I really like this Blog post that Ray Edwards sent me. He has given me permission to share it with you, so I hope you enjoy it.
I hope it will make you think a bit about how you live your life and how you run your business. Dwight “Honesty in little things is no little thing.” – Anonymous On August 1, 2007, the westbound bridge over the Mississippi River in Minneapolis on Interstate 35 collapsed under the weight of the evening rush hour traffic, killing 13 and injuring 145. This tragedy occurred due to a flaw in the bridge’s design. Other bridges have failed for a variety of other reasons. When we speak of a bridge’s ability to bear up under weight and weather storms, we refer to its “integrity.” In terms of the integrity of a bridge, three primary factors come to mind:
This article is not about the integrity of bridges, but about our integrity. A bridge simply offers a good analogy. With that in mind, we could ask the same questions of ourselves and our businesses. Let’s look at each of these questions and warning signs that our integrity is in jeopardy: 1. Are we safe? That is, do others perceive us as safe? Zig Ziglar said, “With integrity, you have nothing to fear, since you have nothing to hide. With integrity, you will do the right thing, so you will have no guilt.” It is also true that when we have integrity, others—our customers, our employees, our colleagues—have nothing to fear. They know we’ll do the right thing. They’re not afraid that we’ll take advantage of them. Integrity is consistency of character. There’s a common perception around integrity that we should “let our conscience be our guide.” The problem is that our conscience is not infallible. We can distort and damage our conscience through rationalization, compromise, bad counsel, and poor habits. That’s why, when someone builds a bridge, someone other than the builder must inspect it. To ensure that our conscience is properly calibrated and conditioned, we need outside feedback. We need a standard beyond ourselves. Joyce Meyer said it well, “Integrity means that you are the same in public as you are in private.” If this is not true of us, then it serves as a warning. Integrity is chiefly a heart issue, which then expresses itself in our attitudes and behaviors. Integrity must either find footing in the core of our being, or the foundation of our personal life and business will be flimsy and faulty. 2. Are we functional? Bridges open new opportunities for commerce and travel. Bridges make things possible that would not have otherwise been feasible. To what extent does our business fulfill a worthwhile, valuable purpose for others? This might seem like a “no-brainer” question, but many businesses that begin right, devolve into something more self-serving than providing a needed product or service for others. Scott Hamilton said, “The high road is always respected. Honesty and integrity are always rewarded.” People do business with those they know, like and trust. Build your business with integrity that people will come to rely on. Integrity always has others in the forefront of its motives and actions. We must ensure that our business is designed around our customers rather than what’s most comfortable for us and we must provide them real, tangible value. 3. Are we aesthetically pleasing? The aesthetic side of integrity seems the least important. After all, “appearances are deceiving.” But that’s exactly the point. We DO pay attention to the way things look; the way they appear. If a bridge doesn’t look safe, we will avoid it. If you’ve ever crossed a rope bridge suspended over a deep ravine or river you know what I mean. But there’s more to the aesthetic side of bridges—and integrity. In one sense, it doesn’t matter what a bridge looks like as long as it is safe and transports us from one place to the next. We could say the same for our business. But then there are bridges that are truly beautiful. Their design exudes safety and security. We’re drawn to the beauty of their structure and may even visit them for no other reason than to cross the bridge. The Golden Gate Bridge and the London Bridge both come to mind as examples. The aesthetic side of integrity is what people see and experience when they do business with us. We may have a great product or service to offer, but what is the customer experience when dealing with us? Hopefully, they are pleased and tell others what a great company we are to do business with. Integrity involves more than telling the truth. Integrity is consistency of character, built on a firm foundation beyond ourselves. Our integrity will express itself in ways that make people feel safe and cared for. Integrity adorns our business as a thing of beauty.
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Every organization needs a way to determine if they are successful. What is the best way to accomplish that? Traditional financial reporting may not be the best indicator. What else should be included and how should they be used?
Years ago I was part of a re-engineering effort that reduced our average order processing cycle time from 30 to 3 days. It was an exciting project and as part of the effort, we began to take a hard look at what we measured, why we measured it and how we measured it. The maxim adopted was “what gets measured gets done” and it was true. We had always reported on the number of transactions received and processed and we managed to the lowest possible cost per transaction, but we never measured the speed of our process. What good is it to process something really cheap if the customer can’t get it when they want it! While we were shocked at the initial findings it was not long before we discovered ways to improve the process. Over the course of a year, a complete transformation took place. We reduced both cycle time and total cost per transaction. Thrilled with the success we had experienced, we adopted a dashboard of measures that we monitored regularly. Our thought was that, like the dashboard in our cars, as long as the gauges point the right direction, all should be well. I decided to take that concept further and developed additional measures that would logically feed the primary dashboard. I finally had tight control of the process! Unfortunately it did not work. Invariably something would pop up to create a problem. The solution? You guessed it… create more controls! So the dashboard began to grow until I finally had literally hundreds of metrics in place dedicated to control every conceivable issue. Since many of these measures could not be reported on through a system query, we had manual tally sheets, surveys and stand alone databases created to capture the information. Even though I had invested hundreds of hours to establish this “bomb proof” system, I was not satisfied. No matter how hard I tried, my measures based system fell short of being ideal. Instead of realizing continued improvement and innovation, the staff became stifled by the quagmire of reports. Several years later my family started a whitewater rafting company offering tours on the Arkansas River. Safety was obviously a big concern and so I went to great lengths and spent quite a bit of money to ensure that all of our equipment and vehicles were in excellent shape before launching our first trip each year. About midway through one season my wife informed me that our shuttle van was having problems. She guessed that it was the transmission. We immediately took it into the shop to have it examined. Thankfully the shop told us that it was not the transmission and that all we needed was a simple adjustment. However, as they got into the engine they noticed a few metal shavings which led to further investigation and ultimately to the conclusion that indeed my wife had been right. The transmission was the problem, in fact, it needed to be replaced. Rats! How could this be? The transmission had just been replaced two seasons earlier by the previous owner. It had scarcely been used for two years. What about the preseason inspection? I don’t remember seeing one light go off on the dashboard. There was no warning except what my wife heard and felt as she drove the vehicle. As I was thinking about how expensive this was going to be and what I could have done to prevent this, the awful thought occurred to me, Dashboards Are Useless! My dashboards, whether in the vehicle or at work simply did not deliver the results that I expected. Had we waited for dashboard indicator lights to go off before taking action we would have undoubtedly been stranded along Highway 50 with a van full of frustrated customers. Thankfully, my wife took active steps to resolve the problem. This experience has caused me to take a step back and reconsider my approach. As I have pondered the dashboard concept I have come to the following conclusions. 1. Dashboards are useless: If they don’t measure the right thing. The primary purpose of an automobile is to provide transportation. One of the essential ingredients to successfully accomplish that objective is gasoline. It would be absurd for a car manufacturer to engineer a diagnostic to capture transmission problems and then omit a simple gas gauge. What is your primary purpose or the reason for your organization's existence? What are the objectives that you have established to accomplish that purpose? Design your measures and dashboard around those objectives. 2. Dashboards are useless: When any single gauge is used exclusively. While a gas gauge is helpful, if it were the only gauge ever used, you would experience problems. The same thing is true in organizations. At one point our inventory department was measured exclusively on the number of turns they accomplished. They were successful in increasing turns by decreasing the inventory on hand. Unfortunately customer service suffered, back-orders increased, staffing requirements increased in the warehouse and accounts payable. A single gauge does not capture all the dynamics that contribute to it. Furthermore if each department were to use a single gauge they could all appear to have excellent performance and yet the customer might be very dissatisfied. 3. Dashboards are useless: If the gauges don’t work properly (inaccurate) Nothing is more annoying than gauges that don’t work. Our family mini-van’s dashboard occasionally goes berserk with every single light turning on for about 3 seconds and then turning off. We have taken it to the shop 4-5 times and they have tried everything they can think of to fix this problem, to no avail. The mechanics tell us everything else is fine and we haven’t experienced any other problems so now we just try to ignore it. If organizational metrics are not accurate, and if people do not trust them, then they will be ignored. But what can be dangerous are the generally accepted reports that are not accurate but get used to make decisions every day. 4. Dashboards are useless: If you ignore them. When my brother was a teenager he borrowed a car from my dad. On the way to a special event the oil light came on. He kept driving. Within an hour the engine light went on. He kept driving. A few minutes later smoke started coming out of the engine. He kept driving. Eventually the engine burned out and the car came to a stop. He couldn’t understand why he wasn’t still driving. Needless to say, my dad was not pleased with the event. “Why didn’t you pull over when the light came on?” My brother responded, “I didn’t think it could be that bad, after all I know how well you take care of your vehicles. What could possibly be wrong with it?” Rarely do organizations find themselves in serious trouble overnight. The indicators are usually there months if not years in advance. Often times a department will act like my brother, assuming that it’s not that bad, or that someone else will take care of it. Don’t create measures if you aren’t going to use them! It may not be comfortable dealing with negative indicators along the way but it certainly beats losing your job, or going out of business. 5. Dashboards are useless: If they are expected to be the end all in performance management. I don’t expect my cars dashboard to tell me absolutely everything I need to know to keep it in good condition. I can see when the windshield wiper needs to be replaced. I can hear when the engine needs a tune up. I can feel when the alignment needs to be adjusted. I can smell if the brakes are getting too hot. For a vehicle to operate smoothly it requires a combination of regular maintenance, response to dashboard indicators and response to other problems that are sensed. Conclusion: Company dashboards are only one component of assessing overall performance. The role of the manager is strategic because they handle the day to day operations. Given clear direction they can sense things and make adjustments long before they show up on the dashboard. Good managers are unsung heroes, because much of what they do goes unnoticed, like cost avoidance, employee development and proactive planning. They constantly make changes to keep the gauges steady. On the other hand poor managers wait until the crisis occurs and then claim a great victory after they fix it. In summation, organizations need to define their purpose and set specific objectives. Don’t throw out the measures, but avoid the five pitfalls described above. In addition, include regular organizational tune ups, and most importantly hire competent managers who will instinctively make the right decisions at the right time.
Whether you are attending a networking event, pitching investors for funding, or meeting your future mother-in-law for the first time your non-verbal communication will speak volumes. You will certainly want to understand the importance of body language when forming first impressions. It’s been proposed that it only takes 7 seconds to make a great first impression. A lot of the things that influence and signal a great first impression during these 7 seconds are your non-verbal cues.
Non-verbal communication has been in practice for thousands of years and will likely never be fully replaced by the spoken word. Body language can be used to convey a message by itself or support what’s being said verbally. Both in business and in life, you will need to have the skills to communicate effectively. These non-verbal signals can become magnified during networking events and include:
See if you can guess what fast food restaurant I’m visiting based on the following dialogue.
A clean cut team member approaches my table and says “may I top off your soda” I respond “Sure thanks” He takes my cup and and is back in a flash. I respond “Thanks” He responds “It’s my pleasure” with a big smile and moves on to help the next customer. If you guessed Chick-fil-A then you are correct! For a company that relies heavily on a teenage workforce they have done an outstanding job of training their staff to be courteous, helpful and to use good old fashioned manners. A while back on a very snowy evening my wife and I decided to swing in to get a chicken sandwich and as we sat down I became particularly impressed with one of the staff and pointed her out to my wife. She seemed to glide from one section to another effortlessly keeping tables clean and topping off beverages. How could she be everywhere at once and not even seem rushed? While we were watching she dashed outside. “Where is she going”? I asked my wife. A minute later I see her at a car brushing snow off of the windshield. “Look at that, she doesn’t even have a coat on” Next thing I know she is escorting two ladies to the car she had cleaned and then back into the building to work on tables. My wife and I look at each other and say to each other, “that’s crazy, what just happened”? I flag down this girl because I had a question. She came over and I ask “Since when does Chick-fil-A provide snow removal service”? “Oh” she said blushing, and then proceeded to explain that these ladies came from the airport and that the car they had rented did not have a snow brush. “So, I decided to run out to my car real quick and grab my brush to clear the snow for these women.” Spectacular! I told this girl that I was impressed by her heart for customer service and encouraged her to keep up the good work. I believe this young lady has a bright future ahead! Now compare that to our experience at Pizza Hut. My family loves pizza and we were hungry and looking forward to our Cheese Lovers Pizza. When the Pizza arrived there was just one thing wrong. No Cheese. “Where’s the cheese” we all said in unison? We discussed it with the waitress and she agreed that it looked pretty skimpy and so she talked to the manager. When she returned we were informed that the manager had measured it herself and that it was correct. I poke around the pizza thinking that perhaps they hid it. Where did they hide the cheese? Under the pepperoni? Nope! Maybe they put it inside the crust? Nope! Did it slide to one side? Nope! The Manager finally comes over, with a measuring cup in her hand and proceeds to tell us about their production process and how they measure out the cheese to exact specifications. Needless to say, we were not happy. My wife was upset because she felt we were getting ripped off and the pizza doesn’t taste as good without cheese. The kids were upset because mom and dad were making a scene and why can’t we just eat the pizza and leave. I was upset because I couldn’t believe something this simple couldn’t just be resolved by adding a bit of cheese. No matter what, that manager was not going to budge, and so for over 25 years we have told this story hundreds of times and to this day my wife refuses to eat at a Pizza Hut. Wow! What a stark contrast between these two experiences. Isn’t is amazing the difference one person can make? Here are a few more questions: Do you know what your customers expect? What impact does your staff have on the organization's reputation? How do you make sure you are hiring the right staff to begin with? How much time and effort goes into your onboarding process and ongoing staff development? Do you know what the lifetime value of a customer is? I’d love to hear your thoughts! Dwight I remember when Facebook first enabled the ability to create a business fan page. My family and I had started a whitewater rafting business and together with a small band of college kids we had a lot of fun taking families on adventures down the Arkansas River.
One day I get a call from my wife and she says “Hey, the guides tell me that we can create a fan page on Facebook. Should we do it?” I asked a few questions and said “sure why not.” By the time I got back up to the river the team had created the page and we already had a few likes. In a couple of weeks we had over 300 fans and I became captivated by the possibilities that Facebook offered the motivated business person. I was hooked on Facebook and talked about it all the time. Back then we could make a post in the newsfeed and most of our fans would actually see it. Over time and with the cataclysmic growth in popularity the Facebook newsfeed has become so crowded that only a small percent of fans ever see the post. This trend led marketers to advocate more frequent posts, articles, memes, blogs, videos. Basically anything that would help to create community and engagement with your base. The number of posts recommended went from a few times per week to some recommending 10 posts or more per day. This compounded the problems of an already crowded newsfeed and forced many to move to paid advertising. The pay to play model was adopted by some but was still difficult to sell. After all, Facebook was supposed to be a free source of leads right? Fast forward to a couple of weeks ago when an announcement was made that rocked the status quo of Facebook marketing. Essentially, Mark Zuckerberg gave direction to his team to switch from helping people find content on Facebook to only presenting items in the newsfeed that involved meaningful conversation. To get a good idea of what the impact will be I need to refer you to Michael Stelzner founder of Social Media Examiner and his recent blog post. Here is what he had to say: At Social Media Examiner, we want to help you understand what's happening and how to revamp your strategies so that Facebook will continue to be a viable marketing channel. Here's a quick summary of what's going to change: #1: Less public content will be shown (videos and posts from publishers or businesses). #2: Reach, video watch time, and referral traffic from Pages will decrease. #3: Posts will be ranked differently, giving priority to "posts that spark conversations and meaningful interactions between people," according to Facebook. Here are six things you can do now to improve your chances with Facebook: Suggestion #1: Post less frequently (I know that's gonna be hard, but it's necessary). Suggestion #2: Create content that stimulates conversation--meaning comments between fans. Suggestion #3: Jump into live video, now! Why? It leads to 6x the interactions according to Facebook. Suggestion #4: Don't ask for comments in your posts. Engagement bait will be demoted in the News Feed. Suggestion #5: Master Facebook ads. This will be the only sure-fire way to drive people to your site. Suggestion #6: Learn Messenger Chatbots. Bots will allow you to nurture leads and sell. This will likely require a shift in your Facebook marketing strategy. And you'll probably have to learn some new tools to carry it out (like bots, ads, or live video). MORE... Well, here’s to more change, as if things weren’t changing fast enough. If you’re interested in more information you can click on the more button to dive into the details on what will be rolling out in the months ahead. If you need help navigating these changes you can contact me here. A couple of years ago I started Forward One Business Coaching with the desire to help small business owners accomplish their objectives. I hired my own coach, invested in a system/licensed content and started full steam ahead.
As I talked with business leaders I found that they really wanted more help than coaches were providing. Practical implementation, not just exercises and assignments. Here are a few examples of comments I hear from business owners:
The question I wrestled with, was, what I am I doing that’s any different from other coaches. 6 months passed and I realized I needed to make some changes. I seemed to be failing as a coach but didn’t know why. After discussing it with my coach we agreed that the system and approach I was using simply wasn’t working for me and I decided to make a course correction. Here are the changes I made and the 3 reasons why you may want to work with a Consulcoach. Hands On (as needed) Everyone knows that the coach is supposed to stay on the sidelines not get in the game themselves. Many of my clients however, need more capacity. So, I decided to roll up my sleeves and offer to jump in and help. While it takes more of my time and causes my business to be less scalable, my clients appreciate it and I am having a blast. If you want the best of consulting, coaching & contract help then it’s time to consider a Consulcoach. Charge Less I reduced my rates to be more accessible to smaller business owners and those who can not afford big consulting fees or monthly premiums. Most Coaches position themselves as a high value investment and are experts at promoting themselves. That’s why they can charge $3-5k/mo and get people to pay it. I’ve never been as good at self promotion but thought that if I charge a fair monthly rate It would give me the opportunity to work with great leaders that I really enjoy working with and not have to chase the money. I get an invisible paycheck as we are successful together. That means more to me than money in the bank.. Invested In the Organization Coaches seem to be able to to separate themselves from the outcome of the businesses they serve. By providing the expertise and coaching it is the client's responsibility to deliver the results. If it doesn't work out, they simply add another client. Because I can only work with a few leaders at a time I become much more involved in the business and it’s success. If things are not going according to plan I feel the organization's pain. Yet, since I’m not employed by the company, I can maintain a clear mind and keep things moving in the right direction. Good Fit Let me ask you a few questions:
I you answered yes to any of these questions then you will probably benefit from Cosulcoaching. I’d be happy to meet with you to learn more about your business and determine if we could benefit working together. To schedule an online appointment you may do that here. I was talking with my daughter and her friend over Thanksgiving about social media and how they use it. I mentioned Snapchat and my daughter acted very surprised "dad, do you even know how to use it"? "Of course" I replied. I've posted at least 3 or 4 times! They laughed and we started talking about all the cool things you can do with it. I like the idea of pictures and messages disappearing in a short period of time. It seemed like that provided a safer experience.
Then on Monday I read this article by Rachel Layne about the dangerous assumptions that people are making. So I decided to share it with you here: Beware the Lasting Impression of a "Temporary" Selfie Think that probably inappropriate Snapchat selfie is safe from leaking into your professional life because it disappears? Think again. Features on some communication apps like Snapchat and Instagram Stories allow you to share your images and messages with the comfort of knowing that they will disappear quickly from the public eye after having been seen by the intended recipients or after a short period of time. Disappearing selfies are seemingly the ideal solution for people who enjoy life on social media but who are also keenly aware that 93 percent of job recruiters check social channels before hiring candidates. “These temporary-sharing technologies…are supposed to solve this problem of the internet never forgetting,” says Leslie K. John, the Marvin Bower Associate Professor at Harvard Business School, who co-authored a new paper on social sharing. Yet they’re not the cure-all that we want them to be. "That’s because the impression that a temporarily shared selfie makes does not disappear when the [photo] disappears.” In other words, some things once seen are difficult to unsee. What’s more, the researchers discovered, through its impermanence, the technology encourages people to take more risks when they decide to post. So the impression from those posts can linger.... I saw this great blog from Perry Leon from Active Campaign and thought I would share it here. Also, if you're interested here is a link to a platform that can help you manage your social media and reputation. Go here
A few years back I was managing 20+ automotive dealers online reputation across more than 15 review sites. This was quite the undertaking, but it was paramount to the success of the dealerships. According to Search Engine Land:
In order to be proactive with consumer reviews you must develop an online reputation strategy. A couple of weeks ago I was Mountain Biking and had to pass through a large tunnel on my route. It was an abandoned dirt road and about half way into the tunnel I realized that I could not see a thing in front of me. I slowed down since I couldn't tell whether there were pot holes or other obstacles to avoid. I kept going because I could see the light at the end of the tunnel and I realized that within a couple of minutes I would come out the other side.
In business, it is easy to come to a point where confusion, frustration, burnout, etc. become overwhelming and it is tempting to throw in the towel and give up. Don't do it! It's ok to slow down for a minute to regain your bearings but keep on going. Establish a clear compelling vision and it will become your light at the end of the tunnel. Watch where you're going and stay in the current One of the challenges I faced when I ran a whitewater rafting company was to keep to fixed schedules amidst constantly changing conditions. During guide training I emphasized the need to keep the boat moving. River currents shift up and down and from side to side. It’s easy to get tossed from one side of the river to the other, causing the boat to lose momentum. To avoid this the guide needs to watch for the main current and keep the boat positioned correctly. With some well-placed strokes the boat continues down river with ease. If not, the boat is delayed and both the guide and the crew are frustrated and worn out by the end of the trip. Watch where you’re going and stay in the current. Many business owners get exhausted and discouraged on occasion. “There’s not enough time in a day,” they tell me. “I’m working harder than ever just to keep my head above water. I need to focus on strategic growth, but how will I ever find the time?” If there’s one mistake I see entrepreneurs and business owners make over and over again, it’s mismanaging their time. Fortunately, there is a simple solution: develop and use a time management plan. Here’s how. Learn the Four Quadrants of Effective Time Management: This framework comes from Dr. Steven Covey’s classic book, The 7 Habits of Highly Effective People. In it, he posited that there are four quadrants into which all tasks fall: The first quadrant, important and urgent, consists of things you simply must do NOW: a crying child, a fire, and so on.
The second quadrant, important and not urgent, is the "quality time" quadrant. It consists of critical tasks that can be scheduled in advance. Working on your business plan, personal recreation, and bonding with family belong here. The third quadrant consists of not important and urgent tasks. These are distractions and interruptions, unimportant emails, tasks and phone calls that compete for your attention in the moment. The fourth quadrant, not important and not urgent, is the "time-wasting" quadrant: online games, cruising social media, unproductive meetings and so on. (Excerpted from my eBook 6 Keys to Rapid Business Growth Click the title for a free copy.) Regardless of your industry, one thing makes the business world go round: SALES.
If you don’t have a sales team that sizzles, you’ll struggle mightily. Poorly managed sales staff and a lack of a systematized sales process are among the biggest problems I see business owners struggle with. The solution is to implement a sales management system. Here are five pointers on how to set it up. 1. Develop Key Performance Indicators for Your Sales Team: First things first, you need to know what specific numbers your sales team needs to hit in order make your business thrive. You need to base these numbers on actual, past results, so that you’re not creating goals that are either so high that they’re unattainable, or so low that they don’t stretch anyone. 2. Tie Employee Compensation to Performance: When your staff has a vested, financial interest in their results, their output will soar. Some business owners shy away from this but I’ve found that almost nothing you do will prove more powerful in terms of increased effort and productivity. 3. Create an Environment Where Your Sales Staff Can Thrive as Individuals. One of the best things you can do is have everyone create a “Vision Book” that outlines in specific detail what he or she is really working for. I have a FREE Vision Book template I’d be happy to send you; (simply e-mail me at dwight@forwardone.net and I'll get it to you.) Make sure the work environment is positive but includes some friendly competition. Create contests with fantastic incentives. Give generous bonuses when people meet and exceed their sales objectives. Make working for you a rewarding experience—and you will be rewarded handsomely. 4. Provide Your Staff the Resources They Need. Make sure your sales team has everything they need to be successful. This includes Customer Relationship Management technology that makes it easy for them to track and manage all their accounts, solid scripting, high quality leads, and ongoing training to help them hone their skills and improve their results. 5. Hold Sales Staff Accountable for Their Performance. More than any other department, you need to keep your eye on the sales team to make sure they’re meeting their objectives. Review their numbers weekly. Coach them as necessary to help them improve. Next post: Manage Your Time (Excerpted from my eBook 6 Keys to Rapid Business Growth. Click the title for a free copy.) Let me share two simple keys to creating and implementing an effective marketing program: Measure effectiveness and focus on results.
First, establish a system for measuring marketing effectiveness. Every ad, blog post, postcard or letter should ask your prospect to do something as a direct result of seeing or hearing your message. This allows you to track the precise result you get. Once you know which ads are effective, you have the information you need to save (and make!) a lot of money. Simply use those pieces that bring in leads and disregard those that don’t. Second, use results to focus on high-impact, low-cost marketing tactics. Here are five of my favorites: 1. Ask for referrals: If you're like most business owners, anywhere from 50%-80% of your new customers come from referrals and word-of-mouth. And yet, many companies have NO formal, incentivized referral system in place. 2. Create a rewards program: Reward customers for buying frequently. Create a membership or rewards program that helps your customers feel more involved and encourages them to come back more often. 3. Understand why people leave: Take great care to track your customers so that you can become aware when they’ve stopped coming back. If possible, speak directly with them and ask what you could have done to retain their business. This information will be invaluable as you make systematic improvements to increase retention over time. 4. Invite inactive customers back: Remember: you can't get what you don't ask for. Send periodic invitations and special offers to customers who haven't been in for a while. You'll be amazed at how much more responsive a list of former customers is than a cold list. 5. Send an email newsletter: If you want to maintain a relationship with your customers, even when they don't have an immediate need for your products and services, you need to communicate with them. One of the best ways to do this is through email newsletters. Send them interesting, informative articles they can use in their daily lives. If you don't have time to create a newsletter, check out Elance.com or Guru.com and search for copywriters and content writers. You can usually find affordable providers who will take on the burden of your newsletters so you don't have to. Next post: Implement a Sales Management System (Excerpted from my eBook 6 Keys to Rapid Business Growth. Click the title for a free copy.) When discussing the key to growing their business, 90% of owners say the same thing: “We need to spend more time and money marketing our products and services.” My opinion? Hogwash. Now don't get me wrong. Marketing is important. In fact, I love marketing! I've developed many successful marketing programs in a variety of industries. But here's the simple truth; trying to grow your business by pouring more time and money into marketing that is already ho-hum is like a boxer who steps into the ring leading with his chin: You're gonna get knocked out in the first round! Some will say, “In order to get new customers I need leads. And in order to get leads, I have to advertise, or at least do something!” Perhaps, but in a majority of cases, the solution isn't doing more—it’s doing a better job. And to do that, you need a strategic marketing plan. Before I get into the nuts and bolts of improved marketing, let me introduce a simple diagram I call The Profit Equation. It demonstrates how small, incremental improvements in a few critical areas actually lead to dramatic growth in business over time. By achieving a mere 10% improvement in each of the areas above, you’ll reap amazing results. And note that most of the improvements are marketing-related:
So how do you do it? I’m glad you asked. My next post will address how to create and implement a strategic marketing program. (Excerpted from my eBook 6 Keys to Rapid Business Growth. Click the title for a free copy.) You Need a Clear Plan Based on Knowing What’s Ahead As a river outfitter I would train several new guides every year and we would spend a lot of time learning how to read the river, which is a critical skill for any guide. Equally important is the ability to know when and how to scout. To do this we pulled the raft to the bank and hiked to a vantage point to see what was ahead. Each guide was required to explain what he thought was the best route and why. After everyone had a chance to share, I gave my assessment and pointed out the dangers of each option and how to minimize those challenges. We then mapped out the best course. Once we were on the same page we would return to the raft and take turns following the plan. Sometimes things went perfectly; other times not so much. Either way we would learn something from it. You Need to Develop a Great Crew to Have a Successful Run
Having one great paddler is not all that great. Canoeists are usually great paddlers but a raft guide has to try hard not to wince when he get a canoeist on his crew. Because the canoeist can draw, cross-draw, pry, sweep and use an assortment of strokes, it means he can do things the guide would not normally expect. When that happens the guide has to make counter adjustments in order to get the raft back on track. Rather than depend on one paddler, the guide’s challenge is to develop a team, with everyone in the right position in the boat. When everyone works together as a balanced crew the results are excellent. If the “great” paddler won’t listen to instructions, the guide has the right to kick him off the trip if the safety of the crew is in question. Next post: Be a Smarter Marketer (Excerpted from my eBook 6 Keys to Rapid Business Growth. Click the title for a free copy.) |
AuthorDwight Grant is a seasoned businessman with over 30 years of leadership experience. He lives in CO where he enjoys whitewater rafting, mountain biking and spending time with family. Archives
May 2022
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