Categories
customer retention Lead generation Marketing Recurring Revenue Sales Small Business

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?

Categories
Customer relationships Direct Marketing Getting new customers Lead generation Sales Small Business

The care and feeding of leads

Last weekend, we did a little shopping for a “large recreational purchase”. We hadn’t shopped in this market before, so you wouldn’t have been surprised that I would have my radar fully unfurled to analyze all pieces of the process.

While I can’t say that I was blown away, I also wasn’t substantially disappointed. Let’s talk about the experience.

What happens to new leads?

We walked from the parking lot to the showroom without interruption, but in short order (less than a minute), someone at the reception desk (who was busy when we walked by) called out to us to see if she could provide some guidance. Perhaps we looked lost, but I got the idea that this was normal, whether the shopper is lost or not.

Yep, she could provide some guidance. She asked what we were looking for and a sales guy appeared pretty quickly. He engaged, asked good questions to find out what we were looking for and in what price range and then asked if it was ok to produce a plan for us.

“Produce a plan” in their lingo meant to enter a rough cut at our needs into their software, which would produce a list of their inventory items that matched our stated needs. This gave the guy what amounted to a shopping list (including lot locations of their best fit items in their inventory), which was designed to show us only what we fit while saving us a little time.

Given that their inventory is quite large and spread out all over creation, this seemed like a reasonable step. They clearly are not setup for self-shopping, and given the inventory and space you’d have to cover in order to do that, this is a good thing.

I have seen a similar process used effectively in real estate, but at that time, we were turned loose with a list of properties and placements on a map. The give them a map and turn them loose idea works for real estate as long as the prospect knows the areas covered by the map – since the prospective buyer would also know what neighborhoods or locations they aren’t interested in. Where possible, this info should be gathered before producing the map.

The idea in this case was to use the time to travel the lot, learn more about what we’re looking for and show us a few things that will help us determine what we really want, vs. what our newbie first-impression-driven wants might cover.

Talking to leads

As we progressed through the plan’s list of inventory to check out, the conversation was all about the salesperson’s experience with their purchases, questions about what we did and didn’t like about each inventory piece and some perhaps not so obvious tips about sizing, minor differences between each piece that could make a major difference in our experience and similar.

We discussed his background with the purchase we are looking at, and how he earns his customers for life – including the newsletter he mails to them each month. We’re talking about a newsletter with tips, a photo of his family, a recipe and news his clients need. A smart step that I rarely see.

As we reached the end of the plan, it was clear to us and to the sales guy what was going to work and what wasn’t. While we weren’t ready to nail down a purchase right that minute, he did ask – and as I told him, I would have been disappointed in his sales training and skills if he hadn’t.

You have to ask. You don’t have to be poster child of bad sales people, which he wasn’t.

Improvements when handling leads

While the sales process was not annoying (kudos for that), the lead handling process needs fixes.

  • No contact information was collected. Without contact information, they have no way to check in (without being pushy) and see how they can help us. Giving us a business card and a brochure isn’t enough.
  • We weren’t asked if we wanted to get his newsletter.
  • We weren’t asked why we stopped there instead of the litany of competition, or if this was our first visit to a store like theirs.
  • We weren’t provided any info to reinforce that we’d chosen the right dealer.

Leads must be nurtured and cared for by both your people and software systems.

Categories
Getting new customers Lead generation Sales Small Business

The sales that hide from you

How do you know when a lead is no longer interested in buying? How do you know when they are ready to buy? What signals do you detect that signal a buy is imminent or that the prospect has at least decided but isn’t ready to order?

Certainly we know when they’re ready if they provide a purchase order number, or request an invoice, but there should be additional signals as well. You and your sales staff can probably identify these, but are they collected and acted upon systematically?

As with service follow ups we’ve discussed in the last couple of weeks, we often fail to connect with “stale” or inactive leads because, we simply don’t think about it, or we have no system for doing so.

Often, sales follow ups occur only because we’re desperate to close a sale or because our quota period ends soon and we aren’t quite at our quota. While those triggers might be important to you, your sales prospect follow up system should also trigger follow ups based on points in the sales process that are important to your prospects.

Typically, the only way to detect such triggers is monitoring and recording information that provokes a decision to buy (or not) by a prospect. How do you currently do that? What signals can you think of that have historically told you that someone is ready to buy, or that they are ready to take the next step in the process that typically results in a sale?

Why and when to follow up with prospects

What if your sales follow ups were strategic and more purposeful than “quota approaching” or “desperate for cashflow”? If they were, you would have a timeline of follow ups for each lead (or each type of lead) for your products, or for each product, as you have time to fine tune the process.

For example, if you know that prospects typically take 32 days to decide on a purchase in your market, you would follow up in the days just approaching the 32 day timeframe.

If you determine that that there are other signals that indicate decision making and you can detect those in a follow up, why wouldn’t you do that follow up? As with the support and service follow up, the reason is usually the lack of a system.

Nine word emails?

One of the tactics in common use is the nine word email – though this tool can be used in emails, calls or text messages.

The email, call or text message doesn’t have to be exactly nine words, but the key is to keep things very succinct and free of baggage.

A nine word email looks like this:

Carla,

Are you still looking for a fifth wheel camper?

Mark

The point is to engage, and re-kindle a conversation. People are busy. They forget. A nine word email can take care of those tasks.

Following up in the sales department

Your job is to remind them so you can check and see if they’re ready to buy. If they aren’t, but they’re still interested, then you can include (or re-include) them in your sales follow up system in case they aren’t already there.

The task takes fine tuning and care. Your attempts to check in can be perceived as badgering (you’ve been there) or worse. Be sure that your attempts are well-timed, not too frequent and about their needs, not yours.

One frequent mistake I see is follow ups whose topic is the end of the month, end of the quarter or the end of a sales contest or quota period. While those things might be important to you – there’s not a single reason for your client to care about these things. Sure, prospects are sometimes aware that end of month and end of quarter timeframes often yield better deals, but if they’re at that point, you should already have signals that they’re about to buy. Make sure the follow up is about them, not you.

Learning and testing the timing of your sales follow up is critical. What timing is most critical when a follow up results in a sale? What are the next two or three critical points? What additional information do they need to decide to buy, even if they buy from someone else? After the sale, which follow up is most effective at preventing refunds?

Categories
Employees Getting new customers Sales Small Business

Everyone can sell – and they should

This past weekend, the Mrs and I went out looking for a gym. It turned into a lesson in sales and sales prevention.

We had three options: A family-oriented place near our grandkids’ house, a place within walking distance and a place within a few minutes drive, even during our very brief rush hour (which is more like rush-a-few-minutes).

Family friendly

We were greeted at the door, offered a tour to show us the facility and explain how things work, particularly for members who want to involve young kids. When the tour was done, our guide returned us to the front desk crew who greeted us. They answered a few more questions, gave us paperwork and told us what to do next to join.

While it wasn’t clear that the staff had any sales training, it was obvious they had a process in place to help prospective members learn about the facility and the programs they offer. They responded to our unscheduled arrival without difficulty and accepted this work as part of their job.

Drivable

We were greeted nicely as at the family place. The front desk staffer offered to give us a guided tour or said we could look around on our own. We chose to fly solo. When we returned to the front desk, the staffer made sure we understood what made them different from the other clubs in the area, and let us know that there was no signup fee through the end of the month, and did so without making a sales pitch. After getting a few more answers, we moved on.

At this facility, it was unclear if the staffer had been trained sales-wise, but it was obvious they had a process in place to help prospective members learn about the facility and the programs they offer. Likewise, it was clear the front desk staffer accepted this as part of their job. Like the family place, he responded to our unscheduled arrival without difficulty, as if there was a process and some prior training to deal with the needs of prospective members and their questions. It was clear that he accepted this as part of his job. Of all the places we visited, this one left us with the best end-to-end impression.

Walkable

We then stopped at the place that’s a few minutes walk from our home. Proximity is a big deal to us these days. We often walk to dinner, local craft breweries and other activities because these things are fairly close and easily walkable.

We walked into the club and told the young man at the front desk that it was our first time there, mentioned that we were considering joining and asked if we could look around. His response was that there was no membership staff available (midday on Saturday) and said “I’m just the front desk guy.” He seemed a bit uncomfortable with being asked to show us around and/or answer questions. He made it clear that he wasn’t allowed to leave the front desk, so we asked if we could look around on our own and see how well their club fit our needs.

He said “Would you like to buy a day pass?“, so I reiterated that we just wanted to look around for a few minutes and check the place out. He replied that we couldn’t do that. He wasn’t rude, yet he seemed fearful of doing something wrong and appeared to threaten his comfort zone. It made me wonder about his managers and how they treat him.

Nights and weekends matter

The people who work off shifts and weekends are an important part of your sales team. Everyone can sell if they are trained to be helpful. Don’t scare them, prepare them.

The cost of not preparing them

Do the math: Lost sales / year x monthly fee x average-months-of-membership (which each facility should know), then compound that week-in, week-out.

If you lose one $70/month family membership sale per weekend and you retain members for two years, that’s a loss of $87,360. One lost sale per week for 52 weeks, times the lost revenue of $70 for 24 months.

If you retain members for five years, losing one sale per weekend balloons the revenue loss of $218,400. That’s one lost sale / week for 52 weeks, x the lost revenue of $70 / month for 60 months.

Sales training matters – for everyone.

Categories
Corporate America Getting new customers Positioning Sales Setting Expectations Small Business

Selling to everyone

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

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

They’d better.

Sales calls: How they react

What’s your reaction when a salesperson calls?

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

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

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

Sales calls: How they want to react

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

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

Why am I qualified to propose these solutions?

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

My prospect / client fits us well because…

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

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

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

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

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

Selling to everyone means selling to anyone

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

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

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

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

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

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

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

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

Categories
Competition Customer relationships customer retention Employees Getting new customers Leadership Marketing Positioning Sales Setting Expectations Small Business Word of mouth marketing

ROI: Why they don’t take your call

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

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

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

ROI and the Why-To-Buy

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

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

What’s your reaction to sales calls?

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

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

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

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

Nice Presentation?

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

These complaints include:

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

Consider whether your presentations exhibit any of these qualities.

What they want to experience

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

This person…

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

Getting buy-in

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

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

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

Categories
Automation Business model Customer relationships Direct Marketing Getting new customers Lead generation Management Productivity Sales Small Business tracking

Where does new business hide?

In every town, there’s a place where new business hides.

If you can’t find its hiding place, your business is likely to struggle.

Most of the time, that struggle is rooted in the inability to dependably produce predictable, month to month revenue.

Without predictable month to month revenue, businesses close, scale down or at the least, fail to reach their potential to support their owner, their family, their employees’ families and their community.

Revenue consistency problems influence a business owner’s decision making because their decisions end up being driven by cash flow. Decisions based on sales you made last week (much less yesterday) rarely fit into a long-term strategic plan.

Predicting revenue isn’t all that difficult. You simply have to check the Sales Thermometer.

What’s a Sales Thermometer?

Imagine that there’s a thermometer on the front door of businesses and homes that told you to pull in and sell something to someone because they had developed a need or a want that *had* to be fulfilled.

Armed with a town full of sales thermometers, you’d have all the new business you’ve ever wanted and wouldn’t waste a bit of time chasing around town after people who didn’t want or need what you sell.

Instead, you’d simply drive through town, check the thermometer and stop at the places where the temperature was the highest.

On days when you need a little extra revenue, you might get up a little earlier and drive around a little later so you could check more thermometers. 

Once you took care of the places with the hottest temperatures, you could retrace your steps, scan for the next highest set of temperatures and take care of those sales.

As the sales thermometer readings change on other homes and businesses, you’d see them during your travels so you could pick up on the newest opportunities for new business – simply by being observant.

Scaling

There is a downside to this sales thermometer thing. It has some scalability issues.

For example, you can only drive so far in a day and every customer who takes an hour of your time consumes an hour that you can’t use to check other thermometers. That will eventually force you (subconsciously at least) to stop and work with only the hottest thermometers.

If only there was a way to automatically check the hottest thermometers without spending all that time driving around.

Fortunately, there is.

Getting new business isn’t a joke

While talk of a sales thermometer seems like a bit of a fantasy or even a joke, your business’ inability to consistently produce new business from existing and new clients is no joke at all.

If your business struggles with that, the problem isn’t the lack of a thermometer. The problem is that you aren’t reading it. 

The sales thermometer in the information you should already have about your clients and prospects.  The thermometer’s temperature is driven by behavior and interaction, both yours and that of your prospects and clients.

Those behaviors are like a patient’s symptoms. Monitoring  and acting on them in a predictable, repeatable, systematic way is what gets your business to the point where you *can* produce consistent, predictable month to month revenue.

Random revenue from new business is an indication that you’re not watching and acting on these symptoms on a consistent basis. We all know we need to do these things, but sometimes we get sidetracked by the crisis-of-the-day.

While they should be acted on individually for each prospect or client, these symptoms should also be grouped together (aggregated) to help you monitor the health of your business and your market.

Things that drive up temperatures

What causes rising temperatures?

  • Interaction behavior changes.  You should know when someone is paying more attention than a typical prospect. Do you have a way to detect this?
  • Sales cycle behavior changes. You know how long it takes to close a sale. Is that timeline changing? Are certain prospects skipping steps in the process? Is their path-to-purchase pace is faster than normal? If so, does your internal behavior toward those prospects change to suit their timeline?
  • Purchasing behavior changes. For example, customers who are buying more (or less) often than they normally do. Even if you’re tracking sales on paper, you can monitor this .

Are you monitoring the sales thermometer?

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
Advertising Competition Customer relationships Direct Mail Direct Marketing Email marketing Getting new customers Improvement Internet marketing Lead generation marketing to the affluent Marketing to women Sales Small Business Social Media strategic planning The Slight Edge

How to segment your customer list

Have you heard that you should “segment” your customers before marketing to them?

Ever wondered what that means, much less how you’d do that?

We’re going to talk about that today in simple terms, but before we do that, you might be wondering …

Why should I segment my customers?

Good question.

You want to segment your marketing is to achieve something called “Message-to-market match“.

Let me explain with an example. Let’s say your company sells women’s underwear.

Would you advertise the same underwear in the same way with the same photos and the same messaging to each of these groups?

  • Single women
  • Pregnant women
  • Newlyweds
  • Moms of girls approaching puberty
  • Dads of girls approaching puberty
  • 50-plus women
  • 80-plus women
  • Women under 5′ 6″ tall
  • “Plus sized” women
  • “Tiny” women
  • Very curvy women
  • Not-so-curvy women
  • Women who have survived breast cancer
  • Significant others

I’ll assume you answered “No”.

Message-to-market match” means your message is refined for a specific group of recipients so that it’s welcome and in-context, rather than annoying and out of left field.

A lack of message-to-market match is why people tune out ads and pitch so much mail – the message isn’t truly for them. If it happens enough times, everything you send them is ignored. Ouch.

Like the recycling bin

When recycling different materials, the processes required to break down cardboard (shredding, pulping, etc) will differ from the process that prepares glass, plastic or animal manure for reuse.

Think of your messages in the same way. If the message a customer receives doesn’t make any sense because it’s out of context, it’s like recycling something with the wrong process. The money, time and energy invested in creating and delivering the wrong message will be wasted. Worse yet, the wrong message can alienate your customer and/or make your business look clueless.

Ever received an offer “for new customers only” from a business that you’ve worked with for months or years? How does that make you feel?

You might think a generic piece of news is received the same way by everyone – when in fact that news might excite some customers and annoy the rest. The time spent considering this and segmenting your announcement can save a lot of pain.

Your First Oil Change

Look at the groups listed for the underwear business. That’s customer segmentation.

If you sent “The Single Dad’s guide to helping your daughter pick out her first bra” to the entire customer list, how many would think “This is exactly what I need”? Only the single dads group. Most others would hit delete, unsubscribe, click the “Spam” button or just think you’re not too swift.

The smart folks sending the “first bra” piece would break it down further by sending a different guide to the moms than they send to the dads.

Need a simpler version? Chevy vs. Ford vs. Dodge. Harley vs. every other bike. You shouldn’t have the same conversation with these groups, even if you sell something common to all of them, like motor oil.

Think that list is broken down too much? Don’t. I just scratched the surface.

Why people think they can’t segment

– They don’t have or “get” technology.

Whether you use a yellow pad or a fancy customer relationship management (CRM) system, you can make this work. If not, consider a better way to keep track of things.

Long before computers, savvy business people would sort customers into the “blue pile, red pile, yellow pile” before putting together a marketing piece. No technology is no excuse.

– Their media doesn’t offer segmenting.

What if your chosen media doesn’t provide a way to target a specific segment? They don’t deliver special Yellow Page books to single people, retired people, CPAs or car dealers – so how do you segment your message?

You can segment those media buys by message since many vendors are unable to deliver a different book, newspaper, magazine or radio/TV ad to different types of customer – which should also improve ad ROI.

You might be getting pressure from internet-savvy staff (or vendors) to drop old-school media. If it works now (do you know?), dropping them makes no sense.

– They don’t have a customer list

Start creating one today, even if it’s on a yellow pad. Figure out what differences are important to you and record them.

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Start a streak

What have you done every day, every week or every month for years?

For example, I’ve written a weekly column for the Flathead Beacon since 2006.

I don’t get a week off from the column if it’s Christmas or the Fourth of July. It just gets done.

Some find that a massive, if not surprising, achievement. Others see it as if it were a ball and chain.

Me? It’s just something I need to get done every week. Some weeks, it’s harder than others – but I still make sure it gets done – and yes, I’m better at getting that done regularly than I am at some other things because I’m accountable to the community who reads it.

The value of that accountability shouldn’t be discounted. It’s a powerful tool and motivator.

Think about it

Think about the consistency of the tasks *you* perform to grow your business. Would more consistency in how you podcast, blog, tweet, vlog, post to Facebook, send an email, make a call, drop a mailing or send a newsletter mean more/better business? Would adding a new item to the list make more of an impact?

Of the things you do regularly, which of them produce the best response? (if you don’t know – fix that)

Would it help if that work was done more often? Think about it.