Categories
Automation Competition Improvement Management Manufacturing quality Small Business systems The Slight Edge

The importance of performance metrics

Last time, we talked about metrics that answer questions to help you increase sales.

Metrics aren’t solely about sales and marketing. Quality and performance metrics drive your business. Can you identify a few that would cause serious concern if they changed by as little as five percent?

If there are, how are you monitoring them? Monitoring and access to that info is what I was initially referring to last time. The performance metrics I’ve been working on are a mix of uptime, event and work completion information. In each case, a metric could indicate serious trouble if it changed substantially.

Uptime metrics

An uptime metric shows how long something has been running without incident. In some fields, particularly technology, it’s not unusual to have seemingly crazy uptime expectations.

Anyone who has picked up a landline phone is familiar with the standard in uptime metrics – the dial tone. For years, it was the standard because it was quite rare to pick up the phone and not get a dial tone. Its presence became an expectation, much as our as yet unfilled expectation of always-unavailable cell and internet service is today. The perceived success rate of the dial tone is probably a bit higher than reality thanks to our memory of the “good old days”.

Today’s replacement for the dial tone is internet-related service. Years ago a business would feel isolated and threatened when phone service went out. Today, it’s not unusual for a business to feel equally vulnerable when internet service is out. The seemingly crazy uptime expectations are there because more businesses function across timezones (much less globally) than they did a few decades ago. Web site / online service expectations these days are at “nine nines” or higher.

Nine nines of uptime, ie: 99.9999999% uptime, is a frequently quoted standard in the technology business. Taken literally, this means less than one second of downtime in 20 years. There are systems that achieve this level of uptime because they aren’t dependent on one machine. The service is available at that level, not any one device. Five nines (99.999%) of uptime performance allows for a little over five minutes of downtime per year. Redundancy allows this level of service to be achieved.

Events that idle equipment and people are expensive. What’s your uptime metric for services, systems, critical tools like your CNC, trucks on the road (vs. on the side of the road), etc?

Event metrics

Event metrics are about how often something happens, or doesn’t happen – like “days since a lost work injury” or “days since we had to pull a software release because of a serious, previously unseen bug“.

In those two examples, the event is about keeping folks focused on safety first and safety procedures, as well as defensive programming and completeness of testing. You might measure how many crashes your software’s metrics reported in the last 24 hours and where they were. Presumably, this would help you focus on what to fix next.

What event metrics do you track?

Work completion metrics

Work completion metrics might be grouped with event metrics, but I prefer to keep them separate. Work completion is a performance and quality metric.

Performance completion not only shows that something was finished, but that successful completion is a quality indicator. Scrap rates and scrap reuse get a lot of attention from manufacturers in part because of the raw material costs associated with them. Increasing scrap rates can indicate performance and quality problems that need immediate attention.

One system I work with processes about 15,000 successful events a day – not much in the technology world when compared to Google or Microsoft, but critical for that small business. If the number dropped to only 14,900 per day, their phones and email would light up with client complaints, so there’s a lot of emphasis on making sure that work completes successfully. Catching and resolving problems quickly is critical, so redundant status checks happen every 15 seconds.

Events of this nature are commonly logged, but reviewing logs is tedious work and can be error prone. Logs add up quickly and can contain many thousands of lines of info per day – too much to monitor by hand / eye via manual methods.

These days, business dashboards are a much more consumable way of communicating this type of information quickly and keeping attention on critical numbers – such as this example from klipfolio.com:

business performance metrics dashboard

What work completion metrics do you track?

Categories
Automation Competition Manufacturing Small Business strategic planning systems

Half of China’s companies do this

Recently, I was reading a story in the New York Times about a Chinese city’s effort to vastly expand their use of industrial robotics. The story’s video hits home 98 seconds in.

The official being interviewed indicates that the city’s goal is to reduce the number of employees by half and finishes his sentence by saying “many companies are working toward this goal“.

Not one company in one town. Not the company responsible for the birth of Chinese industrial robotics, but “many companies”.

Why expand robotics use?

They’re doing this by working toward the creation and deployment of high-quality “human-like” robotics technology.

A senior manager at one of their leading manufacturers of industrial robots says “China’s demand for industrial robots has been on the rise year after year. Compared to America, Japan and Europe, the increase in demand is enormous.

When I dig a little deeper, I find that there are a number of reasons for this drive to expand the robotization of China – and not all of them are expected:

  • They can’t hire enough people fast enough.
  • Their level of output has stagnated because there are only so many places to put all of these people, which drives…
  • They are encouraging people who have abandoned rural areas to move back to their hometowns – in part to take some of their skills with them.
  • To cut manufacturing costs.
  • To increase safety

What’s this got to do with your small business?

Perhaps nothing. However, a few of the items on China’s list are likely to fit business needs where you are, even though the scale of your project might be dwarfed by a large Chinese manufacturing business.

Can’t hire enough people fast enough.

Not a week goes by without hearing this from someone. Now, to be sure, some of this is driven by salary levels, but most of it is driven by the availability (or lack of it) of trained people in some skill areas. It’s of particular concern in rural areas where you find specialized businesses putting down roots, or simply growing out of local need to create jobs and enterprise.

One of the key things that challenge the expansion of modern businesses in rural areas is the availability of skilled workers with advanced skill sets. Not everyone needs these, but those who do struggle to fill openings when they’re ready to expand.

Abandoned rural areas

China’s encouraging people to move back to their hometowns, in part because some of their urban centers are overwhelmed. Hopefully some of this is also because of a desire to improve urban worker lifestyles. The abandonment of rural hometowns isn’t limited to China, however. In the U.S., rural communities have been shrinking due to “brain drain” as their graduates move away to college and either don’t ever return, or perhaps don’t return for several decades. If they wait several decades, they don’t necessarily come back to town and start families. Instead, they come back as empty nesters.

To lure graduates with newly-gained modern skills, their hometown needs a place to work where they can use those skills. Kids don’t run off to college and get an engineering degree so they can move back to town and manage a franchise restaurant.

To cut manufacturing costs

As I noted above, the graduates we want to keep at home need a place to leverage their skills and that place needs to be competitive in the global market they serve, otherwise the jobs are tenuous as the employer simply cannot compete in the long term.

To increase safety

Safety has been a topic for discussion here in Montana for a while, due to a less than ideal safety record in recent years. While some of this can be addressed through training and safety equipment, there is another way to cut down on dangerous work.

Yes, robotics

These last four items can be addressed in part – not completely – through robotics. Maybe you aren’t ready today. Maybe you don’t manufacture today. Maybe you already have some automation in place. Maybe you and your staff worry that you will be risking your business and its jobs by involving robotics.

Maybe you’ll be risking your business and its jobs if you don’t involve robotics.

While it’s not applicable to every business, it’s worth a look. A safer, more productive workplace creates jobs that more likely to stick around.

Categories
Business Resources Competition Customer relationships Customer service Guarantees Retail service Setting Expectations Small Business systems

Your systems should focus on your clients

Do your systems serve your internal customers or all of them?

By internal customers, I mean your accounting department, the staff on the shipping dock, customer service representatives, sales people and so on.

Systems that serve your internal customers do things such as accept, validate and record orders, track commissions, automate shipment notifications, manage inventory and a multitude of other things necessary to make sure that orders for products and services are properly fulfilled.

These systems (investments, really) serve your “real” clients as well, but in many cases their service to the client is indirect. I say indirect because your client rarely sees this service, even though they benefit from it. These systems enable your staff to serve your clients, keep track of where their package is and keep track of the fact that they’ve paid their bill. That’s service they benefit from – even if it is indirect.

Clearly, these investments are valuable. My assertion is that these systems don’t often focus on the client’s needs, even though they ultimately serve that client.

For example?

You knew I’d have an example or two.

You’ve probably seen a cryptic medical bill at some point. These bills have improved vs. the bills of five or ten years ago, but they could still be easier to read. Focusing on client needs might mean making the effort to create a customer-focused bill where info other than the total amount due is intelligible to the patient and their family.

A recent cold snap snuffed the battery in my wife’s car. When I went to replace it, I had to take it to a different store in the national (but locally owned) chain where I buy auto parts. Because the store’s systems are focused on internal customer needs, they were able to see inventory in stock and tell me which stores in the area had the battery I needed. While that’s useful information to help me get a new battery, it fell short of the staff’s needs and my own.

Unfortunately, they had no way to access my purchase information from a few years ago so that they could provide the appropriate discount on the new battery, since the old one expired during the warranty period.

The last time I bought a battery from these guys, they calculated the discount from the date on the battery (ie: the month and year that are picked off at the counter when the sell it to you). This time, that date was considered irrelevant. Further, I was scolded for not having a three year old receipt (which I probably have, but haven’t found).

I asked for advice to avoid this in the future, since I was used to the prior system where the pick-off date on the battery was what the trusted. The guys at the counter suggested that I tape the new receipt to the battery so that I’d have it next time. It seems like a good idea, but tape plus battery plus Montana weather times three or more years tells me that reading that receipt might not be so easy in the future.

Where’s my warranty discount?

The discount was trivial and really isn’t the point, but the situation provides a good example of a business system that primarily serves internal customers. The store that sold me the new battery has the ability to check inventory of the store where I bought the old battery and get a part from that store – both of these features primarily serve internal customer needs. A missing internal customer need that would also serve the external customer would allow store personnel to confirm a purchase at another store in the chair, as well as track the purchase for warranty purposes.

You’ve seen this before. Pharmacies are able to track prescriptions at any of their stores and refill them in any other store even if the original was called into a pharmacy thousands of miles away. To be sure, there are laws covering the record keeping of these purchases, but they could make it much more difficult to buy in the second location than they do.

Why do they buy from you?

The point is that your clients have a choice. If your internal systems make it easier for your clients to buy, redeem, refill, obtain service, and buy again…. they’ll likely buy from you.

Categories
Automation Business model Business Resources E-myth Management Marketing Small Business systems

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.

Categories
Automation Business culture Business model Competition Customer relationships Customer service Getting new customers Recurring Revenue Small Business strategic planning systems Technology

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.

Categories
Advertising Business culture Business model Customer relationships customer retention Direct Marketing Getting new customers Lead generation Marketing Positioning Recurring Revenue Sales Small Business Strategy systems

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?

Categories
Business culture Competition Customer relationships customer retention Improvement Positioning Small Business systems The Slight Edge

How to create good surprises? Baby steps.

Surprise...

Recently, a couple of real estate transactions provoked me to write about surprises.

In that piece, surprises were not a good thing.

Yet sometimes, surprises are exactly what you want to deliver. So how do you decide which surprises are good and which aren’t?

You need to find a difference to choose a good one – but how? Try substituting a different word for “surprise”, such as “delight”.

Now ask yourself, what would delight your customers?

You might think lower prices would delight them – and while they might appreciate that, you need to think harder.

We’re looking for things that your customer would talk about the next day or week – and remember long enough to influence them to come back.

If you aren’t sure – think about the last time you found yourself delighted by something a business did. Think about how that felt. With that experience in mind, you’re ready to start looking for places to tweak your customers’ experience. So where do you find them?

Baby Steps

I think one of the best ways to figure out these little tweaks that transform your customers’ experience is to walk through the process of doing business with you in little, tiny steps: Baby Steps.

Walk through the process with each type of customer. Start with the acquisition of the lead – even if that’s a cold call from them to your business. Continue through the entire purchase and delivery cycle, identifying places where trouble could occur, where little touches would transform the experience and where little failures could sabotage the whole deal.

You should keep client expectations in mind as you follow the baby steps looking for tweaks. Expectations will differ depending on the size, type and culture of the client, as well as between business and consumer clientele.

Expectations differ by client size

When looking for things to change for a business client, consider the size of their business. You’ll want to adjust what you do based on their size because size alters how they operate.

For example, small business clients might handle invoicing, payment and receiving themselves – or a single bookkeeper/accountant may handle it. At a large client, you could easily involve dozens of people, depending on what you’re delivering. The experience – and the baby steps – should differ substantially.

Consider building a unique process for each substantially different size of client to avoid making your tweaks into the wrong kind of surprise.

For example, if your billing process is designed to make things easy for a small business bookkeeper, that process won’t likely go so well when implemented with large corporate accounting and receiving departments. Likewise, the reverse will just as likely be annoying to large clients.

Expectations differ by client culture

Client size isn’t the only factor that can alter what you do to delight them. Client culture is just as important.

For example, if you’re a wedding photographer or planner, you’re likely to handle the wedding of a Manhattan couple differently than you would a couple in the rural South or any other place substantially different in culture from NYC. Keep client mobility in mind. Even in the smallest of towns, you may find yourself working with clients from Paris, NYC or London.

It isn’t just about big cities vs. small towns. Internal culture can differ widely from the suits and ties at IBM to t-shirts and Xbox at Google. As a result, your processes and the tweaks you implement should consider how things work internally at your client, as well as how they don’t.

Expectations differ by service level

If you want to fine tune your customers’ experience and put a fence around them that no one can break through, we’re not done yet.

One set of processes for businesses and another for consumers, if that fits your business, isn’t enough.

One process for each size of client isn’t enough.

One process that fits the culture for each client isn’t enough.

You’ll want different processes for each service level your clients purchase: Good, better, best.

How do I get all of this done?

Finish one process at a time, then move to the next.

You”ll want documented processes with systems to make sure they’re done every right time. High tech isn’t necessary. A wall of clipboards works better than going from memory.

Making it easy on them doesn’t have to be hard on you.

Categories
Business Resources Entrepreneurs Improvement Personal development Setting Expectations Small Business systems Time management

Are you un-coachable? Drips might help.

Heading into Battle

Frustrated with the rate of change or accomplishment of new work in your business?

I had a conversation recently that might help.

Ann: Sometimes I think some of us are un-coachable.
Mark: Reminds me of “When the student is ready, the teacher will appear.” It’s huge for those who teach and/or coach – you have to meet the student where they are rather than where you want them to be. Anyhow, I don’t think it’s being un-coachable, it’s a form of being overwhelmed.
Ann: We hear and understand but we just can’t get traction and do it consistently and …
Mark: Habit momentum is important. Start one thing today, then when it becomes a daily habit that’s part of your life, add another.
Mark: IE: D,D,D
Randy: I *knew* you were gonna get that in there.
Ann: D..D..D..?
Randy: DDD stands for “Drip, drip, drip.” In this case he means that if you do a little bit each day, the small efforts add up. It’s something I have to *constantly* remind myself about.
Mark: Right, but it’s important that you make sure the *right* bit is what’s getting done each day.

Little changes, big results

Ann: But what does Drip mean?
Mark: It’s a euphemism for incremental change.
Ann: Told you I was un-coachable
Randy: By making incremental changes, those little changes that we might not be able to make as a whole eventually add up to big things.
Ann: DDD = small deltas
Randy: Exactly. And one of my favorite Rohn quotes applies here. “For things to change, you must change.”
Mark: With DDD, the concept is that it’s easier to change one thing in your business than to change 20 or 30. When we look at our business, we can often come up with 20-30 or even 100 things that we’d ideally like to change, so it’s often difficult to get ANY of these changes to happen because of the sight of them as a whole.
Ann: Yes, it’s tough to get traction.
Mark: Absolutely – and that’s the painful part. In most cases, even establishing two or three of the changes will make a substantial difference to our business. Some see two or three changes as a failure because they’re focused on a list of 20 or 30 as “success”. If they aren’t in the right mindset, these initial successes actually discourage them from continuing to chip away at number three, much less 21, 22, etc because the effort as a whole feels like a failure or a journey that’ll never end. It’s too easy to miss the incremental wins when you’re focused on the end (or what you think the end is).

What IS a Drip?

Dean: Do you guys think Ann’s phrase about “Getting traction” is a good description of the problem?
Mark: Traction – I agree it is, which is what drips are all about. Drips generate confidence and momentum as they become habits, forming a foundation for bigger change. Traction.
Dean: What if the drips aren’t enough to make a business work? I have a friend who’s been “running a business” for years, working three hours per week. After a decade, little progress.
Mark: Drips are about new habits and making change, not building the whole business. And…Drips aren’t about hours. They’re tasks.
Dean: For example?
Mark: Say a client needs a print newsletter, an email newsletter, blog posts and videos. If I drop all of that on them at once, they won’t get them done. There’s too much to take on at once and it’s overwhelming. Instead, we break each one out into a drip. In other words, each one is a new habit (product or outcome) you want to introduce into your business.
Dean: OK, let’s talk about starting the print newsletter.
Mark: I’d probably rough out a layout in maybe an hour. I’d spend the next hour writing content.
Dean: Starting from scratch, you’d just need one hour?
Mark: No, I’d spend an hour on the newsletter until the first issue is done. The idea is to chip away at that single habit or change for an hour a day (or a week, whatever I have to work with) until the first cut is done. At that point, I should have a process that’s ready to delegate or outsource.

The key to Drip, Drip, Drip is to stay focused on each change and keep working at it till it’s done.

Categories
Amazon Automation Box stores Buy Local Getting new customers Marketing Positioning Retail Small Business Strategy systems Technology Wal-Mart

Are you being showroomed?

Multi-Touch
Creative Commons License photo credit: DaveLawler

If you have a retail store, you’ve almost certainly had people showrooming in your store.

If you haven’t heard the term,”showrooming” can be summarized as “shopping at local stores to check out an item before buying online.”

Showrooming takes different forms and includes:

  • Price checking items on the internet while walking through a store. That bottle of foo-foo shampoo is $28.99 at the local grocery. Maybe it’s cheaper online, so people use the barcode to find a price at Amazon. A showroomer might even order right there in aisle five before they forget.
  • Going to a local store to check out a product you plan to buy online.

Electronics stores and retailers who sell complex, expensive items like cameras are most often showroomed.  Seems harmless until you consider that the local retailer is paying rent, salaries and other expenses to provide you with a free way to make sure that thing you want is really what you want – so you can leave their store and buy it at Amazon or B&H.

Internet-ready smartphones didn’t create showrooming. It’s just easier now. The same thing happened to retailers during the catalog mail order era.

Rather than complaining about it, let’s take a different tack.

One antidote to showrooming: A decent website

Showrooming isn’t just about checking out products and then going home to order them. The good kind happens too – meaning your website shows what you have in stock that’s ready to pick up today or when you can deliver it.

I’m in the process of moving to a new place. One of the unbridled joys of moving is packing your stuff. With the long weekend in front of me, I figured I’d knock out a bunch of packing. Silly me – even though I started the day with 40 boxes, I ran out Saturday evening.

Thus began the battle. U-Haul places are closed because of the long weekend. Most home stores and some box stores carry moving boxes, but it was after six, so that meant I was out of luck locally and would have to drive to town. I don’t “drive to town” for giggles, so I started surfing in hopes that someone had them in stock. If not, then my weekend plans will change (yes, a little of me was hoping I’d come up empty.)

Call it reverse showrooming, but I want to find what I need before I go chasing all over the valley for no reason.

The first box store site shows that their stock is online-order only unless I want to wait a few hours to find out what they *do* have – and then only after placing a “pick up and wait for a call/email/text” order – which felt more like betting on horses.

Some sites make searches like this easy.

For example, Home Depot has a filter on their website that eliminates anything that isn’t in stock at my “home store” (the store that I’ve told the site is closest to me). That works well, since I want immediate gratification – if you can call a shopping trip for boxes “gratification” (doubtful). Anyhow, if I can see what’s in stock, then I don’t have to take a chance at a 36 mile round trip for no reason. Finding up to date store inventory info on their site means they help me avoid wasting time and money – even at full price.

In Home Depot’s case, they also have tabs showing “All products”, “In-Store”, or “Online” – plus the filter I mentioned above.

I drove the 40 minutes and spent the 40 bucks because my local retailer was closed (which is OK) and because Home Depot’s site had enough information to allow me to make a solid decision.

Why do people showroom?

One reason is price, but for many products, the online merchant has done a poor job of selling the item. As a result, the prospect has to invest additional time to find the product and make sure it’s really what they want/need.

Why can’t your store site do that?

TIP: Big corporate stores often use automatically collected product data pulled from manufacturer data feeds (I’ve worked on these systems). Want some evidence? Look at a nationally-sold item at several large retail websites. Is the description identical? Is the picture?

You can do better. Next time, we’ll dig deeper on the causes of showrooming and discuss some solutions.

Categories
Automation Business Resources Customer relationships customer retention Direct Marketing Email marketing Entrepreneurs Getting new customers Internet marketing Marketing Recurring Revenue Restaurants Retail Sales Small Business systems The Slight Edge Web 2.0 Web Analytics websites

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.