Insights, Ideas, Results
In the previous post we mentioned that you need to hear customer and employee stories in addition to looking at formal reports and metrics.
One of the ways you can do this is by asking open ended questions to your customers, employees and other business owners to understand the reasons behind numbers. Below we have identified 10 questions that will get them talking.
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In the previous several posts here , here and here we have discussed how looking at performance metrics helps understand how your business is performing. We also mentioned that you should be looking at the reports on a daily, weekly and monthly basis to stay on top of your business.
The reason you want to look at the metrics is simple – numbers don’t lie; people do. However, from our experience as past business owners we have noticed that numbers tell only part of the story when trying to assess business performance. The metrics tell you what is happening to the business. They don’t tell you why. You have to dig deeper to understand why the numbers are what they are. For example, let’s say you are looking at sales going down for the last several weeks. You want know why this is happening. Further investigation shows that the customer count has been declining in that same period. But this still doesn’t tell you why customers are not coming to your business leading to declining sales. It may be because they are not being served well; maybe there is another competitor in town and so on.
So how do you go about collecting the anecdotal stories to understand the reasons behind the numbers? There are several ways you can do this.
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In our previous post we argued that if you are not using Internet and Social Media for marketing you are wasting lot of advertising money. Not only that; but you are also missing an opportunity to reach large number of customers who are increasingly on the Internet. The central tenet in selecting an advertising platform is that you should advertise where your customers are and these days your customers are spending more and more time on the Internet as opposed to traditional platforms such as television and newspaper.
Advertising on the Internet can take many different forms. They are suitable different businesses and budgets. You should look at all the possibilities and select the ones that fit your style, budget, capability and customer preference.
Below we have identified several avenues for Internet advertising along with their characteristics and trade-offs they present.
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Advertising is the rope that pulls customers in to your small business and keeps them coming. Many small businesses spend as much as 6-8% on advertising either through franchise marketing fund or on their own. In spite of spending so much money on advertising many business owners are dissatisfied with the return they are getting on their advertising spend.
One of the reasons small business owners fail to get appropriate return on their advertising spend is they do not choose the right platform to advertise their products. The choices are numerous when it comes to advertising. They range from traditional media such as newspaper and television to newer forms such as Internet and social media. Each of these platforms serves specific purpose. The key to getting good return on your advertising is to understand your goals and choose the platform that fits those goals.
Below we have highlighted the purpose served by these platforms and the type of advertising they are suitable for.
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For most small businesses coupons is a fact of life. In this difficult economic environment, when consumers are strapped for money and are watching their purse strings carefully, it is more important than ever to use coupons to entice customers to come to your business. Not all small businesses are created equal when it comes to coupons. Some businesses such as pizza use them extensively; while others are not so heavy users.
While it is important and imperative to use the coupons to improve your sales or at least hold to the customers you already have; you also have to have a good plan in place to use them effectively. To a novice it may seem that coupons serve only one purpose – to attract customers to your business. However, judicious use of coupons can not only improve your sales; but also help your business achieve other important goals.
Below we have identified different situations in which coupons can help achieve the results you are looking for.
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These days it is impossible to succeed in small business without spending significant amount of money on marketing and advertising. However, many small business owners feel that no matter how much money they spend on advertising they can’t seem to boost the sales they had hoped for.
We saw this happen to our business too when we used to own them. We would send out advertising inserts in the newspaper and direct mails only to see the sales go up by $300 – $400 in the following week. This doesn’t even cover the money spent on placing an advertisement.
After looking at this very carefully and talking to fellow small business owners we realized that the root of the problem was that we were just one amongst the hundreds of other small businesses who were vying for consumers’ attention.
To be successful in this advertising game you have to stand out from the crowd. You have to be unique, may be even idiosyncratic, to get attention of the consumer and bring them to your business. Below we have laid out several approaches that have been tried by several small business owners with great success. These approaches have generated huge jump in sales and brought in number of new customers.
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Many small business owners we have met have misconceptions about marketing. They think of marketing as doing flashy advertising with catchy pictures and some coupons in newspaper insert or with a direct mail company. This underestimates the power of marketing and the value good marketing can bring to your small business.
We ourselves have fallen into this trap when we owned businesses in the past. The reason many small business owners, including ourselves, do this is because of lack of time and lack of understanding of what marketing is all about. We have thought long and hard about this when we operated small business and afterward. Based on that we have come up with 5 fundamental rules of marketing that when used properly are sure to improve your sales. Here they are in no particular order:
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I came across this interesting article showing examples of excellent customer service from some of the companies you may already know. I am sure we all have experienced this type of customer service in our daily lives. Usually, it is easy to find this with small mom-and-pop businesses that are close to their customers and know them by names. We wrote one such example in my personal life not too long ago here.
We have come across some more well-known companies that strive to provide the best customer service every day. Below we have listed some of them along with examples of why they are famous for their customer service.
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In the previous blog post we argued that for many small businesses their best customers contribute more than 30% of sales and profit even when they make up only 10% of total customer. We said that you have to make these customers feel special by giving them special treatment and recognizing them.
In this post we will explore additional ways by which you can treat your best customers in a special fashion.
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As we mentioned in the previous post on “Do you know who your best customers are?” for many small businesses their best customers contribute more than 30% of sales and profit even when they make up only 10% of total customer. Not only this; but there is additional benefit they generate for your business that is equally important. They are also your evangelists. They bring in additional business by spreading word about your business to their friends and families.
Given the importance of these customers to your business it is imperative that you take good care of them and give them special treatment. These are, after all, the customers that will help you grow your business.
So how do you treat these customers well and pamper them? The key to remember, when taking care of these customers, is to make them feel special. After all, they are kind of special to your business! You should not limit yourself to discount and free products when providing them special treatment; although they are important. You should also think about intangibles such as recognition, appreciation, etc.
Below we have listed several ways by which you can pamper your best customers and make them feel special. Feel free to add your voice in the comment section.
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