Hey Square Readers,
We’re getting close to the end of Worth Every Penny by Sarah Petty and Erin Verbeck, and wrapping up the material this week. So far we’ve talked about the basics of the Boutique framework, the benefits of branding, providing incredible offerings and customer experience, and pricing them accordingly.
Now, let’s dive into section 4 of the book: Marketing & Selling.
Marketing
“When you’re boutique, your marketing efforts must be boutique as well. Boutique marketing is focused on reaching customers who aren’t price sensitive, customers who want and appreciate all the extra things you do to make their lives better.”
The authors say that it’s not enough to be a boutique business, you also have to market like one. Old school mass marketing approaches like mailing postcards don’t work for boutique businesses. If you promote yourself like a big chain, you’ll attract price-sensitive big chain customers. Instead, it’s better to go high-touch, developing strategies to build a relationship with the right clients, in a personal and connection-driven way. It’s not just what you say, it’s how you say it.
Educate, don’t sell: By positioning yourself as an expert and teaching your customers, you build credibility, make yourself a reputable source that they want to buy from, and justify the value behind your higher prices. You can do this by explaining your methods one-on-one to your customers, writing blog posts and email newsletters, being featured on local media, creating explanation videos on social media, speaking at conventions, and more.
Build a Database: Keeping track of who your current and prospective customers are is essential to relationship building and being able to market to them. Having a CRM (Customer Relationship Management) system is extremely valuable, keeping records that can help you better sell to them. This should include their contact information, what and how often they purchase, relevant details about their lives, and more. Build this out by networking in the community, building co-marketing partnerships with other businesses, donating gift cards to local charity events, running your own events and fundraisers, having a signup list on your website, and of course adding and updating customers automatically through your POS system.
Market for you: Think of your own consumption habits, and market to someone like yourself. If you just throw out mailer advertisements, don’t send them out for your business. If you wouldn’t want someone randomly calling you, don’t cold call others. But if you would be impressed by a handwritten letter, or a Surprise and Delight package, then try that. If you would want one of your favorite businesses calling you on your birthday, then try that too. Promote yourself in the places and ways that make sense for your ideal customer. Anything you do should be high-tough, creative and high quality, drive an emotional connection, tap into the senses, and stand out from others. Don’t be afraid of spending a little or even hiring a professional.
Nurturing
Use that customer database you built to categorize your customers based on how much they spend, how often they come, how much they refer new customers to you, and even how much they complain and take up your time. You can then use these categories to treat them accordingly: rewarding the best clients, reconnecting with lapsed ones, and spending less time on the draining ones.
The authors write, “By categorizing all your clients, you’ll quickly be able to decipher who the best ones are… about 80 percent of your business will be driven by 20 percent of your customers… if you focus on treating the top 20 percent of your clients better, you can expend less effort and reap fantastic rewards. You don’t need to sell to everyone… Find your best customers, treat them like gold, and you’ve found a strategy that leads to customer loyalty and mega-success.”
You don’t necessarily need to fire the other 80%, but definitely treat your top 20% better than the rest. The authors provide some great ideas about how to actually do this. You can set up exclusive shopping hours, sales, workshops, and other events just for your top clients, or at least give them first look and early access to these offerings. Treat the very top customers to a better experience without asking for anything in return, just to show your appreciation. Communicate with them personally on social media as friends and humans, not in a selling way. Pay attention to things that are going on in their lives and send random-acts-of-kindness handwritten notes and personal gifts when they do.
Selling
“Your job is to create demand for your offerings by sharing the benefits to your clients and prospects… find out how your offerings fill your clients’ needs and point out the solutions you offer… solve problems in their lives.”
The authors say that selling the right way is done without pressure, manipulation, convincing, badgering, or making people buy things they don’t want. Boutique selling happens organically through education, building rapport and a relationship, helping to solve their problems, and delivering high-touch engaging experiences. Focus on the benefits, ask and answer questions, spend time with each customer, be confident about your value and prices, be okay with losing a sale, be proactive, operate with honesty and integrity, and always remedy and fix when things go wrong.
Growing
Business growth can happen through opening another location or expanding your customer base, or just by evolving to always be the best version of your business possible. The authors have a set of rules for growing while maintaining the Boutique framework.
They recommend growing by improving your offerings, always looking for the next best product or service, and implementing new ways to add value and thrill your customers. They recommend constantly analyzing everything you do, both existing and new ideas, to make sure it serves and fits your business and brand, is appealing to and helps your customers, and improves profitability rather than just adding extra risk and cost. They emphasize educating yourself on best practices and latest trends through reading, attending conventions, and finding a mentor who can steer you in the right direction and avoid wrong turns.
In our next and last discussion thread, we’ll talk about putting all of this together and the impact it has had on your business so far.
We’d love to hear your answers in the comments:
- What marketing practices do you currently use that you’ll stop? Which will you start?
- How can you position yourself as an expert and educate your customers?
- How can you market your business in a way that stands out and creates an emotional connection?
Don’t forget to:
Happy reading,
Pesso
