Making A Difference

From the Front Line

to the Bottom Line

ByTom Feltenstein

I want you to forget

everything you think you

know about marketing.

Marketing is the Message,Marketing is the Message,Human BeingsHuman Beings

With Heart and SoulWith Heart and Soulare the Messengersare the Messengers

Your ‘TO DO’ list is not your job.

Your job is your people and their feelings

The Seven Fundamental Truths of Marketing

1. Isn’t the most fundamental concept of Neighborhood Marketing contained in the word itself – Neighbor?

2. Marketing is the planets largest religion but the billions that worship it don’t realize it.

The Seven Fundamental Truths of Marketing

3. Marketing is not about creating award-winning commercials.

4. Marketing is not about creating an image. Having an image just means that I know who you are but it doesn’t motivate me to do anything.

The Seven Fundamental The Seven Fundamental Truths of MarketingTruths of Marketing

5. The problem with marketing is that most people tend not to believe it. Most people tend to place credibility in the opinions of their friends.

6. Neighborhood Marketing is just like dating – it turns strangers into friends and friends into lifetime customers.

The Seven Fundamental The Seven Fundamental Truths of MarketingTruths of Marketing

7. The sole purpose of

marketing is to get more

customers to buy more of

your services, more often,

for more money.

LET’S TRY SOME TRUE –FALSE QUESTIONS

1. It is best to focus most of my marketing effort on finding new customers.

2. 95% of my marketing dollars should be spent in my local neighborhood.

TRUE – FALSE QUESTIONS3. Customer satisfaction leads to a

competitive advantage and increased profits.

4. Customer satisfaction is a necessity of doing business and may keep you from losing business, but it’s not likely to provide a competitive advantage leading to profits.

TRUE – FALSE QUESTIONS

5. 85% of ‘Satisfied Customers’ still demonstrate a wish to switch suppliers.

6. The real question isn’t: Are my coaches happy? – But rather: Are they returning?

TRUE – FALSE QUESTIONS

7. You get customers to return by providing innovative benefits that go far beyond customer satisfaction policies.

The HEART of the Matterto Building Top Line Sales

H – Hiring

E – Education

A – Attraction

R – Retention

T - Training

People don’t buy because

they’re made to understand;

they buy because they feel

understood.

NATIONAL

REGIONAL

MARKET-WIDE

NEIGHBORHOOD

PROPERTY LINE

FOUR WALLS

NATIONAL

REGIONAL

MARKET-WIDE

NEIGHBORHOOD

PROPERTY LINE

FOUR WALLS

FOUNDATIONAL MARKETING

Research Shows...

80% of your customer

base lives or works within a 10-minute

drive of your business

Why do you make it so hard for me to give you my money?

“Service is so awful, customers expect to be abused. Cold food in restaurants,

dirty public washrooms, late deliveries, rejected parts, lost orders, lazy staff ---

it’s all normal. Bottom line, people expect bad and rude service.

GiveGive’’emem junk and theyjunk and they’’re not re not

surprised. Just what they expected. surprised. Just what they expected.

As long as the abuse isnAs long as the abuse isn’’t any worse t any worse

than they expected, theythan they expected, they’’ll be back ll be back

for more.for more.””

“Your customers are a revolt waiting

to happen. They’re only satisfied

because their expectations are so

low and because no one else is

doing any better.”

Awesome hospitality is definedas an experience that is random and unexpectedand out of proportion to thecircumstances –creates positive,compelling word of mouth.

IT’S ALL ABOUT RECRUITING!

“If you hire the wrong people, all the fancy management techniques in the world won’t bail you out.

The most important decisions I make are hiring decisions.”

Red Auerbach, President of the Boston Celtics

Business is no different than sports.

The teams with the best players WIN!

What’s the #1 ResponsibilityOf a Franchisee

In Running Their Business?

RECRUITING!

Always be on the lookout for your next employee

The secret to success lies in doing things failures don’t like to do.

Outspend other customers by

13 to 1.

Loyal Customers

A 5% increase in customer loyalty can increase profits from

25% to 85%.

Don’t ever practice on the

customer. Outrageous Hospitality

is your fiercest weapon and

biggest competitive edge in the

battle for the customer.

One customer, well taken

care of, could be more

valuable than $10,000

worth of advertising.

Neighborhood Marketing is Retention Marketing

Twice the visits

DOUBLE top line sales=

2% sales increase

10% expense reduction=

Marketing To Your Internal Customer

Your Front Line is Your Bottom LineLine is Your Bottom Line

Internal CustomerBusiness Card

3333 Michelson Dr. Suite 550Irvine, CA 92612

Phone (949) 399-2000Fax (949) 399-2025

Ellen Bright, Sparkle Manager

The Mini-Brochure Business Card

Employee’s First Day Dinner

Employee’s First Paycheck

“WELL” Pay

1. Build Trial

2. Increase Frequency of Use

3. Boost Average Sale

4. Build Group Size

FOUR WAYS TO INCREASE

SALES

Cross-Promotions

Leverage other party’s marketing efforts

• Increase Average Ticket

• Increase New Trial

Your Business is Your Media Store

Add the personal touch to welcome a new customer into your company…

Surprise & Delight

You’re an Awesome Customer…

This Game’s On Us!

What’s Your Answer?

Yes, I’m going to use these tactics to conquer the world?

OR

No, I am not and my profits will dwindle and I’ll live on a pasteboard box.

You don’t have to be great to start, but you have to start to be great.

In closing…

• Concentrate on outcomes, not outputs.• Forget consumers, focus on customers.• Differentiate any way you can.• Customer engagement and experience

are your new 30 second ads.• Apply a focused neighborhood

marketing approach.• Leverage your employee capital to the max.

• It don’t mean a thing if it don’t go Ka’ching.

• Establish a measurement culture.

…and for the rest of the story• Any problem you can solve with a

check isn’t a problem, it’s an expense.• Never engage in institutional advertising.• Every marketing program should pay

its own way.• Perfect execution IS the BIG IDEA.• Business education without execution

is just entertainment.

• Keep selling the sold.

• Don’t be blinded by visible demand.• Preference is perishable.

Please Join Me at 2:45!Please Join Me at 2:45!

Change is Good, You Go First:The Astonishing Power Of Four Walls Branding

& Neighborhood Marketing.

((……II’’ll reveal 30 more killer promotional tactics).ll reveal 30 more killer promotional tactics).

LetLet’’s Welcomes WelcomeOur Panel of the Pros fromOur Panel of the Pros from

President & CEOPeter Cohen

Vice – President - Austin Center, TexasSusan Fairbairn

National Director of Franchise ServicesMichele Popelka

Executive Director – Girard Center, Ohio Barry Miller