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BUSINESS INTELLIGENCE REPORT Strategies and Trends for the Successful Business
ideawatch Tips for Growing Your Business Customers will still pay more for exceptional service, despite tough economic times. More than 70% of consumers surveyed by Strativity Group indicated that they are willing to spend 10% or more with businesses if those businesses exceed their expectations. One-third of respondents were willing to pay 25% or more. The top drivers contributing to customer experience were centered on employee interaction. Resolving problems effectively, ease and simplicity, exhibiting common sense and instances where employees exceeded expectations topped the list. Source: www.salesandmarketing.com
Engage your employees by letting them volunteer on company time. Studies have shown that employees are looking for ways to give back to their communities. Consider establishing a community service partnership with an organization or set of organizations that could benefit from your employee’s talent or time. Look for opportunities that allow employees to gain new skills or perspectives. Source: Harvard Business Review, 60 Harvard Way, Boston, MA 02163
When someone subscribes to your e-newsletter, consider sending a series of welcome messages. Welcome messages have the highest open rates of all e-mail campaigns, according to Listrak — and using a series instead of a single message creates opportunities to nurture the relationship, including turning one-time buyers into long-term customers and brand advocates. Personalize the messages and assign specific tasks to each one. Examples include new subscriber discounts, a website tour, surveys to determine preferences, along with additional means of interaction such as social networks. Source: www.marketingvox.com
October 2010
Marketing
10 Things You Can Do to Keep a Customer by Ivana Taylor for golden nuggets that may not have Where are you spending more time: anything to do with what you provide, getting new customers or growing and but how you provide it. That’s where real expanding your relationship with the customers you already have? If you’re like value lies. most companies, you’re probably spending more If you want to keep the customers you already have, time and money looking for and wooing new here are some easy, low-cost strategies to consider. customers than finding 3. Review all of your marketing new opportunities within the customers materials and remove all elements of you already have. “corporate-speak.” You can spot fake, When the economy gets tough, everyempty and inauthentic language from a one tends to go into survival mode mile away — so can your customer. And and think that they don’t have enough customers or that they need new custom- they don’t like it. Customers are drawn ers to replace the business that they lost. to real people who use plain and simple language. Microsoft Word has a “readabilBut the truth is that focusing on the cusity statistics” feature that can help with tomers you already have is your highest this issue. value strategy when times are tough. 4. Get employees involved in buildIf you’re afraid of losing a customer or just want to keep the customers you have ing your brand and communicating loyal, here are some easy, low-cost strate- with customers. Some companies shy away from having employees on Facebook gies to consider: while they are working. But creating a 1. Calculate your customer net worth. The best way to inspire increased social media presence and then actually encouraging employees to connect with sales to existing customers is to see how customers and communicate with them much these customers have already contributed to your bottom line. The formula via Blog, Twitter, Facebook and LinkedIn is actually simple: Take the total profit of is a terrific way to put a personal face and connection to your company. Before you your ideal customer over the lifetime of jump into this strategy, be sure to create your relationship. Subtract all the costs a social media policy and clearly outline associated with acquiring that customer. what’s acceptable and not acceptable. That’s all there is to it. If you’d like more 5. Create a “Key Account Plan” detail, try the Customer Lifetime Value for a Critical Customer. The most Calculator at http://hbsp.harvard.edu/ profitable customers are the ones who multimedia/flashtools/cltv/index.html to purchase across your product and service see how much each of your ideal customoffering. Yet, many of us have customers is worth. ers who purchase one or two products or 2. Identify what’s most important services — when they might actually have to your customers. Focus on specific a need for (but not know about) the other benefits that your customers are looking products we have available. A key account for, such as 24/7 access to technical supplan puts your focus on your customer port instead of just service. The best way and all the different ways that you can to find out is to literally get on the phone serve them — not just with products, but or schedule a meeting with a handful with other value-added services. Think of of your best customers and simply ask it as a marketing plan for that one target them, “What’s important to you when customer. you’re buying what we’re selling?” Then be quiet and let them just talk. Listen continued on page 2
ideawatch Tips for Growing Your Business When selling, responding to an inquiry with your solution too early can turn an easy sell into a painful loss. Let’s say a prospect calls and says “Our issue is that we need to ____.” If you respond with something like, “Well, let me tell you how we can fix that,” you may have just lost the sale. Your response makes it sound like you’re jumping into a pitch, as opposed to finding out why the prospect said what she said. That’s how you uncover the real reasons she wants to buy. A good way to uncover the real motivation is to ask questions like, “Tell me more about that,” “What do you think is causing that?” and “What is that costing you?” Do not jump in with your recommendation until you fully understand the issue. By then she’ll be so focused on the real problem that she’ll be more receptive to your solution. Source: www.businessbyphone.com
Trying to get links to your website? Consider writing testimonials for the business vendors you work with. Vendors will often post a favorable and sincere testimonial on their website along with a link back to your site. Source: www.websitemagazine.com
Now is not the time to make a poor hiring decision. Résumés are routinely doctored and many candidates have better interview skills than their interviewers. Your best bet is to closely check references. Before talking to any reference source, inform the candidate of your intentions and, if possible, have him sign a form that allows you to verify information and absolves you of legal action. The most informative references will come from people who have been professionally involved with the candidate’s day-today work. Build rapport and try to get them to converse with you. The very best approach is a face-to-face meeting to gauge body language. Start by asking them to verify facts and then move on to more subjective questions, such as why they left the company, strengths and weaknesses, self-motivation, etc. Don’t be afraid to ask pointed questions regarding your areas of concern. Source: www.therecruiterslounge.com
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NEWSwatch
News and Developments Affecting Today’s Business
Small Business Jobs Act passes The Small Business Jobs Act (SBJA) recently passed and is aiming to create 500,000 jobs while making more credit available to small businesses. The SBJA authorizes the creation of a $30 billion fund that would deliver ultra-cheap capital to community banks. Other provisions include providing $1.5 billion in grants to state lending programs that in turn support loans to small businesses, an increase for loan limits on government-backed loans, and an extension of the already successful loan sweeteners for Small Business Administration loans through the end of the year. There are quite a few tax breaks, including the elimination of capital
gains taxes on investments in qualifying small businesses, an extension to five years for the carry-back provision and an increase of Section 179 for writing off capital expenditures immediately (from $250,000 to $500,000), plus an additional bonus depreciation extension. There is also help for startups. Currently, entrepreneurs can deduct up to $5,000 in startup expenses. That amount is reduced by the amount that the startup’s expenses exceed $50,000. The bill would increase the deduction to $10,000 for 2010, and the deduction would be reduced by the amount that an entrepreneur exceeds $60,000. Source: CNNMoney.com, September 23, 2010
Keep a Customer...
continued from page 1 6. Offer an insane guarantee. that have chat screens, polls and the abilBefore your customer starts threatening ity to create recorded sessions. to go to a competitor, create and offer 9. Monthly “surprise gift.” We’ve all an insane guarantee. Business owners heard of a book-of-the-month club, how are often afraid of offering guarantees about a surprise-of-the-month “gift” for because they think that they will lose key customers. I’m not necessarily talking money. But if you’ve done the customer about the kinds of gifts that can get you net worth calculation (tip #1), you will in trouble. Instead, consider something see that offering a risk-free guarantee like “This month’s order of widget x was costs nothing compared to what that on us! Enjoy!” Again, if you look at your customer has already contributed to your key customer’s net worth to your busibottom line. ness, isn’t it better to spend your money 7. Give them the star treatment. on keeping them loyal than throwing your Identify your key customers and create money away on hopes of gaining a new a “concierge” team to service their every customer? Reciprocity (along with quality need. Have a member from key areas, and service) is a powerful loyalty tool. such as sales, marketing, service, produc10. Love them! When you love a hobby tion or technology, serve as the customer or another person you take an interest in concierge team. Give them a broad what’s happening around them. Do the latitude and freedom to get things done. same with your customers. If you know If this proves successful for you, think that your customer contact is a fan of about making this an added service pink flamingos and you see a postcard or that other customers can subscribe to. I figurine in a gift shop — pick it up and know one company that added $2 million send it to them. It says that you know straight to their bottom line by using who they are and you listen and care. this strategy. Do at least one nice, selfless thing for a 8. Create an advisory board. customer because you love them. Instead of wondering what new products This is a short list of 10 ways to keep or services would most interest your customers. But you’re somebody’s cuscustomer — get them involved in the tomer, too. Why not take this opportunity development process by inviting them to share what you’d want to see from the to participate on an advisory board. companies you do business with that The investment in time and money in would keep you loyal and get you singing creating this engaged customer comtheir praises. munity will pay off in spades. Create Ivana Taylor is CEO of Third Force, a strategic events where you educate your customer firm that helps small businesses get and keep advisory board on industry trends and their ideal customer. She’s the co-author of the then ask them the questions that keep book Excel for Marketing Managers and propriyou wondering if there’s actually demand etor of DIYMarketers.com, a site for in-house for your idea. You can even keep these marketers. Her blog is Strategy Stew. This article virtual with tools such as GoToMeeting originally appeared at OpenForum.com.
Business Intelligence Report
ideawatch Tips for Growing Your Business Tired of tire kickers who aren’t serious about buying from you? Then you need to get comfortable with asking “What’s your budget?” If you don’t, you’re quite likely to waste time and energy gathering information about potential clients’ needs and writing up proposals. To get a prospect to share his budget expectations, try throwing out low, medium and high numbers: “Are you thinking $1,000, $5,000 or $20,000?” Then you can say what you can do for each of those figures. If he was thinking $500, you can graciously bow out of the dance. You can also ask what he spent on previous projects like this one. Source: www.yudkin.com
What do your holiday gifts say about you? These gifts do double duty, serving as a thank you for a client’s business and a gentle reminder to keep it coming. Therefore, make it memorable, make it stand apart and if possible, make it personal, too. Have it reflect your company’s brand, personality and values. People buy from companies whose values reflect their own. Give it staying power. A gift that hangs around where your clients make business decisions is extra sweet. Source: boss.blogs.nytimes.com
When is the best time to post to Facebook? According to research conducted by Vitrue, a social media management company, Friday posts generated more engagement than any other day of the week, followed by Tuesday and Wednesday, while Saturday and Sunday showed the lowest engagement rates. As for time of day, posts in the morning get a whopping 65% more engagement than those sent after midday. What should you post? Overall, image posts generated the most engagement (measured by fan responses, “likes” and shares) — 22% more than video posts and 54% more engagement than text posts. Source: www.bizreport.com
BUSINESS INTELLIGENCE REPORT
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TRENDwatch
Forecasting the Changing Business Environment
Crowd funding: Taking money from strangers Thirty-two people gave $1,559 toward equity for a loan to help Janet Geddis open Avid Bookshop, a coffeehouse and bookstore in Athens, Ga. In return, her supporters received locally roasted coffee beans and autographed books. Welcome to the world of crowd funding — where new websites let entrepreneurs combine social networking with project fundraising. Financial assistance received through crowd funding isn’t paid back. Nor does it require pledging collateral, offering personal guarantees or giving up equity. The funds are outright donations from friends and strangers who believe in the dream and want to help. A website called IndieGoGo.com made Geddis’ project possible, in addition to over 5,000 other projects in 120 countries. The more recently launched Invested.in
— whose web banner reads “Because banking executives just don’t get it” — is another standout in entrepreneurial crowd funding. Here’s how IndieGoGo works: Once you’ve created an account, the website walks you through setting up a project description, fundraising goals and perks you’ll offer. Perks entice people to contribute at various levels. The average project goal posted on the site is about $7,500, but they range from $500 to $50,000. IndieGoGo earns its perks in the more traditional manner — taking 9 percent of whatever you raise. Not all projects are funded, but the process offers valuable lessons regardless, helping entrepreneurs gauge interest in their product or service. Source: Entrepreneur.com, August 23, 2010
The new ‘Source Local’ movement for small biz The success of the “Buy Local” movements aimed at consumers nationwide is catching on with independent businesses themselves. Practicing what they preach, local businesses are using as many local resources as possible — from materials to suppliers to craftspeople to furnishings. Not only are they bettering their community, many find it’s a great money saver and an even better marketing tool. Call it “Source Local” or “Source Local First,” it is a new twist on the homespun consumer trend that has been picking up speed over the past four years and is
closer than ever to critical mass. Today, if a consumer spends $100 at a local business, $45 stays in the community. The same amount spent at a national chain keeps only $14 in your own backyard, according to the nonprofit Institute for Local Self-Reliance. Campaigns to keep your money where your home is are growing at a rate of about 25% a year, championed by independent business alliances. Already, those campaigns are under way in 70 cities, according to ILSR. Source: AllBusiness.com, September 22, 2010
Boom in multi-generational households Today 49 million Americans — more than one in six people in the U.S. — live in households with three or more generations, according to the Pew Research Center. More young adults are moving back home, more elderly are moving in with middle-aged children and more middle-aged children are moving with their elderly parents. While the number of multi-gen households has been growing since 1980, the pace is quickening. Between 2000 and 2009, the number of those households advanced 33%. As such, the trend could have big implications for many indus-
tries from housing to autos, insurance to package goods, necessitating a rethinking of everything from product sizes to how to reach these households and what members within them to market to. While high unemployment and housing foreclosures of the recession have played a key role in the trend, Paul Taylor, coauthor of Pew’s multigenerational household study, said it has been growing over several decades, fueled by demographic and cultural shifts, such as the rising number of immigrants and the rising average age of young-adult marriages. Source: Advertising Age, August 23, 2010
Business Intelligence Report (ISSN 1091-9597) is published 12 times a year by DBH Communications, Inc. The intent of this publication is to provide business professionals with informative and interesting articles and news. These articles, and any opinions expressed in them, are for general information only and are not intended to provide specific advice or recommendations for any individual or business. Appropriate legal, accounting, financial or medical advice or other expert assistance should always be sought from a competent professional. Copyright, 2010, DBH Communications, Inc. All rights reserved in all countries. Reproduction or use, without written permission, of editorial or graphic content in any manner is prohibited.
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