By: e900

Has your client list heard from you lately?

As we head into retail’s peak shopping season, the big question is “Will my clientele buy…again?”

Have you had any contact with them since last November or December? The people spending money are in your client list, right?

Client list?

If they aren’t on your client list (or you don’t have one), how would you tell them important news when they aren’t on your site or in your store?

Without an accurate list, the only way to attempt to reach them is by spending a ton of money on advertising that isn’t guaranteed to reach your existing clients.

While you may want to advertise anyway, the message you craft (note the use of the word “craft”) for your clientele about this news should be different than the message received by the general public (or your market, if you’re  business-to-business)

Think about it. How would you tell them these things?

  • We’re moving.
  • We moved.
  • We expanded our facilities.
  • We added a new location.
  • We closed an old location.
  • We’ve expanded into these great product lines that are perfect for you.
  • We got rid of a product line that wasn’t up to our standards.
  • We’ve hired someone who is an amazing subject matter expert on (whatever is important to your clientele).
  • We bought a competitor, now we have even more great locations and consistent product and services. For those who are clients of the competitor, here’s how we’re different, better, etc.

Your client list is an asset as much as a building or your checking account. If you aren’t building it, it’s difficult to keep a connection with your clientele. What will keep them from randomly going to someone else?

The medium you use to reach them doesn’t matter. Reaching them is what matters.

What do I say to them?

What’s changed at your store in the last year? What’s new in the last year?

If “Not much” is your first instinct in response, consider these questions:

  • What service, product, customer care, processes, payment methods, shipping, return (or other) policies have changed?
  • What are people buying this year that they weren’t buying last year? Why? Is the reason important to your clientele?
  • What isn’t selling this year that was last year? Why? Is the reason important to your clientele?
  • What have you learned in the last year that can benefit them?
  • Do you have new staff members that can help them?
  • What new equipment do you have that allows you to serve them faster or better?

Would those changes be jarring to someone who hasn’t been in your store in 10-12 months? Warn them in advance than surprise them when they walk in the door or move to your checkout page.

But Mark, I don’t have a store

That’s OK. The question is at least as important for you if all of your sales are done by phone, online or in a mobile storefront (think “food cart”).

If you sell on Etsy, on your own site, via Shopify or Facebook or at local events like the farmer’s market and ballgames – how will they remember you when it’s time to buy if they haven’t heard from you in months (or longer)?

What do I say?

I covered that above, but it’s important enough to discuss in general terms because you will eventually feel like you’ve run out of things to say.

At that point, the temptation will be to do one of these things:

  • Send something, any old thing, just to stay in touch.
  • Send ads when you can’t thing of anything else to say.
  • Send nothing.

All three are a bad idea, but the first two are the worst.

The first one often results in a shrinking client list because they aren’t receiving anything meaningful from you.

The second one requires care. If you are sending useful, actionable information often enough, then an occasional ad email or footer on your regular emails is OK. What you don’t want to do is forget why you built the list in the first place and start advertising 100% of the time.

The third one is not ideal, but it beats the other two.

The key is to communicate with meaningful, useful info. You may think you have nothing left to say, but the reality is that you’ve forgotten more about your business than they’ll ever know.

Given that… Be helpful when you contact them. It’ll pay off.

By: jakeliefer

Selling to everyone

Selling isn’t about the shine; it’s about what happens when the shine has worn off.

Will your (or your clients’) management will think positively of you a year from now because of an investment you championed?

They’d better.

Sales calls: How they react

What’s your reaction when a salesperson calls?

Are there any salespeople who stand out from the crowd that you don’t want to talk to? If you’re a salesperson and you don’t get sales calls, ask around your company about the nature of the sales calls your management receives. You could learn a lot about the calls you make.

With a few exceptions, here are the reasons why I react the way I do to your sales call:

  • I don’t know you, even though you act like I do.
  • I still have a bad feeling about our last deal and you act like that didn’t happen.
  • I don’t need anything right now, but I am willing to listen to new stuff – just in case – IF you make an appointment.
  • You don’t have an appointment. Message received = You don’t respect my schedule or my time.
  • I’m the wrong person or we’re have zero need.
  • Last time we talked, you gave a generic presentation suited to all businesses, rather than one fine tuned for my business needs.
  • Your last presentation was like drinking from a firehose.
  • The financials from our last discussion were generic and didn’t identify the payoff period.
  • Your assessment of labor cost savings (despite my objections/feedback) is inaccurate and/or you tend to ignore the additional costs incurred by implementing your solution, such as management costs.
  • You are out of touch with what’s going on with the product side of your business, such as open issues, deliverability delays, implementation costs / timelines.

Sales calls: How they want to react

What people would like to feel when you call is “This person is a champion for our company. They only call when there’s a likely win ready for me, or when I need to know about something new in the industry that might affect our business.

You get to that point in your clients’ minds in part by asking yourself questions like these:

Why am I qualified to propose these solutions?

Do I have testimonials not only for my solution and company, but for the job I’ve done helping my clients?

My prospect / client fits us well because…

We are a good fit for our prospect / client because…

Have you reviewed the alternatives to your solution? If so, what are the pros and cons of each and why is yours the best fit for us?

Is my company a market leader? Not just in revenue, but in vision.

Is my company cranking out the same old thing to milk their cash cow, or are we also thinking about what our clients upcoming needs and producing something to address them?

Can my solution, my company and my proposal help my clients solve problems without causing them to lose momentum?

Selling to everyone means selling to anyone

When you produce financials to sell your deal, you have to do the math and show your work, just like a high school test. Your proposal’s payback, implementation timeline and life cycle must reflect the client’s reality and your company’s ability to deliver.

The challenge is that every department views ROI differently. Today, you’re often selling to everyone in your client’s company.

A proposal citing the accounting and tax benefits will interest Accounting, but will resonate with Manufacturing / Shipping people who are concerned with process efficiency, throughput, MTBF and similar metrics?

Without buy in from everyone involved, your sale will be harder than it has to be.

Everyone involved“? The discussion that sells the CEO and CFO will differ from one that gets Manufacturing on board, much less the one that gives the warehouse manager the tools necessary to get their staff on board.

Why should you care about whether the warehouse is on board?

Because they can kill a purchase, even though you never hear it that way. No CEO will tell you that Margaret in Accounting killed the deal or that the guys in the shop / on the dock thought the solution made no sense.

A final question: “Have you produced in-context materials for the client’s departments that help the client’s management sell the proposal to each department on their own terms?

By: chorus

Does your business reality match theirs?

If you happen to pay attention to any of the business turnaround reality shows on TV (I see them on rare occasions), you’ll know that the pattern is the same for most of them – regardless of the type of business.

Typically, there are some quality and cleanliness problems, a management issue or two (or five),  a lack of performance that’s often attributable to training and consistent systems and processes, and last but not least, a lack of attention to the numbers.

In some rare cases, the businesses seem to be more of a hobby or an escape than an actual business – a situation that never escapes the consulting expert, and always infuriates them.

On the rare occasion when I see these shows, three things always come to mind:

  • How could they have let the situation get this bad?
  • How could they not see these obvious problems, much less fail to address them?
  • How do business owners who read my stuff feel when seeing these shows?

If you haven’t seen one of these shows, here are the things you should be looking for in your business’ reality.

Filth

One of the universal failures of the businesses in these shows is that they’re consistently filthy. Some are worse than others, with some downright unbelievable.

The reason this can get out of control in your business is the gradual creep of muck. You get used to a certain level of clean and it never again seems to be the kind of clean you’d want to see in a place you’d visit.

My wife and I visited a Cajun restaurant in the south earlier this year and found the dining room’s tile floor filthy. It was hard not to wonder if they simply got used to the dirt.

How are you doing on the filth factor?

Management Vacuum

Another consistency of the businesses profiled in these shows is a partial to total lack of management.

Sometimes, the problem is the owner(s) acting as if the business is a hobby (and often creating a massive distraction – much less money suck), while in others, it’s a failure to delegate and then use the time savings to actually manage the business. Managers in these businesses often have owner-instigated conflicts that prevent them from exerting any authority on day to day operations – making them ineffective at best.

Do any of these situations sound familiar? Ask your manager(s) about it. If you sense hesitation…

Systems and Processes

One of the most common problems in these businesses is a lack of order and consistency.  Many of them have no point of sale system or have nothing more than a cash register to balance at the end of the day.

In the episodes where food and drink are part of the business, food and drink costs are always out of control and highly variable from serving to serving and drink to drink.

They not only have inconsistent production (and thus inconsistent quality), but they also tend to have no measurement / tracking / purchasing controls in place. They have no idea how much they’re spending on food and drink or if they are even turning a profit.

Key to the resolution of these problems is creating systems to manage and track materials, sales and purchasing. Yes, I know… this seems like Doctor Obvious speaking, but you would be surprised at the times this has been missing from businesses in these shows (and in my personal observation).

Do you know how much that $8.95 meal costs your business? Don’t serve food or drink? You still have production costs of some kind.

Training

A tightly integrated issue with systems and processes is staff training. Inconsistency in these businesses starts with a lack of systems and processes and ends with inconsistent (or non-existent) training of the staff.

A universal component of the reality-show-fix is a combination of new systems, processes and staff training on those systems and processes.

Systems and processes combined with training breed consistency, which breeds quality.

Watching the numbers

Beyond cost of production numbers, a common issue for these reality show businesses is a disconnect between what the business is doing sales and cost-wise and what the owner(s) / manager(s) think the business is doing.

Do you know what your real numbers are?

What’s the reality at your business?

By: Ben Stephenson

Constraint and risk avoidance

How do you manage constraints and risks?

The two significantly impact your company’s ability to stay alive, much less grow.

Constraints appear in many different forms: people, equipment, capital, cash flow and mental bandwidth are just a few.

Being constrained by hardware actually makes it impossible to do the things that you want to do as a business.” – Amazon.com CTO Werner Vogels.

Computer server hardware and manufacturing gear like a CNC machine or 3-D printer speeds are constraints that could prevent you from keeping up with demand, much less expanding how much and how many different things you can deliver.

While Vogels’ comment is a little self-serving, it doesn’t make it any less accurate, nor does it change that Amazon Web Services’ (AWS) has commoditized server hardware and eliminated server capacity as a constraint.

Constraints are risks

If you look closely at them, constraints are risks because they limit your ability to grow, deliver and respond to client and market demands.

When you can’t address those demands, your business risks not only the loss of critical staff members and clients to competitors, but potentially deadly stagnation.

Stagnation creates problems with design, engineering, delivery, creativity and new product development, as well as staff retention and sales.

Scalability problems are a common symptom of hitting constraints. Are you dealing with increased delivery turnaround times? Do you have increasing customer service or professional / consulting services response times?

If you think about what prevents you from delivering 30% more product next quarter, it usually comes down to scalability-related constraints.

Raw material availability, production capacity, quality control, engineering/design and other staff and/or manufacturing limits can all cause you to hit a wall where you simply can’t produce more, creating a situation that feels like walking in quicksand. Increasing price pressures are a form of risk that can push those limitations even further.

These issues can be growing pains, but more often than not, they indicate too little time is being spent running the business.

Spend less time running the business?!?

Yes, absolutely.

When you spend too little time running the business, it’s often because you’re spending most of your time on production-related duties.

It may seem counter-intuitive for owners and senior managers to spend less time doing production-related work, but you simply cannot spend all time on these things without putting your management obligations at risk.

For example, it’s your job to make sure that the business can handle the increases in production that your marketing and sales efforts are working toward. Most managers can’t do that when they are solely focused on production.

You can’t lose sight of your primary obligation to manage risk and eliminate constraints in your business, any more than you can prioritize a nice tan over the health of your body’s circulatory system.

A visible constraint changes behavior

A good example of a visible and behavior-changing constraint can be seen in change at Apple.

One of the unique aspects of Apple new product delivery during the Jobs era was a lack of vaporware. Most tech companies have gotten into a habit of announcing a product months (or longer) before delivery, wasting the media attention these announcements create.

When Jobs took the Apple stage in June and September to announce new products, he frequently finished his pitch with an availability date of “Today.” This took advantage of the excitement his announcement created by allowing buyers to purchase and take delivery minutes after Jobs left the stage.

That significant advantage changed in the last two years at Apple, making them like everyone else.

Staff and mental bandwidth

Most businesses have a backlog of physical tasks, workload and services. This isn’t a bad thing, unless the backlog is so big that your ability to promise and meet delivery times has you months out.

Most clients can’t or won’t wait that long. For service-oriented businesses like tech businesses, mental bandwidth can create significant problems for delivery and deployment, as well as constraining the ability of management and design teams to spend time on “the next big thing”. Stagnation results.

These constraints point directly at your ability and willingness to delegate. You and your staff have to be able to focus on the tasks that they perform at levels no one else can reach.

The bandwidth question to ask is “Is this work that no one else can do?”

By: darkday

Big Data, Small Business

Last week, we talked about questions.

Questions tend to produce answers and more questions, which can result in a pile of stuff that overwhelms a small business.

As a business and client base scales, these questions produce data that you can use for guidance, decision making and to ask even better questions. Again, this can result in a pile of stuff (data, in this case) that overwhelms a small business.

A common reaction to this phenomena is to ignore the data, or to be so overwhelmed by its volume that you can’t discern anything from it. Entrepreneurs tend to want to do it all and if they can’t do that, doing part of it seems like a failure. It isn’t.

Identifying your big data

Let’s look at one of the questions from last week’s post and see which ones are likely to produce decision-making data.

How does this impact our key performance indicators? Examples: cost per lead / new client / sale / deployment, support load, lead time, etc.

This implies that you already know your cost per lead, cost to acquire a new client, cost per order/sale, cost per deployment, average lead time per product/service and the support/customer service load your products and services require. Not gut feel, but actual numbers.

Actual numbers are important because our gut is often right when it comes to strategic decisions and the like, but it seldom has a clue when it come to numbers like cost per lead – particularly if you’ve never watched it.

Lead cost, sources, media and campaigns

For example, what impacts cost of a lead at your business?

Lead source is a good place to look.

You might get leads from referrals (cheap and strong, warm leads), from local TV ads, from local newspaper ads, from different media in your education-based marketing, from the phone book (yes, some businesses still depend on those leads), from direct mail (likewise, still quite productive if used properly), from your website, mobile app, and so on.

Each of these have different creation and distribution costs. Each will produce a different lead flow, much less volume and types of client. While in the beginning, you’re likely to lump all of this data together, at some point you need to break them out by media and eventually, by campaign.

You’ll want to do that so that you can answer questions like this:

  • How do you know which media produces the most profitable clients?
  • How do you know which campaign (and on which media) produces what number and type/quality of client?
  • How do you know if a particular campaign works well on one media, but terribly on another?
  • How do you know which media (or campaign) tends to produce clients that are high maintenance to the point that you tend to fire them or not accept them in the first place?
  • How do you know which media produces the best (however you define that) clients you have? Is there a specific type of campaign that does this?

From time to time, an owner will tell me that their businesses doesn’t do any marketing so this kind of thing doesn’t help their business. If that’s really true, you’ll usually have referral sources that produce more and better leads than referrers do.

Would it be helpful to know who is sending you the best referrals?You probably have a gut feel on this, but are you sure that it’s accurate?

Thinking back on those questions

Given the detail on the one question of cost per lead, you can see how this can become overwhelming in a hurry. Don’t fall victim to that. Take it a step at a time.

You may start with another metric. Cost per lead is important for almost everyone, but it isn’t always the best place to start.

When you ask questions like “How did the pilot program go?” – it might provoke follow up questions about the data collected during that pilot which would support the “How did it go?” question.

If those answers aren’t backed with data, then that might provoke you to add data collection to your pilot projects in the future. This will take more time but it will produce better answers that don’t depend on gut feel or a need to be right.

Better answers are what we’re looking for.

By: Wonderlane

Ask great questions

I’m always looking for better questions to ask.

Good questions educate me about a situation or a mindset someone is in and help me understand where they’re coming from.

Great questions can open the mind of the person you ask the question of. They tend to create discussions that create slight momentum shifts toward changes previously considered “impossible”,  “too costly” or in conflict with existing thoughts, processes and mindsets that are considered sacrosanct.

Asking great questions without belittling or embarrassing the person being asked is an essential skill whether you’re a journalist, salesperson, manager or business owner. Journalists who ask a mix of good and great questions not only get good answers from the podium, but also provoke the listener or viewer to think hard about their position and what formed it.

I suspect you can think of a few questions of that nature related to the social and political issues of the day. What I would encourage is considering what good and great questions you should be asking your staff, your clients and yourself.

Here are some of the useful questions I’ve collected over the years:

  • Why? (often asked repeatedly)
  • Why not?
  • So? (Be careful, this can come off as a bit rude)
  • What if our belief / prediction / estimate is wrong?
  • If we suspend our tightly held opinions for a moment, what else becomes possible?
  • How can I help?
  • What can I eliminate, add, accelerate, decelerate, start or stop that will help?
  • Help me understand.
  • What’s the biggest risk in doing this?
  • What’s the biggest risk in not doing this? This often works better than the prior question because most of us easily identify “Why we can’t / shouldn’t do this” items.
  • If this fails, what is plan B?
  • Why does that matter? This tends to provoke different responses than “Why?” by digging a little deeper into the Why.
  • What does this accomplish?
  • If this works, what’s the next step?
  • If this fails, is that OK?
  • How does this add value to the things we find important?
  • Can you give me a bit more detail on how you got there? Good for digging deeper on an idea or analysis.
  • How will this impact our clients’ ability to deliver what their clients need and want?
  • If this is wildly successful, are we as a company structured to handle that kind of success?
  • Is this designed to handle 10 times the input, output or clients we currently expect if we provide the necessary infrastructure to support that growth?
  • And that’s important because? (often repeated)
  • What challenges must be overcome to pull this off?
  • Can we talk about how we’ll deal with those challenges?
  • How does this impact our key performance indicators? Examples: cost per lead / new client / sale / deployment, support load, lead time, etc.
  • What opportunities does this provide to our partners?
  • Help me understand how this strengthens our core business.
  • Is this in conflict with our values?
  • How does this support our values?
  • How did the pilot program go?
  • What did our clients say about it?
  • What about this is really important to you, your crew and our clients?
  • What data will be used to monitor this project / activity? How will it be measured? Do we know what the decision points are for that data? How were those points determined?
  • Do you have what you need to do this?
  • How can we communicate this effectively to clients and internally?
  • How does this drive our “one number”? Your number might be webinar views / month, the number of after hours service calls, free trials / month, or average days between purchases. A car lot might see a visit to the lot with a spouse as a leading indicator.
  • What are your biggest barriers to success? What’s the plan to deal with them?
  • Who isn’t “on board” with this? Why?
  • If we remove our egos / need to be “right” from this discussion, what changes?
  • What are the weaknesses in this plan? Do you need help with them?
  • Who are your strongest leaders and how are you developing them to handle more responsibility?
  • What are you doing to attract new talent?
  • What expectations does this set?  How will we manage them?
  • What are you doing to identify and develop both new and existing leaders on your staff?

What good and great questions do you ask?

By: ImagineCup

ROI: Why they don’t take your call

These days, it isn’t about the shine; it’s about what happens when the shine wears off.

Will your business owner clients think positively of you a year from now because of an investment you championed? They’d better. Without buy in from everyone involved, resistance is the best you can expect the next time you visit.

As for this time – If you can’t explain to a random person in the lunch room or the warehouse why their employer should buy your stuff, it’s going to get picked to shreds.

ROI and the Why-To-Buy

The key to being successful is establishing Why-to-Buy in the context of each involved group. The discussion that sells the owner will differ quite a bit from the one that gets the warehouse on board, much less the one that gives the warehouse manager the tools necessary to get their staff on board.

When new purchase discussions do get down to talking about numbers, the ROI discussed is sometimes legitimately unproven and is frequently presented in a way that makes ROI impossible to prove, much less disprove. That’s a fast track to a “no sale”.

What’s your reaction to sales calls?

Ask a few business owners about sales calls. You’ll get a common list of “Why I don’t want to talk to you, sales dude.

  • I don’t know you, even though you act like I do.
  • I still have a bad feeling about our last deal.
  • I don’t need anything right now, but I am willing to listen to new stuff just in case, but you need to make an appointment.
  • You have no appointment.
  • I’m the wrong person.

The last time I had an office on a public street, the front door had a sign that invited two types of salespeople in (Girl Scouts, Boy Scouts) and provided the rest with instructions and a number to call for an appointment.

In seven years, one salesperson called that number to make an appointment. The rest wasted their time because they didn’t respect our time enough to make an appointment. You might think that an aggressive salesperson shouldn’t take no for an answer. When it concerned that office, that was the wrong choice.

Nice Presentation?

Another thing that I see and hear repeatedly is problems with a sales presentation.

These complaints include:

  • A one way conversation – like drinking from a firehose
  • Not customized based on knowledge of your needs
  • Generic financials that don’t identify a payoff period
  • Little consideration for your real situation
  • Inaccurate assessment of labor cost savings
  • Ignore additional costs and management requirements
  • Gaps between the presentation and delivered solution
  • Selling the invisible. Either things that don’t work or things that don’t yet exist – and won’t be delivered for months.

Consider whether your presentations exhibit any of these qualities.

What they want to experience

How would most business owners react when their favorite salesperson calls?

This person…

  • Only calls when there’s a win ready for the business owner to invest in.
  • Shows up with a checklist of qualifications that illustrate why the opportunity fits the business.
  • Shows up with testimonials from similar businesses – complete with contact information, so you’re welcome to call them.
  • Has clearly spent time thinking about why they and the opportunity fits the owner’s business.
  • Brings up alternatives and why they ruled them out.
  • Leads their market – not so much in sales as much as vision, crcitical because it carries with it influence and the reputation of a market leader.
  • Thinks about what challenges you face and what they can do to make it possible to overcome them.
  • Brings opportunities that you can implement  that without losing your existing momentum.

Getting buy-in

Think about how many times you’ve had to deal with the situations I described above – both good and bad. How many times have you done this to a prospect? How much trouble was it to make that deal happen, if it happened?

ROI grows as buy-in expands. Remember that everyone views ROI differently.  Next time, we’ll talk about strategies to involve everyone in that conversation so that the buy-in stretches from the main office to the warehouse dock.

When a business owner sees that sort of widespread buy-in, good outcomes are almost sure to follow.

By: State Farm

Save your bacon: Backup your stuff

Today was yet another one of those days that come far too often.

A day when someone tells me their computer crashed and they have no backups. For months.

This isn’t a computer at home that’s used for email, Facebook and maybe an occasional game. This computer is used to manage their customers’ technical data and no one has bothered to back it up. We’re talking several gigabytes of contact information, among other things.

The stumper for me is this: Despite the fact that a sizable portion of this company’s tens of millions in revenue depends on the data this software manages, they haven’t backed it up for months.

Computers can come and go – it’s the data that matters. Except for specialty units like servers and such, many of the computers that do what this one does could be replaced by new, much faster hardware for $300-$400. But none of that matters much if you don’t backup your business data.

Every time I think I should give clients a choice about backing up the data created in systems I create, one of these situations pops up to remind me that no choice is necessary.

I have to keep my clients’ best interest at heart *even when they don’t*.

It happens.

Know anyone whose dog chewed through a computer’s power cord? I do. Ever had the power fail while you were doing something important? Did it mess up your data? It will.

Ironically, I lost power a few hours after I wrote the outline for this piece.

Ever had a client call and tell you their computer was stolen and their backup media was sitting on top of the computer – and it’s gone too? I have. Don’t make me nag and wag my finger at you. Backup your stuff

Backup your stuff

Take your business data seriously. Yes, it’s one more thing to do, even though you can automate it – just be sure those automated backups really do work. Do it every week, if not every day for stuff that you truly cannot afford to lose. Don’t be that person who calls and says “…..and we haven’t backed up since…”

The second most important thing about backups is that you can restore them. Save a copy of the backup on a different device – not the same drive your data is on. If your backups are on the same hard drive as your data, you’re doing it wrong. If that drive dies, your backup dies with it.

At least once a month, try to restore on your backups to a different computer. If you can’t, you’re no better off than the businesses who don’t backup at all.

That electricity thing…

I’m a little NASA-ish when it comes to backup power systems. I have an APC SmartUPS uninterruptible power supply (UPS) with automatic voltage regulation (AVR) on every computer as well as the TV. Yes, I really do mean every computer.

While I rarely watch the tube, I don’t want to replace it if I don’t have to. The UPS units are why I have servers that still run after 10 years.

Computers like stable electricity. They, like your data, are an asset. Depending on what type of computer you use, you might be able to replace it for a couple of hundred dollars – but you can’t replace the data.

You can’t get the time back that you’ll waste replacing hardware, reinstalling software, reconfiguring your network and finally, re-keying your data – if you have it.

A $200-300 UPS will pay for itself with the first outage. Having even two minutes to close files and shut things down normally before firing off an email saying “losing power” etc is worth every penny vs. having it all shut down in a millisecond with no notice, damaging data as it goes down.

If and when electricity spikes or failures cream your machine or your data, there is rarely anything your computer person can do to make things right. Quite often, it’s time to replace the computer and start over.

Sound like fun? It isn’t. Save your bacon. Backup your data. Test your backups by restoring them to a different machine. Sleep better at night.

Worth saying twice: I have to keep my clients’ best interest at heart *even when they don’t*.

By: THOR

What are your compelling reasons?

This past week, I’ve had several conversations revolving around why people don’t buy, why people stop buying, how we can get them to use what they bought and how we can get them to switch to our product instead of a competitor’s.

These conversations all have the same foundation: Giving people a compelling reason to change.

Whether we’re talking about buying, changing what they use, or using what they’ve bought, people need compelling reasons to change what they’re doing – even if they’re not doing anything.

Without compelling reasons – buying and implementing is much harder

It seems obvious that making it easier to buy is important, yet some businesses do their best to make it hard to give them your money.

However, buying isn’t the only obstacle to overcome. That’s why I’ve told the software setup story as many times as anyone would listen.

Selling them is one thing, getting them to use, adopt, implement it is quite another – and in fact, it’s more important than the sale over the long term.

If you don’t care what they do after they buy your stuff, it’s an indication that your business model is broken, even if you’re selling that stuff like crazy right now. Someday, that will change. When it does, how will your current business model work?

If you aren’t focusing on making sure they implement what they buy, your business model might not be broken, but your management of it is. You wouldn’t plant a crop and never watering or weed it, so why would you make a sale and then make no effort to cultivate the use of what you sold them?

That’s what the software setup story addresses and as you can read, I’ve been there.

What’s their point of view?

One of the things that fails business owners most often is assuming that their clientele is just like them. To be sure, there some cases where that’s true, but in others – it’s simply wrong.

The danger in this is that people buy, implement and change things for reasons who may not have considered, or for reasons that are meaningless to you. If that reason is the primary driver in decision making for your market and you miss it because their reason means nothing to you, closing a sale could be quite an uphill climb.

Even if you’re shy, you have to ask questions.

What are the obstacles to change? In many cases, they might want to change but think they don’t have the time to retrain their people, adjust their internal business processes and deal with yet another change. Solving that requires your value proposition to be clear, compelling and long-lasting.

What are the real reasons they might change? What truly causes the pain they feel? What keeps them up at night? What makes them worry about their future? Why is changing worth it at all if the outcome is the same? Same reports, same Excel spreadsheets, same profit?

If you don’t know the answers to these questions, you’re going to struggle to sell to them even if you have exactly what they need and want to take away their pain.

I don’t sell things that make the pain go away

If you aren’t making someone’s business pain go away, your clients are probably some portion of the general public. You might want someone to buy your cosmetics, or perhaps you’d like them to give your dry cleaners a chance vs. them continuing to use the one they use now.

Think about the risk people take when they change from Maybelline to Bare Minerals or from One-Hour-Martinizing to Joe’s Hometown Cleaners.

How do you currently communicate that trying your stuff is so easy and so risk free that if it doesn’t work out, they lose nothing?

Once you’ve done a great job of taking risk off their plate, you still have the task of proving the value of switching.  How are you doing that these days? Put yourself in their place.

Imagine a bank asks you to switch to their bank from the one you currently use – the one where your direct deposit goes and where your bill pay stuff is all setup and working smoothly.

Or consider switching from Windows to Mac or iPhone to Android.

Now you understand how they feel when you ask them to switch.

 

 

By: Pete

Earning Return Business, Part Four: Confidence

In our last three conversations about earning return business, we tap danced around something that is at the core of getting people to repeatedly come back to your business without a second thought of going somewhere else – Confidence.

Confidence is personal

As their confidence rises, people have this interesting way of insisting that others use their go-to business. You’ve probably had this happen to you. You’ll mention that you need a new dentist, or are going to buy a truck, put your family up at a local B & B, or want to get a fence built and someone you know will be positively rabid in their insistence that you use their favorite business for that purchase.

Some take it very personally. If you choose a business other than the one they recommended and have a less than ideal experience, you’re likely to hear about it until you share your good experience with their favorite vendor the next time you have that need.

This happens for several reasons:

  • They feel an obligation to you as a friend or family member and want you to have a good experience. In short, they want to do something nice for you.
  • They want that business to stick around, so the more people they send to the business, the better.
  • When a business knows you are sending them clients, they tend to treat you a little bit differently. We all enjoy that feeling of being treated a little bit special, much like the response Norm hears when he walks into Cheers.

Don’t underestimate that last one. Loyalty of this nature is easy to build with the right kind of attention and is invaluable.

Building loyalty with pizza

My wife and I often have a dinner date night on Friday and more often than not, we’ll find ourselves having pizza. There’s a lot of good pizza where we live, so the choice isn’t easy.

Despite all the great choices, we more often than not end up at a restaurant called “The Back Room”, mostly because of barkeep Zak. When Zak was young, he swam with our boys during summer swim league. Yet that history isn’t why we go there.

After a long work week, we usually sit in the TV lounge area at the end of the Back Room’s bar. Because we’ve been there enough times, Zak automatically brings us one of the rotators he’s sure we’ll like (and he takes the time to tell us about it) after ordering our favorite pizza (which isn’t on the menu) and salads – never forgetting our preferred substitutions from prior visits.

Zak has learned that we’re creatures of habit when we come to the Back Room and we’ve learned to have confidence that he will take care of us and remember what we like.

Earning return business via confidence

The more confidence clients have in you and your company’s ability to deliver what they want, when they want it, at the quality level they’ve paid for – the more likely it is they’ll keep coming back.

Confidence comes from a number of different places, but at its root, it’s about your clients’ peace of mind and friction-free experience.

Whether they’re  good or bad, I’ll bet you can think of little things that happened during recent interaction with businesses that affected your confidence in them. The trick is figuring out what those little things are for your business and your clientele.

If you’re looking for ideas on how to instill that peace of mind, here’s a few examples:

  • A Realtor who provides a refrigerator checklist to her clients to prove her mettle by listing in advance the things that she may have to handle for the clients during a home transaction. This sends the confidence-building message “they will not surprise us”.
  • A software company that documents the minute details of their in-house source management, build, testing and deployment process for their clients, raising confidence in the quality of releases that are publicly available to them.
  • Once a rarity, now many restaurants frame their city/county health inspection for all clients to see. Ever see a framed “C” or “D” grade?
  • “Pre-owned” certifications for cars that indicate what has been checked prior to putting the car on the market.
  • Banks that don’t have a deposit cutoff at 3:00 PM.

To a good business, these things seem obvious. No matter how obvious, the key is taking the next step.

How do you build your clients’ confidence?