Beware The Temptation to Bow to the Squeaky Wheel

Posted on January 12, 2025 by Arnold Pollak

Good versus Cluttered Signage

The “squeaky wheel gets the grease” is a well-known adage that highlights how the most vocal or noticeable issues tend to receive the most attention. While this principle might apply effectively in some contexts, it becomes a challenge in business, especially when designing and implementing signage strategies.

The question is: should the squeaky wheel dictate your signage decisions? Let’s delve into this theory, its implications for signage, and why it is essential to balance focus and avoid being overly reactive to the loudest demands.

The Role of Signage in Business

Good signage serves as a silent yet impactful ambassador for your business. Good business signage attracts attention, conveys information, and reinforces your brand identity. Whether you’re running a small boutique or a multinational chain, well-designed signage can:

Enhance visibility and draw in potential customers.
Communicate essential details like promotions, directions, and operating hours.
Turn a warehouse feeling space into a warm inviting environment people want to shop in.
Reinforce brand trust and professionalism.

However, if the design, placement, or messaging of your signage is dictated by the squeaky wheel – a vocal customer or employee with immediate, short-term concerns – it can completely derail your long-term strategy.

Why Catering to the Squeaky Wheel Can Backfire

While it’s beneficial, if not essential, to listen to feedback, over-prioritizing the demands of the squeaky wheel can result in poor decision-making. Here are some key reasons:

Short-Term Gratification vs. Long-Term Goals The squeaky wheel often focuses on immediate needs. For example, a vocal customer might demand large, overly bright signage for an ongoing sale. While this could temporarily boost foot traffic, it might clash with your brand’s aesthetic, alienate your regular clientele, or fail to align with your broader marketing objectives.
Distracting from Data-Driven Decisions A single loud opinion should never outweigh comprehensive research. For instance, your business might have analytics proving that subtle, well-placed directional signs increase customer navigation and satisfaction. A squeaky wheel’s demand for overly flashy signage could disrupt this harmony.
Alienating Other Stakeholders If you focus solely on addressing one vocal party’s preferences, you risk alienating your broader audience. Signage should cater to the majority – a collective representation of your target demographic – not a minority’s immediate gratification.

Real-Life Stories of Squeaky Wheels and Signage

Story 1: The Oversized Sale Banner
A boutique store owner had a loyal customer who insisted that an enormous neon-colored banner would drive sales during a holiday promotion. The owner, eager to please, replaced the store’s elegant signage with a garish banner. While the store saw a short-term spike in foot traffic, regular customers commented that the signage clashed with the brand’s upscale identity. The business later had to spend significant resources repairing the damage to its image.

Story 2: Employee-Led Signage Change
In another example, a restaurant manager listened to an employee’s suggestion to add multiple directional signs in the dining area to “help customers.” While well-intentioned, the signs cluttered the space and confused diners, leading to complaints about the overwhelming atmosphere. A professional signage consultation later revealed that one well-placed sign near the entrance was all that was required and worked better than all the other signs together.

Finding the Right Balance

To avoid being overly influenced by squeaky wheels, businesses must adopt a balanced approach to signage decisions:

Data-Driven Insights
Analyze customer behavior, traffic patterns, and sales data to make informed signage decisions. For example, heatmaps of store foot traffic can help determine optimal sign placement.
Consistent Branding
Your signage should consistently reflect your brand’s voice, colors, and values. Even temporary deviations can confuse customers and dilute brand equity.
Broad Feedback
Gather input from multiple stakeholders rather than reacting to one opinion. Consider conducting surveys or focus groups to gain a broader perspective.
Professional Expertise
Consult with signage professionals to ensure your designs align with current industry best practices and long-term goals.

The Bigger Picture

Regardless of your business’s size, allowing the squeaky wheel to dominate your signage strategy can hinder growth and alienate loyal customers. While it’s essential to listen and address concerns, the most effective signage solutions arise from thoughtful planning, alignment with brand values, and a focus on long-term objectives.

Signage as a Strategic Asset

Think of your signage as an investment. It should:

Represent your brand accurately.
Engage a broad audience.
Adapt to changing needs without compromising consistency.

By resisting the urge to overcorrect for the squeaky wheel, you’ll ensure that your signage serves as a cohesive and powerful extension of your business.

For signs that work and reflect your business contact SignForce now on info@signforce.co.za or call +27 (0)11 440 7525 or WhatsApp +27 (0)82 558 6413

For more about SignForce visit http://www.signforce.co.za

Funny Signs: South Africa’s Subtle (and Not-So-Subtle) Sense of Humor

Posted on December 31, 2024 by Arnold Pollak

Funny and Effective Signs – This is not one of SignForce’s clients

Funny Signs: South Africa’s Subtle (and Not-So-Subtle) Sense of Humor

Business signage is meant to be serious – signage tells us where to go, what to do, and sometimes what not to do. But, in true South African style, even the most mundane instructions often come with a dose of unintentional humor or sharp wit. From the rugby field to the pothole-ridden streets, let’s explore some signs that show even serious business can have a laugh at itself.

Rugby Signs: Tackling Humor Head-On

South Africans love rugby – almost as much as we love a good laugh which seems to be evident in how South African’s handle difficult situations, often with DARK humor. Some rugby stadium signs have become legends themselves.

Take, for instance, a field-side sign that proudly proclaimed, “You tackle like your mother bakes rusks – soft and crumbly!” That’s the kind of motivational signage we can all get behind, whether you’re on the field or cheering from the stands.

Then there’s the classic pub sign seen near match days: “Happy hour during the second half – unless we’re losing!” Because even in rugby, humor is the best way to soothe a bruised ego.

Crime and Pun-ishment

South Africans are nothing if not resourceful, even when poking fun at crime. A car wash in Joburg put up a banner that read, “Your car is safe here. We’ve already stolen the radios!” It’s self-aware marketing at its finest – and effective, possibly not so surprisingly because as the saying goes, there is no such thing as bad publicity.

And who can forget those tongue-in-cheek neighborhood watch signs that state: “Trespassers will be shot. Survivors will be shot again, and if they are still alive, they will be prosecuted!” While the humor is dark, it’s undeniably South African in its blunt delivery.

Political Commentary in Neon and Paint

Politics and humor go hand-in-hand, especially in a country as lively as ours. A local takeaway in Cape Town famously posted a sign reading: “Our chicken is grilled, not flip-flopped!” Clearly a jab at the indecisiveness often associated with politicians and their tendency to change parties – and opinions – in order to fit their own personal agenda’s.

Another gem outside a rural shop: “More reliable than Eskom since 1994.” In a land of load-shedding schedules and backup generators, this kind of honesty not only sells but also resonates deeply and allows potential clients to see that the person behind the sign has a sense of humor while relating to the difficulties the prospect may be going through. These signs create camaraderie.

Business Blooper Signs: Accidental Marketing Masters

Sometimes, the funniest signs are the ones that weren’t meant to be funny.

Like a shop that boldly displayed: “We sell secondhand coffins – hardly used!” It might not have been their intention to raise eyebrows, but they certainly got attention.

Or the iconic petrol station sign that read: “We don’t sell petrol. We sell hope. And a Coke.” Whether you’re running on empty or just tired of life’s potholes, that’s the kind of humor that keeps you going.

The Universal Language of Potholes

Speaking of potholes, South Africans have a unique relationship with road hazards, and the signs prove it. A local municipality once posted a warning: “Caution: Potholes ahead. Adjust suspension, not your speed.”

And then there are the unofficial signs, often put up by frustrated residents: “This is not a pothole. It’s an Olympic swimming pool for frogs.” and my personal favorite “Our municipality is so considerate they helped us create safe pools along the road” (with the picture of a man sipping his drink while being submersed in his pothole). Sometimes a little sarcasm goes a long way when nothing else seems to work.

Serious Business, but Funny Too

Signs may serve an important purpose, but just as a business sign reflects the branding and nature of your business, so to can signs be a reflection of our national spirit. In South Africa, where rugby binds us, crime challenges us, and politics entertains us instead of serving us, even the most serious signage can make us laugh.

So next time you see a sign that makes you chuckle, don’t just read it – take a photo, share it, and remember: life’s too short not to see the humor in our everyday surroundings. As one braai-side sign famously declared: “Vegetarian options available: pork, beef, chicken. You’re welcome.”

For signs that work and reflect a little of you and your business contact SignForce now on info@signforce.co.za or call +27 (0)11 440 7525 or WhatsApp +27 (0)82 558 6413

For more about SignForce visit http://www.signforce.co.za

The Power of Signage: Telling Stories Without Saying a Word

Posted on December 27, 2024 by Arnold Pollak

Incomplete 3D cut out signage

The Power of Signage: Telling Stories Without Saying a Word

“A picture is worth a thousand words.” This age-old adage highlights the immense power of visual communication, and nowhere is this more evident than in the realm of signage.

A well-designed, strategically placed sign can convey an entire narrative, evoke emotions, and guide decisions – all in a matter of seconds.

For business owners and marketers, leveraging the storytelling potential of signage isn’t just an option; it’s a necessity in order to make one’s business stand out from all other visual pollution and one’s competitors.

Here’s why signage deserves a prominent place in your branding and marketing mix.

Signage as a Storytelling Medium

Every sign – whether a standalone billboard, a shopfront placard, an illuminated light box, 3D cut outs or an interior directional or toilet sign – has the power to communicate more than just information. Your sign a snapshot that encapsulates your brand’s essence, values, and promises. For instance:

A rustic wooden sign outside a bakery tells a story of handcrafted loaves, traditional recipes, and a cozy ambiance.
A sleek, minimalist neon sign for a tech startup conveys innovation, modernity, and forward-thinking.
A colorful, playful sign for a daycare center speaks of warmth, fun, and child-friendly care.

Through typography, color choices, imagery, and even the materials used, a sign becomes a storyteller, conveying much more in the signs simplicity and look, than words ever could.

Why Signage Works: The Psychology Behind Signs

Humans are inherently visual creatures! Research shows that our brains process images 60,000 times faster than text. This means a passerby is far more likely to notice and remember a visually engaging sign than a block of text or a lengthy advertisement. [Also, in today’s world of instant gratification and shorter and shortening concentration span brought on by online scrolling, marketers may find that it is only the rare exception for viewers to stop and concentrate long enough to read and / or absorb the content of written text.]

Additionally, visuals evoke emotions. A sign’s design elements – colors, fonts, shapes – can trigger subconscious associations, for example:

Red often evokes urgency or excitement, making it perfect for sales signs.
Blue suggests trust and reliability, ideal for banks or healthcare providers.
Rounded fonts feel approachable and friendly, while sharp-edged fonts convey professionalism and authority.

By tapping into these psychological cues, signage can create an immediate, visceral connection with its audience, even though the audience may not consciously be aware of the connection.

The Role of Signage in Branding

For businesses, signage is more than a tool for navigation or announcements; Signage is a cornerstone of brand identity. Here’s how:

First Impressions Matter: Your sign is often the first interaction potential customers have with your brand. A compelling, well-designed, well-maintained sign sets the tone, building trust and piquing interest.
Consistency is Key: Consistent use of brand colors, logos, and fonts across signage reinforces brand recognition. This alignment ensures that whether customers see your storefront, an ad, or your website, they immediately associate it with your business which has immense long term benefits.
Positioning and Differentiation: In a crowded marketplace, unique signage helps you stand out. A quirky, massive or innovative sign can become a landmark, fostering word-of-mouth marketing and enhancing your brand’s memorability. An example could be how often people give directions using KFC or McDonalds as a signed landmark.

Signage in the Marketing Mix

While digital marketing, social media, and content campaigns currently dominate discussions, traditional tools like signage remain indispensable.

It’s vital to integrate signage into your marketing strategy because signage:

Is Cost-Effective Advertising: Unlike digital ads that require ongoing investments, signage is a one-time cost with long-term (up to seven year) benefits. A high-quality sign can attract customers daily, year after year.
Has Local Visibility: For brick-and-mortar businesses, signage is a beacon that draws in foot traffic. Effective signs can turn casual passersby into loyal customers.
Should for part of all Integrated Marketing Campaigns: Signs aren’t standalone elements. When aligned with your online campaigns—e.g., a QR code linking to a promotion – signs can bridge the gap between offline and online marketing.

Best Practices for Effective Signage

To maximize the impact of your signage, consider these guidelines:

Know Your Audience: Design your signage with your target demographic in mind. A chic boutique and a family diner will require vastly different styles if they are to achieve their desired objectives.
Keep Your Signage Simple: Avoid clutter. Focus on one clear message or call-to-action to ensure your sign is easily understood at a glance.
Invest in Quality: From durable materials to professional design, a high-quality sign reflects positively on your brand and should cost your business less over the long run than the cumulative cost of having to get multiple ‘cheaper’ signs.
Location Matters: Place signs where they’re most visible and impactful, considering factors like lighting, traffic flow, target market and viewing angles.
Update Regularly: Keep signage fresh and relevant. Seasonal themes, promotional updates, or even minor tweaks can maintain interest and engagement.

Real-World Success Stories

Many businesses have harnessed the power of signage to remarkable effect:

The Hollywood Sign: Initially an advertisement for a housing development, it’s now an iconic symbol of the entertainment industry.
McDonald’s Golden Arches: Recognizable worldwide, this simple design tells a story of fast, reliable service.
Local Gems: From coffee shops with witty chalkboard signs to stores with eye-catching window displays, creative signage has turned countless small businesses into community favorites.

In a world inundated with information, the ability to tell a compelling story at a glance is invaluable. Signage does just that, blending art and strategy to create lasting impressions. For business owners and marketers, prioritizing signage in branding and marketing isn’t just about aesthetics; it’s about building connections, driving engagement, and ultimately, boosting success.

Invest in signage that tells your story. Because while a picture can say a thousand words, a great sign can say even more.

At SignForce we believe that ultimately, the goal of your business sign is to capture the attention of your target audience and get feet through your door in order to improve sales and your businesses bottom line.

Contact SignForce now for signs and advice on signage on info@signforce.co.za or call +27 (0)11 440 7525 or WhatsApp +27 (0)82 558 6413

For more about SignForce visit http://www.signforce.co.za

Why your Business Sign could be one of your Business’s Greatest Investments – Part 5

Posted on December 21, 2024 by Arnold Pollak

Timeless plaque that conveys a clear, clean and honest message.

Zig Ziglar, one of the west’s most influential motivational speakers and sales trainers of all time, emphasized the importance of clear, impactful communication in building successful businesses.

While Ziglar’s philosophy spanned a wide range of marketing and sales strategies, his teachings can easily be applied to the often-overlooked but critical investment in business signage.

Effective signage is more than just a way to display your business name; great signage is a dynamic marketing tool that embodies Ziglar’s principles of visibility, consistency, honesty and emotional connection.

Visibility: Standing Out in the Crowd

Ziglar consistently emphasized the importance of making a strong first impression.

In today’s competitive market, a well-designed sign serves as a business’s handshake to the public. Just as Ziglar encouraged individuals to present themselves professionally to attract opportunities, businesses must use signage to grab attention and make a lasting impact.

Outdoor signage, for example, functions as a 24/7 advertisement for your brand. High-quality, visually striking signs ensure that potential customers notice your business, even in a crowded marketplace. Ziglar’s belief in being honest and memorable aligns perfectly with this principle – a creative and strategically placed sign ensures your business becomes a landmark in its community.

According to the International Sign Association (ISA)*, 76% of consumers said they had entered a store they had never visited before based on its sign alone. This statistic reinforces Ziglar’s mantra that visibility creates opportunity. An attractive, well-maintained sign can bridge the gap between a business and its potential customers, driving foot traffic and increasing brand awareness.

It is essential that signs are well maintained – yet sometimes a ‘skew’ or otherwise ‘uncomfortable’ sign can also get feet through the door. SignForce had a customer who was a hardware outlet. One day someone drove into their mobile sign damaging one of the legs, so the sigh now stood ‘skew’. Like a picture on a wall, it is the one that is not straight that gets constant attention, and this sign was no different. Sufficient people came into the community store to let the owner know his sign was ‘damaged’ – allowing him the opportunity to sell to these people. This strategy was so successful the owner never allowed SignForce to repair or change the sign.

Consistency: Building Trust Through Branding

Another cornerstone of Ziglar’s marketing philosophy is consistency. He often stated that trust is built through consistent, honest and reliable communication – a principle that applies directly to business signage. Consistency in branding across all marketing channels, including signs, creates a cohesive and professional image.

For instance, your signage should match the design elements of your website, social media profiles, and printed materials. This inter media harmony builds brand recognition and trust, ensuring customers know exactly what to expect when interacting with your business. Ziglar’s teachings highlight that trust is earned through repeated, positive impressions – something a well-executed signage strategy can deliver effortlessly, 24/7.

Emotional Connection: Speaking to the Customer’s Heart

Ziglar’s belief in connecting emotionally with customers underscores the importance of designing signs that resonate with your target audience. He famously said, “People don’t buy for logical reasons. They buy for emotional reasons.” Applying this principle to signage means using colors, fonts, and messaging that evoke the desired emotions in your audience is essential and will give the best results.

For example, a bakery might use warm, inviting colors like pastel pinks and yellows to convey comfort and sweetness, while a tech company might lean on sleek, modern fonts and cool tones to project innovation and reliability. Your sign’s design should tell a story that aligns with your brand values and speaks directly to your customer’s and target market’s aspirations.

Additionally, incorporating compelling calls to action (CTAs) into your signage can further drive engagement. Ziglar’s knack for motivational phrasing is a valuable lesson here. Phrases like “Discover Your Dream Home Here” or “Fresh Coffee, Fresh Start” tap into emotions and encourage action, transforming passersby into customers.

The ROI of Signage: A Smart Investment

Ziglar frequently advocated for viewing marketing as an investment rather than an expense. Business signage is a prime example of this mindset. While difficult to measure accurately, the return on investment (ROI) for effective signage is multifaceted, encompassing increased brand visibility, enhanced customer acquisition, and long-term brand loyalty.

A study by the University of Cincinnati** found that businesses saw an average increase in sales of 10% after upgrading their signage. This tangible ROI underscores the importance of viewing signage as a critical component of your overall marketing strategy, not a secondary consideration.

Moreover, Ziglar’s philosophy highlights the importance of measuring success.

By tracking metrics such as foot traffic, sales increases, and customer feedback post-signage installation, businesses can gauge the effectiveness of their investment and make informed adjustments.

Aligning Ziglar’s Philosophy with Modern Marketing

Zig Ziglar’s timeless principles of visibility, consistency, emotional connection and honesty offer a roadmap for using signage as a key marketing tool. In a world where first impressions matter more than ever, investing in high-quality, strategically designed signage is not just an option but a necessity for businesses looking to thrive.

By embracing Ziglar’s teachings, businesses can transform their signage into a powerful symbol of their brand, attracting customers, building trust, and driving long-term success. Just as Ziglar inspired millions to aim higher and achieve more, your business’s signage can inspire customers to walk through your doors and engage with your brand.

At SignForce we firmly believe that a successful SIGN is a simple sign that appeals to passers by encouraging them to become customers of your business – getting them through the door where your sales team can take over.

At SignForce we have more than a quarter of a century experience in signs and how they relate to marketing. We use this knowledge to give our client’s signs that are cost effective, with our focus being on our client’s return on investment (ROI).

Contact SignForce now on info@signforce.co.za or call +27 (0)11 440 7525 or WhatsApp +27 (0)82 558 6413

For more about SignForce visit http://www.signforce.co.za

* International Sign Association (ISA) – https://signs.org/

** * https://www.uc.edu/news/articles/legacy/enews/2011/10/uc-research-examines-the-economic-value-of-on-premise-signs.html

The survey found that businesses primarily invested in signs to help make their businesses stand out and to help potential customers find their locations. As a result, we found that businesses that pay attention to their signage and invest in the design and placement of signs get better results from their investment.

Why Your Business Sign Could Be Your Greatest Investment – Part 3

Posted on December 21, 2024 by Arnold Pollak

Partially Invisible Sign (Special effects are built into the sign)

Why Your Business Sign Could Be Your Greatest Investment: Insights from Warren Buffett’s Marketing Outlook

When investing in marketing do you immediately consider your business sign to be a major player in your overall strategy?

Warren Buffett, one of the most successful investors in history, has always emphasized the importance of long-term value, strategic investments, and brand recognition. According to Buffett’s principles, a well-designed and strategically placed business sign could, in fact, be one of your most valuable and cost-effective investments.

Warren Buffett’s Marketing Philosophy

Warren Buffett’s approach to investing is rooted in a few fundamental principles:

Long-Term Value: Buffett believes in investing in assets that will generate value over time. Rather than chasing short-term profits, he focuses on making investments that will appreciate and create sustainable returns.
Brand Strength: A key part of Buffett’s strategy is investing in companies with strong, recognizable brands. He famously acquired businesses like Coca-Cola and See’s Candies because they had established brand power. A strong brand is not just about the products – a strong brand is about the visibility, reputation, and loyalty that the brand builds.
Simplicity and Clarity: Buffett values simplicity, which can be seen in his straightforward approach to business. He believes that a strong business needs a clear value proposition that resonates with customers and is easy to understand.
Leveraging Resources: Buffett is also known for leveraging the resources at his disposal – whether that’s his network, his existing businesses, or tangible assets – to generate greater returns.

Using these principles, we can understand how a well-crafted business sign can align perfectly with Buffett’s marketing outlook, turning it into a powerful asset that brings long-term returns.

The Business Sign as a Strategic Asset

1. An Investment in Long-Term Visibility

Warren Buffett believes in the power of long-term investments that continue to provide value. When it comes to a business sign, this principle is incredibly relevant. A business sign is a one-time investment that, when done right, can continue to deliver value for years or even decades.

Just as Buffett invests in companies that continue to generate profits year after year, your business sign works as a perpetual marketing tool. Your business sign doesn’t require constant updates or ongoing costs like paid advertising, but it keeps working for you around the clock, drawing attention to your business and keeping you top of mind for potential customers. While your business signs do not need constant updating, it Is important that your business signs are maintained and possibly replaced or removed after the sign starts to deteriorate (around 3 years in the African sun) in order to maintain your business’s image.

Unlike digital ads or other forms of advertising that only appear for a short time, your sign has ongoing, consistent visibility. Whether it’s day or night, rain or shine, your business sign is always visible to potential customers, making it a long-term asset that can pay dividends for years to come. The more people see your sign, the more they recognize your brand, which leads to greater customer loyalty, a sense of familiarity and trust that often results in repeat business – values that Warren Buffett highly champions in his investment philosophy.

2. Building a Strong Brand Presence

Buffett understands that brand recognition is a powerful force in the marketplace.

A business sign isn’t just about indicating where you are – your business sign is about communicating who you are and what your business represents. A professional, well-designed sign can create an immediate impression of credibility, professionalism, and reliability. In the same way that Buffett has acquired companies with strong brands (like Apple or GEICO), your business sign contributes to building your brand’s reputation.

The power of a strong, recognizable brand is essential for long-term success. A business sign, when aligned with your company’s values, mission, and personality, can amplify your brand presence and make your business memorable to customers. A sign that clearly conveys your message, whether through design, colors, or a catchy slogan, can serve as a powerful tool for establishing your identity in the local community. This not only attracts new customers but also builds loyalty and trust – key elements of Buffett’s long-term value investing strategy.

3. Simplicity and Clarity in Messaging

Warren Buffett is known for his appreciation of simplicity.

Buffett has often said that he prefers businesses with clear, understandable value propositions. Similarly, your business sign should reflect that simplicity and clarity. A well-crafted sign does not overwhelm or confuse potential customers but instead communicates a straightforward message about your business.

A simple, clean designed sign with clear text can make it easier for customers to understand who you are and what you offer. By reducing clutter and focusing on the essentials, your sign becomes more effective in conveying your brand message. Buffett’s philosophy teaches us that simplicity works, and when your sign is clear and direct, it resonates with customers, builds trust, and makes it easier for them to decide to visit your business.

4. Leveraging Local Visibility for Maximum Impact

Buffett’s investment strategy is all about leveraging resources to maximize returns, and this can be applied to the local visibility your business sign provides. By strategically placing your sign in a high-traffic area, you are leveraging the foot and vehicle traffic and attention of local passersby. For businesses, this means creating a constant stream of potential customers who are in close proximity and more likely to stop in or take action.

A physical sign serves as a cost-effective form of local advertising, drawing attention from people who might never have heard of your business otherwise. Similar to how Buffett might leverage a network or a strong brand to capture attention in a crowded market, your business sign gives you a chance to stand out in your local community, driving more foot traffic to your store or office.

5. An Opportunity for Differentiation

In line with Buffett’s principle of investing in companies that stand out from the competition, a business sign is a powerful tool for differentiation.

A distinctive, well-designed and implemented sign can set your business apart from others in your area, especially in a crowded market. By creating a sign that is unique, memorable, and aligned with your brand, you can differentiate your business from competitors and make a lasting impression on potential customers.

Whether through an innovative design, a clever tagline, or a bold visual identity, your sign can serve as a reflection of what makes your business special. This differentiation builds brand loyalty and attracts customers who align with your values – two key aspects of long-term business success that Warren Buffett consistently looks for in his investments.

Warren Buffett’s marketing outlook highlights the importance of long-term value, brand strength, simplicity, and leveraging resources effectively. When applied to your business sign, these principles reveal just how valuable a simple sign can be. Your simple business sign is more than just a tool for directing customers to your door – your business sign is a strategic investment that can enhance visibility, reinforce brand identity, and provide a consistent marketing presence for years to come.

By following Buffett’s approach to investing in assets that deliver ongoing returns, a well-crafted business sign can become one of your most cost-effective and valuable marketing tools.

Just like the companies Buffett invests in, your business sign has the potential to build brand recognition, foster customer loyalty, and generate long-term success. Your business sign is a small investment that can lead to big returns, and when done correctly, it could very well be your business’s greatest asset.

At SignForce we believe that any GREAT SIGN is a sign that stands out in stark contrast to it’s surroundings with the ‘message’ of the sign speaking volumes about your business with minimal words and achieves the signs job of getting eyeballs that result in feet through your door.

At SignForce we have decades of experience in signs and how they relate to marketing, knowledge which we are happy to use to ensure our client’s signs are cost effective, giving a maximum possible return on investment (ROI).

Like Buffett, SignForce’s philosophy is an extension of the KISS principle. We operate on the basis that generally, the simpler the sign and the greater the contrast, the more a sign makes the viewer uncomfortable, the more likely the sign is to be noticed, and thus the more likely the sign will have a positive ROI.

Contact SignForce now on info@signforce.co.za or call +27 (0)11 440 7525 or WhatsApp +27 (0)82 558 6413

For more about SignForce visit http://www.signforce.co.za

Why Your Business Sign Could Be Your Business’s Greatest Investment – Part 2

Posted on December 21, 2024 by Arnold Pollak

Long life cut out coat of arms

: Insights from Michael Levine’s Marketing Outlook

When it comes to marketing your business in 2024, many entrepreneurs focus heavily on digital campaigns, social media ads, or email marketing, overlooking a crucial, yet often overlooked, element – your business sign. Michael Levine, a renowned marketing expert and consultant (https://www.michaellevinwrites.com/), has long emphasized the power of strategic messaging, brand identity, and leveraging all available assets to build a stronger business. According to Levine’s principles, your business sign can be one of the most effective marketing investments you’ll ever make.

Michael Levine’s Marketing Philosophy

Michael Levine is a celebrated branding and marketing strategist, best known for his work with high-profile clients like Nike, Coca-Cola, and McDonald’s. His marketing philosophy revolves around the idea of maximizing visibility and creating lasting impressions through meaningful connections between a business and its audience. Levine believes that every touchpoint, whether digital or physical, contributes to a brand’s story. His approach also focuses on the power of consistent, simple messaging that resonates with consumers.

Through his years of experience, Levine stresses the importance of simplicity, clarity, and differentiation. He advocates for building a strong brand presence across all aspects of a business and leveraging real-world interactions as opportunities to engage and convert potential customers. Let’s explore how these principles, when applied to the humble business sign, can make it your greatest investment.

Why Your Business Sign is a Smart Investment

1. Immediate Brand Visibility

According to Levine’s marketing approach, visibility is the cornerstone of success. Your business sign is often the first impression potential customers have of your brand. It’s your opportunity to introduce your business to the world, and it needs to be impactful. A well-designed sign makes you visible 24/7, and unlike digital ads, it doesn’t disappear after a few seconds.

Levine often speaks about the importance of creating impressions that stick. Your sign should not only capture attention but also deliver a clear, memorable message about who you are and what you do. Whether it’s a catchy slogan, a striking logo, or a design that resonates with your audience, your business sign can work around the clock to establish your presence in the local community.

Any sign that can combine your business message while eliciting a – preferably positive – emotion from the viewer, is bound to be a hit, and remembered.

2. Cost-Effective and Long-Term

One of the strongest arguments for investing in a business sign is its cost-effectiveness over time. Traditional marketing channels, such as TV, radio, and online ads, require ongoing investment. In contrast, a high-quality business sign is a one-time investment that can continue to deliver value for years.

Levine frequently advocates for businesses to maximize their resources. A business sign is an asset that doesn’t require constant updating or maintenance, yet it continues to pay dividends by drawing in foot traffic, increasing awareness, and reinforcing your brand’s identity. In many cases, businesses can experience a significant return on investment simply by placing a sign in a high-traffic area.

3. Localized Marketing for Targeted Reach

A well-placed business sign allows you to target local customers – a strategy that Levine believes is crucial for many businesses. If you operate in a brick-and-mortar location, the people who are likely to pass by your business are your most qualified leads. They are within your geographic reach and already in the vicinity, making them more likely to convert into customers.

Levine stresses the power of direct, targeted marketing. Rather than relying on broad, mass-market campaigns, your sign can effectively attract people who are in close proximity to your business and, if they are in the market for what you offer, have a higher chance of being interested in what you offer. The strategic placement of your sign can help capture the attention of local residents, tourists, or passersby who might not have discovered you otherwise.

4. A Tool for Reinforcing Your Brand Identity

Your business sign isn’t just a way to announce your location – your business sign is an integral part of your brand identity. Michael Levine emphasizes the importance of consistency and clarity in messaging across all touchpoints. Your sign should not only reflect the services or products you provide but also communicate your company’s values, personality, and positioning in the market.

A well-crafted sign that aligns with your brand’s identity – whether it’s through color choices, typography, and / or overall design – becomes a symbol of trust and recognition. As people see your sign regularly, it reinforces your presence in their minds and builds long-term brand recognition. Over time, this consistency leads to a stronger connection with your customers, a key factor in building loyalty and driving repeat business. Multiple views of the same sign can also create an impression in people’s minds of familiarity and as such people often make up their own stories, sometimes believing that your business may be larger than it actually is, with more locations, as people ‘see’ the signage often.

5. Differentiation and Standing Out

In today’s competitive marketplace, it’s crucial to stand out from the crowd. According to Michael Levine, the ability to differentiate your brand is what sets successful businesses apart from the rest. Your business sign is an opportunity to do just that.

Your creatively designed sign can capture attention and help your business distinguish itself from competitors. Whether through an unexpected design, a clever play on words, or an eye-catching visual, your sign can become a statement that highlights what makes you unique.

Levine advocates for businesses to take risks with their marketing to stand out. In a world where consumers are bombarded with marketing messages every day, being bold with your signage can be the key to making a lasting impression. A distinctive sign that reflects your brand’s unique personality can make your business memorable and increase the likelihood that customers will choose you over others.

6. Social Proof and Trust Building

Finally, your well-placed business sign signals that you are a legitimate business. It serves as a form of social proof in the real world. Levine frequently points to the role of social proof in building trust – whether through testimonials, customer reviews, or the visual presence of a professional sign.

People are more likely to trust a business that takes its brand seriously enough to invest in a visible, professional sign. This trust factor can drive more traffic through your doors and ultimately increase sales.

When you adopt Michael Levine’s marketing outlook, you begin to see how every element of your business, no matter how small, can become a powerful tool for success. Your business sign, often regarded as a grudge expense or a simple necessity, is much more than that. According to Levine’s principles of visibility, brand consistency, and differentiation, your sign is an investment that pays off by driving awareness, increasing trust, and helping you stand out in a crowded marketplace.

Incorporating Levine’s strategies into your marketing plan can reveal that your business sign might just be one of your greatest, yet most cost-effective, investments. By leveraging this physical marketing tool, you create lasting impressions that continue to pay off for years to come.

At SignForce we believe that a GREAT SIGN is a sign that stands out in stark contrast to it’s surroundings with the ‘message’ of the sign speaking volumes about your business with minimal words.

At SignForce we have extensive experience in signs and how they relate to marketing, knowledge which we use to give our client’s idea’s that are cost effective, give a return on investment (ROI) and STAND OUT, sometimes only because of their simplicity.

SignForce’s philosophy is an extension of the KISS principle. We operate on the basis that generally, the simpler the sign and the greater the contrast, the more a sign makes the viewer uncomfortable, the more likely the sign is to be noticed, and thus the more likely the sign will have a positive ROI.

Contact SignForce now on info@signforce.co.za or call +27 (0)11 440 7525 or WhatsApp +27 (0)82 558 6413

For more about SignForce visit http://www.signforce.co.za

Why Your Business Sign Could Be Your Greatest Investment

Posted on December 20, 2024 by Arnold Pollak

SignForce blog logo

Why Your Business Sign Could Be Your Greatest Investment: The Marketing Wisdom of Jay L. Abraham (https://www.abraham.com/about/)

When you think about MARKETING your business, what is the first thing that comes to mind? Door to door, online, magazine, television, above line, below line, expensive, professional?

When you think about marketing, your business sign might not immediately come to mind as a key player in your strategy. Yet, Jay L. Abraham, one of the world’s foremost marketing experts, argues that businesses often overlook small, seemingly inconspicuous elements that can yield huge returns. The idea of a business sign being your greatest investment is rooted in Abraham’s principles of maximizing every available resource to its fullest potential.

Jay L. Abraham’s Marketing Outlook

Jay L. Abraham is renowned for his ability to identify overlooked opportunities for business growth. His marketing philosophy revolves around several key principles:

Maximization of Resources: Abraham often speaks about leveraging all available assets to their fullest potential, whether that’s your team, your website, or even the humble business sign. For Abraham, the goal is to extract as much value as possible from every part of your business, no matter how small it may seem.
The Power of Visibility: In a crowded marketplace, visibility is a powerful currency. Abraham emphasizes that getting noticed is the first step toward attracting customers, and the visibility your business sign provides can play a critical role in your business being visible. This applies equally to online and brick-and-mortar businesses.
Branding and Consistency: A business sign isn’t just a name on a board; it’s part of your branding*. Abraham stresses the importance of consistent branding across all touchpoints**. Your sign should clearly communicate your message, setting the tone for everything customers will experience with your business.

Your Business Sign as a Marketing Asset

To understand why your business sign can be your business’s greatest investment, it’s important to consider how signage fits into Abraham’s marketing outlook. Here are some key ways a clean, well-designed, professional business sign can elevate your business:

1. First Impressions Matter

A business sign is often the first point of contact potential customers have with your business. Just as a professional website or a friendly salesperson can make a lasting first impression, your sign plays a pivotal role in attracting attention. It’s your storefront’s face and can and does convey messages about your business’ personality, reliability, professionalism and values. Jay Abraham advocates for businesses to put their best foot forward at all times. A sharp, eye-catching sign can immediately make your business stand out in a crowded marketplace, giving you the edge over competitors.

2. Unobtrusive, 24/7 Marketing

Unlike other forms of marketing like advertisements or social media campaigns that require ongoing costs and effort, a well designed business sign works tirelessly for you around the clock. It doesn’t need to be constantly updated or refreshed, and it doesn’t disappear after a few seconds or clicks. Your sign is like an employee that never sleeps – it consistently drives awareness and foot traffic to your business, making it a long-term, low-maintenance investment. Abraham’s philosophy of leveraging existing resources aligns perfectly with this idea. A well-placed, high-quality sign can deliver consistent returns with minimal effort and generally lasts many years with a single one time payment.

In ROI terms, thee potential low cost per view of your sign is almost infinite, even though it may be exceptionally difficult to measure.

On this note, while most businesses evaluate their sign as how it will be SEEN and PERCEIVED by customers and prospective customers, the value of a good sign on staff MORALE and ASSOCIATION is almost impossible to overstate. Like a person may IDENTIFY and bond with and over their favorite sports team, a similar sense of camaraderie can exist among staff when your business sign conveys the correct message.

3. Cost-Effectiveness

When considering investments in marketing, the cost-effectiveness of a business sign stands out. Traditional advertising methods – such as television commercials, print ads, or digital ads – can be expensive and often require continuous, always rising (especially in a competitive market where cost per click and cost per view are constantly rising due to demand to be in FIRST place), expenditure to maintain front of mind positioning and visibility. In contrast, a well designed and executed business sign provides a one-time investment that can deliver dividends for years to come.

The cost effectiveness of signage ties back to Abraham’s principle of making your resources work harder for you. The sign itself becomes an efficient, long-lasting marketing tool, providing constant value without the ongoing costs.

4. Targeted Marketing and Local Reach

One of the most powerful advantages of a business sign is its ability to target a local audience. Unlike broad digital campaigns that often cast a wide net, your sign draws attention from individuals in your immediate vicinity – those most likely to become paying customers. Jay Abraham often speaks about the power of “direct response marketing,” which is about reaching the people who are most likely to respond to your offer. Your sign targets foot traffic, drivers, and passersby who are within a certain radius of your location, making it an invaluable tool for local businesses.

5. Reinforcing Brand Identity

A business sign does more than just tell people where you are – a business sign communicates what you as a business stand for. Jay Abraham emphasizes the importance of consistent branding across every aspect of your business.

This means your sign should reflect your company’s values, personality, and positioning in the market. Whether you’re a sleek, modern company or a rustic, family friendly local business, your sign should align with the message you want to communicate. Over time, this consistency builds brand recognition and trust, essential ingredients for business success. Because your sign should align with the message you want to communicate it is recommended to use a sign designer who has an understanding of branding, marketing and sign building when designing your business sign, and a sign company that can implement said design to build your signs.

6. Opportunity for Innovation

Jay Abraham encourages businesses to constantly innovate and find creative solutions to increase their market share. Your business sign can be one such source of innovation. Beyond just being functional, a creatively designed, interactive, or unique sign can become a conversation starter, a photo opportunity, or in the modern world, even something that goes viral online. Whether it’s a clever slogan or a design that stands out from the crowd, an innovative sign can differentiate your business from your competitors.

When viewed through the lens of Jay L. Abraham’s marketing outlook, your business sign is far more than a grudge purchase or a practical necessity – your business sign is a strategic asset that can drive growth and brand recognition for your business.

A well-designed sign attracts attention, reinforces your brand, provides consistent 24/7 marketing, and does all of this with a low, one-time investment. By following Abraham’s principles of maximizing available resources and leveraging existing assets, a business sign can become one of your most valuable marketing tools.

Investing in a high-quality, effective, fit for purpose sign is a small step that can yield significant, long term returns - showing how even the most basic elements of your business can work harder for you, just as Abraham would advise.

When you are looking to help make your business stand out and achieve the investment value of your business sign as advised by Abraham, contact SignForce as our years of experience, our understanding of Abraham’s philosophy and our decades of experience in design, manufacture and installation of signs makes us a preferred supplier for a number of clients – from massive to one man shows.

Contact SignForce now on info@signforce.co.za or call +27 (0)11 440 7525 or WhatsApp +27 (0)82 558 6413

For a deeper understanding of SignForce visit http://www.signforce.co.za

Oxford and Dictionary.com definitions:

* branding – noun

1.1. the action of marking with a branding iron. “regulations concerning the branding, movement, and sale of cattle”
2. the promotion of a particular product or company by means of advertising and distinctive design. “the process of branding should be considered in global terms”
** touchpoints – noun, plural noun: touchpoints
1. a point of contact or interaction, especially between a business and its customers or consumers. “every touchpoint must reflect, reinforce, and reiterate your core brand strategy”
1.2. a point of reference. “one of the cultural touchpoints for the late 1990s”

Is it ever acceptable to charge MORE than QUOTED?

Posted on December 14, 2024 by Arnold Pollak

Individual Cut Out Signage

When is it acceptable to charge a customer more than originally quoted?

At SignForce we believe in the power of one’s word – and if that word is in the form of a quote, then we believe in the value and power of that quote.

Recently this has come into focus on two counts. One was a quote issued by SignForce and the other is a quote SignForce received.

In the instance of the quote SignForce received and accepted, once the work was completed the final cost came out at approximately 5% higher than originally quoted. We found this upsetting as it was not originally mentioned and as such when the driver went to receive the goods he had insufficient funds which resulted in additional bank charges, stress and time in order to get the goods that were already quoted and budgeted for. Needless to say it is unlikely that SignForce will readily use that supplier again in the future. In other words for a few hundred rand on a transaction the supplier will lose out on future business – a very short term view. In actual fact the three transactions SignForce have already had since this incident have already gone to our new preferred supplier.

The second count is work SignForce have concluded for a client. This is an interesting one as SignForce’s client is not that the payee. The payee is a separate entity and committed to a very specific value. The work was produced and only after production was completed did it come to management’s attention that one MASSIVE factor in the job was not included in the costing. Ah heck. That is one serious loss for SignForce. We cannot blame the client or expect them to pay more for our error. In addition to our error the client (not the payee) made serious changes to the work that was quoted on. Changes that come to almost 15.6% of the original accepted amount the payee agreed to pay. SignForce’s client has agreed to TRY raise additional funds to cover the difference. They did ask SignForce to approach the payee but this offer was declined as the relationship with the payee is between the payee and the client. SignForce has o relationship at all with the payee. Now SignForce are wondering how we approach our client to recover the additional costs incurred as a result of the client’s changes, as at SignForce we believe in LONG TERM relationships, which we believe hold far GREATER VALUE for SignForce and continued business.

As is standard in the modern world of AI, this writer asked AI under what circumstances it would be acceptable to increase the amount billed. Below is the gist of ChatGPT’s answer.

Charging a customer more than initially quoted is almost always a sensitive issue, and it is crucial for businesses to handle such situations with care, especially if they believe in the long term value of a client. In general, the principle of transparency and fairness should guide all transactions. However, there are certain circumstances where charging more than originally quoted can be acceptable or even necessary. Below, we will explore several situations when it is reasonable to charge a customer more than the original quote and how to manage these instances professionally.

Scope of Work Changes

One of the most common reasons businesses charge more than originally quoted is due to changes in the scope of work. (This is what happened with SignForce in the sample above). Often, when customers request additional services, modifications, or features after a quote has been given, the initial estimate becomes outdated. For instance, in industries such as signage, construction, design, or software development, customers may initially request a basic service but later decide to add more complex requirements, which were not part of the original discussion.

When this occurs, it is reasonable to adjust the price to reflect the increased workload, time, and / or resources needed. It is always advisable that a revised, written agreement or updated quote should be issued to the customer, specifying the new costs associated with the added work. It is also advisable that this new quote be accepted in writing. This is because it is way too easy for unscrupulous (dishonest) clients to make promises that will never be fulfilled unless the promise is reduced to writing. A documented case in point is when a large hotel was built in one of the homelands adjacent to South Africa in 1980. Many contractors had to close down after they were pushed by the client to finish the work sooner than originally agreed. The client promised that the additional staff and other costs would be compensated for. Unfortunately most of the contractors took the client at face value and when the hotel opened months earlier than planned and the contractors went to receive the promised additional funds, only those that had reduced the promises to writing (less than 2% of the contractors) actually got paid for all the additional costs. The large majority of the rest filed for bankruptcy.

Clear, written communication is critical here – ensure that the customer understands why the changes are affecting the price, reduce EVERYTHING TO WRITING and provide an updated timeline or budget if applicable.

Unforeseen (and unforeseeable) Issues or Costs

Sometimes, businesses may encounter unforeseen issues that were not apparent at the time the original quote was provided. These might include discovering hidden problems during a repair job, unexpected complications in a project, or an unforeseen spike in material costs. For example, a plumber might quote a price based on a basic repair but later discover that the pipes are severely corroded, requiring more extensive work and additional parts.

In such cases, it is generally acceptable to charge more than quoted, provided that the unforeseen costs are substantial and directly related to the scope of work. It is important to inform the customer as soon as possible about these issues and provide a revised quote. Transparency is key: clearly explain why the unforeseen costs arose and how they will impact the final price.

To avoid misunderstandings, businesses should include a clause in their contracts or agreements that allows for changes in price due to unforeseen circumstances. This gives both the company and the customer a clear understanding that additional costs may arise under certain conditions.

Errors in the Original Quote

Mistakes happen. A business may inadvertently provide an incorrect quote due to human error, miscommunication, or a miscalculation. For instance, a quote for a car repair might have been based on incorrect labor hours or missing parts. When such errors are identified, it is generally acceptable to inform the customer and request an adjustment to the price.

However, charging more due to an error should be handled with care and professionalism. Many customers will expect the business to honor the original quote if the error was minor or if the work had already commenced based on the original price. Businesses should evaluate the situation carefully and, where possible, honor the quoted price. If the error is substantial, the business should communicate promptly with the customer, explain the mistake, and negotiate a revised price.

Best practice is to ensure all quotes are double-checked (ideally by an independent, other, person in the business) before they are presented to customers, and businesses should also include a disclaimer that quotes are estimates and may be subject to change based on certain factors.

In SignForce’s almost 26 years under the current management there have only been a handful of times when pricing was not honored. The worst was when SignForce quoted to remove four MASSIVE (18 x 6 meter) steel signs from the top of a 36 story building. After numerous site visits with the specialist team and having made a number of assumptions based on the information SignForce had and what we could see, the quote was accepted by SignForce’s client. On day two of the job the rigging team advised that they had miscalculated as they would never have expected that the steel on the side of the building would be what it was, as thick and thus as heavy as it was. It meant that the quoted estimate would be more than doubled as the rope could only take 80kg per lift and the assumed structure meant the team could remove 6 meters at a time while the reality was the steel had to be cut into 80 mm lengths. This took more gas, more time and a huge number of additional lifts. SignForce immediately notified our client. SignForce advised the client of the issue and also of our decision to forego any charges to our client while we still managed the operation. The original expected duration was four weeks. The final duration was more than 12 weeks.

Changes in Material Costs or External Factors

Certain industries, such as signage (especially in South Africa due to imports and currency fluctuations), construction, chemicals and manufacturing may face fluctuations in material costs or other external factors (e.g., fuel prices, regulatory fees, exchange rates and others.) that are outside the company’s control. In such cases, businesses may need to pass on these price increases to customers.

For example, if a building contractor provides a quote for a home renovation project, but during the project, the cost of key materials such as lumber or steel increases significantly, the contractor may need to adjust the final bill accordingly. Similarly, if the project takes longer than expected, it may incur additional costs for labor, especially if there are delays that the customer caused.

It is for this reason that SignForce’s terms and conditions include a clause that allows for price adjustments based on changes in material costs, duration, standing time or other relevant factors. This ensures that the customer is aware of potential price fluctuations and also gives the company legal backing to adjust costs when necessary.

Additional Requests or Add-Ons

Another reason for charging more than quoted is when customers make additional requests or opt for add-ons after the initial quote is provided. In service-based industries, this might involve customers requesting expedited service (see hotel example above), premium options, or special features that were not included in the original quote.

For instance, if a customer has requested a basic graphic design package but later decides to add extra revisions, animations, or custom graphics, it is at the suppliers discretion if they choose to not charge more although it Is perfectly acceptable to charge extra for these additional services. In the signage industry extra services such as upgraded materials, additional signs, changes in size of signs, more complex electronics, raising the height that the sign needs to be installed, optional safety procedures all often lead to increased charges.

These situations are best handled when clear communication about the pricing structure is established upfront. SignForce often offer customers the ability to customize services within a price range, offering tiered pricing for different materials, different manufacturing processes and different levels of service can help prevent confusion or dissatisfaction.

Late Payment Fees or Additional Charges

Some businesses may have terms and conditions in place that allow for the imposition of late payment fees or additional charges if the customer does not adhere to the agreed-upon payment schedule. For example, if a client delays payment for a project or product delivery beyond the agreed terms, it may be reasonable to charge a late fee, provided the terms were clearly stated upfront. This is very common for private construction work where penalties can be charged for every day the main contractor is behind schedule. Unfortunately in the current environment in South Africa with corruption being rife these penalties do not seem to, or are not enforced, when dealing with Government contracts which means that the government contracts seem to run over time and over cost with absolutely no penalty to the contractors – hence no incentive for the contractors to complete the work on time or on budget..

It is always advisable for businesses to be diligent about enforcing payment deadlines and ensuring the customer is aware of the penalties for late payments. These fees should be communicated clearly at the start of the relationship, and a well-defined payment schedule should always be part of the contract.

While charging a customer more than quoted can be acceptable, this is only true under certain conditions. It is vital to ensure that any price changes are clearly communicated to the customer, justified by the circumstances, and documented appropriately. Unforeseen issues, changes in the scope of work, errors in the original quote, price fluctuations in materials, or additional requests are all valid reasons for increasing a quoted price. However, businesses should always prioritize transparency, fairness, and customer satisfaction to maintain trust and ensure long-term business relationships.

When you are in the market for signs and you want a signage supplier that has a record of sticking to it’s quoted price in more than 99.9% of it’s dealings, SignForce is the signage supplier for you.

Contact SignForce now on +27 (0)11 440 7525 or email info@signforce.co.za or WhatsApp +27 (0)82 558 6413

Find out more about SignForce at http://www.signforce.co.za

Lifetime Value of a Client

Posted on December 8, 2024 by Arnold Pollak

3D illuminated Sign

Does lifetime value of a client apply in the new world – this day and age

Focusing on the Lifetime Value (LTV) of a client is a common strategy in business that measures the total revenue a customer is expected to generate throughout the lifetime of their relationship with a business or supplier.

By understanding LTV, a business can make more better informed decisions about customer acquisition, retention strategies to keep your clients, better planning and overall resource allocation. However, while there are significant benefits to this approach, there are also some potential dangers.

Benefits:

Improved Customer Retention: Focusing on Lifetime Value (LTV) encourages companies to prioritize long-term relationships with customers rather than seeking short-term gains. By understanding the value of each customer over time, businesses can invest in strategies that enhance satisfaction, loyalty, and repeat business, leading to better retention rates. While short term profits are essential for survival, if a business is ONLY focused on short term profits they may alienate potential long term prospects and clients resulting in higher marketing costs to achieve the same turnover.
Optimized Marketing Spend: LTV allows businesses to calculate the cost-effectiveness of their marketing campaigns. By analyzing the revenue a customer generates over their lifetime, companies can determine how much they should invest in acquiring new clients. This helps optimize marketing budgets and ensure that spending is in line with the long-term value of each customer.
Better Product and Service Development: By tracking the behaviors and needs of long-term customers, businesses can better understand what works and what doesn’t work for both the business and the long term client. This insight can guide product and service improvements, making offerings more attractive to existing and potential customers thus increasing the business’s turnover and likelihood of surviving and thriving into the future.
Stronger Financial Forecasting: LTV can help businesses create a clearer picture of future revenue streams. Knowing the lifetime value of customers helps create more accurate financial forecasts, reducing uncertainty and aiding in decision-making.
Potential for higher spend per purchase: When a client is a long term client they will, over time, trust your judgment and input more and more, which is a good path for them to also spend more money per purchase.
Improved performance: Focusing on lifetime value of a client pushes a business to see the client as more than a single meal ticket, meaning that the business is more likely to focus on providing the best possible service to the client, not at the cost of overall profit but possibly at the cost of immediate profit in exchange for greater long term profits.

Dangers:

Overlooking Short-Term Goals: While lifetime value is a valuable long-term metric, focusing too heavily on it can cause businesses to neglect short-term goals, such as quarterly sales targets or immediate cash flow needs. This imbalance may result in missed opportunities or slower growth. It is also essential that the business’s short term goals are in line with t he long term goals and lifetime value of the customer. If the short term goals are heading north while the long term goal is to go west, no matter how well the short term goals are achieved, the long term goal will never be met.
Inaccurate Predictions: Predicting LTV accurately can be challenging, as it relies on assumptions about customer behavior, market conditions, and external factors that one seldom has ANY information on. If these assumptions are wrong, it can lead to misguided business decisions, such as overinvesting in customer acquisition or retention efforts that do not yield the expected results. This is one reason, in the opinion of this writer, a business should never intentionally make a loss on any job.
Customer Segmentation Bias: Emphasizing LTV might lead companies to focus on high-value customers at the expense of smaller or emerging segments. This could create a lack of diversity in the customer base, making the business vulnerable to changes in customer preferences or market conditions. One should also remember that if you only have one client, you do not have a business, that ‘client’ has a slave as they hold all the cards. It is also worth remembering that almost ALL business is relationship dependent [This is especially relevant in the signage industry.] and if the party or team your business has the relationship with moves on, there is always the risk that all their business will go elsewhere.
Neglecting Customer Experience: While businesses may focus on extracting the most value from existing customers, it is essential to ensure this approach keeps overall customer experience front of mind. In the long run, prioritizing LTV over genuine satisfaction can lead to customer churn if clients feel they are being treated as short term sources of revenue rather than valued individuals.

In conclusion, while focusing on LTV can offer valuable insights for customer retention, financial planning, and marketing strategies, businesses must balance it with attention to short-term goals and a holistic view of customer experience to avoid the associated risks.

At SignForce we believe in forming relationships, preferably LONG TERM relationships with our clients. We want to be and be seen as part of your marketing team.

When you are in the market to make your brand visible, using signage and other medium’s, SignForce is available to assist.

Contact SignForce now on info@signforce.co.za or call +27 (0)11 440 7525 or WhatsApp +27 (0)82 558 6413

Find out more about SignForce at http://www.signforce.co.za

Where is the value of signage

Posted on November 17, 2024 by Arnold Pollak

Where is the value

Why is Signage so valuable?

What is it about signage that South Africa is expected to spend more than R5,500,000,000 on signage in 2024

It could be that signs make a business visible, and without visibility the business may get zero clients and thus not be in business.

But maybe it is something else.

Maybe signage is so valuable because it is a sign. It is not a person. It is not going to get tired (although it may look tired when not maintained), it is not going to continue to ask for an increase, It is not going to discriminate against a viewer.

The sign, once erected (whether paid for or not) will continue to work day and night, in sun, snow and rain, to show anyone who sees it that this is your business and this is what you do.

While some signage is used to reinforce front of mind memory for well known, established brands, think #NIKE, #REDBULL, #MERCEDES, #BMW and the like. These brands want you to remember them all the time, and as such their advertising does not state what they do, because they expect you already know, and will remember what they do when you see their name.

There are however MANY businesses, new and old, that are not as well known, that need to let you, the viewer KNOW what they do because you may not have heard of them, or you may have not see all the products they offer, or you may have been distracted and have forgotten them – either because you used the services of another supplier in the interim or their service or product was so good or so normal that they did not stand out as exceptional and would thus be remembered or, when you do think of them, you see them as being in a specific league, and thus think that they either do not provide the service or product you are looking for.

Any or all of these reasons is why signage that lets prospective clients know what you do is such an incredible investment.

If you are in the market for signs – large or small or tiny – SignForce is available to assist.

Contact SignForce now on info@signforce.co.za or call +27 (0)11 440 7525 or WhatsApp +27 (0) 82 558 6413

Find out more about SignForce at http://www.signforce.co.za