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Email Marketing: 7 Ways to Build Relationships and Get More Customers

Posted on by Joan Nowak

With the so much emphasis on social media, many believe digital newsletters and email marketing are less valuable as a marketing tool. I disagree.

When done properly, email marketing can complement other online and traditional marketing tactics. Most email platforms offer options for automation, landing pages, integration with e-commerce and list segmentation. So it’s an effective and affordable way to generate new business and keep current customers engaged and buying more.

Whether you want to stay connected with customers, build your reputation as an expert or generate leads and sales for your business, success (a.k.a. results) with email marketing is in your reach. Here are a few things to consider, so you get results.

How to Get More From Email Marketing

Build a permission-based list. Customers and prospects that choose to receive your emails are a goldmine for small businesses. Make it easy for people to sign-up by including a ‘join our mailing list’ option on your website, blog, email signature, etc. Invite people you meet at events to join. Invite customers who visit your location to join. Make building your list a priority.

Deliver what you promise. People sign up based on what you communicate: the value and the frequency. If you promise tips and articles, include them. If you commit to specials or savings, offer them. If you promise something free, make it easy to get it. If they expect something monthly or weekly, be consistent. And remember, more is not always better. Set the expectations and deliver what you promise. Otherwise, people will unsubscribe or not open your emails.

If you use email marketing for multiple purposes, allow people to choose what they wish to receive. Most email marketing platforms allow for options or subscriber preferences. For example, a reader may sign up for your monthly newsletter only, everything you send or something in between. They have control and you have readers who want what you send.

Start with a compelling ‘subject’ line AND headline. You need both. The subject line get’s it opened, the headline get’s it read. Too often, the subject line is almost an afterthought. Give it the same attention you give a headline – make it compelling and recognizable. One way to do this is to include your company name such as ’10 Tips for Better Living from Company XYZ’ or ‘Upcoming Events from John Smith’. If you do a monthly newsletter, give it a name and include it in the subject line each month. The headline in your email is a key to getting people to read it and works the same as other print advertising. Make it benefit focused – what’s in it for them or why should they read more?

Stay True to Your Audience. Be clear on your target and always write with them in mind. Since most email marketing lists begin with customers, you should have a good idea of who they are, what challenges they face, what they like and dislike and why your products and services are the best choices.

As your list grows, you may have less intimate knowledge about your audience. That’s okay because you can assume they are looking for the same value and information. Why else would they sign up? So stay true to your target and you’ll enjoy greater success with your email marketing.

Make Content Count. If you are writing promotional copy, keep it concise and make sure your message – value/benefits, offer, and call to action – is clear and understood. Bullet points and sub-headlines work well. Write copy in the present tense, not passive voice. Avoid weak words like can, may, and maybe since they dilute your message.

If you write newsletters, make sure the topics are relevant and timely for your audience. Select topics that tie-in with what is happening in the news, in their lives or in their business – at this time. Include links to your website, blog, special offers, or other resources – to create additional traffic.

Encourage sharing. Ask readers to share directly or via social media. It’s a easy way to get your message to others, grow your list and generate additional leads.

Include Customer Quotes. Adding a brief but compelling customer quote creates a third-party endorsement and added credibility to your email marketing. Make the customer ‘real’ to your readers by including the customer’s name, city, company (if applicable) or even a picture. If you have testimonials on your website or online reviews, include a link and invite your audience to check them out.

It’s Measurable & Actionable

Email marketing is highly targeted, low-cost and measurable. Most programs include reports to show you how many subscribers opened, clicked on links to your website or other URLs, and bounces.

But here’s the best part. You can get a list of WHO opened and then clicked through to learn more. It’s actionable. You can follow-up or send additional information to create more sales opportunities.

Ready to Put Your Business on the Path to Success?

Would working with a business coach help you take your business to a whole new level? Then let’s explore the possibilities with a complimentary consultation. It’s a chance to get to know each other, discuss your goals and the obstacles that hold you back. Together we can determine if there is a good fit between your needs and my services.

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

Get Refocused to Achieve Your Goals

Posted on by Joan Nowak

The summer is the perfect time for business owners to re-energize and refocus. We are more than halfway through the year. Many businesses see a slowdown. More family fun. So why not take some time to assess where you are and make the adjustments you need to achieve your goals and finish the year strong.

While you may instinctively know some of the shortfalls, take a look at all areas of the business. Consider both results and actions taken (or not taken) – because the doing part really matters.

Need help? My Business Success Checklist is a great tool to help you discover some of the hidden opportunities. Click here to download.

5 Question Mid-Year Health Check

#1 – Is revenue (sales) up, down or flat? What are you doing to get new business or help generate sales from existing customers? Do you have at least 3-4 proven methods to grow sales – and are you doing them consistently each week or month so you achieve your goals?

#2 – Are gross profit margins from products or services consistently high or trending up? Review pricing, costs and value. What changes, if any, are needed?

#3 – Is your business operating efficiently AND effectively? Are customers happy based on reviews, feedback or complaints? Is work done right the first time, every time? Is continuous improvement a priority for you and your team?

#4 – Do you have the right people – employees, contractors, vendors and strategic partners – to support your business? Are there clear goals and expectations? Do you have backups or ready replacements for all key people and/or suppliers? Can your business run without your daily involvement – or is everything dependent on you?

#5 – Is profit sustainable and cash flow positive? Is net profit higher than last year at this time? Is your debt similar or lower than last year – and being managed properly? Do you review financial reports, understand them and use the information to help you make decisions? Do you re-allocate resources (time and money) when opportunities arise – or miss out on them?

After you identify the gaps or opportunities, re-set your priorities. In other words, list the actual tasks or activities you need to do to achieve your goals and finish the year strong. Results come from taking action – so start implementing!

Still operating without a clear road map for success? It’s never too late to get started. My Ultimate Guide to Action Planning makes it easy. Download it today.

More Profit Building Ideas for Your Small Business

For new business improvement articles, exclusive tools and insights on entrepreneurship, click here to subscribe to my monthly eNewsletter. When you do, I’ll also send you my free eBook, How to Build Profit Through Leverage.

9 Small Business Mistakes that Hinder Growth and Profit

Posted on by Joan Nowak

While experience can be a great teacher, learning from someone else’s experience can save you time, money and a lot of frustration – especially when it comes to growing your small business. So here are some common business mistakes you want to avoid or fix.

Mistake #1: I Can Do It On My Own

Most of us became entrepreneurs because we are experts or skilled at something and believed we could do it better than competitors or maybe our current boss. But building a successful business requires more than technical know-how. None of us are experts at everything – so surround yourself with other experts to fill the gaps. Whether you hire employees, sub-contract work, create joint ventures, work with coaches/consultants or develop strategic alliances – the support you need is available. Avoid this costly business mistake. Don’t try to do it all yourself.

Mistake #2: Keeping Your Business a Secret

Today, a website is a must-have for a small business. It is a great equalizer and can build credibility for you, your company and products. But it only pays off if people who want your products and services can find you. As a small business owner, search engine optimization with relevant keywords and content must be a priority. Use social media and other marketing tactics drive people to your site too!

Mistake #3: Creating Confusion With Potential Buyers

When starting a business, the goal typically looks like this: generate sales for your core products or services as quickly as possible by whatever means necessary. But if sales for core products are slower than expected, many begin dabbling with additional products or services to generate more revenue. Too many dissimilar products or different messages can leave people wondering what you do and why they should choose to buy from you. Focus on your core strengths and build from there.

Mistake #4: Great Products The Market Doesn’t Want

The best products or services will go unsold if you are talking to the wrong people – those who will likely never buy! Investing your time and money promoting your products or services to people who don’t have the resources, authority or need, today or in the near future, is both frustrating and costly. Who are the ideal customers for YOUR products and services? Be clear on this, find out where they are, how to reach them and then apply your resources to pull them in.

Mistake #5: Talk More Than You Listen

If you want to earn a customer’s business, you need to solve their problem or fill a need. So before you jump into your sales pitch, take the time to ask questions, listen carefully and determine what the customer needs. Your features and benefits are only relevant when they solve a customer’s problem or fill a need. Successful people tend to be good listeners – so you’ll achieve greater success when you spend less time talking and more time listening! Remember, technology and markets change, so keep your pulse on what customers need and adjust accordingly.

Mistake #6: No Follow-Up

Investing resources to generate leads for your company without a proven method to convert them into paying customers is costly. Whether potential customers come to you by phone, email, online or in person, a system for consistent and timely follow-up is a key to sales growth. Take the time to develop a procedure for moving prospects to customers. Take advantage of technology to ensure your process is both efficient and effective. Be consistent and watch your sales soar.

Mistake #7: Disjointed or No Procedures

Documented procedures for all the critical tasks and operations is a key to efficiency, consistency, continuous improvement and profitability. Yet despite the benefits, it’s ignored by many small businesses. This mistake becomes obvious when you hire and train new people, attempt to outsource or start losing customers due to poor service or missed deadlines. Take it one at a time, but make written procedures a priority in your business. The results will surprise you. My Ultimate Systems Guide makes it easy to start building systems and procedures in your small business.

Mistake #8: Hiring on the Fly

“Quick to hire and slow to fire” describes many small businesses. A strong team of people to support your business is certainly important – but only if they are the right people. There are proven hiring systems and tools, including a job description and clear goals, to help small businesses attract and retain quality people. Always hire with a purpose, invest in training, commit to developing your team and be willing to let go of those who don’t fit. Need an easy way to get the word out when you are hiring? Indeed.com is a great solution for small business owners.

Mistake #9: Roller Coaster Marketing

For many small businesses, marketing activities and spending look like a roller coaster, up and down based on how busy you are or how sales are doing. If your marketing is sporadic, your results will likely be the same. The key to attracting and retaining customers is consistency. It is better to do 5-6 lead generation strategies well and consistently than doing 10-20 of them periodically. And remember, marketing to existing customers is just as important as new business marketing — so incorporate both into your marketing efforts.

Which of these mistakes is impacting your growth and profit? Make it a priority to fix them – one at a time, if necessary. The sooner you do, the sooner your sales and profit will grow. And isn’t that why you are in business in the first place?

Ready to Put Your Business on the Path to Success?

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

Want to Be a Profit Builder?

Posted on by Joan Nowak

When you hear the words business growth, what pops into your mind? Is it revenue, sales or maybe new customers? What about profit? What are you doing to build profit in your small business? Is it a priority or an after-thought?

There are a lot of ways to build profit in your business. Cutting costs is the obvious one. While keeping costs down is important, put adequate resources (time and money) into other areas – and keep your focus on the bottom line. Be a profit builder.

5 Ways to Build Profit

#1 – Grow sales of higher margin products. Products and services, like customers, are not created equal. The growth of low-margin products can actually reduce your overall profit. Do you know which products or services deliver the highest profit margins? You should. Then put your marketing and sales efforts into selling more of those.

#2 – Gain efficiency with systems. This is especially important in businesses that rely on labor to deliver their products or services. In a service business, you are only as good as the people doing the work – so their efficiency and effectiveness are critical to your profitability.

Take advantage of technology to save time. Utilize checklists so employees have the materials they need when they arrive at customers locations. Have a system for add-on sales opportunities. Schedule work to minimize drive times. Eliminate duplicate work. These are just a few – I’m sure you can find others in your small business. When you do, enjoy the extra profit that comes from doing more with less.

#3 – Eliminate re-works that come from poor quality. Re-works or callbacks are profit busters. It costs you money to re-do the work – and you also lose the opportunity to serve someone else with that person or crew. Make quality a priority. Get it right the first time.

#4 – Profit from your pricing. When you use a standard markup and cost to set prices, you ignore the most important ingredient – value. This comes from being better or different. Your pricing should reflect your quality, uniqueness, and convenience. Don’t be afraid to charge more when you can. As a small business, discounts and low prices will always work against you. Avoid them unless you have a strategic reason for doing so. More sales at any cost is not a recipe for optimizing your profit margins.

#5 – Improve your marketing ROI. Marketing is an investment. It’s not about how much you spend, but how effectively you apply your resources – time and money. In fact, many of my clients are spending less and getting more revenue. You can too with a few changes: better targeting, emphasis on retention, compelling messages, diverse tactics, and a system that converts more leads. Marketing is not about getting leads – it’s about getting quality sales through current and new customers.

As you can see from these examples, profit-building requires a whole-business approach to growth – not just sales. Your people, systems, marketing and daily operations all play an important role – so leverage them. With small improvements in all these areas, you’ll grow both sales and profit. And that’s a recipe for a better business.

More Profit Building Ideas

For new business improvement articles, exclusive tools and insights on entrepreneurship, click here to subscribe to my monthly eNewsletter. When you do, I’ll also send you my free eBook, How to Build Profit Through Leverage.

13 Ways to Make Your Service Business a Profit Sensation

Posted on by Joan Nowak

Service companies make up 80% of the businesses today. From plumbers, doctors and hair stylists to accountants and printers, a service business helps or does the work for someone. Many are local. Most require a more personal interaction with their customers. All sell something intangible. But some stand out while others struggle.

13 Ways to Help Your Service Business Shine

Get Your House In Order. The core of a service business is the service itself. If you fail to deliver what you promise, customers won’t stick around and will share their bad experiences with others. Identify what you want the ‘buying experience’ to look like and have procedures in place to help your people deliver it consistently. Here are some great words advice from Harry Beckwith, “Getting the word out and attracting people to a flawed service is a strategy for killing a service company.”

Hire for Heart, Teach Skills. Your business is only as good as the people you employ to deliver what you promise. Skills can be learned through education or training from you or others in your company. But you can’t teach heart. People either care or they don’t. They are passionate about helping others or they are not. Keep this in mind when hiring people to represent your company and serve your customers.

Know Your Competition. In a services business, your prospects have more options than you think. Sure they can choose you or another company in your industry. But they can also choose to do nothing or perform the service themselves. Look for ways to create additional demand in your market by converting those who do nothing or do it themselves. Think emotions – what they can gain or avoid!

Mistakes Mean Opportunities. Outstanding service doesn’t mean zero mistakes. Service businesses are people dependent so mistakes will happen. How you handle them is the key to how you are perceived long-term. Don’t pass the buck or try to justify it. Fix it without a hassle and you may earn a lifetime customer and a lot of referrals.

Be Competent and Likeable. If you sell a service, you are really selling a relationship, so chemistry counts. Prospects need to like you and feel comfortable working with you. Sure you must be capable and professional, but most of all you must be personable! And it must come across in everything you do before, during and after the sale.

Price With a Purpose. Your pricing says something about you. Don’t assume it is always logical. People make assumptions about quality based on price. High price assumes high quality, low price assumes acceptable. What you perceive to be a value, may actually make you look second-rate.

In his book, Selling the Invisible, Harry Beckwith shared a few pricing tips worth repeating:

A little resistance is a good thing. If nobody complains, your price is too low!
Pricing somewhere between the high and low in the market forces you to compete with everyone — so, avoid the deadly middle.
Low cost is not sustainable and requires no imagination so don’t go there!
Charge for your experience, talent, skills, and knowledge – not your time.

Stand for One Thing. Have a singular, distinctive message for your service business and reinforce it every chance you get. You will achieve more if you narrow your focus, choose one thing and put the power of association to work. By nature, we associate one positive (or negative) thing with other good (or bad) things. Yes, it works both ways. So if prospects perceive you to be the most convenient provider, by association they will view you favorably for other attributes like quality and expertise.

Don’t Say It, Prove It. “We offer great service” won’t inspire people to try you since most businesses make these claims. If you really do a great job, create evidence to support this. Build your case. Customer satisfaction surveys are a great and often under-utilized way to document and demonstrate your service quality. The overall satisfaction scores along with customer comments and testimonials can be used in your marketing and make your service claims stand out. Afraid to know what customers think or maybe your scores aren’t worth bragging about? Then fix it and make service the priority it should be.

Manage customer expectations. We’ve all heard the phrase, ‘under-promise, over-deliver’ and it emphasizes the importance of expectations versus satisfaction. A customer’s satisfaction is the gap between what they expect and what they actually get. Avoid hype. If you make a client think you will do better or more than you can do, they will end up disappointed and unsatisfied!

Sweat the Small Stuff. Buying decisions are not always rational. To justify decisions, people look for differences between service providers. When significant differences are hard to find, prospects look to seemingly minor things. Are your business cards professional and free of smudges? Is your staff in uniforms or dressed professionally? Are your vehicles clean?

Be Grateful, Show It! The best way to nurture and keep customers is simple. Say thank you and say it often. Stay connected in a variety of ways. Make them feel wanted and appreciated!

Always Look for New Clients. If you have customers and are really busy serving them, it’s easy to become complacent. This is especially true for service companies with recurring revenue or those who work on larger jobs a few at a time such as contractors. Don’t do it. Keep your pipeline full. Unless it’s an emergency, people will wait to work with a company they really like or prefer!

Track What’s Important. While customer satisfaction is one metrics you can use to evaluate what’s important, it’s not the only one. For example, quality scores that reflect re-works or customer retention rates are effective ways to monitor your results. They can be shared in your marketing. Labor as a % of sales is also an important efficiency metrics in a service business. Pick a few that are relevant to your business. Track them and use them to make improvements. Where applicable, promote them in your marketing and sales efforts.

Service businesses are people businesses. The more you understand them, the more success you will have. So get to know your customers personally, understand what is important to them, and deliver what you promise consistently! It’s a recipe for success in all businesses, but critical when you sell intangibles!

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Customer Loyalty: 7 Secrets to Create Raving Fans

Posted on by Joan Nowak

“A business absolutely devoted to service will have only one worry about profits – they will be embarrassingly large.” Henry Ford’s words reinforce the importance of customer service, satisfaction, and customer loyalty in your business. So what are you doing to create raving fans – and why is this important?

Why Create Raving Fans?

Loyal customers spend more and buy more frequently.
Customer satisfaction is linked to customer retention.
It’s cheaper to retain profitable customers than acquire new ones.
Customers are willing to pay more when service is better than the competition.
Happy customers refer others, write reviews and sing your praises every chance they get.
Unhappy customers tell anyone who will listen about their negative experience – and social media makes this really easy!

7 Secrets to Improve Customer Service

Get Feedback. Encourage and welcome customer input about how you can improve. Provide a method and process to get constructive comments and suggestions. Customers can be your best advocate and your best source of learning. They are knowledgeable about competitors and what they do or don’t do well. Remember, you cannot fix or improve something if you don’t know it’s broken.

Treat Employees Well. Appreciation starts at the top. Your team will treat customers the way you treat your team. Do you greet them when they arrive? Do you thank them? Do you listen to their concerns and ideas? If you take care of your team, your team will take care of you.

Handle Customer Complaints. No matter how good you are, things can and will go wrong. Identify the source of the top 5-7 complaints, even if they only occur periodically. Then develop a procedure to handle them. Don’t forget to include guidelines and limits of authority so your people, who actually deal with customers, can resolve the majority of complaints without going to the boss! Keep in mind, complaints, if handled well, can actually build loyalty with customers.

Track and Reward Customer Satisfaction. If customer satisfaction is really a priority in your business, demonstrate this to your team and customers. Develop a method to measure it, set goals for improvement and reward the team when the goal is accomplished. Keep it simple.

And here’s another plus. If your documented customer satisfaction score is 95% or better, you now have a great message for use in marketing. It sure beats the ‘we deliver great service’ message so many businesses like to put out there.

Train Your Team. Customer service skills, like technical or sales skills, can be developed and improved with training. While most businesses train new employees, existing team members need ongoing training and development too. In addition to better service, employee training is linked to improved employee retention and satisfaction – a big benefit in a competitive labor market.

Document Your Critical Systems. Too often the source of dissatisfaction or perceived poor quality is tied to your processes. Take a look at your procedures, from initial customer contact through billing and collection. Document what gets done. I guarantee you will find gaps in consistency and opportunities for improvement. Systems put money on the bottom line by reducing re-works, returns or callbacks – a big satisfaction driver.

Set Expectations. In marketing and sales, a can-do attitude is important, but only if you can deliver what you promise each and every time. Set the right expectations with customers and work to make it happen consistently. Remember the old saying, better to under promise and over deliver!

Ready to Put Your Business on the Path to Success?

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

What Is Your Marketing Purpose?

Posted on by Joan Nowak

As a business owner, you have a lot of marketing choices. But what you choose and how you use them will ultimately drive success. While cost and ROI will always play a role in your marketing decisions, don’t overlook your marketing purpose and integration.

Marketing has many purposes. From creating awareness and building relationships to generating new sales or repeat business. Depending on your marketing purpose, some tools work better than others. And when you combine various tools, through integration, you have a better recipe for success.

Here are a few commonly used small business tools to demonstrate this point.

Social Media | Organic versus Paid

Social media platforms such as Facebook, Instagram and YouTube are popular with small businesses. They are good for sharing things that others want to re-share – and that’s the key. Photos, infographics, local events, helpful tips and good news posts can help you stay connected and reach some new people.

If you are using social media as a free or low-cost method to reach lots and lots of new customers, you may be disappointed. Most social platforms rely on ads or premium subscriptions for revenue, so your reach is limited (by design) unless you pay to boost the posts, display ads or sponsor messaging. Promotional messages and special offers need a boost to perform well. The good news – when done right, paid social media is an affordable, effective way to reach more of your targeted prospects.

Tip: When it comes to content and platforms, quality beats quantity every time. More is not always better. Choose the platforms that work best for your business then deliver quality information – stuff that is relevant to your customers.

Email Marketing | The Ultimate Stay Connected Tool

Your permission-based email list is an asset! It’s comprised of customers and prospects who said YES and want to hear from you. So, it’s a great tool for staying connected and building relationships that may create sales now or in the future.

Email marketing is flexible and affordable. With a variety of platforms like Constant Contact, Mail Chimp, and iContact, it’s also easy to keep your name and message in front of potential buyers. For helpful tips, check out my article, 7 Ways to Build Relationships with Email Marketing.

While consistency and good content are important, the size and quality of your list is a key to success. The bigger the list, the better the opportunity. So, put a lot of effort into building your list.

Use your website, social media, and sales or service teams to help grow your list. Give customers and prospects a reason and make it easy for them to say yes. Then deliver what you promise – relevant information.

Website | For Questions and Information

Good marketing gets attention and creates interest. But it hardly ever provides all the information someone needs to make a decision. So where do people go to get more information? Some may call but most will go to your website.

SEO and other marketing will certainly drive people to your site. So about us, services and contact information are helpful and expected. But you may be missing opportunities if you rely on these alone.

Blogs can answer common questions, provide updates and deliver relevant information. Frequently Asked Questions – with simple answers – can also do the trick. Case studies and white papers allow you to demonstrate your expertise with problem-solution type information. Testimonials, online reviews, and certifications can offer proof of expertise.

Is your website the go-to place for questions or information prospects need? Here’s what you should consider:

What questions do prospects commonly ask during the sales process? Write them down and create clear (brief) answers.
What is the best way to share this information? Would a page with FAQ’s do the trick or should you create a blog post (or series of them) to answer the questions?
Do customers look for proof of your expertise? If so, case studies, white papers, testimonials, online reviews, and certifications can help you deliver. Make it easy for customers to find them.

Direct Mail | The Forgotten Tool

With so much emphasis on digital marketing, direct mail is almost an afterthought. When used with other tools, digital or media, direct mail helps reach new customers. It can be highly targeted and there’s a lot less direct mail competition today.

Whether you want to drive people to your website to learn more or call to schedule an appointment or get a quote, direct mail can deliver more bang for your buck when used with other tools. To get more customers, check out the article, 10 Direct Mail Tips.

A Final Thought

To get more sales and profit from your marketing efforts, build a plan with purpose and integration in mind.

It all starts with your marketing goals. Ideally, your marketing should accomplish three things: generate new leads, nurture unconverted leads in your pipeline and create repeat business from customers. Budget funds to do all three – with consistency. Then, choose the right tools to support each purpose.

Ready to Put Your Business on the Path to Success?

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

Customer Investments – How To Do It Right

Posted on by Joan Nowak

Make Your Customer Investments Pay Off

Your customers are your source of revenue, so it makes sense to invest money into them. But before you put a plan in place to attract, convert and retain customers, here are a few things you should consider to make your customer investments payoff.

#1 – Look Beyond Satisfaction

Customer satisfaction is certainly an indicator of customer repurchase intentions. Improvements can reduce churn and create new business through referrals. So, it makes sense that businesses invest in this area. But even satisfied customers are not created equal as it relates to profitability. Understand why customers are satisfied. Some factors that impact both satisfaction and profitability include brands, products/services, buying experience, differentiation – and of course, price.

Satisfaction and profitability are not mutually exclusive. If a customer is only satisfied when you give them special deals, do you want them? What about those who pay full price but demand so much that they offset the revenue they provide? Some customers simply can’t be profitably satisfied. So why make the investment in them? Invest resources in your profitable customers.

#2 – Focus on the Lifetime Value of the Customer

How much you invest to acquire a new customer or retain them will vary. But you need to think beyond the most recent or first transaction. Consider instead what you expect to earn from customers on an ongoing basis.

This long-term view considers what products or services they buy, how often and for how long. Seek to understand your customers’ value. When you do, you can look for ways to improve it and decide how much you will spend to acquire and retain customers.

Related: What Are Your Customers Worth

#3 – Budget and Plan for Retention Too

Marketing costs are typically focused on new business generation efforts. While important, a portion of your marketing budget should be allocated toward nurturing and retaining customers. When you consider lifetime value, it’s a good decision. Bonus: It’s a lot cheaper to retain a customer than to acquire a new one!

Imagine if you took 10% of your marketing budget and used it for engagement and retention? Depending on your industry, these areas come to mind: service, support, and account management. But extra touches and thoughtful gestures are equally important.

How are you going to keep your customers engaged? This is where the plan comes in. Create a variety of retention strategies or tactics to implement throughout the year. How often you do it will likely depend on your industry and clients. Get creative. Stand out. Here are a few ideas to get you thinking….

Pick up the phone and check in with a customer. Lunch, golf or coffee optional.
Create a blog to educate and empower customers.
Remember special occasions with birthday or holiday cards. It’s the thought that counts.
Turn fast service into quality and complete service. Customers will view you as courteous and helpful.
Email special offers just for customers. It’s not special if everyone gets it!
Surprise them! Little, kind gestures make an impact. A client left a Hershey kiss with their invoice. Low cost, but memorable.
Send postcards for reminders. With so much emphasis on email and text, snail mail gets noticed.
Say thank you with a personal, handwritten note.
Build a social community online. Choose the platform that is best for your business and customers.
Use white papers and eBook guides to demonstrate expertise. Be a resource for your customers.

Remember, nothing happens until you take action. So, decide what you will do and how often you will do it. Then, schedule it so it gets done!

#4 – Track Retention Rate Over Time

What we measure we can celebrate or improve! Do you want to know if your customer investments are paying off? Your customer retention rate, over time, will tell you that.

You can calculate the retention rate for any period you choose: weekly, monthly, quarterly or something else that is relevant to you. Pay attention to the trends over time! To calculate, you need to know the following:

Retention Rate Formula: ((C_E-C_N)/C_S)) X 100

CS – number of customers at the start of period
CN – number of new customers during the period
CE – number of customers at the end of period

Let’s do the math with a simple example.

You started the first quarter (January 1) with 200 customers [CS]

You ended the first quarter (March 31) with 250 customers [CE]

During the first quarter (Jan 1 – Mar 31) you acquired 65 new customers [CN]

Let’s plug them into the formula: ((C_E-C_N)/C_S)) X 100

250 – 65 = 185; 185/200 = .925; .925 x 100 = 92.5

Your retention rate for the period is 92.5%

#5 – Monitor Satisfaction

If you spend money to acquire and keep customers, it makes sense to get feedback and monitor customer satisfaction. Surveys allow you to do this. When done right, they help you quantify the quality in your business – and support your investments.

When done by phone, they allow you to stay in contact with customers, identify and fix mistakes, identify possible problems (before they become major issues) and request testimonials, reviews, and referrals. Remember to apply item #1 above when you consider changes or improvements in your business – rely on feedback from ideal, profitable customers!

Customer acquisition and retention are important for any business. Planning how you will do both will save you time and money. Incorporating the five items above will help you make better decisions.

More Business Improvement Ideas

Leverage | Get More With Less

Posted on by Joan Nowak

In simple terms, leverage means using resources to maximum advantage. In business, these resources include your time, effort, money, knowledge and people. With leverage, you increase your ability to do more with less.

You work smarter, not harder. You get more sales at lower costs. And increase profit through efficiency. Your people work together and enjoy the relationships that come from teamwork. You deliver what you promise so customers keep coming back.

It’s a win-win for you, your people and your customers.

4 Ways to Create Leverage In Your Business

Time | Focus on What Matters

How much time do you spend on activities that create value? By value, I mean tasks that directly produce sales, grow profit, improve service and delivery or help others do these things.

Take some time to analyze how you spend your time. Then focus on the critical tasks while eliminating, delegating or outsourcing others.

Here are a few things that will help you do this:

Have goals and an action plan. Without goals, everything seems important.
Tap into technology. Your calendar and to-do list are as close as your phone.
Schedule time beyond meetings. Important tasks should be scheduled too.
Turn off distractions. Your phone, email, and people. Interruptions are time killers.

Sales | More Customers With Less Effort

When it comes to maximizing revenue, your marketing and sales channels can go a long way toward improving this area.

Good marketing with clear messages and targets can help you attract quality prospects. Why chase after the wrong people and waste a lot of time trying to convert them? Combine this with a great sales management system – and you get more customers with a lot less effort.

Next, think about sales channels. You can personally sell to individual prospects in a traditional one-to-one manner. You can grow exponentially faster by selling online, but this model doesn’t work for all businesses. So why not build a network of people who sell to the same people you do. Then let them do the work and pay them a fee for the sales they generate. You both win. Again, you get a lot more sales with a lot less effort.

People | Help Them Be the Best They Can Be

Your people may be your most valuable asset, but only if you leverage their skills and capabilities.

It starts when you hire and bring them on board. Invest the time to find the right people to join your company – even when you feel rushed to get someone in there. But even the most skilled individuals need time to learn and understand YOUR business. Orientation and training is critical to get them off the ground running and contributing. Especially today, new hires want to feel that they are making a difference or they won’t stick around.

If you have low employee turnover and long-tenured team members, hiring may not be a priority. But you should still look for ways to leverage your people. Are you maximizing their skills and providing new challenges and opportunities?

As your business grows and technology changes, job responsibilities will also change. When was the last time you looked at your organization structure, positions, and job descriptions? Are they still relevant? Do your people have the skills and knowledge to take on additional or different work? This is an area often overlooked. But it can improve work flow processes and keep your team engaged and challenged.

Effort | It’s All About Systems

Regardless of industry, every business has key processes to develop products and services, build demand, satisfy demand and manage the business. These include common functions such as marketing, sales, customer service, manufacturing, shipping, service delivery, technology, human resources, finance and strategic planning.

A lot of tasks! But the more efficiently you operate, the more profitable you become. You can leverage all areas of the business when you ask the right questions, focus on continuous improvement and take advantage of technology and people. You can take it a step further when you look for others/partners to help you grow without doing the work!

When you master the leverage game, you get more of what you want with a lot less effort. Pick one of the areas above to focus on and get started.

Leverage Your Business With Systems

If you are serious about creating leverage with systems, check out my Ultimate Systems and Procedures Guide. Designed specifically for small business owners, my step-by-step guide with templates and examples makes it easy to do it yourself.

Prefer to work directly with me — to build systems and a whole lot more profit in your small business? Then let’s explore the possibilities with a complimentary consultation. Call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

6 Ways to Put More Profit on the Bottom Line

Posted on by Joan Nowak

In the quest to get more customers and grow sales, many small businesses lose focus on something that is vitally important – Profit! Profit is your reward for excellence in entrepreneurship. So whether you are just getting started or well established, here are some ways to help you put more profit on the bottom line and in your wallet.

Be Different & Compelling

Too often small businesses do what everyone else is doing. They tell customers what they do and just compete on price. If you want to avoid this trap (and you should), start talking benefits not features.

Customers today have many choices, so give them a reason to choose you over others. What makes you and your business compelling and different? Now different doesn’t need to be unique to you and you alone. It simply needs to be something you do very well that you can promote or guarantee – at every opportunity in all your marketing! It’s easier than you think; but if you are not sure, start by asking your customers. When you stop competing on price, you’ll earn more and create profitable growth in your business.

Avoid Trying to Serve Everyone

Who are your ideal customers – those who value what you provide, at the level you provide it and at the price you charge? These are the customers who are happy to work with you, rave about you and often refer others. It shouldn’t be everyone.

Don’t spend a lot of time and energy trying to satisfy everyone or you end up serving few people well. It hurts your reputation and definitely impacts your profit. So nail down your ideal customers, learn more about their needs and build your business around them. What products or services do they need? What are some of the challenges they face? What level of service, payment options, and availability do they expect?

Once you are clear on this, attracting more of them is much easier – and profitable. So be willing to think smaller to grow bigger! You’ll not only make more money, but you will enjoy your customers a whole lot more.

Plan Your Growth

Build your reputation on your core products and services before you start jumping into new areas and new products. More is not always better. Stick with what you do well, build your reputation on it and only expand when you have the resources and ability to deliver what you promise and do it profitably. Don’t let unprofitable growth erode the profits in your small business.

Get the Right People To Grow

At some point, you may need to add people or replace someone who is leaving. Many small businesses are quick to hire and slow to fire. And it comes at a cost – profit and productivity. Before you rush out and hire or replace someone, stop and build a case for your decision. Here are a few things to consider.

Do you need someone onsite or virtual?
Can you use a sub-contractor or do you need an employee?
Do you need someone full or part-time?
Can you promote or expand the responsibilities for an existing employee to fill the need — instead of hiring?
Can you restructure the company and job responsibilities (and eliminate redundancy) to avoid bringing in additional help?

Explore all your options, look at the costs and benefits associated with them, and then make the decision. Remember, people are an investment in your business. Whether you hire, use a sub-contractor or work with someone virtual, use a system – don’t just wing it.

Know the Numbers

You can’t manage what you don’t measure and what you measure you can improve. Successful owners of all sizes track and monitor what is important to them and their business. What numbers should you track to measure your progress and success? While they vary by business, some common measures include sales, gross profit margins, break even, number of leads, sales conversion rates, average sales dollar per customer and net profit.

Knowing where you are today can help you make better decisions and prioritize what needs to be improved. Do you know how much profit you make from each of your products or services? Or which customers are profitable? If you knew this information, would it change what you market and who you target? The answer is likely YES!

Learn to Love Systems

Finally, learn to love systems. Many small businesses have no documented procedures of how they do what they do. As a result, there is little consistency – a key to productivity, efficiency, customer satisfaction, and profitability. Many assume only big businesses need systems; and say things like, “We’re small, we talk to each other, and we all know what needs to be done”.

Maybe this is true when you first get started and it’s just you. But what happens when you grow and suddenly you are serving more people, or bringing in new staff? What happens when people leave and take the knowledge with them? If you want a business that provides consistent service with less effort and more profits, then make systems a priority in your business. For additional help with systems and procedures, check out my Ultimate Systems and Procedures Guide for Small Businesses.

So whether your business is well established or relatively new, you can make it a success if you focus on creating uniqueness and niche your business, plan your growth, know your numbers and always look for ways to systematize your business. The payoff will be there on the bottom line!

Ready to Put Your Business on the Path to Success?

Would working with a business coach help you take your business to a whole new level? Then let’s explore the possibilities with a complimentary consultation. It’s a chance to get to know each other, discuss your goals and the obstacles that hold you back. Together we can determine if there is a good fit between your needs and my services.

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com