One client of ours is so busy ith word of mouth referrals, he still doesn’t recognise the full potential of his website as a marketing tool. Though, unlike many small business operators, he does understand the need to be proactive in his marketing
How come, (you’re asking) is it that he’s so busy? Simply because he does what all small businesses should do! He looks after his clients. He sends them postcards, or just a friendly email every so often. Or he might buy a beautiful gift basket.
Think about this: He was telling me how small business owners complain about the cost of marketing and advertising, and often that’s because they spend their money in the wrong places.
How would you feel if a $115 bunch of flowers generated a $4000 sale? That’s exactly what happened to him: he bought a bunch of flowers and had them sent to a client recently. The client’s response was to place an order with him, that resulted in a sale and an easy $4000 in commission.
Or you could take the approach of one of the local DVD rental stores. The new owner (we’ll call him Dave) is trying to build up his customer base. One of their customers (we’ll call him Bob) have been members of that store for some time, and welcomed the change of ownership.
The store promotes hiring 7 x “weekly” DVDs for $10. Simple enough, you would think. You select seven DVDs that you can hire for a week, for $10. So Bob selects some “weekly” DVDs, only to be told that they are “New Release Weekly” DVDs and Bob has to pay more.
“But how many days are in a week?” Bob asks. “Seven”, was the reply. So why aren’t you charging us the $10 ?
“Well, they aren’t weekly DVDs, they are New Release Weekly DVDs”
“Oh, so weekly DVDs are not the same as New Release Weekly DVDs?”
Okay, so Bob may have had a misunderstanding based on poor advertising by Dave. It’s only a difference of three dollars (for that one sale). However, the attitude of Dave was one of indignation, that Bob was stupid, and because it was Bob’s mistake Bob would certainly be paying for it.
Dave didn’t consider that Bob can choose which store he can rent DVDs from, and why does he need to be insulted at this store, when Bob can go to another store and be treated with respect. The obvious gesture would have been for Dave not to worry about the three dollars, and retain a happy customer.
What Dave achieved was the three dollar sale, and NO MORE ever, from one customer. Dave’s not a bookkeeper, and maybe he doesn’t rely on bookkeeping when running his business week to week.
Because as bookkeepers, we would tell Dave that what he didn’t consider, was the fact that Bob was not a three dollar customer, Bob is a $500 customer (annually). If you’re not sure about this concept contact us for more information.
If the DVD store owner did that with 10 customers, he’s lost $5000 annual turnover - But Dave’s made the extra $30, and been able to make his point.
Well done Dave! Will you still be in business in twelve months time? Or will you realize how much a three dollar customer is worth?
How Much Is A Three Dollar Customer Worth - To learn more about this author, visit John Stewart's Website.
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Leanne Hoagland-Smith
Are your sales where you want them to be? Will you be one of the few who achieves sales success or one of the many who have failed to change? So what are you doing to change those results? Let’s be honest, with companies moving globally and at lightening speeds, the traditional business solutions are outdated and dead. My approach moves your business out of its comfort zone and secures your competitive advantage now. If you are seeking to increase sales, build customer loyalty, create a culture of great attitudes or just achieve some sleep filled nights, then we should talk because my clients have experienced exactly those types of results. Learn more about customer loyalty at http://www.processspecialist.com/customer-loyalty.htm Give me a call at 219.759.5601 for a free strategy session. P.S. If you are seeking a motivational speaker, sales trainer or small business expert that will leave your audience smiling and remembering, please feel free to contact me at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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John Stewart
(Visit John's Website)
John Stewart has been helping small
business owners keep track of their
finances for a number of years. As manager
of a bookkeeping business, John
understands that smart business owners
keep their finger on the pulse of their
business - cash. Your accountant normally
sees figures that are over twelve months
old Bookkeeping should be an essential
investment in your business. For more
articles about bookkeeping see his website
www.yo2go.com<
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