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Jim Blair, President |
Coaching BlogFour Steps to Double Sales Presentation Effectiveness When John Doerr, a business consultant with Wellesley Hills Group was starting his practice, he knew he would need ongoing legal advice. He decided to interview three law firms. The first two groups came in and for 45 minutes told John how great they were. At the end of both diatribes, they finally asked John about his legal needs. But the third firm started the conversation by first asking John about his family and work. Then they asked about his needs for legal counsel. Last, they asked if John had any questions about their firm. Of course, John hired the last group. They were the only ones who showed they were really interested in his needs. They knew how to uncover needs with appropriate questions. In a down economy, you must increase the close ratio in your sales interviews to compensate for fewer opportunities. One way to do that is to follow the needs analysis system for sales presentations known as RAIN. RAIN System RAIN is a series of sequential questions which incrementally open the prospect up to saying yes to your solution to his problem. The following are some ideas for developing rapport: Uncover needs (afflictions): Going deeper: Impact: New Reality: Paint the picture Don’t Do This Just like the attorneys’ presentation above, business owners and marketers tend to think the features of their products and services are the reasons customers choose them. That’s not the case. Your care and concern for them, shown by asking the appropriate questions is what wins the business. The old saying is true, “No one cares how much you know till they know how much you care.” Put aside the temptation to tell your story first. Instead, ask your customer about his story. When he feels you are putting his needs first, he will give you plenty of opportunity to talk about yourself. Seven Tips for Effective Direct Marketing In developing an effective marketing strategy, over one hundred marketing tactics tempt business owners on a regular basis. Social media, direct marketing, relationship media, search marketing - it’s difficult to decide what’s best for your business. Let’s review the purpose of our marketing – to develop ongoing relationships with our prospects in order to prove our credibility, trust and likeability. We are going to cover each of the major marketing strategies in this column and today we will concentrate on one of them - direct marketing. Direct marketing is characterized by sending a message directly to a consumer or business while bypassing a third party carrier – such as a newspaper. Another characteristic is trackability. We must track our marketing responses. Without tracking, marketing is public relations. Here are seven tips for utilizing direct marketing effectively. Direct mail – I’ve heard many business owners say they tried direct mail but it didn’t work. After investigating, I found out why. They mailed only once, to an untargeted list, with a message that was boring with weak headlines and no photos. Worst of all, the mail piece included no call to action. If you correct those features, response will improve greatly. Don’t forget to track your results so you can assess the success of your mailing. Telephone – I don’t believe in telemarketing in the sense you are thinking. I’m talking about a helpful, informative, mannerly caller who asks for an opportunity to trade free educational material for an email address. The goal is to exchange free information, like a downloadable special report or a CD for their contact information. Then you can market to that person basically for free in a permission-based email campaign. Email – Spam is never OK. But, permission-based or opt-in email campaigns are effective and inexpensive. Like direct mail, copy using normal conversation, interesting headlines, and call to actions are key ingredients. Shorter is better than longer – less than 70 words. The biggest deal is building your list. You want to develop strategies for gaining email addresses and permission to email. Building your list really is your marketing future, no matter which tactic you employ. In-person – Turn strangers into friends and friends into customers. Add big value. Nothing works better than being there in person. If at possible, include a personal visit every day to a customer or prospect. It’s you, yourself, that makes the strong connection. And when you are friends with your customer, you don’t any competitors. Networking – I used to hate networking but I enjoy it now. It changed when I realized I attended an event to give first to . Instead of trying to get something for myself first, I was there to share helpful information, contacts or compassion with those I met. This attitude leads to interesting exchanges that sometimes lead to exchanging business cards, phone call follow-ups and business. But first things first. Network to give and then you will gain. Public speaking – Not everyone feels like they can speak in public. However, I am constantly surprised when the quiet ones turn out to be great speakers. Public speaking is a good way to position you as an “expert.” When you are an expert, your marketing and selling get a lot easier. People approach you rather than you approaching them. It’s a terrific marketing positioning tactic. And, you can learn to be a speaker. Check out Brian Tracy’s books. Door hangers – Hanging marketing communications is popular now because it’s inexpensive and effective. Hire teenagers to hang 400 pieces in a neighborhood in two hours. You avoid postage costs. Pay $8 per hour and your done. Again, track to results to the call to action. Direct marketing is very effective. Use a targeted list, include an attractive offer and call the customer to act. Remember the overall goal is to establish ongoing relationships that make buying from you easy. How to Attract More Customers with Education-Based Marketing I attended a very good Chamber seminar this morning where Chris Graham, editor of “The Augusta Free Press,” gave a presentation entitled “Marketing on a Shoestring.” He described the low cost benefits of marketing with Facebook, Twitter and press releases. He knew what he was talking about and earned a lot of respect in my book. There was one thing Chris didn’t do. He didn’t ask for any business. He didn’t sell us anything. Even though he owns a business and 50 people were listening, he passed on the opportunity to offer his services. Chris left us wanting to know more, about him and his business. I don’t know if Chris did this intentionally but he illustrated well the best use of marketing – to educate your prospects and customers. He demonstrated how education-based marketing trumps traditional sales-based marketing. The misconception among service providers is that marketing’s primary focus is to promote what they do – their services. But in reality, marketing should be showcasing your knowledge, credibility and trustworthiness. Since no sale is made without trust in the supplier, then educating to that end is the goal. Develop your educational message As a provider of services, you want to develop helpful, informational content and give it to your prospects and customers. The way to develop your content is to put yourself in the customer’s shoes. As he begins to think about buying your type services, what are his questions and concerns? What does he want to know? The answer to those questions is your educational content. For example, if you are a home remodeler, your customer might want to know “What are the best materials for my countertops – and why?” “What is the return on my remodeling investment if I sell my home?” Any homeowner thinking about renewing their home would love to have a helpful report answering those questions. And that is exactly what the remodeler can provide in his marketing to gain credibility and trust. How to package your educational message to generate qualified leads Once you develop your message you want to package it and give it away in exchange for your prospect’s contact information. This is very important. Marketing not only provides information but it creates a response. You want to gather email and/or physical addresses so you can continue marketing to them. You can package your content in many ways. You can develop helpful articles, special reports, e-books, seminars, webinars, teleclasses, informational newsletters, workshops, CD’s and DVD’s etc. How to deliver your marketing message You have developed and packaged your educational marketing message. Now you determine how and when to deliver the message. Think about the different “touch points” your customer comes into contact with in your business. It might be your website, networking opportunities, seminars, phone conversations, advertising etc. Our remodeler might have a phone conversation and end it by saying, “Thanks, Joe, for calling and if I can be of service to you at any time, let me know.” Or you could say, “Joe, thanks for calling and by the way, I have developed a special free report on the 10 ways to go “green” in your remodeling project. Would you like me to send that to you?” Of course, he will say yes. You gave accomplished three big things: 1.You have generated goodwill with the free gift. 2. You have collected his contact information for future marketing. 3. You have a legitimate reason to follow-up with him after he receives his special report. Try not to give a sales pitch By providing helpful, educational information, you have set yourself apart from your competition. Most of them will be using sales-based marketing. The beauty of this marketing strategy is that you give what your customers want – helpful, free information and don’t give what they don’t want – a sales pitch. By offering educational messages you position yourself as an authority in your field because you are a reliable source of information. Be careful not to give a sales pitch. It only erodes the trust you have developed and makes you the same as your competitor in the eyes of your customer. Conclusion Chris Graham’s seminar this morning accomplished its goal. It was educational and non-threatening. It built credibility and trust. It kept the door open for more dialogue. It did not include a sales pitch. If you, the service-based business, follow Chris’s model, you’ll enjoy more sales and higher closing ratios. Relationship Marketing Creates Clients for LifeI love springtime, the colorful flowers, green grass and deep, thick mulch. What a beautiful change from the bare trees and brown gardens of winter. As you know, a beautiful garden requires some thought and labor on your part. At our house, we are adding nutrients to the soil, spacing the flowers and plants appropriately (I hope so, anyway) and planning for sun and water to feed the new plantings. Great marketing follows the same principles – your care and attention - for the customer. I call this LUIGI marketing. LUIGI marketing provides what your customers want for a healthy and profitable business – no matter what product or service you offer. LUIGI stands for: You see, all business stands on providing more value than the service costs. What we tend to forget is your customer wants personal care and attention first and foremost. Before engaging in blogging, Twitter or direct mail, plan for personal connection with your customer. Think about it, who would you rather buy from, someone you know, like and trust or someone you just met? If you are a good friend of your customer you don’t have any competition. Listening One way to listen is ask your customer how you are doing. You can use an email survey or you can ask in person. Either way, ask what you are doing well and how you can improve. Understanding Let me just stop right here and say that I know some of you are saying, “Personal or relationship marketing – that sounds sappy or non-technical or out of date.” Perhaps it is sappy and out of date but if you skip over these principles you are going to lose out on profits – big time. Just Google marketing and you’ll find this same story over and over from the great marketers. Please don’t miss this. Guiding Increasing Our gardens have potential to be beautiful this time of year. Gardens require personal attention for growth and health. Our customers need personal attention, too. LUIGI marketing is the plan to follow. Listen, understand, inform, guide and increase. Before you jump into planting, prepare the soil. Before you expect great things in your business, provide personal, relational marketing. Personal care insures growth both in your garden and with your customers. Three Steps to Catapult Sales While Reducing CostsIn a down economy how do you gain more customers with a smaller marketing budget? You create a referral generating factory. You create a company-wide mindset to gain referrals. It’s still the best way to market a small business. You have to go back to basics when times are tough. I know most business owners do not like asking for referrals. It seems pushy. But that is the beauty of it. Once you do a great job for a customer the Law of Reciprocity kicks in. He wants to give back. How can you let him help you? You provide an opportunity to pass referrals to you. Satisfied customers want to refer you Step 1. Ask for referrals Step 2. Keep in touch Step 3. Provide big value If you create a consistent, fun atmosphere in your company and ask for and follow-up on customer referrals you might almost be able to retire your outside sales team. In order to evaluate the value of this referral strategy commit to it for a year. Remember to develop a referral tracking system. Keep in touch with customers regularly so they won’t forget you. Provide more value than your customer expects. If you follow this system a referral generating machine will develop. Five Ways to Stop “Selling” in Order to Grow SalesIn today’s tough economy it’s easy to fall back into old sales habits in order to “persuade” or pressure the customer. I was reminded of this tendency recently when doing some sales coaching for a small business. The sales person was under pressure to keep sales from sliding. He fell back into the mindset that if he used more and better closing techniques, his customer would be more likely to buy. Even with this increased effort the salesperson was not successful. He illustrated to me again that we need to re-examine our core beliefs about selling. I’m suggesting some new thinking will create better results. Here are five new mindsets to “stop selling” in order to grow sales: 1. The traditional mindset says, “Always deliver a strong sales pitch.” The new mindset says, “Stop the sales pitch and start a conversation.” When calling a prospect, instead of jumping into your presentation, why not ask them “if they would be open to some new ideas about a solution to….” This allows a conversation to develop. The customer is not immediately put in the position of making a quick decision – which might be no. 2. The traditional mindset said, “The goal is to close the sale.” The new mindset says, “Find out if you and the prospect are a good fit.” If you let go of trying to close the sale or the appointment and find out if your services meet your customer’s needs, you don’t need to take responsibility for moving the sales process forward. Your good questions naturally evoke responses that do that. Ask, “What is it you are trying improve in this department?” Or, in a retail environment, “Are there birthdays or anniversaries approaching where you need a present?” If you ask the right questions, the customer will join you as a teammate and close the deal for you. 3. The traditional mindset, “If you lose a sale, it’s usually at the end of the process.” The new mindset, “If you lose a sale, it’s usually at the beginning of the sales process.” Usually we lose a sale when we say something at the beginning that causes the customer to get defensive. Did you start a conversation or begin a sales pitch? Did you include old “sales lingo?” When you sound like a traditional salesman, the customer puts you in the classic “he’s just a salesman” box. He won’t open up and reveal his issues. He stays at arms length emotionally. Trust begins with using language that does not trigger any negative emotions. 4. Traditional thinking, “Rejection is a normal part of selling.” The new mindset says, “Sales pressure is the only cause of rejection. Rejection should never happen.” Again, sales pressure occurs because we said something that triggered a defensive emotional reaction. When you give up trying to control the sales process and focus on the customer’s needs and wants, the customer has nothing to “defend” against. Then, if there is a good fit, they will want to work with you quite naturally. 5. The traditional mindset, “When a customer offers objections, you should counter or challenge them.” The new mindset says, “If the customer offers objections, uncover the truth behind them.” Traditional sales systems spend a lot of time teaching how to “overcome objections.” This fails to acknowledge that the customer is keeping the real reasons to himself, at least for now. If the customer offers an objection, simply say, “That’s not a problem.” Then, with dignified, gentle language begin to try to listen to and understand their viewpoint. Ask questions gently. Make sure they understand you are not just “trying to get an order,” but really want to know if you can help them solve a problem. If you are in sales or management, even when you are tempted to think the old sales techniques of chasing, controlling and closing are needed, remember what the customer really wants you to provide. He wants you to put him first. If you listen well, understand his problem and offer a solution that fits, without the old sales lingo, your sales are going to do quite well. The Secret to Keeping in Touch with CustomersGaining more and better customers in 2009 is a lot like going out on a first date. Both of you enjoy dinner and a movie and have fun getting to know each other. The evening goes very well. Fast forward six months. You see your date in the grocery store and say, “Our date was a lot of fun. Let’s do it again. Are you free next Friday night?” She says, “Yes, I did have a great time. Why didn’t you contact me again?” Customers feel the same way. They bought from you but never heard from you again. Or, more likely, they heard from you six months later. That’s too late. Customers always hope you will provide the value from your goods and services you promised in your offer. After they buy, they’re hoping for more conversations so they can feel good about buying again or referring their friends to you. This is true of any business – a restaurant, a contractor or business professional. Customers want you to come through for them. That means keeping in touch. Keeping in touch with your customers is where the big money is. It is eight times easier, statistically, to obtain an order from an existing customer than a new one. Think about it. If you really needed business immediately to keep your business going and you couldn’t borrow any money, what would you do? You’d probably contact one of your satisfied customers, explain your situation and ask him for business. And, your customer would try his best to give it to you. Would a new prospect do that? Probably not. So, in the same way, the easiest and quickest way to get more business on a regular basis is to keep in touch with satisfied customers and ask them for more business. What are the best tactics to use when keeping in touch? There are many to choose from. Here are my three favorites. I like paper newsletters. People are more likely to read them than email newsletters. They are more likely to be filed and read again if the information is valuable. Paper newsletters are especially cost effective if your mailing list is small. My next favorite tactic is the blank post card. Hand write a thank you note and include a PS. that offers something new. Invite them to an event or a sale. Always include a call to action. My third selection is the monthly email newsletter. For those with a large list, this is the easiest keep-in-touch strategy. Include valuable, free information. Provide so much value that they get upset if your newsletter doesn’t arrive on time. The benefits of a keep-in-touch strategy are that customers will remember you when they need your type of service in the future. They won’t forget you. You’ll develop friendships with your customers that effectively lock out your competition. Finally, you will gain more business. Pure and simple, keeping in touch results in more business. The key is understanding that your customers and prospects want and need your helpful and interesting information. Providing it on a regular basis is the right strategy. I have been assisting my clients this month with their 2009 marketing planning. Coincidentally, I had been a customer of one of them. So, I knew this client’s service up close and personal. When we got to the keep-in-touch section of the plan he did not feel it really applied to his business. At that point I reminded him of our conversations when we did business together. There were two parts to the project and we opted to do it in two phases. After the successful completion of phase one, my client never contacted us about phase two. A year passed. It was one of the reasons we changed our plans and went in another direction. If my client had stayed in touch with us I’m sure we would have done more business together. If you haven’t already, take time to plan your marketing for 2009. It is essential to have a road map. Your marketing plan provides that direction. The keeping-in-touch section of your plan is the “boots on the ground” that gets it done. Commit to a consistent, long term strategy. Mail to customers, utilize permission email marketing and send personal post cards. Your customers will love you for it. A successful first date is the beginning of the story, not the end. Make sure there is a second date by keeping in touch. One of the Most Powerful Marketing Tactics on the PlanetYour monthly newsletter is one of the most powerful marketing tools in your arsenal. “In fact,” Ben Hart, the marketing guru, says “it’s almost as good as printing money in your basement.” Here’s why:
I prefer postage-paid paper versus email for a delivery system. The reason is paper newsletters pull better than email. They maintain their value longer because an email can be deleted by one keystroke. And, paper newsletters are perceived as having more value. Email is a great marketing tool but it’s not the most effective method for a monthly newsletter. Why monthly? Studies show that newsletters begin to lose their impact when delivered more than 30 days apart. A quarterly newsletter allows too much time to pass. You can certainly send newsletters more often if you have enough content. That doesn’t hurt you. Since you will be sending valuable information in other forms such as thank you notes and emails, a monthly newsletter is just right. The Math Here’s how the monthly newsletter provides a fantastic return on investment. Let’s say it costs $.80 to print and mail, including postage, your newsletter. That’s $10 per year. If your average sale profits you $100, you only have to close one order every 10 years to break even. What if your profit is $300 or $1000 per sale? Can you see how this tactic starts to look like an ATM machine in your den with unlimited funds? What if you own a restaurant and your profit per sale is only $20? If your customer dines once a month for a year you have gained $240 minus the $10 cost or $230. Not bad for a relatively small ticket item. Many service providers like CPA’s, consultants and construction companies obtain large sums per sale so, for them, this is a no-brainer. What do you say? The famous advertising genius, Claude Hopkins said, “There are no boring topics only boring writers.” There is no end of material on the internet to help with your content. If you like writing, of course, write your own. Remember the goal is to provide helpful, interesting and valuable information for your customer. Your newsletter is not so much about your company as it is about adding value to the reader. You can also include information outside your field. A construction company can include a helpful tip on marketing or insurance. An interior decorator can include helpful hints on selecting painting companies. Provide a calendar of events from your community. Anything that is helpful will gain your customer’s appreciation and trust. Include strong calls to action Many newsletters miss the opportunity for more sales by not including strong calls for action: “Call to register for your free movie tickets,” or “Email us this week to hold your seminar seat,” or “Visit our website for our new video.” It is essential in this digital age that you drive your customer with your newsletter to your website. We will discuss this in other articles but internet marketing, with your website as the storefront, is one of the big keys for your future. Fancy not necessary An 8 1/2” x 11” sheet folded once and stapled is the easiest format. Your newsletter in an envelope is even better. Either way, content is king. It is better to mail it consistently each month than try to arrange for fancy graphics/format and not mail it at all. If you are a small business, go ahead and include your photo in the mast head. If you don’t have it, don’t worry about it. It is not essential. If you want to spend time on anything it might be the headings. Make them intriguing and interesting. Get the reader’s attention. Help people remember Dan Kennedy, the super marketer, said that for every month you fail to contact your customers you will lose 10% of them. I have learned that lesson the hard way. Even if you have provided a service within six months people tend to forget you. Some customers buy on impulse so if you are not readily available when they buy next time, they will buy from whomever is handy. That is why the newsletter is essential for your business growth. It does not allow your customer or prospect to forget about you. If you drive down the same street in your town you see the same retail stores on every trip. Their storefront signs are always sending their message. You can’t ignore them. But if your business has no sign, how do you consistently remind people of your services? If you mail a monthly newsletter, that becomes your sign. You won’t be forgotten. Printing money in your basement is illegal. But in business, mailing a monthly newsletter is the next best thing. Selling Made SimpleRecently I had the opportunity to make a joint sales call with one of my client’s field salesmen. We were seeing a local developer regarding installing equipment in a new home. The salesman arrived at the location and almost immediately began listing all the superior features of his equipment and where it should be installed. The contractor listened and followed the salesman around the home during his presentation. The Customer’s Unspoken Need The salesman went to his car to retrieve a brochure and during his absence I asked the developer where he was from and how his business was going. Then I asked him, since he had other options open to him what he wanted from a supplier of this type of service. He smiled and said he just wanted the supplier to arrive on time. I asked him, in that case, if they arrived on time and did a good job at a fair price, would he hire him? He said, “Yes.” My client’s salesman missed that conversation but I relayed the information. He ultimately got the order. This story is not uncommon in the world of sales, whether talking with a small business owner, salesman, customer service rep or executive of a large corporation. The person making the presentation is thinking more about himself and his “sale” than he is about the needs and wants of the customer. Consequently, many times, he misses the opportunity to meet those needs. This salesperson needs a helpful system to guide him. The following is the “Selling Made Simple System,” designed to meet your customer’s needs and make sales more fun and authentic for you. Give first, Ask, Listen and Dialogue First, in order to effectively market and sell your services you must have the mindset of a trusted, long-term advisor. Who would you rather buy from, a trusted advisor or a salesman? If you become an advisor you will attract a long line of solution-seeking customers. The next step in the sales system is to ask about the customer’s needs and desires. You want to find out what his goals are - in the business and/or in this transaction. Then you want to listen. Encourage your customer to tell you as much as he is comfortable about the project. Facilitate a dialogue. A good rule of thumb is “talk less and listen more.” Offer Benefits The salesman in the story above offered the features of his products and services. That is what most of us do. But what does the customer really want? Is he buying just features? Or is he buying the bottom-line benefits? He is buying benefits, even if he doesn’t realize it. All successful sales and marketing is based on meeting the needs and desires of your customer. Emotion is involved. Nike’s “Just Do It” slogan is not selling features – it connects with the runner’s emotions to excel, be healthier, look better, feel better, and be adventuresome. So, in our sales effort, dig a little deeper to find the underlying reasons your customer is buying. Then provide what he wants at a good profit. Ask the Big Question By now, you are developing trust and credibility with your customer. You are offering solutions, asking the right questions and listening well. The real secret in the “Simple Selling System” is then to ask the question, “Would you like a partner to help you in meeting your goal?” That question is powerful because you aren’t asking him to buy anything - you are simply offering to help in meeting his goal. Who wouldn’t want that? If your customer is hesitant or says no it does not mean he is rejecting you personally. Generally it means there is some lack of information or trust that prevents him from saying yes. In that case, simply ask him what the issue is. If he tells you, if you can meet his request, then you have won a customer. If not, then the timing is not right. Remember from our last article that timing plays a role. Not all customers are ready to buy when you make the offer. Always Stay in Touch That leads to the last step in our Sales System. Stay in touch. The story is not over. Do not let your prospect forget about you. He is still processing. Keep the conversation going via email, personal visit, phone call, invitations to the next event, post cards etc. This is so important. Stay in touch and the hard work you have done thus far will pay off. Finally, remember that sales and marketing is really about relationships and giving first to your customer. Follow the steps in the sales system above. Practice them. Put your customer’s needs first, become his advisor, ask, listen, partner and keep in touch. Your customer is hoping you will come through for him and meet his needs, not just offer features. Put him first. Then you will gain. The Making Business Come to You Sales CycleSuppose I were to ask the woman who was to become my future spouse out on our first date and then proceeded to ask her, “Would you marry me?” What would be her response? Of course, she would say, “No.” And if I followed with the question, “Why not?” She would almost certainly say, “Because I don’t know you yet.” The deepest and longest lasting relationships need understanding and trust to build over time. It is the same in business. Customers are always looking for service providers they can trust. Products and services are not the biggest issue. Trust is. Trust is built one conversation at a time. You want to turn strangers into friends and friends into customers. That series of conversations and their relevant, authentic content will be the basis for your marketing and sales campaigns. In order to build trust over time with your marketing messages you must know and demonstrate the answers to the following questions: Who is your target market? Who do you want to connect with and who will recognize you as the best solution to their need? Now you can move to the most powerful step in the sales cycle – “always have something to invite them to.” One reason many small business owners dislike sales and marketing is because it feels they are selling something that people don’t really want. Another complaint is that selling is uncomfortable, pushy and not authentic. It’s not “really them.” That is why I suggest you invite people to sample your services in such a way that it is like talking to a neighbor across the fence – easy and relaxed. Don’t try to sell but offer invitations. Who doesn’t want to be invited to a helpful and fun event? Step two is to invite your customer to experience a small sample of your services at no cost in order to capture their information for future communication. This is the key. Since you are trying to continue conversations to develop trust, obtain permission to email invitations or collect physical addresses and phone numbers to follow up. For example, you might decide you want to drive traffic to your website. Prospects will provide their email address in exchange for something helpful. It might be a free chapter of your e-book, white paper on building techniques or tips on decorating a home. But remember, if you are communicating via email you must obtain permission to send future information when collecting email addresses. I am not suggesting you give your services away. Not at all. But in the beginning of the relationship, give value in order to make the necessary connection – developing the trust that is necessary for them to buy. You want to demonstrate your sincere desire to serve and help your customer. They need to know what you know. If you are a landscaper you might provide some helpful tips on your first visit to their home. They will see your expertise in action and their trust in you will grow. If you are a specialty contractor you would provide a no-cost quotation and some design ideas. A carpet cleaner might clean a few square feet of carpet to prove the effectiveness of the process. A marketing professional will write articles or provide no charge seminars. In some way, you want to demonstrate competence without asking your customer to pay your full fee. Step three continues the trust building by offering some of your low-priced services. A chiropractor might offer a discount on the initial visit. A website designer will offer an informational product for sale such as an audio or video instruction series. The idea is offer low barrier for entry services so trust and familiarity will grow. As the conversations continue and once you have successfully gained trust and credibility, then your big ticket offer will make sense. It will be well received. If your customer says no to you, one of two things is happening. Either trust or value has not yet been established or they are not qualified to be your customer. (Qualified customers have the money to spend and they are in your target market.) If trust has not been established, persevere and it will be. Don’t give up too soon. Continue the conversations and invitations. Build trust over time. Understand it is a cycle not a one time event. If you don’t like selling, then stop. Instead, start conversing and inviting. That is what customers want. Don’t expect your customer to buy your highest priced offering on the first conversation. Unless you are selling something very inexpensive, your sale is going to take some time. Remember, it takes a while for your future spouse to learn to trust you. She won’t decide to marry you on the first date. Relationships in business are the same. Remarkable BrandingWhich company gave us this, “We’ll deliver a hot, tasty pizza in 30 minutes or it’s free?” Yes, Dominoes! It got your attention did it not? Who doesn’t want hot, tasty pizza or it’s free? In the same way small businesses need to be noticed and remembered in an unforgettable way. After you, the business owner determines your target market and the big benefits you provide customers, now you want to turn your attention to how you will become known in a compelling and powerful way. How will you distinguish yourself from everybody else? How will you position your business head and shoulders above the crowd? Developing an effective brand accomplishes this. Branding illustrates your uniqueness. Branding makes you remarkable. You are already familiar with successful branding. Wal-Mart uses “Low Prices Always.” Fed Ex tells us to use them “When it absolutely, positively has to be there.” Nike’s brand is “Just do it.” These brands powerfully point to the essence of the business. The brand is carefully crafted to connect with the customer’s heartfelt need or desire. Uniqueness is the Basis for Your Brand A service based business should be known for one skill, talent or ability. You may have more than one but you want to be known especially for one. This special skill plus your passion to serve others makes your business unique. This uniqueness is captured in your brand. A good brand is bold and illustrates the fully self-expressed business owner. Your brand should be clear, consistent, authentic, memorable, meaningful and personal. A successful brand defines your business. But first, you must define it. Well defined brands attract the right kind of customers. Your brand allows your customer to “see” you. Your customer connects with your brand because you “get” them and they “get” you. Jerry Seinfeld and Jim Carey are famous comedians with unique styles or “brands.” Jerry takes everyday events and turns them into funny stories. Jim Carey uses his outrageous physical comedy to get laughs. Both are successful but they have very different “brands.” How to Create Your Brand Two components make up a successful brand. The first is who you work with and the services you provide. For example a small business owner might serve home owners in Rockingham County who need home remodeling. So, that is the “who and do what” portion of the brand. A number your competitors will have the same. Secondly, the “why” portion of the brand tells why you do what you do. It explains your passion for serving. It emotionally connects with your target market. It explains why you serve your customers and the uniqueness you bring to your work. The home remodeler I mentioned crafted “Venture into Beauty” as the “why” of his brand. His special ability to design and build is motivated by his desire to create a beautiful home. This passion and uniqueness is what the customer “sees” and identifies with. Those in his target market who are ready will identify with his brand. The “why” portion is what sets him apart and describes the benefits of his business in a compelling way. Remember, your target market is attracted to your business when they see your brand and determine that you can meet their heartfelt needs and desires. Not everyone will be attracted to your brand. Only certain ones. We established that when determining our target market. However, one thing is certain. Without an effective brand, a business is left with competing head to head with everyone else. So, connect with the customers you want to work with, show the unique solutions you offer and, most importantly, why you do it. Don’t try to compete at the same level with everyone else. You are unique. Your business is remarkable. Show your remarkable brand. Why People Buy What You Are SellingIsn’t it great to receive a beautiful invitation in the mail where you are invited to a grand opening of a new business and the guest list is limited to the new owner’s close friends, family and a few business associates – and you? You walk in and are warmly greeted, the food is great, you are treated like someone special and have just a wonderful evening. I’d like to try to convince you that you should invite, just like the grand opening, only those clients carefully chosen by you into your business family. I’m suggesting that ideal clients allow you, the service provider, to be fully expressed – providing you the energy, enthusiasm and a sense that you really are providing a service that makes a difference. As business owners we need not only to make a good profit from our efforts but to cultivate a life as well. I want to provide you with the system that allows you to hire only ideal clients and refer the rest to others. Less than ideal clients are difficult, frustrating and drain you of energy. For each business owner it’s different but basically you walk away wondering why you ever wanted a business in the first place. Therefore, I am going to ask you to get rid of your difficult clients. “What’s that?” you say. “I thought marketing was supposed to gain business not lose it.” Exactly, by identifying your dud clients and letting them go, in the proper way, you will be gaining business in the long run. I know it sounds illogical but hang in there with me. I wouldn’t tell you this unless it was true. First, take an inventory of your current clients and list the ones you most enjoy doing business with. Then list the personal qualities of your contacts. I’m not referring to what “things” they have but what qualities they possess. It might be their willingness to act on a good opportunity or stay optimistic in the face of pressure. It might be they are willing to make alliances or work well with others. It might be their perseverance. After you have finished with the ideal clients list your difficult clients and their characteristics. They may pay slowly, become argumentative, act selfishly, communicate inconsistently, being closed-minded etc. From this information you want to develop a “filter” from which you assess prospects and customers. For example, one consultant I know has the following for a filter: his clients must be resilient, courageous (facing fears), big thinkers, value-oriented, naturally collaborative, rapid responders and positive. You will have a different list but you get the idea. From now on this will be the benchmark for your clients and I urge you to keep as close to this as possible. If you stay within 75% of your filter list you will be doing well. Difficult clients are not necessarily “wrong” but they are not the right fit for you. Provide value for your difficult clients by referring them to others who can serve their needs better. Keep your reputation strong by referring not dropping. So, without your dud clients you will have fewer customers. But you will now have more energy to “hire” ideal ones. Also, you will do your best work which means more sales and profits. In time, you will be far better off. I realize some of us feel the pressure to persuade anyone with a pulse to become a customer. That, however, is short-sighted and will not help you long term. Let’s review. First, know that the service provider should work only with ideal clients where the maximum energy, joy and fulfillment from your business reside. Next, know the personal qualities of your ideal clients and replicate those qualities by using a filter to “hire” the right ones. Finally, no longer accept difficult clients into your clientele and refer your existing ones away. Remember, when the prospective client is interviewing you, you are also interviewing him. Working only with Ideal ClientsIsn’t it great to receive a beautiful invitation in the mail where you are invited to a grand opening of a new business and the guest list is limited to the new owner’s close friends, family and a few business associates – and you? You walk in and are warmly greeted, the food is great, you are treated like someone special and have just a wonderful evening. I’d like to try to convince you that you should invite, just like the grand opening, only those clients carefully chosen by you into your business family. I’m suggesting that ideal clients allow you, the service provider, to be fully expressed – providing you the energy, enthusiasm and a sense that you really are providing a service that makes a difference. As business owners we need not only to make a good profit from our efforts but to cultivate a life as well. I want to provide you with the system that allows you to hire only ideal clients and refer the rest to others. Less than ideal clients are difficult, frustrating and drain you of energy. For each business owner it’s different but basically you walk away wondering why you ever wanted a business in the first place. Therefore, I am going to ask you to get rid of your difficult clients. “What’s that?” you say. “I thought marketing was supposed to gain business not lose it.” Exactly, by identifying your dud clients and letting them go, in the proper way, you will be gaining business in the long run. I know it sounds illogical but hang in there with me. I wouldn’t tell you this unless it was true. First, take an inventory of your current clients and list the ones you most enjoy doing business with. Then list the personal qualities of your contacts. I’m not referring to what “things” they have but what qualities they possess. It might be their willingness to act on a good opportunity or stay optimistic in the face of pressure. It might be they are willing to make alliances or work well with others. It might be their perseverance. After you have finished with the ideal clients list your difficult clients and their characteristics. They may pay slowly, become argumentative, act selfishly, communicate inconsistently, being closed-minded etc. From this information you want to develop a “filter” from which you assess prospects and customers. For example, one consultant I know has the following for a filter: his clients must be resilient, courageous (facing fears), big thinkers, value-oriented, naturally collaborative, rapid responders and positive. You will have a different list but you get the idea. From now on this will be the benchmark for your clients and I urge you to keep as close to this as possible. If you stay within 75% of your filter list you will be doing well. Difficult clients are not necessarily “wrong” but they are not the right fit for you. Provide value for your difficult clients by referring them to others who can serve their needs better. Keep your reputation strong by referring not dropping. So, without your dud clients you will have fewer customers. But you will now have more energy to “hire” ideal ones. Also, you will do your best work which means more sales and profits. In time, you will be far better off. I realize some of us feel the pressure to persuade anyone with a pulse to become a customer. That, however, is short-sighted and will not help you long term. Let’s review. First, know that the service provider should work only with ideal clients where the maximum energy, joy and fulfillment from your business reside. Next, know the personal qualities of your ideal clients and replicate those qualities by using a filter to “hire” the right ones. Finally, no longer accept difficult clients into your clientele and refer your existing ones away. Remember, when the prospective client is interviewing you, you are also interviewing him. The Elusive Secret of Local AdvertisingWhat is the purpose of advertising? Is it to “bring people in” or “keep my business in front of the customer?” Advertising has a very specific target. It is to “gain an equity share in the target market and reach and motivate an adequate number of customers such that a business can gain its desired growth.” The equity position occurs when a customer thinks of you when he needs your product or service. The primary equity position in a market means customers think of you first when they have a need. Advertising should gain equity mind share first and simultaneously motivate inquiries and sales. Most advertising in local markets is based on capturing immediate sales through price considerations. Gaining equity position is a distant second if considered at all. I’m not saying you should never advertise a sale. What I am saying is that advertising sales and selling price is not going to help you if your competitor is consistently offering his unique advantages and benefits. The real secret in advertising is knowing and utilizing your business’s strengths as they compare to the competition. This is called the Unique Selling Proposition or Pre-emptive Advantage. The USP (Unique Selling Proposition) is a benefit or advantage that is yours and yours alone. It’s something your business can become known for. It might be the speed the product is delivered. It might be your incredibly flexible return policy. It could be always providing more value than you promised. To maximize business results a business must be continuously advertising its USP. It is also true that the perception of a unique advantage is also just as effective. Most of us have heard Andre Viette on the radio or TV. He is an author, speaker and has been taking customers on cruises to beautiful garden spots. I recently heard him speak at his Daylilly Festival. Basically, Andre came to Virginia as a grower of flowers. But he has done so much more. He is also an expert at marketing and advertising. Since he knows the consumer needs and wants to know about flowers and gardens he has been willing to teach us, and do it with insight and humor. I think his USP might have something to do with “giving more value than the customer expected.” He is a very good example of a business that understands and uses the secret of advertising. When planning your advertising make your first priority the capture of your customer’s mind as it relates to your type services. You want him to think of you first and always. Secondly, use your unique advantage to position your business. You do offer something unique. Now, go ahead and tell your story. Knowing Your Target MarketA specialty contractor worked with homeowners of all kinds, but did not target anyone in particular. His typical job was price sensitive even though he did the best work in town. Most of his jobs earned only a small profit. The contractor couldn’t make enough to hire a manger, take a vacation or basically have a life. After studying his situation we decided that he should be marketing to high-end homeowners because of his meticulous work. These homeowners had the money to pay for his services. Not only did we target a new market, we emphasized his superiour wormakship. Then we did a targeted mailing to 1000 homeowners. The result was booking that totaled 10 times the cost of the mailing – so far! The customer typically did not haggle about the price. The contractor is thrilled with the marketing effort. How do we know our target market? If you are already in business, who are the customers that give you the most dollar volume of business? What is their demographic? What type of customer is most profitable and easiest to do business with? What kind of client are you most equipped to serve? Who do you have the most in common with? Who fits your style of doing business? Ask these questions and evaluate the answers. In many firms, 80% of their business comes from 20% of the customers. We want to replicate those 20% over and over. If they are ideal customers focus on them. There is little reason to work with “dud” customers if “ideal” customers are available. Sales Doing Well? Re-energize Your MarketingRecently I had the opportunity to work with a client who had been in business four years and experienced rapid growth. He leased new equipment to meet the demands of increased business. He hired more employees. Sales were above expectations. The owner started out working hard to make prospects aware of his offer. He traveled to make personal sales calls. He telephoned hundreds of prospects. He was an effective marketer and salesperson. As the orders increased he felt the pull to be in the office more to run the operation. He was the customer service rep, plant superintendent and buyer all in one. In the fourth year orders took a slow but steady downturn. Some of his steady customers went elsewhere. When I met him he was almost in a full panic. As I analyzed the situation, it became clear that one important aspect of the business had changed. The owner was no longer initiating an aggressive sales and marketing campaign. He was not making customer retention calls. He was not seeing customers one-to-one. He had a web site but it was not effective. There was no direct mail, e-newsletters etc. The only contact with the customer was when they placed an order. As our businesses grow deterioration of the marketing effort is a subtle but powerful temptation. We can not allow our marketing efforts to stop even if sales are good. Sales may not be good next year. Marketing needs to be a mindset. It is a battle to gain a share of the prospect’s mind. Marketing has three foundational principles. It needs to be consistent, on-going and resonant. Marketing must contain multiple layers of contacts with customers over time. We must be in the forefront of the customer’s mind. Business owners work in their businesses every day. They don’t ever forget the benefits of their product or service. However, our customers do not see us every day. They receive thousands of messages of different kinds every week that demand their attention. They hear from our competition. We don’t realize customers forget about us. We must not allow them to forget. Marketing is our sales revenue insurance policy. We can never allow our marketing to stop. Business owners need to work not only “in” the business but “on” it. I understand marketing budgets may be small. The effort needs to fit within your financial constraints. There are 45 ways to market a small business. Choose the three or four tactics that fit your situation. I would rather see you with a 1” ad in a small newspaper or an e-newsletter to 100 customers each month than nothing at all. Make it regular and ongoing. Don’t give up. The goal is developing equity mind share. We want to keep our central slogan in the public eye consistently and continuously. We need to keep the outbound marketing effort going – always. Take a moment to evaluate your marketing effort. List the ways you are currently marketing your business. How long have you been using each tactic? Is the effort consistent? Which tactics have you stopped using? Were you too busy or were they ineffective? Do you need to reinstate some of your old marketing strategies? Today, make a commitment to regular and ongoing marketing that fits your budget. Taken from the new publication “Making Business Come to You”1. Alliances - I have found that making alliances with others in business and utilizing the strengths of other successful business people greatly increase positive results. Isolation is the silent deadly business killer. One way to join together for mutual gain is to form power groups or classification groups. These are small groups of business people band together to either pass referrals or help each other in business. One group might be in the same general classification such as marketing, finance or retail. Both work. There are several large referral businesses in the marketplace that have groups of 20 – 30 that break up into smaller groups. 2. Outside help - Consultants and coaches temporarily provide a highly prized business asset that the small business needs but can not afford to hire an employee. 3. Vision - A vision states the future position or influence of the business in respect to its place in the market. No matter what business you own, a service business, retail store, a manufacturer or construction company, management needs to transmit a clear vision to employees and customers as to the future position of the business. 4. Consistent and continuous marketing - As small business owners, we can not allow our marketing efforts to stop even if sales are good. Sales may not be good next year. The goal is developing equity mind share. We want to keep our central slogan in the public eye consistently and continuously. We need to keep the outbound marketing effort going – always. |