Thursday, February 4th, 2010
In this article from Business/News & Views®, I give small businesses marketing advice about how to treat their customers. Here’s an excerpt:
It’s said that the brain cannot process a negative. We can prove this with a simple example: Under no circumstance should you think of a pink polar bear. Do not think of a pink polar bear.
Of course, you just thought of a pink polar bear.
At the peril of using negatives, I want to give small businesses advice on how not to treat their customers.
Read the full article: How Not to Treat Your Customers
Posted in Marketing, Small Business | No Comments »
Monday, November 9th, 2009
David Weatherholt talks with Dan Sullivan, Mayor of Anchorage, about the relationship between government and small business. Throughout the decades, government regulation has been pilloried, but without some key legislation, our business environment would be unstable, recessions would be less predictable and small businesses would find it difficult to thrive.
Dan Sullivan shares his business background and the similarities between running a business and a municipal government.
Later in the show, Amanda Cullen, of Zoo in a Jungle Marketing, explains relationship marketing and how small businesses can develop strategies to build relationships with their customers. Strong customer relationships lead to stronger loyalty, more numerous customer referrals and higher profits.
Listen or download below:
Alaska Municipal Government, Small Business and Customer Relationships
Posted in Alaska, Customers, Getting Down to Business, Small Business | No Comments »
Friday, October 23rd, 2009
What does it cost?
Have you ever gone to a local store because of their advertisement? And have you been disappointed by the overall customer experience?
The company, you add the name, just wasted valuable advertising dollars on poor customer service. Buy low. Sell high. Keep the difference. Customer service is an expense that increases businesses costs, the buy part of the equation and reduces the difference. Businesses face a myriad of costs from credit, insurance, bank and credit card fees, labor, shipping, travel, taxes and now add the cost of customer service, wow!
If you can pass all of these costs along to your customers and remain competitive, great. If not, then your profit margin takes a hit. In business someone has to pay every cost (although the government is trying to change that). The simple choice is; either you or your customer. If the business does not pass a cost along to the customers, then they are paying. The question, are your pockets that deep? Will your customers accept these costs?
There is a way to take charge and reduce businesses expenses. These are scary times to be in business and determining the real cost of doing business may be something you would rather not know. The good news is that a close examination of business expenses will identify areas that are controllable. Armed with this information, a plan can be developed to trim costs and increase profits.
Customer Service is one controllable expense that, when addressed, will produce a win/win for you and your customer. Advertising should always be looked at as an investment in your business. Creating and implementing effective advertisement is a great way to increase sales. You are buying leads to interested potential customers. Customer service converts these leads to sales.
If the advertisement effectively attracts potential new customers, it has done its job. If this potential client is converted to a customer returning again and again, then your investment has paid off. If, however, a potential customer has a bad buying experience, then your investment in advertising has turned into a business expense that should be reduced.
The value of a new customer can be calculated, and that final number may surprising. In a simple example of a restaurant bringing only $10 per customer means that single customer represents over $1,500. If you spend $5,000 on an advertising campaign that produces 10 new customers…well it doesn’t take an MBA to figure out this was a good business decision. Using the “New Customer Value” worksheet is the tool needed to calculate the value of a new customer. The sheet is available in two formats, an Excel spreadsheet containing formulas and a PDF file for hand calculation. Click to download below:
Value of a Customer Worksheet (Adobe PDF)
Value of a Customer Worksheet (Microsoft Excel)
During economic downturns you will have time to closely examine your business, make corrections, and be ready for the inevitable upturn, returning with a leaner, more profitable company. Knowing the value of a customer, new and old may not only pleasantly surprise you but become a helpful tool for measuring your advertising investment against the benefits produced. Your staff can see the economic value of providing good customer service, which promotes the success of your business, moving it to the next level.
Posted in Customers, Marketing, Recession, Reducing Business Expenses | No Comments »
Monday, June 15th, 2009
In the June 2009 issue of Business/ News & Views®, David Weatherholt delivers a stirring op-ed to see the opportunity for cutting costs in this recession– there’s never been a better time to trim fat. Amanda Cullen explains how your existing customers create new customers for you. The Internet Tips & Tricks feature provides advice for small businesses on getting more websites to link to their websites.
Read now: Business/News & Views® – June 2009
Posted in Business/News&Views®, Customers, Entrepreneurs, Marketing, Recession, Reducing Business Expenses, Sales, Small Business | No Comments »
Saturday, November 15th, 2008
In this second issue of Business/News & Views®, editor David Weatherholt compiles some timely (and timeless) articles for his readers. There is advice on improving customer loyalty to your e-commerce website, proof that recessions can be good for smart businesses, a treatise on capitalism vs. socialism and help for valuing your customers.
Read Now: Business/News & Views® – November 2008
Posted in Business/News&Views®, Recession, Small Business | No Comments »
Sunday, October 12th, 2008
In the October Business/News & Views®, David Weatherholt has assembled a stellar group of articles for your small business. From topics of relationship management to the economy to the importance of financial management, you will find a tip to help your business.
Read October Business/News & Views® now.
Posted in Business/News&Views®, Finance, Recession | No Comments »
