A question I'm often asked is, "What are the TV shows, cable networks and radio formats that rich people prefer?" Unfortunately, that's a question that has no answer. The simple truth is that mass media reaches the masses far better than it targets the rich.
Few advertisers realize the degree to which wealthy people are insulated from the marketing efforts that target them. Who do you suppose is most likely to own a TiVo device that allows them to fast-forward through TV commercials? Who is most likely to have a satellite radio in their car, along with a state-of-the-art CD player and a vast collection of commercial-free CDs? Who do you think has a secretary to screen their incoming calls and open their mail and throw away all the solicitations?
You guessed it: the rich.
Time and money are interchangeable. You can always save one by spending more of the other. The rich have always had more money than time. And now they've accumulated these new technologies that allow them to better hide from unwanted intrusions.
To be able to reach the rich, you must learn to pull instead of push. Here's how to do it:
1. Hang out in their hangouts. Familiarity is the product of repetitious proximity. In 1924, young and destitute Aristotle Onassis found the investment capital he needed after becoming a regular in an exclusive bar. The clothing he purchased and the drinks he bought to fit in took all the money he had, but his bizarre gamble paid off. Backed by the cash of his new pals, Onassis became the Bill Gates of his generation.
2. Become useful to them.
If you can't be where the rich and famous are, be in a position to do them favors. America knows the name Harry Winston because of the spectacular diamond necklaces he loans to young starlets to wear at the Academy Awards. The hugely expensive necklaces always get media attention. The canny result is that his jewelry store gets far more effective exposure each year than he might have purchased with $10 million dollars in advertising.
3. Put your product where they can see it. In a May 29, 2005, story in The New York Times, Jennifer Steinhauer quotes Juliet B. Schor, a professor of sociology at Boston College:
"In the last 30 years or so, as people have become increasingly isolated from their neighbors, a barrage of magazines and television shows celebrating the toys and totems of the rich has fostered a whole new level of desire across class groups..."
The fastest growing category in the world of marketing is called "product placement." For a price, your product can be written into the script of a TV show or major motion picture. Do you remember the year James Bond began driving a new BMW convertible? Or the Seinfeld episode where George buys a cashmere sweater in a trendy boutique? These things don't happen by accident. And when your product is in the show instead of in an ad, you're immune from TiVo fast-forwarding.
4. Target through copy. In your product category, what are the phrases the rich will likely type into a search engine? Have you seeded these phrases throughout your website? Pre-purchase research is increasingly being done online instead of in the store. So think of your site as a half step between the homes of the rich and your front door. How strong is the magnetism of your site?
5. Pull, don't push. Wealthy people are constantly assaulted by hype and overstatement from advertisers who get anxious and nervous, thinking, "Now's my big chance." But patience is the key to success with this group. Do you have what it takes?
Now that I've told you how to reach the rich, let me tell you why it isn't necessary. In that New York Times story mentioned earlier, Jennifer Steinhauer goes on to say that "Social class, once so easily assessed by the car in the driveway or the purse on the arm, has become harder to see in the things Americans buy. Rising incomes, flattening prices and easily available credit have given so many Americans access to such a wide array of high-end goods that traditional markers of status have lost much of their meaning."
According to Professor Schor, "A 'horizontal desire,' coveting a neighbor's goods, has been replaced by a 'vertical desire,' coveting the goods of the rich and the powerful seen on television. The old system was keeping up with the Joneses. The new system is keeping up with the Gateses."
Today a middle-income office manager may save her money to buy a single luxury item, like a Chanel jacket, the same one worn by a wealthy woman who has a dozen others like it in her $2.5 million house. While it may feel good to have the truly rich woman as a customer, you don't want to lose sight of the fact that for every one of her, there are at least 250 of those middle-income managers anxious to buy that same Chanel jacket.
Will you sell to the classes and live with the masses? Or will you sell to the masses and live with the classes? It's your decision.
Thursday, May 26, 2011
How to make money from your blog: 5 tips
Many people who write blogs today simply want to share their opinion on something. But then there are the business-minded folks, who have found a way to use blogs, or Web logs, to bring in a little extra cash too.
If you're interested in taking it further — blogging for bucks, if you will — here are five strategies that could turn your blog into a moneymaker.
1. Sell advertising. This is likely the most common means of leveraging a blog to generate income. If yours happens to become a well-known blog, or one that is well-received in a particular niche, it's always possible to sell ad space on your own. For Bing Blogs and services such as Google's AdSense or BlogAds, bloggers can establish ad programs. AdSense's — which lets you select several ads that are consistent with the content of your blog — pays you based on how many readers click on the ads for further information. Even better, it's free. BlogAds, on the other hand, hooks bloggers up with would-be advertisers and levies a commission in return for any ad placements that result. "The nice thing, too, is that the ads are relatively unobtrusive," says Scott Allen, co-author of The Virtual Handshake: Opening Doors and Closing Deals Online .
2. Help sell others' products. Here is another click-through opportunity. Affiliate programs enable your blog to serve as a conduit between readers and online sites offering various goods and services. One popular choice is Amazon.com. If, for instance, you offer book reviews or even just mention a book in passing in your blog, an affiliate program provides a means for your readers to click directly from your blog to Amazon to obtain further information about the book.
If they break out the checkbook or charge card, you get paid as well.
3. Solicit contributions. Not every blog-related income opportunity involves hawking goods or services. As Blanche DuBois said in A Streetcar Named Desire, consider relying on the kindness of strangers. Ask for contributions. If, for instance, your small-business blog supports a cause or issue in some fashion — say you repeatedly mention tax reform, health care or some other topic — you can always ask or reader support. Even if you've attracted a group of regular followers who simply enjoy reading what you have to say, they may be willing to underwrite their loyalty with a little financial help. Programs such as PayPal make it easy to establish a simple on-site contribution collection button. "There are lots of worthy 'cause' blogs that would qualify for donations from grateful members of the blog community," says Las Vegas communications consultant Ned Barnett.
4. Market your services in your blog. Many people associate blogs exclusively with a cyberspace-based soapbox — a place to shout your opinions and little more than that. Granted, blogs are an ideal venue to share your thoughts with others, but don't overlook their capacity to generate new business as well. When appropriate, work in references to what you do and, in turn, what you may be able to offer any would-be client or customer who may be reading your blog. That can spread your opinion and your business moxie at the same time."Instead of short commentaries that begin a dialogue with readers, as many blogs do, I write the equivalent of journal articles that demonstrate my abilities, strategies and perspectives on specific issues," Barnett says. "When it resonates, it means money. Since starting this approach, I have generated three new paying clients and brought in about $10,000 on revenue — directly attributable to specific blogs."
5. Use a blog to deepen your existing customer relations.
Nor does any marketing material inserted in blog content have to be limited to bringing in completely new business. By using a blog to regularly communicate with existing clients as well as other readers, you can take advantage of the opportunity to fully inform them about everything your business does. That may expand your readers' understanding of the full scope of your products or services."My blog has helped existing clients determine the range of my skills and services," says Ted Demopoulos of Demopoulos Associates, a Durham, N.H. consulting and training concern. "One client who had only used me for training in the past was surprised at my range of expertise and is now using me for a consulting project. Another who only used me on technical projects is now considering me for a more business-oriented project."
Source: Microsoft
If you're interested in taking it further — blogging for bucks, if you will — here are five strategies that could turn your blog into a moneymaker.
1. Sell advertising. This is likely the most common means of leveraging a blog to generate income. If yours happens to become a well-known blog, or one that is well-received in a particular niche, it's always possible to sell ad space on your own. For Bing Blogs and services such as Google's AdSense or BlogAds, bloggers can establish ad programs. AdSense's — which lets you select several ads that are consistent with the content of your blog — pays you based on how many readers click on the ads for further information. Even better, it's free. BlogAds, on the other hand, hooks bloggers up with would-be advertisers and levies a commission in return for any ad placements that result. "The nice thing, too, is that the ads are relatively unobtrusive," says Scott Allen, co-author of The Virtual Handshake: Opening Doors and Closing Deals Online .
2. Help sell others' products. Here is another click-through opportunity. Affiliate programs enable your blog to serve as a conduit between readers and online sites offering various goods and services. One popular choice is Amazon.com. If, for instance, you offer book reviews or even just mention a book in passing in your blog, an affiliate program provides a means for your readers to click directly from your blog to Amazon to obtain further information about the book.
If they break out the checkbook or charge card, you get paid as well.
3. Solicit contributions. Not every blog-related income opportunity involves hawking goods or services. As Blanche DuBois said in A Streetcar Named Desire, consider relying on the kindness of strangers. Ask for contributions. If, for instance, your small-business blog supports a cause or issue in some fashion — say you repeatedly mention tax reform, health care or some other topic — you can always ask or reader support. Even if you've attracted a group of regular followers who simply enjoy reading what you have to say, they may be willing to underwrite their loyalty with a little financial help. Programs such as PayPal make it easy to establish a simple on-site contribution collection button. "There are lots of worthy 'cause' blogs that would qualify for donations from grateful members of the blog community," says Las Vegas communications consultant Ned Barnett.
4. Market your services in your blog. Many people associate blogs exclusively with a cyberspace-based soapbox — a place to shout your opinions and little more than that. Granted, blogs are an ideal venue to share your thoughts with others, but don't overlook their capacity to generate new business as well. When appropriate, work in references to what you do and, in turn, what you may be able to offer any would-be client or customer who may be reading your blog. That can spread your opinion and your business moxie at the same time."Instead of short commentaries that begin a dialogue with readers, as many blogs do, I write the equivalent of journal articles that demonstrate my abilities, strategies and perspectives on specific issues," Barnett says. "When it resonates, it means money. Since starting this approach, I have generated three new paying clients and brought in about $10,000 on revenue — directly attributable to specific blogs."
5. Use a blog to deepen your existing customer relations.
Nor does any marketing material inserted in blog content have to be limited to bringing in completely new business. By using a blog to regularly communicate with existing clients as well as other readers, you can take advantage of the opportunity to fully inform them about everything your business does. That may expand your readers' understanding of the full scope of your products or services."My blog has helped existing clients determine the range of my skills and services," says Ted Demopoulos of Demopoulos Associates, a Durham, N.H. consulting and training concern. "One client who had only used me for training in the past was surprised at my range of expertise and is now using me for a consulting project. Another who only used me on technical projects is now considering me for a more business-oriented project."
Source: Microsoft
Thursday, May 19, 2011
Collect on debt: 5 ways to make them pay
You thought you had been so careful, so very prudent. A customer, perhaps even a supplier, seemed so above-board, so solvent, so trustworthy.
But you've been left high and dry. Maybe a client owes you money for
products or services or a supplier has happily grabbed your cash without delivering the goods.
If visions of exorbitant attorneys' fees immediately wash over you, stop and breathe. In many instances, there are ways to pursue legal action to collect what's owed you without resorting to the tick-tock of a lawyer's hourly rate:
• Small-claims court.
This can prove a viable option for
resolving many disputes, particularly if the dollar amount involved is relatively modest. In most states, all you need to do is contact the small-claims court in your area and ask for the necessary paperwork to file a claims action. It's usually a rather simple procedure, and your court may provide information to help you get through the entire process. You file the paperwork, make certain the opposing party is served and the court sets a date to hear the case. Small claims offer several advantages. First, you don't need an attorney to file the paperwork or even represent you in court. Moreover, filing fees are usually modest; for example, my court charges only $40 to process the paperwork. And the process is designed to move quickly. Decisions are usually handed down on the same day of the hearing.However, there are several nuances to bear in mind. For one thing, the amount you're able to file for varies from
state to state. For instance, in Maine, the maximum is $4,500 for a claim. In Rhode Island, the limit goes down to $1,500 per claim. Further, the onus is still on you to make your case, so you have to present evidence, documentation and other forms of adequate proof. "You're charged with knowledge of the law in small claims court," says David Chamberlain, an attorney based in Portland, Maine. "It's not like 'Judge Judy' or 'The People's Court' where they walk you through holding your hand."
• Mediation.
This type of dispute resolution can take a couple of forms. For instance, some small claims courts provide mediators. Rather than hearing a case, a judge may direct parties to work with a mediator to see if they can hammer out a settlement short of an actual court decision. In other cases, parties involved in a dispute may hire a mediator to help work out a suitable arrangement. Although mediation can also prove far less costly than formal legal action (fees are usually split) and much faster, it's not 100% effective. A mediator is the conduit to smoother communication, but it's up to the two sides involved to agree voluntarily to some sort of settlement.
• Arbitration.
A variant of mediation, arbitration lets businesses in a dispute work with an impartial arbitrator to hear both sides of the case. Like mediation, the process is faster and more cost-effective than conventional legal channels; indeed, your Better Business Bureau might provide volunteer arbitrators. However, unlike mediation, it's the arbitrator who hands down a decision, a final ruling that both sides are bound to honor. For more information about arbitration or to locate an arbitrator, check out the American Arbitration Association's Web site (www.adr.org).
• Collection agencies.
As you likely already know, collection agencies are businesses that can be hired to pursue debt collection. However, many collection agencies will only take cases that offer a reasonably good chance of success. Moreover, they can be pricy. "Some collection agencies will charge up to 50% of any amount they collect," says Fred Steingold, author of "Legal Guide to Starting and Running a Small Business."
• Credit action.
If you're unable to collect money owed to you, consider contacting your state's credit bureau. They'll provide you with the means necessary to make the bad debt part of your opponent's credit record. While that may seem like cold comfort now, it may offer valuable leverage years down the line when a bank or other lender refuses the offender a loan because of the bad debt. That may prompt your less-than-reliable customer or client to make good on what's owed you to clear up the credit report.
No matter which route you choose, you will need to know just how far to take things. For example, while many people may plead poverty outside the courtroom, pay close attention to what they say on the legal record. You'll get a clear indication of just how much money your opponent actually has and whether you should go after the full amount. If there's evidence of ample assets, pursue your fair share. However, if legal documentation shows little in the way of funds and an ex-customer offers you 50 cents on the dollar, it may be prudent to take what you can get.
It's also critical to know when to bring in an attorney. For instance, if the money in question is substantial—say, beyond the purview of your state's small-claims guidelines -- an attorney might be worth the extra expense. Similarly, pay attention to your opposite number's attitude, especially if there's serious money at stake: "If you're dealing with someone who's obstinate or difficult, you may want to get an attorney involved," says Chamberlain.
But if relatively little money is owed, and your customer is belligerent, it's no disgrace to just let the whole matter slide: "Give some thought to just writing the thing off. In business, it's often just as important to get the matter resolved and to get onto other things," Steingold says.
Source: Microsoft
But you've been left high and dry. Maybe a client owes you money for
products or services or a supplier has happily grabbed your cash without delivering the goods.
If visions of exorbitant attorneys' fees immediately wash over you, stop and breathe. In many instances, there are ways to pursue legal action to collect what's owed you without resorting to the tick-tock of a lawyer's hourly rate:
• Small-claims court.
This can prove a viable option for
resolving many disputes, particularly if the dollar amount involved is relatively modest. In most states, all you need to do is contact the small-claims court in your area and ask for the necessary paperwork to file a claims action. It's usually a rather simple procedure, and your court may provide information to help you get through the entire process. You file the paperwork, make certain the opposing party is served and the court sets a date to hear the case. Small claims offer several advantages. First, you don't need an attorney to file the paperwork or even represent you in court. Moreover, filing fees are usually modest; for example, my court charges only $40 to process the paperwork. And the process is designed to move quickly. Decisions are usually handed down on the same day of the hearing.However, there are several nuances to bear in mind. For one thing, the amount you're able to file for varies from
state to state. For instance, in Maine, the maximum is $4,500 for a claim. In Rhode Island, the limit goes down to $1,500 per claim. Further, the onus is still on you to make your case, so you have to present evidence, documentation and other forms of adequate proof. "You're charged with knowledge of the law in small claims court," says David Chamberlain, an attorney based in Portland, Maine. "It's not like 'Judge Judy' or 'The People's Court' where they walk you through holding your hand."
• Mediation.
This type of dispute resolution can take a couple of forms. For instance, some small claims courts provide mediators. Rather than hearing a case, a judge may direct parties to work with a mediator to see if they can hammer out a settlement short of an actual court decision. In other cases, parties involved in a dispute may hire a mediator to help work out a suitable arrangement. Although mediation can also prove far less costly than formal legal action (fees are usually split) and much faster, it's not 100% effective. A mediator is the conduit to smoother communication, but it's up to the two sides involved to agree voluntarily to some sort of settlement.
• Arbitration.
A variant of mediation, arbitration lets businesses in a dispute work with an impartial arbitrator to hear both sides of the case. Like mediation, the process is faster and more cost-effective than conventional legal channels; indeed, your Better Business Bureau might provide volunteer arbitrators. However, unlike mediation, it's the arbitrator who hands down a decision, a final ruling that both sides are bound to honor. For more information about arbitration or to locate an arbitrator, check out the American Arbitration Association's Web site (www.adr.org).
• Collection agencies.
As you likely already know, collection agencies are businesses that can be hired to pursue debt collection. However, many collection agencies will only take cases that offer a reasonably good chance of success. Moreover, they can be pricy. "Some collection agencies will charge up to 50% of any amount they collect," says Fred Steingold, author of "Legal Guide to Starting and Running a Small Business."
• Credit action.
If you're unable to collect money owed to you, consider contacting your state's credit bureau. They'll provide you with the means necessary to make the bad debt part of your opponent's credit record. While that may seem like cold comfort now, it may offer valuable leverage years down the line when a bank or other lender refuses the offender a loan because of the bad debt. That may prompt your less-than-reliable customer or client to make good on what's owed you to clear up the credit report.
No matter which route you choose, you will need to know just how far to take things. For example, while many people may plead poverty outside the courtroom, pay close attention to what they say on the legal record. You'll get a clear indication of just how much money your opponent actually has and whether you should go after the full amount. If there's evidence of ample assets, pursue your fair share. However, if legal documentation shows little in the way of funds and an ex-customer offers you 50 cents on the dollar, it may be prudent to take what you can get.
It's also critical to know when to bring in an attorney. For instance, if the money in question is substantial—say, beyond the purview of your state's small-claims guidelines -- an attorney might be worth the extra expense. Similarly, pay attention to your opposite number's attitude, especially if there's serious money at stake: "If you're dealing with someone who's obstinate or difficult, you may want to get an attorney involved," says Chamberlain.
But if relatively little money is owed, and your customer is belligerent, it's no disgrace to just let the whole matter slide: "Give some thought to just writing the thing off. In business, it's often just as important to get the matter resolved and to get onto other things," Steingold says.
Source: Microsoft
Monday, May 16, 2011
7 tips for excellent customer service
In the business world, good customer service often isn't good enough anymore.
Customers and clients are becoming increasingly disenchanted with the merely adequate. For them, extraordinary service is the rule, not the exception.
Anything less, and they're happy to vote with their feet and their wallets.
That makes extraordinary service necessary, not just desirable. And that, in turn, mandates a strategy to help ensure that your business matches that standout service standard on a daily basis.
Here are seven ideas and tips to help your business establish and maintain an ongoing climate of service excellence.
1. Define what extraordinary really means.
It's an easy term to toss about, but knowing what exceptional service entails is essential to establishing the procedures and the mindset with which to achieve it. So, delineate what extraordinary means—is it lower price? Keeping appointments on time, or making certain that telephone service reps always say "please" and "thank you"? By knowing precisely what is merely good enough—and what takes your business beyond that—you get a firm handle on what you need to do to hit that goal on a consistent basis. For 1-800-Got-Junk? that means calling a customer to let them know that the van they're expecting is going to arrive on time. "We pledge to arrive on time, in a clean shiny truck, with two friendly uniformed drivers—but so can anyone. What makes us unique is, our truck crew will call the customer 15 minutes ahead of time, and let them know we're on time," says Christopher Bennett of the Vancouver, B.C., junk removal service. "This has a huge impact on the customer. Calling ahead sets exceptional expectations—even if we're running late, the customer appreciates the call in advance."
2. Ask if you're not sure. Many companies may find it understandably difficult to genuinely pinpoint what extraordinary service really entails. So, do some legwork. Conduct focus groups with customers to see what they really value. Ask your complaint department, if you have one, to identify topics that are frequent targets of dissatisfaction. Often, you may find extraordinary translates to a holistic grouping of issues, not just one product or service. "Often, being extraordinary means offering someone a truly exceptional experience," says Dr. Noelle Nelson, author of The Power of Appreciation in Business. "The quality of something may be good, but it's the overall experience that will really define customer loyalty."
3. Allow your people to be extraordinary. Saying you want extraordinary service and actually carrying it out is a tough nut without the necessary authority. One of the biggest challenges of providing a consistently top-drawer performance is shifting conditions—what's appropriate
for one customer may not work with another. For instance, one customer may be so dissatisfied that a partial refund may be in order. By contrast, other customers who are a bit less peeved may be happy with a problem solved without any sort of refund. So, allow employees reasonable freedom of choice to read a situation and react accordingly. For instance, Nelson suggests giving employees a budgetary allotment which they can use, as needed, to address refunds or other unexpected costs associated with giving customers the benefit of the doubt. To illustrate: Southwest Airlines gives its telephone customer service reps the authority to OK refunds if a caller claims they didn't get the airfare they wanted.
4. Share information. If you run a retail business, business management tools, such as Microsoft Dynamics Retail Management System , can be invaluable in tracking critical data, such as what items and services are selling particularly well. If you have that data, don't keep it a state secret. Sharing the information with your employees lets them know what's hitting on all cylinders. It also helps them promote these products or services to customers. "Sharing information with others is a really positive step," says Nelson. In other words, don't keep critical customer information close to the vest. That holds true with businesses other than retail. For instance, Microsoft Dynamics Customer Relationship Management (CRM) software lets you share valuable information about clients and customers with your entire organization. Customer buying habits, particular needs, interests, and other data can be stored in a central location and easily shared.
5. Share the commitment. Nothing can prove more destructive to a commitment to extraordinary service than management for whom the concept is little more than lip service. Walk the walk by buying into that commitment just as much as you hope your people will. Make sure you reward top performance. Invest the time and expense in any sort of training that may help employees carry out and maintain high performance standards. Don't forget yourself and others in the front office. "Make sure that training takes in everyone, not just sales, marketing, and other frontline employees," says Karen Leland, author of Customer Service for Dummies. "Training is an important part of creating a lifelong culture for service excellence since it helps build an understanding of the concept of service. And that means a top-down commitment. Leadership should set the tone for the entire effort."
6. Don't expect magic overnight. Another potential hurdle to extraordinary service is the expectation that it's like flicking a light switch—on it goes, and everything's hunky dory.
Truth is, exceptional service takes time to take hold in an organization, particularly one with an array of people and departments. Give it enough time. Review performance every four to six months. (Here, data from Microsoft Retail Management Systems and other like products can be essential in quantifying progress.) "It's essential to stay the course so you can improve service ratings," says Elaine Berke, a Westport, Mass., consultant.
7. Expect snafus and react accordingly.
The road to topnotch service is not without its bumps. Don't pretend they're not there. Rather, make them a part of the journey by acknowledging a slip up and, in so doing, recommitting to extraordinary performance. For example, if a customer receives the wrong item, don't stop at making sure they get the right one. Let the customer know that you're sorry for the mistake and build their confidence that it won't happen again. "Build customer loyalty,
not just satisfaction," says Berke. "When you apologize for problems and really listen, you build a relationship."
Customers and clients are becoming increasingly disenchanted with the merely adequate. For them, extraordinary service is the rule, not the exception.
Anything less, and they're happy to vote with their feet and their wallets.
That makes extraordinary service necessary, not just desirable. And that, in turn, mandates a strategy to help ensure that your business matches that standout service standard on a daily basis.
Here are seven ideas and tips to help your business establish and maintain an ongoing climate of service excellence.
1. Define what extraordinary really means.
It's an easy term to toss about, but knowing what exceptional service entails is essential to establishing the procedures and the mindset with which to achieve it. So, delineate what extraordinary means—is it lower price? Keeping appointments on time, or making certain that telephone service reps always say "please" and "thank you"? By knowing precisely what is merely good enough—and what takes your business beyond that—you get a firm handle on what you need to do to hit that goal on a consistent basis. For 1-800-Got-Junk? that means calling a customer to let them know that the van they're expecting is going to arrive on time. "We pledge to arrive on time, in a clean shiny truck, with two friendly uniformed drivers—but so can anyone. What makes us unique is, our truck crew will call the customer 15 minutes ahead of time, and let them know we're on time," says Christopher Bennett of the Vancouver, B.C., junk removal service. "This has a huge impact on the customer. Calling ahead sets exceptional expectations—even if we're running late, the customer appreciates the call in advance."
2. Ask if you're not sure. Many companies may find it understandably difficult to genuinely pinpoint what extraordinary service really entails. So, do some legwork. Conduct focus groups with customers to see what they really value. Ask your complaint department, if you have one, to identify topics that are frequent targets of dissatisfaction. Often, you may find extraordinary translates to a holistic grouping of issues, not just one product or service. "Often, being extraordinary means offering someone a truly exceptional experience," says Dr. Noelle Nelson, author of The Power of Appreciation in Business. "The quality of something may be good, but it's the overall experience that will really define customer loyalty."
3. Allow your people to be extraordinary. Saying you want extraordinary service and actually carrying it out is a tough nut without the necessary authority. One of the biggest challenges of providing a consistently top-drawer performance is shifting conditions—what's appropriate
for one customer may not work with another. For instance, one customer may be so dissatisfied that a partial refund may be in order. By contrast, other customers who are a bit less peeved may be happy with a problem solved without any sort of refund. So, allow employees reasonable freedom of choice to read a situation and react accordingly. For instance, Nelson suggests giving employees a budgetary allotment which they can use, as needed, to address refunds or other unexpected costs associated with giving customers the benefit of the doubt. To illustrate: Southwest Airlines gives its telephone customer service reps the authority to OK refunds if a caller claims they didn't get the airfare they wanted.
4. Share information. If you run a retail business, business management tools, such as Microsoft Dynamics Retail Management System , can be invaluable in tracking critical data, such as what items and services are selling particularly well. If you have that data, don't keep it a state secret. Sharing the information with your employees lets them know what's hitting on all cylinders. It also helps them promote these products or services to customers. "Sharing information with others is a really positive step," says Nelson. In other words, don't keep critical customer information close to the vest. That holds true with businesses other than retail. For instance, Microsoft Dynamics Customer Relationship Management (CRM) software lets you share valuable information about clients and customers with your entire organization. Customer buying habits, particular needs, interests, and other data can be stored in a central location and easily shared.
5. Share the commitment. Nothing can prove more destructive to a commitment to extraordinary service than management for whom the concept is little more than lip service. Walk the walk by buying into that commitment just as much as you hope your people will. Make sure you reward top performance. Invest the time and expense in any sort of training that may help employees carry out and maintain high performance standards. Don't forget yourself and others in the front office. "Make sure that training takes in everyone, not just sales, marketing, and other frontline employees," says Karen Leland, author of Customer Service for Dummies. "Training is an important part of creating a lifelong culture for service excellence since it helps build an understanding of the concept of service. And that means a top-down commitment. Leadership should set the tone for the entire effort."
6. Don't expect magic overnight. Another potential hurdle to extraordinary service is the expectation that it's like flicking a light switch—on it goes, and everything's hunky dory.
Truth is, exceptional service takes time to take hold in an organization, particularly one with an array of people and departments. Give it enough time. Review performance every four to six months. (Here, data from Microsoft Retail Management Systems and other like products can be essential in quantifying progress.) "It's essential to stay the course so you can improve service ratings," says Elaine Berke, a Westport, Mass., consultant.
7. Expect snafus and react accordingly.
The road to topnotch service is not without its bumps. Don't pretend they're not there. Rather, make them a part of the journey by acknowledging a slip up and, in so doing, recommitting to extraordinary performance. For example, if a customer receives the wrong item, don't stop at making sure they get the right one. Let the customer know that you're sorry for the mistake and build their confidence that it won't happen again. "Build customer loyalty,
not just satisfaction," says Berke. "When you apologize for problems and really listen, you build a relationship."
6 ways to turn customers into partners
The idea of partnering with customers is often confused with providing good customer service. But they're hardly the same thing.
Working to build partnerships with customers is a considerably more consultative process than
delivering satisfactory point-of-sale transactions.
Partnering requires you to break down the wall between seller and buyer in order to re-think the transaction altogether. Partnering puts aside traditional hunter/prey marketing conventions—such as "targeting" customers, "beating" the competition, or "stealing" market share—in order to identify and deepen the value that customers find in your offerings.
By identifying ways to invite customers inside your business, you multiply interactions and instill loyalty. "Most companies underestimate the power of creating a robust approach for connecting with their customers to hear what they have to say about their products and services," says Jeanne Bliss, author of Chief Customer Officer, and, formerly, a customer relationship manager at Microsoft, Mazda, and Lands' End.
Ultimately, you make customers emotionally invested in your success, which can result in more revenue from existing customers, lower operational and marketing costs, greater brand equity, and terrific word-of-mouth.
Here are six ways to develop customer partnerships as well as expert advice for leveraging the relationship so it increases sales and grows your company.
How to build the partner relationship
To forge the partnership, says Bliss, you need to listen to customers, to involve them and to maintain ongoing communications, whether it's a business-to-business or a business-to-consumer relationship.
Keep that advice in mind as you weigh these options.
1. Solve problems, completely. "The customer today is drowning in choices," says Joe Forcillo, a management consultant in Grosse Pointe Farms, Mich. "At the same time, marketers are cutting costs and pushing more work onto their customers." So if you completely meet customer needs, you will stand out. To figure out what needs are paramount, Forcillo suggests you invest time in getting customer answers to these questions:"You'd be amazed at the information and value that comes out of these questions," advises Forcillo.
2. Make the customer feel like they "know" the company. "Publicize the story behind the business, adding personal touches where you can," suggests Robbie Baxter, a strategy consultant with Peninsula Strategies, based in the Silicon Valley. "People are always more loyal to people they know than strangers." Baxter points to the way Paul Newman's face on the label markets Newman's Own and how Annie's Natural organic foods tells the story of the company logo and mascot.
3. Share documents and information online. When work is done in teams or in far-flung locations, create a central and private Web site with applications like Microsoft's SharePoint Foundation. Such groupware sites are protected by passwords and give each team member—client or staff—the ability to track every stage of a project. For instance, imagine a boilerplate contract that needs specific client requirements. You can post the document on the site for everyone to read, make changes on-screen, and approve, from legal and IT to the client contact and counsel. But such tools are only as good as your control of the versions that are sent round. Make sure to set up a system that will ensure only one live version at a time.
4. Research how customers can gain more value. Expensewatch.com, based in Plymouth Valley, Pa., is an on-demand applications service provider of software that tracks and controls company expenses for travel and entertainment, purchase and requisitions, and invoicing to the company. Its sales team spends lots of upfront time with potential clients to learn how their needs can best be served by the company's product." Customer support is traditionally reactive," says Bill Vergantino, vice president of operations. "But we call it 'customer usage.' For any given account, we analyze how the customer is using our system, what percentage of employees are logging on, which features of our software are being used successfully and more." Armed with that customized information, the Expensewatch.com team puts together a plan that outlines system capabilities the customer might leverage and suggests specific training classes for staff. "That has no incremental cost to the customer," says Vergantino. "We want a good fit so it's win-win. Customers will then personally champion our product and we'll attract other customers."
5. Use the Web to collaborate on test products.
t's always costly to expand product lines or services. And the price isn't only dollars. There's also time, resources, rollercoaster emotions and distractions from ongoing business. For example, imagine that a biotech company with a new, multimillion-dollar product needs its offering reviewed by dozens of research doctors in the United States and abroad. Instead of flying such experts in to company headquarters and paying each one's expenses plus an honorarium, you can now hire companies that design and manage online surveys on password-protected Web sites. For example, busy doctors might log in at their convenience to evaluate the product and post comments. Such a process easily translates for a host of other products, from consumer to business-to-business to academic.
6. Enlist your customers in community efforts. If you get customers involved in a joint effort to improve community life, you go a long way to developing deep customer loyalty, suggests Mal Warwick, co-author of Values-Driven Business, and a nonprofit fundraising consultant based in Berkeley, Calif. He recommends several tactics, including:
Remember, no matter which method you choose, the best way to begin partnering with customers is to make them feel a valued part of your business.
Source: Microsoft
Working to build partnerships with customers is a considerably more consultative process than
delivering satisfactory point-of-sale transactions.
Partnering requires you to break down the wall between seller and buyer in order to re-think the transaction altogether. Partnering puts aside traditional hunter/prey marketing conventions—such as "targeting" customers, "beating" the competition, or "stealing" market share—in order to identify and deepen the value that customers find in your offerings.
By identifying ways to invite customers inside your business, you multiply interactions and instill loyalty. "Most companies underestimate the power of creating a robust approach for connecting with their customers to hear what they have to say about their products and services," says Jeanne Bliss, author of Chief Customer Officer, and, formerly, a customer relationship manager at Microsoft, Mazda, and Lands' End.
Ultimately, you make customers emotionally invested in your success, which can result in more revenue from existing customers, lower operational and marketing costs, greater brand equity, and terrific word-of-mouth.
Here are six ways to develop customer partnerships as well as expert advice for leveraging the relationship so it increases sales and grows your company.
How to build the partner relationship
To forge the partnership, says Bliss, you need to listen to customers, to involve them and to maintain ongoing communications, whether it's a business-to-business or a business-to-consumer relationship.
Keep that advice in mind as you weigh these options.
1. Solve problems, completely. "The customer today is drowning in choices," says Joe Forcillo, a management consultant in Grosse Pointe Farms, Mich. "At the same time, marketers are cutting costs and pushing more work onto their customers." So if you completely meet customer needs, you will stand out. To figure out what needs are paramount, Forcillo suggests you invest time in getting customer answers to these questions:"You'd be amazed at the information and value that comes out of these questions," advises Forcillo.
2. Make the customer feel like they "know" the company. "Publicize the story behind the business, adding personal touches where you can," suggests Robbie Baxter, a strategy consultant with Peninsula Strategies, based in the Silicon Valley. "People are always more loyal to people they know than strangers." Baxter points to the way Paul Newman's face on the label markets Newman's Own and how Annie's Natural organic foods tells the story of the company logo and mascot.
3. Share documents and information online. When work is done in teams or in far-flung locations, create a central and private Web site with applications like Microsoft's SharePoint Foundation. Such groupware sites are protected by passwords and give each team member—client or staff—the ability to track every stage of a project. For instance, imagine a boilerplate contract that needs specific client requirements. You can post the document on the site for everyone to read, make changes on-screen, and approve, from legal and IT to the client contact and counsel. But such tools are only as good as your control of the versions that are sent round. Make sure to set up a system that will ensure only one live version at a time.
4. Research how customers can gain more value. Expensewatch.com, based in Plymouth Valley, Pa., is an on-demand applications service provider of software that tracks and controls company expenses for travel and entertainment, purchase and requisitions, and invoicing to the company. Its sales team spends lots of upfront time with potential clients to learn how their needs can best be served by the company's product." Customer support is traditionally reactive," says Bill Vergantino, vice president of operations. "But we call it 'customer usage.' For any given account, we analyze how the customer is using our system, what percentage of employees are logging on, which features of our software are being used successfully and more." Armed with that customized information, the Expensewatch.com team puts together a plan that outlines system capabilities the customer might leverage and suggests specific training classes for staff. "That has no incremental cost to the customer," says Vergantino. "We want a good fit so it's win-win. Customers will then personally champion our product and we'll attract other customers."
5. Use the Web to collaborate on test products.
t's always costly to expand product lines or services. And the price isn't only dollars. There's also time, resources, rollercoaster emotions and distractions from ongoing business. For example, imagine that a biotech company with a new, multimillion-dollar product needs its offering reviewed by dozens of research doctors in the United States and abroad. Instead of flying such experts in to company headquarters and paying each one's expenses plus an honorarium, you can now hire companies that design and manage online surveys on password-protected Web sites. For example, busy doctors might log in at their convenience to evaluate the product and post comments. Such a process easily translates for a host of other products, from consumer to business-to-business to academic.
6. Enlist your customers in community efforts. If you get customers involved in a joint effort to improve community life, you go a long way to developing deep customer loyalty, suggests Mal Warwick, co-author of Values-Driven Business, and a nonprofit fundraising consultant based in Berkeley, Calif. He recommends several tactics, including:
Remember, no matter which method you choose, the best way to begin partnering with customers is to make them feel a valued part of your business.
Source: Microsoft
5 business-lunch faux pas
The recipe for a successful business meal seems deceptively easy. "Let's meet for lunch," you tell a client or associate. You get together. You talk business.
Sounds simple enough. But you know better.
A business lunch is part meal, part meeting. It's informal, but at the same time there's a long list of unwritten rules that can't be broken. A business meal is an opportunity to show off your culinary know-how — or expose your bad taste in restaurants. There's so much that could go wrong, it's no wonder 40% of us prefer to "brown bag" it, according to a recent restaurant trade association survey.
The ingredients to a successful business lunch don't have to be a mystery, however. According to a poll conducted by the Creative Group, an advertising and marketing firm in Menlo Park, Calif., being rude to a restaurant employee is the No. 1 reason a business lunch goes bad. What are other reasons?
- Arriving late
- Bad table manners
- Dressing too casually
If you've been in business for more than a few weeks, you probably already know that you attract more metaphorical bees with honey than with vinegar. You also know the importance of punctuality, and you know how to use a napkin. And you show respect by wearing business attire.
But what else can doom the fabled business meal, and how do you keep it from happening?
Here's a look at five other common business-lunch faux pas that are easily preventable:
1. Choosing the wrong restaurant. Picking the right place for a business lunch is hardly a no-brainer, especially if you're in an unfamiliar city. And even if you're on your own home turf, there's still the possibility that something could go wrong. For example: inviting a prospective client who is allergic to shellfish to a seafood restaurant. Some establishments just aren't meant for business meals. Brooks Hurd remembers one such place, where his co-workers met to welcome back an employee who had just gotten out of the hospital. "The appetizers and main course were good, but not outstanding," recalls Hurd, a consultant in San Luis Obispo, Calif. "The quality did not match the prices. Service was slow. The meal dragged on." Then, during dessert, Hurd says, a waiter accidentally dropped strawberry shortcake on the guest of honor. "The result was stunning." Tip:
Rely on multiple sources for a restaurant recommendation. If you consult a restaurant survey such as Zagat's, make sure that you also ask someone who lives in the area to vouch for your selected establishment. And don't forget to check with your business contact. It's embarrassing to ask a vegetarian to meet you at a steak restaurant.
2. Inviting the wrong guests. Oh, the grief I got from readers after I admitted that I
brought my infant son to a business lunch in a previous column. "I couldn't stop shuddering at the thought of sitting down to a working lunch with a business client — or my partners — if one of them has brought along his kids," wrote Lisa Floyd. "Don't misunderstand; I love kids. But I don't believe business and kids mix." How true. And as I pointed out in that earlier column, there are places where children clearly don't belong, and a business lunch is one of them. But children aren't the only other meal guests who might be considered bad company. How about the tag-along spouse who wasn't invited? The intern? Or, heaven forbid, the company lawyer (when no legal matters are on the table)? Don't laugh, it's happened to me. Tip:
Follow up your verbal lunch invitation with an e-mail confirming the guest list. You don't have to be obnoxious about it. A simple, "Hey, just a note to let you know I've made reservations for two at Chez Pierre's at noon next Tuesday," would be enough to get this message across: No interlopers, please.
3. Sitting at the wrong table. The service may be spectacular, and you might be meeting with the right people. But what if you can't discuss he deal? When I worked in New York, the deli was a favorite spot to do lunch. Good food, fast service, always a convenient location. What more could you want? Well, just try connecting with a confidential source at a sandwich shop. During lunch hour, a mob of hungry people moves through the joint, yelling orders across the counter and crowding around your table. This is no place to talk business. On the flip side, I also never completely trusted the quiet restaurant where you had to whisper for fear of being overheard by the folks sitting at the next table. Bottom line: You don't want anyone eavesdropping on your business lunch. The ideal establishment comes with several booths where your conversations can neither be seen nor heard. Tip:
One of my favorite Web sites that offers specific advice on discreet meeting places is Ontheroad.com . It offers a database of restaurants ideal for business meals. Once you've chosen a place to eat, call ahead and mention that you'd like a little privacy. Some places might be able to offer a separate dining room if it isn't being used by another party.
4. Saying the wrong thing.
Remember the part about the unwritten rules? Here's one of them: At an American business lunch, it's considered inappropriate to get down to business before the waiter has handed you the menu. In other countries, you don't talk business until the first glass of wine has been poured and the host offers a toast. Elsewhere, ordering wine is considered inappropriate. I'll never forget the shocked expression on my host's face when I sat down to lunch with him, whipped out my business card, and immediately began talking about work. He'd spent a considerable amount of time in Europe and obviously preferred to ease into a business discussion. But I foolishly ignored his discomfort. That business lunch was a failure. Tip:
A how-to on business etiquette is beyond the scope of this column. But a good place to start is Getcustoms.com , which is published by the authors of the book "Kiss, Bow or Shake Hands: How to Do Business in Sixty Countries." It offers timely tips on how to take customs into consideration when you're traveling on business.
5. Ending it the wrong way.
The conclusion of a business meal is as important as its beginning. A verbal "thank-you" at the end is always appropriate (even if it didn't go as you planned). It should be followed with an invitation to reciprocate at a future date. If possible, send a thank-you note (which is also another opportunity to send your business card), noting what you specifically liked about the meal and, possibly, recapping the conversation. As a journalist who sometimes writes opinionated stories, I've been to lots of "bridge-building" lunches, set up by well-meaning publicists with the intention of mending fences. Sometimes they work, but sometimes they fall flat. You know those scenes in made-for-TV movies where someone throws down the napkin and walks away from the table in a huff? They're not imaginary. The point is, when the lunch doesn't conclude the way you hoped it would, it's still important to end it on the right note. Write a thank-you card, even if you never expect to do business with this person again. Tip:
One of the most effective strategies I know to avoid an unhappy conclusion is to go easy on the alcoholic beverages. Many business meals end tragically at the bottom of a bottle of wine. Don't get me wrong: I enjoy a nice martini as much as the next guy. But it can be a bad idea to have one too many at a business get-together.
Sometimes, of course, a business lunch is a bad idea to begin with. Knowing when to call off a mealtime meeting is perhaps the most important business instinct to develop. If you're not feeling well or your own company is in turmoil, you might want to consider canceling — if not for the sake of your business, then at least for your own health. But if you decide to do lunch, take a little time to pick the right restaurant, invite the right guests, and find the right table. And mind your manners.
Source: Microsoft
Sounds simple enough. But you know better.
A business lunch is part meal, part meeting. It's informal, but at the same time there's a long list of unwritten rules that can't be broken. A business meal is an opportunity to show off your culinary know-how — or expose your bad taste in restaurants. There's so much that could go wrong, it's no wonder 40% of us prefer to "brown bag" it, according to a recent restaurant trade association survey.
The ingredients to a successful business lunch don't have to be a mystery, however. According to a poll conducted by the Creative Group, an advertising and marketing firm in Menlo Park, Calif., being rude to a restaurant employee is the No. 1 reason a business lunch goes bad. What are other reasons?
- Arriving late
- Bad table manners
- Dressing too casually
If you've been in business for more than a few weeks, you probably already know that you attract more metaphorical bees with honey than with vinegar. You also know the importance of punctuality, and you know how to use a napkin. And you show respect by wearing business attire.
But what else can doom the fabled business meal, and how do you keep it from happening?
Here's a look at five other common business-lunch faux pas that are easily preventable:
1. Choosing the wrong restaurant. Picking the right place for a business lunch is hardly a no-brainer, especially if you're in an unfamiliar city. And even if you're on your own home turf, there's still the possibility that something could go wrong. For example: inviting a prospective client who is allergic to shellfish to a seafood restaurant. Some establishments just aren't meant for business meals. Brooks Hurd remembers one such place, where his co-workers met to welcome back an employee who had just gotten out of the hospital. "The appetizers and main course were good, but not outstanding," recalls Hurd, a consultant in San Luis Obispo, Calif. "The quality did not match the prices. Service was slow. The meal dragged on." Then, during dessert, Hurd says, a waiter accidentally dropped strawberry shortcake on the guest of honor. "The result was stunning." Tip:
Rely on multiple sources for a restaurant recommendation. If you consult a restaurant survey such as Zagat's, make sure that you also ask someone who lives in the area to vouch for your selected establishment. And don't forget to check with your business contact. It's embarrassing to ask a vegetarian to meet you at a steak restaurant.
2. Inviting the wrong guests. Oh, the grief I got from readers after I admitted that I
brought my infant son to a business lunch in a previous column. "I couldn't stop shuddering at the thought of sitting down to a working lunch with a business client — or my partners — if one of them has brought along his kids," wrote Lisa Floyd. "Don't misunderstand; I love kids. But I don't believe business and kids mix." How true. And as I pointed out in that earlier column, there are places where children clearly don't belong, and a business lunch is one of them. But children aren't the only other meal guests who might be considered bad company. How about the tag-along spouse who wasn't invited? The intern? Or, heaven forbid, the company lawyer (when no legal matters are on the table)? Don't laugh, it's happened to me. Tip:
Follow up your verbal lunch invitation with an e-mail confirming the guest list. You don't have to be obnoxious about it. A simple, "Hey, just a note to let you know I've made reservations for two at Chez Pierre's at noon next Tuesday," would be enough to get this message across: No interlopers, please.
3. Sitting at the wrong table. The service may be spectacular, and you might be meeting with the right people. But what if you can't discuss he deal? When I worked in New York, the deli was a favorite spot to do lunch. Good food, fast service, always a convenient location. What more could you want? Well, just try connecting with a confidential source at a sandwich shop. During lunch hour, a mob of hungry people moves through the joint, yelling orders across the counter and crowding around your table. This is no place to talk business. On the flip side, I also never completely trusted the quiet restaurant where you had to whisper for fear of being overheard by the folks sitting at the next table. Bottom line: You don't want anyone eavesdropping on your business lunch. The ideal establishment comes with several booths where your conversations can neither be seen nor heard. Tip:
One of my favorite Web sites that offers specific advice on discreet meeting places is Ontheroad.com . It offers a database of restaurants ideal for business meals. Once you've chosen a place to eat, call ahead and mention that you'd like a little privacy. Some places might be able to offer a separate dining room if it isn't being used by another party.
4. Saying the wrong thing.
Remember the part about the unwritten rules? Here's one of them: At an American business lunch, it's considered inappropriate to get down to business before the waiter has handed you the menu. In other countries, you don't talk business until the first glass of wine has been poured and the host offers a toast. Elsewhere, ordering wine is considered inappropriate. I'll never forget the shocked expression on my host's face when I sat down to lunch with him, whipped out my business card, and immediately began talking about work. He'd spent a considerable amount of time in Europe and obviously preferred to ease into a business discussion. But I foolishly ignored his discomfort. That business lunch was a failure. Tip:
A how-to on business etiquette is beyond the scope of this column. But a good place to start is Getcustoms.com , which is published by the authors of the book "Kiss, Bow or Shake Hands: How to Do Business in Sixty Countries." It offers timely tips on how to take customs into consideration when you're traveling on business.
5. Ending it the wrong way.
The conclusion of a business meal is as important as its beginning. A verbal "thank-you" at the end is always appropriate (even if it didn't go as you planned). It should be followed with an invitation to reciprocate at a future date. If possible, send a thank-you note (which is also another opportunity to send your business card), noting what you specifically liked about the meal and, possibly, recapping the conversation. As a journalist who sometimes writes opinionated stories, I've been to lots of "bridge-building" lunches, set up by well-meaning publicists with the intention of mending fences. Sometimes they work, but sometimes they fall flat. You know those scenes in made-for-TV movies where someone throws down the napkin and walks away from the table in a huff? They're not imaginary. The point is, when the lunch doesn't conclude the way you hoped it would, it's still important to end it on the right note. Write a thank-you card, even if you never expect to do business with this person again. Tip:
One of the most effective strategies I know to avoid an unhappy conclusion is to go easy on the alcoholic beverages. Many business meals end tragically at the bottom of a bottle of wine. Don't get me wrong: I enjoy a nice martini as much as the next guy. But it can be a bad idea to have one too many at a business get-together.
Sometimes, of course, a business lunch is a bad idea to begin with. Knowing when to call off a mealtime meeting is perhaps the most important business instinct to develop. If you're not feeling well or your own company is in turmoil, you might want to consider canceling — if not for the sake of your business, then at least for your own health. But if you decide to do lunch, take a little time to pick the right restaurant, invite the right guests, and find the right table. And mind your manners.
Source: Microsoft
5 chronic small-biz mistakes to correct
To paraphrase Yogi Berra, chronic business mistakes are deja vu all over again.
Missteps, miscalculations, and outright duds are unfortunate yet ever-present starters in any small-business lineup. If nothing else, if it weren't for the battalion of snafus that lie in wait, every mom and pop kiosk would sport a bottom line that rivaled the New York Yankees'.
But what can really spell the difference between an established powerhouse and a perennial cellar dweller are chronic mistakes — those repeated and overlooked blunders.
Here are five persistent pitfalls that may apply to you and your business, along with steps to purge them.
Mistake 1: Advertising always works.
If, say, you've been running a particular ad spot for years but with little to show for the expense, you've tripped over the assumption that advertising in and of itself never fails. Not so. Not only is it critical to understand and embrace your business's particular niche, it's equally imperative that you know your target market and, in turn, pin own the advertising media that best hits that segment. "The biggest mistake I see is putting advertising out there without a clue if it's really reaching the right people," says Tom Egelhoff, who publishes SmallTownMarketing.com. "You've really got to define your company's market. That, and you have to hold any ad sales rep you're working with accountable for the match of their media with your market."
Mistake 2: Build it and they will come storming to your door.
Akin to the mistaken sanctity of advertising is misdirected faith in the inherent appeal of your business. Just be there, slap a few ads in the local fishwrap, and customers are queuing up by the break of dawn. Success mandates legwork. Related to that, another ongoing oversight is failure to get out into the community and network on a personal level, both with potential clients as well as business associates. "You can buy into the fallacy that advertising alone brings in business — but it only brings in lookers," Egelhoff says. "Networking creates buyers who will come to you because they know you or have heard of you, not from a cold ad."
Mistake 3: Love you, no matter what.
Although the human element to gaining attention and relationships is essential, don't look past any relationship that, over time, is more problematic than productive. Perhaps you've had a client for years who chronically moves with the speed of erosion when it comes to paying his tab. By the same token, you may have held onto a sub-par employee in hopes that her performance would improve over time. Take some time
to review carefully the people with whom you work to see if any element of your relationship has deteriorated over time. If, by chance, you spot someone whose presence may be doing your business more harm than good, don't play the nice guy at the expense of your operation. "If someone is keeping you up at night, or an employee simply hasn't worked out, it may be time to sever that relationship," says Lisa Kanarek, publisher of workingnaked.net .
Mistake 4: One size fits all — always.
Many chronic problems are creepers — those seemingly innocuous twinges that grow into chronic pain, often at a slow enough crawl that makes them tough to spot. Nowhere is that more the case than in your physical workplace. For some, that may mean a Lilliputian-sized office that's somehow handling an operation that over time has grown into Gulliver. By contrast, there's the business that, for years, has doled out cash for office space that's as empty and unwanted as a Pauly Shore film festival. Give your workspace the once-over routinely to make certain that what you have for space is, in fact, what you need. Pay particular attention to home-office space where the price of success can, after a year or so, mean needlessly cramped quarters.
Mistake 5: Alone is best.
Locked in a lone wolf persona, one final persistent pitfall — particularly for home-based and startups in the first few years — is the mistaken notion that it's more efficient to do it all yourself. Trouble is, looking after one task means idling another — and that may ultimately slow profitability and growth. If you're spreading yourself too thinly or feel that even 24/7 doesn't allow enough time to address every need, see if bringing on some help may, in fact, generate more income than outgo. Break down the numbers to see if the expense of a sales rep or marketer may be more than offset by the productivity it frees up for you. "For instance, marketing can get you work, but when it comes in you have to stop marketing to perform that work," Egelhoff points out. "And, when the jobs are done, the income stops until marketing creates work again."
Source: Microsoft
Missteps, miscalculations, and outright duds are unfortunate yet ever-present starters in any small-business lineup. If nothing else, if it weren't for the battalion of snafus that lie in wait, every mom and pop kiosk would sport a bottom line that rivaled the New York Yankees'.
But what can really spell the difference between an established powerhouse and a perennial cellar dweller are chronic mistakes — those repeated and overlooked blunders.
Here are five persistent pitfalls that may apply to you and your business, along with steps to purge them.
Mistake 1: Advertising always works.
If, say, you've been running a particular ad spot for years but with little to show for the expense, you've tripped over the assumption that advertising in and of itself never fails. Not so. Not only is it critical to understand and embrace your business's particular niche, it's equally imperative that you know your target market and, in turn, pin own the advertising media that best hits that segment. "The biggest mistake I see is putting advertising out there without a clue if it's really reaching the right people," says Tom Egelhoff, who publishes SmallTownMarketing.com. "You've really got to define your company's market. That, and you have to hold any ad sales rep you're working with accountable for the match of their media with your market."
Mistake 2: Build it and they will come storming to your door.
Akin to the mistaken sanctity of advertising is misdirected faith in the inherent appeal of your business. Just be there, slap a few ads in the local fishwrap, and customers are queuing up by the break of dawn. Success mandates legwork. Related to that, another ongoing oversight is failure to get out into the community and network on a personal level, both with potential clients as well as business associates. "You can buy into the fallacy that advertising alone brings in business — but it only brings in lookers," Egelhoff says. "Networking creates buyers who will come to you because they know you or have heard of you, not from a cold ad."
Mistake 3: Love you, no matter what.
Although the human element to gaining attention and relationships is essential, don't look past any relationship that, over time, is more problematic than productive. Perhaps you've had a client for years who chronically moves with the speed of erosion when it comes to paying his tab. By the same token, you may have held onto a sub-par employee in hopes that her performance would improve over time. Take some time
to review carefully the people with whom you work to see if any element of your relationship has deteriorated over time. If, by chance, you spot someone whose presence may be doing your business more harm than good, don't play the nice guy at the expense of your operation. "If someone is keeping you up at night, or an employee simply hasn't worked out, it may be time to sever that relationship," says Lisa Kanarek, publisher of workingnaked.net .
Mistake 4: One size fits all — always.
Many chronic problems are creepers — those seemingly innocuous twinges that grow into chronic pain, often at a slow enough crawl that makes them tough to spot. Nowhere is that more the case than in your physical workplace. For some, that may mean a Lilliputian-sized office that's somehow handling an operation that over time has grown into Gulliver. By contrast, there's the business that, for years, has doled out cash for office space that's as empty and unwanted as a Pauly Shore film festival. Give your workspace the once-over routinely to make certain that what you have for space is, in fact, what you need. Pay particular attention to home-office space where the price of success can, after a year or so, mean needlessly cramped quarters.
Mistake 5: Alone is best.
Locked in a lone wolf persona, one final persistent pitfall — particularly for home-based and startups in the first few years — is the mistaken notion that it's more efficient to do it all yourself. Trouble is, looking after one task means idling another — and that may ultimately slow profitability and growth. If you're spreading yourself too thinly or feel that even 24/7 doesn't allow enough time to address every need, see if bringing on some help may, in fact, generate more income than outgo. Break down the numbers to see if the expense of a sales rep or marketer may be more than offset by the productivity it frees up for you. "For instance, marketing can get you work, but when it comes in you have to stop marketing to perform that work," Egelhoff points out. "And, when the jobs are done, the income stops until marketing creates work again."
Source: Microsoft
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