Attention small business owner we are all in the same boat; down economy, new president, new promises, less consumer spending, uncertain future, and bills that just keep coming. So how do we manage to make it through these times without having to dip into that line of credit one more time? Better yet, how can we grow in an economy such as this?
The number one strategy for generating business in this economy is to create and deliver consistent communication to your current customers who in turn have a greater potential to increase the frequency of return and purchasing. Once your company has a customer base this becomes one of the most important areas of your business. The overall goal is to turn an existing customer into a repeat customer. According to Source, “Acquiring a customer costs five to ten times more than retaining one. Repeat customers spend, on average, 67% more. After 10 purchases a customer has referred as many as 7 other people.”
This statistic can be a wake up call to the small business owner. Small businesses, in general, connect more with their customers compared to large corporations. With this “customer connection” all we need is a system in place to reach out to them. It can be as easy as a phone call or more sophisticated such as an email newsletter. Either way we want to constantly connect with our customers so we will increase their likelihood of doing business with us again.
This is what is we refer to as Internal Marketing. Marketing that is focused solely on your current customer base. This type of marketing is key because it is inexpensive and you already have a captive audience who already knows you and has already done business with you. It’s a no-brainer! We know that money can be tough as a small business owner so using your current resources to produce revenue is a win-win; we spend less and gain more.
Sunday, February 15, 2009
Friday, February 6, 2009
Preparing for the fight ahead
The economy is getting tough and everyone is starting to really watch how they spend their money. This means small business owners need to get dirty now. I am going to focus on the income producing ideas in this Blog verses the expense cutting ideas...for now.
If you continue to do business the way you have always done business, then you will continue to get the same results you have always produced. Make sense?
But if you shift you sales and marketing approach and rethink how to deliver it more creatively and in a less expensive way, then you may find you are getting more business in the door. Let's look at the basics:
1. Do you keep a database of your customers and their information (such as DOB, address, phone, email, any demographics, etc.)? If yes, then the data needs to be looked at carefully to discover who your customers are and what they are purchasing. If you do not collect this type of information I suggest starting now. Research should always be the starting point to marketing to increase your probability of targeting the correct audience, thus increasing your probability of a sale.
2. Change the game. Set 3 new strategies for how to get more customers in the door. These 3 strategies should be actions you have not taken before. Challenge your strategies before moving on to ensure you feel they have the most potential based on the research. Once you have put together 3 strategies create 3 ways to implement each strategy and then create 3 ways to implement those 3 processes. Your plan of strategy and execution should look like this;
* Strategy 1
*Process A
* Sub Process a
* Sub Process b
* Sub Process c
* Process B
* Sub Process a
* Sub Process b
* Sub Process c
* Process C
* Sub Process a
* Sub Process b
* Sub Process c
* Strategy 2
etc.
This is how you can create a plan to execute a strategy based on our 3x3 Model. Each element should have 4 things:
1. A person responsible for the task
2. A time and date the process or task needs to be completed to ensure the strategy does not go out longer than 12 months. we are working with shot term initiatives.
3. Performance measures. You need to see how things are progressing daily or weekly to ensure things stay on course.
4. Incentives. If an employee hits the target or goal they need to be rewarded.
Get out and implement the strategy and do not delay. Remember, if you do what you have always done, you will get what you have always gotten.
To greater success and please feel free to write in with you success stories.
If you continue to do business the way you have always done business, then you will continue to get the same results you have always produced. Make sense?
But if you shift you sales and marketing approach and rethink how to deliver it more creatively and in a less expensive way, then you may find you are getting more business in the door. Let's look at the basics:
1. Do you keep a database of your customers and their information (such as DOB, address, phone, email, any demographics, etc.)? If yes, then the data needs to be looked at carefully to discover who your customers are and what they are purchasing. If you do not collect this type of information I suggest starting now. Research should always be the starting point to marketing to increase your probability of targeting the correct audience, thus increasing your probability of a sale.
2. Change the game. Set 3 new strategies for how to get more customers in the door. These 3 strategies should be actions you have not taken before. Challenge your strategies before moving on to ensure you feel they have the most potential based on the research. Once you have put together 3 strategies create 3 ways to implement each strategy and then create 3 ways to implement those 3 processes. Your plan of strategy and execution should look like this;
* Strategy 1
*Process A
* Sub Process a
* Sub Process b
* Sub Process c
* Process B
* Sub Process a
* Sub Process b
* Sub Process c
* Process C
* Sub Process a
* Sub Process b
* Sub Process c
* Strategy 2
etc.
This is how you can create a plan to execute a strategy based on our 3x3 Model. Each element should have 4 things:
1. A person responsible for the task
2. A time and date the process or task needs to be completed to ensure the strategy does not go out longer than 12 months. we are working with shot term initiatives.
3. Performance measures. You need to see how things are progressing daily or weekly to ensure things stay on course.
4. Incentives. If an employee hits the target or goal they need to be rewarded.
Get out and implement the strategy and do not delay. Remember, if you do what you have always done, you will get what you have always gotten.
To greater success and please feel free to write in with you success stories.
Friday, January 30, 2009
“Feedback is the breakfast of champions.”
Mr. Ken Blanchard could not be more correct. The purpose for getting feedback is to find out what stakeholders (stakeholders refer to customers, employees, investors, etc...) really think about your business. Getting feedback, especially negative feedback can be tough to swallow but it can also help to change your business for the better. Feedback does not always give you the high five, pat on your back that says you are wonderful. Sometimes feedback gives you the realty smack in the face that most business owners need from time to time. No one likes to hear that their business is not doing what we set out to do but it can provide tremendous insight as to what may need to change.
Feedback can be as simple as asking your staff what they thought of the new format or as complex as surveying the public to find out if they have ever heard of you. We refer to feedback as “The Pulse” of your business. We want to get a feel for what is really happening at your company. This way we can ONLY get better! Feedback can be done in many format but we prefer surveys. Surveys can be done in multiple formats such as the following: email, mail, mail with paid return postage, in-person, phone, or newsletters.
The main place to start this feedback process is with your current customers. Immediately you can get into their minds and find out:
Are they satisfied with our product or service
What other services or products could I offer that they may be interested in
How is our customer service
Is our store user-friendly
Do they know we have a website
For example, let’s say that you are a hair stylist who wants to improve your business. You are nervous but you want to get feedback from your customer base. You start by surveying customers who come in to get services and you perform the survey with a clipboard and pen. You find out the following:
90% of the customers want reminder calls the day before their appointments
25% of the customers would like to see you offer hours on Sunday
80% want you to offer more services such as waxing
So you take this new information and start to make changes to see how this would impact your business. You start by implementing reminder calls and you immediately notice that your appointment show ratio (who shows up for an appointment vs. who does not) is much higher than normal.
You decided to ignore the Sunday hours because it was only 25% and the other 75% thought the hours were fine. You also start doing some research into adding other services such as the waxing. All this information was gained from your current customers who are telling you what would make their experience better, what you could change, and what you are doing right that they are happy with. This information is free and has a major impact on your business. It is easy…yet most small business owners never get customer feedback.
Surveying our customers is a great form of quality control for our products, services, employees, and procedures. As Michael J. Gelb states, “Champions know that success is inevitable; that there is no such thing as failure, only feedback. They know that the best way to forecast the future is to create it.”
Good Luck! Stay the course, your business depends on it!
Feedback can be as simple as asking your staff what they thought of the new format or as complex as surveying the public to find out if they have ever heard of you. We refer to feedback as “The Pulse” of your business. We want to get a feel for what is really happening at your company. This way we can ONLY get better! Feedback can be done in many format but we prefer surveys. Surveys can be done in multiple formats such as the following: email, mail, mail with paid return postage, in-person, phone, or newsletters.
The main place to start this feedback process is with your current customers. Immediately you can get into their minds and find out:
Are they satisfied with our product or service
What other services or products could I offer that they may be interested in
How is our customer service
Is our store user-friendly
Do they know we have a website
For example, let’s say that you are a hair stylist who wants to improve your business. You are nervous but you want to get feedback from your customer base. You start by surveying customers who come in to get services and you perform the survey with a clipboard and pen. You find out the following:
90% of the customers want reminder calls the day before their appointments
25% of the customers would like to see you offer hours on Sunday
80% want you to offer more services such as waxing
So you take this new information and start to make changes to see how this would impact your business. You start by implementing reminder calls and you immediately notice that your appointment show ratio (who shows up for an appointment vs. who does not) is much higher than normal.
You decided to ignore the Sunday hours because it was only 25% and the other 75% thought the hours were fine. You also start doing some research into adding other services such as the waxing. All this information was gained from your current customers who are telling you what would make their experience better, what you could change, and what you are doing right that they are happy with. This information is free and has a major impact on your business. It is easy…yet most small business owners never get customer feedback.
Surveying our customers is a great form of quality control for our products, services, employees, and procedures. As Michael J. Gelb states, “Champions know that success is inevitable; that there is no such thing as failure, only feedback. They know that the best way to forecast the future is to create it.”
Good Luck! Stay the course, your business depends on it!
Friday, January 23, 2009
Management - A Great Challenge
It is time to make management a positive word. Employee's love a great manager because it makes their job a more pleasant and inspiring part of their life. It is difficult to be a great manager. It is difficult to be a great manager. That was worth repeating to drive home the point that if you want to be your best you will need to commit to delivering your best.
Easier said then done. We can help with the following tips:
1. Lead by example. Yes you are the boss, but employee's will not respect you just because you bark orders. Respect must be earned.
2. Commit to following through on your word. This may be as simple as telling an employee you will meet with them at a specific time or as involved as forming a new partnership. People want to do business and be around those that honor their word and deliver.
3. Manage your time. As a manager you will have specific deliverables that lead to the success of your company or how you are measured and there are two helpful hints for making your work load more manageable: 1. Delegate - get staff and others around you-working for you 2. Do not over commit your time - you do not have unlimited time in your day so understand and know your capacity and do not be afraid to say "no I can not take on that task at this time".
4. Remove emotion from your decision making. Get statistical performance measures in place to evaluate how your employee's are doing. Be careful here because it may be your fault as a manager if your employee's are not doing well with their performance. Coaching may be required and should be exhausted before termination.
5. Have fun. Enjoy what you do and bring a positive attitude. You will be amazed at how others will feed off that.
There is no secret method to being a great manager, but the 5 things mentioned above are very effective. Be create and put your employee's ahead of yourself and it will pay dividends.
The Octopus Solution
Easier said then done. We can help with the following tips:
1. Lead by example. Yes you are the boss, but employee's will not respect you just because you bark orders. Respect must be earned.
2. Commit to following through on your word. This may be as simple as telling an employee you will meet with them at a specific time or as involved as forming a new partnership. People want to do business and be around those that honor their word and deliver.
3. Manage your time. As a manager you will have specific deliverables that lead to the success of your company or how you are measured and there are two helpful hints for making your work load more manageable: 1. Delegate - get staff and others around you-working for you 2. Do not over commit your time - you do not have unlimited time in your day so understand and know your capacity and do not be afraid to say "no I can not take on that task at this time".
4. Remove emotion from your decision making. Get statistical performance measures in place to evaluate how your employee's are doing. Be careful here because it may be your fault as a manager if your employee's are not doing well with their performance. Coaching may be required and should be exhausted before termination.
5. Have fun. Enjoy what you do and bring a positive attitude. You will be amazed at how others will feed off that.
There is no secret method to being a great manager, but the 5 things mentioned above are very effective. Be create and put your employee's ahead of yourself and it will pay dividends.
The Octopus Solution
Subscribe to:
Posts (Atom)
