Hierarchy of Recognition

The effectiveness of graphic design is easily seen when you recognize the power that the hierarchy of recognition and icons have on the buying decisions of your customers. Following describes the hierarchy or recognition and defines each of the elements of it.

Hierarchy of Recognition
The human mind recognizes items in distinct patterns and order. Failing to know and utilize them will diminish your ability to sell your products and services. Ignoring the hierarchy will dramatically decrease your pieces productiveness.

In a crowded market place it is vital to own a color, a shape, a number and a word! The first item of recognition is color. The second item of recognition is shape. The third item of recognition is numbers. And the last item the mind recognizes is words. Use color, shape and numbers to intrigue the mind before you use words.




Read more about the five key factors of the hierarchy of recognition.





images found at MeccaW.com

The Circle Of Marketing— Relationship Building.

The final strategy in the circle of marketing is relationship building. This is how you can build relationships with your customer that can last years.

“on average, you have a 60 percent to 70 percent chance of doing business again with a current customer, a 20 percent to 40 percent chance with a former customer, but only a 5 percent to 10 percent chance of ever doing business with a non-customer.”
—Steven Yanovsky

This is where most business owners don’t understand the reach of marketing. Do you also spend most of your advertising dollars on new customers when that is the least cost-effective form of advertising?

A study by Bain and company found that “a 5% increase in customer retention improves profitability by 25% —100%, especially where customers have ongoing purchasing relationships.”

This study confirms that the most profitable untapped marketing opportunity at your hand is focusing on your current customers. This article should help you to begin to market more effectively to your current customers. And when it is in combination with all the other strategies in the circle of marketing you will begin to see the power marketing can have.

Hint: use their loyalty and knowledge of you to grow your business.

Currently you have two main types of customers—transactional customers and relational customers. For this discussion we will discard the transactional customer because they shop on price and they are not loyal customers. But relational customers are those customers who keep coming back to you time and again. They value the relationship (quality service, attention to details, personal conversations and the extras like remembering their name) more than the price. Most of the time your customer won’t admit this but their actions show this to be true.

Relational Customers Build Profitability
The first question you want to ask yourself is “How can I encourage my current customers to shop more from me?” To answer that question you’ll want to find out why they shop with you in the first place.

How have you been strengthening your relationship with your relational customers? Relational customers want you to build a relation with them. To do that you will need to remember the first strategies of the circle of marketing.

1) Hiring,
2) Employee Training,
3) Customer Experience Management,
4) Internal Marketing Strategies,
5) Advertising/Direct Marketing
6) Relationship Building.

Each of these strategies are developed to build confidence in you as a reliable business in your customers minds. When have you successfully fulfilled the promises your marketing plan or advertising makes you begin to lower the buying risk your customers feel.

To strengthen the relationship you need to provide content. Useful content that is consistent with your brand promise. Here are a few suggestions to strengthen your relationship with your relational customers.
1. Spend time and money training your staff to be experts on the products and services you offer. And train them how to communicate more affectively with each other and your customers.
2. Create and give out useful how to guides.
3. Make “Did You Know” fliers that are relevant to each service you provide.
4. Post FAQ’s (frequently asked questions) and Q & A sheets for your customers.
5. Develop a web site that answers all of the questions your customers are asking. Don’t give them what you want to tell them! Give them what they want from you.
6. Instead of placing your ads in piece that goes to everyone in town gather the emails of your customers and send a version of that ad to them for free and test which bring in the better customers for the most cost affective price.

Items such as these help you answer the questions your customers are asking. When they feel that you are listening to them they will come to you more readily. And the more they come to you the more chances you have to increase sales.

Roy H. Williams said it best in his book The Wizard of Ads, “Any investment in sales training is an investment in your gross profits. The only thing more expensive than hiring a sales trainer is not hiring one.”

The Circle Of Marketing— Advertising & Direct Marketing

“Only for a limited time!”

“While supplies last!”

“A tradition of excellence.”

“Helping you succeed!”

These are the staples of the old advertising model. Platitudes. Platitudes no longer work with the majority of your customers! The new model you should consider when developing your advertising is to make sure your customers remember you and like you! Nothing less than this should be your advertising goal, unless of course, you want to discount your wares to sell them. That conversation is for another day….

Most advertising is aimed at new customers. But studies show this is far too expensive for small businesses who have limited budgets. You have only a 5%-10% chance of ever doing business with a non-customer-1.

This isn’t a good use of your marketing dollars. If you have been following these posts over the last several months you will remember that the circle of marketing consists of:
1) Hiring
2) Employee Training
3) Customer Experience Management
4) Internal Marketing Strategies
5) Advertising/Direct Marketing
6) Relationship Building

Taken as a hole, when you have prepared your staff to meet, greet and sell to your customers your advertising works much harder.

Some things to consider when creating your advertising.
1) Use a headline.
Have a headline that clearly says the one message you are trying to convey to your customers. And use the rest of the ad to show proof that you will deliver on that promise.
2) Use callouts
Callouts - burst of information to build desire, inform and educate your customers. Callouts are the best way to quickly build creditability. Read more about callouts here.
3) Create a distinct offer.
If you are trying to drive traffic the only way to do it is to have a specific offer. Something your customers can say “Yes, I need that,” to. If you do not include a specific offer your customers will most likely ignore what you say.
4) Provide proof.
You must back-up the claims you make in your advertising. Be specific and show your customers how they can get the facts.
5) Provide more content.
Many advertisers believe that a beautiful piece is more important than the content. I do not agree in most cases. If your objective is to sell you need to apply proven selling techniques. Such as:
• writing from the “you” perspective
• using longer copy
• including testimonials,
• including a call to action
• including power words
• using emphasis tools
• making it easy to respond
• sweetening the offer whenever you can.

Remember—stories sell, facts only tell.

There are many other ways that you can improve your marketing materials and/or advertisements. Email me if you’d like to read more on this topic. But this is a good list to start with. Remember, there are many talented designers, marketers and sell reps out there that don’t have much selling experience. Find someone to consult with who has direct marketing selling experience to make your piece as effective as possible. When sales increase you will be glad you did.

Next post we’ll talk about relationship building …


1 Steven Yanovsky
2 Mike Heberling

Working With Your Staff - Employee Training

Help Your Employees Excel!
If you are looking for some tips on how to get more out of your employees here is a list of links that will give you plenty of ideas.

1. Knowledge if Free - Bring Your Own Container
2. Spend Time With Your Thoughts
3. How To Read a Book
4. Start Keeping a Study Journal
5. Giving is Living. Caring is Sharing
6. Thoughts on Media
7. Your Not Learning When Your Speaking
8. Follow Your Interests
9. Start a Life File

My blog The Internet Dark Ages discusses issues that can inspire people to become more. If you have any feelings on this subject let me know. I'd love to hear your thoughts and opinion.

Its What You Do That Defines You!

The Circle of Marketing
“Its not what you are underneath. Its what you do that defines you!” This quote from Batman Begins is telling. In generations past “what you are underneath” was the most important part of ones character - but no longer. Do you identify with this sentiment or the former? How about your customers.

As the face of marketing changes are you ready to change with it? As it turns out, younger generations do not identify with “what you are underneath” in a brand personality. They, instead, identify with and support businesses that are active in the community. They believe “Its what you do that defines you!” And it is that kind of business that they choose to be most loyal to.

My studies on marketing and branding have lead me to explore this shift in philosophies. Currently I call this study “The Circle of Marketing.” I believe that the hand of marketing must be expanded to all activities a business involves in.

There are six points that make up my theory—The Circle of Marketing. They are:
Hiring, Employee Training, Customer Experience Management, Internal Marketing Strategies and Relationship Building.

1. Hiring. Who you hire - their attitudes, how they serve in the community and their commitment to lifelong learning is key to your business’s success. These are the main qualities to look for when hiring.

2. Employee Training. What is your commitment to and investment into the training of your employees? Not entirely for your success alone either… but for their success too. This will create greater commitment from the employee and improve productivity too.

3. Customer Experience Management (CEM). From the first impression to their last buying experience these interactions must be planned for and evaluated for success. Employees must be continually trained on how to provide a lasting positive experience. And that training must be benchmarked against internal marketing strategies to make sure the experience is what is expected.

4. Developing Internal Marketing Strategies (IMS). IMS are the first steps of marketing. They build on steps one and two above, the help you as a business meet, greet and sell better to your customers.

In this step you create programs that lower the buying risk your customers feel when deciding whether or not to buy from you. Customers need aesthetics, meaning, and efficiency to feel comfortable with a brand. Some programs that facilitate this are: a win-back program, a traffic-building program, a top customer program, a customer loyalty program and a database of customers program.

5. Advertising/Direct Marketing. Traditional advertising is becoming less and less affective because we choose to ignore it. This requires new approaches to the way you advertise. It has become more effective in many instances to incorporate the best practices of direct marketing into your marketing plan - are you?

6. Relationship Building. Relationship building is the glue that brings each of these points together. It prepares your customer to buy more products more often and for higher profits.

As you can see each of these strategies is in fact connected. When you connect them in your business you will do more business.

Not To-Do List

“Success is the number of options you create for yourself!”
—Anil Menon, IBM

Recently, I was talking with Michael about the top 7 time wasters in Corporate America... According to Peter Drucker they are:
1) Interruptions,
2) Procrastination,
3) Meetings,
4) Poor Planning,
5) Socializing
6) Waiting for Answers &
7) Shifting Priorities

This lead us on a discussion that ended with To-Do Lists & Not To-Do Lists and that brings me to today’s point.

To improve your skills it is important to make smarter decisions. One way to do this is to keep a To-Do list, but for this brief conversation lets talk about a Not To-Do list.

A Not To-Do list is a guiding document that keeps you from making mistakes in your life or on the job. What are some of the things that you would put on your Not To-Do list?

Some that find themselves on my professional list are:
1) Do not send a document without proofing it.
2) Do not send a document without checking your references.
3) Do not put my personal opinion above my professional opinions.

Items such as these help create additional options for yourself. BTW, learning how to be a "follower" is another vital skill most are unwilling to master and one that will make you a leader of powerful influence...

Profits That Lie Hidden in Your Business…

How To Significantly Increase Your Direct Marketing Response Rates

The effectiveness of graphic design is easily seen when you recognize the power that the hierarchy of recognition and icons have on the buying decisions of your customers. Following describes the hierarchy or recognition and defines each of the elements of it.

Hierarchy of Recognition
The human mind recognizes items in distinct patterns and order. Failing to know and utilize them will diminish your ability to sell your products and services. Ignoring the hierarchy will dramatically decrease your pieces productiveness. In a crowded market place it is vital to own a color, a shape, a number and a word! The first item of recognition is color. The second item of recognition is shape. The third item of recognition is numbers. And the last item the mind recognizes is words. Use color, shape and numbers to intrigue the mind before you use words.
Color
Color is the first item recognized by the human brain. Make sure your marketing piece is consistent with your brand and uses color to reinforce your message. Weak color choices will subconsciously weaken your message. Action and emotion are represented by color choice. Owning a color is key to separating your brand from the competition.

Shape
Shape is the second item recognized by the human brain. Something about the shape of your product, logo, and/or package design must be imprinted onto your customers mind to build a lasting relationship with your brand. Don’t discount the power shape has on the success of your marketing piece. Brands like Coke, Nike, P&G and McDonald’s use the strengths of shape to win the first seconds of recognition and sell more because of it.

Numbers
Numbers are the third items recognized by the human brain. Wherever possible use quick reading numbers in your callouts. They are less abstract than words, therefore are more powerful. They can help you direct customers to specific areas on your marketing piece. Where possible link a simple number to your product. It can help distinct you from competition or imposters.

Words
Words are much more abstract that color, shape and numbers making it harder for the human brain to recognize. To recognize words the brain must interrupt what it is currently doing, engage and differentiate between other words before it recognizes it. To win the first few seconds of decision making words are the least effective of these tools. To strengthen this inherent weakness use power words, avoid tragic words and always us a compelling headline. To win at marketing you must successfully interrupt, engage, educate and to make a compelling offer, one your customer can’t refuse!

The Psychology of a Customer
The hierarchy of recognition is one of many points to consider when developing a marketing piece. Make sure your marketing team, be they in-house employees or professional consultants know as much as you, if not more, about your customers and what motivates them to take action and make purchases from you. There are many skilled marketers and designers out there but few know and understand the vital marketing skill of selling.

Weigh their ability to sell as high as any other part of their resume or you may get a beautiful piece that cannot sell.

These tips are taken from the booklet How-to Get Your Customers to Pay More and Do it Happily with Direct Marketing! Volume 5. For a free .pdf of volume I, with 25 such direct marketing tips and checklist send an email to danis@ifmarketing.com. I’ll gladly send you a copy.