Palm Springs Business

Most everyone on the planet is aware of the Google juggernaut, a gargantuan company that has dominated the online sphere for years. However, how many people know that the market capitalization (or total value of the company) of Google is actually less than the amount of money earned through email marketing? If that seems too incredible to believe, consider that you can add the market cap of Google to those of Microsoft, IBM, Xerox and Hewlett-Packard and still not add up to the mountain of money that email marketing has generated for its users. Indeed, based on Direct Marketing Association (DMA) statistics and linearly extrapolated back to 1995, email marketing so far in its short fifteen year life has made more money than the market cap of Apple Computer… twice over!

A Prodigious $671 Billion!

42% of Email Marketers Don’t Know Their ROI

My thanks to Hal Lacino of Benchmark Email for this contribution.

Best regards,

Most marketers actually train their audiences to ignore them.  Think about how many emails you get that you automatically delete without even thinking.  At some point you decide the content you receive from those senders isn’t important anymore.  At that point you start to ignore them.

Are you training your list to ignore . . . or to anticipate?

Good marketers actually build a relationship such that customers want to hear from them.  The secret to developing this kind of relationship lies in understanding how to segment your list so that each recipient gets only the content they’re interested in and they get it at the frequency that they desire.

I’ve found there are three powerful ways to segment your list that allow you to deliver the right content to the right people every time.

First is By Lead Source

Knowing where a lead came from helps a marketer understand their psychographics of their prospects.  If I know a lead responded to an advertisement about lead nurturing, then I’m going to be successful talking to that person about lead nurturing, drip marketing, autoresponders and other related topics.  If I know a lead came from a customer referral, I’ll be much more successful leveraging the relationship of the referrer than anything else.

Knowing and tracking your lead source on every lead is critical to understanding how to market (build a relationship) to them.  An added bonus is that by tracking lead sources from the top of your sales funnel all the way through the bottom of the funnel gives you the intelligence you need to know which marketing activities are making you money and which are costing you money.

The Second Powerful Way to Segment Your List is by Demographics

You should be gathering as much information about your leads and customers as you can so that you can segment by demographics.  It might be that your product or service is tailored for a specific demographic – so it’d be important to know if that’s actually who’s responding to your marketing.  Also, different demographics respond to different messages.

Whether you’re comparing middle-aged prospects with young-adult prospects or east coasters versus west coasters, they’re going to respond differently to different messages.  Understanding the nuances of the different demographic groups in your list is crucial to being able to craft your messages for maximum relationship building which equates to maximum profits.

The Third (and I believe most powerful) Way to Segment Your List is by Behavior

If you track response to every message you send, you’ll be able to measure who responds to what.  If I were selling camping gear I’d track who clicked on ads about sleeping bags, who clicked on links in my emails about tents, who read my articles on fire starting, who attended webinars about great places for snow camping, etc.  By knowing what people are interested in (because they told you with their behavior), you can always ensure that the information you’re putting in front of them is the most relevant to them at the time.

Most businesses aren’t thinking about this at all.  Most people just batch and blast – they send the same email to everyone on their list.  That trains people to ignore.  If you segment your list these three ways, and you carefully think through every communication (always wondering what a particular prospect or customer would want to receive), then you’ll be way ahead of your competition.

Special thanks to Tyler Garns, Director of Marketing for Infusionsoft, has over 10 years of experience in the field and is a recognized expert in Internet marketing. Tyler focuses on building the Infusionsoft brand via marketing, communications and social media. Tyler blogs at the Infusionsoft Blog.

Best regards,

Last week, I received a note from a potential business owner who is thinking of coming to Palm Springs.  I thought I would share that note and my response with you.

“Hi John,

I came across your blog/newsletter online while trying to research the potential of buying an existing business in Palm Springs. I am wondering specifically if the Palm Springs economy is in any stage of recovery? Of course, the chamber and many who are trying to encourage growth to the area are going to be very optimistic. I understand that, but I am looking for reality. I would be just one of the small guys trying to build a small business and make a “decent” living from it. Perhaps the playing field right now is only with the big guys as they can take the risks and afford the wait better? And philosophically speaking, will the recovery look like anything it did before?

So, as a previous member of the Chamber and a marketing guy in the PS area, do you have any insight for me? Also can you refer me to any data/statistics on businesses closed, opened, demographics (residents and tourist seasons), etc, etc.

Anything else you might suggest is welcome, or anyone else to talk to.

Thanks so much.

Susan”

“Hi Susan,

Thanks for the note. You ask some great questions and I wish I could be optimistic for you. However, in this economy, any new business venture is a wild card. If you are prepared to “weather the storm” there are some great opportunities right now in Palm Springs. Rents/leases are at an all-time low and if you commit to a 5 – 10 year lease, you could be in great shape when the economy breaks.

On a positive note, the city council is close to approving an $80 million deal with a local contractor to demolish our old, closed down, downtown mall and build a great new project with new streets, retail, Movie Theater and green space. They hope to break ground early next year and finish the first phase by 2014. It will revitalize our downtown area and should make being a business owner very attractive.

Also remember that Palm Springs is a tourist location that is very seasonal. Many business close down in August and our tourism takes a pretty big hit during the summer months. I have noticed in the last five years that we are getting more and more travellers joining us on the weekends from LA and San Diego. Palm Springs is a great outlet for those who want to drive less than 2 hours and enjoy our beautiful desert.

The city of Palm Springs website may contain some statistics that should shed some light on our current business climate. Also, the Economic Development Department would be happy to answer any questions you may have. Just go to the city website for more information. Google Palm Springs and it will take you there. Feel free to write if you have any further questions.

Good luck!”

Best regards,

Funding for small businesses is always a challenge.  Here are some tips that may help.

• Research and prepare:  Determine which banks participate in government programs and are familiar with your industry and target market.  Find out what documents are required.  Have a relatively short business plan that will answer lenders’ questions.  Some lenders and small business advocates offer business loan checklists with information about required financial statement projections and copies of cash flow.
• Get advice on SBA loans:  Government offices can provide SBA loan application checklists.  Consider attending workshops that SCORE and the Small Business Development Center offer and work with their consultants.
• Be up-front with lenders:  Demonstrate your ability and willingness to repay the loan without making broad, unsubstantiated statements about your finances.  Be conservative about asset lists, collateral statements and financial projections.  Be willing to discuss risks and financial projections.  Be willing to discuss risks and answer questions about how you will manage them.
• Be persistent:  Consider going to other lenders or banks even if you are denied.  Seek out referrals from successful entrepreneurs, associates, acquaintances and friends.
• Lower start-up costs:  Lease equipment, start out leaner and take other measures to scale down the business and increase odds of qualifying.  Show how a franchise business model will help.
• Calculate carefully:  Examine expenses closely to account for non-recurring expenses, account for all revenue with cash businesses, show how you’ve paid past bills, loans, vendors and include personal credit reports.  Get accurate real estate appraisals on property.
• When credit is blemished:  If it’s because of medical bills or a unique situation, explain it.  Before applying, work diligently to repair your credit.  Show you’re willing to risk your own money with a reasonable down payment.

Thanks to my sources, the US Small Business Administration and The Desert Sun newspaper.

Best regards,

Following are Business New Briefs from the Desert Sun, The Valley’s source of News and Information

Bank’s net income rises in first quarter

COACHELLA VALLEY — FirstBank, which operates five branches in the Coachella Valley, reported that net income for the first quarter increased 15 percent to $40.48 million compared to $35.16 million during the first quarter of 2010.

FirstBank Holding Co., based in Lakewood, Colo., operates 113 locations in Arizona, California and Colorado.

Total deposits for FirstBank California were $258.6 million and total loans reached $133.5 million for the quarter ending March 31. Total loans grew to $4.63 billion from $4.27 billion, an 8 percent increase since the first quarter of 2010.

FirstBank said total deposits for all locations were up 5 percent to $9.84 billion compared to the same period last year.

Post-war paintings on exhibit at gallery

PALM DESERT — Carlson Gallery has opened on El Paseo with an exhibition of vintage post-war paintings and sculpture.

Gallery owners David and Jeanne Carlson have been collectors and dealers for 35 years.

The gallery focuses on abstract expressionism, figurative artists and Los Angeles painters from the 1950s through the 1970s.

Exhibits include paintings from Los Angeles artists Craig Kauffman and Robert Irwin, Bay Area artists John Saccaro, Gordon Onslow Ford, Felix Ruvolo and Joan Brown.

The gallery is collecting Asian-American abstract expressionism featuring artists Masatoyo Kishi and Walasse Ting.

The gallery is at 73-111 El Paseo, Suite 107, Palm Desert.

Workshop to focus on small businesses

PALM DESERT — SCORE, the nonprofit group that counsels small business owners and entrepreneurs, will hold the workshop “Patents, Trademarks, Copyrights and Protecting Your Intellectual Property” from 6 to 8:30 p.m. Wednesday as SCORE’s Palm Desert office, 43-100 Cook St., Suite 104, Palm Desert.

Patent attorney William G. “Greg” Lane, “Nick” Kraushaar, an attorney-mediator-litigator, and Andrew “Andy” Lorenz, an inventor and Silicon Valley entrepreneur, will present the workshop and answer questions.

The cost is $15, and seating is limited.

Info: (760) 773-6507 or www.scorecv.org.

Government topic of business forum

PALM DESERT — Coachella Valley Women’s Business Center will present the workshop “Make the Federal Government Your Customer: Procurement and Government Contracting” from 6 to 8 p.m. May 11 at the CVWBC office, 77-806 Flora Road, Suite C, Palm Desert.

Joy White, CEO of Info Team Inc., will discuss the $340 billion in federal contracting available to small businesses. She will answer questions about whether government contracting is right for certain companies, what the requirements are and how to locate opportunities.

The cost is $15 with online registration.

Info: www.cvwbc.org or (760) 345-9200.

El Mirasol owner opens second eatery

PALM SPRINGS — The popular El Mirasol restaurant is expanding.

Restaurant owner Felipe Castaneda last week opened El Mirasol at Los Arboles in Indian Manor, 784 N. Indian Canyon Drive, Palm Springs.

Castenda said the restaurant in the city’s uptown design district will employ 12 people.

“We’ve kept the colonial style,” he said. “It’s gorgeous. It will seat 50 people in the courtyard and 39 people inside.”

The original El Mirasol is at 140 E. Palm Canyon Drive.

“We will be offering the same menu, at the same prices,” Castaneda said.

Center receives grant to expand programs

PALM SPRINGS — Mizell Senior Center has received a $10,000 grant to expand its exercise and fall prevention programs from the Community Foundation, which serves Riverside and San Bernardino counties.

The grant will help the Mizell Center meet the Centers for Disease Control guidelines and recommendations for such programs, development director Jack Newby said in a news release.

TV stations win awards for videos

PALM DESERT — KMIR6 and KESQ television station have won regional Edward R. Murrow awards.

KESQ won in the video news series category for “Confessions of a Child Molester: It Happens to Boys” and “Confessions of a Child Molester: Who Watches Offenders Near You?”

KMIR6 won in the video sports reporting category for “The Desert Storm.”

Register for free surgery seminar

PALM SPRINGS — Bodyworks Physiotherapy Clinic will host a free seminar for patients who are scheduled to undergo or who are considering total knee and hip replacement surgeries.

The event is from 6 to 6:45 p.m. on May 24 at the clinic, 333 N. Palm Canyon Drive, Suite 114, Palm Springs.

Reservations are required. Space is limited.

David Wilson, founder and clinical director of Bodyworks, and his staff will demonstrate proper pre- and post-op exercises and show rehabilitative equipment that patients might need or use.

Info: (760) 327-4244 or www.bodyworksphysio.com

Planned giving topic of webinar conference

PALM SPRINGS — The Desert Communities Chapter of the Association of Fundraising Professionals will host the webinar/audio conference “Developing a Planned Giving Marketing Plan” from 9:30 a.m. to noon May 19 at the Joslyn Center in Palm Desert.

Timothy Logan, vice president and senior consultant of planned giving services and nonprofit health care services for RuffaloCODY, will offer insight into leveraging marketing efforts.

The event is aimed at staff and board members of local nonprofit organizations.

Info: (760) 485-5986 or email afpcadesert@gmail.com to make reservations.

For more information on these and other business related issues in the Coachella Valley, please contact me at 760-641-8709 or email me at info@visionpsp.com.  Advertising space is available on this blog, contact me for more information.