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August 1, 2012

LONG BEACH, Calif. — Make sure your message is where the people are

LONG BEACH, Calif. — Brian Wallace, president/CEO of the Coin Laundry Association, was given a daunting task: to capture the audience’s attention during the final hour of a regional dry cleaning and laundry trade show in sunny Southern California.

But his task was no more challenging than one faced by every self-service laundry operator: to successfully market his or her store(s) in an environment where potential customers have access to information almost instantaneously and from a variety of sources.

On top of all the other “hats” that a laundry owner “wears”—customer service, maintenance, production, human resources, accounting—he or she can add one more hat to that mix: director of marketing, Wallace told attendees of Fabricare 2012.

“You work incredibly hard for your business, but the fact of the matter is things have changed. … We’re all trying to reinvent ourselves on the fly, trying to deal with the new marketplace. I think that trying to come to grips with some of the new marketing techniques is really an important part of that overall process.”

You may worry about not having the time and money to boost your laundry’s marketing profile, says Wallace, but you shouldn’t.

“What I’ve found exciting about social media, digital media, web, all these different things that have come along the last couple of years, these are almost all low-cost or no-cost opportunities.”

Thus, Wallace ran down a list of ways in which a laundry operator could promote his or her business today. Here are No. 6 through 10:

6. SEND AN E-MAIL NEWSLETTER

Use the e-mail addresses that you gathered from your contests [see Part 1] to update those customers with a newsletter about your business. It’s cheaper to distribute such newsletters via e-mail instead of printing and mailing them.

What should your newsletter include? Share print-to-click coupons, store news, and announcements of upcoming special events. Position yourself as a garment care expert by sharing laundry tips. Write a blog.

“What do people do today when they get a great coupon via e-mail?” Wallace asks. “Forward it to their friends and family. You used to mail a coupon. They had one coupon and one person redeemed it. What happens now? Maybe that coupon goes out to everybody on my e-mail list, all my friends on Facebook, anyone who follows me on Twitter. All of a sudden, this coupon that you sent to one regular customer just went out to maybe another couple hundred people.”

Wallace recommends keeping an e-newsletter short and easy to scan, designing it for the “preview pane,” creating a strong subject line, and selecting a reputable e-mail marketing service (Constant Contact, MailChimp, AWeber, etc.) to maintain and deliver your newsletter.

7. ADVERTISE WITH GOOGLE ADWORDS

Use “search advertising” to find customers when they’re in need of laundry services, says Wallace, and a high-profile method is advertising using Google AdWords. “We want to do everything we can to let people find us organically, but this is where we cover our bet. This is where we pay for placement.”

You create ads and choose keywords, which are words or phrases related to your laundry. When people search on Google using one of your keywords, your ad may appear next to the search results. Plus, you can set local parameters such as ZIP code and a radius search.

Google AdWords can be cost-effective, Wallace says, because you establish a budget for the campaign and control your ad spending. “The impressions are free; they can see that your results are there. You’re only paying if they click. There’s a process here, that you can view on your own, whereby you bid on certain search terms, and you’re paying per click.”

The amount you spend is entirely up to you, and there’s no minimum. Wallace used $25 per month as an example. When your ad has drawn the number of clicks that exhausts that budget, you have the option to end the campaign then for the month or to add funds to keep it going.

“What’s a regular customer going to spend with you in a year?” Wallace asks. “The average Laundromat customer is going to spend 500 bucks a year, probably closer to a thousand. … You can go the extra mile. There’s a cost associated with it, but it’s a low cost.”

8. INCENTIVES WITH FOURSQUARE AND GROUPON

The service called foursquare allows users to “check in” via a smart phone app or SMS. Users share their location with the public while collecting points and virtual badges

A business benefits from foursquare because the activity attracts new customers, rewards loyal customers, and provides another outlet for offering specials, mobile coupons, and prizes or discounts.

“It’s works well where people are going on a regular basis. … It’s the frequent flyer model. It’s the punch card from the sandwich shop. As the business owner, you give them different perks, different discounts, different things to attract, mobile coupons, and you’re rewarding them for being a regular customer. It’s the oldest idea in retail.”

Groupon is a “deal of the day” website that features discounted gift certificates offered for a limited time that a customer purchases online and then presents at the business. Groupon offers small businesses big exposure and measurable marketing, Wallace says; 91% of businesses report seeing new customers from their promotions.

But critics say the new business generated by a Groupon campaign is short-lived and doesn’t result in repeat customers.

“Among a lot of the small-business people I talk to, the jury is still out,” Wallace says. “It definitely generates leads. You get people that use the service. You’re basically asked to give about a 50% discount, splitting the other 50% with Groupon. But you’re getting people in the door.”

For example, a Laundromat sells $15 worth of laundry service for $7, or does 25 pounds of wash, dry and fold service for $20.

9. GET SOCIAL ON TWITTER

Twitter is the fastest-growing social network, with 300,000 people joining every day. Its users number 200 million, Wallace says.

The microblogging site enables users to send and read posts of up to 140 characters called “tweets.” Unregistered users can read tweets, while registered users can post tweets through the website, SMS, or a range of apps for mobile devices.

From a business perspective, Twitter is used for customer service, sharing immediate information, gathering real-time market feedback, generating leads, building customer relationships, marketing, and sharing coupons and discounts.

“It’s a great way to stay in communication, but it’s the same principle. It’s word of mouth. It’s peppering out information about your business and asking people to follow through on it.”

Wallace described a Laundromat owner based in Ohio who tweets that his machines are open or offers a free soda or box of soap to the first 10 customers to show up. “He said that every time he tweets during slow times, he gets customers.”

10. GETTING FOUND BY GPS

Increasingly, people are using the search functions of GPS units commonly found in today’s vehicles and smart phones to find local businesses. There are two main information providers—Navteq and Teleatlas—and businesses can register their sites for free with those companies, Wallace says.

“I’ve had members tell me that this is great, it’s like the best tip they got when we first shared this a year or so ago,” he says. “Is it going to revolutionize your business? No, but it may find you a few new customers.”

Whether you try out only one or two of these tips or all of them, it’s absolutely vital that you become more proactive in promoting your business, Wallace advises.

“A lot of this talk is about ‘grabbing the wheel,’” he says. “A lot of this is happening either with you or without you. As a small-business owner, I’m saying, ‘Grab the wheel.’ Have an impact on what’s happening with the way your business is being viewed online and through social media.”

Click here for Part 1!

June 21, 2012

NEW YORK — But only small percentage of companies integrate social media into overall strategy

NEW YORK — Does your coin laundry have a social media presence? Not only consumers find their way onto the popular social network sites, an increasing number of businesses also use it.

Results from a recent study show that eight out of 10 U.S. companies are present on Facebook, while 45% have Twitter accounts. LinkedIn (48%) and YouTube (31%) are other widely used sites.

Four out of 10 American companies listen to what consumers say about them on social network sites, and 83% of companies indicate they always deal with questions or complaints sent to them via social media.

“Social media makes conversations between consumers very transparent,” says Prof. Steven Van Belleghem, partner at the research agency InSites Consulting, which surveyed more than 1,200 managers and business owners from several countries. “Companies can quite easily discover what people are saying about their products and services. An increasingly growing group is strongly interested in this real-time feedback from the market.”

But a mere 11% of companies are integrating their social media approach into their overall business strategy, while 17% say they are mid-integration. Some 26% of American companies aren’t doing anything with social media.

“A huge number of companies feel external pressure to be present on social media,” says Van Belleghem. “Unfortunately, this very often results in static corporate pages where nothing really happens. It too often leads to mere presence, not engagement with people.”

May 29, 2012

NEW YORK — Do you know what people are saying about your laundry business?

NEW YORK — People are talking about your laundry business. Do you know what they’re saying?

The answer can spell the difference between success and failure. Positive reviews on Internet message boards help boost revenues and fatten your bottom line. Negative reviews can spike your best business plans.

“People are increasingly putting reviews online as the Internet becomes more social,” says Daniel Burrus, a business consultant based in Hartland, Wis. “All of the reviews are in the cloud and available for anyone to read.”

And read they do: For many businesses, social media are quickly becoming the best sources of new customers. Just a few of the most popular sites are Yelp, Twitter, Angie’s List, Facebook, LinkedIn, and YouTube. A recent study from Harvard Business School revealed a direct correlation between star ratings on Yelp and revenues at a business.

Why the upturn? A big reason is technology’s growing heft. “Our main computing device is shifting from the laptop to the smart phone,” says Burrus. “And unlike our laptops, our smart phones are always with us.” Smart phones are constantly getting faster at processing data. That helps people quickly post reports on their business experiences while searching for the most highly ranked providers of goods and services.

WATCH THE SITES

Watching for reviews about your laundry business on social media sites poses a challenge. Monitoring them all would take a lot of time, and time costs money.

What to do? Set up an automated search to alert you whenever your business is reviewed. Google offers the most popular of such alerts. “Google Alerts are easy and free,” says consultant Bob Phibbs, Coxsackie, N.Y. “You can create an alert that sends you an e-mail every time your business name is mentioned online.” If such alerts are too numerous, you can specify that Google send you a consolidated report once a day. (Google Alerts is at google.com/alerts).

You should also set up an alert in Twitter to let you know when your business is mentioned in a Tweet. Twitter is especially important for your online reputation because people with smart phones use Twitter all the time. Your customers are most likely already using Twitter, and you want to pay attention to what they say. (For information, go to twitter.com/alerts.)

Bonus tip: Ask your customers what Internet sites they use to find businesses like yours.

RESPOND TO NEGATIVE REVIEWS

Every business will get some negative reviews. “People gripe for a lot of reasons,” says Phibbs. “Maybe they did not get waited on fast enough, or maybe a coupon expired and you didn’t honor it.”

When your business receives a negative review, it’s important to respond with an online message that prospective customers can see, says Phibbs. “Posting a response shows you are listening to your customers and taking action.”

Avoid impersonal or canned posts. Compose your posts in words that directly address the complaining customers’ concerns, suggests Phibbs. “Personalize your message with words such as ‘I own the business with my wife Mary and we are sorry to hear you had a bad experience.’”

Your responses should also note that you are attempting to improve whatever areas the customers found lacking (cleanliness, customer service, employee friendliness, etc.). “Finally, invite the customer to contact you,” says Phibbs. “Include an e-mail address or phone number.”

Carefully written responses can turn a negative situation into a positive one. Paying attention to customers and taking action on complaints can build loyalty. You can even turn an angry person into a raving fan.

From time to time, you will run into a review that, while legitimate, comes from a customer who is simply being unreasonable. “You often have outliers on the negative side, because the unreasonable customer can be very vocal,” says Greg Sterling, a San Francisco-based Internet analyst.

“While most consumers are reasonable and will look at the consensus and not ascribe too much weight to a single negative review, it still has to be addressed,” says Sterling. Post a response in terms that illustrate the importance you place on the area the customer has addressed. Emphasize that you intend to do better in the future.

Bonus tip: Look at negative reviews as informal customer surveys that help you identify and rectify business problems.

HANDLING ILLEGITIMATE REVIEWS

Social media have their dark side: Not all negative reviews are legitimate. What do you do if you suspect a negative review has been posted by a competitor, or by a disgruntled former employee?

One thing not to do, says Burrus, is stir the pot. “Don’t create a fight and don’t incense people in ways that make them do more negative things.”

Stay positive, even in the face of unfair practices. “If the poster is a competitor, post some evidence to the contrary underneath what they wrote,” suggests Burrus. “You might say something like, ‘Here is a link to 50 customers who disagree with you.’”

And what if the poster is a former employee? “Have your lawyer contact the person to let them know they must cease and desist,” suggests Burrus. “Let them know they cannot smear a reputation without ramifications.” A legal letter can convince the person to remove an offending review.

The challenge is even greater for sites that allow anonymous postings. If a review is blatantly unfair (for example, a personal attack on an employee), you can contact the site and ask that it be removed.

Finally, there are the gold diggers. “Some people will give you bad reviews in hope that you will contact them with deals such as half off a future purchase,” says Phibbs. Don’t take the bait. Instead, post a reasonable response that conveys the actions you are taking to provide quality service.

RESPOND TO POSITIVE REVIEWS

Your good business will likely get a lot of positive reports. “It is just as important to respond to good reports,” says Phibbs. A simple “Thanks so much for the compliment” may do for a general report, but take time to address any specific topics the customer has mentioned. (It’s not necessary to respond to every favorable report once you start getting more than a handful).

Phibbs suggests printing good reports and posting them on the wall in your store, perhaps under a headline such as “Raving Fans of Our Business.” Copy them to your website and to your Facebook page as well.

Bonus tip: Don’t be afraid to ask people to post good reviews. But avoid offering rewards for doing so: Websites frown on that practice.

MONITOR YOUR REPUTATION

Google Alerts, as already mentioned, is a great service for getting a heads up on the lowdown. But you may want to invest a little more time and effort into managing your reputation. That’s where online reputation tracking services come in. “Most small businesses don’t know about the many online reputation tracking services, and just search their business names once in a while,” says Sterling. “Yet the specialized services can give you important information.”

You can have reviews sent to your mobile phone and have message threads with negative reviews tracked in real time, giving you granular control over responses. This can be particular helpful when damaging disputes break out about your business. In contrast, says Sterling, e-mails from Google Alerts do nothing more than inform you that a post has been made, and even that information arrives after a time lag.

Be aware that Yellow Pages and newspapers may include reputation-monitoring tools in advertising packages. That can reduce your costs considerably.

SUGGESTION BOX

Maybe reputation monitoring seems like more trouble than it’s worth. Keep in mind, though, that your business is at stake: More people than ever are turning to online reviews for help deciding what business to patronize.

Indeed, every online review site is a valuable suggestion box for your business. “There is a great deal you can learn from reviews,” says Sterling. “They can help you think of new products and services for your customers. Be open and embrace them.”

May 15, 2012

OMAHA, Neb. — Great opportunity for unveiling fresh look at your store

OMAHA, Neb. — Have you recently upgraded your washers or dryers, changed your services or finished a retool? If the answer is yes, a grand reopening should be in your future.

A grand reopening is a great opportunity for your current and new customers to get a fresh look at your store. Although a small financial investment is required, the return can be significant for both you and your customers.

Timing

The event should be held to celebrate new machines in your store. If you’ve recently replaced all of your washers, for example, an event to highlight this shows customers your commitment to both the store and their business.

To really show off your store, make sure everything is in place. When hosting a grand reopening, you should take the time to paint the walls, wax the floor, replace stained ceiling tiles, and add new signage. Although not all of those fixes may be necessary, an event is a great time to evaluate the condition of the store. Customers assume you have functioning equipment, but the difference between your store and the one down the street lies in the details.

Now that you know what qualifies as an appropriate time to have a grand reopening, when should you actually host the event?

Although weekends are most likely your busiest period of the week, they still provide the best time for your event. More people can attend then than during the week, and it shows that you, as an owner, want to thank them for their business during a convenient time.

Market the Event

To draw the most traffic to your event, a little marketing is needed. Direct-mail pieces, flyers, or door hangers are always good options.

Also, consider community newspapers and local radio stations as a means to reach clientele.

Social media sites are another place to publicize your event. If your store currently has Facebook, Twitter or other social media accounts, make sure to promote the event through these channels. You can also offer an incentive to customers who check in to your event on Facebook Places or Foursquare.

Word-of-mouth advertising is the most flattering form of marketing. Make sure to tell current customers about the event and its highlights. They can tell their friends and family, who could wind up using your store’s services.

Activities and Promotions

If you had a grand opening, many of the events that happen during the grand reopening will be similar. When it comes to the activities offered, make sure you’re aware of your demographics.

An idea that I’ve seen work extremely well in the past is reaching out to a local radio station that resonates with your target consumer. If you have a significant Hispanic population, for example, the Hispanic radio station may be willing to broadcast from your store. The presence of the radio station will attract your primary target audience.

It’s important to plan family events as those customers bring in the biggest loads. For example, project a movie on the side of the building and create a drive-in atmosphere. This shows that you’re in tune with their needs.

Offering food at your event is essential. It can be something as simple as having a barbecue with hot dogs and hamburgers, which shows your customers that you appreciate their business—building loyalty in the process.

Promotions going on during your event draw new customers into the store. They should coincide with the machines you just replaced. For example, if you just had all new dryers installed, you may want to offer free dry time. If you’ve replaced washers, offer half off certain wash cycles. Either way, provide an incentive for customers to use the machines and become familiar with them.

You may also want to offer some sort of giveaway—especially if it ties into your new machines. For example, if you recently replaced your top loaders with front loaders, you may offer your customers a sample of high-efficiency soap. This will help them become familiar with your product, keeping them coming back regularly.

Making the Impact Last

During your event, it’s important to connect with your attendees and build a relationship that makes them become repeat customers.

In order to make a new customer a regular, you should make sure to promote your weekly specials at the event. If you offer dollar-off washes on Tuesdays and Thursdays, let your attendees know that through handouts and by word of mouth. Make sure to print materials in both English and the language spoken by most of your customers. This ensures that customers will not only understand your message, but it will help them feel welcomed at your store.

Store owners should aim for a 25-30% increase in customers following the event. Have a sign-up sheet for promotions at your event to help keep customers coming back. This can be hard to measure, but it’s not impossible.

Tapping Your Distributor for Help

If having an event at your store seems overwhelming, or if you just would like extra guidance, contact your distributor. They have been a part of events like this in the past and can offer best practices that they have found to be successful in your area.

On-Going Customer Marketing

Even after the grand reopening, you must continue to attract new customers and retain the ones you have. Try to connect with your customers every month by offering a promotion to show that you value their business.

With proper planning and execution, a grand reopening is the perfect opportunity to show how your laundry fits into the community and can help you grow your business in the process.

August 9, 2011

CHICAGO — Two-thirds of self-service laundry owners and operators who have entered the realm of “new media” use a website to promote their stores, according to July’s AmericanCoinOp.com Wire survey. Respondents were asked to identify which of several new-media tools they use.

More than 45% use Facebook, roughly 18% use e-mail marketing, 12.1% use Twitter, and 6.1% use “Other.” No one who took the survey uses text messaging as a promotional tool. Slightly more than 21% said they don’t use new-media tools.

“A website with keywords is a must-have for laundry owners now,” wrote one respondent. “It’s the main way that customers look for Laundromats in their area. Yellow Pages are so yesterday!”

Another countered that they’ve never had a customer find them through the Internet. “The media source that has worked best for us is GPS. I once had a couple come in to wash some items who said they entered ‘Laundromat’ in their GPS, and it pulled us up.”

Attracting new customers (84.6%) is the reason that most use these new-media tools, but more than half (53.8%) use them to publicize promotions. Educating customers (42.3%) and increasing customer loyalty (30.8%) were the other choices from which respondents could choose.

Do the tools satisfy the users’ marketing goals? Roughly 47% said “sometimes,” 33.3% said yes, and 20% answered no.

While the Wire survey presents a snapshot of readers’ viewpoints at a particular moment, it should not be considered scientific.

Subscribers to Wire e-mails—distributed twice weekly—are invited to take a brief industry survey anonymously online each month. All self-service laundry owners and operators are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

To sign up for the Wire, click the “Subscriptions” button at the top right-hand corner of this page and follow the instructions.