is an e-commerce site which has an expansive catalog. However, that doesn't mean you should crowd your page with tons of information to get your point across. Let strong and vibrant product shots do the selling work. In other words, you need only show what you need to make the sale. Specs and reviews matter but they should be part of the clickthrough.

After identifying the platform or device your customers will be on at any given point during their shopping process, remove all unnecessary obstacles, and give them exactly what they need.

The end result will be smaller bounce rates, more sales, customers who feel like you understand their needs.