Small Business Marketing Tips, what about asking me to return?

What do these three quotes have in common?

1. “But Paul, I don’t want to bother them.”
2. “But Paul, I don’t have the time.”
3. “But Paul, it’s too expensive and they buy from me anyway.”

They are the reasons business owners and sales people give to me for not keeping in touch with their clients.

It’s been proven time and again that the easiest client to sell a product or service to is an existing or past client. It’s also proven that they are the best source of referrals and testimonials. That said, what are you doing to keep in touch with your clients?

Do you:

1. Capture all client names?
2. Follow up with clients to thank them for their business?
3. Keep in touch with phone calls, emails, newsletters, greeting cards?
4. Ask for referrals and have a special offer, discount or gift for anybody who gives you one?
5. Ask for testimonials and get permission to use them in your marketing materials?

If not, start now. If you don’t know how, get in touch with me because I already have these systems designed and can have you trained and using them in a matter of days.

Waiting and delaying is no different than holding the door open for your competition to come in and get the business away from you. One way or another, the level of success in your business can hinge on the outcome.

Small Business Marketing to Up Your Profits in a Down Economy

The most powerful, simplest and inexpensive marketing strategies to bring your business a flood of sales and waves of profits is the joint venture (JV) or strategic alliance. Essentially, you are leveraging the relationships another business has with their customers to build your own business. They work as well in both online and off line and can be very simple or very complex, multi-million dollar deals.

Your starting point is to identify non-competing businesses that have a client profile similar to yours. Approach the owner with a letter or phone call and let them you have a unique idea that can generate a lot of new clients. There are a couple of things you can try.

One is to offer to pay for a mailing to their clients recommending your service or product. Include a special offer, with a deadline for redeeming, that is unique to their clients. I’ve found that creating a coupon on which the offer is printed improves response.

Some businesses you approach will express concern about the confidentiality of their list. If so, offer to have them send it directly to their list themselves. You will want to write the sales letter or coupon yourself but allow them final approval on the copy.

Another tactic is to create a mailer on which you both print an offer and mail it to your combined client lists and share all expenses equally.

I believe it is very important to conduct due diligence and to take the time to get to know your potential business partner as well as the quality of their products and services. If you plan on recommending somebody to your valued clients, be sure they will meet your standards and expectations.

Typically, only about three of ten business owners will wish to pursue a joint venture so you’ll need to make several calls but it will be well worth the effort. In my opinion, the JV is about the most powerful marketing strategy any business, large or or small can implement.

Up your profits in a down economy – Increase client value

In this order, these are the easiest people to sell to:

1. An existing client
2. A past client
3. A referred or endorsed client
4. A cold prospect

This list is an established fact. Even knowing this, where do the vast majority of companies spend the majority of their marketing dollars and effort? On number 4, the cold prospect. Nearly every client or prospect I speak with spends little, if any of their marketing dollars strengthening their relationship with their existing clients.

The thing is, most of them realize they should be keeping in touch with customers but still do nothing about it. Very few companies even have any process or method of getting basic contact information like name, address, phone number, email address or a list of the products purchased by their clients. According to a study conducted by the Direct Marketing Association, for every month that passes without your contacting your clients, there’s a 10% reduction in loyalty to your business.

For about $10 to $15 per client per year, nearly any business can build a customer contact program that will dramatically increase their sales and profits at a fraction of cost of obtaining a new client. Ideally, you will have 12 to 14 contacts per year. Rather than looking at this as an expense, look upon it as an investment in the lifetime value of your clients.

The key to success in your client contact strategy is to include an offer, a coupon, a discount or other reason for your clients to contact you and purchase additional products or services from you.

In my next post, I’ll list some of my favorite client contact strategies and tactics you can use to increase your profits.

Till then…
Dedicated to multiplying your sales!

Up your profits in a down economy – Post 3

In my last post, I wrote about the importance of improving your selling skills. Without a doubt, it is the simplest way to dramatically increase the value of each sale.

Even if you don’t take the time to go through a professional selling course or book, there are some things you can do to increase the average transaction value.

• Start by identifying your most popular selling products or those that are easiest to sell.
• Select one or more products or services that compliment these products.
• Create “bundles” with special package pricing that applies if the client buys the extra product at the same time as the initial purchase.
• Create a sales script and rehearse the words that you will use to up-sell to a client. Say you own a pet store and a client just bought a training leash for their new dog. You say, “If you are using this for training, I recommend you also get the bookGood Owners, Great Dogs. I think it’s one of the best training books ever written. If you get the book today with the training leash, I can discount the book 10%.”
• It’s that easy. The key is to know what extra value you can bring to your client, believe in the value of what you are offering and ask the client to buy it.

The key is to get used to asking. Will it work every time? No, but it will only work if you ask! Whatever you sell, it is very likely you can add value with additional products. Since you’ve already spent the money to get the client in front of you, you owe it to yourself and the client to insure they have everything they need!

Up your profits in a down economy – Increase profit per transaction

One of the simplest tactics for increasing your profits is to pay attention to the client who is directly in front of you. It doesn’t matter if you have the person on the phone, in your store, in your restaurant or on your web page, it is fairly simple to get the client to buy more.

Most businesses leave an absolute fortune on the table because they simply ring up the sale that is in front of them and make absolutely no effort to add to the transaction. To put things in perspective, think of the additional profits McDonald’s makes every year because they ask the question, “Would you like fries and a Coke with your meal?” Most of us could easily retire if we had that money!

The easiest person to sell to is an existing client. What you need to do is to train yourself and your staff to ask/recommend to the client to buy more. Too many people feel they are being pushy but that’s not the case. Imagine yourself in a clothing store. If a salesperson suggests a nice shirt to go along with the slacks you just bought, do you feel they are being pushy? What about the waitress who encourages you to get dessert? Do you think she is being pushy? I doubt it!

The bottom line is that it comes down to selling skills and having an attitude of serving your customer. If you have a good product or service, offering it to your client is a way to serve them.

Have you ever read any sales books or bought any sales programs? It is one of the strongest recommendations I have for you. It’s made a major difference in my income over the years and can do the same for you. Spend some time in the bookstore, online or in the library. Buy several programs and develop your own style around the proven strategies and tactics of the sales masters.

Click on the resources tab at the top of the blog and see who I recommend. Become a student of sales and apply what you learn.

Unique Selling Proposition Part 3

In this video, I continue to discuss the Unique Selling Proposition and get into the details of how to use the information you’ve gathered in the previous steps and begin writing and refining your million dollar USP!

Attract premium and profitable clients with a powerful Unique Selling Proposition

Why should I buy from you?  A simple question but one that few business owners are able to answer.  They say, “We have good service,” or “We’ve been in business for 50 years.”

To the we have good service company, I say, “Well, you better have good service or I’ll never be back.”  Good service is expected, it’s not a differentiator.  If you’ve been in business for 50 years, that may mean nothing to most people.  Who cares how long you’ve been around?  TWA was one of the best known names in the airline industry.  They gave good service and were in business a long time.  They are now a nostalgic memory.

Your Unique Selling Proposition (USP) answers the question, “Why should I buy from you vs. your competition or do nothing at all?”  If you can’t answer that question, then you are hoping your prospect will figure it out on their own and will hopefully decide you are worth the investment.

Creating a USP is not as dificult as it may seem, if you follow a process and approach it as a stategic project that answers the why should I buy from you with a compelling reason.  If you approach this as a project to create a clever slogan for an ad, you are handicapping yourself.  In a series of videos, I am going to walk you through the process of creating a powerful and compelling Unique Selling Proposition.

I hope that you find these videos helpful.  At any time, feel free to contact me, Paul Flood, to discuss or review your USP.

Can you hear me now?

As a hobby, I am a woodworker.  I have learned to build fine furniture, jewelry boxes and a wide variety of other wood projects. I’ve even done some custom commission work and made decent money for doing so.  Someday I’ll get some pictures of my work on my site so you can take a look at my work.

Yesterday, I was down in my shop working on a shelf for the patio and took a look at my tools and other things in the shop and wondered which were the most valuable.  I actually have several thousand dollars worth of woodworking machinery and hand tools.  I’m pretty proud of my collection.  I couldn’t decide between the top two so it ended up being a tie for first place.

What would you guess I chose?  Was it my cabinet saw, router, planer, workbench or any of my hand tools?    My cabinet saw is definitely what I use them most and if you were to survey woodworkers about the most valuable tool, the cabinet saw would win, hands down.   What But that’s not the case for me.
The two items have a combined value of $30.  One is my safety glasses and the other are my hearing protectors.  Why am I telling you this?  Because I believe the two most important selling and marketing tools are closely related to my choice of shop tools.  In sales and marketing, your eyes and ears are the most important tools.

A 1972 UCLA study concluded that the words we say account for 7% of our overall communication!  The other 93% of our communication is non-verbal and consist of body language and voice quality.  Now you can see why I chose the tools that protect my eyes and ears!

Your eyes allow you to read the body language and emotions of your customer.  You can see if you are connecting with them or if you are boring them.  Are they engaged with you or just being polite?   Your ears allow you to hear voice inflection and tone.

Can you read or have you ever studied body language?  Crossed arms and legs reveal the other person is closed to your comments or you.  A person leaning back with arms behind the head is saying “Oh really, prove it!” Someone leaning forward is engaged and interested in what you are saying.

Entire books have been written about the topic and can help you, not only in sales and marketing, but also in personal relationships.

Understanding body language can mean a huge difference in your sales.  The scope of this issue goes way beyond this newsletter but if you would like to know about some of my recommended resources, give me a call or send me an email.

We’ve all heard the cliche that God gave us one mouth and two ears so we can listen twice as much as we talk.  Well, there’s a reason it’s a cliche – it’s true, particularly in sales. You will only know what benefits to stress when you understand your client’s needs.  How can you propose a solution if you’ve done all of the talking?

Listening is an art.  A key listening skill is to avoid formulating a response until you finish listening to what your client is saying.  Notice I said listening, not hearing.  Ask your client or prospect to clarify and elaborate be sure you are answering the question they asked.  Avoid interrupting, unless it enhances or clarifies the topic.

Think of how frustrating it is for you when someone interrupts you in the middle of a sentence or answers your question with an irrelevant answer.

Remember the E.F. Hutton commercial years ago?  Their USP was that when E.F. Hutton talks, people listen, inferring their advice was more valuable than you could get elsewhere.  Just think about that, their sales soared because they said YOU should listen to THEM!

Dean Whitter countered with Dean Whitter grows one client at a time, meaning they took the time to listen and take care of you before they moved on to the next client.

As you look to improve your selling skills and learn new methodologies or new concepts, remember that the things that can make the biggest difference is how effectively you read the body language of your client, how effectively you use your own body language and finally, how well you listen.

Understand the business that you are in!

1. You are in the marketing business.  Everything you do
ultimately affects your marketing.
2. Your business or industry is not different.
3. You must build a marketing system using several different
marketing strategies.

Understand the business that you are in.  Regardless of the product
or service that you sell, you are in the business of marketing that
product or service.  Marketing brings you clients and until you
have clients you don’t have a business.  You may have a store, a
profession, a practice, a factory or whatever else your product it
but without clients, you are still in the idea phase.

Management guru Peter Drucker tells us Marketing and Innovation
make money, everything else is a cost.  When you understand you are
in the marketing business, you realize everything about your
business is part of your marketing.  They are either taking you
closer to more sales and profits or moving you away from them.

One of the biggest business marketing mistakes that prevents
businesses from succeeding in the marketing business is to think
their business is “different” and that they are somehow “special.”
They think their profession or industry is different and that the
marketing rules don’t apply to them.  If you happen to have this
mindset, let me ask you these questions:  Are your customers
people?  Do they have emotions?  Do they make emotional decisions.
Do they want to be taken care of and get quality products and
services?  Do they want a better life for themselves, their
families and businesses?   Do they want to be happy and have
fulfilling lives?

If your clients are people and have the above traits, guess what?
Your business is not “different.”  What if your clients are
businesses?  Well, the client may be a business but the the buying
decisions are made by people who are making them based on their
emotions and feelings about the products.  I have personally been
involved in and made buying decisions from as small as the ad
specialty pens to give to clients to multi-million dollar shipments
manufactured overseas and shipped in on containers.  I made those
buying decisions as a person, not as a business.

These business owners also think their industry is different and
they have standards to adhere to.  I am not referring to
professional standards, codes of conduct and behavior or ethics.
These, of course are valuable  standards that may protect the
public and the integrity of your industry.  I’m talking about
marketing standards.  These are not official but have become the
norm.

After many years of experience, I am still astounded by the number
of times an owner shows me a web site, ad or brochure of their
competitors and tell me they want their materials to look the same.
I ask if they are different or better than the competition and the
answer is always a resounding, “Of course!”  I then ask, “If you
are so much better, why do you want to look the same and have the
same message?”

The lesson is this:  Everything you do that potentially impacts
your clients and prospects is part of your marketing.  Your
products, your staff, your policies, your building, your restrooms
and the list is nearly endless.

You must have a marketing system built on multiple pillars (or
strategies).    The exact strategies vary but the key is to use
several.  At the top of the list are strategies to maximize the
value of a client (which we will address in a later chapter) and to
build a long-term relationship with them.  Direct mail, media
advertising, sales representatives, email, fax, a web site,
telemarketing, referals, joint ventures and alliances networking
are all examples.   The key is to never rely on any specific one
strategy because if it fails for any reason, you have problems.

Can You Hear Me Now?

As a hobby, I am a woodworker.  I have learned to build fine furniture, jewelry boxes and a wide variety of other wood projects. I’ve even done some custom commission work and made decent money for doing so.  Someday I’ll get some pictures of my work on my site so you can take a look at my work.

Yesterday, I was down in my shop working on a shelf for the patio and took a look around the shop and wondered which tools were the most valuable.  I have several thousand dollars worth of woodworking machinery and hand tools and I’m pretty proud of my collection.  I couldn’t decide between the top two so it ended up being a tie for first place.

What was my choice?  Was it my cabinet saw, router, planer, workbench or any of my hand tools?    My cabinet saw is definitely what I use them most and if you were to survey woodworkers about the most valuable tool, the cabinet saw would win, hands down.   But that’s not the case for me.

The two items have a combined value of $30.  One is my safety glasses and the other are my hearing protectors.  Why am I telling you this?  Because I believe the two most important selling and marketing tools are closely related to my choice of shop tools.  In sales and marketing, your eyes and ears are the most important tools.

Words only play a small part in communications

A 1972 UCLA study concluded that the words we say account for 7% of our overall communication!  The other 93% of our communication is non-verbal and consist of body language and voice quality.  Now you can see why I chose the tools that protect my eyes and ears!
Your eyes allow you to read the body language and emotions of your customer.  You can see if you are connecting with them or if you are boring them.  Are they engaged with you or just being polite?   Your ears allow you to hear voice inflection and tone and understand your prospects needs.

Understanding body language and how to use it can mean a huge difference in your sales.  Countless studies have been done on the topic and you can find great resources online and in the library.  A study I read about several years ago revealed that the salespeople who sat with their legs crossed during the sales presentation closed dramatically fewer sales than those who sat with legs apart.  I don’t recall the exact percentage but it very significant.

God gave us one mouth and two ears for a reason

Some people see it as a cliché.  Well, there’s a reason it’s a cliche – it’s true, particularly in sales. It is so we can listen twice as much as we talk.  You will only know what benefits to stress when you understand your client’s needs and you can’t identify their needs and wants if you’re doing all the talking!

Listening is an art

A key listening skill is to avoid responding until the other person is speaking.  Notice I said listening, not hearing.  Ask your client or prospect to clarify and elaborate be sure you are answering the question they asked.  Avoid interrupting, unless it enhances or clarifies the topic.

I once heard a friend in a conversation with another person and he was quite frustrated about being interrupted by the other person.  He finally said, “Our conversation will be a lot better if you wait for me to finish my sentence before you talk.  You will know when I am done talking because I will stop.”   Talk about getting to the point!
Think of how frustrating it is for you when someone interrupts you in the middle of a sentence or answers your question with an irrelevant answer.  It shows they did not hear or care about what you were saying because their thoughts were what mattered, not yours.  The same applies in sales.  The top earners are not pushy and brash, they are recognized as professionals who understand and fulfill their client’s needs.  They do so because they listen and recommend solutions that will benefit the client.

Do you remember the Dean Whitter commercial that ran several years ago?  The tagline was “We grow our business one client at a time.”  I thought it was brilliant.  It meant they listened and cared about YOU, not the next sale.  The campaign ran for quite some time so it was obviously a success. It was built around the simple precept that people appreciate someone who listens to them.

As you look to improve selling skills, remember that the things that can make the biggest difference are as simple as seeing and listening.  Now, let me ask you… Can you hear me now and what do you see?

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