When A Customer Contacts You, RESPOND YOU IDIOT! - 8 Things You Should Do.

I am a big outdoor person, and in particular a water guy (water skier) so I have a boat.  My boat is about 13 years old, so it is starting to get a few problems.  I bought the boat when I co-owned a boat dealership at the local lake.  The company we were selling for was a great reliable company that had awesome customer service.  As a lifelong small business owner, this was the only company I found to offer such high concern for the customer.

Fast forward 13 years.  I have a digital display in my boat which is going bad.  We have no dealer in the area, so I contacted a dealer about 100+ miles away.  He responded several weeks later that he checked and the part was basically not available. End of story.

I decided there must be an alternative repair solution (something the first dealer should have offered), so I decided to write the company headquarters.  I thought about calling, but needed to show photos of my display.  I thought about emailing, but didn't want to get lost in an email black hole.

In the end I wrote a nice letter detailing the problems including photos and questions as to how I might solve the problem.  Certainly they could think of something!? To be sure it was noticed, I sent it overnight mail (in the big envelope, with Attention Customer Service written on it), and got a delivery confirmation.

Certainly the customer service department will contact me immediately to let me know they received my package and will be working on it.  I waited, one week, two weeks, three weeks and now more than a month has gone by without the slightest hint of contact, or concern for my problem.

As a small business owner, what should you do if a customer has a problem or question and contacts you?

1. Have systems in place so when a letter, email or phone call comes in, everyone in your organization knows who and how to handle the contact.
2. Have a system in place to log in the contact so there is an automatic internal follow up system so the customer is not forgotten.  Assign a specific person to follow through.
3. CONTACT THE CUSTOMER IMMEDIATELY - and I mean immediately, by phone, email or both.  You have to let the customer know you care and you are working on the problem.
4. Do everything you can to find a solution or answer to the customer's problem.
5. Keep in contact with the customer to be sure they know you are working on their problem.
6. When you determine a solution (or not) let the customer know options, solutions, etc.
7. Follow up with customer a few days later to see if there is anything else they need.
8. Follow up with customer a few weeks later to see if there is anything else they need.

What not to do:  What my boat company did, ignore me.  Result for them, I most likely will not buy a boat from them (even though I use to sell their boats) or recommend them to others.

It is so easy to win over a customer and make them a customer for life by following these 8 steps.  However, it is also just as easy to lose a customer for life.  

Your pick.

Come on now, tell the truth when marketing!

I know we have all seen ads on TV for the next great product that will make you skinny, make you strong, make you younger and of course make the middle age fat guy have six pack abs by just wearing some device a couple minutes a day.

Most people accept these ads as a little far fetched, and most likely far from being real.  As such customers either buy or not buy based on that skepticism.

What makes me mad is when a local business, whether small or large chain store, misleads, or uses tricks in their advertising to get customers to visit their store.  Using such terms as 2 for 1, or limited time offer doesn't bother me.  What does is when companies artificially inflate their prices, just to get you in the door.

Several weeks ago I needed to have a poster framed for my garage.  I have a bunch of posters in my garage already framed so I knew approximately what the cost would be.  As I was discussing this with my wife she mentioned she just got a coupon from an art supply company for 60% off customer framing.  This was a chain store business with a local location.

Of course my thought was, wow, perfect timing to get my poster framed so I grabbed my poster and off to this company's local store.  That day they were installing a new computer cash register system so were having all kinds of problems getting my order together.  The cost of the frame came to $140, and that was with my 60% discount.  I questioned the price, but with the cash register disruption and the fact I had been there for about 45 minutes, I decided to go ahead and get the price straighten out when I picked up the order.

The posters I previously had framed at a local custom frame shop was about $145, so naturally I was thinking this price was way off and so I expected a big refund.  Before returning, I also checked online to see how much the frame would have cost and it was about $130.

With this information in hand I went in to pick up my order.  I first questioned the clerk that the price could not be right.  He checked and said yep, this frame is typically $391.  I mentioned the frame I had done locally by a custom frame shop was only $145 and found the frame online for less than that.  How could the exact (and it was the exact same molding) frame be $391?

The clerk's response was that we are always running big sales so the retail price is inflated so no one ever actually buys anything at retail.  I responded "So basically the price you charged me, which was 60% off your retail is really your retail price, not your retail price you have listed and so, I really did not save anything"?

He looked a little confused and then said, well yea.

Needless to say I learned my lesson from this poor marketing trick and will never do business with them again.  I normally shop at local small businesses but made the mistake of trying to save a few bucks and ended up not really saving anything.

Tom's #1 rule to marketing:  Don't mislead the public by over inflating your prices only to always discount them.  It is misleading, and really bad marketing.  Customers will catch onto this, and award you by not doing business with you again.

Be truthful with your customers, market to them honestly and in turn they will reward you as devoted customers forever.

If you would like assistance with your small business marketing,  please give us a call at the Roanoke Regional Small Business Development Center.  www.RoanokeSmallBusiness.org. We are here to help local small businesses with no-cost business counseling services.

Make Your Store Visually Unique and FUN FUN FUN!

Several months ago I was in Las Vegas and with the wife went shopping at the Forum Shops at Caesar's.  Anyone knows me, I am far from being a shopper, especially at malls.  However, I am always intrigued by the way stores market their products, and Las Vegas is known for going over the top as to marketing.

One store really caught my eye, as it is so cool I am not sure how anyone could walk by the store and not stop in.  I know my wife was more than happy to let me look around and take some pictures while she found something to buy.

The store is H&M, which to me meant nothing as I have never heard of this store, but found out later they are all over the country.

The store had very unique and interesting displays.  There was a large screen video playing along with music that fit the mood.  It was just a cool and fun place to shop; something I thought I would never say about a mall store, heck I even bought a shirt.  A lot of thought, and money went into the design of this store, and I am sure the sales are strong because of it.  If you go to Google Images and type in H&M Las Vegas you can see a bunch more photos.

As a small business, being able to afford the type of design and displays as this store is going to be way out of the budget.  But as a small business owner and entrepreneur, what can you do to make your business fun to shop at, and visually exciting?  

Can you add interesting displays, TVs, music, photos, games, interactive products, fish tanks, etc. to make the visit to your store memorable.  Maybe it is just offering a play area for children while mom shops.  How about offering free beverages (Grand Piano and their free Cokes), or even popcorn for the kids, dog biscuits for the pets, a social gathering for a club, the list is endless............

Ever small business can do something to improve the look and feel of their business appearance, both inside and outside, and thus make it more enjoyable to shop, meaning customers look forward to stopping at your store.

I can think of many stores I shop where the store looks the same as it did 20 years ago, most likely they hadn't even painted in 20 years.  Heck, if you can't think of anything else to do, just paint your place a different color and move some stuff around.

When I had retail stores we would move inventory around when it wasn't selling.  When the inventory was moved, it was noticed as something new and a frame that hadn't sold in months would sell in days because it got noticed.

Step back from your store and look at it as if a new customer to your business (or asks your customers what would be cool).  What is the look and feel of your store?  Is it a welcoming, fun, cool place to shop?  If not, how can I make it so?  To get truly devoted customers you need to have exceptional customers service, but you also have to make your place a unique, and exciting place to shop.

If you would like assistance with improving your coolness, give the Roanoke Regional Small Business Development Center a call.  We are a non-profit business counseling service that offers no-cost consulting services to small business and entrepreneurs.  Find out more at www.RoanokeSmallBusiness.org 

McDonald's 60 Second Guarantee???

Recently I popped into McDonald's for a quick lunch. When I pulled up to the drive-up window to pay, the clerk handed me a 60 second sand timer.  She told me they offered a 60 second guarantee that from the time you pay to the time you pick up your food would be less than 60 seconds, or your meal is free.

I though, wow, that is a neat twist on customer service where you get actively involved in the process, plus showing you how efficient they are at moving traffic.  After I paid I sat there watching the sand slowly go through the glass.  Part of me hoping the sand would run out so I would get a free meal, while a part of me rooting for them to beat the clock.

As I sat there watching the sand slowly seep through the tiny hole in the two sides of the glass I noticed the person in front of me appearing to be doing the same.  McDonald's had gotten everyone's interest in this simple little tool that involved the customer, just like social media.

Time continued to move forward and I noticed cars were only slowly moving forward.  There appeared to be no hope they would meet the 60 second deadline.  There was still one car in front of me when suddenly the sand ran out.  Their 60 seconds was up.  I felt bad for the team as they worked so hard to make the time, but maybe it was just an unreasonable time to meet.  Maybe they really never had a chance to meet it, especially at 12:00.  Should they have used a 90 second, or even 2 minute timer.   I would still be happy to have my food in 90 seconds and be excited they actually beat the time, for real.

At last, I pulled up to the window to have the lady hand me my food.  I know they tried hard to meet this deadline, but just could not.  Should I ask for my free meal since they did not deliver?  How many other people asked for their free meal.

As I handed my timer to the lady, I quickly turned it over so it showed there was still plenty of time left, and said with a smile, you beat the clock, good job and drove off with my happy meal.

Don't forget, the Roanoke Regional Small Business Development Center (Roanoke SBDC) is here to help with our free no-cost business counseling services for small businesses and entrepreneurs.  For more info on what we can provide, go to www.RoanokeSmallBusiness.org

Are You an Encore Entrepreneur?

There are more than 70 million Americans over the age of 50.  For many of these people they are ending their primary career, but not ready for retirement.  For others, they will be forced to work, but may have lost their job and can't find another.  One option that many people of this age group are looking at is business ownership.

1 in 4 individuals ages 44 to 70 are interested in becoming an entrepreneur, and 63% of Americans plan to work during retirement.

Many in this age group (of which I am included) have skills they have developed over the years.  These specific skills can be quite useful in a new business venture, but the skills to actually run a business may not exist.  This is where the SBA and your local SBDC can help!

The SBA has teamed up with AARP to develop special training programs for this group.  Go to www.sba.gov/encore to get the free toolkit.  Additional resources are available at www.aarp.org/startabusiness.

Of course locally the Roanoke Regional Small Business Development Center (Roanoke SBDC) is here to help with our free no-cost business counseling services for small businesses and entrepreneurs.  For more info on what we can provide, go to www.RoanokeSmallBusiness.org

This Should Be You Annual Business Plan

I know when you read my topic about doing a business plan, you probably looked the other way thinking "I don't have time for a business plan", or "why do I need one anyway?"

Many business owners think a Business Plan is for start-up businesses, or for someone needing money.  They might think "I am neither so I don't need any sort of business plan."  Of course they would be wrong.  Things change and believe it or not, your business needs to change.

When I was running my business, every January I would sit down and write my business plan for that year. It was a strategic plan as much as a business plan, but the terms are insignificant.  The point is that you need to do some sort of planning every year.

I think simple is always better, so how can I make a simple business plan?  I believe every business every year needs to look at three items, and thus this is my simple annual business plan for your small business.

1) Your Industry: Every industry is changing. If you sell multiple products, products grow, products shrink.  Take for example the video rental business.  10 Years ago the video rental business was strong, Blockbuster was going crazy and the independent stores were doing well.  Now you can't find Blockbuster, or an independent video rental business anywhere.  If you were in the video rental business six years ago you should have been looking to see what is going on in the industry before you signed a 10 year lease on your building.  The question now is, what is the video rental business 5 years from now, is it your business???

2) Your Competitor: Competitors come, competitors go.  Some business owners just say "I don't have any competitors"  or "I don't worry about the competition, they should worry about me".  Hey, that is what Blockbuster was saying in 2008.  Every business owner should know exactly who their competitors are and complete an annual SWOT analysis (an assessment of your businesses Strengths, Weaknesses, Opportunities, and Threats).  What are competitors doing, have they added new services, have they changed their pricing structure, have they gotten rid of services? What are they doing different, how are they advertising their business?  You really want to know what your Opportunities and Threats are before you lose those opportunities, or before the threats sneak up from behind and destroy you.  Again, ask Blockbuster why they didn't invent Redbox or Netflix?

3) Marketing: The last area to look at is your marketing.  Believe it or not, marketing has changed over the last 20 years.  Believe it or not, Yellow Page and Newspaper advertising isn't the only means to reach customers.  If you are not aware there is this really cool thing out there that is pretty cheap and can easily reach many customers.  It's called the Internet.  Be sure you have a website, make sure it stays current and relevant.  Look at Social Media, be sure you are evaluating other Internet marketing ideas.  Also evaluate where you are spending you current marketing dollars, and does it make sense.  Are you marketing to your current customers?  Most businesses should be spending more than 50% of their marketing budget marketing to their existing customers.  Are you doing that???  Each Year marketing will change, be sure you are keeping up.

That's it.  If you follow these three steps every year you will be a more focused, and stronger company and ready to fight another day!

Help Our Vets, SBA Veteran Pledge Initative

There are many veterans in the process of transitioning from active service to civilian life and not sure what to do.  Becoming an entrepreneur may be one of the best things you can do with the leadership, discipline and technical skills you learned while in the military.

As a former Army Officer myself, I know what I learned while in the military has served me well in running my own businesses, and now helping others with their business.

The SBA has recently announced the Veteran Pledge Initiative whereby they have made a commitment to collectively increase their lending activity to veterans by 5% per year over the next 5 years.  Of course, any loan would still need to qualify, but with this new increase push, lending might be a little easier.

The SBA also has their program Boots to Business initiative.  For more information go to http://www.sba.gov/bootstobusiness

Of course the Roanoke Regional Small Business Development Center is here to help you in any way with our no cost business counseling services.  We help the individual wanting to start their business or the person wanting to take it to the next level.  Please give us a call.

Fine is a 4-Letter Word

How many times has a waiter asked you how your meal was and you just said "Fine," even though it really wasn't what you were hoping for? Have you ever had the waiter question you about your answer???  I know I haven't.

In my last post I talked about getting "Devoted Customers".  Part of getting devoted customers is making sure every experience the customer has with your business is memorable, exciting and personal.

We have all heard the statistics that only 4% of customers actually complain when they have a problem, which means 96% of your customers who have a complaint just leave.  These surveys also state that these unsatisfied customers tell on average 14 other people.

I find it hard to believe customers that have a true complaint tell just 14 people.  Most probably they tell 14 people before they leave the store. These customers are texting, posting on Facebook, Tweeting, and then when they get home they are posting a negative review on Google, YP, Yelp, Yahoo and anywhere else they can.  In today's technological times, upset customers aren't telling 14 people, they are telling 14,000 people!

So what can your small business do to keep this from happening, and really getting those great devoted customers you really want?

1) Setup systems whereby customers can easily comment, both positively and negatively, about their experience.  From simple solutions, such as comment cards given to each customer, to pre-paid postage cards, to even cards (or tent cards for retail and restaurants) that have a QR code that take them to an online survey.  Best would be to use all of these.

2) Send out surveys to customers from time to time just to find out how about their experience with your business.

3) Know how to recognize dissatisfied customers.  Just like the customer at the restaurant whose meal was "Fine", recognize speech, body language, etc. and if you see something that just does not seem right, ask probing questions to find out the customers real feelings.

4) Really get to know your customers so they understand that you really really want to know when they are not happy, or even whey they would like to see something different, new, etc.  Make customers understand the importance you place on customer feedback.

As a small business, or entrepreneur, don't stick your head in the sand! You want to know what your customers are thinking. You want to know their comments, complaints and suggestions.  Develop systems and train employees so you can develop those true Devoted Customers!

Are You Ignoring Bad Online Reviews?

The other day I was doing my normal reading of blogs, etc. and notice a statistic that I found quite interesting, but a little disturbing.

72% of Bad Reviews Online Are Left Unanswered.

I don't know whether this number is correct or not, but the point is that many negative reviews are left unanswered. I know this first hand because I have left some that have become ignored.

So, should you ever ignore a bad online review?  I am sure some people will say yes, but I am not one of them.  These are my tips for online reviews:

1) Find Customer: First, find out who the customer is that posted the review.  Reach out to them offline and attempt to solve the issue.  If it is resolved, ask them to remove or modify the review.  Even if it is not completely resolved, just the act of reaching out may cause the person to modify their review to be a little more positive.

2) Fake Review: If the review is flat out wrong, or obviously posted by a competitor, etc. make a simple statement that you would like to understand the problem this customer has. If you have no idea who the customer is and cannot determine when the problem occurred, add that you would be willing to discuss this if they would come forward. This puts the reviewer on the hook to further clarify the problem, or look as if it was fake.  Most people reading the review will figure it out that this is a fake or untrue review.

3) Post Response: If there are circumstances surrounding the incident, or issues, then let others know.  Maybe it was right after a fire and you were out of chicken, or if you had half of your staff out because of a funeral. Maybe the customer was drunk and you had to call the police? Just make sure you provide only facts, not your subjective comments.

4) Be Positive:  No matter what, try to stay as positive as possible and keep from the urge of telling the person off.  The last thing you want to do is start fighting with a reviewer online, as this will be a back and forth brawl and you will certainly come out the loser.  Thank the customer for their comments and apologize that they were not satisfied with whatever it was.

5) Answer Positive Reviews:  I don't understand why more businesses don't post comments to positive reviews. If a customer posts a good review about your company why not post a response such as "Thanks for your nice comments, really glad you stopped by and we appreciate your business, please stop by again"

6) Solicit Reviews: Of course the best thing you can do to offset a bad review is to have many many good reviews.  Do you have systems setup in your business whereby customers know how to leave a review on Google, Yelp, YP, etc?  Why not make up a little card that explains how and ask customers if they like what you did if they would leave a review?

Small Businesses have a unique and really inexpensive marketing tool.  Using Reviews to your advantage by not only answering negative ones, but commenting on positive ones and also asking for reviews.  Take the time to follow these rules and you will see results.  Remember, people like to hear what other people have to say about your business much more than they want to hear what you have to say.

Is Customer Satisfaction Enough for Your Small Business???

I was recently working on a presentation about customer service and while doing my normal research  I found some very interesting information. Probably the most profound statistic I found was about customer satisfaction:

"86% of customers who go with a competitor express total satisfaction with the previous company"

This got me thinking. If great customer service is what we are always talking about in small business,  yet 86% of our customers are willing to try someone else, is customer satisfaction what we are really looking for?

Lets take a look at really good companies such as Southwest Airlines, Amazon.com, Nordstrom, Zappos and even Starbucks. Do they have satisfied customers?  Yes, but their customers are not only satisfied, they are "Devoted Customers".  The customers only shop at their stores unless they really can not get what they want, another business is always a second choice.  They are also the "Brand Advocates", who talk up your brand to other people.  These are the customers you want.

In my research I also discovered 44% of customers state their buying experience as Bland, Boring and Impersonal.  And we wonder why 86% will try someone else.

These are 8 steps you need to take to get these "Devoted Customers"!!

1) Create Excitement! Not only about your products but your brand, your people, etc.

2) Listen to your customers! Really be sure you are giving your customers exactly what they want and asking them for their input. Make them feel part of the "Team"

3) WOW them! You have to WOW people so when a customer shops at your business, they go "WOW, that was an awesome experience!"  How many times have you been WOW'd by a business??  I know it is rare for me to be WOW'd by a business, but when I am, I am committed to them.

4) Go Beyond Expectations! Many businesses talk about their great customers service, but the ones that really stand out are the ones that deliver to their customers much more than they ever expected.  Give the customers something they did not expect.

5) Build Relationships! Customers really like doing business with friends, or people they like.  You and your employees need to get to know your customers.  Know your customers by name, know where they work, their families, and make note of when something exciting happens. This isn't just about sending a birthday card, it is about telling customers you heard their child just made the honor roll, or just came in first place, or they just got a promotion, etc.

6) Make sure every experience a customer has is positive! Don't every let  a customer have a negative experience about your company.  This applies not only when they are buying, but also your accounting department, your website, your marketing and even your delivery person.  Make sure every touch point is a positive one.

7) Reward Your Best Customers! Don't you just hate it when you see a great special being offered to new customers for the company you have been loyal to for years.  Nothing wrong with giving enticements to new customers for signing up, but don't forget about the loyal customers who help you get where you are at. Award them from time to time something special and unexpected, these gifts will pay you back in more loyal customers.

8) Hire, Train and Keep Motivated Employees! A book I read many years ago was 'The Customer Comes Second."  This is a great book about in order to treat customers right, you have to have a good motivated staff who wants to provide and knows the importance of providing great service.  To accomplish this you should setup systems that allow customers to easily comment about employees, and then have reward systems in place for great service.

As a small business owner, or new entrepreneur, you have a big advantage over larger competitors.  You can really get to know your customers, you are a member of the community, you can really listen to your customers and thus respond quicker to what they want.  Be sure you use this to your advantage as a small business owner.

In the next post I will discuss the importance of really understanding your customers.  Stay tuned!

Small Business Now and Five Years Ago - Different?

Constant Contact recently conducted a survey of about 1000 small business throughout the United States to ask about doing business now compared to five years ago.  59% of small business owners say it is much tougher running a business now than five years ago.  Some of the reasons, include rapid change in technology and trying to keep up with it, there is more competition for almost every type of business and there is still a major uncertainy about the economy which means many are still reluctant to hire.

Hard to imagine it is only five years, but look how much just marketing has changed in the last five years.  Moving much more towards online and away from traditional.  For many really small businesses the change has been hard to keep up with, but is also a great opportunity to get your message out to 1000s of people for little money. 

Click here to see the entire survey results, really interesting.

This Social Media Thing Might Catch On!

Over the last two days Leslie Coty of Coty Connections (www.cotyconnections.com) has been doing a class on using Facebook in your small business.  This whole social media thing is so confusing to many small businesses, even me,  and is why we do these classes.

Leslie started off with a cool video about social media in general and the affect it has on our lives.  If you get a chance click on this link and watch http://youtu.be/QUCfFcchw1w 

Even more importantly as a small business owner you need to be aware of the impact social media has, or will have on your business.  Take the necessary time to learn how to use these tools (they are tools just like QuickBooks is for your accounting) to grow your business.  The business owner who fails to recognize the impact social media does and will have on their business, will be sitting on the sidelines as your competitors fly by.

Tom

www.RoanokeSmallBusiness.org 

Health care law and small business

There is a lot of information flying around as to the effect the new Health care law (otherwise known as Obamacare, or Affordable Care Act) will have on small business.  

I hear from small businesses everyday and many of them complain about the inability to obtain decent health insurance for themselves and their employees.  Of course the majority of my clients fall in under the threshold of either 25, or 50 employees so my perspective may be different than those of the small businesses that have more than 50 employees.

For the most part, the new health care law (at least in appearance as that is all we can judge at this time) seems to be good for small businesses.  It will allow them to get coverage through what is called SHOP or Small Business Health Options (I guess SBHOP didn't make sense), and there are tax credits (these are credits, not deductions) which allows small businesses to get some credit back for the premiums paid.

If you want more information you can go to www.sba.gov/healthcare, or click here for a nice summary of the healthcare law on small businesses.

Tom
www.RoanokeSmallBusiness.org 

WOW, The IRS Makes Something Simpler

The IRS has just published a new option for business owners who operate out of their homes.  In the past it was formula based and had to include totals for electricity, insurance, mortgage interest and even depreciation.

For 2013, an individual who operates their business out of their home, and thus is where their office is located, can now use a figure of $5 a square foot, with a maximum 300 square feet ($1,500 max deduction).  No other record keeping is necessary, but you also can't claim any other expenses.  If you file a Schedule A (itemized deductions) you can also claim mortgage interest and taxes on your personal return.

Of course you still have to abide by the general rules of home office deduction which means it has to be a dedicated area (not your dining room table on Fridays) and must be your principal place of business.  There are a few other requirements.  You can also continue to use the old system for claiming deduction if you wish.

Be sure if you are working out of your home and allowed to take this deduction that you do so. It is always nice when the IRS actually makes our life easier.

Tom