Steve Reports

The Headline Reads: Retailers Report Weak Sales For August (Click For The Story) Then highlight is:

“Industrywide, same-store sales fell for a 12th straight month — highlighting the woes retailers have been under as consumer spending continues to decline.”

Then there is discussion as to what will happen this holiday season as well as the impact of the clunker program. This is followed by reports of what key public companies in the retail industry reported. Remember there is a lot that is not reported. Also remember, economic recovery is driven by consumer spending and there is little evidence that is strengthening.

The point made that I commented on was that going forward the monthly same store comparisons will look better because you are comparing against increasingly weak numbers from last year as retailers tanked in the fall of 2008. Here is what I wrote:

The comparison may show less dramatic declines and even a greater number of positive percentages when current year sales are compared against months last year when retailers began to experience sharp declines. Those may be feel good metrics. However, the key is what are the volumes and margins that are planned in connection with an acceptable profit plan and how are actual revenue and profits doing against that?

Typically that information is a bit more difficult to extract. The well run retailers have a profit plan by location that is based on category proformas. The key is to be profitable at each location and in each category within that location. I still see very little advancement in the use of direct response marketing and social media marketing. Tools and technology that have been readily available and proven to work for quite some time.

There is a lot of the “same ol same ol” and that is not going to work in an economic climate likely to be very soft for quite awhile.

Steve Pohlit
http://newdigitalmediainc.com
http://stevepohlit.com

The WSJ reports Moonfruit went from 400 followers to 47,000 followers in about a week using a contest that became popular and viral fast.  Other similar success stories were reported.  When you read this article Click Here  For The Story I suggest you consider the missing link. Now in all fairness the link may not be missing in the examples reported. However, this key success factor was not addressed in the article.

The Missing Link

Think of a funnel. This story is about using the incentive of a contest to reach out into the cloud of a very popular social media site which of course is Twitter. This strategy was very successful in that the number of followers increased rapidly. However, followers have no value unless they are people interested in your offer – the offer for products and services that earns you money.

Followers need to be converted to a contact data base where you have their name and email contact information.  That step is moving followers through the marketing funnel. Now that step can be bypassed if a follower goes directly to your offer and buys. At that point you also have their contact information.  Again the goal is to develop this contact data base so you can communicate with these people who have said they are interested in who you are and what you offer. That communication then is intended to further cement the relationship and when the person is ready they will buy. You have not idea when they will be ready so building the relationship is the key.

In the current environment there is an opportunity to move people from followers to a contact data base where you can message them and by pass the email system. That option is to move them into a group on Facebook. There is an inherent limitation to that in that Facebook limits group size for sending messages to 5,000 people. Many people are setting up fan pages which do not have the limitations of  a group. However, messages to fans currently are not sent to their Facebook inbox which is not as effective as groups.

My advice is to use the assets of social media with the goal of developing your own asset which is your customer list and prospect list.  Then there is one more thing: communicate with them.

Sharing with all my readers the energy of peace, happiness and abundance

Steve Pohlit, Expert Business Consulting

Email Me, Steve Pohlit to schedule A No Obligation Consultation On Building Your Business Profits.Need more customers? Let’s discuss how to use cutting edge Social Media Marketing in the revenue building cycle of your business to drive your profits sky high. If  your company is not growing revenue and profits,  if your company is not cash flow positive Click Here for more information about Turnaround Consulting Services for Business In Crisis

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About: Steve Pohlit is a CPA,MBA and has been the CFO of several major domestic and international companies.  Steve is business owner and an expert business consultant, direct response and social media marketing  and social networking security expert . Steve is  focused on helping companies improve their business performance. All articles published by Steve unless specifically restricted may be freely published with this resource information.

My comments that follow relate to an article written by JULIA ANGWIN with the Wall Street Journal who discussed her experience and recommendation for Twitter:

I appreciate this article and Julia.

I recommend Twitter. In my business we set up every client with multiple Twitter accounts as an integral part of the marketing funnel. Twitter works because we use a “give value” model. This develops a relationship with our followers.

Several days ago I reached out to a lady who I have seen active on Twitter. She had posted a tweet about an upcoming event. I felt she might fit our client criteria and sent her a quick tweet. She immediately responded and a day later we had a conference call in place. At the start of the call we introduced ourselves and she said “OMG you guys are Manifest Mastermind. @mastermmind How cool is that! You’re the ones with the purple picture. I love your tweets. Thank you so much”

So that felt really good and offered us credibility for a related venture we were proposing. We are now in the final stages of a client agreement which will be very good for her as well as for us.

I didn’t see it mentioned by Julia or in the comments. Personally I would not be without Tweet Deck. It allows you to easily follow up to 10 people or niche markets at once. Awesome! Having said that, my number one tool is http://TwitPwr.com/TweetL

http://twitter.com/stevepohlit
http://twitter.com/manifestmmind

Sharing with all my readers the energy of peace, happiness and abundance

Steve Pohlit
The Profit Expert

Email Steve to schedule A No Obligation Consultation On Building Your Business Profits.  Let’s discuss how to use cutting edge Social Media Marketing, Internet Marketing and Direct Response Marketing in the revenue building cycle of your business to drive your profits sky high.

FREE Report:

How To Increase Business Profits by 30% or More in 90 Days or Less