In a recent article about Dunkin’ Donuts versus Starbucks I read an interesting piece of information. The customers who were in Dunkin’ Donuts told the reporter the reason they stick with Dunkin Donuts is because they are from the North East and Dunkin’ Donuts is what they are used to. The same is true for West Coast residents they tend to turn to Starbucks. How can this information help your business?

If you can pinpoint potential customers and market to them more efficiently, you will see better returns on your marketing investment. A tool that can help business owners better utilize their marketing dollars is GIS (Geographic Information Systems). In fact, you may have used Google Earth - a basic version of GIS technology.

GIS tools, such as Google Earth, use location information to help users make decisions. So, how could Google Earth help you understand your customer better and make more money?

First, map all your current customers to see where they are located. Next, use demographic data to find what households have roots in the North East. Data can be obtained from moving stats, relocation stats from State or County, or internaly collected data. Using color coding, the more intense red has a higher concentration of the target market, it is easy to identify high concentrations of the target market. So based on the high concentration of red and existing cutomers east of I-95, you can target a direct mail campaign to the area you identify.

Why would using Google Earth help direct mail? Couldn’t I just guess the area and send postards to those homes, sorta like trial and error? You could, but what if you guess wrong, how much would the mailings cost? A friend of mine decided to send postcard mailers to all the households within a 10 mile radius of her store.

The cost was an astounding $5,800 for the postcard and postage. I am not sure about you, but as a manager in a small business, $5,800 is quite a bit of money for one direct mail compaign. The large dollar amount also increases the break-even point, meaning more sales to cover the cost of the direct mail.

Instead, I offered to map her existing customer’s versus the county population. Then we tied in the female population under 30 years old. The ending result was the above illustration (blue and red). The darker red areas identify areas with higher concentrations of females under 30. Once we download the information and saw the total households, the total households were roughly 2,000. Instead of her direct mail costs totaling $5,800, the costs dropped to $1,160.

Now to turn on my marketing hat for a minute, direct mail typically has a return of less than 1%, which means of the 10,000 mailed, only 100 will respond. On the other hand, more targeted direct mail can have up to a 6% return or even higher. With a 6% return, on 2,000 households you could expect to see 120 people at the store. So, with 8,000 fewer households receiving the mailer we still managed to get a higher response! Also, since the mailer is targeted to the store’s target market, the customers tend to have a higher average sale per transaction.

You are probably thinking, that is all well and good for a store but my business is not based on a store front, how would GIS benefit me? GIS has been used by many different businesses for over 20 years. Companies such as McDonald’s and Wal-mart have been using the technology to count customer cars and determine new store locations. Insurance companies use GIS to measure their risk and market to areas with lower risk. A land developer uses the information to find their next project site. Land conservation groups use GIS to rank the land they want to buy. Shipping companies use GIS to route where their vehicles will travel each day. The possibilities are endless. If you have a question on location, GIS can help you answer it.

Taking information off a spreadsheet and putting it in a picture gives business owners the ability to make decisions within minutes instead of hours.

Checkout how you can implement Google Earth in your business: http://1globalmind.com/2008/02/13/google_earth_for_business/ 

Once you try it, post your results here. Have fun!

In the United States, people work on average 2000 hours per year.  The average person in the United States takes 10.5 vacation days per year.  Most people do not take any vacation, instead continue working.  Then once people go on vacation, they will bring a cell phone, PDA or laptop on vacation, thus never really checking out of work. 

The US is number one in productivity, surpassing the number two county, France, by more than 300 hours per employee.  The interesting part is that France ranks fourth in the world for total average hours worked, but second in productivity.  Isn’t that powerful?  In France, employees take, on average, 25-30 vacation days per year and have a 35 hour work week. 

Knowing the statistics about France and how vacation has worked in relation to productivity, I think it is safe to say that higher productivity is not necessarily derived from more hours worked.  As Albert Einstein said, “Insanity is doing the same thing over and over and expecting different results.”  If I am sitting at my desk working or in meetings all day, how much creativity and business thought gets accomplished?  None! 

One of the reasons I think this is an important topic, especially now with all the “recession” drama we deal with at our office, in the media and with our banks, because now is the time to be thinking outside the box about how to make your business outstanding.  I recently went on a short cruise, which means no access to internet or phone (without paying a hefty fee).  I will admit, I had BlackBerry withdrawals but it turned out to be a blessing.

I was able to read books I had not been able to get to. I was also able to just hang out and do “nothing.”  What a fantastic feeling to not have a schedule or agenda for the day.  When I got back I realized that the time away, although short, did wonderful things for my creative thinking process.

I was recently reading a blog post from Paul Orfalea, the founder of Kinko’s, and one of his comments was that he used to take three weeks off at a time.  He quickly realized that if you take one week off, you have one week of work on your desk when you return.  If you take two weeks of vacation, you have two weeks of work on your desk.  But, if you take three weeks of vacation, people find a way to get the work done without you. I think it is a great idea, simply for the fact that every Executive should have procedures and plans in place, so that if she was not around, the company would still be able to function.

So, forget about how bad everything seems to be right now, take a long weekend and recharge your mind.  I am sure your company and employees will benefit in the long run!