Thinking Small

For Small Business Owners, Marketing is Personal

By ELENA BABIY
Publishing Projects Director, Willard

For the average small business owner, marketing research is a personal matter.  They are less likely to engage research firms or marketing consultants to conduct opinion polls and focus groups than they are to merely engage their customers in conversation - a tactic that multinationals would like to use, but find impractical.

Determining the changing nature of demand can often be determined by simply asking people what they want.  Small business owners say they're listeners first - and learn from what customers and potential customers tell them.

Steve Kriplani, a tailor and one of the owners of The Imperial Tailoring Co., says his clients tell him what they want.

"Regardless of my awareness of the latest trends in men's suits, I learn about the most popular models, colors, fabrics and accessories from my customers."

Asking customers what they want is important, agrees Beate Schober, senior owner of ABEA, Ltd., a relocation service.  She adds that clients have given her ideas about new services that would be useful, and that keeps her company relevant to its market.

Small businesses, owners say, tend to react to change faster than multinationals.  

"When I started my activities in Ukraine, I was surprised very much about the economic system which serves business.  It is hard to find a person who can explain to you how it functions.  From one side, it causes a lot of difficulties, but from the other side, it gives you the chance to demonstrate your creativity as a problem-solver," Schober says.  "here are always rules and each business has its differences.  What is most important is that Ukrainian laws can change very quickly, so you must be able to adapt to change quickly."

Talking to existing clients is one thing, but finding new customers is another challenge.  Small businesses lack the 'big name' appeal carried by multinationals, or the extensive advertising campaigns that accompany them. Schober says that, as a result, the entrepreneurial manager needs to try anything and everything to get and hold a prospect's attention.  She uses the Internet, search engines, a website and forum postings to raise awareness and keep it high.  But even with all the e-commerce tools at her disposal, she says that old-fashioned word-of-mouth referrals from satisfied customers and friends continue to make a significant difference.

Steve Kriplani agrees on the importance of referrals to his business.  In fact, he values referrals so highly that customers who send him new business are always acknowledged with a small 'thank-you' gift.

Flexibility and the willingness to go beyond what's expected is another tactical area where small businesses believe they have a competitive advantage over their larger opponents.  Kriplani recalls one day in Moscow when the assistant to the director of a major international company came to him. The challenge was to find a button for her bosses' jacket.  She'd already unsuccessfully scoured Moscow for a match.  Even though Imperial Tailoring doesn't service clothes made by other manufacturers, they agreed to help.
By the next evening, the necessary button had been located and sewn.  What did they charge for this unusual service?   Steve asked the director to join him for coffee, and a new client relationship ensued.

Once a small business has discovered its niche market and target audience, Schober says that they key is providing highly personalized service.  After that, "you absolutely do not worry about competition from larger companies, which in this question are not so flexible or close to customers."

Staying close to customers is vital, owners say.  Clients that feel abandoned or shunted off to subordinates are clients at risk, Schober says.  She feels it important to know each client personally and to be present at each meeting.  It is also desirable to have a database with information about clients, so that the business stays in touch with their their preferences.

"We position ourselves as friends to our clients, and the personal touch is one of our strengths," Schober says. "Consequently, contact with the client should not end immediately after the service has been provided."

Kriplani says that after-sale service is especially vital to ensuring happy customers and securing their return.  He said that he usually contacts a client within three weeks after a purchase to make sure that the client is satisfied. Clients receive free clothing repair service, as well as continuing advice and recommendations. After the sale, the focus shifts from sales to service.

Kriplani also periodically sends mail to clients - messages that contain everything from sales and discounts to style news and reprints of publicity about his firm.   For other businesses, newsletters are an easy and inexpensive way to keep clients informed. 

When small businesses advertise, the investment tends to be significant.  That necessitates a highly targeted approach.  For many, public relations activity is more cost-efficient and positions the business owner as a sought-after expert.  Letting editors know about specialized expertise can lead to interviews and the free publicity that they generate.

Kriplani said that advertising in a mass market magazine actually backfired on him: "I received a call from a client, who said, 'Steve, I saw your ad.  Does this mean that things aren't going well for you?  You've gone from being an exclusive private club to a service for the masses.' I removed the advertising, and began to treat this activity more carefully."

Schober maintains that her best promotion is on the Internet, where she has good Google visibility, her site offers good links and banner exchanges, advertises with Yahoo, and uses search engine optimization techniques to become more effective.

She also says that owners of small companies can find it useful to belong to business and social organizations. "One can never forget the importance of personal contact," she sdays.  "My team considers me to be a walking advertisement for our company.  I do my best."

With thousands of entrepreneurial small businesses in Ukraine, why do Westerners choose to work in Ukraine, where laws can change on a whim and the business environment can be challenging?

"The market in the West is saturated," Schober says.  "In Ukraine, we still have a lot of possibilities for growth."