Analyzing results of Customer Satisfaction Surveys

Here are some interesting observations from Mark David Jones, President of Small World Alliances, and former Disney man:

Dissatisfied customer damage

You think 5% dissatisfied customers is acceptable? Think again. Consider that a dissatisfied customer broadcasts his dissatisfaction 20 to 30 times. And that word-of-mouth is the most powerful form of advertising.

To get the damage done by dissatisfied customers: Multiply your number of annual customers by the percentage of dissatisfied customers. Multiply that number by 20 or 30 for the number of negative advertising images you generate in a year. And remember that w-o-m weighs more than paid advertising.

Extremely satisfied customer earnings

On the other hand, a customer who is merely satisfied is not an advocate. For someone to be your advocate and generate positive word-of-mouth for you, s/he has to be "extremely satisfied". How many "extremely satisfied" customers do you have each year?

If your advertising budget is restrictive, as is often the case in a small market, you know where to invest your money for the most efficiency.

Mark David Jones gave a workshop in Curacao last Friday during CTO's 5th Tourism Human Resources Conference.

Take the longer survey “Participating in the global economy through knowledge sourcing and providing”

If you are really interested in the topic and can spare a few more minutes, please also take the survey. If you can, please also ask a colleague, client or supplier to do so.

Knowledge Service Provider http://1236735131.provideknowledge.sgizmo.com/

Knowledge Service Sourcer http://1236735131.sourceknowledge.sgizmo.com/

Thank you in advance. If you want a copy of the report, be sure to include your email address.
Please feel free to leave any comments. The survey is in its beta phase, so I can use comments on the questionnaire also.


Some background

Reason for the poll and survey

Globality: everyone wanting to sell everything, including their knowledge, to anyone anywhere in the world.

Having worked across the Caribbean from Bermuda to Haiti and much of what is in between, I have developed an academic interest in the topic, especially with regard to small states. Can we apply strategic/business innovations produced in Curacao to St Lucian, Maltese, Andorran, Bajan, Cape Verdian businesses, markets and economies and vice versa?

The topic also interests me with regard to economic policies of small states. How can small states benefit from the globalization of knowledge?

Research Question
To what extent do KSP’s sell their services across borders, thus participating in the global knowledge economy? This with particular interest to KSP’s in small ststes/territories/markets and/or emerging markets

What are Knowledge Service Providers (KSP's) and Knowledge Service Sourcers (KSS)?

For the purpose of this study KSP’s are individuals or companies such as advisors, consultants, designers, health care providers, trainers, researchers, recruiters, lawyers, accountants, even artists, etc., in the broadest sense of the word.

KSS’s are all those individuals or companies who buy services from KSP’s established in their market or elsewhere

What's in it for you?
Since participants can elect to receive a copy of the report, you will get an insight into:
1. If you are ahead or behind the curve in terms of providing or sourcing knowledge across borders
2. What the key success factors to sell your services internationally

Take Poll: do you participate in the global knowledge economy?

I am writing a paper and want to know to which extent knowledge service providers (KSP), i.e. consultants, recruiters, trainers, designers, analysts, etc., have international engagements, and thus participate in the global knowledge economy. I am particularly interested in small KSP’s in small and/or emerging markets.

If you are a provider, please follow this link to my Linkedin poll http://polls.linkedin.com/p/35300/cpurr.

If you hire consultants, use this link http://polls.linkedin.com/poll-results/35302/cmmyp.

If you are really interested in the topic, please also take the survey
Knowledge Service Provider http://1236735131.provideknowledge.sgizmo.com/
Knowledge Service Sourcer http://1236735131.sourceknowledge.sgizmo.com

For more info
http://smallmarketmarketing.blogspot.com/2009/04/take-longer-survey-participating-in.html

Thank you, also for your comments

Marketing, advertising, public relations. What's the difference part III

Marketing and MarkStra

This is the third of a series on the difference between marketing, advertising and public relations. People often use the terms as synonyms, or are not sure what the difference is. By doing so companies like yours fail to notice and make full use of the tools available to convince the customer to buy from you.

At one point companies realize that public relations, advertising and promotion alone will not convince customers to buy or remain loyal. While many companies arrive at "marketing" at a later stage in life, it is a function that is performed before (in time and planning) "advertising and public relations". Advertising and public relations are quite explicitly just a part of marketing.

Marketing theory has it that there are more aspects that influence buyers to buy and which companies can be unique in. Conveniently, we use four (or six) p's, as follows.

• product itself (design, innovation, features, color, taste, etc.)
• price
• place. Meaning the way a product is distributed (in person, via mail, Internet, phone, etc.) and where it can be obtained. If it is a store, if the store is conducive to buying, or if products are well displayed
• promotion. Meaning public relations, advertising as well as sales promotion.

I usually add two p's. Technically, they belong under "product" and/or "promotion". But their existence and usefulness may get lost when talking about product or promotion. And how useful and relevant they are in our times!

• people. Meaning the customer care and sales potential of employees. Companies that provide a service are increasingly important. In addition, the level of service (customer care) can be an important distinguishing feature.


• partnerships. Meaning alliances your company has with others to provide a product. Think about American Airlines with Visa, several hotel chains, car rentals, etc.

At MarkStra Marketing is what we do for a living. We assist the client with determining the right product content, price, distribution channels, promotional tools, people and partnerships.

We may work with other companies to create and execute advertising campaigns, but we ourselves are not equipped to design or write copy for them. The campaigns we may create together with our partner companies are better than the average, because we have considered thoroughly ALL the other aspects that influence a buyer.

In the next post more detail about the marketing process.

Make your Holidays Caribbean Green

I suppose I am not an environmentalist in the true sense of the word, even though I do believe in giving all species, including our own, a fair chance of survival. Given the current oil prices, even a little bit of environmental action can produce great returns in our pockets.

A few months ago I made a pledge to include an aspect that has to do with the environment in everything MarkStra does. It's for the environment, but fortunately some environmental action also supports our small businesses and saves us money.

1. Carry your own reusable shopping bag or crate when shopping. Refuse bags or accept only durable ones.


2. Eco-friendly gifts? Energy saving light bulbs, shower heads, reusable shopping bags or crates.


3. Buy nothing – give a gift certificate for a manicure, lunch, some lessons, a donation. They use no raw material and help our small businesses.


4. Use simple wrapping paper. Use those colorful glossy folders marketers send you. Or use useful and reusable items: a bandanna, a nice towel, hand kerchief (remember those?), pillow case, or a storage box.


5. In the Caribbean in December there is enough green outside to bring inside. Hibiscus (kayena) and West Indian Jasmine (faya lobi) provide the red.


6. Give your Christmas ornaments a new look with a fresh coat of paint in this year's fashionable colors or with a collage of those direct mail pieces. Remember the kids.


7. If you must buy new ornaments, buy durable ones which you can use next year. Store them well.


8. Plan your meals around ingredients that are locally grown. It helps your local growers. It also uses less transportation. Did you know that in Curacao there are 24 types of fruits and vegetables that are produced locally year-round?


9. Use durable table ware. China, metal and cloth are much nicer than paper and plastic anyway.


10. If you must use paper, use plain white un-imprinted kitchen, bath, toilet tissue, cotton and the like. Why would you need design imprinted on it?


11. Recycle your glass bottles. In Curacao there are glass bins at gas stations. Remember to tell your guests, caterers and cleaning lady.


12. Turn those beautiful lights off if there is no one there to enjoy them.

Safe and Happy Holidays to all

Some of these ideas are our own. Others are from:

• the Sierra Club


• Greenpeace of Canada
  
• the government of Hong Kong
  

And tips for your office from Scotland

7 ways to use market research

Often we think of market research as a way to get insight from customers with regard to our own company. But, that's not its only use. Here are some ideas:

1. measure, rank and score yourself on issues that are important to your organization (Key Performance Indicators) or the customer (Customer Core Values). Don't bother measuring things that are not important to either you or the customer.
2. check out your competitors. So, you know who to copy (and in which way), whose customers to go after (because they are dissatisfied) or leave alone (because they are way too loyal). Maybe you are uncomfortable asking about your competitors, but an independent researcher is not. That's their job!
3. find out if the perceptions that employees have of their organizations matches the perception of customers and make adjustments when and where necessary.
4. establish a common starting point (a common data-backed assumption) in your organization with regard to opportunities. This, so that innovative ideas are not shot down or delayed just because of different suppositions. This is especially true when the decision-makers have varying degrees of experience with the issue or look at it from different angles. An example: the director and supervisor may have different assumptions. Whose is most likely to be correct? Whose is most likely to "win" without independent insight.
5. determine desired ROI. For example: Based on the research data, can you gain 5% market share? What would be the source of this growth? How much would it cost? Is it worth the effort?
6. If your organization is not yet into ROI, you can use the data to set quantifiable and realistic objectives. Example: if the research shows that you have a 50% market share, is it realistic to set an objective of 25% growth over the next 12 months? In other words, you need to know what your market share is. Otherwise you can't determine if your growth objective is realistic.
7. create a unique value-added experience. Nowadays it's not just the product that is important. It is the experience when purchasing or perusing the product, online or offline, that is. Through research (mystery shopping) you can find out what customers find a "wow" experience.

Back to school: Market Research and Corporate Strategy

It's been back to school in two ways in the past few months:

First, later today I start teaching Marketing Research at the University of the Netherlands Antilles, using the same text book I had as an undergraduate student (Aaker/Day), albeit a much newer edition. It's a real pleasure to see the difference in the 2nd and 9th edition with regard to geographical scope. The chapters on secondary data sources are also expanded to reflect the abundance of timely, easily and inexpensively available secondary data that researchers now have access to. More emphasis on cost-benefit analysis before embarking on research is also a welcome addition, especially in our small markets. And lastly, obviously, the impact of the Internet on the market research function.

It will still be a challenge to translate the concepts to our smaller market and showing students how to be creative with their knowledge given the limitations. This while reminding them that we do live in a global world and they can more easily end up doing research for larger markets (while still sitting in Curacao) than ever before.

Back to (graduate business) school days also came in an assignment some time ago where we used Product Life Cycles, Boston Consulting Group Matrices and Ansoff growth models, the stuff specialization at The Wharton School was made up of. Now we used them to examine the existing and future potential of each brand as it relates to the client's bottom line and which marketing strategies to follow to realize that potential. Given the experience I have now, I could also develop some of my own strategies. Without doubt one of the more interesting assignments recently.

I realized the increased relevance of these concepts as marketing directors try to manage product portfolios that are ever expanding with new products and line extensions targeted to increasingly smaller segments.

It also made me realize how even more relevant these strategic concepts are to small markets. Marketing Directors are inclined to take on all (or many) extensions of their brand owners in their portfolios in an effort to fulfil the desires of their customers, who have access to global information and just know there is a product "just for them" even if, in a small market, they may be the only one in the segment. What is the MD to do?

Have you stopped to evaluate:

• the added benefit of a new extension to your clients
• the added contribution of a line extension to your bottom line, given the sometimes really small segments.
• how to duly support line extensions in the long run
• how to support the growth of extensions that will be more relevant in the future with present "cash cows"

Wanted: Mystery shoppers

Because of our increased mystery shopping load, we are looking for more mystery shoppers.
A mystery shopper poses as a customer, visits an establishment, and later evaluates the product and service of the client establisment using a standard evaluation form.

Mystery shops take anywhere from a few minutes to a few hours to a few days, at varying times, depending on the client. Shoppers are paid for their efforts in cash and/or kind. It's a fun way to make extra money or get something free.

Mystery shopping, also known among others as shopper audits, and secret shops is an efficient way to:

• measure is service is being performed according to the establishment's standards
• determine training needs
• compare competitors

Shoppers must have internet access every day and be over 21 years of age. Please send an email with: name, gender, age, telephone number to info@markstra.com.

Wanted: A parachute for Marketing Advertising Communication Service Providers

Some time has passed since about 40 Marketing, Advertising and Communication (MAC) Service Providers, representing 20 companies in Curacao got together for a happy hour. It was our first time and how fun it was.

Since I was the one to send the invitations, many people have asked what my expectations were and are. Really, I wanted to meet and chat informally with colleagues I already knew and meet those I did not know. My ultimate goal, however, is to find optimal ways to cooperate so we can offer our services internationally. It is more efficient and effective for us to do so together than alone, as I have been doing in the past 12 years.

I happen to believe that international service is cut out for us. We speak (or at the very least understand) all the languages of the Caribbean region (and the hemisphere): English, Spanish, Dutch, French, Papiamentu (and even Portuguese). Many of us can easily trace our ancestry (and customs) to one ore more of the 40-plus countries our parents or grandparents came and keep coming from. Most of us have studied abroad and adopted parts of the cultures of our host country. So, we also understand the "blends" that the world is increasingly made up off "naturally". Unfortunately, when something is so "natural" to you, you don't realize its value and you don't sell it.

Cooperation also enables us to provide a better product to the client, because every one can then market their true specialty and still get or keep the client (or at least a commission). The perils of selling something one cannot deliver are well-known: you risk losing all of it.

I believe in the efficiency of free markets (so I don't believe in setting prices), and in a Code of Ethics, similar general conditions and business improvement workshops for the sector. These strengthen our businesses and prepare us to meet greater challenges. A bit of publicity is not bad either. That's our business.

In addition, if we do all of the above, chances are local clients will realize our true potential and feel (even) more comfortable recommending us to their principals or brand owners for assignments that encompass the region. Because there is nothing better than word-of-mouth. So, since most readers of this blog are local clients, I may ask: "Will you be some one's parachute into another market?"

8 tips to increase marketing effectiveness in small markets

In a previous post I mentioned my small business client Cura-Peska, the fishing equipment specialty store. Most of my work is for larger companies in small markets. And most of it is "advising", not implementing. But, in this case I found myself planning and implementing marketing activities for a small business in a small market. The biggest challenge is scarce resources (time, energy, expertise and money) and the fact that after I am gone, the owner has to be able to do it himself.

Here is what I learnt:

1. Forget advertisements in mass media. Small businesses do not have the funds to get past the saturation in mass media, or any media for that matter. The question is if big businesses do.
2. Have a unique product and/or unique promotional event. That's Marketing 101. But, how often do we really consider what this can entail? A unique product and/or a unique promotional event is NEWS. That gains free publicity. Free publicity is more credible than your paid advertisement.
3. Focus and when you think you are done, focus again. There are events that create/develop brand awareness. But, small businesses do not have the resources to create brand awareness, as some larger brands/companies (still) do. And, how do you measure if you have succeeded? The ULTIMATE goal is always to generate sales or good leads. That should be your focus. If in the process awareness is created, that's nice.
4. Narrow down your target market and use that knowledge. What is needed to generate sales? People with an objectively verifiable interest. This means that they are already fishing, and not thinking about it (you know how long people can think and do nothing). They also have decision-making authority and money to buy. If people outside of this group catch on, that's nice.
5. Know the lifestyle (psychographics) of your target market. Where do they go when they are not fishing? What time of day? Who and what do they listen to, read, watch? Which of those influences them most?
6. Try different activities that fit our target market and goal. Keep rolling out innovative activities. Then you can see which is effective and which is not.
7. Measure your return-on-investment. This is important for all businesses, but more so for the small business. There is little room to waste resources (time, energy and money). And, for a small business, it is easier to measure your ROI: just ask people which activity led them to you and write it down next the their purchase amount. I am driving my dad, the owner, mad with ROI measurement.
8. Pay attention to quality. That is, quality of the customer. Please don't get me wrong. 10 people buying 100 dollars each yields the same as 100 people buying 10 dollars each. But, let's be honest, what you really want is more of the type that buys 100 dollars each. What is his profile? What led him to you? What keeps him with you?

5 Tips for back-up plans in a small market

In small markets such as Curacao and the Caribbean, even larger corporations are often small. There is "one of each". That is: one KEY person for each function. When that person is gone, the activities stop or go low profile. What to do?

Last month my most important client was Cura-Peska, a specialty store selling high quality fishing equipment, based in Curacao. It is my dad's post-retirement activity. So, it was a father's day gift and the plug above is well-deserved.
The store has existed since 1992. A few years ago my dad spent time helping my brother build his home and went low profile with the store. This is characteristic for small businesses: when the owner is sick, becomes a parent, divorces, breaks a few fingers, cares for children or parents, etc. the business goes low profile.

In most larger companies in small market, when the key person in a department is sick, becomes a parent, divorces, breaks a few fingers, etc. the department also goes low profile.

The key is to plan for it. I searched the web for tips and found nothing. Here is my own take:

1. Face the reality. Know that there will be a moment that you (or your key person) cannot be there, planned or unplanned.
2. Prepare for shut-down. What will you do when that moment arrives? Can you afford to "shut down" activities? Can the activities be reduced? How will customers react to reduced activities? Can or should you tell customers that activities will be reduced? Do you have your priorities for the next day, next week, next quarter listed on paper in a prominent place so that someone can take over, in an emergency, if needed?
3. Prepare for come-back. What will you do to stage a come-back? What will it take to prepare? How long will it take to yield results?
4. Reach out and share. Entrepreneurs are often independent spirits and live in relative isolation when it comes to business specifics. Employees of larger corporation live in their isolated "silo's" for whatever reasons. Reach out and share some of the specifics of your job. Interest someone in what you are doing, teach them what you are doing. Remember, if nothing else, you cannot be promoted if there is no one to do the job you want to leave.
5. If you do not have a back-up in house, look for one outside. It can be someone who has time on his hands, or is flexible with her time. It can be someone who has previous experience in the industry or just with running a business. It can be someone you reach (or already have) an agreement with or just someone you have in mind (and whose whereabouts you follow). Someone to take over completely or just some responsibilities.

Bid on a mystery shop: support hospitality scholarships and outreach

The annual auction of CHATA, the Curacao Hospitality and Tourism Association, is open, with fabulous prizes. This year is also the association's 40th anniversary. If you haven't done so before, this is your opportunity to contribute to funds for scholarships and recognition activities such as the Curacao Culinary Team (which won Caribbean Gold last year), the Starts of the Industry Program and hospitality school activities.

MarkStra has donated two (2) mystery shops: A two-day shop for hotels and one for other types of organizations. Sorry, shops can only be done in Curacao. A lot of the other prizes can be bought by anyone, though.

What can you use a mystery shop for?

1. to find out if service standards are being adhered to. Are the phones being answered as agreed? Are customers greeted and thanked appropriately? Do they get the correct information? Are complaints handled in a way that customers would find pleasant? Do employees try to up-sell and cross-sell? Do customers feel that they got the product and quality that you advertised and they paid for? Do they get receipts, without asking for one? Etc.
2. to find out what the customer's total experience is, if this is good enough or if it has that "wow" factor. Do your procedures make sense? Is the atmosphere pleasant to the customer? Do employees have a pleasant attitude? Do all these issues reflect your brand's attributes?
3. to find out how your service and experience compares with the competitor. What do you do better? Can you use this as a selling point? What might you want to copy? You may not use the CHATA bid for this type of shop, though.

Who can benefit?

• any organization with face-to-face contact, including retail stores, hotels, car rentals, banks, brokers, restaurants, airlines, touristic attractions, etc.
• call centers: reservation, help desks, information
• organizations with an online presence. How do prospects experience your site? Does it convince them to buy?

What are the "procedures" if you win?

Together with you we will:

• determine what you want to know or improve
• develop a questionnaire with ample space for comments
• send a certified representative to your location, who will pose as a true customer or guest
• within 5 to 10 days of the shop we will be ready to discuss the reports and comments with you

To clarify: if the shop involves a purchase, the deal is that we will advance the purchase and that you will reimburse us afterwards.

Hurry: Auction closes Wednesday, May 2, at 11am.

Diversity in communication: an anecdote

My boyfriend has lived in the Caribbean for several years now. He is a good sailor who has sailed the Caribbean Sea extensively. He is also an accountant who works in the international financial sector. A native Dutch speaker, he speaks good English.

I am a local Caribbean woman who had a proper undergraduate and graduate U.S. education in the North East. I too have travelled extensively in what I call "my Caribbean" for my roots lie in the Dutch as well as in the Spanish and English Caribbean. I am a marketer. A native Papiamentu speaker, I speak good English and Dutch. Spanish also, but that's not relevant now.

We are going on a sailing holiday with some friends: Canadians, New Yorkers and Californians.

The - admittedly not so original - idea of making caps for everybody befell us. So, for the past week the two of us have been thinking of a slogan that fits the following requirements. Probably also in this irrational order:

• The captain (my boyfriend) should like it well enough to accept on his boat. Ahoy, captain!
• I should like it well enough to arrange the production. A little sabotage goes a long way
• The guests should find it appropriate both on vacation in the British Caribbean and when they return home, so that they will continue to wear it. At least, the two of us should think that they will
• Our Anglo-Saxon friends and their friends should understand the humor, a humor that does not have Anglo-Saxon roots. Again, so that they will continue to wear it. Again, at least the two of us should think that they will

This all given:

• our different ethnic and professional backgrounds
• the hierarchy and our position in it
• that it should remain a surprise for our friends. So, we cannot consult them. No, we are clairvoyant enough

In many ways it reminds me of the times that I have thought up or contributed to marketing communication efforts. Or of some of the efforts I see and hear today.

I have accepted that everything we think of with the caps will be "a bit off". But, on vacation, it doesn't matter. We will all still enjoy the experience.

But, what if it were important, as it usually is in a marketer's professional life? What if we didn't know if it is important? Or how important it is?

Here are some questions to ponder:

• How well does your organization handle internal diversity?
• How well does it handle diversity as it relates to the customer? Do you just translate to different languages?
• How do you ensure that you make and execute the right decisions, i.e. those that appeal to the customers and not necessarily to yourself? Or the boss? Or her husband?
• Do you localize global campaigns? How? Based on what?
• How do you convince headquarters that something won't work locally?

Yes, maybe your market is small. But, how much can you afford to get it wrong when you could and should have gotten it right?

Which market research method when? A quick guide

Often, when people think about market research, they tend to think about surveys (in Dutch: enquetes; in Papiamentu: enkuesta), with a few hundred interviews.
But, in reality there are several methods of research. In this post I will give a quick run-down of three methods and a quick guide on which to choose when.

In a small market when the incremental benefit/profit from the research findings for your organization may be limited, it is important to make the right choice. It is also important to know in advance how you are going to use the data and to make sure you have the resources to use the findings.

3 Basic Market Research methods

1. quantitative research - mostly to measure in a numerical way. The result will be a score, a ranking. It will reflect issues such as frequency, (average) amount of usage, market share, preference.
2. qualitative research - mostly to explore the breadth of opportunities, innovative ideas, possible service improvements, possible next trends. This can be done through questioning or observation (looking at how exactly customers use a product).
3. desk (secondary research) - using existing data, public or private, local or international to extrapolate, draw inferences and make forecasts.

When to use quantitative research?

1. when you already have some relevant specific information. For instance, if you already know what guests find important in a hotel (the core values), you can then measure how your hotel scores with regard to those core values.
2. when you plan to do the same research regularly in the future. For instance, if you are going to invest in customer service training, you can measure over time if and how much this has improved service. Or, if you plan to increase your rates, you can measure, over time, how this affects your occupancy and guest satisfaction and perhaps that of your competitors.
3. when producing a number, a score or a rank is important because "the boss" wants to see a number or the organizational culture expects to see a number. That's a quite valid reason.

When to use qualitative research?

1. When you have no information at all. For instance, you have no idea how and based on what people choose a hotel, restaurant or car rental. Sometimes the reasons customers act the way they do are by no means obvious or rational.
2. When you want some customer insight, feedback, suggestions, ideas with regard to innovative product or service improvements, branding, pricing.
3. When you really want to understand the customer's deeper thought processes. Qualitative research is most often an interactive conversation, sometimes in a group. Ideas, reasons, perceptions and preconceptions can be challenged, probed, explained further, enhanced, struck down. As markets become more saturated, it is the deep understanding of the customer's motives that provide ideas as to how to target the customer better. Knowing this well and being the first to know, provides a competitive advantage.

When to use desk research?

1. when you are in the orientation or initial phase of a new product or service idea. Often you have no information at all. And, since you are not sure whether the idea will fly, you may not want to make a large investment.
2. When you know that a lot of data is already available, locally or internationally. You can always draw preliminary conclusions based on data that is not your own. The Internet is a tremendous help for you (and both a colleage and a competitor for us). An often overlooked source are market research agencies. They have insight into many industries based on previous work. Yes, MarkStra does too, especially with regard to (alcoholic) beverages, health care and pharmaceutics, banking and Caribbean markets in general.
3. When, quite simply, you don't have the budget to collect your own primary data.

It's official: MarkStra strengthens alliance with Research & Research

We are happy to announce that our firm, marketing and strategy consulting firm, MarkStra, has strengthened our alliance with research specialists Research & Research of Puerto Rico, in order the provide more efficient quantitative market research to our clients.

We have provided market research services since our inception in 1995. Qualitative research (focus groups) and desk research have been our strong suits. In fact, I have been a Burke Certified Focus Group Moderator since 1998. But, our small market combined with rapidly developing technology and increasing customer expectations have made providing quantitative research at international standards a challenge.

Now we can meet that challenge. This alliance will allow us to tap into the expertise and technology of Research & Research whenever needed. We liaise with the local client. Being in Puerto Rico, Research & Research is used to doing research in the Caribbean and Latin America and to working with global brands because several Caribbean headquarters for global brands are established there. That's an added benefit.

I truly look forward to this new form of cooperation. We have worked with Research & Research and several other marketing research firms across the Caribbean for more than 10 years now. What is new is integrating our technology and knowledge to serve our clients and further our businesses. That's the strategic innovation.

What exactly is Return?

Return on investment is a relatively new term for marketers. At seminars it appears we are still trying to determine what the relevant indicators should be. But, there are some things we are certain about though.

I have heard marketeers speak of return in terms of:
"Our marketing investment was this amount and our marketing revenues (return) was this amount". Or, if it's a first effort to be accountable just "Our revenues were this amount.".

But, that is not the appropriate measure. It's not even the most relevant measure.
More appropriate would be to report or consider:

• Our marketing investment was this amount and our profit was this amount.
• What would our profit be if we had not made this investment?
• Would our profit be higher or lower had we made the investment in another vehicle?

I know, in a small market the figures might not always be encouraging. But, there lies our challenge. How do we allocate or re-allocate our marketing investments so that the figures become more encouraging?

Cold calling

About 10 days ago, the "salesperson" in me had her very first true "cold call". That is, a business call to someone I did not know, who did not know me or my company, and whose specific needs I did not know, but who was kind enough to receive me. Obviously, I had my introduction ready and well-rehearsed. True to a small market, it soon appeared that we had several common acquaintances. Of course, that made the conversation go smoother. Since, I made another few relatively cold calls. These are the best practices I liked best:

1. Send a short written introduction beforehand, perhaps by email, stating that you will be calling. By doing so, you will not catch your prospect totally off-guard. In addition, she may be able to refer you to someone else if for some reason she is not the appropriate one.
2. Do some research on your prospect beforehand. It may give you an indication ofwhat to highlight in your introduction. It also shows your interest in the company.
3. Prepare and deliver your short "introductory speech". "Short" is a key word. You want to reveal most of your information once your prospect has told you something about his challenges or needs. This enables you to tailor what you say to his needs and not put your foot in your mouth.
4. Restrain yourself. If you just went for an introduction, don't try to close a sale right then and there. Unless, of course, the prospect states an explicit need which you can readily fulfil.
5. Don't leave without asking who else might be a good person to talk to in the company or elsewhere.

Cold calls are never a lot of fun, necessary to grow your revenues. You see, the prospects that already know what your business offers are likely to consider you anyway when a need arises. It is those who do not know you that form the truly new opportunities.

I have also heard salespeople say that they don't cold call because prospects prefer to deal with providers whom they have a previous or personal relationship with. While this is true, it is also true tha potential customers are increasingly looking for the best possible product or service and are open to hearing about all there is on the market, regardless of previous or personal relationships. The challenge is up to you: start establishing those relationships!

Confidentiality and consultants in small markets

Having someone steal your idea is always a concern. This is especially so in small markets where everybody knows everybody and service providers are very likely to have worked for your competitors already (or do so in the near future).

I have had the good fortune of having clients who were rather trusting and the good sense to honor that trust. But some time ago I met a potential client who was less trusting than usual. It made me think of techniques I have seen applied and have applied myself to safeguard the client's confidentiality.

Of course you can register your idea at your bureau of intellectual properties or ask the consultant to sign a confidentiality agreement. But what if these are not appropriate at the time?

1. Mention the broader product category rather than the product itself. Consultants, marketing consultants particularly, do need some information to be able to make a good proposal for you. How to give useful information, but not reveal all before you are really ready to do so? Mention the broader product category rather than the product itself. If you are going to sell "soap", say "personal care products". Generally all personal care products face the same competitive environment, as well distribution, pricing and marketing communication challenges. So, it's okay to refer to "personal care products".
2. Give a comparison. If you need or want to be more specific, you can say "It's the Rolls Royce of soaps". That gives the consultant a better idea of the issues he may have to take into account when drawing up a proposal.
3. Ask the referee. If you were referred to a consultant by someone, discuss your concerns with the referee first. She may not be able to answer all your questions, but her experience may give you an indication of the integrity of the consultant or his organization.
4. Ask the standard question. When doing market research our first question is usually: "Does a close relative or friend work for such-and-such type of firm?" You can ask your consultant the same question.
5. Voice your concern and wait for the reaction. You can say: "This is confidential, of course." and see how the consultant reacts. Many consultants, ourselves included, have a standard confidentiality clause in our contracts and on our website. It shows they appreciate your concern and have thought about ways to address it.
6. Ask for disclosure. Ask if the consultant has done work in this area and the nature of the relationship with that previous client. You want to know if previous engagements where long-term or one-off deals. Be reasonable, though. The consultant must also honor the confidentiality of previous clients. So, you cannot insist on the previous client's name AND the type of engagement.
7. Be prepared. Read up! If you know exactly what you need, you are more likely to know whether the consultant's questions are warranted or not. Not knowing makes you more vulnerable and more easily suspicious.
8. Don't overkill. Consultants earn their living by providing good solutions AND by keeping their mouth shut. Most of us are not out to reveal client's confidential information. Data or methods that are publicly available or obtainable is not your property, even when you are the first to use them. It is also good to realize that after or even during your engagement, a consultant must be able to earn a living by solliciting and working for other clients. So, a non-compete clause cannot be as broad and exhaustive as you may want it to be.

Comments welcome. This is always an interesting topic in small markets.

What if personal relationships are the experience?

Last Saturday we celebrated the birthday of my friend Angelique with breakfast in Cafe Barista.

We arrived early, at 9 am. Within an hour the small cafe was buzzing with the happy chatter and laughter across tables of dine-in and take-away customers who all seemed to know each other and be part of the same party. I did not know that this was the Saturday morning ritual of "the regulars". But what an experience!

It also made me realize how easy it is to create (or have) a great experience in a small market, just because everybody knows everybody. It reminded me of why I preferred the Curacao carnival to the Trinidad carnival: in Curacao I knew lots of people standing at the roadside, people you danced with a little bit, posed for, or had a little chat with. That is a big part of the experience for me. In Trinidad I knew no one.

It made me wonder if a tourist or someone visiting alone or as a couple would have the same experience in our bars and cafe's or in our carnival. If not, how do we create it for them also?
How about that first-time customer, who does not know anyone and who is not yet loyal, what is his first experience? After you have invested money to lure him, after he has taken the plunge, is his experience good enough for him to come again and become a regular with a good lifetime return for your company?

Strategy and marketing in small markets?

On the internet there are many ideas for small businesses and for big businesses.
But few ideas deal specifically with marketing and strategy challenges in small markets such as Curacao and the Caribbean.
That, while we know that, because of consumer demands and expectations, the future lies in “niche markets” and even “localized” strategy (adapted to preferences of specific cities, neighborhoods, etc.). In our small markets we may easily literally end up with a “market of one”.
How can we overcome these challenges? How can we use and adapt existing tools for our small markets to make it worth our while?

These are the issues I wish to discuss in this blog. It is a thought that I am developing, hopefully assisted by your comments. So, not all posts deal with small markets.