Posted by sherpabizdev on July 12, 2010 under Business Growth | 
Not only can inspiring your customers to buy from you more often reward you with higher profits, it can also translate to more predictable income. Here are just a few tips for compelling your clients or customers to come back more frequently.
- A time-limited incentive — ever get a pizza delivered? What is attached to the box? Usually, you will find both a menu and a coupon to buy your NEXT pizza. They coupon, of course, isn’t valid forever — they put an expiration date on it. So you haven’t even eaten the pizza you just ordered, and they are already planting the seed for your next purchase! How can you apply this idea to your business?
- A loyalty program — the above strategy works great for many types of businesses (you will have to put your own twist on it) but your client is probably inundated with offers from your competitors as well. How should our pizza shop combat coupon overload? Reward loyalty. In its simplest form all they would have to do is offer a free pizza for every X number ordered (“buy 9 and the 10th is free!”). Now when holding coupons from two different pizza places, our shop owner’s clients are likely to come back again and again because their loyalty is rewarded.
- Verify the benefit of the last purchase — you probably hear it all the time, the key is in the follow up. But how can you call again without being a nuisance? Well your first follow up call should be to verify that your client is truly receiving the benefit of your product or service. Delivering the computer or painting someone’s living room is not the end. WHY did they want your product or service? After some time has passed, pick up the phone and find out if they got what they wanted. Are they now more productive with the faster computer? Do they feel better about inviting guests to their home because of their great-looking living room? Follow up to make sure your clients are truly realizing the benefits of their purchase, and you’ll likely stir up more sales.
- Subscription or membership — would your clients benefit from an ongoing service from your business? What if you could stop chasing them to make additional sales and instead have regular revenue on a monthly or quarterly basis that you could count on? List the kinds of ways your product or service could be used regularly, then look around you for subscription ideas. They are everywhere: wine clubs, retainer-based consulting services, maintenance services, product replenishment, etc.
These are just a few ideas to get you started. The goal? Strengthening your relationships with your best clients, while delivering more value and receiving more business in the process. Additional ideas? Please share!
Posted by AndyM on March 16, 2010 under Business Growth |
During my seven years of leading and managing a national sales organization, my team and I often talked about wanting an “excuse” to call on a prospect or a customer. As a sales person one often feel like a nuisance — like you are looking to take more than to give. I had a flashback recently when working with one of my clients — we needed to “tee up” situations that would allow my client’s sales rep to touch base with current clients.
What did we do? We created a simple, but valuable, promotion that we plan to send out via email. I signed up my client with Constant Contact so we can do it quickly, make it attractive looking, and monitor our results (how many people opened the email, how many clicked through to visit the web site, etc.). Once that email goes out, the sales representative on my client’s team will have a reason to call — just to follow up on the promotion their customers should have all seen in their emails.
It may seem like such a simple concept — a little mundane, in fact, in this age of complex marketing programs. All she will do is call each of the people who received the promotion via email to:
- Make sure they noticed it (it’s easy to overlook emails these days isn’t it?)
- Ask them to either open it up, or send them another copy if they can’t find it
- Explain a few details and ask if they have any questions
Who knows where the conversation will go from there, but this little two-step plan accomplishes a few things:
- It communicates that my client doesn’t just blast messages at their clients and prospects. By simply following up, they are making it clear that the messages they send have useful information. They wouldn’t be calling to confirm receipt if they didn’t feel so!
- Increases the likelihood that future messages will be noticed. It’s so easy to become numb to the emails you receive! Once the receiver makes the stronger connection between the message and who the sender really is, future emails will get more attention. Even when my client merely leaves a voice mail that is never returned, the exercise will be worth it.
- Oh ya, it will increase immediate results. If you’ve created a good offer in the first place, you’ll get more people to pay attention and take advantage if you follow up with a call.
I urge you to not overlook the simple things when designing your next “system” for increasing profits through more effective marketing and selling.
More information about Constant Contact
As a business partner, I offer business owners who sign up through me (simply by using either link in this post) the same price as available by signing up directly. I ALSO provide a free 2-hour email marketing strategy consultation. If you’ve been kicking around the idea of email marketing, it may be time to take action! Let me help you get started.
Posted by AndyM on February 11, 2010 under Business Growth |
If you are in sales, you have probably heard that statement more times than you would like to remember — “I’ll have to think about it.” When that phrase falls on your ears, you just go ahead and translate it to “no” in your head, don’t you(?) I know I can react that way when it happens. But of course you feel compelled to follow up with that prospect, to at least show that you are organized and diligent. Plus, aren’t people like me always telling you that thorough follow up is essential? Ugh, it feels like a trap at times — damned if you do and damned if you don’t.
Well here is a thought to help you strike the right balance. First say this to yourself — “my time is valuable and my [product or service] is valuable too.” This, of course, assumes that the prospect you are talking with is a good fit for realizing the value you promise. Okay, hold onto that mindset. You’ll need that in the front of your mind as you take this uncomfortable path…
- When you get that reaction — “I’ll have to think about it” – ask your prospect if they need any more information to make a decision. Anything at all. Have you educated them sufficiently about how you could help, or what your product is capable of doing? Have you helped them understand their problem more thoroughly, so as to determine the importance of fixing it?
- If they raise any issues, then there is your task. Fill in any blanks, answer any questions, schedule the next meeting to include the additional players that will participate — all so they are fully armed to make a decision.
- When you’ve reached the end of that process, and they still need time to think about it, let them know that you will not be following up to check on their progress. Because either they are not interested, and they are just trying to be polite, or they truly need some time to ponder their options to come to a conclusion. Either way, your job is done. You will save yourself a whole lot of time worrying, wondering, checking on their progress — and you will avoid becoming a nuisance.
You’re wondering if you just read that right. I recommended that you have a direct conversation with a prospect to let them know that you will not waste your time, nor theirs, with endless follow up and checking. O.k., so they like you for that. No one wants a pushy sales person. Plus, you can tell when they agree to a date for a follow up call, it’s just a game, right? “O.k., give me a try Thursday…ya, that will work. Right, 1:30…perfect…” Come on, admit it. How many times out of 10 do they really want that follow up call…2?
O.k., so we like this strategy because you get to avoid being a nag. So are you going to just clam up and hope for the phone to ring? Of course not!!! The fact that you want them to come to a decision, and the ball is in their court, is out there. You don’t need to remind them — they know you want the sale. Get busy earning it! Use the law of reciprocity! Instead of checking on them, help them accomplish something valuable. Make introductions, shoot over some tips for increasing their business.
You would have spent time checking on them anyway, use the same energy to truly add value. You’ll get the sale and you’ll have a client for life. Check out our last post for more inspiration Sales “Venture Capital” Style.
Next post, how to have that sales conversation so you get the “I’ll have to think about it” reaction less and less…
Posted by AndyM on January 26, 2010 under Business Growth |
Ever feel like a nuisance when you follow up with your prospects? It’s a frustrating place to be, isn’t it. You wish you had something new to say or some compelling reason for them to budge. When you don’t, it often leads to not making the call at all. If you don’t need the work, then it’s fine to leave the issue alone. If you need the business, then you are better off placing your (lame) call because there is always the chance that they fully intend to do business with you, they just need a reminder.
If you want to take your sales results to another level though, consider this notion. You’re not a sales person, you are a venture capitalist. I’m not suggesting that you impersonate a VC in the hopes that you can trick your prospect into talking with you. I mean you would benefit from taking on that philosophy.
A Closer Look
VCs (especially those involved with early-stage businesses) expect the majority of the companies they invest in to either fail completely or fall far short of expectations. Does this sound a little bit like your pipeline of business? If you expect MOST of your prospects to close, then you’ve got wishful thinking or an amazing close process that I need to learn about 
. Sales is based upon the assumption that only a fraction of the opportunities you pursue will succeed – just like the portfolio of companies that a VC selects.
O.k., so we’ve established one similarity between sales people and venture capitalists — each pursues an array of opportunities knowing full-well that only a fraction will result in “success.” Scratch below the surface and we immediately find an important difference between how VCs and sales people operate. VCs invest in the companies in their portfolio. Not just money, but time and resources as well. They join in the fight to make each company succeed. In the end, they have to be shrewd and cut their losses, invest more in the “winners,” etc. But along the way they are busy trying to help each company reach its goals.
How do you think they would do if all they did was call around to each company in their portfolio on a regular basis to ask “have you made us money yet, how is it going?” Pretty weak, right. So (as a sales person or business owner) how helpful are you when you call around to your active prospects and keep asking, “…have you made a decision yet? Have you talked with your boss or gotten approval from your CFO yet?” Pretty weak right.
So remember, I’m talking figuratively here. I’m not proposing that you have to invest hard money in your prospects. But how can you benefit from that perspective? What would a venture capitalist do? Well, he or she would treat the list of active opportunities as a rolling portfolio of “investments.” In each case he would determine what is needed to make them successful. So stop there. Note the *them*.
Here is where sales people can lose sight. Do you want business from your prospects? INVEST in them to help them realize the benefits you know they want. Can you introduce them to someone in your network to help them get further along in their project or important aspect of their business? Can you point out a resource for promoting their business that they may not be familiar with? Can you give them a taste of the service you provide with a focus on delivering tangible benefits?
Reciprocity is a powerful force. Sure giving your prospects a gift or treating them to box seats at the A’s game may be appropriate at times and make them feel indebted to you. But invest your energies into helping them reach their business goals and you will set yourself apart, and create more winners in your “portfolio” in the process!
Posted by AndyM on November 5, 2009 under Business Growth |
Why is this the “last” step? Well, it is the place in your marketing where you are most likely writing checks, PLUS you have to wait the longest to realize the results. It is best to maximize the benefit of generating new leads by having your “customer-maximizing” house in order.
I’ve put these two topics together because generating leads and converting them are inextricably tied together — one step naturally leads to the next.
Components of your marketing strategy:
- A well-defined target: geographics (where they are), demographics (who they are), and psychographics (why the buy — the emotional appeals that relate to the benefit you can provide)
- Your Unique Comparative Advantage: a good description of the problem you solve or benefit you provide and how/why your product or service is uniquely capable of delivering on the solution your target audience needs (we have a formula for developing a powerful UCA)
- Contact methods: the “portfolio” of media you use to contact those in your target audience at the right time, given the benefit you deliver
- The message: an attention-getting and compelling message that exposes the pain — the deficit your prospect is experiencing because they lack your solution
- The offer: the natural, “no-brainer” step toward a solution for your client that you make easily available to them by simply contacting you.
- The follow-through: your multi-step plan to capture their contact information and nurture the initial interest into a burning desire to meet with you, test your product, order it, agree to your pilot program, etc.
Posted by AndyM on October 16, 2009 under Business Growth |
Often times a conversation with a business owner will start with this question – “can you help me get more leads?” The answer (of course!) is “YES,” but in following my own medicine, I never respond with an answer to that question. Why? Because I know that is not the real question that they want answered. It is not the need-behind-the-need — the true benefit they are seeking.
They, in fact, don’t really want more leads. Just like when your gas tank is empty, you may first think that you “want” more gas. But who “wants” gas? It sure doesn’t taste good, and I’ve never met anyone who liked to bathe in it. You don’t “want” gas, you “want” to get from location A to location B. There are many ways to get there – you could ride your bike, walk, get a ride from a friend, or think twice about your plan to go from A to B in the first place. Could you accomplish what you “want” with a phone call?
So back to our business owner. Trust me, they don’t “want” more leads. They want what they believe the leads will bring them — more revenue to pay/retain top staff, profit to bring home to their families, less stress, etc.
When I get the “can you help me get more leads” question, I usually respond with a few questions of my own:
- What are you doing to keep your current customers happy and returning to buy from you again and again?
- Do you have your current and past customers, as well as prospects, organized and segmented in a database so you know how to contact them, what they purchased, how often the purchase from you, when they last purchased and how much they spent?
- Do you have a system in place for keeping in touch with your customers to let them know about new products, improvements, changes or additions that might benefit them? How often do you contact them? When was the last time and why?
- What about referrals…do you have a proactive referral-generating system in place that produces measurable and predictable results time after time?
- When the next sale of your product or service is taking place, what steps do you have in your close process to make it attractive – downright compelling – for them to buy more or add different products and services to the order or contract?
- After that transaction, what are you doing to make it attractive for that customer to “come back” sooner than later? Is it possible to subscribe them to an ongoing service?
I think you get the point. Step 2 of the 4 Steps to a More Successful Business is “Maximize the Current.” Get the most from your existing customer relationships and the business that is happening as you speak. Five of the Seven Levers to Profit Growth are available to you in this step! Make use of them!
- Increase the number of transactions: present your customers with an offer to do business with you again, create a loyalty program, entice them to get a subscription.
- Increase the average transaction value: up-sell and cross-sell. It helps you customers and you.
- Increase your profit margin: as your business grows, you likely have more leverage with suppliers, may be buying in higher quantities, and may otherwise be able to realize the benefits of scale.
- Generate more referrals from customers: develop systematic ways to encourage customers to refer business to you – happily.
- Extend customer buying lifetime: for one, keep in touch. Surveys show that 85% of people who switch their purchasing allegiance due so simply because they felt their previous provider didn’t value their business!
Next week – step back, take a breath, and Set Your Marketing Strategy!
Posted by AndyM on April 8, 2009 under Business Growth |
We all have to take a little of our own medicine from time to time. Just as I advise people to keep tweaking, testing, and experimenting, I’ve got to do the same in my business. You may have noticed that my newsletter from March looks a whole lot like my newsletter from February, and pretty darn similar to my newsletter from September.
With the growth of micro-blogging (like on Twitter, for example), it’s also clear that brevity is valued. I’m going to try (really hard!) to shorten up my posts, focus on just one thing, and (maybe) do them a little more often than once per month.
I’m eager to hear your thoughts!
A Simple Formula for Getting the Most from Each Sale
Gaining a new customer is exhilarating, but it’s important to remember that your relationship is just beginning. You celebrate getting married, but does that guarantee the ongoing relationship that you’d like? Of course not.
Retaining customers over the long term, and maximizing the profit you generate as you go, is a HUGE subject, of course. And I just promised above that I’d be brief. So let’s just take a look at the honeymoon period — the first few weeks after the sale, usually. Here is a simple 3-step formula that is guaranteed to set you apart from 90% of your competitors.
- Verify that your customer is receiving the value you promised. Is the product functioning properly? Did the service you delivered exceed their expectations? Simply wait a little while after the sale and check to find out. You may need to have a staff member or even a 3rd party do this step to be sure you’re getting a straight answer, but it will be worth it.
- Thank them for their business. Don’t muddy the above step with a thank you, keep it for a separate communication (letter, email, phone call, etc.) AFTER you concluded step 1 and resolved any issues. Your customers have other options — showing them your sincere appreciation for their business is just smart. Have some fun with it by including movie tickets, a gift card, or even just a note signed by all the people on your team.
- Ask for referrals. Like I said, this process should easily set you apart from 90% of your competitors. If you do the above two steps, you’re likely to have a very satisfied (and even impressed) customer on your hands. Simply ask if any of their friends or relatives would also benefit from what you do. If you’d like to get more sophisticated, you can use postcards or even develop a formal referral incentive program. Whatever you do, don’t skip this step!
Follow this formula and watch your profits soar!
Posted by AndyM on February 12, 2009 under Business Growth |
I recently did competitive research for a client that exposes the most surprising (but remarkably common) marketing blunder. Sales people and business owners just don’t follow up. Whether it’s failing to even make a single attempt to contact a brand new lead, or failing to be persistent because someone has not initially been responsive. It just isn’t getting done.
If you’re cringing at the moment, feeling like I might be talking about you, then you REALLY need to read this month’s newsletter. If it sounds crazy to you, then you should still read it to make sure your follow-up is as good as you think it is .
So What Happened?
Ah, so you’re wondering what my research revealed. Well, it’s pretty simple. There is tremendous opportunity for my client to stand head and shoulders above the competition 
.
I contacted four businesses that are some of the top competitors in my client’s market. I went to each of their web sites and indicated that I may have a project that would require the help of a business like theirs, and I would like to learn more about pricing and their availability to do the job.
After that, I decided to sit back for a few days to just see what would play out. I let any calls go to voice mail.
The Results
- Of the four companies, only 2 called me within the first 24 hours
- The third company called me a little over 24 hours later and the fourth company has never called me (and it’s been over a week now)
- Of the three who at least tried to reach me, only one tried me multiple times within the first 3 days
- Even though my original method of contact was through their web sites (and I provided my email address in all cases), NONE of them sent me an email reply to my inquiry; they only called
You may be thinking that my research showed (in a small sample) that a high percentage of businesses actually followed up. It’s important to recognize that your follow-up plan could very well become your competitive advantage — much more than a “checkbox” for you to mark off. What if I had gone away on an emergency business trip? What if I was laid up in bed with the flu or had laryngitis and just couldn’t talk?
Do you think if you represented to ONLY company that followed up with sincere, upbeat messages about your interest in learning more about my project and who had sent me some information via email to review that you would put yourself ahead of the pack? What if your price was just a bit higher than the others, but my impression was that you were just in a league by yourself, simply because of the way you handled the communication? Do you think I’d be willing to pay the premium? You bet!
What Do We Mean by “Follow Up”
I actually need a better phrase to express what this process entails. “Follow-up” conveys to me that there is some END, some CONCLUSION. I have this picture of a sales person using “follow-up” as a key point in the list of excuses for why a sale DIDN’T happen –”geez, I followed up, what else am I supposed to do?”
A better frame of mind to embrace is that “follow-up” is a constant activity with ALL of your contacts — prospects, active customers and former customers. You may use many different means, at varying frequencies, but ALL such contacts should be subject to a regular communication plan.
Think you shouldn’t bother keeping in touch with people that you know have moved out of your area? Don’t throw away those relationships so fast! It stands to reason that people who at one point lived within your business radius have friends or business associates that are there and are people you’d like to get to know. Right? Grab a copy of the local newspaper and send it off; send them a picture of your store or office after you’ve remodeled. Maybe it’s just once a year. Have some fun with it.
This is somewhat of an extreme case. But if I can find logic for why you ought to keep in touch with past customers that have MOVED AWAY, certainly keeping in touch with the ones that are still around is a MUST.
Don’t forget, if this is an area you would like to improve upon in your business (and find un-tapped profits in the process!), email me to receive my free report The Most Effective, Yet Most Overlooked, Marketing Strategy in Existence.
