Discarding clients & the math of job security

How often are you discarding clients? When fussy, needy, and/or high-maintenance clients complain repeatedly, there’s significant temptation to simply toss them out with the garbage. Some business owners build “filters” into their marketing designed to repel such clients.

When an existing client provokes thoughts of “Life’s too short to deal with this“, who fires them? How is the decision reached? Is the process documented? How is the decision communicated to the client and to your team?

Hammers, nails & curmudgeons

I asked some friends how they describe people they’d fire as clients. Their responses included unreasonable, unrealistic, frustrated, afraid, disgruntled, troublesome, pedantic, rebarbative, cranky pants, curmudgeon, etc.

Are you teaching your team that getting rid of imperfect clients is the only acceptable solution? Owners know there are situations that don’t merit dropping a client. Owners discard clients based on their experience. Does your team have that experience to back up their decisions? Take care that your team doesn’t use this tactic like a hammer while seeing every complaining customer as a nail.

It’s essential to be careful using “You’re fired!” as too-frequent use can damage your reputation. Businesses learn to detect bad apples and few are surprised when these clients get fired. Taken too far, your business can get a reputation for arrogance. People will think you discard clients the first time there’s an objection or even a question. You don’t want your reputation to be “At the first hint of a problem or even a question, they tell people to leave and not come back.” Some prospects will hear that and decide not to show up.

The math of discarding clients

Discarding clients sometimes feels as easy as pulling a splinter. The pain and aggravation fades quickly, making you wonder why you ever tolerated them. Even so, every choice to discard a client impacts your bottom line. While getting rid of high-maintenance “time vampires” will probably improve your bottom line, you have to be careful not to let your team believe that’s the only solution available. That’s where the math kicks in.

If your team gets rid of one customer a month, what does that mean to your bottom line? You likely know the typical customer’s lifetime customer value (LCV). Owners usually know how often the typical customer buys from them. They also typically know how much customers spend on average per transaction. Combined with the rate at which you are adding new customers, you can determine what an improper “firing” costs you and how long it takes to recover from it.

Uninformed profitability math

Employees don’t usually know the financial impact of discarding clients. When you explain the financials of your business to your team, it helps them understand why you think the way you do. Tools like “The Great Game of Business” (start with the book) help employees understand how the business works financially (free resources) vs. how they think it works.

Learning how the business works from a financial perspective encourages employees think more like owners. It can alter “I’m working my tail off for $15 an hour while the owner gets rich.” to something closer to reality. Even if the owner IS getting rich due in part to the risks they took & the investments they made, “uninformed profitability math” isn’t healthy. This “uninformed profitability math” rarely create behaviors that are positive for the business.

Many employees have never had the opportunity to see how their work (and how they work) impacts company financials. Meanwhile, business owners regularly complain how their people don’t think like owners. Part of that thought process is understanding the financial impact of events that occur in the business each day. Knowing that what your work does for the bottom line carries substantial value.

A “We’re having a good (or bad) month” message to employees is rarely accompanied by data explaining why. Understanding what good and bad month means affects the security a team member feels about their job. This impacts their confidence in their ability to provide for their family – and certainly affects job performance and attitude.

What does “we’re having a good/bad month” mean at your business? What message does it send to your team?

Photo by Shinichi Haramizu

Is it better to keep a customer or replace them?

“$29 per month… NEW CUSTOMERS ONLY!” Most of us have seen something like this and thought less than pleasant things about a vendor who hangs these new customer offers out in public where existing customers can see them. That bargain basement deal that’s not available to existing customers doesn’t make you feel good about your decade-long relationship with that business. The loyal customers who have stuck through good times and bad with that vendor – including their mistakes (which we all make).

The thought?

“Where’s my screaming deal?”

It isn’t that these deals are inherently bad. The mistake is putting them out there in front of everyone – including your current customers. If you can find a way to avoid showing the “loss leader for new customers only” offer to existing customers – avoid it. In some media, you can’t avoid it – so don’t use that kind of offer there. It ticks off your loyal customers. Every. Single. Time. Your customer service team gets to take flak about this each time you run these promotions.

Meanwhile, a lack of communication to existing customers plants the thought in customers’ minds that their vendors take them for granted. We know you’re thinking of us when you outsource customer service to Jupiter to save $1.29 per hour, or when you discuss how to shrink receivables. What sort of effort do you invest to retain existing customers?

If you have convinced your customers that you aren’t thinking about them & that you’re more concerned about getting new customers – why should they feel differently about you? You’re advertising for new clients everywhere. While those ads are out there chasing down more new customers to fill the leaky customer bucket, are your long-time loyal customers (and the rest of your customers) being ignored?

All the single ladies

Look at it this way: If you’re someone’s steady “significant other” and they are constantly out chasing down new “others”, most of you wouldn’t take that so well.

Why should your customers feel any different when they aren’t being wooed, cared for, thanked, communicated with, or given any special attention? They only seem to get attention when they call to report (or complain) about a service, delivery, or product failure. Once the initial sale is concluded, is the only time you connect with your clients when they contact you, or something has broken or otherwise gone wrong?

“That’s what everyone else does.”

You might be thinking “That’s what everyone else does. Why should I behave differently?

You are, or have been, a customer of car dealers, cable companies, dry cleaners, restaurants, various repair shops, handyman services, plumbers, sewage tank pumpers, electricians, hair salons, clothing stores, hardware stores, quick lube shops, etc. Almost all of them are advertising for new customers this week. How many of them are ALSO communicating with you to keep you, to bring you back, to make you feel good about being a customer, and/or encourage you to refer them to someone you respect and/or care about?

Very few.

They’ll likely continue appearing to take you for granted for weeks, months, or years – all while chasing new customers, all while grumbling about churn as they slowly lose customers to someone else’s $29 new customer offer. Don’t be that business.

Doing only one of these (looking for new, caring for existing) is not sustainable. Yes, I know it’s more work to do both. Most places need to get new customers, but most of those same places spend a lot more money & effort to get a new customer than they do to keep and care for an existing customer. Doing both means making an effort to protect the asset you paid for – yes, customers are an asset. Perhaps not in accounting terms, but in the real world where customers don’t grow on trees, we’d all rather have more long-time customers and others begging to do business with us.

Don’t spend $12 to get a customer this month, only to ignore them hereafter and hope they stick around, and then go spend $12 to get another one. That assumes you know how much it costs to get a customer (and it’s always more than you think).

Recycling customers is expensive.

Take better care of your existing clientele. Well cared for clients tend to buy more, buy more often, & for a longer period of time. They refer their friends & colleagues because they finally found someone who gets it. Be that someone.

Photo by martin.mutch

Where is the friction in your business?

What do you repeatedly force your clients to do that they simply shouldn’t have to do? Put another way, how does your business frustrate your clients? When dealing with your business, what drives them crazy?

What’s friction?

Can’t open the package without a Jedi sword? Can’t read your boarding pass printed in that microscopic font? Have to do this and this and this and that to buy or pickup a purchase, only to have to start over again? Can’t find out when something will be delivered? Have an appointment window that stretches from sunrise to sundown? Press one because your call is important to us and will be answered by the next available agent?

Yes, those kinds of things. They aren’t the sole domain of the cable company or that big company that’s easy to despise. Small businesses do these things as well, so we have to be vigilant and chase these things out of the building.

Sometimes these things are simple and inexpensive to fix, yet failing to address them creates a point of aggravation between you and your customers. These points of aggravation are often the tiniest of things. Like a grain of sand in your shoe, they could be the start of something much worse if allowed to fester.

Should it fester, you may lose a customer. Losing even one customer to one of these little things will transform that friction-creating “little thing” from inexpensive to very expensive. Remember, losing a customer usually isn’t losing a single sale – it’s losing all future sales from that customer. Friction is expensive.

How do I find these aggravating things?

Ask.

But what to ask? No matter who you’re talking to, poke around in their experiences with you regarding installation, deployment, service, customization, billing, paperwork, repairs, upgrades, financing, returns, shipping, etc. Ask questions about these things using different terms. Repeat yourself until you get the details you need. Using different terms in your questions will provoke different reactions and prod different memories from your customers.

Ask your best customers.

They’re the ones you’d hate to lose. The ones you know by name when they walk in the door. The ones whose names are familiar to your bookkeeper – and not because they don’t pay their bills. They’ll tell you different things than your newest customers, but that’s OK. There isn’t one frustration that fits everyone. Your business has many components. If you sell a number of products and services, you’ll need to ask the best customers of each. You’ll likely get different answers for each product and service.

Ask your newest customers.

Because everything is new, they’re quite likely to be more sensitive to oddities and more observant about every little thing your company does. Listen carefully to these folks. They may mention things that you’re vested in. You might get defensive. Fight that urge. There may be a perfectly valid reason for doing whatever it is. Brainstorm with the customer how you could accomplish this result in some other way.

Ask lost customers.

Did you lose a customer to another vendor? Give them a call, or see if they’ll set a time to visit in person. Make sure they understand that you aren’t there to sell them, but instead, you want to know what went wrong. What could you have done better? How did you frustrate or annoy them? This lost customer probably isn’t alone. Follow up with them once you’ve addressed the things they mentioned. A handwritten card thanking them and briefly describing what you’ve done to correct these things will both thank them and tempt them.

Preventing the growth of friction

Bear in mind that these things aren’t often created intentionally. Most of the time, “they just happen” and we miss them long enough that they become systemic. Once they become systemic, they seem normal and we have to battle a little harder to identify and evict them from how we do things.

Create a culture of ownership for finding and fixing these things. When your team has the permission to fix these things on the spot and bring the situation to your next process improvement discussion (ie: lunch), fixes don’t have to wait. Set boundaries as needed, but be careful to encourage improvement without waiting for seven signatures and a wax seal.

Photo by theilr

This year, customer follow up will be different.

For many businesses, two things happen this time of year. One: You get a bunch of new customers. Two: Many of the new customers you acquired during this time last year “forget” to come back. The customers on the first list cost time and money to acquire. A fair amount of the people who “forget” to come back were never asked to. In other words, the business didnt invest the time / money for new customer follow up.

There is a problem with this concept. Being able to follow up requires having some contact info for your clients. These days, people are all too used to being nagged incessantly, mostly by mail and email. They’re also concerned about privacy and identity theft, which increases their reluctance to provide you with their contact info.

Why they think you’re a spammer

While it keeps the FCC and others “happy” to publish boilerplate privacy and security policies, most people either won’t read them or won’t care that you have them. Until given a reason to think otherwise, they will group your request with all the ones they’ve received before. This means that you will be thrown into the bucket with the companies who used their contact info inappropriately.

Inappropriate doesn’t necessarily mean illegal but the net impact on the business is roughly the same.

While many marketing people and business owners think otherwise, they don’t get to decide what is spam and what isn’t. The recipient does. The legal definition is irrelevant. No matter how good you think the message is, the recipient decides whether your messages are out of context, incessant, annoying or of no use. If your new customer follow up message matches any of those criteria, they will unsubscribe, opt out and might even stop doing business with you.

Even worse, they will group you with all the other spammers and be super hesitant to provide you with information in the future – even if you need it in order to serve them as they wish.

Poorly conceived customer follow up has a hard cost

Spammers are of the mind that they can send millions of emails for free. They have the luxury of not caring if they retain a “customer”. You do not. They have the luxury of not caring about the cost of a lead, much less the lifetime value of a customer. You do not.

When you send a message that feels to your customer like spam and it causes them to unsubscribe, there’s a hard cost associated with that. Think about what it cost to get that person to visit your store or website. We’re talking about labor, materials, time, consultants, employee salaries, service costs, etc. Every lead source has a cost and a ROI. The latter comes from the lifetime of that client relationship with your company.

When your message causes the client to unsubscribe, your lead cost rises and your ROI is likely to drop because the lifetime customer value of that person or business will probably stagnate.

Great, so how does my customer follow up avoid this?

Expectation management.

When they provide contact info these days, people have questions about the use of their contact info:

  • How it will be used.
  • How it will be shared (short answer: DON’T)
  • How it will be secured.

You have to be crystal clear (and succinct) when answering those questions. You have to adhere to what you said. Stepping outside the bounds of what you said you’d do, even once, breaks what little trust was granted when their contact info was shared.

Whether you feel it’s justified or not, people are hyper-sensitive to this. If you want to build a lifetime customer relationship with them, your behavior has to show it.

A suggestion

Everyone likes getting stuff on their birthday. It doesn’t have to be a (heaven forbid) 50% discount. You don’t need their birth date – which they will be protective of due to identity theft. You only need the month. During their birthday month, a simple offer or add-on that is special to them is all you need. Do you have any low cost, high perceived value services that could be given away with purchase during their birthday month? Make sure it’s clear to them that you will use this info to send them something of value during their birthday month – and stick to that.

The alternative is to keep paying more for leads. There are only so many people in your market. Nurture your clientele and show them you’re always thinking about how to help them. Win the long term game.

Strategic Notepad: Customer Service

Last week, I noted that how you should recover from a client’s poor experience with you is dependent upon the context.

For example, a four hour flight delay is meaningless if you have a six hour layover. It becomes serious if you have a three hour layover before an international flight late in the day, or if the delay causes you to miss an important meeting, a wedding, or a funeral. If the delay causes you to get bumped to a connecting flight later in the day, it might not be a big deal. If it causes you to get bumped to next Saturday…

Context matters a lot.

Serious context is a serious opportunity

When your client is under pressure, deadline, stress or similar, you have an opportunity to create a memory that can last a lifetime. Will that memory be good or bad? Whichever way it goes is likely to be how your relationship with that customer… unless you treat them like a client.

What’s the difference? A customer is a transactional thing. Customers buy and consume “stuff”. Clients are like patients – under your constant (or at least regular) observation and care. Which are you more likely to take better care of, based on that definition? My guess is the client. Despite the definition, it’s all about perception. If you perceive them as an asset to be cared for (and to extract revenue from for a lifetime), you’re likely to treat them differently than you would if you think you might never see them again. Thing is, if you treat them like you’ll never see them again, you might experience that.

The opportunity to save the day / be a hero in your client’s most stressful, pressured, awful moment is a gift – but only if you open it. Sure, you might push COGS a little higher for their transaction. You might take a little heat from your manager if you take the initiative to solve a client’s problem in a slightly unorthodox way – but not if they truly get it because they’ll know you’re protecting the business.

Are you encouraging initiative?

One of the things that seems to be getting being “beaten” out of employees these days is initiative. Evidence? The fact that people are so impressed when someone takes initiative to help them as if they read the Business is Personal playbook. Businesses have produced a generation of workers who fear helping clients in an appropriate manner (when context calls for it) because not adhering to policy and procedure is often considered as a firing offense, even if you acted in the client’s best interest.

Even if you can’t stretch, provide options

Last month, I reserved a car rental with a pickup at 3:00pm. The rental location address provided by the vendor was wrong – fortunately it was wrong by a few blocks (and across the street). However, the rental location closed at 3:00pm and the nearest open branch was about 50 miles away. After waiting on hold for 54 minutes, customer service basically said the whole thing was my fault because I arrived a few minutes after the pickup time. By the time my call came off hold, I was more than an hour’s drive from their only open location and due to my appointment schedule, I was unable to visit that location. I made it clear that I was more or less stranded but my comments were ignored.

How could this have been handled – even if the customer service person couldn’t spend a dime? They could have offered to send someone to pick me up – but at 5pm on a Saturday (which tells you how long I was on the phone), there was no extra staff at the airport to shuttle a car to me. Had they said they checked and couldn’t do that due to a lack of extra staff on duty, I would have appreciated it. They could have asked which hotel I was at and (because they are a travel agency), offered to rebook me at a hotel close to me and have the car delivered the next morning.

Instead, they chose to blame me for the entire situation. They were focused on shifting blame, rather than helping a client juggling business and family travel on a very important family day. I will not forget and neither will your (former?) clients.

Protect your business by protecting your clients.

Protecting your business

Business owners protect their business by reducing risk, managing cash flow, getting appropriate legal advice and insuring their people and assets properly. Most businesses decide to check out motor trade insurance instant online quotes and look for the company that suits them. The thing is, you can do those all things properly and still leave your business open to damage that’s incredibly difficult, expensive and time consuming to repair. How? By providing out of context customer service.

Specifically, I’m referring to what tends to occur when you’re trying to recover from a mistake. The perfect time to show them you have their back… or to turn your back.

Which do you do?

Every once in a while, you make a mistake. Hopefully you learn from it. If it was caused by a systemic failure, you know by now to put a system (preferably automated) in place to prevent it from happening again and of course, integrate it into the rest of your systems. If it wasn’t caused by a systemic failure, then the problem might have been caused by a customer service flub, a product or service mistake, or a failure to deliver – regardless of the reason.

What happens next is where I see businesses repeatedly making a mistake: How they recover for the customer. That’s when context becomes critical.

Recovering FOR your client

When approached by a disappointed, angry, concerned, distraught customer, it seems that many businesses have trained their people such that their Customer Service Prime Directive is to protect the business at all costs.

Guess what. Recovering from your mistakes in a way that preserves the customer relationship IS protecting the business, but only if it’s done right. While protection of the business is essential in these circumstances – your legal paperwork and insurance should have already done that. The third leg of the stool is how the customer feels when the exchange is over.

Consider what happens if a flight attendant accidentally spills a cup of black tea in someone’s lap on a plane. The passenger’s linen skirt is stained (a bit embarrassing for now), but it could impact the skirt wearer’s day severely if they’re being met at the airport by an important new prospect. What if their next direct manager is meeting them at the airport for an interview? What if the flight arrives at midnight and the traveler simply has to grab their bag and drive home alone at midnight.

The subconscious loss of confidence in the client / employment situations could alter the airline client’s entire life. Maybe that’s good, maybe not. How the airline reacts FOR their customer can determine how that customer feels about them for the rest of their lives. People remember how they were treated – particularly in situations like this. The context the client provides (even if you have to extract it from them) is critical to the level of your response.

I’m reminded of a surprise Peter Shankman received in 2011 from Morton’s Steakhouse after he jokingly asked for a steak to be delivered to Newark airport. You might think that was an expensive response resulting only because Peter had a lot of Twitter followers at the time. I think they saw an opportunity to make a lifetime memory for a good customer, even if they knew that he’d blog/tweet about it. Five years later, where do you think he takes clients to dinner more often than not?

How you recover for the client in their current context is everything. If Peter was landing in Missoula (which has no Morton’s), then a clever tweeted response might have sufficed, though they could take if further if they had a connection to a solid steak house in MSO.

In Customer Service, context is everything

Sometime’s a “Sorry” and replacement / discount will suffice. Sometimes, the client’s context makes your $154 mistake a memory that could last for years. Imagine you had a romantic evening out of town planned with your significant other and when you arrived at the hotel, they didn’t have a room – even though you’d paid in advance. What if the town is booked solid because of a local event? There’s “no room at the inn”… ANY inn.

How you protect the business is everything at that point – keeping in mind that the wrong kind of business protection creates customer defection. If you’re going to create a lifetime memory, make sure it’s a good one.

On the playing field, little things matter

Saturday was a bit of a football day. I attended my first Griz game, watched my Razorbacks disintegrate in the fourth quarter (yes, again) and stayed up late watching a fascinating, action-filled Utah / Cal game.

It was a day full of watching highly skilled athletes do little things that have a substantial impact on their success – or fail to do them.

On the way to a great night on the field, Utah’s Devontae Booker did a little thing that many running backs don’t do. For example, when he ran up the middle and found himself stuck in a pile, he didn’t simply keep driving as if he thought he could push a pile of 10 guys somewhere – he turned and ran around them.

The Griz failed to do a few little things, one of which was managing their use of the clock near the end of the game. With less than three minutes left, they managed to use 90 seconds to run three plays and punt. Some teams drive the length of the field in 90 seconds. This time, nothing of substance was accomplished.

In each of these three games, little things contributed substantially to each team’s loss or win. All the teams involved are capable of operating at very high competency levels, yet these little things forgotten even once in some cases can nullify everything they’ve accomplished that day.

The same little things that have a transformational effect on the field are exactly the kinds of things that make or break your customer experience on a hour to hour, day to day basis. That’s your playing field.

What are YOUR little things?

If you and your staff aren’t sure or aren’t on the same page about what your little things are, make a list. Once you have a list of your own, have your staff make a list. That’s where most people stop.

To really standout, take that list and prioritize it. Once you’ve done that, share it with a few trusted clients. Ask them to prioritize the list from their perspective. Ask all of your clients on occasion what little things make them come back to you.

Once you’re there, training is essential to keep these skills sharp. Yes, it’s a skill to keep the little things top of mind and perform them well, rather than simply going through the motions.

These little things may not be obvious and your staff may not think they are a big deal until you explain WHY they are and how they bring back clients repeatedly. If you aren’t absolutely sure that your staff ties the return of clients to their job security, be explicit about it. Explain how much a lost customer costs and how many lost customers translate to a job.

Repetition and training matter – but they matter more when you give them context. Not everyone sees the big picture like you do – and some may see it differently or better, so discuss it as a team.

Too busy to deal with little things?

We all react differently to increased workload, pressure and a larger than normal number of customers (internal or otherwise) demanding our help at the same time. What often disappears from your customer experience under these circumstances are these little things. Courtesy is often one of them. We communicate less in order to get the task done and to our client, it feels like an uncaring interaction.

The costly part of these failures is that at a time when your people are stressed with how busy things are, your clients are too. How you deal with them under these circumstances is a big deal. These little things can be easy to forget when you’re in a hurry, under pressure or dealing with a lot of people at once. When your team is fully present, focused and attentive to the client in front of them and their transaction and is focused solely on that (even if the client is on the phone), the experience is memorable. When the mindset is “I must get this done quickly so I can get the next 22 people taken care of“, the customer experience will suffer.

The emphasis on these little things, along with reminders and training are critical to getting your company to the point where these things happen as a natural part of doing business without explicitly thinking about them.

Experience management matters

Delivery of a product or service is about far more than the act of your client opening the box or getting the service they paid for. The total experience matters, so you’d better manage it. An example should give my assertion the context it needs to clarify why experience management is so important.

A need to know basis

I recently flew a major airline from Chicago to Kansas City. In the middle of the boarding process, one of the gate agents came out of the jetway, halted all boarding halfway through zone three’s entry to the plane, got on the phone and then disappeared back down the jetway.

About 10 minutes passed without a word from anyone at the airline, including the agent minding the boarding pass scanner. Finally, the agent who halted the boarding process came back out and gave the boarding agent the all clear to resume boarding. All of this happened without a word to passengers. Clearly, we were on a need to know basis and we didn’t need to know.

I tweeted a comment about the situation. After my flight, a subtle dig from the airline’s Twitter account reinforced the culture that leadership has established, and is perhaps indicative of the kind of mindset the recently departed CEO put in place.

Why experience management matters

Did our lack of awareness of the boarding situation affect the final outcome of the flight – a safe on-time arrival? Of course not.

Did our lack of awareness of the situation positively influence our confidence in the provider’s ability to consistently and safely deliver the service we purchased? Not really. Instead, it gave the impression that delivery is all that matters – an assertion that doesn’t hold water.

It isn’t as if the passengers on the flight needed to know why we our boarding was temporarily delayed. The nitty-gritty details may negatively affect your confidence in the business delivering the service – and could roll downhill to your thoughts about the safety of that delivery. Even so, knowing that the delay is not unusual, will be cleared up in 10 or 15 minutes and will not affect an on-time departure is enough information to calm a nervous group of passengers who might be concerned about safety, about making a connection, or the likelihood their flight will actually happen.

Simply stating these three details (situation normal, expected time till resolution and lack of impact on delivery) will do the trick. Taking these few issues off the table improves the experience, communicates that you have your clients’ back and understand the importance of delivering the service as well as the issues that define its importance to your clients.

An opportunity to build

When you can build the client’s confidence in your ability to deliver and improve the credibility you have to trust that you can handle whatever comes your way, use the opportunity humbly.

It reminds me a good bit of the refrigerator sheet story that I use to demonstrate how a real estate agent provides a confidence building framework of “things that frequently happen during a real estate transaction that I routinely handle for you so don’t sweat them“.

The same airline missed an opportunity to show their understanding of the nature of their clients’ use only a week earlier. I was flying out of a small rural airport on a very small regional jet. It was the first flight of the day in this tiny little plane leaving an airport that is not a hub. This means that the first flight of the day is always going to be boarded by clients who need to make a connection in a hub city so they can reach their intended destination.

On a plane that only seats 50, this produces a group of people who are not inclined to give up their seats, unlikely to miss a flight due to a connection and unlikely to have an opportunity to easily book the next flight out without repercussions. The logic that this sort of rural flight would be overbooked by 20% ignores all of these qualities / needs of the passengers involved, yet the 20% overbooking is exactly what happened.

At a hub airport, we may not like overbooking, but it’s easy to understand the justification. The combination of first flight out, rural airport and small plane make it an anti-customer decision that sets the company up for a bad experience for their entire service delivery experience – a situation you don’t want to create.

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.

The most expensive, most stressful thing on your desk

Nothing destroys a work day like distractions.

Ever realize that it’s “suddenly” dinner time and all you remember doing since lunch is reading Facebook?

That’ll show up nicely on a deposit slip. Hello, stress.

Distractions are a product of your work environment, your work habits and how those two things are communicated to others.

Your work environment

What you surround yourself with is critical to your work. Clutter doesn’t help – and I mean clutter of all kinds – physical as well as electronic.

These things are waiting to distract you, so you have to eliminate them from your work environment. Eliminate doesn’t necessarily mean trash.

Electronic clutter is particularly distracting to me, so I’ve surrounded myself with systems that “protect” me from it. Instapaper helps me get rid of open browser tabs that I was saving to read. Things, a GTD-oriented system, helps me store ideas and to-do items on notes, in my head, in emails, etc.

Because I know they’re not “lost”, they don’t clutter up my browser, mind, desk or subconscious. Don’t take the last one lightly. Worrying about forgetting something is very distracting.

Random phone calls are also a form of clutter, so I only take calls by appointment (with very few exceptions). I know – you think you can’t do this without losing sales. I thought the same thing.

My tools may not fit you. Use what fits. Discard what doesn’t.

Your work habits

Last night at a local restaurant, I spoke with one of my Scouts who’s home from college for the summer. He’s in amazing physical condition and has been for years, despite being a skinny little guy years ago. He says people often say they want to “look like him”, but they don’t want to do the work he did to get that way.

He tells them it’s as easy as working out every day, which may be hard to do until it becomes a piece of your life you aren’t willing to give up for anyone – even your immediate family. That hour a day that no one (or nothing) can take from you for any reason isn’t neglect. It’s building a better you so you can be better for them.

Habits are just as critical at work.

One of my mentors would growl “Just do more of what matters. Make more time by doing less of what doesn’t.” While he’s right and yes, it’s common sense, most people need help doing it.

Consider the three most important tasks you need to finish next week. Do you have to think about it to remember them? That’s not good.

I use my calendar and Things to tell me those three tasks. Neither tool forgets. I review Things every weekend and schedule work tasks on my calendar as if they were meetings, speaking gigs or other commitments.

In an age where you can watch TV on your phone and people can contact you almost anywhere, you have to take managing yourself seriously. Scheduling things (even blog writing) in my calendar is how I make sure that the important things get done – including family stuff and paying bills.

A full calendar makes it easy to say no to less important things you don’t have time for. If the important things like work and family are booked first, stuff that doesn’t matter enough has no place to go.

How those two are communicated to others

People appreciate when you don’t immediately answer your phone, but always return their call.

People appreciate when you don’t immediately reply to an email, but always reply.

People appreciate it when you don’t miss a ball game, a play, a concert or a night out, even if you have to work afterward.

When people see you glance at and then ignore a vibrating phone while in a meeting with them, they’ll ask about it the first time. When you tell them that you aren’t answering because you booked this time solely to give them 100% of your attention, your previously “unreasonable” call policy suddenly becomes reasonable.

If you work (or play) with focused attention, people will notice and appreciate it.

You mentioned stress. What about that?

How much stress would you have if you didn’t forget important things and routinely completed them?

 

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Disclosure: I am blogging on behalf of Visa Business and received compensation for my time from Visa for sharing my views in this post, but the views expressed here are solely mine, not Visa’s. Visit http://facebook.com/visasmallbiz to take a look at the reinvented Facebook Page: Well Sourced by Visa Business. The Page serves as a space where small business owners can access educational resources, read success stories from other business owners, engage with peers, and find tips to help businesses run more efficiently. Every month, the Page will introduce a new theme that will focus on a topic important to a small business owner’s success. For additional tips and advice, and information about Visa’s small business solutions, follow @VisaSmallBiz and visit http://visa.com/business.