Marketing 101 for SMEs
Recent studies in Kenya have shown that the number 1 problem for most small businesses is competition. But how do you do outdo competition on a limited budget?
As you may already know, there is no one-size-fits-all solution when it comes to businesses. Different businesses need different solutions and ways in attracting customers. Think of yourself when you are buying different products. You may like a hotel because it is clean, and a soap bar because it is cheap. The same applies to the techniques that can be applied by different businesses.
The following findings are based on a research done on successful micro and small businesses in Kenya.
Professional Services
Professional services are all those businesses that offer an intangible product through a specialised skill that the owner or the employees possess.
If you have a salon, law firm, accounting firm, a dental practice, an IT company, are in education, have a transport business etc., you are running a professional service firm. Professional services have an especially uphill task in dealing with competition as the capital requirements for some of the businesses is not as high and prohibitive as others who deal in merchandising. This is because their entire business depends on the skill of the owner or employees within the business.
So, what have successful professionals done to make sure that they stay on top on a limited budget?
They know their customers. The overriding factor across all businesses interviewed was that they took their time to understand who they were selling to. Knowing your customer and how they would like to be served is key in knowing how best to navigate the web of competition. Know why they come to you, know why they leave your business. It is cheaper to approach someone you know than someone you don’t.
They give quality service, the first time, and 99.99% of the time: this ranked as the number one factor that ensured that customers always come back. Your work is the assurance of a repeat customer. Unfortunately, many professional service firms don’t have the luxury of blaming someone else for a poorly done job. Traders can get a pass for it, Professionals can’t. Do a good job the first time, all the time. Should you get it wrong, apologise and repeat if given a chance. This means that you and your employees MUST know the job. Also, keep the good employees.
Advertising: But isn’t advertising expensive? It is if you choose the wrong medium. TV and radio are normally out of reach for most business people. They are very expensive considering how long you need to advertise to reach the required number of people. Print advertising through fliers, posters, newspapers (both online and offline), and targeted magazine editions were the most commonly used methods by small businesses looking to grow. Choose a medium that your clients will look at and stick to it. One salon grew by advertising on “Salon Solutions Magazine” only.
Networking: going for trade shows both as a participant and guest worked to grow the business as you get to meet people with whom you can work with as suppliers, customers or alliances. Owners of professional firms pointed out that finding other people in the same industry allowed them to share challenges and come up with partnered solutions. Set up strategic alliances
Give the value that you promised the customer: there is nothing worse than feeling cheated out of your money. Satisfied customers will come with more customers. Delighted customers will come with even more customers and do free marketing for you.
Start branding early: Big companies look good when they have the company logos on t-shirts and posters and fliers and billboards, right? Don’t they just look organised? While many small businesses think that branding is for big companies, the successful businesses interviewed said that they thought about their brand very early on in the business. So while they may not be seen on a billboard, all their documentation (receipts, business cards, envelopes, stamps, letterheads), to signage on the door, to the colours in the office etc. all had the company logo in the company colours. It is easy to remember a brand; start early.
