Want to Grow Your Sales? Then Empower Your Channel

Tuesday, August 31, 2010 by Chris Keller
You’ve heard it a thousand times: Empower Your Channel to Grow Sales.

Sounds good, right?

Problem is that empowering your channel has always meant hiring more sales people who struggle to control the loose ends. It turns out that implementing channel marketing automation technology is a cost effective approach that will provide a tangible return on investment.

Reality

A recent call with a prospect illustrates the situation. Half of this prospect’s sales come from Group A, a handful of large, national B2C buyers with thousands of local stores. The other half of sales come from Group B, consisting of thousands of local and regional distributors with 1-5 locations. Logically, this marketer focuses the majority of his resources on the handful of big buyers who drive sales quotas.

The irony, while Group A does drive tremendous volume, and total sales, their fixation on price drives profit out of each transaction, resulting in commoditized products. In stark contrast, Group B tends to be very loyal, strong brand advocates, and more profitable (considering the very small amount spent on them currently). So the prospect neglects Group B.

Sadly, this is an all too common problem. Gerald Murray, Research Manager with IDC, recently released a study of channel marketing for large IT companies stating that, on average the IT company participants in his study have 19,000 inactive partners. Beyond IT, the problem pervades other industry sectors.

Solution


How then can the prospect cost effectively drive sales through the more profitable Group B? It turns out that hiring more people is not the solution. The increased human capital costs would outweigh the subsequent sales increase. The opportunity then must lie in the use of technology.

Murray from IDC tends to agree, though his solution is to implement partner relationship management (PRM) tools, though I don’t think that fundamentally tackles the channel marketing problems. Instead, I think a local marketing automation (LMA) platform includes the full suite of tools to solve channel problems. Also based on technology, it focuses on empowering the local channel reseller, a distinct difference from PRM tools that focus on tools for a brand’s channel marketing/sales organizations.

The LMA solution is scalable, cost effective, and ultimately places emphasis on local store marketing execution, a movement that is much more than a trend. To understand this as a solution, one must consider the MARKETING problems a channel faces: 
  1. Marketing Materials - Access and ability to customize proven, professionally designed, and nationally branded creative assets.
  2. Advertising Funds - Traditionally administered as a co-op marketing solution, national advertising dollars are a lifeline to the small marketing budgets of local channel resellers.
  3. Strategy - Local channel resellers typically don’t have the training, experience, or attention to develop, implement and execute effective cross-medium local marketing.
  4. Execution - Local marketing requires knowledge of effective branding across multiple mediums.
What do you think? Are these the problems your channel faces?

Channel Marketing Software - Microsites/Dealer Locator Example

Thursday, August 26, 2010 by Shane Vaughan
Balihoo has recently launched a fantastic new function within our local marketing automation software - Microsites.  One of the key use-models of this functionality is for product manufacturers who sell their products through a set of regionally distributed dealers (channel).  These manufacturers are using microsite functionality to be the landing pages on the back-end of the dealer-locator section of their websites.  Let me demonstrate:  

I'm interested in buying a new motorcyle, from Brand X.  My first step is that I'll research the product online (which research proves) .  First, I'm going to go the website of the manufacturer.  Once I explore all of the options and determine what I'm going to buy, I'm ready to purchase it locally (this even has an acronym - ROBO - research online, buy offline).  I punch my zip code into their dealer locator, and up pops the 5 dealers in my immediate area.  Naturally, since I'm on the web, I'm happy to see that they all have websites.  As I click into the dealer that is closest to me, I'm directed to their website, which represents several motorcycle brands, and in fact the Yamaha is on sale on their front page.  Brand X has given me the info, the research and directed me to a dealer - however, because they lost control of that customer, they also lost the sale to Yamaha.  

Let's contrast that experience with a motorcycle brand that is doing it right - Honda.  (note - Honda is not a customer of ours, but they're doing a great job!).  See the video below for the exact Honda experience:  



Want to see how this could impact your brand?  Hit us up for a live demonstration, we would be more than happy to show you!  
 

1 vs. 100: Marketing in the Face of Constrained Demand

Wednesday, August 25, 2010 by Zac Monahan

Consumer shopping for canned goods with skepticism about product valueIn 2008, the 100 Thing Challenge created quite a stir on the web, motivating people to own fewer material possessions and cap that ownership at 100 personal items. While Dave Bruno’s challenge lasted for a finite period, some analysts think recession fueled decreases in consumer spending may represent a permanent trend in consumer behavior. 

When considered along with the 100 Thing Challenge, the idea of a permanent decreasing in spending leads to a challenging thought experiment for marketers: what if your advertising not only had to generate interest from consumers but also had to motivate them to displace another possession prior to acquiring your product?

The thought begs a number of questions:
  • How does your marketing emphasize the value your brand provides?
  • Would severely constrained demand change your approach to demonstrating this value?
  • If yes, would that approach be different in Albuquerque, New Mexico compared to Augusta, Maine?
  • How would you coordinate your efforts in different geographic areas across multiple mediums?

At Balihoo, we believe that knowledge and know-how to adapt marketing to local markets probably already exists within your Brand’s organization. Rather, what most brands are missing are the tools to execute locally.  Balihoo’s local marketing software simplifies and automates your local marketing strategy, enabling national brands to collaborate with franchisees and affiliates to drive demand and appeal to local buyers with local needs. Specifically for national brands, Balihoo provides tools to streamline funds allocation and administrative oversight of Co-op Advertising programs.  Take a look at our White Papers to see how our software can help both your franchisees, and affiliates to drive sales with creative and targeted campaigns tailored to the local level. 


Inefficiencies and Automation

Tuesday, August 24, 2010 by Kevin Donaldson
Software is wonderful at creating economies of scale by automating processes that are time intensive, repetitive, costly, and error prone when done by humans.  However, a problem that can occur when you have access to software engineering resources is making automation the default first option when there is any problem with the business process.

Interestingly, process development challenges are very similar to product development challenges. Automating a bad process will likely make it faster, but won’t necessarily fix the bad process.  Though, you can create optimal results through rapid customer testing and refinement using lean principals to guide you.  Automation can and should be used as one of many options to reduce or eliminate bottlenecks but not necessarily as the first option.

At Balihoo or any startup, institutionalizing processes is a direct tradeoff to being lean. Startups begin with no processes and the goal of adding just enough process with growth to ensure great products and a stellar customer experience.  Add too much rigor to processes too early, and you can reduce a key competitive advantage - agility to react to the market.

In contrast, not adding enough rigor to processes can result in errors, employee wheel spinning, and inconsistent results, leading to unhappy customers.  Because growth is unpredictable, this balance is constantly changing and requires constant vigilance and involvement by all.  One bad event can cause knee jerk over-reactions by management that can cause massive downstream process effects if not checked.  Was that event isolated, or was it part of a bigger upstream problem?  How much process is required to solve this problem effectively?  Is this a process that we even want to continue supporting?

Balihoo management is vigilantly monitoring this balance.  Sometimes we get it right and sometimes we don't. However, at all levels of the organization, we have built an ownership model that helps mitigate these types of risks which results in open discussion between process owners with questions like, “Hey we could do this better here? Maybe we shouldn't do this anymore?”
Key lessons we have learned are that:
  • Total company buy-in is critical. 
  • You don't have to be a process engineer to build a lean process. 
  • Most of the time success happens as a result of a combination of common sense and an injection of ingenuity!  See these videos below for some great examples of human ingenuity with existing resources. :)









Let Us Organize Your Skittles

Friday, August 20, 2010 by Paul Price
Imagine a big jar filled with Skittles.  The Skittles are randomly distributed throughout the jar; a jumbled mishmash of red, green, yellow, purple and orange. The jar is on a machine that shakes it vigorously.  Now, imagine that this shaking action is captured on a video and played in reverse. There is no way that you can tell the video is being played in reverse.   When the video is played backward, the candies bounce just as they would when played forward.  You have no way to know if the video is playing forward or in reverse.

Now, record a new video in your mind.  This time, start with a jar where the Skittles are arranged in colored layers.  Moving from the bottom to the top, you have red, green, yellow, purple and finally a orange layer.  As the machine shakes the jar, the candies bounce and collide until they are again randomly distributed. 

In this video, you can easily distinguish a forward playing recording from one that plays in reverse.  This experiment illustrates the effect of entropy known as the arrow of time.  The basic principle of this model is that without the help of an external exertion of energy, a system tends to become less ordered over time.  Interestingly, this is the only physical property that seems to define the flow of time from past to future.

I got to thinking about this principle as I was mowing, weeding and maintaining my yard yesterday afternoon.  Everything in life follows this principle: yards, cars, homes, computer systems, roads and even business strategies including your local advertising strategy. It will slowly fall apart and become less effective over time if you don't continually test, measure and refine it.  For example, if local internet marketing was not a part of your strategy a few years ago, it may not have hurt your sales.  But, today, if you aren't investing in local internet marketing, then you are almost certainly losing opportunities.

Even if you are executing a successful local pay-per-click campaign today, it is almost guaranteed to be less successful in the future if you don't continually test, measure and refine your approach.  The same goes for all other mediums, strategies, tactics and local marketing ideas.  You have to stay up-to-date on the new tools and techniques or your competitors who do keep up will leave you behind.

As a national brand, local affiliate, reseller or independent small business owner, you have a lot to worry about, and probably don't have time to get into the nuts and bolts of fighting local advertising entropy.  That is where Balihoo comes in. We do that work for you; from ad builder software to email campaign automation, microsites and local media buying.  Click here to take a look at some of our whitepapers and case studies.  If you are a franchisee or product reseller, then direct your national brands to Balihoo, so that we can help them and you to get your skittles (aka: local store marketing strategy) to look more like this:



Moe's Southwest Grill Nailed It!

Thursday, August 19, 2010 by Brian King

I was recently catching up on some light reading at FastCasual.com, a site devoted to insights for innovative restaurants, when I stumbled upon an article that made so much rationale sense in a world that can sometimes be so irrationale.

The article, Moe's invests in local-store marketing strategy, is in reference to Moe's Southwest Grill's recent corporate initiative to increase local marketing efforts by adding a grassroots element to the franchisee's bag of available tools for franchise marketing.

Below are two favorite quotes from the article, and my thoughts on them:

1. "Local-store marketing has always been a part of what we do and we have always provided a kit to our franchise partners, but not many of our franchisees are comfortable leaving their four walls." - Right on! So many franchises want to focus on local advertising and marketing, but neglect to provide quality tools to the franchisees that truly enable them to act as effective local marketers. Ahem. . .better take a peek at Balihoo's Local Marketing Automation solution.

2. "It allows the franchisee. . .to totally control his or her territory, and they're less reliant on corporate staff or the franchisor to do the marketing for them." - FINALLY! While their effort is primarily focused on grassroots marketing, at least they are working to put tools in place so that local marketing isn't something that is only discussed during executive brainstorming sessions, but rather something that is actively done at a local level to drive demand generation.

Kudos to the team at Moe's. Now my recommendation to them: Call us, because we all know that grassroots marketing is just one component of the numerous marketing activities that should take place at the local level. We can help you with the rest!

Five Signs that ‘Local Marketing’ is Much More Than a Trend

Thursday, August 19, 2010 by Chris Keller
In the last few years, Balihoo has served a growing list of national brand clients. The attention that has been given to our ‘local marketing automation’ platform has caused me to reflect on five signs that ‘Local Marketing’ is much more than a trend:
  1. ‘Local Marketing’ Search Volume is Dramatically Growing—As a search term, ‘Local Marketing’ started growing in 2008 and has exploded in the last year, according to Google trends. Variations of this term have seen a similar explosion in growth. Balihoo coined the term ‘local marketing automation’ and owns that space as evidenced by it owning the top three Google search results.
  2. Analysts' Increased Attention—Analysts like Forrester and BIA/Kelsey are giving increased attention to local marketing, local search and now ‘hyperlocal’ media trends.
    1. A recent Forrester “Distributed Marketing” report illustrates the ‘local marketing’ challenges. It was music to my ears and I was glad to see Balihoo was included as a vendor solution, although sad that Forrester didn’t give more attention to define the integrated approach Balihoo employs to combine ad building, co-op management and execution across all mediums. That approach is how we are changing the rules of the game. Seriously, a 30-minute demonstration will prove my point.
    2. A review of BIA/Kelsey blog posts illustrates the growing interest in local, hyperlocal and geo-targeting topics.
  3. Steady Saturation of Mobile—the ubiquitous adoption of mobile phones has changed how brands can “connect” with consumers.
    1. Texting was slow to take off, but according to CTIA, the Wireless Industry Association, in ’09, 152B SMS text messages were sent monthly, up from 9.8B in 2005.
    2. According to the Pew Research, adult cell phone ownership has gone from 65% to 83% between ’04 and ’09 and 93% of 18-29 year-old adults and 75% of 12-17 year-old teens have cell phones.
    3. Smartphones and mobile devices--with the launch and adoption of the iPad and Kindle platforms-- are fueling a revolution in mobile computing.
  4. Meteoric Adoption of social platforms and geo-location toolsFacebook, LinkedIn, and Twitter’s meteoric rise along with other evolving geo-location based tools like Yelp, Foursquare, and Groupon are changing the way consumers consume and share information. It presents huge opportunities and challenges for marketers.
  5. Increased Acquisition/IPO Activity—The last few months have resulted in some interesting acquisition/IPO activity that affects local marketers including IBM’s announcement to acquire Unica, and ReachLocal’s $54 Million IPO. Other activity includes Yelp’s Rejection of Google’s $500 Million offer, Google’s subsequent launch of Google Places, and Facebook's announcement today of its geo-location solution, Facebook's Places.
So what does this all mean for national brands?

First, it means every national brand needs to have a local marketing strategy. What is yours?

Second, as stated in the Forrester research, local marketing is very difficult. That is where Balihoo comes in--pardon the quick plug. We have the best tools available for ad-creation, asset management, co-op advertising administration, media planning, microsite creation, and execution across all mediums including social. In addition, Balihoo has an incredible CEO, management team, and board of directors that understand Balihoo's opportunity to revolutionize local marketing.

Pete Gombert said it almost as good as Bob Dylan sang it, that Times They Are a Changin' and all signs indicate that 'Local Marketing' is much more than a trend. It may be a revolution.

The Times They Are a-Changin'

Wednesday, August 18, 2010 by Pete Gombert
One of the things that I regularly address with clients and potential clients is the phenomal pace of change in local marketing, and that dealing with these rapid shifts is extremely challenging as a local marketer.  

As an illustration of these rapid shifts, Beloit College in Wisconsin publishes an annual Mindset List.  This list is intended to give its faculty a reality check to ensure that they are communicating in a fashion that is commensurate with the way incoming students communicate.
Read through the list and as you do, imagine yourself as a local marketer in a college town trying to reach the freshman class.  Are you going to use:
  1. Newspaper - Nope. They don't read it.
  2. Radio - Nope. They don't listen to it.
  3. TV - Nope. It is too expensive for the few channels that students watch.
  4. Online displays - That has to be a good fit, right? Well maybe, but if you are too intrusive or disruptive to their online experience, they will be gone in a flash.
  5. Email - That is the ticket, right? Everyone uses e-mail, right? Nope. Try again. E-mail is "too slow" for this generation.
The reality is that the best way to reach these students is to use the evolving mediums that have only been around for months or at most a few years: 
  1. Social Media - Facebook, Twitter, Foursquare, Yelp
  2. SMS Text
  3. Mobile Apps
So how many local marketers know how to execute well over these new and emerging media channels? Based on my experience, not many.

That is where a local marketing automation solution like Balihoo can make all the difference.  We take the pain out of staying up-to-speed on these technologies. We then identify the best channels to be utilizing according to your target and then execute your campaigns.

Contact Us or Download a White-paper to learn more 

Facebook or Email? Where does your target consumer turn first?

Thursday, August 12, 2010 by Marcie Blagden-Ellison
"What is the first thing you do online on a typical day?"

ExactTarget posed this question during a recent research project developed to provide insight into how consumers interact with brands online. 

The study concluded with some interesting findings, including:
  • 42% of U.S. internet users use Facebook daily (69% of which are FANS of one or more companies on Facebook)
  • 88% of U.S internet users use email everyday (95% use it at least monthly)
  • 93% of U.S internet users are subscribers (i.e. they have opted-in to receive permission-based emails) 
  • 58% of online consumers check their email first
  • 11% start their day by checking FacebookExactTarget - Subscribers, Fans and Followers Pg. 7
Looking deeper, it turns out that how and where internet users start their online day can reveal a lot about how they typically interact with brands online - and what they ultimately want from those online interactions. 

TO SUMMARIZE:

Facebook-first consumers:
  1. Tend to share more information online
  2. Prefer that brands maintain a solid distinction between how they communicate via email vs. Facebook
  3. Engage with brands for entertainment or to be 'in-the-know' regarding brands' activities
  4. Tend to be younger - 43% of high school aged teens begin their day on Facebook (compared to 22% who start with email)
Email-first consumers:
  1. Tend to more task-oriented online
  2. Are more readily engaged through the use of deals, promotions or new product announcements
  3. Less interested in providing feedback to brands on their products and services without an incentive to do so
  4. Tend to be older
So what does this mean to you? Well, several things:

Skilled Coordination Marketers need to coordinate their Facebook and email strategies to ensure that they're maximizing their communication with their target audience. 

Messaging and Communication Balance:  Brands need to carefully balance their tone, engagement level and message to deliver their target audience with the savings, information, entertainment, deals etc. that appeal to them.

Both are "Keepers":  With 93% of online consumers 'subscribers' and 38% 'Likers' of brands on Facebook, both email and Facebook are powerful tools for connecting your brand to your target consumer.


Ultimately, national brands' (and their dealers, distributors and affiliates) have local advertising needs that could greatly benefit from carefully planned and researched integrated marketing plans.  Balihoo's local marketing automation and services solution (which includes Facebook and email - as well as TV, Direct Mail, POP, Radio, Display, Outdoor, Newspaper, Magazine, etc.) AND co-op functionality AND a professional media team can streamline the efforts of virtually any local business owner, product distributor, dealer, etc.

Optimizing your facebook and email effort is just the tip of the iceberg! Explore the possibilities by scheduling a demo today!

Beersbee: Power Tools and Local Marketing

Friday, August 6, 2010 by Chuck Mitten

At our company campout last weekend, I was introduced to a great new game called Beersbee. It's a combination drinking/skill game that's pretty simple, and a ton of fun. IMO, it's a great addition to any backyard barbeque.

Nail gunInspired, I was walking through Lowe's the other day in search of some PVC pipe to build my own Beersbee kit, and I just couldn't resist the pull of the power tools section. You don't really need power tools to make a Beersbee kit. I just dig tools (pun intended). They help you do stuff. And when you have exactly the right tool for a job, it's an awesome thing. The right tool makes you powerful. Smart. Efficient. Productive. Confident. You get the job done quickly, and done right.

I was in the process of admiring a table saw that I know I can't fit in my garage when I realized: Balihoo really provides power tools for local marketing automation. And a lot of the brand builders that I talk to on a daily basis are closer to hacking things out of stone (from a marketing perspective) than they are to using power tools.

The cool thing is that when they see how easy Balihoo makes ad building (across all media types), co-op management and local media buying and marketing execution, they get that same feeling I quietly enjoy at my local hardware store: Zen. Appreciation of the artful match of purpose and capability.  

Balihoo: Top quality power tools for Brand Builders. Give me a call, post a comment or drop me a line. I'd love the opportunity to show them to you.
 
And if you want to know what it means to trust your power tools, check out this amazing video.


The User Experience Journey

Friday, August 6, 2010 by Kevin Donaldson
Software user-experience development is a journey.  It's a lot like the journey of life -  ideally you continue to grow and learn along this journey, and in the case of user experience, our objective is to make our users feel like marketing super hero's when using our software.

Balihoo's local marketing automation platform is considered to be one of the best in the industry, however we're always looking for ways to improve it. Not only do we continually add new functionality designed to benefit affiliates' with local store marketing needs -  but we consistently strive to ensure that the product that we're currently offering continues to evolve and surpass our end-users expectations.  A current enhancement that we're working through is in our cross-medium ad builder process and the user transition from the creative template library into the ad-building and ordering process.  

In the first image below you will see our current creative details UI that was released earlier this year.  This screen is a 'jumping off' point for building an ad and then taking an action with it.  While this iteration was well received over the previous release, we knew there would still be plenty of room for growth.  However one of the best ways to evolve a product is through real user activity! 



Since the time it was deployed we've been gathering feedback through conversion analytics, support calls, training demos and 3rd party usability tests to look for mis-steps in the user experience.  Below is an in-progress version of our next iteration.  There are some minor tweaks we still want to make but overall this new concept tested well prior to development and we are now in the process of building and deploying this to our customers in the next two weeks.    If you look at both screens you'll notice a number of changes including:
  • Increased use of thumbnail images over pure text
  • Clear link between the version you are looking against the assets you have stored
  • Available actions are all available in one place (as your eye scans to the right (always above the fold))
  • Clear focus toward action (i.e. conversion) on the page
  • Clear differentiation between the master template and versions the user has customized



This is just the tip of a much broader initiative as we work to further simplify the local marketing execution process. We're excited to be continually moving forward to better serve our customer base. Stay tuned for more peeks into this process over the next few months!




The Local Advertising Monster

Wednesday, August 4, 2010 by Brian King
I'm a big Seth Godin fan. I've read numerous books by him and I tend to follow his blog fairly closely. Last week he had a great posting about facing a monster head-on. The simple blog read as such:

Every monster has a big shadow

That's what makes it a monster.

In fact, when you look the monster in the eye, when you calmly and carefully inspect the actual monster, you discover that he's not so bad after all. It's just the shadow that's scary.

When in doubt, ignore the shadow.

This short and simple blog is a great analogy for those launching a local advertising campaign for the first time. I see so many small businesses afraid to take the necessary step forward to implement targeted local advertising because they are scared of the daunting task that lay ahead. Well, I've got good news! Balihoo's local marketing automation platform is designed to help your distributors, affiliates and franchisees "ignore the shadow" and face the monster head on to achieve long-term sustained business growth through strategic local marketing and advertising.

Find out how Balihoo's innovative local marketing automation solution can help your organization take on the monster!

Purpose Built

Monday, August 2, 2010 by Pete Gombert
 I was riding my cruiser to work today on another gorgeous morning in Boise and was appreciating how wonderful the experience was.  As I thought about why I enjoy riding into work every morning I went through the usual list:

1.  It's a really nice ride down the old tree lined streets of the North EndMy Cruiser
2.  It's great to get fresh air in the morning
3.  The weather is usually amazing
4.  Nobody can bother me :-)
5.  It is super relaxing

But then it struck me that the one thing that made all of the above possible was the bike that I was on - the cruiser - its purpose built to be a relaxing ride for short distances.  I have two other bikes, a Mountain Bike and a Road Bike, but the cruiser is what I take to work every day.  The road bike is faster and would get me to work quicker.  The mountain bike is better in the snow, but I greatly prefer the cruiser in all conditions and that is because it is purpose built to be relaxing and the ride to work is my time to relax.

Now you may be asking "how does this relate to Local Marketing Automation?" - well the reality is that other than Balihoo, there are no other platforms that were purpose built for local marketing automation.  There are ad builders, and there are co-op platforms, that are all purpose built to facilitate parts of the local marketing continuum, but no other solution that can deliver all of the required elements to drive demand in local markets.  

So when you are looking for a solution, no matter if it is a bike or a LMA platform, my take is to ensure that you find the one that is purpose built for your needs - it makes all the difference.

Start by downloading one of our whitepapers or case studies.

The Czech Dream

Friday, July 23, 2010 by Phil Bear
Back in 2003, roughly 19 years after Ghostbusters was released in theaters, two Czech film makers decided to create a documentary about the impact that marketing has on people.

Their plan was a simple one. They would create a massive marketing campaign for a shopping mall, and its grand opening. Sounds pretty straight forward right? Wrong! The M Night Shyamalan twist? The shopping mall never has, and never will exist.
 
Nailed it.
 Looks like you just got air-bended.

The two film students, Remunda and Klusák, created a marketing campaign around a shopping mall called Czech Dream that was going to "open" a month from the start of the campaign. We're talking radio, television, billboards, and even a jingle.

When the big day arrived, and the 3000+ people that showed up for the opening walked towards the front of the "store", they found this:
That's right - a giant fake building.
Bruce Willis is dead the whole movie!!!!
 
The point the filmmakers were trying to make, from my perspective, is that we are all suckers for marketing. But it didn't strike me that way. Throughout the movie they are advertising legitimate items (be it celery, chain-link, or Ghostbusters on BluRay) with a good price. People in the film were showing up for specific things. They didn't show up because they were brainwashed by marketing.

Consumers have something they want or need. Marketing effectively is the way in which brands reach consumers about the products they, the consumer, already have interest in. How is this a bad thing? If anything, it needs to be done better. Enter Balihoo.

Balihoo, and our local marketing automation software, give national brands the ability to reach consumers that have a want or a need. We provide brands with the tools (via our sweet ad builder software), and the knowledge (thanks to our incredible local media planning team) to market national brands through local stores and dealers effectively.

Lastly, if you only watch one Czech movie about two film makers who market a make-believe shopping mall, Czech Dream is definitely the movie I recommend.

Guest Post - The Best Strategy for Implementing Marketing Strategies

Thursday, July 22, 2010 by Shane Vaughan

The below is a guest post from Evan Hackel at Ingage Consulting


The Best Strategy for Implementing Marketing Strategies

By: Evan Hackel

Evan Hackel is the President and Founder of Ingage Consulting, www.ingageconsulting.com. Throughout his twenty-five year career, he has seen the need not only for improved engagement but for an understanding of why engagement plays such an important role in any organization. Evan’s company works closely with the managers and leaders of franchises, co-ops, and buying groups, to help them improve their business practices. Evan can be reached directly at ehackel@ingageconsulting.com.

When it comes to creating and implementing marketing strategies, many organizations miss an opportunity to engage their franchisees, members, or dealers. Companies tend to just present their ideas and force them down through the ranks until they have reached everyone associated with the brand.  Of course, this is not really the case, but it can seem that way to recipients of the information.  Implementing a marketing strategy this way will only cause franchisees, members, or dealers to resist the new strategy. In general, people like to feel like they are part of the process; therefore, they respond better when made part of the process.  

In an ideal world, franchisees, members or dealers would enthusiastically implement all new marketing programs. In high performing organizations, there is a lot of enthusiasm and support for new ideas; communicating is relatively easy and there is a great deal of support for the efforts. But for many franchises, co-ops, and dealer networks, it is difficult to implement the organization’s message effectively and in the way that management would like. 

One of the best ways to ensure that a marketing plan is received and executed at all levels in the organization is to first, involve franchisees, members, or dealers in advertising groups. These groups, local or regional, will represent what is happening at the consumer level and be networking groups to support each other in marketing efforts.  It's important to use the groups to get input on the development of marketing plans; not just as a way to roll out a program.        

Another way to engage franchisees, dealers, or members in carrying out your marketing strategy is to create a brand council. The brand council should be involved in aspects of your marketing efforts.   Participants of the brand council should also be included in presentations to the franchise, cooperative, or dealer group and should be invited to write articles and postings for the organization’s intranet.   

Engaging your members, dealers, or franchisees in implementing marketing strategies is just the first step. Organizations need to measure and understand the success level of their current marketing plan. Of course, this is a good practice for understanding success and helping with future marketing efforts. It is also important for franchisees, members, and dealers to know that you are paying attention to them. Many of you, I am sure, are tracking sales, which is good, but there are intangible aspects to marketing efforts that sales alone can't measure. Having a report form for your franchisees, members, or dealers to feel out their opinions on the marketing efforts is a good way to get high-quality feedback. Ask questions like: how could we have made this local marketing effort better, would you do this again in the future, and did customers mention the local advertising? Report back to the group what you have learned. This will show you have been listening. 

The reports are a great idea for improving engagement and for learning more about the success of your marketing efforts, but you are likely to only get a small sampling of reports back. This is okay; the fact you are asking for feedback and that everyone knows they have the ability to share their thoughts and ideas is what's important.

How do you engage your franchisees, members or dealers with your local marketing plans? Do you have a brand council and how does that work? How do you get feedback on success?



Thanks for the guest post Evan, good information.  I couldn't agree more, specifically when you're dealing with Local Marketing Automation.  Whether implementing a new local advertising campaign, new channel marketing software or new local marketing software, it's critical to get buy-in from the key players.  This will be one of the key drivers of adoption - in fact, we recently wrote a whitepaper identifying the key issues with adoption around new co-op marketing solutions, you can download it here

Eliminate Dumb Contacts with Customers

Wednesday, July 14, 2010 by Kevin Donaldson
Last week I attended a forum hosted by our VC partner - Openview on customer service with a couple members of the Balihoo team.  It was presented by Bill Price from Driva Solutions and co-author of the book 'The Best Service is No Service'. 

One of the tenants of the book is: Eliminate Dumb Contacts.  With this came a clever, yet simple framework to think through this concept in your organization.



The concept here is to classify your customer contacts (phone, chat, email etc) against the above matrix based on two axis: customer value and company value, to classify and determine a course of action on undesireable contacts. 

For instance, if you have many contact cases with customers asking for the status of an order, this would be considered an irritant to the customer as well as something the company would rather not have to do, and therefore falls into the bucket of 'Automate'.  Simple enough right?  Not always and I suggest you try it in your organization with real examples.  It will provoke some interesting discussion. 

As i worked through the model myself, here are a few additional insights that came to mind:
  1. The size and maturity of your organziation may cause a different contact classification on the company value axis (Simplify vs Eliminate)
    • In early stage companies your main goal is to try and find a market, and solve a problem, so many things that would be an irritant and up for elimination in a mature company could be very high value to a startup and something you want to understand better and simplify.
  2. Customer types vary by company maturity
    • Startups, especially in the technology space typically make their first sales to innovators.  This group of customers has different attributes than the standard majority and because of their excitment over your product is less likely to be irritated by new and somewhat untested products/features.  Minimally this allows things to sit in the simplify bucket longer (see point #1) and even might allow some items to exist in the leverage bucket at least for a period of time.
  3. Contact categorization will not be static.  For instance, something may start out in the automate bucket (eg - automating the ability to find out order status) but contacts may continue moving into simplify (we have automated it, but its not easy to find)
There are likely many other insights you can draw from this as it applies to your unique business but as with other frameworks, the primary advantage is that it supports a vibrant and directive discussion around the topic of customer contacts.

Arrested Development Alumni Go Viral

Monday, July 12, 2010 by Phil Bear
I'm a big fan of the too-soon-canceled Arrested Development. Not the music group either. It is funny. It references pop culture. It is post modern. It is a family show that brought together families, and helps remind people what life is about. Sound familiar?

Thanks for checking out my secret text, by hovering your mouse over this picture.
 
 It's basically like Little House on the Prairie, is what I'm getting at.
 
So when I heard through the grapevine (old fashioned term for reading something on the internet) that a couple of the besties from Arrested Development were creating their very own viral marketing company, I was pretty excited



I've probably watched this video like 100 times. But the question that the fellas from DumbDumb  (and ulitmately Orbit in this case) have to ask themselves, is it effective in terms of marketing. 

It seems that in order for a brand to market themselves effectively in modern times, they have to pull out all the stops. Gone are the days of relying on print and radio alone. In the above example, Orbit has gone way past standard marketing strategies of "the olden days" to reach their audience.

Balihoo has created local marketing automation tool for this exact reason. We know that in order to reach the largest audience, brands and franchisees need a local marketing strategy that encompasses media of all types. Our platform currently encompasses over 12 mediums, where local dealers and franchisees can access, customize, and execute local media planning from one easy to use place.

I'm curious, of the viral marketing that our readers have seen, can you recall the product they were promoting?

Come on!




Freedom

Friday, July 9, 2010 by Chuck Mitten

Ever think about what it means to be free? On this week shortened by our observance of the 4th of July holiday, I figure it's worth a neuro-cycle or two. I'll start by offering my sincere thanks to all our men and women in uniform for your sacrifices.  



Now, the concept of "freedom" can go in a lot of directions, but I'd like to spend a second talking about freedom of choice. One of the beauties of life in this great nation is that we get to choose: What to write... What to read... Where to live... What to drive... Ultimately, a lot of your and my freedom comes down to choosing how to spend our money. After all, isn't economic freedom really just the ability to use our time and ingenuity to create buying power, and then wield that power to get what's most important to us?

All that wonderful freedom creates a challenge, though, when it comes to effectively communicating with those free-willed (or is it willy-nilly?) consumers as they gleefully make their local choices. As business people, we want to *influence* those choices. We want those emancipated masses to choose... well... Us. But they're all thinking about themselves, and making decisions based on their individual values and preferences. So what actually compels each consumer to act -- to pull out his or her wallet and part with their hard-earned money? That, too varies immensely.

The way I see it, Balihoo's Local Marketing Automation platform is *entirely* about that freedom and variety: We provide the marketing software tools and services that enable national brands to maintain precious brand integrity while simultaneously empowering local affiliates (dealers, distributors, franchisees, etc.) to execute the marketing that is most likely to entice the unfettered consumers in their neighborhood to actually buy something. We literally make it easy for local marketers to grow their business by getting consumers to choose them. That, my friends, is a beautiful thing...

Balihoo. We're all about freedom. And we wouldn't have it any other way.

God bless America.
 

Determining the ROI of Local Marketing Automation (LMA)

Wednesday, July 7, 2010 by Pete Gombert
In today's economic climate, Return on Investment (ROI) is more important than ever.  Companies are running so lean that every penny is being examined to determine just how much it is contributing to the bottom line - and that is just as it should be.

So it naturally follows that when a company is evaluating a local marketing solution they should be heavily focused on ROI.  

At Balihoo we think that there are several factors that contribute to the overall value of a local marketing program, and all need to be considered when calculating ROI:
  1. Reduction in local production costs - This is the value that is most attributable to Ad Builders that allow a local affiliate to customize an ad template without the use of a creative resource.  By leveraging these tools affiliates can reduce their local production costs by up to 90%.
  2. Increase in brand integrity - This is the secondary benefit of a good Ad Builder.  Because ads are templated and the customizations can be designed to be in compliance with brand guidelines, the brand can rest assured that their investment into developing their brand is not degraded through rogue local implementations.
  3. Reduction in local execution costs - If the LMA solution allows for execution across all media types, the brand can leverage their scale to greatly reduce execution costs across different media.  The economies of scale reach across transactional mediums such as direct mail, e-mail, SMS, Newspaper Circulars all the way to negotiated traditional media costs on a local level.  If the LMA solution selected does not offer full execution across all media types, this element of the calculation can be eliminated.
  4. Improved local marketing execution - A great LMA solution will help to guide the users through a combination of training, professional assistance and in application education to become a better local marketer.  While the first couple benefits of the ROI calculation are great opportunities to reduce costs or negative impact on branding, this element can have the biggest impact on a local marketer's business.  So much of marketing today is waste, and the marketing landscape keeps getting more confusing, which is adding to the waste.  If your LMA platform can help to remove some of the confusion, and direct your affiliates to more effective marketing techniques, the impact on ROI can be dramatic.
  5. Affiliate adoption - The final component of the ROI calculation is determining affiliate adoption.  All of the factors listed above are dramatically impacted by how many of the local affiliates take advantage of the opportunities afforded to them through the LMA platform.  You can create the best program in the world, but if the program is not adopted, then it will have almost no impact on your business and will certainly not deliver ROI.  This is typically the largest missing piece of any LMA effort.  In order to drive adoption the brand must invest in training, useful templates, strong co-op programs, and education.  
By building a model with these factors, it is fairly simple to construct a well-defined and easily understandable ROI model for your LMA program.  If you are interested in some sample ROI calculators and the methodology behind them, please comment on this post and I would be happy to provide you with the information. 

The Frenchman: Word of Mouth Advertising

Thursday, July 1, 2010 by Betsie Richardson
Working for Balihoo, a company that focuses on local advertising, we look for signs of success all around us in our little town of Boise, Idaho. Let me tell a short story about word of mouth advertising performed by a certain Frenchman.

On a lovely blue sky evening in this fine downtown, after consuming some locally brewed fair at The Falcon, I happened upon a middle-aged man sitting at a table with mouth-wateringly delicious baked something-er-others displayed in front of him. I then noticed the cash box and realized these brilliant edible charmers were for sale. And then he spoke.

The eloquence that left that man's tongue still rings in my ear. "Mademoiselle, would you care for a sweet baked roll? I would love for you to enjoy this. Two dollars if you please." The man has hair to his waist, a neatly trimmed beard and donned a chef's jacket and hat. Was he pulling my leg? An Idaho-born actor with a knack for European accents? Questions aside, I had emotionally committed to the sweet roll before realizing I had only 20 cents on me. That Frenchman offered it up anyway with a huge smile on his face, asking only that I let others know of his product.

As it goes with Balihoo culture, we enjoy sharing such stories. Nico, one of our internet advertising designers, is hosting an art show at a coffee shop downtown tonight. I emailed the company asking that everyone not only attend her show, but visit my long-haired, French-accent bearing pastry chef. This sponned an email chain between people across the company - some admitting sitings of the Frenchman, others claiming he bakes in a top Italian kitchen after hours, others simply wanting his location and hours of operation.

Looking for more local marketing ideas to help your franchise or franchisees? Download Balihoo's white paper on Local Marketing Automation.