Buzz Builder

Penzeys Spices Builds Buzz One Baker's Dozen at a Time

When I walked into Penzeys Spices in the Pearl District of Portland, part of a national gourmet spice store chain, I was amazed to see such an incredible variety of products. But, I didn't have time to linger since our boisterous 2-year-old was drawn to the multi-colored bottles of spice like a moth to the flame. I barely prevented her from pulling a rack of cinnamon to the ground before we had to beat a hasty retreat.

Recently, I had a much calmer visit to Penzeys Spices sans child that provided a wonderful lesson about a how to engender positive word of mouth. I enjoyed wandering around the well-displayed showroom. The colorful spices reminded me of our trip to Turkey last year when we had the chance to visit some terrific spice markets. However, this time I was able to understand what I was seeing since the signs were in English. I appreciated how each artful display of spices had a wide container that could be opened so you could feel and smell the contents. I wasn't planning on buying anything but the terrific smells got the best of me.

When I went to the sales kiosk to pay, I complimented the clerk on the store, and I asked how they managed to have such high-quality spices for sale at a fraction of the cost of most supermarkets. He then launched into the fascinating history of the business and how the Penzeys family wanted to create a more direct conduit from spice grower to consumer. By cutting out the spice middle men, Penzeys Spices is able to offer better prices. Also, since they build close relationships with the spice growers, they are able to get the first crack at many of the finest spices. In contrast, major spice companies are much less relationship driven and purchase spices in bulk based on price more often than quality. 

I was so impressed with this well-informed explanation that I told the clerk to sign me up for the catalog. He did so gladly and told me that I was making a wise decision since the company oftentimes has free product offers in the catalogs. He mentioned how the current catalog gave subscribers a coupon for a free one ounce bottle of minced garlic. He then described why the minced garlic was so special and how I should really try it.



When I got home, I was delighted to find that the clerk had slipped a one ounce jar of garlic into the shopping bag with my purchases. Sure, the garlic only cost $2.79 but it made a big impact. I can't recall the last time I received the "baker's dozen" treatment (the old habit of giving a customers an extra item when a group of products is purchased). Yes, I was so impressed with the Penzeys Spices' selection, quality, merchandising, and sales support that I would have gone back at some point. However, by explaining the virtues of the minced garlic and then slipping a jar into my bag, the clerk at Penzeys Spices guaranteed not only a loyal customer but one that will share with friends what a unique store it is.

If you have a "baker's dozen" gift that you provide customers, is it effectively creating buzz for your business?

How Connecting Personally with Customers Builds Positive Word of Mouth: A Lesson from Belly Restaurant in Portland

Do you feel like the recession is really over? That seems to be the message I'm hearing from most economists but that not what most business owners are telling me. Recently, I've spoken with entrepreneurs struggling to just make payroll and keep their companies going.

With tight budgets, I've also heard owners and managers say they can't afford to market their products or services. I find that belief sad because they're missing out on tremendous opportunities to grow their business using low-cost yet effective word of mouth marketing techniques. 

Recently, Belly Restaurant in Portland, Oregon taught me a valuable lesson about how connecting personally with customers is an incredibly powerful way to build positive word of mouth. If you want me to share more word of mouth marketing lessons like this one via video, please let me know.

Also, how do you connect personally to your customers so they stay loyal and recommend your business?

 

Create a Community not a Commodity to Grow Your Business

Note: the below post originally appeared as an article in my free Buzz Bulletin eNewsletter. To receive future issues delivered to your inbox, please sign up here.

Websites selling discount coupons for goods and services like Groupon have generated a lot of buzz. But, are online coupons the ticket to success or are there better ways for businesses to generate repeat and referred customers?

In a July 2010 article, I expressed doubt about Groupon and online coupons. Based on what I’ve been reading and hearing from entrepreneurs who have sold discounted products and services through Groupon, my initial concerns were justified.

In a recent interview on The Charlie Rose Show, Groupon’s CEO Andrew Mason said, “We are going to be the savior for small business.” In that interview, Mason stated that Groupon was “able to give one business half the number of customers in one day that the business had previously had in the previous 25 years combined.”

Yet, Groupon customers come at high price. Groupon typically offers coupons that cost half the value of the good or service being provided. And, the product or service provider splits this reduced amount with Groupon on a 50%-50% basis.

For many businesses, this means that an item purchased with a Groupon coupon generates less revenue than it costs to produce the good or service. On 1/7/11, The Wall Street Journal ran a story about U.S. Toy, a retailer with eight toy stores across the country, which offered $20 worth of merchandise for a $10 Groupon certificate.

Jonathan Freiden, co-CEO and president of U.S. Toy, experienced two problems. First, U.S. Toy had hoped Groupon purchasers would buy an extra item once they walked into the store. But most bought only the minimum $20 worth of merchandise to redeem the offer. Taking into account Groupon’s cut, U.S. Toy generated only $5 for every $20 in merchandise sold causing it to lose money on about three-quarters of its Groupon-related sales. Second, Freiden said about 90% of Groupon purchasers were already existing customers of his store.

OCSC Sailing, the country’s largest single-location sailing school and one of our clients, had a similarly underwhelming experience with online coupon providers. Anthony Sandberg, founder and president of OCSC Sailing, said “Nearly everybody who purchased an online coupon was looking for a deal. Once they used their coupons for an introductory sail, we never saw them again. They were off to try the next discounted adventure.”

Anthony believes that online coupon companies commoditize products and services. He feels that businesses would be better served by growing a community of loyal customers. In Anthony’s 31 years of business, these are some tactics that have worked well for OCSC Sailing that other businesses can adapt:

 1. Make customers feel special

Anthony or his business partner and OCSC Sailing CEO Rich Jepsen make a point of personally welcoming all new students. “People are excited to talk with the owner of the business – especially when they are first-time customers.” Of course, this makes perfect sense. But, I cannot recall the last time that an owner of a business I frequented went out of his way to make me feel special. What steps do you take to make new customers feel connected to your company?

 2. Check-in on a regular basis to ensure satisfaction and increase referrals

During the time that a student is taking classes at OCSC Sailing, somebody other than the instructor will interview him or her to make sure that the educational experience is meeting his or her expectations. If the conversation uncovers that there is dissatisfaction, OCSC Sailing will try to correct it.

Upon class completion, a club manager shares with the student that the school doesn’t advertise and instead relies on positive word of mouth to grow. This has generated more qualified referrals than any online coupon or other marketing program. It also inspires positive comments on influential customer review website like Yelp where OCSC has 40 reviews and the highest rating of five stars. How do you ensure customer satisfaction and referrals from customers?

 3. The difference is the cherry on top

Anthony believes that little extras turn satisfied clients into a company’s best salespeople. What sets OCSC Sailing apart from its competitors is a strong sense of community. Anybody who has taken a class at OCSC is invited to participate in free events like lectures and BBQs. Or, they can participate in a “Sign-Up and Sail” program that pairs people looking for sailing companions. These offerings build community while providing students with something that other sailing schools don’t. What are the little extras you do for your customers that keep them coming back and referring their friends?

This year, I would like to create buzz for readers of this blogs as well as continue to share tips and techniques for boosting your business through word of mouth marketing. If you’ve got answers to the above questions or other creative marketing tips, please contact me and you might be the next company featured in this blog or The Buzz Bulletin eNewsletter.

Blogging Regularly Is Like Eating Spinach: You Know It's Good for You But It's Hard to Do Consistently

Blogging regularly is like eating spinach. You know it's the right thing to do to build visibility and credibility but it's so easy to find excuses not to do so on a regular basis. To inspire me to keep on blogging, I've found myself bookmarking posts about remarkable people who have achieved incredible success in life when they had ample opportunities to stop trying. A recent post entitled "What Your Excuse for Not Achieving Your Goals?" on Copyblogger, an excellent blog for learning how to increase website traffic, links, subscribers, and profit, provides inspiring examples of famous people who pushed through difficulties to succeed. It motivates me to stick to my blogging and other New Year's goals when I start thinking about reasons to do otherwise.

If you're a blogger, what helps keep you going strong?

A Critic Speaks "To Do in 2011: Shoot All the Social Media Experts"

Happy New Year! Since I know that many of your are still planning your social media campaigns for 2011, I check out this thought-provoking post from Rich Meyer's New Media and Marketing Blog on why you should take what social media gurus have to say with a huge grain of salt. I appreciate Rich's no-BS stand when it comes to evaluating the advice that you receive. At the end of the day, social media is only as useful as it gets your clients and prospects to take action that helps your business meet specific objectives that you can track. How do you evaluate the quality of advice you get from social media experts?