Newsletter Archive

Welcome to the initial issue of Stratamar News, a newsletter of marketing thoughts and gleanings which will be coming to you quarterly (or more often as hot topics or ideas cross my desk). Comments and questions are always welcome - please direct them to me at the numbers and addresses on my Contact page.

Here’s a pet theory of mine to think about. When soliciting the business market, many companies take the easy road to segmentation - dividing companies among calling officers either by sales size or industry. However, not all CEOs in an industry think alike - some want to be multinational giants someday while others are happy once they hit a profitable sales plateau. Moreover, segmenting by sales size implies that a $5 million management consultant company (large by most standards) has the same needs as a $5 million general contractor (relatively small on a national scale).

Small businesses, by my definition, are those closely-held entities which have yet to hire a CFO, HR head, or other major employee whose position implies that the decision power is now somewhat divided. Until that point, the head of the company is still making business decisions under the belief that the company’s health and money are really his or hers (which, of course, it is!). Therefore, I’m convinced that many small businesses can be segmented psychographically just as individuals are, and that their buying decisions can be anticipated on the same basis. Find out what your small business owners want and need for their personal lives, and you’ll be well on the road towards determining what they want for their corporate lives, too.

Although it is the latter part of January as I write this, it’s not too early to be thinking about ordering your 1999 calendars. Many calendar vendors will give substantial discounts, up to 40%, for orders placed during the first half of the year when business is slow. Moreover, why not get a jump on your competition and order 16-month calendars to be distributed in August? That way, there will be no place on the desk or wall for another company’s calendar when it’s delivered next December.

Recent surveys indicate that as much as 41% of all U.S. households now use personal computers for Internet, electronic mail, and the like. Are you asking all of your customers for their email addresses, and for their permission to send them information electronically? Not only is email often looked upon as a more personal communication that regular direct mail, but it is also much cheaper. Plus, it enables you to get a special offer or communication out to your best customers literally overnight. Customers further benefit by being able to email you with their questions at any time, even at 3:00 on a Sunday morning. If your institution doesn’t yet have an email address, a reliable service can be opened for just a few dollars a month.

A common difficulty in client service at many companies, particularly banks, is knowing exactly how much service a given client is purchasing. While all clients deserve respect, good service, and an open ear, giving the same high level of service to everyone risks under serving your best clients when service resources are tight.

Many banks with which I’ve dealt make a quick judgment of client value based on the client’s total balances. But, that judgment ignores the fact that some balances are more valuable than others. For example, a quick study by your Finance area should reveal that checking account balances typically return about 6.0% on available funds, while the same balance in a medium term CD may return only 0.8 - 1.0% pre tax profits. Or, small businesses typically have higher proportional checking and loan balances than large companies because of a lack of time to move money between accounts daily. Know the relative profitability of your services and clients, and communicate them to your sales staff often. This will make it easier for them to decide whether a fee should be assessed or waived for a given service, or if an interest rate concession should be offered.

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