Excel at the Basics

When it comes to setting business expectations on what customers need or want is overcomplicated when what is really needed is to excel at the basics of business. In an attempt to offer the fanciest product or latest technology – essentially aiming to be everything to everybody – business owners forget that what customers really want is to just receive consistent and honest service.

Think about some of today’s best companies: Zappos.com, Amazon.com, In-N-Out Burger, and Apple. Sure, they have some amazing products and a great experience. But, what they do that is even better is they focus on keeping it basic when it comes to their core business and what they are good at.

Simple is the New Black

You don’t have to be big box brands to practice and succeed at their keep it simple formula. What tends to happen no matter what size of business you run is that it becomes easier to over think what customers want. Instead, focus on those things that many businesses don’t often even think about:

• It’s Simple to Smile: Customers are often taken aback when a business owner or their staff stop and genuinely smile back warmly when you interact with them. How many times have you gone to a store and not even had the person behind the register look at you let alone make eye contact and smile back. In the virtual world, it may be hard to send a smile through an online transaction but you can consider calling your customers. After all, it is possible to hear a smile on the phone.
• It’s Simple to Say Thank You: Thank you along with other polite mannerisms seem old-fashioned and rarely used. That’s why when a customer hears a thank you or gets a thank you email or note, it can make a real difference. It means that you are letting the customer know you took extra effort to show your appreciation. Just recently, a golf course sent an email thank you within 24 hours of my visit to their course. I had enjoyed the experience with my colleagues, but I had already moved on to my next work day. However, when I opened my email, there was a short and personal note from the golf course, thanking me by my first name and time of visit and offering their gratitude for my patronage. It brought them to mind again and made a mental note for me to stop by soon to play that course over any other one in my local area.
• It’s Simple to Listen: In our fast-paced world, listening is another action that doesn’t keep up but should do. When customers see a business is clearly not listening, they feel unimportant and unnecessary to that business, so they keep searching for a similar business until they hit upon one that takes the time to stop and listen…maybe even ask questions of their customers. Listening can involve verbal action or it can be asking for their opinion on a social media site.
• It’s Simple to be Honest: The lack of integrity and ethics in today’s business world is shocking and very discouraging. However, as corporate social responsibility gains traction, it is becoming “fashionable” again to be honest and trustworthy in all your dealings. It not only presents a way to leverage a brand built on good practices, but it is also simply the right thing to do.

Make that with an Extra Helping of Consistency

Beyond sticking to these seemingly simple, but truly effective, strategies as a core philosophy for your business, the true work involved is the effort it takes to remain consistent. It can be difficult to remain consistent when market cycles change for the worst or competitive pressures tend to create panic. This is when companies let go of the simple things and assume they have to “up their game” and do something more complex. In actual fact, what they need to do is stick to the basics – the principles – of good business and customers will be happy, be engaged, and be loyal.

When challenges arise and you may feel like veering toward a new game plan that is much more complex, stop and consider the help of a business coach who can help you stay on the right course and help you practice – and excel at – the basics. What is your experience? Tell us what you have found good or challenging about excelling at the basics.

The Keys to Customer Loyalty: Service and Gratitude

While it makes sense that customers want to feel treasured and be made to feel like VIPs, there are very few companies that actually deliver the goods. 

Very often, customers experience treatment that makes them believe they are just a number or a dollar sign to the companies they buy from.

The problem with this kind of treatment is that there is way too much competition in today’s global and online marketplace for any company to think that customer service can make it as an afterthought. If anything, the current economy where customers are scaling back with their discretionary spending means that playing nice actually needs to become being nice and grateful for their business at all times.

Service Expressions

There are many ways that you can express a higher level of service as Customer Service Expert Lisa Ford has noted:

• Service Their Way: Like Burger King, you should deliver service the way the customer likes it – hot, fresh, and unique. There is no way that homogenized service delivery is going to speak to every customer. This means you must use different channels to reach out to people on their terms as well as change your service offering for each demographic in your customer base.
• Service on Time: Being fast yet efficient with a dash of quality should be part of every service recipe. Customers want you to answer them quickly, they want quality service, and they want you to deliver what they asked for rather than what was convenient or on hand for you.
• Service with Style: Nobody wants to do business with a robot – at least not yet! Even if you are an online company or virtual business, all customers want a human and personable touch to their transactions and purchases. Be present in the service delivery by acknowledging customers, picking up the phone once in awhile and talking to them, or sending personal notes that point out something unique about them as your individual customer.

Gratitude Delivery

Gratitude is so much more than just saying “thanks and have a nice day.” And, it goes beyond common courtesy and prompt attention.  It is a much deeper and more emotional way of expressing how much you appreciate your customers and their decision to select you for their product or service.  

Academic research has concluded that gratitude in service delivery goes a long way to cementing customer loyalty across many purchase decisions. Here are some tips on showing gratitude:

• Be Genuine: Customers are not dumb. They know when and if a company is genuinely thankful for their business, so it doesn’t pay to try to come off as thankful if the messages are not genuine and backed up by actions.
• Be Empathetic: Illustrate to customers that you relate to their ‘pain points’ or their problems by connecting your own experiences to theirs and offering a solution that benefits them in a way to make that pain go away. After all, gratitude is an action where you illustrate just how much you want to help them and appreciate them as individuals.
• Be Consistent: With so much fickle attitudes that customers get hit with on a daily basis, a winning strategy is to ensure that each and every time there is customer interaction that they get the same level of appreciation and interaction. This is especially the case when they may interact but not buy at that particular time. It’s not about showing gratitude that they bought from you. Instead, it means being grateful that they window-shopped or even stopped by to ask a question.

Loyalty Strategy Planning

Delivering these two keys to customer loyalty does not happen overnight and takes a lot of practice. Whether you are a brick-and-mortar operation or an online small business, it is not easy to develop a winning loyalty strategy on your own. Consider working with experts who specialize in customer loyalty techniques or who can help hone your customer interaction actions and attitudes to win over your current and future customers.

The Rigors of a Business Owner

Sometimes, being at the top of a company is not what it is all cracked up to be. The title looks good: Owner, President, Founder, CEO. 

However, the responsibilities and rigors that come along with that second line on your business card can be lonely and challenging. Others in the same position feel your pain and have experienced some of the very same dilemmas.

 

Filling Very Big Shoes

It is easy for a business owner to second guess themselves or feel perplexed when it comes to decision making, especially if they are a small business and do not have a team of executives helping them sort out all the external and internal factors that have to be considered. Do these feelings sound familiar:

• It’s lonely at the top. There is often a sense of feeling alone and isolated, especially if you are a small business owner or operate a business from your home.
• I don’t know why it is so hard to stay focused. With no one above you or around to monitor your work habits, it may be hard to stick to the plan.
• I’m not sure I’m making the right decision. Not having anyone to bounce ideas off of or any other perspectives can make you feel like all decisions are made in a vacuum.
• I feel like there is something missing. The same goes with this impression. It’s hard to know and cover everything that comes up with a business. There could be unforeseen challenges and missed opportunities.
• My employees are not providing advice or feedback because I think they think I’m the boss and don’t need the help. Often, employees may feel that the leader simply knows what they are doing and should not speak up. While you might not have intended for this formal relationship to develop, employees rarely feel comfortable to just speak up.
• I think I might be procrastinating and can’t get motivated to do what I know I should. Along with losing focus, the lack of a higher power to get you moving means you may not get what you wanted done regardless of the little voices in your head telling you to hurry up.

Achieving Accountability and Proactive Decision Making

Being at the helm of a small business does not mean you have to go it alone and there are ways to get support from staff and outside experts in a way that helps you slip into those big shoes quite comfortably and enjoy your role as an accountable and proactive leader:

• Consider professional assistance in the form of a business coach or business counselor who can help you shape your business as well as your own habits, behaviors, and practices to become more disciplined and proactive.
• Call on and visit customers when you can to stay in touch with your audience and relevant issues.
• Interact with your staff and encourage them to share in decision making and idea generation.
• Join networking groups, industry associations, and local small business meet and greets to interact with colleagues and your peer group, gathering advice or simply commiserating.

Getting Answers

It is important to reach out to others – both within your business in terms of employee interaction and outside through customers, the community, experts, and business colleagues. Have you had similar feelings or concerns as a business owner? What have you done or what are you still struggling to overcome? Let us know.

How to Stimulate Sales during a Lackluster Economic Recovery

Sales is as much a science as an art. It can be challenging enough to find the right formula or set of ingredients during good economic times. 

However, when money is tight for consumers or for your business clientele, convincing anyone to buy becomes even harder. It’s not to say that it can’t be done and successfully. It is just a matter of asking yourself the right questions and taking a hard look at what you might be able to improve.

Questions to Ask

Before making any changes to your strategy with the objective of stimulating sales, ask yourself these questions:

• Do you know your market? That means can you describe your target audience, their unique needs, and what they value?
• Do you know who your sales team should be calling on? Is there a specific niche of your target audience that may not be as impacted by the recent economic downturn as others? Even if segments have been affected, could those groups be served by your product and service in a way that fills their need or heals their pain points?
• Do you have daily sales activity planned and do you track this activity with specific metrics and performance indicators?
• Do you have specific sales goals and targets and are you always reviewing them and adjusting as real results come in?

Tips on Stimulating Sales

To keep focused on opportunities rather than the challenges at hand, there are a number of tips to consider:

• Keep focused on what you do best and do not take the route that a new product or service will stimulate sales. It may only put you farther behind and put a dent in cash flow.
• Hone in on the customer. Service excellence is one of the most important things you can do. It lets customers know you care and are interested in them rather than in just making the sale. Be sure to listen to the customer and check in with them on what they need or what you could do better for them.
• Try new sales channels, especially low-cost options like those involving online prospects and business opportunities. Also use these channels, such as social media marketing and social networking, to gather more information on your target groups and intelligence on what they like and what they need.
• Spend time on activities that help enhance your reputation and brand, including socially responsible initiatives that not only illustrate your commitment to the environment or the community, but these strategies may also open up new opportunities for sales, lower your overhead costs through new green efficiencies, and expand your network of sales prospects.
• Don’t just think about stimulating sales now; have a long-term prospect and plan in place for the recovery. Measure progress and work on performance issues now so you are ready.

Sales Strategy Counseling

The good news is that you don’t have to go through this challenging market cycle alone. There are many ways to seek counseling and advice to help you over these hurdles and navigate through the choppy waters. Think about these potential partnerships:

• Local networking groups in your industry or community;
• Online networking groups through social media channels;
• Business coaches and counselors; and
• Organizations like TAB where you can tap into the expertise of seasoned business executives who have operated through all types of sales and market cycles.

Maybe you have some advice to share, so be sure to submit your ideas below. Or, if you are in need of support and assistance, feel free to post your question or comment below.

The Power of Metrics

If you know the key metrics of your operation, adjusting the structural size of your business – whether that may be up or down – becomes much easier to do. However, in getting caught up with the day-to-day issues that arise with a business, many small business owners rarely have time to think about their overall performance and what they could be doing better. Taking the time to examine metrics can mean the difference between new customers for you or those for your competition. You pick!

Breaking Down the Metrics

In first getting acquainted with the metrics you need to measure, here are some areas that you, as a small business owner, need to consider:

• Leads generated: Every business owner must look at how much interest they are generating in terms of potential customers who may buy a product or who are considering a service offered. It is important to not only know how many leads are being generated, but it is also crucial to know where those leads are coming from to better understand how to adjust a marketing or sales strategy currently in place. If traditional marketing is not working and it is too expensive, then perhaps it is time to look into social media marketing channels.
• Leads converted: Of the leads generated, a small business owner must then know how many are now being closed as sales and primarily what channel or conversion strategy that is in place is getting it done for the company. If the core message or channel being used is not working, then it is time to try something different. Without having those numbers to look at, a business owner may just continue doing the same thing but wonder why performance is not improving or even getting worse.
• Average dollar per transaction: A business owner must continually reassess their price point and determine how that price is covering overhead costs whilst offering a margin that delivers a good level of profitability to keep the business moving. Looking at how much each customer spends also tells a business owner a lot about their customer base and demographic, which can help devise a way to incrementally increase those dollar amounts per transaction.
• Average transactions per customer: A business owner must also examine how many times their customers come back for purchases so that they can adjust their strategies to be more appealing or further cement that customer’s loyalty to their products and services. This may involve figuring out how to enhance the value proposition or whether it is time to devise a new product or expand the service offering.

Market Cycles Influence Metrics

Decisions about what metrics to change within a business are often motivated by market cycles. For instance, a downturn in the market like recently experienced often leads to companies having to downsize their business by as much as 40%, depending on certain factors like cash flow, revenue reduction, and margin shrinkage.

However, a small business owner who is prepared for such market cycles by knowing the aforementioned metrics can readjust without too much damage or disruption to the organization. There are cases where a business owner who has spent time getting to know the necessary metrics was able to restructure his organization, develop a new budget, and adjust his employee size and payroll. This provided him with a credible plan for the future that would sustain the business during the downturn and have it in good shape for any future economic rebound.

The lesson learned here was that a small business owner must track their metrics over time – often many months and on an ongoing basis – to see where performance standards could be viewed as good, fair, or poor. This provides the necessary time in which to readjust those areas to improve business metrics so that a good performance can result no matter what type of market cycle the business is experiencing.

Getting Assistance

Many small business owners like you may be struggling with metrics. Maybe you are unsure how to apply the recommended metrics or what the numbers mean when you calculate the results. You also may be challenged to connect the dots in terms of what strategies will help address performance gaps so as to move from a poor to great rating. Groups like The Alternative Board are here to help. 

Feel free to submit your questions below or send in your thoughts on the power of metrics to share with our other readers.

Do You Know Your Core Business?

A renewed focus on the core business is more critical than ever as businesses seek to rebuild their competitive advantage. It is also a key strength to have as industries and markets return to growth after pushing past the challenges of the recent economic downturn. 

Having a strong core business will be the foundation for successful expansion as the economy recovers. After all, this is what makes you money – whether it is a product or a service.

Important Things to Ask Yourself
Maybe you have a good idea about your core business and how to define it by a product or service, but you need to dig deeper. Think about how you would answer these questions:

• Is my core business a money maker?
• Does it offer value or something different?
• Am I truly good at it or could I enhance my core business offering?
• Do I truly love what I do?

You’ve Defined It…So, Now What?

If you know the specifics of your core business and you’ve come up with some answers to the above questions, it might be time to make some critical decisions that will determine the scope of your future success.

If you do not believe your core business is making money like it could or if you are not sure if it is actually providing the value and differentiation it should, maybe it is time to reconsider your strategy or redefine your core business. In looking for ways to make changes, many business owners truly struggle because they lack the knowledge and insight to choose the right path for them and their company.

Core Business Strategies

Here are some ideas that might help navigate where to go next:

• Don’t try to be everything to everybody. In the process, you will lose that focus – that core – and end up being not good at a lot of things. Instead, it would be better to really excel at that one core thing that got you to start a business in the first place.
• Look to develop a network of business partners or allies who can provide sound strategic business advice or, in some cases, serve as go-to’s for the clients you may have that may benefit from their core business over your own. These partners will appreciate the referrals and your clients will value your level of concern for their needs over just making money. Taking this tact will also help you better focus on your core business rather than trying to please everyone even if it is outside what defines you.
• Ask others for professional advice about how to enhance core competencies and the capabilities that activate your core business. The most successful people are those who realize that they do not know it all and cannot go it alone. Instead, leveraging the wealth of experience and intelligence of others in the business world can help improve your core business, respond to specific challenges, and take advantage of significant opportunities.   

Your Core Business

Tell us about how you define your core business and what tools you use to ensure that you keep that focus and how you build it on a foundation of shared knowledge or a network of business partners. Or, if you are having a particular problem with defining your business, leave your question below. The Alternative Board can help you grow your business. Please give us a call at 770-633-6078.