Marketing tip #1 (again)

Show respect and connect with your current clients just a little better than before.

This story about why Jospeh Dolan of Dolan Construction of Reading, PA, spent $5,000 on Internet video advertising is worth repeating, especially these paragraphs:

“The best marketing we can do is to do a good job with what we have,” he says. “Most jobs lead to other jobs. It is most important we do the best job on every job. We live on repeat business and client referrals.”

Dolan says simple things like returning phone calls or calling a client when a call isn’t really needed to check in on the project, help go a long way to ensure client satisfaction and repeat business.

“One of the things that is really important that a lot of contractors don’t get right are simple things like being responsive, being proactive, and following through,” he says. “We try to be conscious; really try to make a difference in how the client feels about you.”

The $1 million lunch

This story from Mark Salter in the London Telegraph has absolutely nothing to do with construction marketing, but it touches close to my heart. You see, I worked with Mark on the sub-editor's desk of the Bulawayo Chronicle in 1979-80. (With two "Mark"s on the desk, I was "Mark 2" and Mark Salter was "Mark 1".) While in Bulawayo, I lived not far from the Holiday Inn he references -- and would occasionally visit the hotel for a meal, or drink in the hotel bar.

My African experiences at age 25-6 of course shaped my life, creating opportunities and establishing my underlying values and perspectives. Perhaps the most significant lesson I learned there is that fear is a relative thing -- and that most people (in North America at least) live with far more fear than they need. Courage mixed with common sense leads to great achievements, I discovered -- and perceived courage is sometimes as valuable as the real thing.

(Yes, I went off to live as a journalist in a country at the end of a seven-year civil war where more than 20,000 people died, but I didn't take unnecessary risks, most of the time.)

More than 25 years have passed of course; and the picture of Mark Salter is nothing like the person I knew (of course the same might be said for me, as well, I suppose). But he is as good a writer now as he was then.

The Zimbabwe story is an African tragedy, but we need not feel sorry or patronizing for that nation. Eventually there will be a 'regime change' and the hyper-inflation will end -- but right now, I wish I could be sipping on a beer at the Holiday Inn, combining youthful memories with more mature perspectives.

Online advertising tips.

These tips from the AEC Media Network are simple and easy to follow.

http://www.aecmedia.net/advert/tipstech.htm

Business planning, growth, and patience

We're preparing for our second annual full-day business planning session with Caswell Corporate Coaching Company. My sense is this is the last time we will 'need' them before we can do this stuff on our own (though when we are successful, the cost of having the consultants along as independent third-party guides may be justified). Without prejudging the results of the planning session, I'm now sifting through the possibilities and potential of the business and the trade offs between restraining growth and pushing forward at the earliest opportunity.

"Restraint" suggests that debt be minimized, systems clearly established, and consistent and stable profitability be achieved before we add any new markets or restore the markets that we closed. "Pushing forward" suggests that with experience and a good sense of the business foundations, we risk more by sitting on our current structure as soon as we see that the road is clear to grow.

In a practical sense, restraint is likely to be boring for me. I am 'used' to running and overseeing a much larger business. If my ability to respond to circumstances is nimble enough, and the team around me are capable of aggressive growth, why not move forward. But the slower pace may simply be much wiser -- restoring a healthy balance sheet and tightening up current processes will lay a much better and more solid foundation for planned (yet rationally assertive) growth when the time comes.

Right now, I know where my thoughts are heading and of course I must make the final decision. But I will wait until after the planning session on June 5 to decide. In the meantime, it is both rewarding and challenging to think ahead and see, more clearly, where we may be heading.

A plane full of thought

On the plane from Washington to Ottawa, my seatmate in the cramped regional jet wanted to speak, and I wanted to listen. These experiences are usually enlightening since the chance encounters in the air invite creativity, knowledge sharing and idea cross fertilization.

The seatmate relayed a story about how a serendipitous marketing decision saved the transit system in Kingston, Ontario, a city of approximately 150,000 people mid-way between Ottawa and Toronto. It has a major university, Queens. Unfortunately, people weren't using the bus service -- with lack of ridership, service levels were reduced, making it even less appealing to use the system.

The someone had a bright idea. The university paid a flat fee of approximately $50,000 to give all the students free unlimited bus passes. Suddenly, students started lining up at bus stops to use the system.

Then something else happened. Other people in the city, seeing the students were now using the bus, decided to try it themselves. Ridership increased dramatically.

I haven't verified this story. But it makes sense. People often react with a herd mentality. If a bunch of people appear interested in something, it must be 'good', so others join in.

Here is a reference to the "Bus-It" program, which reports it has been operating since 1973:
http://www.cityofkingston.ca/residents/transportation/transit/bus-it.asp

New permalinks

I'm giving the Construction Writers Association (CWA) and Society for Marketing Professional Services (SMPS) permalinks. Though these organizations are not construction marketing blogs, they are of obvious relevance to anyone either currently or contemplating a blog worthy of linking here.

As the CWA conference wrapped up this afternoon, I talked with marketers and writers -- and so far, none of them are familiar with relevant blogs. One marketing person for a large general contractor said: "We've been thinking about this, going back and forth, but are not sure." She believes the only person who could blog effectively would be the company's CEO, and he has a style and message, she said she isn't sure what they would do about comments and reaction.

The blogging concept is clearly not (yet) front and centre in the construction industry and its allied professions. Am I writing in a dark, never-ending wilderness? Or does this quiet environment provide the perfect conditions to get the bugs out of the concept, improve the blog's quality and relevance, and -- when the industry catches on -- be ready to take on a leadership role in the field.

When you are first (or nearly first) at anything, you don't know if you are there because there is no reason for anyone else to be there, or you are just well ahead of the pack. In this environment, it is good to keep things in perspective. I enjoy blogging, it doesn't cost me that much time (am writing this entry in the airport lounge at Washington Dulles before returning home), and I'm learning a lot as the blog develops.

The newsletter?

Its late this week, I know. Many of the files for this newsletter are on the desktop, not this laptop, and everything should be organized properly this weekend. If you not currently on the newsletter list, you can subscribe with the link above.

The Construction Writers Association and marketing

Why did I join, and want to attend the 50th annual meeting of the Construction Writers Association? Beyond the obvious observation that I am, indeed, a "construction writer" and it is rewarding and relevant for me to be near peers in who share specialized interests, I recognized real marketing advantages are possible by associating and connecting with this group.

My experience here validates this reasoning. Most CWA conference participants are either writers who construction marketers should wish to reach -- or the marketers who appreciate the importance of working with journalists and writers (and may be writers themselves for construction-related businesses. Logically, some CWA members should be starting or running their own blogs -- but I haven't seen any evidence of that yet.

For example, outgoing CWA president Sharon Holling works at Catepillar. Other conference partipants also work for Catepillar or write about the company's products. With Sharon's involvement, Catepillar has become the CWA annual conference Headline Sponsor.

What's in this for Catepillar? Consider the cost of conventional advertising, direct client promotion and sales initiatives. Ads in national publications cost tens of thousands of dollars; dealer promotions, discounts, and sales incentives cost even more, in total. But if a writer or journalist writes things that are good about Catepillar products, in a credible and relevant fashion, the company (directly at least) need not pay a cent -- in fact the best writing will be independent in nature. Even if some costs are incurred -- such as expense-paid 'try it out' trips -- the true cost to Catepillar is far less than conventional advertising, and the impact and credibility of the writing to the overall marketing effort is much greater.

In fact, of course, many of the larger contractors, as well as manufacturers as well as professional AEC firms, 'get it', and hire dedicated public relations specialists -- often with previous media experience -- to generate news releases, positive stories, and manage the process of communicating their perceptions and visions to the public.

Meanwhile, trade journal publishers like my company (and other businesses that range to the size and scope of McGraw-Hill and Associated Construction Publications -- Reed) thrive by selling advertising to the companies seeking publicity and marketing for their products and services. We attract the advertisers by delivering the readers and messages advertisers wish to connect -- and the key to that success is intelligent, relevant writing and editorial content serving the industry's needs.

CWA is highly relevant to anyone involved in the construction marketing process, especially if you are working at a national or international level. CWA members will either be qualified to communicate your message on a contract or employee basis or they will be the people you want to communicate your message to, in the publications for which they write or edit. In other words, you will either want to send your news announcements and story ideas or even pre-written promotional stories to the CWA members who have a chance to get things published; or you might want to use a CWA member to provide this communication service for you. As a marketer, it will be less expensive and much more effective than conventional paid advertising.

Incoming CWA president Mike Anderson, editor of Equipment Journal, is also a Canadian. Unfortunately, I couldn't meet him at the conference because his wife is ill and he had to cancel his participation at the last minute.

I'm looking forward to the final business and networking session this morning, before I head back to Dulles airport and my home for dinner, and will share some concluding thoughts later.

The "Elevator Pitch" done right

I believe Mike Manion's presentation on "Making the Perfect* 30-Second Pitch" to the Construction Writers Association justified my flight to Washington, D.C. His succinct and practical approach to creating business introductions and networking, I believe, offers us one of the most powerful tools and resources available in the marketing process.

Your perception of the "elevator speech" is probably the same as mine -- at least before Mike's presentation. I assumed the 'right' speech is a brief recitation of our company's products and services, designed to elicit an awareness of "what we do"

Of course, this just doesn't work. We care about ourselves, but really, do we care to hear anyone else's "elevator speech". Mike said he certainly found the traditional approach didn't work for him when he started marketing Vistage to chief executive officers in the mid-Atlantic region. (Vistage is the successor to The Executive Committee, described as the largest CEO networking group in the world.)

Mike's market of course is the elusive but vital one of the 'boss' -- the owner, the ultimate decision-maker. If you can sell or market to this level, you will be successful. But no one really wants to know how good Vistage is -- they want to know solutions to their problems.

Instead, the correct approach is to frame the issue within the interests of the person you are reaching.

The writers in the room role played, and this is what I came up on reflection after the meeting as an example for my own 'elevator pitch'.

"Are you fed up with clients who don't pay their bills, who nickel and dime you in the competitive bid process -- and who resist the most reasonable change order requests. Would you like instead to see work from people like your best customers -- the ones you enjoy and really like working with."

"I can tell you it is easy to do the stuff that gets you the wrong kind of business -- but we take a different approach, preserving and encouraging your best relationships -- and helping you to find more of the kind of people you really want to do business with. You can of course ignore these concepts -- just think, however, how much you will gain by replacing just one bad client with one equivalent to your best customer."

(We sell promotional marketing features in our regional construction industry publications, supported by supplier advertising. It is a good product, and it works well for everyone concerned, but I think you can appreciate that the conventional approach of extolling the publications' virtues, and the value of advertising and media publicity, will not go far with a critical and 'oversold' audience.)

Mike lists four Rules of Engagement

Concise -- One thought briefly stated. Get to the point.
Clear -- No marketing slogans or jargon -- use real language.
Carnivorous -- Meaty, valuable, no fluff.
Candor -- Be honest and meaningful. No superficialities.

Oh, what about the *

"*No pressure," he writes. "Remember -- there is no such thing as perfect when it comes to communicating!

How to change the world

This blog entry about Seth Godin's The Big Dip by Guy Kawasaki is a good read -- as is his blog, which shows how things are done right in the blogosphere.

It doesn't yet make my permalink category (to qualify under current rules the blog must be construction-marketing related) but is on my internal reference list, along with a few other general reference sources. I also enjoy Jeffery Gitomer's materials.

A multiple-choice quiz

If you have a marketing budget of $1,000 should you:

a) Spend it on an advertisement in an unknown publication supporting an obscure charity, based on a telemarketer's solicitation;

b) Join a local (or national) association representing your target market;

c) Contract with a public relations specialist and develop a media strategy for your business.

In the tricky language of multiple choice questions, I'm sure you can easily eliminate a) from consideration, but consider this observation -- when I was reviewing our marketing position, I examined closely a so-called "police association" publication (actually published by a commercial firm which prints a few extra copies and maybe makes a small contribution to the police group). Almost 65 per cent of the ads in this publication were from construction-related businesses. I can't see what value to their market they would achieve with this kind of advertising, but they were there....

Now b and c are more complex, but the best answer in my opinion is b. The reason relates to the budget -- if you have only $1,000 for marketing, you will I think get the most value from connecting with your community -- so joining and participating with the correct association will do more for you than any idealized public relations strategies.

If you have a budget of $10,000 or $100,000 the rules are different. Then you can meld your association memberships and public relations/media relations strategies into a cohesive plan -- presumably with a dedicated marketing manager or specialist. But I would still pass on advertising in the police journal -- unlike all those other construction businesses there.

The short and long cycles

If you check back to the beginning of this blog, you'll know that the entries here started at a crucial time -- an inflection; a turning point, the end of a long and arduous two-year business slump where all my assumptions and expectations for the enterprise crashed around me (as did our sales, employee base, and, I thought, our market position.)

Now, in the bright light of Spring, I see a very different picture. The problems we had were not what they seemed to be; even in the worst days, our true circumstances were really quite healthy. I can track a specific story, with twists and turns that boggle my mind and stretch the bounds of probability. This story is too close to current circumstances and relationships to relate openly in this blog but I certainly didn't expect the results we see today -- both in the acceptance of our business and our actual sales revenues -- from when things began turning really bad a couple of years ago.

I realize now, more than ever, that businesses go through short and long cycles. Short cycles are the daily or even monthly ups and downs, you can look forward and even plan for them. Long cycles are more interesting and challenging. You may think you are in a certain place within the cycle; the real picture may be very different. Think of 'technical analysis' from the stock market perspective -- pundits read the charts, looking for signals and indicators, and often they are right -- but it is harder by far to read a long cycle shift than a short cycle.

I'm fortunate, as well, that as things stopped working the way they should, I remembered the basic rules of business in hard times.

• Never let your debt get above the level where you can repay it (or, in certain circumstances, be exempt from having to repay it.)
• Always accept full and complete responsibility for your business problems; yes, the economy may be bad, you may have bad employees, technological change or competitors may be decimating your market -- but ultimately you are responsible for your business;
• The 'reality principal' applies in both hard and good times. "Things are never as bad as they seem at their worst, and they are never as good as they seem at their best." Of course there is nothing wrong with striving for things to be good, and to be the best at what you do. But it is wise to be well grounded in good times, and not overly pessimistic in bad circumstances.

Right now, nevertheless, I'm savouring the pleasures of a good cycle, and I know in my heart that it will be a long one. But I'll retain my humility. You deserve and have the opportunity to succeed and enjoy your life and accomplishments, and your success and achievements are far more important than mine in the truly big picture.

Busy times

Lots of writing to do this week -- and not so much time for blogging -- at least for the next few days. Lots of wonderful things are happening, however.

Here is a rather useful article suggesting what not to do when issuing a news release -- and reminding us that news releases have much more value these days now that they can be sent to wider audiences on the Internet (but they still need to be done properly.)

http://www.mpdailyfix.com/2007/04/six_telltale_signs_that_a_pres.html

Ouch!

Who needs publicity like this? In both ways. Publicite (French word for advertising) and Publicity (as in bad press, or in this case, a negative blog posting).

http://www.younggogetter.com/2007/04/28/if-your-clients-product-is-crap-so-is-yours/#comment-2575

I think the original blogger is a bit hard on Venture Direct and Inc. Magazine. In our case, when these things happen (and they do from time to time) we review our internal procedures, and make adjustments to satisfy our advertisers. After all, we know that we must deliver real value to achieve repeat business.

The Pareto Principal -- 80/20 rule

I like this blog entry explaining the rule and some of its applications.

http://spiritize.blogspot.com/2006/02/paretos-principle-80-20-rule.html

Montreal

We're in Montreal, Quebec, for my wife's high school reunion. Just before leaving, I sent out an email to our Ontario readers, inviting comments on holdback provisions within the Ontario Construction Lien Act. (I think the equivalent concept in U.S. jurisdictions such as North Carolina is 'retainage' -- and an extensive lobby is being mounted in North Carolina to reduce the retainage duration, and amount to 5 per cent from 10 per cent.

What does this have to do with construction marketing? As publishers, our objective is to provide news and information to help the industry -- this attracts readers; then advertisers. And I used my editorially-oriented email message for a small, but subtle marketing message. This is the best way, I think, to use email for marketing -- people don't want to receive ads in their e-box -- but they'll accept a small amount of promotional marketing within the context of a much larger useful information service.

Writing power

One of the best ways for industry professionals and consultants (especially architects and engineers) to build their reputation and practice is to be published. Trade journal articles carry credibility; this is enhanced if you write a book. Articles and books lead to speaking engagements, media interviews, 'expert status' and bookable business.

Writing, of course, is a skill like most others. Some people are naturally good at it; others can develop acceptable results with some effort and still others simply can't write very well. The solution if you have good ideas but don't have the inclination or ability to write well is to work with someone with these talents. Good writing need not be very expensive; though obviously if you are not a capable judge of writing you should work with someone you know and trust in this regard.

As you develop your writing skills and markets, you'll see how your writing can be leveraged -- allowing one piece of work to 'multitask' saving you time and dramatically improving the impact of your efforts. For example, I recently wrote an article about complex bid requirements for our Ontario newspapers (as part of a marketing initiative involving the province's general contractors). I posted this article to my website, and my newsletter. The publisher of a wide-circulation electronic newsletter asked for permission to use it in his publication; when the B.C. construction association read the article in that newsletter, they called me for reprint permission as well. If you want to see the article, it is here.

Articles can be repackaged into book chapters; speeches, newsletters, marketing materials and more. One piece of good writing indeed can go a long way.

Next week, I'll be delving more closely into the business of construction writing, attending the annual convention of the Construction Writers Association in Washington D.C. on Thursday and Friday. This is after I somehow package together some 60 tabloid pages for our newspapers in Ontario, Canada and North Carolina -- as I fit in time to watch Ottawa Senators in the National Hockey League playoffs. Oh yeah, and produce our bi-weekly newsletter and this blog.

Thankfully, I enjoy writing.

Lawyers and accountants

I write this blog entry as a three hour program on construction lien legislation is about to start. This stuff is arcane, to say the least, but is vitally important -- liens, holdbacks, and the rules regarding collection of accounts within the construction industry are unique indeed and while there are common themes, the rules vary by jurisdiction -- thus creating lots of work and opportunity for the lawyers and accountants.

If you are a general or trade contractor or supplier, all the hard work you do in building your business (and doing the actual work) are lost in a business disaster if you aren't paid. This is the opposite end of the business process of marketing -- but is equally if not more important.

Growth mode

Its exhilarating, exciting, and plain simple fun when a business turns around. After reaching a low point near the start of this blog last year, we are getting very busy. I'm continuing to hold the fort as interim editor as our sales team finds new business and the administrative staff (of one full time employee and a couple of part timers) handles increasing volume. We are now dusting off our business plan and preparing for a major planning meeting June 5.

The paradox of this growth is that, looking to the decline and resurgence, I can only see one cause -- people. Last year, former employees lost the spark and enthusiasm; they bickered, complained, and failed to do more than the minimum (and sometimes less than the minimum). I thought the problems might be market related, or caused by changes in client expectations, but now (with the benefit of 20/20 hindsight) I see these elements really don't explain the decline. We are recovering because we've regained the passion for the business.

What lies ahead? We will clarify our plans in early June, and I have learned that it is important to have the employees take a major part in setting the vision -- clearly, I have ideas, insights, and lots of experience, but the business will be defined by the employees. We'll add new publications (and restore old ones), improve our Internet capacities, and enhance our client services.

If you are having business problems, it may not be because of lack of clients, or market, or failure of clients to pay you properly. The problem may be right at home, with the people working with and for you. And, if that is the case, you have difficult and challenging decisions to make, but if you fail to do what you need to do, you will just drag on the pain and failure.

There is light at the end of the tunnel if you keep a realistic view of things. And it is really fun to come out in the bright light of the day with growth and enthusiasm after a couple of hard years struggle.

Choices in business

A couple of weeks ago, a client requested me to post an ad on our network of websites and we discussed reasonable compensation and terms. I didn't actually look at the ad -- my mistake! -- because I assumed it would be a standard banner ad and I knew the advertiser to be of good integrity.

To facilitate the advertiser's request, we need to facilitate some site reprogramming. Unfortunately, our offshore programmer initially reported he would need a few days extra because of illness; he now reports he will require up to a week to determine if he can even do the job. I had a Plan B ready -- we can hard wire the ad on the sites through a manual process using another service provider.

Then, just before instructing the service provider to start work, I actually looked at the ad for the first time. It is one of those flash ads that (without any reader prompting or action) spreads outside its borders and over other material on the site). Ouch! I know this type of ad can be very effective in attracting attention to the advertiser's own message, but what about everyone else on the site (including the editorial content). If anything, you are going to want to see this once, and no more -- and even then the message is way overpowering. I give the advertiser credit in coming up with the proposal -- it would, if accepted by me, be undoubtedly good marketing for his business, but the cash I receive from him would harm the interests of the overall sites.

We will hopefully come up with a compromise solution, but there are lessons to be learned here.

• Check things at the outset -- if I had actually reviewed the ad I could have communicated my concerns with the client right away and not provided the terrible service to him I am in this case;
• Consider others in engaging in any relationship or marketing. Of course your consideration should put your interests first -- I really don't have any trouble with the proposal itself -- it is my decision to decline because of its overpowering nature. I am declining because I know it will cost business greater than the ad is worth;
• Don't be afraid to risk and try stuff -- the proposed ad is really effective from the advertiser's point of view; he did nothing wrong in proposing it to me.