As I go through my morning routine, looking for something great to discuss in the blog today, I can't help but laugh. Every other blog or web-page is selling something. They are selling the "best ideas" on how you can change your life or change your business. In fact, one Blog I found talks about the 50 Marketing Tips that will generate customers for you immediately. Another provides the Top 11 Great Sales Tips to turn a No into a Yes.
Guess what? They all work - and at the same time . . . none of them work.
The truth is, there are thousands of consultants (and yes, even coaches, present company included) who are selling their ideas to be the "be all, end all" of your problem solving needs. And do you know who is making all the money with their ideas? THEY ARE.
As I tell all my clients, there are no magical seeds or perfect solutions for every business. What it takes is a Just Do It attitude more than anything else.
Don't get me wrong - you need the information that these gurus are providing you - they do have some great ideas. But what you need more than the ideas is the commitment and dedication to doing what they say, measure how well it is working for you, and then making a sound business decision (based on the numbers, not feelings) on whether to keep it up (and for how long) or try something else.
Everything takes time. Marketing doesn't happen overnight. Leadership is not a skill you master after going to a class. Customer service requires dedication and commitment to putting the customer first each and every day - it's never ending. Sales usually requires getting nine "NOs" just so you can get to the one "YES". If you quit halfway (or even nine tenths) into the process of any of these things, you will see the process as a failure. When in fact the only failure was that you quit.
So commit and dedicate what it takes to make the change to reach the goals you want. And start today - change occurs the minute you decide to make it. And believe it or not, the decision and commitment to act is more important than what you decide.
Showing posts with label Sales. Show all posts
Showing posts with label Sales. Show all posts
Thursday, July 9, 2009
Sunday, June 28, 2009
To Change Your Business Simply Change The Way You Pay Yourself
One of the biggest mistakes small business owners make is they think that since now they have their own business, all they have to do is "the work that they love". And because they are usually very good it (not by their own admission, but by all of the people that know of their work), they think their business will grow and thrive like no other.
Oooh, I'm sorry to say, NOTHING could be further from the truth. Running a business is much more than that.
And there are two types of business owners . . .
Those that know this to be true.
And those that will soon find out.
You see, when you own a business, you no longer get paid to do what you love to do . . . Instead you actually get paid for selling your business and your products to your potential customers.
You see, we're all human and we will naturally do more of what we get rewarded for (or what we think we are getting rewarded for). So if you think you are being rewarded for delivering your product and not for the sale, then you will always want to do more of the fun work (what you love to do) and less of the difficult labor of sales and marketing (what you dislike the most and usually know the least about as a small business owner).
As an Entrepreneur, your NUMBER ONE job just is actually getting customers to choose you . . . not producing the product. You can only if and only if new customers choose you. And the problem is thinking about your business any other way is actually detrimental to the long term success of your business.
How do you change this mindset?
Believe it or not . . . it's simple. Start paying yourself to produce customers instead of producing product. Don't compensate based on production, compensate based on marketing and sales.
Build systems and a culture into your business that is based upon this model - it will carry over to your employees and serve you well for years to come - as you grow your business bigger and bigger.
Does it change what you get paid? Probably not. But making small changes in attitude and language can make all the difference - knowing (in your heart) that you earned the money from the sale, will drive you to make more sales. And hence grow your business.
Bottom line is that if you want to grow your business, you have to stop thinking like an employees and start thinking like an Entrepreneur. And Entrepreneurs making money selling, not producing. So rather than paying yourself to produce the product you have always produced, start paying yourself for generating new business.
Oooh, I'm sorry to say, NOTHING could be further from the truth. Running a business is much more than that.
And there are two types of business owners . . .
Those that know this to be true.
And those that will soon find out.
You see, when you own a business, you no longer get paid to do what you love to do . . . Instead you actually get paid for selling your business and your products to your potential customers.
As an Entrepreneur, getting to do the work you love to do
is actually the reward for generating sales.
Not the other way around!
Sounds crazy, I know. But understanding this point could be the difference between success and failure of your business.is actually the reward for generating sales.
Not the other way around!
You see, we're all human and we will naturally do more of what we get rewarded for (or what we think we are getting rewarded for). So if you think you are being rewarded for delivering your product and not for the sale, then you will always want to do more of the fun work (what you love to do) and less of the difficult labor of sales and marketing (what you dislike the most and usually know the least about as a small business owner).
As an Entrepreneur, your NUMBER ONE job just is actually getting customers to choose you . . . not producing the product. You can only if and only if new customers choose you. And the problem is thinking about your business any other way is actually detrimental to the long term success of your business.
How do you change this mindset?
Believe it or not . . . it's simple. Start paying yourself to produce customers instead of producing product. Don't compensate based on production, compensate based on marketing and sales.
Build systems and a culture into your business that is based upon this model - it will carry over to your employees and serve you well for years to come - as you grow your business bigger and bigger.
Does it change what you get paid? Probably not. But making small changes in attitude and language can make all the difference - knowing (in your heart) that you earned the money from the sale, will drive you to make more sales. And hence grow your business.
Bottom line is that if you want to grow your business, you have to stop thinking like an employees and start thinking like an Entrepreneur. And Entrepreneurs making money selling, not producing. So rather than paying yourself to produce the product you have always produced, start paying yourself for generating new business.
Friday, June 19, 2009
Marketing, Sales, Operations or Customer Service? What Is Your Weakest Link?
Marketing's job is getting customers to walk in the door.
Sales' job is getting them to buy once they walk in.
Operations delivers on the promise that the sales person made - the product or service that the business provides.
And finally, Customer Service is making sure they are satisfied with what they were sold.
Those are the four main functions of delivering a product to your customers. Unfortunately, most small businesses are good at one, maybe two of them, but very few are good at all four. Because if they were, they probably wouldn't be small anymore.
I've heard it said that anyone can get someone to buy something once - often times they will do it out of curiosity. But getting them to come back again and again - to become a lifetime customer - takes a real business person. And of course, it takes "systems".
As you build a new business or grow an existing business, recognize that it doesn't matter how good any one of the processes that I spoke about earlier. Think of the four systems as "the chain of business". You are only as strong as your weakest link. How strong the strongest link in the chain is doesn't matter, the chain will always break at the weakest link.
Sadly, most small business owners usually do the exact opposite - they tend to be really strong in operations - building the product / creating the service that is their business - and they work to make the product better - instead of working on strengthening the other three aspects of their business.
Sure, you can have a great product or service - most people who have a small business do. But if you can't appeal to your target market (or don't know how to) or you can't sell your product (close the deal), or you can't ensure the customer is satisfied once the product is delivered, then it doesn't matter. You might get an occasional sale, but nothing to grow a business own.
Like life, your business needs balance. You need to nurture each segment of the business cycle, Marketing, Sales, Operations, and Customer Service. And you need to make sure that each element is as strong as you need them to be to ensure your customers experience what you INTEND them to experience when they patronize your business.
This takes diligence and commitment. So, as you begin to set out your goals for the next month or even 6 months to a year, make sure that you are committing to not only developing your product and service, but also to how you are going to market it, sell it, and satisfy the customers who purchase it.
Sales' job is getting them to buy once they walk in.
Operations delivers on the promise that the sales person made - the product or service that the business provides.
And finally, Customer Service is making sure they are satisfied with what they were sold.
Those are the four main functions of delivering a product to your customers. Unfortunately, most small businesses are good at one, maybe two of them, but very few are good at all four. Because if they were, they probably wouldn't be small anymore.
I've heard it said that anyone can get someone to buy something once - often times they will do it out of curiosity. But getting them to come back again and again - to become a lifetime customer - takes a real business person. And of course, it takes "systems".
As you build a new business or grow an existing business, recognize that it doesn't matter how good any one of the processes that I spoke about earlier. Think of the four systems as "the chain of business". You are only as strong as your weakest link. How strong the strongest link in the chain is doesn't matter, the chain will always break at the weakest link.
Sadly, most small business owners usually do the exact opposite - they tend to be really strong in operations - building the product / creating the service that is their business - and they work to make the product better - instead of working on strengthening the other three aspects of their business.
Sure, you can have a great product or service - most people who have a small business do. But if you can't appeal to your target market (or don't know how to) or you can't sell your product (close the deal), or you can't ensure the customer is satisfied once the product is delivered, then it doesn't matter. You might get an occasional sale, but nothing to grow a business own.
Like life, your business needs balance. You need to nurture each segment of the business cycle, Marketing, Sales, Operations, and Customer Service. And you need to make sure that each element is as strong as you need them to be to ensure your customers experience what you INTEND them to experience when they patronize your business.
This takes diligence and commitment. So, as you begin to set out your goals for the next month or even 6 months to a year, make sure that you are committing to not only developing your product and service, but also to how you are going to market it, sell it, and satisfy the customers who purchase it.
Thursday, April 2, 2009
Measure Twice, Cut Once
We've all heard the adage, "Measure twice, cut once", when it comes to construction and woodwork, but did you know you can use the same premise to kick start and guide your marketing efforts as well.
Reality is that most small business owners have no idea whether or not their marketing is working for them. It's not a matter of not spending money on marketing. They spend just fine. The problem lies in the fact that they don't know what they should be expecting from their investment. And unfortunately, they don't know what they should be measuring or how best to measure it, to decide whether or not it's working. So as important as it is to market your business (akin to cutting the wood), it's just as important to make sure that you are measuring what you want to improve through your marketing dollars.
Most small business owners measure one or two things: gross revenue / sales (how much did I collect) and / or net profit (how much did I make). So when they spend money on marketing, they expect their numbers to go up. But unfortunately, no matter how much money you spend on marketing, only measuring the end product will not yield the answer you are looking for, because marketing doesn't increase sales or profit - marketing increases the chances of making a sale by increasing the numbers of customers that volunteer to become potential customers. It is the entire business system, working harmoniously that builds on your profits.
An example of that is a mass-mailer campaign. If you invest $1000 in a mass mailing campaign, you would expect both your sales and your profit to go up, right? Unfortunately, business systems aren't that simple. Odd are, you increased the number of perspective customers walking through the door, but did your sales team have the skills and training in place to convert those new leads to actual sales? Was there an increase or even possibly a decrease in returning customers during that same period, because of a perceived drop in customer service (with less time and energy spent on taking care of existing customers)? Was the increase in sales large enough to compensate the increased costs of the marketing campaign?
That's not to say that measuring sales and profit aren't important - they absolutely are! However, there are other things to measure as well. The following are just a few examples of things to measure the effectiveness of your marketing dollar:
- new customers walking through the door
- number of times the phone rings per day
- number of website hits
- number of return visits per customer
- average price per sale
- number of referred customers
- where the customer heard of you
So before you go off and spend all of your hard earned money on marketing - that may or may not help you - start measuring the one or all of the items above (and any others that relate to the effectiveness of marketing). This will help you determine which marketing elements are working, and which ones aren't. And give you a better sense of control over what in most small businesses is completely "out of control".
Reality is that most small business owners have no idea whether or not their marketing is working for them. It's not a matter of not spending money on marketing. They spend just fine. The problem lies in the fact that they don't know what they should be expecting from their investment. And unfortunately, they don't know what they should be measuring or how best to measure it, to decide whether or not it's working. So as important as it is to market your business (akin to cutting the wood), it's just as important to make sure that you are measuring what you want to improve through your marketing dollars.
Most small business owners measure one or two things: gross revenue / sales (how much did I collect) and / or net profit (how much did I make). So when they spend money on marketing, they expect their numbers to go up. But unfortunately, no matter how much money you spend on marketing, only measuring the end product will not yield the answer you are looking for, because marketing doesn't increase sales or profit - marketing increases the chances of making a sale by increasing the numbers of customers that volunteer to become potential customers. It is the entire business system, working harmoniously that builds on your profits.
An example of that is a mass-mailer campaign. If you invest $1000 in a mass mailing campaign, you would expect both your sales and your profit to go up, right? Unfortunately, business systems aren't that simple. Odd are, you increased the number of perspective customers walking through the door, but did your sales team have the skills and training in place to convert those new leads to actual sales? Was there an increase or even possibly a decrease in returning customers during that same period, because of a perceived drop in customer service (with less time and energy spent on taking care of existing customers)? Was the increase in sales large enough to compensate the increased costs of the marketing campaign?
That's not to say that measuring sales and profit aren't important - they absolutely are! However, there are other things to measure as well. The following are just a few examples of things to measure the effectiveness of your marketing dollar:
- new customers walking through the door
- number of times the phone rings per day
- number of website hits
- number of return visits per customer
- average price per sale
- number of referred customers
- where the customer heard of you
So before you go off and spend all of your hard earned money on marketing - that may or may not help you - start measuring the one or all of the items above (and any others that relate to the effectiveness of marketing). This will help you determine which marketing elements are working, and which ones aren't. And give you a better sense of control over what in most small businesses is completely "out of control".
Thursday, March 19, 2009
Seven Steps to Small Business Success
According to the Small Business Administration, given the current rate of failure, nearly 85% of all small businesses started this year will fail by the end of 2014. That means that more than 8 out of every 10 entrepreneurs will have their hopes and dreams crushed and their financial accounts drained. But it doesn't have to be that way.
There are steps that every small business owner can follow that will help them reach their goals and do so, relatively easy. The following Seven Steps to Small Business Success are a cursory look at the simple steps that are often overlooked, but are so critical to survival.
1. Build A Solid Foundation. Every business (like your home) needs to be built on a strong foundation. Whether you are just starting out or you are struggling with the growth of your company, start by building or shoring up the foundation first. In business, your foundation is clearly defining "what you do", "where you are going" and "what is most important to you on that journey" - the answers to these three questions make up your Mission, your Vision and your Commitments, respectively.
2. Define How You Measure Success and Make Decisions Based on Those Metrics. Now that you built your foundation, its time to start figuring out how we are going to go from a foundation to the beautiful dream that is the vision. It's time to begin focusing on how we define, more concretely, what we will measure to decide if we are on the path to our dream. Its time to focus on your Metrics and Goals.
3. Create a Cohesive Team - Built on the Foundation of Your Dream. No one person has all the answers and can do it all - not in any industry. Build a team and define the culture of your organization.
Your team may include your family, your friends, your employees, a Business Coach, a CPA, an attorney, or anyone else that commits to help you reach your goals. Each member of your team, including you, needs to clearly know what they do, what they don't do and what is expected of them and that they will be held accountable - not to you, but to the team.
4. Write Guidelines, Build Systems, Share Everything and Empower Your Team. Don't keep everything in your head and try to do things "off the cuff". Clearly define jobs descriptions, expectations and processes within your business - the principals, boundaries and guidelines that represent the company, its employees and its practices. Without these explicit words, a company can be easily taken advantage of, be distracted from its goals or simply get caught chasing its own tail all day.
Additionally, the real competitive edge in the next decade is knowledge and learning. Your team can only help when they know and understand what the problems are - so share. . . everything. You'd be surprised where some of the best ideas come from.
5. Make the Sale. When it comes right down to it, you have to generate sales. If you are lucky, you will have a product that sells itself - but in the long term, that too shall pass. So you ask, how do I sell my product / service? Like every other stage of business - Start with a plan and then move to action. You need other people selling for you - employees help, but you want "raving fans" of your product and cheerleaders of your services. Get out and talk to as many people as you can - potential clients, business owners, friends and family. Join groups and organizations that are have potential clients or relationships with potential clients. Become a visible part of your market. Start with people that you know and that know you. It's not only okay, but highly encouraged, to start with friends and family as your first customers, and then broaden from there. People buy from those that they know and / or trust. So sales is about creating relationships and helping others see value in what you have to offer. And relationships take time. Most people don't want to be sold, but they love to buy - so listen and learn what they want, what they need, and what they value. But don't forget in the end to Ask for the Sale!
6. Take Advantage of Opportunities and Maintain Discipline. The most successful businesses maintain focus on their core mission and how it serves clients. Your core business should be a combination of what you do best, what you are most passionate about and what is what pays the bills. When opportunity comes knocking, and it will, you must have the discipline to make sure that it is aligned with your core mission and your strategic, vision before you jump on it - always think carefully before you commit your company resources to what may turn out to be a costly endeavor that takes you time, money and assets from what you do best.
7. Find an Accountability Partner. The "great" people and companies in the world find a way to do what the need to do, but don't want to do, to become who they want to be. Nearly every one of those that truly become great have an accountability partner to help them focus on the goal - the future they are trying to achieve. In sports, we call them coaches. In school, we call them teachers. Some of us have family (parents or maybe a spouse) and friends that hold us accountable to become who we want to be without becoming subjectively attached to the outcome. In recent years, the advent of the personal, executive, and business coaching industry has given us even more options. Whatever it takes - find someone who will stand in your future and believe in you even when you lose faith in yourself - someone who can make you do the things you know you should do, but don't want to do, don't know how to do or are afraid to do, so you can become the person who you dream of becoming.
For more about any or all of these steps, please contact email coach.jj@impossiblefutures.com for more information.
There are steps that every small business owner can follow that will help them reach their goals and do so, relatively easy. The following Seven Steps to Small Business Success are a cursory look at the simple steps that are often overlooked, but are so critical to survival.
1. Build A Solid Foundation. Every business (like your home) needs to be built on a strong foundation. Whether you are just starting out or you are struggling with the growth of your company, start by building or shoring up the foundation first. In business, your foundation is clearly defining "what you do", "where you are going" and "what is most important to you on that journey" - the answers to these three questions make up your Mission, your Vision and your Commitments, respectively.
2. Define How You Measure Success and Make Decisions Based on Those Metrics. Now that you built your foundation, its time to start figuring out how we are going to go from a foundation to the beautiful dream that is the vision. It's time to begin focusing on how we define, more concretely, what we will measure to decide if we are on the path to our dream. Its time to focus on your Metrics and Goals.
3. Create a Cohesive Team - Built on the Foundation of Your Dream. No one person has all the answers and can do it all - not in any industry. Build a team and define the culture of your organization.
Your team may include your family, your friends, your employees, a Business Coach, a CPA, an attorney, or anyone else that commits to help you reach your goals. Each member of your team, including you, needs to clearly know what they do, what they don't do and what is expected of them and that they will be held accountable - not to you, but to the team.
4. Write Guidelines, Build Systems, Share Everything and Empower Your Team. Don't keep everything in your head and try to do things "off the cuff". Clearly define jobs descriptions, expectations and processes within your business - the principals, boundaries and guidelines that represent the company, its employees and its practices. Without these explicit words, a company can be easily taken advantage of, be distracted from its goals or simply get caught chasing its own tail all day.
Additionally, the real competitive edge in the next decade is knowledge and learning. Your team can only help when they know and understand what the problems are - so share. . . everything. You'd be surprised where some of the best ideas come from.
5. Make the Sale. When it comes right down to it, you have to generate sales. If you are lucky, you will have a product that sells itself - but in the long term, that too shall pass. So you ask, how do I sell my product / service? Like every other stage of business - Start with a plan and then move to action. You need other people selling for you - employees help, but you want "raving fans" of your product and cheerleaders of your services. Get out and talk to as many people as you can - potential clients, business owners, friends and family. Join groups and organizations that are have potential clients or relationships with potential clients. Become a visible part of your market. Start with people that you know and that know you. It's not only okay, but highly encouraged, to start with friends and family as your first customers, and then broaden from there. People buy from those that they know and / or trust. So sales is about creating relationships and helping others see value in what you have to offer. And relationships take time. Most people don't want to be sold, but they love to buy - so listen and learn what they want, what they need, and what they value. But don't forget in the end to Ask for the Sale!
6. Take Advantage of Opportunities and Maintain Discipline. The most successful businesses maintain focus on their core mission and how it serves clients. Your core business should be a combination of what you do best, what you are most passionate about and what is what pays the bills. When opportunity comes knocking, and it will, you must have the discipline to make sure that it is aligned with your core mission and your strategic, vision before you jump on it - always think carefully before you commit your company resources to what may turn out to be a costly endeavor that takes you time, money and assets from what you do best.
7. Find an Accountability Partner. The "great" people and companies in the world find a way to do what the need to do, but don't want to do, to become who they want to be. Nearly every one of those that truly become great have an accountability partner to help them focus on the goal - the future they are trying to achieve. In sports, we call them coaches. In school, we call them teachers. Some of us have family (parents or maybe a spouse) and friends that hold us accountable to become who we want to be without becoming subjectively attached to the outcome. In recent years, the advent of the personal, executive, and business coaching industry has given us even more options. Whatever it takes - find someone who will stand in your future and believe in you even when you lose faith in yourself - someone who can make you do the things you know you should do, but don't want to do, don't know how to do or are afraid to do, so you can become the person who you dream of becoming.
For more about any or all of these steps, please contact email coach.jj@impossiblefutures.com for more information.
Wednesday, March 4, 2009
Are Your Sales Down? By How Much?
Ask any small business owner these two questions and they can usually give you exact numbers.
But ask them the more important questions, "Why?" or "Which element of sales is down?", and most will look at you with completely blank stares. Or they will ask you a question right back, "What difference does it make?"
So I ask you, the reader, does it matter? Should I care why sales are down, or just that sales are down? Probably no surprise to you, but in my opinion, the answer to both of these questions is, "Absolutely, it matters."
If your industry average sales numbers are down 30% and you are only down 5%, are you doing something right or doing something wrong?
How about if your new customer sales are up 25% but your repeat customer sales are down 40%, do you have a marketing problem, an operational problem, or perhaps both? What if those numbers were reversed.
Unfortunately, it's my experience as a Small Business Coach, that most owners are incapable of asking these questions, because they don't gather the information necessary to even consider them. All they seem to care about is total sales and, surprisingly, to a lesser degree total profit. And no matter how much I try to get them to seek out more data, they continue to fall back on these big picture numbers - and stop there.
So what can you, as a small business owner, do about this? First, you need to recognize that you have a responsibility to your business to do whatever it needs to help it survive - not what feels good to you. And you can start with grasping the idea that your business needs you to start managing it - and stop letting it manage you.
The first step to management is measurement. So start measuring everything. Measure the number of times the phone rings (and what times it rings). Measure average sales every day, what kind of sales occur between 2-4pm on Tuesdays and which ones occur on Wednesday evenings. Measure your conversion rates, from both phone-in and website leads, separately.
But don't stop there. If you can think of it, measure it.
Do it all by hand at first (if you must). But over time, figure out how to automate it all.
And remember, the more you measure, the more you can manage. The more you can manage, the more you can begin to improve. The more you improve, the better the bottom line. And that's your ultimate goal - to improve your business and drive up profits.
But ask them the more important questions, "Why?" or "Which element of sales is down?", and most will look at you with completely blank stares. Or they will ask you a question right back, "What difference does it make?"
So I ask you, the reader, does it matter? Should I care why sales are down, or just that sales are down? Probably no surprise to you, but in my opinion, the answer to both of these questions is, "Absolutely, it matters."
If your industry average sales numbers are down 30% and you are only down 5%, are you doing something right or doing something wrong?
How about if your new customer sales are up 25% but your repeat customer sales are down 40%, do you have a marketing problem, an operational problem, or perhaps both? What if those numbers were reversed.
Unfortunately, it's my experience as a Small Business Coach, that most owners are incapable of asking these questions, because they don't gather the information necessary to even consider them. All they seem to care about is total sales and, surprisingly, to a lesser degree total profit. And no matter how much I try to get them to seek out more data, they continue to fall back on these big picture numbers - and stop there.
So what can you, as a small business owner, do about this? First, you need to recognize that you have a responsibility to your business to do whatever it needs to help it survive - not what feels good to you. And you can start with grasping the idea that your business needs you to start managing it - and stop letting it manage you.
The first step to management is measurement. So start measuring everything. Measure the number of times the phone rings (and what times it rings). Measure average sales every day, what kind of sales occur between 2-4pm on Tuesdays and which ones occur on Wednesday evenings. Measure your conversion rates, from both phone-in and website leads, separately.
But don't stop there. If you can think of it, measure it.
Do it all by hand at first (if you must). But over time, figure out how to automate it all.
And remember, the more you measure, the more you can manage. The more you can manage, the more you can begin to improve. The more you improve, the better the bottom line. And that's your ultimate goal - to improve your business and drive up profits.
Sunday, March 1, 2009
Taking Control and Making It Work!
In spite of his industry averaging a 20% decline in sales because of the recession, one of my clients is actually setting out this year to achieve a 25% increase over last years gross revenue numbers. Is he crazy thinking such a thing could happen? Some think so.
I don't! He would only be crazy if he did the same things, took the same actions that he did last year, and thought he would still reach his goals.
But he's NOT! He's taking control and making it work.
In fact, he is taking such big steps to make his goals come true, there is a chance that he could do 50% better (or even more) than last year - that is if he keeps his focus and continues to push himself out of his comfort zone.
However, in spite of the "lofty" goals, what he's doing isn't magical. And it will probably sound simple to many of you - but the key is what he's doing, but instead that he is doing it. He's not waiting for the market to turn or for someone else to come in and save his business. Hes taking control and making it work, because you can't count on either of those two things happening anytime soon.
His strategy is simple - develop a consistent product that generates repeat clients, while leveraging inexpensive measurable marketing methodologies to attract new customers into the fold. To make this happen, he's broken down his strategy into three definable action areas:
- Go aggressively after B2B (Business to Business) clients - Realizing the stability of B2B revenue, my client is focusing considerable effort on this phase of his business. It was part of his business that had been very lucrative for his him in the past. However, because of a lack of well defined systems, management of this effort was insane - often causing him sleepless nights countless headaches. But now, he has committed to putting together both operational systems to keep his services consistent and sales systems to gather more of reliable clients and begin gathering market share (while others are retracting).
It's a bold plan, but he is beginning to see the benefits of his efforts -getting more and more B2B clients signing up for his services. Meanwhile, with his new operational sytems in place, the management of the service is becoming easier and easier.
- Do everything he can to keep his existing clients happy and returning for more business - Again, focused on leveraging the stability of income from keeping his existing customers happy, my client has stepped up his commitment to seek out and understand their needs and concerns. He's now going well beyond just providing a service, but also providing VALUE beyond their expectations. And again, it's paying off, as repeat B2C sales are up as well as referrals and the numbers of unsolicited testimonials.
- Attempting to get new B2C (Business to Customer) clients while leveraging less costly marketing methodologies that have very measurable results. Recognizing the cost and unreliability of his past marketing methods, my client is beginning to get smarter about attracting new clients to his business. Simply stated, he's taking more control into his own hands and making it work.
In the past, he would handed it off his marketing to other agencies and trust that they had his best interests in mind. That was costly and very unreliable. But now, he is learning how to do much of the work himself. In addition, when either time is limited or real expertise is needed, he is being more proactive with the teams he contracts out to. He is aggressively holding those that are supporting him accountable to produce what they say they will produce.
All three of these methods may seem common sense to some of you. But I ask you, how are YOU taking different actions this year to achieve your goals? How are YOU taking control of your business's destiny instead of "hoping" things will get better?
What is your strategy for improving your bottom line in the coming year.
How are YOU taking control and making it work?
I don't! He would only be crazy if he did the same things, took the same actions that he did last year, and thought he would still reach his goals.
But he's NOT! He's taking control and making it work.
In fact, he is taking such big steps to make his goals come true, there is a chance that he could do 50% better (or even more) than last year - that is if he keeps his focus and continues to push himself out of his comfort zone.
However, in spite of the "lofty" goals, what he's doing isn't magical. And it will probably sound simple to many of you - but the key is what he's doing, but instead that he is doing it. He's not waiting for the market to turn or for someone else to come in and save his business. Hes taking control and making it work, because you can't count on either of those two things happening anytime soon.
His strategy is simple - develop a consistent product that generates repeat clients, while leveraging inexpensive measurable marketing methodologies to attract new customers into the fold. To make this happen, he's broken down his strategy into three definable action areas:
- Go aggressively after B2B (Business to Business) clients - Realizing the stability of B2B revenue, my client is focusing considerable effort on this phase of his business. It was part of his business that had been very lucrative for his him in the past. However, because of a lack of well defined systems, management of this effort was insane - often causing him sleepless nights countless headaches. But now, he has committed to putting together both operational systems to keep his services consistent and sales systems to gather more of reliable clients and begin gathering market share (while others are retracting).
It's a bold plan, but he is beginning to see the benefits of his efforts -getting more and more B2B clients signing up for his services. Meanwhile, with his new operational sytems in place, the management of the service is becoming easier and easier.
- Do everything he can to keep his existing clients happy and returning for more business - Again, focused on leveraging the stability of income from keeping his existing customers happy, my client has stepped up his commitment to seek out and understand their needs and concerns. He's now going well beyond just providing a service, but also providing VALUE beyond their expectations. And again, it's paying off, as repeat B2C sales are up as well as referrals and the numbers of unsolicited testimonials.
- Attempting to get new B2C (Business to Customer) clients while leveraging less costly marketing methodologies that have very measurable results. Recognizing the cost and unreliability of his past marketing methods, my client is beginning to get smarter about attracting new clients to his business. Simply stated, he's taking more control into his own hands and making it work.
In the past, he would handed it off his marketing to other agencies and trust that they had his best interests in mind. That was costly and very unreliable. But now, he is learning how to do much of the work himself. In addition, when either time is limited or real expertise is needed, he is being more proactive with the teams he contracts out to. He is aggressively holding those that are supporting him accountable to produce what they say they will produce.
All three of these methods may seem common sense to some of you. But I ask you, how are YOU taking different actions this year to achieve your goals? How are YOU taking control of your business's destiny instead of "hoping" things will get better?
What is your strategy for improving your bottom line in the coming year.
How are YOU taking control and making it work?
Tuesday, February 24, 2009
What Your Customers Want and Need From You
Regardless of your industry, your customers are looking for you to provide them what they want and / or need. And interestingly enough, those wants and needs fall into four basic levels - the four levels of customer service. The more you understand them and can fold them into your business methods, the more likely your customers will choose you again and again - and even recommend you to their friends and family. In fact, if you understand the four levels of customer service, you will become more to your customers than you have ever been before and you will begin to see that your customers will become more to you than you could possibly imagine.
Those four needs (levels of customer service) are:
- Getting the product they expect
- Being able to get the product they want, when they want it and where they want it
- Having you understand them and feel that you are on the same team - not opposition
- Being able to rely on you as an expert in your field.
The first two levels are not just wants, but in fact requirements that your customers demand of you to continue using your services / products. If you fail to provide the product that you promise and fail to provide it in a location convenient for them at the time they want / need it, they will choose another business to patron. That isn't an opinion – it is tested and proven correctly, everyday, in every business around the country.
You see, it doesn't matter how clean your store is, how friendly and nice your employees are, or how much you know about what you do - if you can't fulfill the first two needs, your customers will move on.
But not to worry, this is why you are in business – to provide your product or service when and where your customers want it. These are the easiest parts of customer service – the parts that you built into your business from the very beginning. These parts, product, location and availability are easy to create and easy to provide. Unfortunately for you, they are also very easy for your competition to duplicate. That's right in today's world, your competitors can easily provide the same service or product that you provide, where and when your customers want it.
So the essence of customer service comes down to the second two needs – both of which separate you from your competition and are very difficult to duplicate.
First lets talk about understanding your customers and getting them to believe that you are their friend – helping them to solve their problems.
Most businesses sell the product or provide the service that they create – not what the customer is looking for. The trick to reaching this level of customer service is to stop and figure out what you can offer your customers, systematically, that will fulfill some of their biggest needs / concerns beyond just getting your product.
As an example, one of my clients, a cleaning specialist, recognized the value of this level of customer service. He noticed that many of his customers were selling their house or had just moved into a new house and wanted his services. So, in order to drum up new business, he created guarantee – If you sell your home with six months of using his services, he will clean the same areas of the home for free when the new owners move in. By making this simple gesture, he showed his customers that he understood how difficult the process of selling a home is, and that he is on their side – and will help out by relieving them of the burden of having to re-clean again after the sale is made.
Another example of this comes from another one of my clients – a medical professional. He realizes the importance of understanding his patients' needs, too. But in this case, this Doctor wanted to honor his patient's time. So he created a guarantee, that no other doctor I know has the gumption to make. He guarantees that if you aren't seen within 15 minutes of your scheduled appointment, you will get a free $20 gas card at a local gas station. Sound crazy – you bet it is – but his patients love it and he is always on time!
So, take a look at your customers and figure out what it is that is really going to help them feel understood – because the business that can pull this off is one step closer to turning your one time customers into lifelong cheerleaders.
Finally, the last level of customer service is becoming an expert in your industry – someone that they know they can turn to for advice and someone that teaches them the ins and outs of the industry (the trade secrets). Reaching this level is truly about becoming more than just a product provider and becoming a source of information on the hows and whys of what you do.
Again, to provide some examples of this concept, let me bring up a couple of clients.
The first example is a flower shop. A couple of months back they began teaching their clients how to arrange by offering evening classes with their clients. Some might think that this would hurt sales – those customers won't need to buy flowers any more. They will be able to make their own. Nothing could be farther from the truth. Because not only did they attend the classes, but they talked about the classes (and the shop that provided them) to every one of their friends and families. Suddenly, they became the talk around the dinner table – as much as the centerpiece itself did.
And another example goes back to my cleaning specialist client. In his newsletter, he gave away his secret cleaning recipe. That's right just gave it away to all of his customers. How crazy could he be? Now instead of calling him when they have a small stain that needs to be cleaned, they can go to any thrift or grocery store and get the ingredients to mix up his special homemade cleaning agent and NOT have to call him to come out.
But wait . . . Do you think when it's the grime builds up on their carpets or tile floors, they will call someone else? Absolutely not. And do you think they will share this information and where they got it from with their neighbors. You better believe it. So without spending a dime, this client of mine has taken his customers from just being one time customers to now being truly fans of his business and the testimonials and referrals just come streaming in.
So, by moving beyond just providing your product and service when and where you clients want or need it, and beginning to understand your clients bigger concerns and issues as well as becoming an expert source for your clients, you are well on your way from just having one time customers to having cheerleaders and raving fans that will grow your business faster and more effectively than any other form of marketing out there.
Those four needs (levels of customer service) are:
- Getting the product they expect
- Being able to get the product they want, when they want it and where they want it
- Having you understand them and feel that you are on the same team - not opposition
- Being able to rely on you as an expert in your field.
The first two levels are not just wants, but in fact requirements that your customers demand of you to continue using your services / products. If you fail to provide the product that you promise and fail to provide it in a location convenient for them at the time they want / need it, they will choose another business to patron. That isn't an opinion – it is tested and proven correctly, everyday, in every business around the country.
You see, it doesn't matter how clean your store is, how friendly and nice your employees are, or how much you know about what you do - if you can't fulfill the first two needs, your customers will move on.
But not to worry, this is why you are in business – to provide your product or service when and where your customers want it. These are the easiest parts of customer service – the parts that you built into your business from the very beginning. These parts, product, location and availability are easy to create and easy to provide. Unfortunately for you, they are also very easy for your competition to duplicate. That's right in today's world, your competitors can easily provide the same service or product that you provide, where and when your customers want it.
So the essence of customer service comes down to the second two needs – both of which separate you from your competition and are very difficult to duplicate.
First lets talk about understanding your customers and getting them to believe that you are their friend – helping them to solve their problems.
Most businesses sell the product or provide the service that they create – not what the customer is looking for. The trick to reaching this level of customer service is to stop and figure out what you can offer your customers, systematically, that will fulfill some of their biggest needs / concerns beyond just getting your product.
As an example, one of my clients, a cleaning specialist, recognized the value of this level of customer service. He noticed that many of his customers were selling their house or had just moved into a new house and wanted his services. So, in order to drum up new business, he created guarantee – If you sell your home with six months of using his services, he will clean the same areas of the home for free when the new owners move in. By making this simple gesture, he showed his customers that he understood how difficult the process of selling a home is, and that he is on their side – and will help out by relieving them of the burden of having to re-clean again after the sale is made.
Another example of this comes from another one of my clients – a medical professional. He realizes the importance of understanding his patients' needs, too. But in this case, this Doctor wanted to honor his patient's time. So he created a guarantee, that no other doctor I know has the gumption to make. He guarantees that if you aren't seen within 15 minutes of your scheduled appointment, you will get a free $20 gas card at a local gas station. Sound crazy – you bet it is – but his patients love it and he is always on time!
So, take a look at your customers and figure out what it is that is really going to help them feel understood – because the business that can pull this off is one step closer to turning your one time customers into lifelong cheerleaders.
Finally, the last level of customer service is becoming an expert in your industry – someone that they know they can turn to for advice and someone that teaches them the ins and outs of the industry (the trade secrets). Reaching this level is truly about becoming more than just a product provider and becoming a source of information on the hows and whys of what you do.
Again, to provide some examples of this concept, let me bring up a couple of clients.
The first example is a flower shop. A couple of months back they began teaching their clients how to arrange by offering evening classes with their clients. Some might think that this would hurt sales – those customers won't need to buy flowers any more. They will be able to make their own. Nothing could be farther from the truth. Because not only did they attend the classes, but they talked about the classes (and the shop that provided them) to every one of their friends and families. Suddenly, they became the talk around the dinner table – as much as the centerpiece itself did.
And another example goes back to my cleaning specialist client. In his newsletter, he gave away his secret cleaning recipe. That's right just gave it away to all of his customers. How crazy could he be? Now instead of calling him when they have a small stain that needs to be cleaned, they can go to any thrift or grocery store and get the ingredients to mix up his special homemade cleaning agent and NOT have to call him to come out.
But wait . . . Do you think when it's the grime builds up on their carpets or tile floors, they will call someone else? Absolutely not. And do you think they will share this information and where they got it from with their neighbors. You better believe it. So without spending a dime, this client of mine has taken his customers from just being one time customers to now being truly fans of his business and the testimonials and referrals just come streaming in.
So, by moving beyond just providing your product and service when and where you clients want or need it, and beginning to understand your clients bigger concerns and issues as well as becoming an expert source for your clients, you are well on your way from just having one time customers to having cheerleaders and raving fans that will grow your business faster and more effectively than any other form of marketing out there.
Monday, February 16, 2009
Upgrade Your Best Customers To "First Class"
When it comes to how most Airlines treat customer service, there isn't very much there worth emulating. They are big, most of their customer service reps seem disenfranchised, and quite honestly, they are stuck in a rut where they don't feel they can meet customer expectations anyway. But there is one aspect of customer service they do very well - the way they take care of their "best customers".
Most people don't realize the lengths that Airlines go to take care of their best customers - because "most people" don't fly often enough to really capitalize on the perks. Sure they get "miles" on their trip to visit family or when they vacation to Cancun - but few fly often enough to gain access to the top rewards programs. Good or bad, those of us business travelers who spend hours and hours in airports flying from meeting to meeting, week in and week out, the perks that are offered by the big Airlines are very nice - and enough to drive customer loyalty, in a business that otherwise has none.
What is it that they do for their best customers? More than anything, they make them feel important - like they really care that they are flying on their airline. Something that doesn't come out so well in the rest of the flying experience.
Have you ever been upgraded to First Class - randomly pulled out of the crowd to see with the "elite"? For their best customers, First Class upgrades are common place - sometimes as often as 60-75% of the time (if they schedule their routes smartly). And "First Class" treatment goes well beyond the big seat. It is an entire attitude and way they treat their "elite" customers.
I know what you are thinking. This is great stuff, but your business isn't like the airline industry. You don't have the ability to offer anything like "First Class" to your customers. It would cost too much and disenfranchise your other customers. This could be true, but the same could be said for the Airline Industry as well.
Surveys show that most customers don't leave a business because they are dissatisfied with their experience. Instead, most (nearly 70%) leave because they don't feel the business cares about them and whether or not they ever come back. And it has been shown that one of the best ways to show how much you care is to offer more "perks" to your best customers - give them value above and beyond what they expected.
Frankly, in an industry where most "tickets" are purchased based on price alone, most Airlines have built-in a system where the travelers who fly the most, actually go out of their way to choose the same Airline again and again - often without even shopping around for other fares. I know I do.
One way to do this in your business is to start offering higher end service in your business model - something like first class. That could be faster delivery, same day service, special seating, or even "head of the line" privileges. Will some people pay for it? Absolutely - they always will. If you build a product and market it to the right target audience (those that have the need for the service), someone will always want the "best" service you offer. Once you have this high end service in place (and quite honestly making more money from it), you can start to offer that service as a perk for your best customers - let them get a taste of the "good life". And watch them find ways to patronize you. . . again and again. The key to the success of a process like this isn't just doing it covertly - silently upgrading customers. Shout it out! Make it part of your marketing programs! Make it something that customers can work towards earning as a loyal customer of yours.
So, stop and think about it. What could you do to make your best customers feel like they are your best customers? What could you do to make your average customers want to become "your best customer"? What "upgrades" could you put into place in your business, and then offer them as perks to your best customers? It doesn't take much, but if you can make your best customers know how much they mean to you, I promise, they will pay you back in so many ways - referrals, testimonials, and increased sales by themselves.
Most people don't realize the lengths that Airlines go to take care of their best customers - because "most people" don't fly often enough to really capitalize on the perks. Sure they get "miles" on their trip to visit family or when they vacation to Cancun - but few fly often enough to gain access to the top rewards programs. Good or bad, those of us business travelers who spend hours and hours in airports flying from meeting to meeting, week in and week out, the perks that are offered by the big Airlines are very nice - and enough to drive customer loyalty, in a business that otherwise has none.
What is it that they do for their best customers? More than anything, they make them feel important - like they really care that they are flying on their airline. Something that doesn't come out so well in the rest of the flying experience.
Have you ever been upgraded to First Class - randomly pulled out of the crowd to see with the "elite"? For their best customers, First Class upgrades are common place - sometimes as often as 60-75% of the time (if they schedule their routes smartly). And "First Class" treatment goes well beyond the big seat. It is an entire attitude and way they treat their "elite" customers.
I know what you are thinking. This is great stuff, but your business isn't like the airline industry. You don't have the ability to offer anything like "First Class" to your customers. It would cost too much and disenfranchise your other customers. This could be true, but the same could be said for the Airline Industry as well.
Surveys show that most customers don't leave a business because they are dissatisfied with their experience. Instead, most (nearly 70%) leave because they don't feel the business cares about them and whether or not they ever come back. And it has been shown that one of the best ways to show how much you care is to offer more "perks" to your best customers - give them value above and beyond what they expected.
Frankly, in an industry where most "tickets" are purchased based on price alone, most Airlines have built-in a system where the travelers who fly the most, actually go out of their way to choose the same Airline again and again - often without even shopping around for other fares. I know I do.
One way to do this in your business is to start offering higher end service in your business model - something like first class. That could be faster delivery, same day service, special seating, or even "head of the line" privileges. Will some people pay for it? Absolutely - they always will. If you build a product and market it to the right target audience (those that have the need for the service), someone will always want the "best" service you offer. Once you have this high end service in place (and quite honestly making more money from it), you can start to offer that service as a perk for your best customers - let them get a taste of the "good life". And watch them find ways to patronize you. . . again and again. The key to the success of a process like this isn't just doing it covertly - silently upgrading customers. Shout it out! Make it part of your marketing programs! Make it something that customers can work towards earning as a loyal customer of yours.
So, stop and think about it. What could you do to make your best customers feel like they are your best customers? What could you do to make your average customers want to become "your best customer"? What "upgrades" could you put into place in your business, and then offer them as perks to your best customers? It doesn't take much, but if you can make your best customers know how much they mean to you, I promise, they will pay you back in so many ways - referrals, testimonials, and increased sales by themselves.
Saturday, February 7, 2009
Marketing is Satisfying The Customer - Not Your Own Ego
I've had a couple discussions in the past 24 hours about customers and how best to satisfy them. And interestingly enough, Seth Godin wrote a short blog about it today as well.
Most business owners / Entrepreneurs out there are frustrated because sales are not as high as they want (or need) them to be. When I hear this, two of the first questions I ask them are:
1. What do your existing customers like about you - why do they choose you?
2. What are the needs / wants of the market you are trying to capture?
As I talked about the other day in my blog, Which comes first, the product or the marketing?, it's quite easy to fall into the mindset of "If I build it, they will come." This is the standard response - because the Entrepreneur thinks he has a great product. But nothing could be further from the truth. You can create the best product in your market, and still not be able to get any customers to come to you. That's because, except in very few cases, YOU ARE NOT YOUR TARGET AUDIENCE! If you haven't asked them the questions, you won't really know the answers.
To find out what your target audience is looking for - what "needs" do they have that are currently unfulfilled, you must ask some questions (and obviously find out the answers). Who is your target audience? Who is it that you are either currently appealing to? Or who do you want to appeal to?
Once you know WHO your target market is (as specifically as you can narrow them down), you have to find out WHAT they are specifically looking for.
Let me give you an example on this one. If you are a carpet cleaner, you would think that your customers are looking for carpet cleaning. Makes sense right? WRONG! But, if you look through nearly all the carpet cleaning ads out there, most of them are selling carpet cleaning. Unfortunately, that's really not what most people want. What they really want is clean carpets!!! The difference may only seem like the reversal of two words - carpet and clean. But the meaning is completely different.
When you sell carpet cleaning, you are selling a process - a method. People don't really care about the method - what they want is the end result - clean carpets. They are willing to pay someone to provide them clean carpets - if you will assure them that is what they are doing. But they are less inclined to want to be sold "carpet cleaning" - because there is no implied guarantee that they are in fact getting clean carpets. See the difference?
How do you find out what it is that they need? As simple as it sounds, you ask them. Create a survey. Ask your current customers and as many potential customers (your target audience) as you can afford to ask. Find the answer, because believe it or not - YOUR BUSINESS' SUCCESS DEPENDS ON IT!
So, it comes down to, understanding what the customer wants and needs - answering the question, "What does my business and / or product have to be in the heart and minds of my customer in order for them to choose me over every other option that they have to spend their money on?" When you find this out and use the in your marketing message - then you will become the Entrepreneur that you set out to become when you started your business.
Most business owners / Entrepreneurs out there are frustrated because sales are not as high as they want (or need) them to be. When I hear this, two of the first questions I ask them are:
1. What do your existing customers like about you - why do they choose you?
2. What are the needs / wants of the market you are trying to capture?
As I talked about the other day in my blog, Which comes first, the product or the marketing?, it's quite easy to fall into the mindset of "If I build it, they will come." This is the standard response - because the Entrepreneur thinks he has a great product. But nothing could be further from the truth. You can create the best product in your market, and still not be able to get any customers to come to you. That's because, except in very few cases, YOU ARE NOT YOUR TARGET AUDIENCE! If you haven't asked them the questions, you won't really know the answers.
To find out what your target audience is looking for - what "needs" do they have that are currently unfulfilled, you must ask some questions (and obviously find out the answers). Who is your target audience? Who is it that you are either currently appealing to? Or who do you want to appeal to?
Once you know WHO your target market is (as specifically as you can narrow them down), you have to find out WHAT they are specifically looking for.
Let me give you an example on this one. If you are a carpet cleaner, you would think that your customers are looking for carpet cleaning. Makes sense right? WRONG! But, if you look through nearly all the carpet cleaning ads out there, most of them are selling carpet cleaning. Unfortunately, that's really not what most people want. What they really want is clean carpets!!! The difference may only seem like the reversal of two words - carpet and clean. But the meaning is completely different.
When you sell carpet cleaning, you are selling a process - a method. People don't really care about the method - what they want is the end result - clean carpets. They are willing to pay someone to provide them clean carpets - if you will assure them that is what they are doing. But they are less inclined to want to be sold "carpet cleaning" - because there is no implied guarantee that they are in fact getting clean carpets. See the difference?
How do you find out what it is that they need? As simple as it sounds, you ask them. Create a survey. Ask your current customers and as many potential customers (your target audience) as you can afford to ask. Find the answer, because believe it or not - YOUR BUSINESS' SUCCESS DEPENDS ON IT!
So, it comes down to, understanding what the customer wants and needs - answering the question, "What does my business and / or product have to be in the heart and minds of my customer in order for them to choose me over every other option that they have to spend their money on?" When you find this out and use the in your marketing message - then you will become the Entrepreneur that you set out to become when you started your business.
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