Wednesday, December 08, 2004

The week gets better!

If you don't burst a rib chuckling at this entry, go ask Santa to give you a new sense of humour for Christmas.

I can just imagine the feisty Mavis skidding to a Roadrunner halt in a cloud of dust and declaring: "Not for me, Boyfriend!"

I love her!

"LIFE'S JOURNEY is not to arrive at the grave safely, in a well preserved body, but rather to skid in sideways, totally worn out, shouting "Holy shit, what a ride!"
Mavis Leyrer age 83

This is a new angle on "Take time to smell the flowers".

Now, if Mavis can do it, so can you...get to it....go on, do something "dangerous".....today....now!
P.S. I'm sure the word "ride" is open to any interpretation you like.......and I don't know Mavis personally.

Way To Go, Mavis!...I'd love to know you.
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This item is a reprint from a very savvy web expert, Paul Myers. His site is at :
www.talkbiz.com

How Many Customers Do You *Really* Need?

The answer to that question will surprise you. You only need about half as many as you have now. If you want to make 2.5 times the money.
We spend a lot of time as businesspeople looking for ways to find new customers. For many, that is a key to survival. And it can seem to be magic as much as a science. Often we get so wrapped up in finding a lot of customers that we forget to be picky about who our customers are. I don't mean the personal pickiness that says "I don't like his hat. I think I'll make him shop somewhere else and save myself the sight of it." I mean the kind of pickiness that says "Will I make more on this account than just expenses? Is this the best way to spend my time right now?"
The 80/20 Rule applies here as well as anywhere. 80% of your profits will come from 20% of your accounts. Old saying, but true for most businesses. There are certain types of customers that generate substantially higher profits with less headaches than others. We all know it, but we often just look at it as a cost of doing business. Ask yourself, "Which of my customers are the best to deal with and the most profitable?" If you can't answer this off the top of your head, from having looked over the books and the schedule carefully, then it would be a good excercise for you to do that. Soon.
If you're in a business that involves a one time sale, figure out which aspects of your marketing and advertising get you the most customers with the least trouble. Focus on the high return sections of your business. Once you know which customers are the easiest to get, or the most profitable to service, concentrate on increasing your efforts in attracting and retaining more of those people. Then work with those people to help them get more from your product or service. Help them grow their business, and their need for you and your service will increase. So will your profits. How would you like to have been the owner of the first advertising company that handled accounts for Coca-Cola or Ford? Todays small businesses are tomorrows multinational corporations.
When you focus your efforts this way, you soon find that you are spending less time and making more money. If you just drop the less productive or counter-productive 80% and get twice as many of the truly profitable accounts, you'll make 2.5 times the money in less than half the time. Could you live with that? ;)
So, what do you do about the 80% who are either barely profitable or actually cost you money? There are a number of things.
1. Dump them. (NOT recommended. It's rude, and bad for business.)
2. Find someone who specialises in handling their type of situation or who will mesh better with them personally and give the business their name as a referral. Most businesses will understand if you tell them you're changing your target audience and want to make sure your customers are well taken care of. If you do this, it might be better to let the customer know in advance, or even give them the competitor's name instead of the other way around. Explain to them that you regret it, but you are changing your focus and want to make sure they get proper service. Will their feelings be hurt? That depends on how you handle it. Will your feelings be hurt if you keep losing money on a customer? Does it do you any good to make them feel good while you go broke, forcing them to go to another business anyway?
3. Retrain them. (This is the preferred option, where possible.)
Yes, I said retrain them. ("What? I don't train my customers!") Ah, but you do. People respond to you based on your actions more than their prejudices or preferences. Example: You all know someone who is consistently grouchy, right? Never happy with the service or products, surly with food servers, kicks dogs, etc. And you have all seen the one person who gets them to smile, who they tip well, and greet by name. What's the difference? The one who brings out their better nature does so because of a difference in the way they handle things. They *behave* differently. If you let someone take up valuable time on irrelevant chit chat while a new customer waits, it's *your* fault if that person walks out the door. Ask the new customer what you can do for them, and introduce them to the talker. Then, while you take care of whatever the new customer wants, the talker keeps them busy and makes them feel welcome. This is particularly useful in a repeat retail environment, where the customers often form a sort of "insiders club". Then, when the new customer has left smiling, you thank the talker for helping make them feel welcome. WHAM ! New behavior, based on a new view of him/herself. And as long as you reinforce it, it will stick.
If the problem customer is always complaining, find creative ways to fix it. One of the best is to simply ask "What do you think is fair?" Most people will respond to this in a surprisingly reasonable fashion. If they demand more than is reasonable, ask them for something specific in return. If they are still unreasonable (most people won't be when they see that you're trying to satisfy their complaint in good faith) perhaps dumping them is the only viable option. Even then, be reasonable. "I'm sorry we couldn't get this straight for you. Here, let me get you your money back." Then, while handing them the cash or a check "I'm sorry I couldn't have helped you out in a better way. I hope you find a business that can." If they look like they're going to complain again, "Well, I just wouldn't feel right taking your money if you're not going to be happy with the service." They will either straighten up real quick, or leave. But they won't have a reason to complain about you to others.
Many time the difference can be made simply by telling them what you expect, or mentioning the things you appreciate in your customers. "I really like the way that the folks who come in here ..." Fill in the blank with things like "Respect my time" or "Help my other customers" or "Are so clear about what they need", etc. Customers *want* to be appreciated as people, and they'll usually do what they think will get them that appreciation.
Another technique is to help the customer in ways they didn't expect. If you have a copy of an article ready for them when they come in, on a topic you know they are interested in or need help with, they will be far more likely to help you out. They will also usually find positive reasons for your behavior. Instead of "He doesn't care about my business or he'd be ready to take care of me when I come in." they'll think "He's busy. Business is really good, probably because of the little extra things he does for his customers."

Will this work every time? Nope. But combined with some of the other ideas here it will work more often than you might expect. And if you help the challenging customer to grow their business or enjoy your service more, they will become much less challenging and much more profitable. All at the same time.

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