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CHAPTER

7

Marketing

As you now know, just about everything must move, at least part of the way to its destination, by truck. With this in mind, it is safe to say that almost every company is a potential customer for you. But if you take that approach, you’ll have a tough time coming up with an effective, not to mention affordable, marketing plan.

What’s wrong with just going after anybody in the world who might ever have to ship something by truck for any reason? Because that market segment includes literally millions of companies and individuals, and it’s impossible for any small business to communicate effectively with a market that size. Can you afford to send even one piece of direct mail to one million prospective customers? Of course not. But when you narrow that market down to, for example, 500 or 1,000 potential customers located in a particular area, conducting a successful direct-mail campaign is much more affordable and manageable. In today’s business world, direct mail, however, is a more antiquated form of marketing that’s been replaced by online-based tools, resources, and social networking services.

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One of the most effective ways to build your customer list is word-of-mouth. Provide excellent service to your shippers and you will increase the likelihood that they’ll spread the word about your business to other shippers.

Keep these questions in mind as you form your marketing plan:

• Who are your potential customers?

• How many of them are there?

• Where are they located?

• How do they currently transport freight?

• Can you offer them anything they are not getting now?

• How can you persuade them to do business with you?

• Exactly what services do you offer?

• How do you compare with your competitors?

• What kind of image do you want to project?

The goal of your marketing plan should be to convey your existence and the quality of your service to prospective customers, ideally using a multifaceted approach that involves use of the internet, as well as targeted email.

Market Research

Market research provides businesses with data that allows them to identify and reach particular market segments and to solve or avoid marketing problems. A thorough market survey forms the foundation of any successful business. It is impossible to develop marketing strategies or an effective product line without market research.

The goal of market research is to identify your market, find out where it is, and develop a strategy to communicate with prospective customers in a way that will convince them to use you.

Begin by focusing on two broad areas: the people and firms you work with directly, such as carriers and shippers, and the general business trends that affect the industry as a whole. With this information, you will be able to move on to more specific research that will help you determine your target market, where to locate your business, what services to offer, and your geographic scope of operations.

Choosing a Niche

There are many valid reasons for choosing a well-defined market niche. By targeting a specific market segment, you can tailor your service package and marketing efforts to meet that segment’s needs. You’ll also develop a reputation for expertise that attracts new customers. For small business operators, marketing to a niche audience is one of the most useful features of the internet, as well as social networking services, like Facebook, Twitter, and LinkedIn.

One of the best parts of being a freight broker is that you build long-term relationships with most of your customers. Motor carrier freight service is rarely a one-time purchase; once a customer comes on board with you, you will likely get plenty of repeat business. However, most shippers use multiple carriers and brokers, which means you must take the time to find out as much as you can about shippers’s volumes and needs and provide consistent service so they are comfortable coming back to you, and you can increase your share of their business.

“We become an extension of our customers’ management style and/or traffic program,” said Smyrna, Tennessee-based freight broker Cathy Davis. “We have a much larger carrier base than they do and usually have better negotiation skills, especially if it’s a small shipper. We do the calling for them, which frees them to work on other projects. We know how to qualify carriers and have access to more information [about them] than the shipper does.”

You can design your niche based on geography (either location of shippers or destination of freight), types of cargo (agricultural, perishable, oversized, bulk commodities, etc.), size of loads, specific industries, or some other special shipping need. To choose a niche, first consider what types of shipments and/or shippers you enjoy working with. Then conduct market research to determine if there is a sufficient demand for the services you want to provide. If there is, move ahead with your marketing plan. If there isn’t, consider how you might adjust your niche to one that generates adequate revenue.

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Set up an interactive website where customers can request rate quotes, and customers and carriers can contact you for other information via forms or email. In addition, always make sure your phone number is prominently displayed on every page of your website and within the profiles of your social media accounts. You want prospective customers to be able to find and contact you as easily as possible. Don’t make them look for your phone number or email address when they visit your website or company Facebook page, for example.

Communicating with Your Customers

Once you’ve selected a niche, you’ll need to consider how to let the shippers in that niche know about you. This is the essence of marketing. Don’t be discouraged if your marketing efforts don’t produce an immediate response. This is a relationship business, and it takes time to build your reputation and the rapport you need with shippers. Also, remember that your marketing efforts support your primary sales efforts but rarely generate a sale on their own. Even so, they deserve your attention.

All your promotional and advertising materials (including your website and social media presence) must clearly indicate your status as a broker, must be under the name by which you are registered, and may not directly or indirectly represent your operation as a carrier. With that legal caveat out of the way, be sure all these items are professional and letter-perfect. Consistency is important; your business card, envelopes, letterhead, labels, invoices, promotional items, email signatures, website, social media accounts, blog, etc., should all have the same logo, use the same typeface, and use the same color scheme.

Small but useful giveaway items—such as pens, mugs, scratch pads, and baseball caps—are very effective in supporting your marketing efforts. Customers aren’t likely to choose a broker based on these items, but it’s important to keep your name in front of them in a positive way. Be sure the promotional items clearly and consistently identify your company and tell how to contact you.

Both online and offline directory listings are important so shippers can find you. Check with your local phone company to find out its advertising deadline and directory distribution date, and, if possible, plan to launch your business in time to be included.

For most freight brokers, a print Yellow Pages display ad will not be worth the substantial investment that goes along with it; however, you might want to give your listing some distinction by having it set in bold type or including a line or two indicating your specialties or market niche. More importantly, make sure your website gets listed on all of the major search engines (Google, Yahoo!, Bing, etc.), and that your business gets listed with other online-based directory services, such as Yelp!, even though you’re not targeting consumers as your customers.

Broadcast (radio and television) advertising is generally not effective for freight brokers, but some print advertising (within industry-specific publications that cater to your niche audience) will help build your credibility and name recognition. Look for publications that shippers in your target market read; if you’re not sure what they are, ask some of the shippers you’d like to have as customers. Your ads do not have to be wildly creative; in fact, a better approach is to simply say what you do and why you do it well in an abbreviated format and then include your company name, your logo, and how to contact you. Keep the design of the ad clear and uncluttered; don’t cram so much text into it that no one will read it. Some great places to begin your print advertising are in the newsletters of your local transportation organizations.

You will also want to create a brochure that describes what you do. A basic 8.5-by-11-inch, three-panel piece is sufficient. It should include your company name, address, phone, and fax numbers; website and email addresses and other contact information; your logo; a detailed list of the services you provide; a brief description of your background to establish credibility; and a benefits statement that tells shippers why they should use you.

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A more targeted approach to paid advertising is to use online search engine advertising via a service like Google AdWords (https://adwords.google.com). These campaigns are inexpensive to create and launch, highly targeted, and can generate results very quickly. You can get started for a little as $50.

Once the brochure is created in printed form, make sure you offer the same content as part of your website, Facebook page, and any other online presence that you manage. For example, the printed brochure can be offered online as a downloadable PDF file, or the same content can be displayed as part of an interactive webpage.

Use a professional graphic designer and copywriter to produce your ads, brochures, and website content. All printed materials should be professionally printed; don’t just run them off on your laser printer or a photocopy machine. Your prospective customers will be able to tell, and you’ll look like an unstable, fly-by-night operation.

Know Thine Enemy

One of the most basic elements of effective marketing is differentiating yourself from the competition. One marketing consultant calls it “eliminating the competition,” because if no one else does exactly what you do, then you essentially have no competition. However, before you can differentiate yourself, you first need to understand who your competitors are and why your customers might use them.

As a freight broker, you’ll be competing with other brokers, freight forwarders, carriers, and probably some types of transportation consulting firms. To a degree, you’ll also be competing with your customers’ internal traffic departments.

Finding out about your competitors isn’t difficult. In many cases, you’ll know their people from your own industry networking, perhaps from previous jobs or professional associations. Your customers and potential customers will usually be very open about what they like and don’t like about other service providers. The key is to pay attention, take notes, and use what you learn in your own marketing efforts.

Outsourcing Opportunity

As you plan your marketing strategy, consider how the trend of outsourcing can help your brokerage. Outsourcing is the practice of contracting with an outside firm to handle tasks that are not part of a company’s core business. For example, as a freight broker, your core business is to link shippers and carriers, so you may choose to outsource such tasks as certain accounting procedures, some of your marketing functions, or perhaps the technical work involved in building a website and blog (and managing your company’s social media accounts).

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Establish yourself as an expert by writing articles for transportation trade publications and blogs, as well as the trade publications and blogs your target market reads. If you don’t have the writing skills and/or the time to compose articles yourself, hire a professional writer to ghostwrite (write under your name) them for you.

Many companies are outsourcing all or part of their shipping functions. Brokers are in an excellent position to offer themselves as an outsourcing resource, essentially functioning as the customer’s traffic department. You can relieve your customers of all the work related to transportation and traffic management, save them money, and improve their service.

“A number of our smaller customers use us for their entire shipping and receiving business,” says Bill Tucker. “Not only on the traffic management but also some of the purchasing and acquiring of products.” This type of consulting service does not require any particular license—just knowledge and the ability to provide the service.

Of course, it’s not a good idea to go to the traffic manager and pitch yourself as a supplier who wants to take over his job. You’ll have a much better chance of succeeding if you approach a senior person in the organization whose interest is finance, such as the CFO.

“You may go in and try to eliminate the traffic manager’s job,” says Indianapolis-based Chuck Andrews. “[Try to] convince the vice president of finance or the president of the company that by using your service, he can do away with one person. If [you are talking about] a traffic manager who is wearing multiple hats, [your sales position is that] you are there to assist him and make his job easier.”

Join the Right Groups

Professional associations offer a variety of networking and educational opportunities. If you’re serious about being a freight broker, you’ll want to join several organizations, some industry-exclusive and others more general.

Some of the associations you may consider include (see the Appendix for contact information):

• Transportation Intermediaries Association

• Delta Nu Alpha

• National Association of Small Trucking Companies

• National Association of Women Business Owners (for women-owned brokerage firms)

• Local transportation and traffic clubs

• Your local chamber of commerce

• A lead exchange or small local networking group

It’s a good idea to belong to the local transportation clubs in all the cities in which you do business. For example, Andrews belongs to three transportation associations in Indianapolis where his company has its headquarters, plus clubs in Chicago, Cincinnati, and other major areas where he does business. He doesn’t attend every single meeting, but he goes to the ones he can, and his name and company are listed on the membership rosters. “We get phone calls out of the blue from people who see our name on those rosters,” he says.

Done correctly, marketing can really give your business a boost—especially in the beginning, when you need it most. Keep in mind, marketing and sales are two different tasks that require different skill sets. The goal of marketing is to find and attract interest among perspective customers and clients (in your case, shippers). The goal of sales is to take the leads generated by your company’s marketing efforts and transform them into long-term paying customers.

Freight Brokerage Business

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