Get one new client a day, week, month

It’s not unusual to talk to business owners who want to double their business, even if the discussion is a bit unfocused at first.

It’s far more unusual to find someone who wants grow their business by 1000%, IE: 10 times its current size. Some have said that growing a business by 10 times is easier than doubling it because of the changes it forces upon all aspects of the business. Easy probably isn’t the word, but it makes sense logically because you know you’d have to rethink every process from one end of the business to the other.

Doubling the sales of a business tends to result in doing things the same way, but doing them twice as often, or somehow doing twice as many of them. You may also want to consider hiring someone to do SEO (search engine optimization) With that in mind, the idea of doubling your business might leave you wondering where will the time come from or who will do the work. Reasonable questions, according to someone at kottongrammer.com/miami-seo. Even if that sort of growth seems possible, it might not seem reasonable, no matter how attractive it sounds or how confident you are that you could handle it.

While I’m not trying to talk you out of that kind of growth, and I’m confident that almost every business could use more clients, I know that not everyone is sure how they could make that happen, or how they’d handle the load if they did manage to double the business.

Instead of reaching for 10x or 2x, let’s keep things as simple as possible for now by starting with getting one new client in whatever timeframe makes sense for you.

Start with one

Keeping it simple… How would gaining one new client per day, week or month do for your business?

Perhaps your business isn’t structured in a way that one new client per day could happen, or perhaps you couldn’t deal with 30 new clients a month. What about one new client per week? If your clients require lots of time and effort, perhaps you could only handle gaining one new client a month or even per quarter. What impact would result from gaining one new client per day, week, month or quarter? Do the math on whichever timeframe makes sense for you.

How often do your clients return? If you have 365 new clients a year from now, and you keep adding one every day, how does that change your business? Even if your typical client spends only $10 per purchase, one more per day is a step in the right direction, particularly as these new clients return.

Bring some context to “get one new client”

For a little daily context, maybe you get one more dinner reservation, one more kayak rental, one more room filled, one more table turn, one more styling appointment, or one more portrait setting per day. If you maintain this month-in, month-out, what’s that mean to your business? What are 30 more table turns, 30 more rentals or 30 more room-nights worth to your business per month?

For some weekly context, perhaps you get one more home to clean, one more weekly cabin rental (or one more rental week in the shoulder season, if you have such a thing), one more legal consultation, one more pack trip or one more bookkeeping session.

Naturally, you may wonder how you would get that one more client. One easy way: Think hard about how you’re getting them now. If your lead flow numbers vs your sales numbers tell you that there are leads you’re losing, not closing, or simply not ideal for – dig deeper. Examine each lead source, each media, each referral source. Where can you find one more? Repeat the process.

Why only one?

You might be asking why only one new client per day, week, month or quarter? Simple. If you can figure out what you have to do to gain only one in the timeframe that works for you, then the path should be clear to your long term sales goals. By consistently getting one more, you’ll know you can do it as well as how to handle the growth. Whether you do what it takes to do that one, five or ten times – the choice is yours.

One critical piece – it helps to know what’s working. Do more of what works and less of what doesn’t.

18 questions to increase sales

This week, I’ve been working on metrics because I can’t have my fingers in every pie at once – at least not once the number of pies grows beyond my ability to manage them all in my head at the same time. Even if you can do that, it’s very difficult to sense where changes are happening much less where trend directions are changing.

Some of this can be done by gut feel because you’re right in the middle of it, but sometimes gut feel will burn you because you filter what you’re experiencing through existing expectations. Thus the need for metrics – so that you don’t have to spin too many plates at once, assume too many things or make decisions based on too much gut feel.

Metrics are questions, too

Metrics are a form of question.

For example, a common metric for businesses with a web site is “page views”. A page view metric asks the question “How many people saw a specific page this month?”. When all of those page view metrics are combined, it becomes the question “How many people saw our website?”

Website metrics are pretty common and easier to collect than metrics from other media – which are often on you and your team to collect. The work to do that might seem painful, but you can learn a lot from it.

How many people called about the radio special you advertised on KXXX? How many people visited the store and mentioned the radio special you ran on KXXX?

These things are important so that you know whether to invest in marketing that item on KXXX vs. marketing something else on KXXX, vs. marketing anything at all on KXXX.

You would do the same for anything else marketing on any media, otherwise you’ll have nothing other than gut feel to help you make these decisions. Traditional media doesn’t often provide these metrics, because they can’t. Radio, TV and print newspapers can’t do that because they usually aren’t contacted by prospects seeking whatever you advertised. It’s tough to know if you aren’t part of the transaction process.

That doesn’t mean you shouldn’t track them.

The right questions help increase sales

Coming up with the right question can be a lot harder than not having the answers.  You have to be careful to ask open-ended questions designed to tell you what you don’t know, rather than asking questions designed to confirm your assumptions.

Where is the profit in your business that you haven’t yet found?

For most people, the answer probably lies in your existing customer base. The next question I’d ask you is how many of your customers are buying 100% of what they should be/can be buying from you?

How can your current customers help you find that profit?

The natural follow to the previous question.

To rephrase it, what percent of your customers are giving you all the business they could? Who are those customers? What actions will be necessary to either sell to the ones who aren’t buying everything you make, or determine the ones who won’t buy?

Once you’ve identified the ones who won’t buy, it’d be good to identify why they won’t and correlate that (if possible) with where they came from as a lead. Are the leads who buy some buy not all (or who buy once but not ongoing) leads who came from a certain type of media or a certain type of marketing campaign?

Are the ones whose initial purchase is different than the ones who do keep buying – and buy it all? Can that be solved by pursuing slightly different leads, or by changing marketing or the product / service?

Finally, can / should that gap be fixed? Does it matter if this group of clients aren’t recurring buyers, or that they don’t buy everything you offer?

Are you communicating with customers optimally at all touch points?

Are there touch points you aren’t thinking of?

I was chatting on Facebook with a reader earlier this week who owns a locksmith business. After our conversation, I wondered if there was an opportunity to get involved in home and/or commercial property sales – ie: lock / key / lockset changes that might be warranted when a property changes hands.  It’s an opportunity to get a new client if there are enough buyers who want locks changed at purchase time.

Does your business have secondary transaction opportunities like that?

What if you actually followed up?

Ducks In A Row

Does your business follow up with your clients and prospects like you should?

You should probably consider what “like you should” means, before deciding whether you follow up properly or not.

Having done that, let’s define “follow up” as continuing the conversation with that particular prospect or client, in exactly the context they are in with your business, in a timeframe that makes sense to the client.

This isn’t about you. It’s about them, where their interests lie, what needs they have right now where they are in the flow of things in their life and/or business. Not where you are.

Let that sink in – this is not about you, what your sales staff has on their mind today, where you are with the month’s cash flow, whether or not you’ve made your weekly nut, etc. Thing is, if you do this right, it’ll help you worry a whole lot less about that last one.

Figure out the right whens

If you’re trying to start doing this right, it would help to start with the basics – identifying when to follow up with your clients and prospects. I call these “touch points” (meaning when to reach out and get/keep in touch), but it might make it easier to think about if you view them as events in the timeline your clients and prospects follow as they meet you, become your client and continue down that path until they are no longer your client.

One more reminder, this is about the right time for them, not you.

Here are a few ideas for touch points:

  • Someone becomes a new lead by calling, emailing, filling out a web form, etc.
  • Someone clicks on a link in an email.
  • An existing lead contacted you for info.
  • A lead bought a new product or service.
  • A client bought a product or service for a second-nth time.
  • A client had an interaction with your service department.
  • A client paid a bill on time.
  • A client paid a bill late.
  • A client paid a bill late for the second/nth time.
  • A client fails to buy something on their normal purchase schedule that they used to buy from you on a regular basis.

Take a few minutes to consider what your touch points / events are. You may have a lot more than that, but I would be surprised to find that you had fewer.

Now what?

Let’s analyze the why behind a couple of these so that my comment “Thing is, if you do this right, it’ll help you worry a whole lot less about that last one” makes more sense.

Think about how things work in your business today.

If a client who usually buys something once a month doesn’t buy this month, are you aware of it?

If you aren’t, it’s possible for them to disappear and stop being a client without your knowledge. How many clients do you have that buy something every month? How many of them disappear each month? Do the math and figure out what that could be costing you.

That’s the possible return on investment of being able to follow up when this event happens.

If this purchase doesn’t happen and you know about it, then you can turn your service or sales team loose to make sure nothing is wrong or that conditions have changed for your client. Maybe they don’t need to continue buying that product or service anymore. So be it, but they may need something else. Or you may have had an unfortunate interaction with them.

Whatever the reason, knowing is a ton better than not knowing. You might find out that you will lose them and can’t do anything about it (changes in their needs, etc), but at least you’ll know.

One more example

If a client pays a bill late, do you grumble and add a service charge to their next bill without any conversation? Does the service charge get added automatically?

There are plenty of ways to talk to a client about a late payment without coming off like a jerk. Maybe they need different payment dates, a different payment method or they just missed the invoice somehow because someone was out sick.

Personal follow ups like these can keep a relationship going for years, rather than letting them sour because of a misunderstanding or lack of knowledge.

They really aren’t very good at marketing

NotVeryGoodAtMarketing

One of the most common marketing mistakes I see is focusing solely on new clients and doing so in a way that annoys everyone else who has (or had) a relationship with your business.

This quote from Facebook (above) about a New England newspaper’s Groupon deal is but one example.

The process

The process goes something like this:

There’s a discussion in the marketing team and/or with the senior management team (which may simply be you and you) that includes something like this:

We’re not getting enough new customers.

Well, let’s create a deal just for new customers and see if we can get some.

Of course, this means that existing customers can’t take advantage of the deal, and nor can any former customers.

For your existing customers, it’s annoying to know that there is a better deal for what you bought, but it isn’t available to you. To be sure, there might be other parts of the deal (free or discounted this or that to start), but the recurring part of the bill is still more than likely unobtainable for your current customers.

This makes them angry. Ditto for former customers who are thinking of returning.

Meanwhile back at the internet

Most businesses want as many customers as possible. Newspapers fall into that category, but this problem is far from limited to them. I’ve seen it from cable / internet /phone providers and many other businesses that sell products or services via subscription – and even some who don’t.

Innocent enough, but unless you have figured out a way to hide all of your marketing from former or current customers, you’re ignoring human nature. Your ability to “hide” your marketing is an illusion. People talk and they look on the internet. Your marketing is extremely difficult to hide. Even so, that’s very much the wrong problem to solve.

Here’s a secret – get them, keep them happy and keep delivering more value so they buy more. Add upper tier services so you can afford to deliver more value to those who want it.  Coupons come right off the top of your profit – that’s why you don’t want your existing customers to use them.

Meet your customers where they are

Every few years, I would call a local daily newspaper and ask if I could get a Sunday-only subscription.

Every few years, they would tell me that they “can’t do that”. This has happened in more than one place with more than one paper.

Tossing a Sunday paper in my driveway costs them almost nothing. There are almost certainly other subscribers on my road, so the paper delivery driver already goes by my house on Sunday. The incremental cost of that paper and its delivery is pretty close to zero.

Yet – they won’t sell me a Sunday only subscription.

Maybe it’s because…

  • Their billing systems can’t handle it – but I doubt it.
  • The system that bundles papers for the carrier every day can’t handle it – but I doubt it.
  • Their carrier isn’t intelligent or caring enough to make sure that I get a Sunday paper but no other papers – but I doubt it.

I think it’s a management and/or marketing choice that ignores Sales 101.

Sales 101

Sales 101 is “The reason to make a sale is to get a customer, not the other way around.”

This applies to all businesses, not just the ones we’re discussing today.

If this New England paper’s people are in the right frame of mind, they’re thinking “If we can get people to subscribe on Sunday, then they’ll see that our paper is so awesome that they will want a daily subscription – or at least, they will want the digital edition every day and the paper version on Sundays.

I suspect this isn’t what they’re thinking, but instead it’s something like “People only want the Sunday paper, so let’s make them buy it seven days a week to get what they really want.

To be sure – the latter is a legitimate concern about customer mindset, but it can be made irrelevant. Thinking further, why do they want only the Sunday paper? Is it there a way to deliver the desired content daily or at least, more often? Is it about the delivery mechanism? Would a digital subscription that included the Sunday paper in the driveway boost sales?

Are you asking these kinds of questions of YOUR business?

Six simple questions about your website

I received these questions in an email from Tony Robbins last year.

The premise was to ask if you could answer these questions without doing a bunch of research, much less if you could answer them at all.

  1. How many visitors come to your website per month?
  2. How many of those turn into sales?
  3. How many emails are you collecting per month through your website?
  4. How long has the site been up?
  5. How many emails are in your database that have been collected through your website?
  6. What are you doing to follow up with visitors and close sales?

Seems to me they’re as important now as they were in 1995, much less last year.

A lot of businesses pay attention to #1. Many pay attention to #2.

Number 3 and 5 get plenty of attention from some, not so much from others.

The Big One

Number 6 is the one that I see the least effort on across the board.

Are you assuming they’ll come back? Are you doing something to get them to come back? Are you doing something to keep them as a customer over the long term?

So many questions…

Rather than being overwhelmed by it all, deal with the lack of an answer one at a time – particularly if it requires work.

Having one answer is much better than having none.

How to cut down on refunds

Froggy
Creative Commons License photo credit: TeryKats

Do you have problems with too many sales turning into refunds? Or almost-sales turning into no-sales?

Do your demonstration projects frequently fail to reach the buying stage?

Does return-friendly Costco look like a tough return desk negotiator compared to you?

Do people frequently add things to their shopping cart while on your website but decide not to buy them and click away? The industry term is “cart abandonment”.

Do you sell software by offering a free trial and think “if only 10% more people bought”, you’d be doing a lot better?

Do you lose sales or have refunds from people you think should have been perfect for your product?

If you answered “Yes” to at least one of these questions, you need to take steps to cut down on lost sales and reduce refunds. In marketing parlance, you want your sales to be “stickier”.

Where to look

The simplest way to start working on this is to look at the sales you lost. If you don’t keep track of when refunds occurred (by date, for example) and what caused them – start doing so.

Assuming you have a firm date-driven return policy, are you getting most of your refunds just before the end of your refund policy period? You might assume that you can’t combat this, but you can. Better qualifying of leads/prospects will help, at least in situations where you have that sort of buying process. Costco doesn’t ask if you can afford a 46″ LED television or if it’ll fit in your apartment/office, but not everything is sold off the shelf like that.

Doing well-timed things to help folks continue to see a high ROI out of their purchase will help. Training videos, calls or webinars delivered at strategic points in their timeline as a new customer, for example.

Imagine that you offer new car buyers a free oil change for the first year of ownership. While that starts off year one as a sales promo expense, it should end up creating a habit: “Change your oil here”, which produces long term service revenue and as a by-product gets your customer back into the store every 90 days or so.

If you fail to remind them about each free oil change, they might get it done somewhere else – breaking the habit before it starts. If you do the math, the revenue loss after year one is substantial. Worse, you may lose a future vehicle sale because that person isn’t eyeballing shiny new wheels once a quarter while waiting for the oil change. Make yourself an easy habit.

Trials and Tribulations

When it comes to products that are sold via 30 day trials and the like, cancellation timeframes should be examined closely. Just because everyone cancels on day 29 doesn’t mean they didn’t like your product. It might be that they underestimated how busy they were (imagine that) and never got to the point where they could give it a fair shake.

Or maybe they got confused, didn’t ask for help and gave up. That trial ends despite the fact that they were doing well with you until they became confused. Cancellation points can change as your offerings do, so pay attention. Sometimes the problem is as simple as helping people see the depth of the value you deliver.

Tiny little things, ill-timed, can devastate people’s confidence in your product or service.

Think about the last time you put something in a website shopping cart and then clicked away. The tiniest thing is enough to break your confidence (or attention) enough to say “Maybe next time” and cause you to click away. Do you watch to see what page is most frequently used just before a shopping cart is abandoned? That might be a clue that helps you fix a problem costing you thousands of dollars in sales.

Reducing refunds is really about catching the folks who might leave because you’re missing something. It’s not really about turning around a refund as it is doing a much better job of paying attention to the prospect’s needs as well as learning where the failure points are in the process people have to evaluate and use your product/service – and then addressing them.

Those failure points can be moved or even eliminated, if you pay attention.

Are You Sending Invisible Signals?

Sometimes a business does things that just don’t make sense, particularly when you consider the business they’re in.

Consider every hospital foundation director’s worst nightmare: Sending a donation request addressed to someone who recently died. What could be worse? Sending a donation request addressed to someone who died…. in their hospital. I haven’t personally seen this, but I had a conversation today with a hospital foundation director who knew of such things.

Paying attention

After my dad passed, I setup his email account to echo to mine just in case some last-minute personal business needed to be dealt with or a long-lost friend emailed him. Most of the email I get requires no action and off it goes into the circular file.

And then, there’s Ancestry.com.

I received this email on my parents’ wedding anniversary. Their first anniversary since my dad’s death.

Ordinarily, I would spend several paragraphs on the email itself.

I might mention things like the lack of the name of a real person as the sender. Or why they didn’t include a “PS: Happy Anniversary” (remember, they have data on marriages and divorces). Or the lack of questions why the renewal never happened after contacting me “several times”, much less the lack of a follow-up offer that repositions the pricing somehow. Or how calling me a “member” in a relatively impersonal email doesn’t make the email more personal. Or how the email is all about the payment and ultimately, all about THEM. Or by not knowing that the addressee has passed that anyone reading this might be considering whether or not to take over management of their genealogy data.

But that isn’t why I’m bothered by this email. It isn’t even about Dad.

It’s about demonstrating competence.

Competence

Ancestry.com sells data. Data about births, marriages and deaths.

Birth, marriage and death records are public information…and in Ancestry’s case, the delivery and organization of that data is their business.

Yet somehow, they don’t make the effort to figure out that their own customers are no longer alive. Receiving an email like this almost makes you wonder how close they pay attention to the quality of the data they sell.

When you aren’t paying enough attention to the invisible signals your business sends, you risk it all. In Ancestry’s case, they risk giving the impression that they aren’t paying attention to the quality of the product they’re trying to get me to renew.

Now turn this to your own business. Are you sending invisible signals about the quality of what you do?

The New Math aka Economics 101

A friend told me recently that his family filed a homeowner’s insurance claim for slightly under $600.

After filing no claims in over 20 years of keeping their insurance with this company, this was the 3rd claim in 5 years.

During that 5 years, their annual insurance rate went from $1300 a year to $4000.

After the 3rd claim was paid, their insurance was cancelled without warning.

Do the math

Somewhere, a bad piece of software or a misguided underwriter just killed a 20+ year customer relationship.

That aside, let’s do the math.

Even if a family had no other insurance with this agent/company (highly unusual, I suspect), they’ve been worth well over $20,000 to this insurance company.

In this case, ALL their insurance is at that company. Think they’ll move it? If they fired this customer over a $600 claim against a $4000 per year policy, it wouldn’t surprise me to see the family move their coverage elsewhere. All of it.

At $4000 a year, the recent claim is nothing.

Yet because they didn’t really look at the math the right way, they just discarded a customer with 20 years of loyalty over $600.

If this family keeps their home another ten years, that’s a loss of $40,000 in premium revenue, not counting the other insurance policies they have.

Who does the math at *your* business?

Are you throwing away thousands of dollars by not paying attention to the Lifetime Customer Value generated by recurring revenue?

Please do the math.

 

 

Make an offer that makes sense

zipper
Creative Commons License photo credit: gagilas

Yesterday, an email from WinZip arrived in my inbox.

I’ve used and liked WinZip for at least a decade. Not many pieces of software can make that claim.

Lately, they’ve been emailing me pretty frequently. This particular email offered a free copy of the latest WinZip if I used their affiliate link to sign up for a free trial with Netflix’s online movie service.

Whaaaa?

Ok, maybe that’s not such a bad deal if I’m not already a Netflix user, but the offer may not make sense depending on what kind of WinZip customer I am.

When I got the email, I wondered “Why Netflix?”

It might make perfect sense if WinZip knows their customer base well. Perhaps they’re sure that a majority of their users are home users, student/teacher users or small business/corporate users. If that were so, it would’ve been best to segment their email list and mail this offer only to their home users. And perhaps I’m somehow on that home list, rather than on their “business customer” list.

Even if all that is true, is this a service that most WinZip users can take advantage of? Does it help their users get more out of their WinZip? Or did they send it because Netflix is a really good affiliate deal for the makers of WinZip?

The offer just doesn’t make sense from a “How can we help you get more out of our software?” perspective – something you should *always* be thinking about, whether you sell software or transmission oil coolers.

In fact, some will see that message – especially at multi-per-week frequencies – as spam.

I’m not convinced that WinZip segmented their email list before sending this out. If they had, it might make sense.

Leverage

In your case, it’s essential to avoid being “one of those people” and eventually ending up on a spam blacklist.

If you’re going to send 3rd party offers to your customers, make absolutely sure they make sense by giving your customer an opportunity to leverage the investment they’ve already made in your products and services.

Whaaaa? Part 2

When you build a commodity (mostly) utility, even one as good as WinZip as been, at some point your business model is going to flatten out. With no recurring revenue, you start doing things like emailing your customers offers to purchase a movie service. Even your business customers.

Think deep and long about that business model. What happens after 100 customers? What happens after 500 or 50,000? What happens 10 years from now?

The more thought you invest in that stuff now, even while building the next-big-thing, the less likely you’ll need to make choices that would never cross your mind otherwise.