Question

Topic: Advertising/PR

Best Way To Reach Brick-and-mortar Business Owners

Posted by Anonymous on 7/16/2013 at 8:58 PM ET 50 Points
Let me preface this, by saying I am a programmer and have no clue about marketing. I have created an online employee perks platform (https://perkslocal.com) for local businesses and their employees. I need to get local businesses to post a discount offer and enroll their employees. To get the ball rolling it is free.

Getting the word out to SMB owners has been a challenge. They are hard to reach on the phone, they do not seek out solutions online, they generally do not reply to email solicitations (even free ones). I am starting to work through some of the local business associations, but many of them are loath to be seen as endorsing a for-profit online service.

Any suggestions how to efficiently reach and convert this SMB market would be greatly appreciated.
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RESPONSES

  • Posted by Moriarty on 7/17/2013 at 2:57 AM Accepted
    Okay - what you need is a simple display network campaign. It's online and it's not that hard to do. You'll need to do some homework - but it is possible with a few hours study to set one up and learn what you need as you go.

    The point is that you need people who WANT what you're offering - and to be honest there won't be many right now (it hasn't caught on, right?). There will be a rare few who will. Your job is to find them. This small slice of the population will be interested in what you have to offer, and finding out who they are is your first step. Finding out if there are any would have been a good start, however you've started so let's assume there is a market for now. There should be enough to get going given the size of the North American Continent ;-)

    The point about using the display network is that it's the kind of advertising where people don't have to be searching for what you're offering. You will be using keywords, only you'll be paying for the number of times your ads show up (or per 1000 - hence CPM, cost per milennia or something of that sort). It's part of Google's Adwords service so you'll need an account.

    Now: it is relatively inexpensive and scaleable. That is to say, once you've found something that works, you can exploit that niche. Once you've got a start is where it begins to be fun.

    Does this sound an idea for you?

    Further information can be found online at https://askhowie.com. His "Google Adwords For Dummies" is a comprehensive look at all things Adwords in a friendly easy-to-read style.

    It has ALL you need to start a simple campaign that you can tailor to your own distinct needs. You don't need to be a marketer to get it moving, you are only doing this for yourself after all. All you need to know is who is buying your product and why. It doesn't take a Harvard degree to work that out. More to the point, it takes determination and imagination - and they don't teach those at university.

    So go find 'em.

    If you need any further help you can post it here. It's what we're here for. I'm certain that the others have good ideas too and should throw a light on the subject.
  • Posted on 7/17/2013 at 11:22 AM Author
    I wish it could be as easy as a PPC campaign. I tried Adwords, but it is hard to focus on small business owners within a tight geographical radius. Popular search phrases such as "small business advertising" cost $10 per click, which is too expensive given my conversion rate and pricing.
  • Posted by Jay Hamilton-Roth on 7/17/2013 at 6:47 PM Accepted
    Have you started by contacting a few SMBs in your area and trying to gauge interest (an informational interview)? Instead of selling what you're offering, you need to better understand your audience's needs and how your solution addresses a need of theirs'.
  • Posted on 7/17/2013 at 7:48 PM Author
    Thanks Jay. I've spoken with many SMB owners. Most like the idea of offering their employees money saving perks, but it is not a burning need. Many would obviously like to attract new customers, however don't believe in discounted promotions. Some are only interested in the B2B savings they can get for their business. Basically there is little consensus, and perks and promotion are not a hot button issue.

    DailyDeals seems to be only online service that has successfully penetrated the brick-and-mortar SMB market. I think PerksLocal is far better deal for merchant than a Daily Deal. Most SMBs say they dislike daily deals, yet most have done them.

  • Posted by Gary Bloomer on 7/17/2013 at 7:49 PM Accepted
    Try one on one invites through Facebook and LinkedIn; use direct mail that's hand addressed, and
    that offers solid calls to action in a one page mailer.

    If this is a tight geograpical region or area, next, start pounding the pavement and banging on doors.

    Ask to speak with business owners, not managers. You need to speak with the organ grinder, not the monkey. Develop a simple USP and pose your offer in terms of benefits and value. Then, as peolpe
    begin signing up, ask their permission to use the social proof of their buy in to generate futher traction.
  • Posted by Jay Hamilton-Roth on 7/17/2013 at 9:29 PM Member
    If it's not a hot button issue, then unless you can change the priority (based on research), you're in for an uphill battle. If they can see the benefit for posting an offer to gain new clients, that's another issue - but instead of dropping their price, can they offer additional value for their product/service offer?
  • Posted on 7/18/2013 at 2:07 AM Author
    Thanks Gary...good common sense advice. I had tried door knockers with minimal success, but maybe hand addressed mailing is more likely reach owner. Agree it needs to be followed up with phone call and site visit. This is $10/mo service, so it is hard to cost justify the expense. My hope is that there is tipping point at which WOM exposure kicks in.
  • Posted on 7/18/2013 at 2:10 AM Author
    Hi Jay, Unfortunately I don't think local merchants see a compelling need to market themselves online. However I could be successful with just 5% of the market that may be interested in online promotion. I'm trying to focus on those that have done other online promos, such as recent daily deals.
  • Posted by Moriarty on 7/19/2013 at 10:22 AM Member
    Sorry for the delay in responding: I wasn't thinking about Adwords - because for the Search network people have to be actively looking for what you are doing.

    The display network is far finer, and can be targeted to within a mile (or postcode). It's advertising in the old sense - and the point in using it is as much to discover what motivates people as advertise to them. All this can be then leveraged by using it in your local flyers (thus making them more effective).

    Two further points: why is this only $10/month??? You are helping businesses that transact thousands each month. My other point is to use Gary's idea of hand written letters, and get them to phone you. You can also use this in your display network advertising too.

    Does this help any?
  • Posted on 7/19/2013 at 5:02 PM Author
    Thanks Moriarity, Ok, display network makes more sense. Will give it a try, but still not sure if these local business owners spend much time online. I've been doing some door knocking, and learning more about the nature of the marketing challenges. Here in San Francisco, I would estimate about 40% of the SMB owners are first gen immigrants with limited understanding of online world. They all understand Daily Deals and assume this is some variation of that. Trying to explain a new online concept is difficult when dealing with busy owner not familiar with online marketing and often speaking in second language.

    As for the $10 price I am just trying to get traction at this point. It is $1/employee/month, and free to place a discount promo. I spoke with daily deal sales person that indicated it costs them about $2k in sales costs for each business customer, with average gross of $14k per deal.

    Thanks again for your help. .
  • Posted by josephmcelroy on 7/19/2013 at 8:23 PM Accepted
    Lmeyers, landing SMB clients is an expensive proposition...I think last I looked it was like $600 per SMB. You need to concentrate on a partnership deal with a big player that already has a local SMB client base... A bank, phone company, ISP, etc. Otherwise you need to raise a great deal of money for advertising.
  • Posted on 7/20/2013 at 9:46 PM Author
    Thanks Joe, Yes I am finding SMBs a difficult marketing. I am wondering what other online services have successfully marketed to this segment. I know Daily Deals have, but most are not profitable. I am partnering with local merchant organizations and giving their members discounts provided they sign up 50% of membership. Had not thought about partnering with bank or phone company, but will give it some thought.
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