3 Belt-Tightening Mistakes to Avoid

By Catherine Clifford

 
With the economic recovery sputtering along, it's easy to fall into the mindset that cheaper is always better. But even when budgets are tight, there's a right and a wrong way to save money.
Trim spending in the wrong places and you can end up hurting your business in the long run, says business strategist Carol Roth, a former investment banker and the best-selling author of The Entrepreneur Equation. Here are three of most common cost-cutter mistakes:

1. Cut back on customer service. When small business owners start to get panicky about their spending, one of the first things to go is often the perks and services that you lavish on your customers. That's the last place to trim, says Roth. For example, if you own a restaurant, it may be tempting to decrease the number of servers, therefore asking the remaining servers to handle additional tables. Don't do it.


"If you are cutting back in areas where your customer is going to notice, that is a mistake," says Roth. "Your best opportunity is to maintain or beef up in the areas that are going to impact the customer."

2. Chop the marketing budget. Another common knee-jerk reaction of an anxious entrepreneur is to slash the funding designated for marketing. That won't affect your core business, right? Wrong. Eventually the economy will recover more robustly and customers will be willing to spend more freely. If you cut back on your marketing spending now, you are cutting yourself off from the new customers that will grow your business, says Roth.

Also, down periods in the economy are ripe for expanding because the rival business down the street has probably had the same impulsive reaction and reined in its marketing budget. "You don't want to pull back in an area like that, especially when your competitors are doing that, because that gives you an opportunity to poach" customers, says Roth.

3. Scrap employee perks. One way to push the bottom line higher is to cut out the Friday snack that has become a tradition in your office. Don't. It's the little things that make your employees feel valued and appreciated and keep workplace morale up. And that goes a long way toward helping your business.

"That loyalty will resonate from the inside out," says Roth. And happy employees keep your customers happy. "It is all about the customer because if you don't have customers, you don't have a business."

3 Surprising Ways to Find New Clients

By Erika Napoletano

People tell me the weirdest stories. Some are tales of drunken escapades, brushes with law enforcement or photos inadvertently distributed on the internet. Others are more surprising: They star astonishingly sober folks hellbent on playing by their own business rules. One of my favorite themes of the second group: People who employ unconventional methods for connecting with new customers. Get ready to put their oddball antics to work for your business.

Make house calls.
Andy Dunn, founder and CEO of New York City-based Bonobos, wanted to sell a better brand of britches directly to men online, without stocking the product in stores. To build a customer base, he loaded up his car with samples and hosted private events in homes around New York. Gents could try the pants on and experience Bonobos' better fit and better service model, then have the product shipped directly to their homes. His customers became his evangelists, and Dunn's schedule filled up with in-home events. Bonobos reached its first $1 million in revenue without spending a dollar on customer acquisition (aside from the cost of gas). Today Bonobos boasts sales in the multimillions -- and it all started by going directly to the customer.

Offer unlimited service.
Domain registrar Name.com is known for its exceptional customer service -- and that's not business as usual in the domain-name game. But how many businesses do you know that actively provide service to non-customers? In early 2011 that's exactly what Name.com did. Via Twitter, the team caught wind of a software developer whose domain name had been hijacked. (This can occur when your domain registrar mistakenly allows your name to be transferred without the proper authorization.) Name.com reached out to the non-customer and subsequently tracked down the hijacker -- all the way to Ukraine. The company's outstanding efforts (and the good PR they generated) earned it a slew of domain transfers from other consumers.

Differentiate your direct mail.
Business consultant Ashley Ambirge is nothing if not unconventional. The mind behind The Middle Finger Project, which pushes people to "get your ass off the warm-up bench," Ambirge encourages clients to take unconventional and sometimes rocky paths to achieve hell, yeah status in their businesses. A copywriter by trade, Ambirge decided to create a very targeted direct-mail campaign aimed at companies she wanted as clients -- but she skipped out on traditional collateral materials. Instead, she went to a roofing supply company. Yes, a roofing supply company. She sent 30 companies (new home builders) a single roofing shingle inscribed with the words "My Company + Your Company = sales through the roof." The result? A 100 percent response rate, with nearly every one of the responders becoming a client over the following year.

The key to unconventional customer acquisition is to remember to keep it about the customers. Think about their needs. Go where they are. Make them laugh. Help them. And, once you have them, provide exceptional service so they stick around and help you bag new customers.
Don't worry if your competitors think you're all about using shenanigans to bring folks to your door. We know that it's all about your dedication to your current and future customers' needs.

Networking Tip #108

Fact: Networking gets harder when we feel more desperate - Others can sense when your sole purpose is to make a sale or find a job. If you change your objective to taking a single step closer to your goal, the stakes won't seem as high and you will feel more relaxed, less desperate (From Gwinnett Network, October 31, 2012)

9 Routine Task You Should Eliminate from your Workday

By Jane Porter  

Rachel Weeks couldn't get through the workday without constant interruptions. Employees at her Durham, N.C., apparel company, School House, would ask her to sign checks, approve designs and field questions whenever they wanted. Realizing that routine tasks were taking over her day, she started signing checks once a week, sending out packages at a set time each day, and addressing staff questions at weekly meetings.

Those changes have helped Weeks grow the business by developing a new e-commerce site and partnering with a big-box retailer. So far this year, revenue has risen 20 percent, compared with the same period in 2011. "In a small company, there's this tendency to think … if anybody needs something, they can come and find me," she says. "You really have to carve out those hours of uninterrupted work time."

But that means something's got to give. Here are nine daily tasks you probably can eliminate from your workday to help you stay focused and be more productive.

1. Stop overloading your to-do list. You might feel the need to write down everything you need to accomplish each day, but resist making an impossible list of daily tasks, says Peter Turla, a time-management consultant in Dallas. Compiling a lengthy list of things you need to accomplish might seem productive, but you could be doing more harm than good. "It results in too many items at the end of the day that are not completed," says Turla. "That will make you feel stressed out, inadequate and unfocused." Instead, create a manageable list of essential tasks that should be finished on a given day--and save the rest for later.

2. Stop having open-ended meetings. Figure out your priorities before you call a meeting and make them clear to all the attendees, says Doug Sundheim, a New York consultant and executive coach. Too many small-business owners waste half the meeting just getting to what they really want to talk about. Sundheim suggests putting three priority topics at the top of your agenda to avoid getting sidetracked by other issues.

3. Stop answering repetitive questions. If you find yourself answering the same question from clients or employees frequently, you're wasting time, says Peggy Duncan, a personal productivity trainer in Atlanta. Instead, put together an FAQ on your website or create instructional videos that people can access via links at the bottom of your emails. "Figure out better ways to answer [questions] without your having to be involved," she says.

4. Stop taking the same follow-up approach if people ignore you. If you've sent someone an email and the recipient hasn't responded, don't keep firing off more emails. Try communicating in another way--calling, sending a text or visiting in person if it's appropriate, says Jan Yager, author of Work Less, Do More (Sterling, 2008). Too many business owners get bogged down communicating with people inefficiently, she says.

5. Stop eating lunch at your desk. Tempting as it might be to scarf down a sandwich between emails at your computer, don't make it a daily routine. A short break will help you make clearer decisions, Sundheim says. "You get your best ideas when you get up and walk away from your desk."

6. Stop making regular visits to the post office. Instead of going to the post office, schedule mail pickups from your business or home office, Duncan says. You also can buy envelopes with pre-paid postage or invest in an inexpensive scale and postage printer.

7. Stop making piles. Eliminating clutter can boost efficiency, Duncan says. Rather than organize papers in piles whose logic is known only to you, stick to a systematic filing system and eliminate any pieces of paper you no longer need.

8. Stop scheduling appointments by phone or email. You can waste a lot of time just trying to find a time that works for a meeting. Instead, use an automated system that does the work for you, Duncan says. She suggests using software, such as Schedulicity or Appointment Quest to let people schedule appointments with you online.

9. Stop signing every check. Designate a specific day and time for certain tasks, such as signing checks, rather than allow them to randomly interrupt your workflow. Better yet, you can have your signature printed on checks to avoid signing each one. Programs like QuickBooks let you use preprinted checks and keep track of transactions, Duncan says.

 http://www.entrepreneur.com/article/224063

Referral Marketing - Understanding the Value of Referral Business

By Laura Lake

When thinking about the importance of referral marketing I'm always reminded of an incident that happened at a fitness center. I made a decision to refocus on my fitness regimen by joining a gym. I was referred to a gym by a friend of mine, so a few of my friends and I called the fitness center to schedule an orientation appointment. After touring the facility we decided to join the gym and agreed to sign up for a membership. The person that had referred us was with us, so obviously being in the sales and marketing business I asked the representative what our friend would get for referring us to them. His response, "I can give her a water bottle."

This response floored me, I could not believe that this fitness center had no referral program. A water bottle? I can go to a discount store and purchase one for under $5.00 yet this person brought them new business and that was how they would show their appreciation? 

Think about this, the fitness center didn't have to pay for an advertisement, they hadn't sent us a mailing, so their outgoing costs for this new business was zero. In response to the referral given to them by a current customer, they had over $300 laying on the desk and two people signing membership agreements. 

Do you think their referral offer was adequate? 

I think sometimes we become so focused on our advertisements and our marketing plans that we ignore the basics. A referral program should be in place for every business, regardless of the size of the business.
Referrals are the most powerful form of marketing that you can use and it's also the least expensive. Your referrals have more of an impact than any other marketing strategy or advertisement. Have you looked at your referral program lately? Perhaps it's time to evaluate and calculate the value of your referrals and develop a program that rewards current clients and customers for sending you new business. 

A referral program should take the following three things into consideration:

• Make it worth your customers time.
• Be creative, be generous, and be reliable.
• Make sure what you offer has value to your customers.

If a customer thinks enough of you to refer someone, show your appreciation promptly and generously - don't offer them a water bottle.

http://marketing.about.com/od/viralmarketing/a/valuereferals.htm

3 Ways to Use Facebook Groups to Attract and Keep Customers

By Amy Porterfield       

Many business owners think about Facebook in a one-dimensional way: Create a page of your own where you can promote your brand and products or services. But there's potentially a lot more to it than that. One underutilized strategy is creating Facebook groups, which provide an easy way to segment customers. With groups, you can create communities around particular products, improve customer service, provide a networking forum for customers and even drive new sales.

You segment your email list, right? So why not segment your Facebook community, too? To create a group, login to your Facebook account, go to the Home page and in the left column you will see an option to "Create a Group."
So far, few business owners are using Facebook groups for customer retention and acquisition. Get a jump on the competition by trying out these three Facebook group strategies:


1. Use closed groups as a customer support hub.
A closed Facebook group can be used to deliver support to a specific customer segment, cutting down on customer email clutter and providing a central place to get feedback on what is and isn't working for your business. For example, I have closed groups for all my online training programs to offer support to my clients and give them a chance to network with each other.

The goal is to generate an open dialogue between you and your customers by providing a special spot for them to ask questions. Although Facebook users can see who is in the group, they can’t see members’ posts without joining the group. That way, group members don’t worry that their questions will end up in a friend’s newsfeed.

Use the group to share documents, such as FAQs, and appoint one of your community managers to jump in and answer customer questions. This can also be an ideal forum for announcing product updates, sharing discounts and inviting customers to events and contests. Group members who have already made a purchase are usually more likely to engage with your brand again, especially if they’re happy with the customer service.

2. Use 'secret' members-only groups as networking hubs for current customers.
If your goal on Facebook is to create a tribe-like community, then a secret, members-only group can be worth investigating. Unlike closed groups, only members can see who is in the group.

Secret groups allow you to create a personalized, private feedback loop, which can be a priceless engagement and retention tool. They’re ideal for providing extra value to your VIP-level clients and customers.

A private group may be especially appropriate for businesses whose products and services have a more exclusive audience, such as coaching organizations and training and consulting providers. The closed group atmosphere can create a sense of exclusivity and your clients will get direct access to you and your team.

I use secret groups both for retention and customer acquisition. A private group provides a forum where my consulting clients can network and share strategies with other marketing professionals. Clients love having a place to candidly ask me and experts in the group for feedback.

It’s been such a popular feature that I now use secret groups with all of my products. As a result, I’ve seen a 30 percent increase in returning customers after I introduce a new program. Also, my return rate has dropped because customers know I am there to support them when they have issues.

3. Use open groups to build awareness, authority and interest in your brand.
There already are plenty of open groups on Facebook. The narrower the niche or hyper-local the group, the more likely it is to be lively and engaged -- such as these local “free-cycling” and photographer groups.

Start or join an open group focused on your business niche. Use it not to sell your products directly, but rather to establish yourself as an expert and to network with others in your industry. For example, if you edit photographs for a living, a photography group is a way to share your expertise and provide relevant content in a more personal and community-focused way than with a brand page.

For all types of Facebook groups, use the “About” tab to outline the purpose and goals. Create and post membership guidelines to the "Documents" tab, especially for closed and secret groups, because you may want to allow members to invite friends when appropriate.

And focus more on participation than messaging. Groups are about dialogue, not direct sales. Encourage customers to interact and post often.

  http://www.entrepreneur.com/article/224154?cam=Dev&ctp=PopRightMod&cdt=10&cdn=224154

Providing Great Customer Service

How to Become a Customer Service “Hero”

By Wendy Connick

If you want to retain your customers – and encourage them to refer more customers to you – you'll need to give them a reason to do so. And excellent customer service is a pretty good reason.

Keep in mind that having a good product is a prerequisite to good customer service. If your product offering is useless, no one will buy it no matter how well you treat them. On the other hand, excellent customer service can strengthen an adequate product and make it great. Providing top-tier customer service is also one of the best ways to differentiate yourself from your competitors, which can definitely give your product offerings a little extra kick.

Communicate With Your Customers

How do you know what your customers want? Well, the easiest way to find out is to ask them! It's amazing how often businesses will change a product or launch a new service only to find out that their customers hate the new offering. Check with your customers periodically to find out how they feel about your product, and ask if they have any suggestions to make it even better.

Talking to the customers regularly will also identify any problems before they become critical. If a customer is not particularly happy with your company for some reason, you'll have a chance to make it right before they simply take up with one of your competitors.

Resolve Problems Gracefully

When you do find out about a problem, here's the process you can follow to resolve it:

1. Apologize to the customer. It doesn't matter if it was your fault or not, apologize anyway. A simple “I'm sorry for the inconvenience” helps to smooth down any ruffled feathers.
2. Fix it or explain why you can't. Don't just let the customer languish in Service Limbo. You need to either resolve the problem in a timely manner or get back to the customer ASAP and explain why you can't change the situation.
3. Follow up to confirm resolution. Contact the customer a few days or weeks later and make sure the problem really is resolved. This is also a great chance to touch base and make sure there aren't any other issues lurking.

Customer complaints are a golden opportunity. Don't dread them! Fixing a problem in a helpful and pleasant way actually endears a customer to you more than if no problem had occurred. After all, your customers don't really think about your product... until it stops working or something else goes wrong. When it does, the product and the company come to the front of the customer's mind. If they leave the encounter feeling good about your company, that's an improvement over the merely neutral feeling they probably had about you before things went wrong.

Reward Your Customers

Businesses often launch promotions to snare new customers, but they rarely think to reward their existing customers. So occasionally giving your customers something of value will make you stand out in a good way. It could be something as simple as a holiday greeting card with a coupon for their next purchase from you, or as elaborate as a “Customer Appreciation Day” where you hold a party for your customers and provide games and prizes. Again, it's a good idea to sound out your customers and find out what kind of reward they'd prefer.

http://sales.about.com/od/customerservice/a/Providing-Great-Customer-Service.htm

3 Ways to Get More Love from Your Referral Partners

by Laura Lee Sparks

If your referrals from local professionals are running dry, it might be time implement new strategies to nurture those professional relationships and keep business flowing again. Rather than just asking for their recommendation, here are three creative ways to add value to your referral partner’s business and make it irresistible to work with you:

1. Ask to promote their services, no strings attached- Let your referrals sources know that you have a blog or newsletter reaching thousands of families in the local area and that you’d love to tell your clients more about them. Offer to post a guest blog on their behalf or feature their upcoming events in your email newsletter. Besides creating good will with your referral partners, they’ll be more receptive to promote your events and services when approached in the future.
2. Make Promoting YOU Beneficial For THEM- One strategy we use for our private clients is to craft a beautiful letter and custom certificates that the referral source can send to THEIR clients saying “…because you are so important to us, I wanted to personally send you a valuable gift to say thank you for your business.” The gift, of course, is a free session with the attorney, which we note has a value of $500. The referral partner’s clients feel great about receiving such a valuable gift (increasing business for THEM), while you benefit from all the new appointments!
3. Share Without Selling- Don’t overlook the importance of sending along helpful articles or resources to your referral partners from time to time. It’s a great way to keep the relationship going without a huge time investment. We always like to include a note along the lines of, “Hey–I thought this information would be helpful to you and wanted to pass it along…hope you are doing well” at the top of the email for that extra personal touch. It’s almost always appreciated and keeps you at the top of your referral partner’s mind.

Customer Service Options

Karma

There is a spiritual aspect to our lives – when we give we receive – when a business does something good for somebody, that somebody feels good about them!
Ben Cohen, Ben & Jerry’s

Fate

Tech Support

Expectations

People expect good service but few are willing to give it.
Robert Gateley

Expectations

"Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong."
Donald Porter, V.P. British Airways

Customer Expectations

Set Up Your Referral Partners for Success - The Don't's

by Sam Blyveis

• Never try to sell your partners products/services. Get the appointment, get them on the phone to make an appointment, or put them in direct contact so that they can do their job. REMEMBER, you are not an expert in that field, or you wouldn’t need to refer it out. 100% of the referrals you try to sell will fail! Sell the partner, not their stuff!

• Never put the partner in a spot! I recently had one of these experiences and it ended up a complete failure and wasted a lot of time for all 3 parties! Never ask your partner a question in front of the referral that you don’t already know the answer to! Making your partner look unknowledgeable or unprepared never works!

Set Your Referral Partner Up for Success - The Do's

by Sam Blyveis

These may seem common sense, but should still be noted, as complacency will spoil a good referral every time!

• Give good leads. Note the decision makers or the contacts they’ll need to contact.

• -Give your partner details on the company or individual they are to deal with. Let them know if this person has a dry sense of humor, has a soft spot for something special, is rude, etc… Preparing them is a courtesy and will likely raise their chance of winning the business. REMEMBER, 1 REEFERRAL THAT LEADS TO A DEAL WON IS WORTH FAR MORE THAN NUMEROUS UN-WON REFERRALS!

• If at all possible, contact the partner while you are right there with the referral. This demonstrates the degree to which you are tied to this partner and establishes instant credibility!

• Answer your phone!!! When a referral partner calls, answer the phone! If they are calling to shoot the breeze, and you are busy, let them know you’ll call them back. Many referrals that go stagnant could be won if that call had been answered while the partner had the customer on point and open to the issue that was causing them pain. Once the partner leaves, the prospect is going to move on and get rid of their pain, even if it means leaving it unresolved.

10 Commandments of Great Customer Service

By Susan Friedmann, About.com Marketing

1. Know who is boss. You are in business to service customer needs, and you can only do that if you know what it is your customers want. When you truly listen to your customers, they let you know what they want and how you can provide good service. Never forget that the customer pays our salary and makes your job possible.  
2.  Be a good listener. Take the time to identify customer needs by asking questions and concentrating on what the customer is really saying. Listen to their words, tone of voice, body language, and most importantly, how they feel. Beware of making assumptions - thinking you intuitively know what the customer wants. Do you know what three things are most important to your customer? Effective listening and undivided attention are particularly important on the show floor where there is a great danger of preoccupation - looking around to see to whom else we could be selling to.
3. Identify and anticipate needs. Customers don't buy products or services. They buy good feelings and solutions to problems. Most customer needs are emotional rather than logical. The more you know your customers, the better you become at anticipating their needs. Communicate regularly so that you are aware of problems or upcoming needs.
4. Make customers feel important and appreciated. Treat them as individuals. Always use their name and find ways to compliment them, but be sincere. People value sincerity. It creates good feeling and trust. Think about ways to generate good feelings about doing business with you. Customers are very sensitive and know whether or not you really care about them. Thank them every time you get a chance. On the show floor be sure that your body language conveys sincerity. Your words and actions should be congruent.
5. Help customers understand your systems. Your organization may have the world's best systems for getting things done, but if customers don't understand them, they can get confused, impatient and angry. Take time to explain how your systems work and how they simplify transactions. Be careful that your systems don't reduce the human element of your organization. 
6. Appreciate the power of "Yes". Always look for ways to help your customers. When they have a request (as long as it is reasonable) tell them that you can do it. Figure out how afterwards. Look for ways to make doing business with you easy. Always do what you say you are going to do.
7. Know how to apologize. When something goes wrong, apologize. It's easy and customers like it. The customer may not always be right, but the customer must always win. Deal with problems immediately and let customers know what you have done. Make it simple for customers to complain. Value their complaints. As much as we dislike it, it gives us an opportunity to improve. Even if customers are having a bad day, go out of your way to make them feel comfortable.
8. Give more than expected. Since the future of all companies lies in keeping customers happy, think of ways to elevate yourself above the competition. Consider the following:
   
   • What can you give customers that they cannot get elsewhere?
   • What can you do to follow-up and thank people even when they don't buy?
   • What can you give customers that is totally unexpected?
9. Get regular feedback. Encourage and welcome suggestions about how you could improve. There are several ways in which you can find out what customers think and feel about your services.
   
   • Listen carefully to what they say.
   • Check back regularly to see how things are going.
   • Provide a method that invites constructive criticism, comments and suggestions.
10. Treat employees well. Employees are your internal customers and need a regular dose of appreciation. Thank them and find ways to let them know how important they are. Treat your employees with respect and chances are they will have a higher regard for customers. Appreciation stems from the top. Treating customers and employees well is equally important.

Repeat Business

Do what you do so well that they will want to see it again and bring their friends.
Walt Disney

Improving Customer Service