We have all had a bad experience as a consumer where we felt the salesperson was only interested in his or her own needs, not ours.  In that experience, did the sales person’s actions reveal to you what motivated them? Did it seem like you were not really being listened to or understood? Did you feel they were trying to talk you into a different product or version of something in which they would make a bigger commission? What you most likely experienced was one of two types of motivations for selling a product or service; making a sale vs. making a referral.

Both of these motivations are important but in the long run a business that focuses on making a referral in addition to a sale will be better positioned for long term success.   A sale will help meet or exceed a goal and make budget which are rightfully important.  But the bigger, perhaps more important, value would be additional customers or repeat business.

Asking for a referral to generate new business is not a new idea but it is one that we often overlook.   We don’t seem to have a problem asking a friend, family member or co-worker for a referral when we need to hire a contractor or are looking for a new dentist. So, what is it that keeps us from asking our own customers for a referral?  Companies are continuously looking for new ways to generate new business and yet it seems that one of the most fundamental avenues in which to construct this is right under our noses. In our private lives, when we have had a great experience with a company or a service, we are eager to share our experience. I believe professionally, our best customers would be willing to do the same.

Darrell Zahorsky from About.com offers “7 Sure-Fire Ways to Build Your Referral Business”

1. Set A Target: In business, measure the results to improve performance. Set a clear goal with a time line. Example, 10% increase in referral business over the next 10 weeks.

2. Timing: Conventional sales wisdom claims the best time to ask for the referral is immediately after the close. This tactic is far too aggressive. Give your clients time to experience your service or product before asking for a referral. Ask for the referral at close only if your client is already delighted with your business.

3. Top 20: Not all customers are referral candidates. Find the top 20% that are ecstatic about your business and ask them for referrals. Make sure their network is the type of client you want.

4. Give and You'll Receive: Give your clients extra service and follow-up support before asking for referrals. When you give willingly to your customers, they will return the favor.

5. Type of Customer: Inform your referring clients of the type of customers you can help. Provide a clear picture of the customer demographics will help your referral marketing.

6. Rewards Program: Provide special rewards to your referring customers on a regular basis. If a customer provides you with 5 sales, offer them something special, e.g. discounts.

7. Thank-You: Lisa A. Maini, President of my Marketing Manager, recommends businesses need to establish trust to build referrals. Lisa says, "Create a basic thank you letter that can be personalized and sent to each referral you receive. Treat your referral sources with the utmost of care and you will not only build a foundation of trust but keep hot prospects coming to your door."

A referral from your customers may be one of the best ways to generate new business. What’s stopping you from tapping into the resources you already have in place? 

 
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Be honest, when you first heard about social networking sites such as, Facebook, LinkedIn and MySpace, were you thinking, this stuff is just for kids?  I am too busy to get sucked into these meaningless activities?  When this new realm of communication was first introduced you may have been right, but that has quickly changed   There is no lack of opinion where validity of social networking tools are concerned.  However, a recent study by Forrester Research speaks to this issue when they point out that, if you are not using these tools to increase your top line revenue and attract new customers, you are missing a large opportunity. 

“According to Forrest Research, one-third of adults online are ‘conversationalists,’ posting to sites like Twitter and Facebook at least once per week”. This doesn’t even include those who only peruse these sites only and do not post any content.  We shouldn’t get stuck on the question of whether these sites can be a useful tool, but rather how can we tap into this demographic of people who can help us expand our business.  One of the biggest advantages of using a social networking site is how quickly information can be spread or become viral.  As businesses mature and the market space becomes more populated, it is critical to continue to look for new and different ways to get your products and your brand more visible.  A word of caution to keep in mind is that in as quickly as good information can spread, the reverse is also true. When we’ve had a bad experience as a consumer or have had a negative interaction with a company that experience can spread quickly with the click of a mouse. 

A great example where a company has used a social networking site to further expand their brand and market space is a well known jewelry retailer. They utilize Facebook by setting up a “Fan Page” for their company. This gives them the ability to post sales on select products on a regular basis, which not only drives new business to their web site, but allows them to reach a potential new demographic. Go online and check out your favorite retailer’s web site to see how they may already be using one of these social networking tools.

LinkedIn is another social networking site. Their tag line is “Get the most from your professional network.”  Some people view as the adult version of Facebook. This site allows you to stay in contact with past and present colleagues and classmates as well as look for new business or job opportunities.  Another great feature is that it can also provide you with industry specific information and resources, as well as the ability to network with industry leaders.  One possibly overlooked use for this site is that it has the potential to help drive top line revenue. Is there a company you have been courting that you really want as a customer but can’t seem to get in the door?  Have you checked to see if any of your connections within LinkedIn or Facebook know anyone who works there?  If so, why not reach out to them and to see if they would be willing to introduce you. What do you have to lose?

Does your business have a Fan page on Facebook? What are you waiting for? Create one now at:  http://www.facebook.com/pages/create.php

If you are not registered on LinkedIn, you are missing out on a valuable networking tool. Register now at: http://www.linkedin.com/
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Loyalty 01/17/2010
 
Read any good mission statements lately?  Can you recall one that you read besides your own company’s?  If so, I bet you the one word that you didn’t run across in it was loyalty.  The usual mission statement contains talk of meeting or exceeding customer expectations, being number one in their particular industry, being fiscally responsible and bringing value to customers and shareholders. These are all good things but the one word that makes all of these happen is loyalty.  It doesn’t matter what profession you are in, we all tend to strive to provide great service both to our external and internal customers. If you break down service to its core you will realize that great service is loyalty based service.  The reality and secret is that loyalty must be given before it can be received.  In addition to not being confined by internal policies or a “we have never done it that before” attitude, it is the realization that the heart of customer service lies in loyalty that requires us to above and beyond how we typically do business.

There have been many studies done and many books written on what makes a company great. Some of the qualities are great employees, great products, gives great service and is easy to do business with.  These qualities have two things in common. They all are attractive qualities to both prospective employees and customers and create loyalty.   Without great customer service companies would not be able to attract and create customers, but even more importantly companies without loyalty will have no longevity.  We should view longevity in business, more like a marathon run than a quick sprint.  Our processes and policies need to reflect that we are in it for the long run.

One possible reason that loyalty is not talked about or stressed in businesses is that it is more difficult to define and achieve than customer service.  Our own experience as consumer’s day in and day out tell us that we know which companies provide better customer service but can we define why we are loyal to them? Is it simply that they provide us with great service or is there something much deeper going on that makes us loyal and repeat customers? Our own companies need to be loyal to our employees, product quality and of course our customers.  Listed below are a few ideas from bestselling author and speaker Jeffrey Gitomer in how to incorporate loyalty into your business:

1.       List all reasons that customers call you for service.

2.       List all barriers that you place in front of a customer, connecting with you.

3.       Once you have all the opportunities and all the barriers listed , have a weekend retreat with senior management and front-line people to determine best practices, generate new ideas for service, and making it easier to do business with your company

4.       Put the ideas and the best practices into action.

5.       Rather than announce all of these changes in the form of a bragging advertisement, or internal hoopla, let your customers have an opportunity to react and response to your new and better way of doing business.

6.       All members of senior management must support this process both verbally and visually.
Source:  Gitomer, Jeffrey. “Sales Caffeine”. (2009)

 The key to differentiating our company, products and ourselves is to strive to provide loyalty based service, not simply customer service.
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Noted Psychologist, William James said, “The deepest principle in human nature is the craving to be appreciated.” With this in mind, I have spent this week pondering the way in which we do business. Business is a race against deadlines and competition. The way in which we have proved to get more business done in a given day is by use of digital mediums (internet, cell phones, emails, texts). Though this aids us significantly, it also can harm a business relationship. It can lessen the very thing we seek to gain, meaning when we use these tools, we are leaving out the human aspect, the relationship in which our businesses were founded on, the backbone of our companies.

Not all communication with our customers’ needs to be face to face but the question we need to ask is, how would the results we seek be different if we spent our time making personal connections?  Would our potential and current customers or those within our network feel more appreciated if we limited the digital mediums and instead had some face time? Of course, knowing your customers and the way in which they construct business will help you know what type of communication will be most meaningful to them.  One goal in business is to stay one step ahead of the competition.  Do you know how your competition is communicating? What is your competitive advantage?

With the sluggish economy, budget constraints, and overloaded schedules there are some limitations to refining or implementing this form of communication. A few ideas we can try:

·         Schedule a meeting with your top customers or simply drop by and thank them
      for their business and how much you value them as customers

·         Send them a hand written thank you note for being your customer

·         Set up a monthly call schedule where you  call your top customers to see if
       there is anything else you can do for them

·         Catering in a lunch or simply bringing refreshments to a key department of
       one of your customers

·         Finding out their birthday and sending a card…make note of this for the
       following year(s) on your calendar.

·         After a meeting note personal data you have learned about your customer so
       that when you meet next, you can begin a discussion that puts them at ease
       as well as builds a relationship of trust. This is also tells them that you are
       interested in them as a person, not just what they can do for you.

 
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As we are at the beginning of a new year and decade, it’s important to take a step back and think about what is at the heart of our businesses. Sometimes we get so occupied with our daily tasks that we lose sight of the core of our business, the customer. Let's face it, it's pretty hard to turn a profit or make payroll without customers. It has been said that the customers you have now are your best customers, meaning that our focus is often centered on bringing on new business therefore; we forget the most important customers are our current customers. 

The question is what are you doing to keep your best customers?  How are you differentiating yourself, your products or your company from the competition?  A few ideas to ponder:

·A new marketing strategy with a focus on building relationships with your current customers

·Rebranding your products to show how they help solve your customers business problems

·Continue educating yourself by reading, taking further business courses or attending industry specific conferences

·Attend local networking events
 
Customer referral program

The start of a new year brings hope for a brighter future and an opportunity for personal and professional growth. One thing is certain though, your competition is not sitting still waiting for the economy to turn around or for glimpses of hope to appear. They are working their tails off to keep everyone of their best customers.  What can you do differently this year to keep the focus on your customers, your best customers?

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