Category: 3 Keys to Better Business

Pricing 101: your pricing strategy

Pricing is the most important aspect of your business. No other factor has a higher impact on improving profits. A 1 percent improvement in price optimization results in an average boost of 11.1 percent in profits. That’s no small change.

The following are methods commonly used when determining how to price inventory. Read through these pricing options and compare them to how you currently price items in your dealership. Keep in mind the services your dealership provides when trying to match the best method for you moving forward.

Value based pricing: It’s all about the customer

To consumers, price is a number of how much they value what you are selling. For example, if I needed a new winter hat, I could get one from the local Goodwill store for a dollar, or I could go to Macy’s and buy one for $25. If I only cared about covering my head, Goodwill would win, but since I care about my fashion sense, Macy’s wins. A customer’s willingness to pay is contingent upon the value he or she places on the product desired. Essentially, value based pricing cuts through the red tape of this scenario to determine the true willingness of a customer to pay for a particular product.

Unfortunately, the most common pricing strategies and methodologies forget about the customer. Instead, people in charge of pricing justify price points based on internal reasons or simply adopting existing market prices. Newsflash: customers don’t care how much something costs you or your competitors to make. Customers want to know how much value they are receiving at a particular price.

Value based pricing requires a lot of research. But it allows more interaction between you and your customer. Plus, unlike pricing done by market norms, this method focuses on isolating qualities that distinguish your product from a dozen similar products on the market.

Value based pricing models utilizes customer data, as well as breakdowns of the relative value of different features within your offering. You’ll also need to conduct an analysis of competing goods, because once you have the data, you’ll want to know the other options consumers have open to them. In the end though, you have the greatest amount of data to make an informed decision about your profit maximizing price.

Pros of value based pricing

1. It helps you develop higher quality products.

Value based pricing not only determines a more accurate price for the end product, but the process will also benefit your business. Taking on a consumer perspective will also help you discover what customers are really looking for. Products and features will be driven by consumer demand, which raises perceived value, thereby resulting in a higher price.

2. It allows you to provide phenomenal customer service.

Much of the customer data in value based pricing is collected through customer surveys or interviews. In past newsletters, we have stressed the importance of building relationships with customers and providing them quality customer service. Your customers will perceive that you are providing the best service available and building repeat business instead of a one-time customer. The customer will trust that you are providing the most bang for his or her buck.

Cons of value based pricing

1. It takes time and resources.

The method takes time; both while building relationships with customers and researching competitors’ prices and services.

2. It’s a science, just not an exact science.

Value based pricing is more of a process that requires consistent dedication, not just a “set it and forget it” mentality. Think about it, willingness to pay differs between different customers, regions and even offers. A 100 percent accurate prediction is impossible, but we can get pretty darn close.

Summary: Value based pricing should be a part of almost everyone’s pricing strategy. When done right, value based pricing provides increased opportunities to provide customer service and motivates you to provide a higher quality product.

Cost plus pricing: The oldest and simplest method of setting prices

Cost plus pricing is the simplest method of determining price, and embodies the basic idea behind doing business. You buy something, sell it for more than you spent buying it (because you’ve added value by providing the product), and the difference between your price and costs equals profit.

A lot of companies calculate their cost, determine their desired profit margin by pulling a number out of thin air, slap the two numbers together and then stick it on a couple thousand widgets. It’s really that simple. This method involves very little market research, and also doesn’t take into consideration consumer demands and competitor strategies.

Pros of cost plus pricing

1. It takes few resources.

Cost plus pricing doesn’t require a lot of additional market research. Cost of product is something businesses are mostly aware of by adding up different invoices, labor costs, etc. Businesses can then take the total costs and place a margin on top of them that they believe the market will bear. Cost plus pricing is especially helpful when you have no information about a customer’s willingness to pay and there aren’t direct competitors in the marketplace.

2. It provides full coverage of cost and a consistent rate of return.

As long as whomever is calculating the costs per item is adding everything up correctly, cost plus pricing ensures that the full cost of the product is covered, allowing the mark-up to generate a positive rate of return.

Cons of cost plus pricing

1. It’s horribly inefficient.

The guarantee of a target rate of return creates little incentive for cutting cost or for increasing profitability through price differentiation. This inward facing approach discourages market research, including watching your competitor’s prices. Plus with no research, you have minimal data on your customers’ perceived value of your product.

2. It doesn’t take into account consumers.

Perhaps the biggest downfall of cost plus pricing is that it completely disregards the customer’s willingness to pay. To make money, a customer must be involved. They’re the most important part of selling anything, so any pricing strategy that doesn’t take customer value into account is creating a vacuum that’s sucking all of the profit out of the business.

Furthermore to be blunt, customers don’t care about how much something cost you. They understand there are costs associated with doing business, but consumers care more about how much value you’re providing.

In summary, cost plus pricing isn’t ideal for most businesses, unless you truly cannot spend some extra time on the most important aspect of your business – your customers.

Competitor based pricing:  logical, but ineffective

Competitor based pricing is a lot like a bad case of plagiarism in a college class. Because you don’t want to do the work yourself, you look at your competitors’ prices for similar products, and set your prices similarly.

Imagine stacking all of your competitors on a totem pole with the most premium or luxury brand on top and the bargain brand on the bottom. You then decide where on the pole you fit, place yourself in there and set your price accordingly. This is not the way to do business.

Pros of competitor based pricing

1. It’s fairly simple.

If you’re in an industry with even one or two direct competitors, you can implement a reasonable competitor based pricing strategy. In most industries, marketing and product managers will then have to do relatively little research to find a price.

2. It’s low risk.

It’s rare to royally screw up using this form of pricing, and chances are if your competitor has never filed bankruptcy, neither should you.


Cons of competitor based pricing

1. It leads to large missed opportunities.

You will miss the opportunity to work closely with your customers and provide them true customer service if you just sell a product without any extra perceived value. You will likely lose profits and not take advantage of improving your product or business. Maintaining a lower price than your competitors isn’t always the best way to attract consumers, and as Lisa’s chart on page 2 showed, prices are not a priority like customer service and communication.

2. Formed by group consensus and lacks personal responsibility.

Competitor based pricing operates off the assumption that businesses already in the market have the correct answer and that every decision competitors’ make is intelligent. However, if a large portion of companies all use this tactic, then with time, competitor based pricing can lead to the entire industry losing touch with demand.

Summary: Competitor based pricing should be a part of everyone’s pricing process, but not the central pillar. As we alluded to before, competitor based pricing also gives you too much of a “set it and forget it” mentality. Pricing is a process that requires data and attention. If you’re not changing your prices and differentiating your product over time, you’re not sustainable. Yes, you should know what your competitors’ prices are, but knowing your customers and their demands is more important. If you take elements of all three of these pricing strategies, you should see increased business and an increase in your profits.

Understanding The Value

Without an understanding of what all is included in a bag of BioZyme mineral, it is possible your customers feel they are comparing apples to apples when, in fact, they are not. BioZyme mineral prodcts contain a host of things other mineral brands simply do not offer:

AMAFERM®
The key ingredient in all of BioZyme’s products, Amaferm® is a natural feed additive, that acts as a prebiotic increasing digestibility to maximize the energy value of feed.

OPTIMIN® Proteinates
The nutritional success of any organic trace mineral depends on the ability of the organic escort to hold onto and protect the metal from undesirable reactions. Optimin’s superior chelation stability maintains the integrity and keeps the organic mineral in its original form during digestion. Optimins are soluble and ready for absorption, especially when they are needed most – under stress or during difficult dietary digestive conditions.

PRICELESS Attributes of BioZyme Mineral Products

  • Research proven vitamin and mineral levels
  • Exceeds NRC requirements for respective production stage
  • Highest ingredient quality and consistency
  • No least-cost formulations as BioZyme manufactures to the ingredients, not the guarantee

4 Myths to Debunk about Pricing

Pricing tends to be looked at as this ominous figure in business that’s so difficult that most are left paralyzed. As one of the least studied branches of marketing, pricing has become a black box for many dealers, who simply adopt existing prejudices and misinformation.

Put simply: if pricing is a black box, you’re losing money. A lot of it.

Therefore, let’s dispel some of the most common myths so you can be catapulted into action and start capturing all of that lost cash you’re leaving on the table. Increased revenue makes every business owner happy.

Myth #1:
We need to accept market or competitor pricing

Basic microeconomics teaches that in perfect competition, individual companies cannot affect market prices. In other words, businesses must accept the equilibrium price, where the demand curve crosses the supply curve. While this is a convenient way to calculate price, this theory doesn’t correctly reflect how the real market works. Prices in any market span across a range, rather than fixing on only one point. Product and service differentiation through brand, quality, etc. can all affect where your business lies on this range.

TRUTH: No matter the density of your industry, product and brand differentiation can take you well above the market standard.

Myth #2:
The only way to increase volume of sales is by decreasing price

It may sound too good to be true, but it is indeed possible to raise prices and increase volume at the same time. As Lisa states in her letter this month, price isn’t the only factor that attracts customers. Focusing on giving customers a reason to pay a higher price for your product or service is crucial, whether that be greater quality or better service. A powerful tool is market segmentation. Most products have a target audience, whether it’s the progressive cattleman, the bargain hunter, the show segment or the hobby horseman. Creating different classes for your product depending on quality or services can expand the number of customers you cater to, thus increasing buyers. Additionally, sometimes lowering your price can actually deter people from buying your product. Think about it. If I came up to you and said I’d sell you an Apple MacBook Air for $100, you wouldn’t buy it, because you’d definitely question the quality.

TRUTH: Volume is created by customer segmentation, charging different sets of customers different prices, and thus increasing volume and revenue.

Myth #3: 
We need to charge lower than everyone else

This is quite possibly the biggest misconception. A race to the bottom is one of the worst ways to compete, because you end up underpricing and losing out on your customer base. Your customers begin to question the quality of your product, but needs to buy the product. So they continue to shop around, and you lose customers. Lower prices equal lower revenue rates, which means the number of sales must increase to cover the loss. Obvious, yes, but it needed to be stated. Additionally, a lower price tag doesn’t mean customers will automatically flock toward your product. For example, if BMW suddenly sold its cars for $35,000 instead of whatever ridiculous dollar amount they’re priced at now, would that necessarily increase its revenues? Possibly in the short term, but in the long term they would begin to compete with cars made by Honda and Toyota who already have that market cornered. BMW would also lose out on the consumers that put luxury value in the premium pricing of their cars.

TRUTH: Underpricing is rarely the solution to any pricing woes. You end up dropping into a different segment of customers and lose out on cash from your current customers.

Myth #4:
Pricing isn’t important

Pricing is the most important aspect of your business. Period.
A 1 percent improvement in pricing results in an average increase of 11.1 percent in operating profit. No other business lever has that impact – not cost optimization, volume increases, or anything.


TRUTH: Pricing is, bar none, the lever in your business that has the highest impact on the most important cell on your end-of-month spreadsheet – your revenue. You need to take it seriously.

Source: http://www.priceintelligently.com

Promote Where it Matters Most

It is very apparent that organic reach for Facebook posts has been taking a hit over the past few years. Even as recent as this year, with Facebook limiting the reach of “promotional posts,” the percentage of followers a company reaches organically continues to decrease. While it is possible to slightly improve this percentage through higher quality content, Facebook advertising offers more effective ways to improve post viability, for a price of course.

Facebook advertising allows companies to choose a post and have it distributed in the news feed to anyone they want, based on interests, demographics, etc.

Before you get started, it’s important to have specific goals and understand the different options and ad types available to promote a post on Facebook. There are many reasons to boost a post, including:

  • Increasing brand awareness
  • Increasing brand engagement (shares, comments, likes)
  • Boosting website traffic
  • Promoting new content or blog posts

Use your budget most effectively by following these guidelines for boosting a post on your Facebook business page:

MAXIMIZE TARGETING OPTIONS

It’s easy to boost a post. It’s hard to effectively boost one. The key lies in who you are targeting. Based on the goal, you have the ability to target anyone you want on Facebook. When boosting a post, Facebook offers specific targeting options including: audience (fans and/or friends of fans), location, age, gender and interests.

If the post is focused on information only relevant to current fans, it’s important to target only those people. On the other hand, if the goal is to interact with potential new customers, that needs to be reflected in the targeting.

FOCUS ON QUALITY IMAGES AND VIDEO

There is no way to stress enough the importance of having a high quality image or video tied to a post. When boosting a post, especially to users who might not be familiar with the brand, the image will be the first piece they see. It needs to be eye catching and engaging at the same time.

If using an image, make sure it is appropriately sized. If these dimensions are not followed, Facebook will resize them, causing images to look less attractive. An image 1200px by 900px is a safe bet. You can find ideal image sizes for all the Facebook Advertising campaigns at: https://www.facebook.com/business/ads-guide/post-engagement/photo. It is important that all images are high quality to avoid blurry and distorted messages. Most importantly, if you plan to pay for a boosted post, you must follow the 20% text rule. While organic posts do not need to follow the 20% text rule (only 20% of an image can include text), boosted posts do.

UNDERSTAND ALL AVAILABLE OPTIONS ON FACEBOOK

Facebook offers a variety of different advertising options. While they make it easy to boost a post and move on, it’s important to know what options they have and see if there is one better suited for the target audience and goals. Visit www.facebook.com/business/ads-guide for a breakdown off all the different advertising options.

While boosting a post may seem as simple as pressing a button, there is a lot more to consider in order to effectively use it and see results. To avoid irrelevant clicks and visitors, advertisers need to understand who they are targeting, what the goals are, and why users should care about the post.

Financial and Productivity Apps to Keep You in Check

Your iPhone can be a powerful tool for business – or a complete distraction. The key to any software program or app is finding the right match for your specific needs or deficiencies and then committing to using the tool so you can take advantage of the benefits. The following are a few apps that may be able to enhance record keeping systems, automatically sync income or expense data with your financial software, increase communication and transparency with your team and boost productivity.

Xpense Tracker
An all-inclusive expense tracking and reporting application for dealers wishing to track their expenses and mileage. It’s power does not end at the iPhone but extends to the desktop by allowing emailing or exporting of the expense files and accompanying photo receipts directly to the desktop.

  • Quickly snap shots of receipts for easy scans and financial tracking.
  • Track your mileage in real time by using your device’s integrated GPS.
  • Export your records in .PDF and .CSV file formats.

Hours Tracker
Need a way to track your time or an effective tool for employees to use so they can send you time reports? Clock in and out as you work. Or, add entries yourself in just a few quick taps. Time entries are automatically created when you clock out.

Easily review your past entries, grouped by day, week, month or pay period. You can easily export your data by job, date or selection. Choose to export as a text summary or in spreadsheet-ready CSV format.

SLACK
All your team communication in one place. Slack is a new way to get more done, spend less time in meetings and reduce email.

  • Real-time messaging and file sharing for one-to-one and group conversations.
  • Powerful search and archiving, so you can find information easily.
  • Instantly syncs across all devices.
  • Configurable notifications for desktop, mobile, and email.
  • Proven to make your working life simpler, more pleasant, and more productive.

Quickbooks Payment Pro
GET PAID QUICKLY … ANYWHERE, ANYTIME. Plug the card reader into your iPhone or iPad and swipe credit cards quickly and securely. Or, if you don’t have a card reader, you can always scan a card with your camera or key in the card details directly.

Your customer signs right on your device to authorize the payment. Then, you can email or text a receipt to your customer. Accepting a payment takes just a few taps from start to finish.

Wunderlist
Wunderlist allows dealers to access their to-do lists from almost anywhere. Star important tasks, create multiple lists, sort by due date and priority and add tasks via e-mail.

Since multiple parties can edit lists, the app doubles up as a collaboration tool that works across desktop and mobile.

Freedom – Reduce Distractions
With so many distractions and possibilities in your digital life, it’s easy to get scattered. Freedom blocks digital distractions so you can be more productive. Start a Freedom session, and you’re blocked from all distractions on your phone or tablet. Freedom gives you peace and quiet, so you can accomplish more.
Rescue Time: Android alternative

Digital Punch Card

Technology has come a long way. It’s great when it works, but more importantly, to work it must be easy. Retail outlets have used promotions and customer loyalty programs for ages to drive sales and repeat business, but often these programs are difficult to manage for both the store staff and the customer. However, there is an innovative program available that automates the management of rewards points and makes communicating with your customers easy!

Here are some examples:

  • Buy 10 bags of Sure Champ® and earn a show stick, pig whip or brush.
  • For every 10th visit to the store where you purchase $50 or more, earn a free gift.
  • Come in on your birthday and receive $10 off your purchase.
  • Earn double loyalty points on Tuesdays.

These types of incentives are appealing to those customers who enjoy a bonus, and if done strategically, can be an effective way to ramp up business on specific days that may normally be slow or to promote slower moving products. Additionally, it’s a great way to stay in front of your clients and market in a fun way.

OptSpot (www.optspot.com) combines customer loyalty and text message marketing to increase customer frequency, connect with customers and drive instant revenue. Customers simply sign-up & check-in using their mobile phone number. Points are automatically tracked & rewards are earned based on points. Re-connection is automated and done through text messaging.

Some Cool Features
Customer Loyalty: Using a mobile number to track points and rewards is easy. Customers either enter their number into the tablet or you do it on your point of sale checkout system for them. Points are tracked and rewards are earned automatically.

Auto-Engage: Reconnecting with your customers automatically based on frequency is nearly impossible without innovative solutions. This text program will send a text message to those customers who have not visited in 30, 60 or 90 days inviting them back more often.

Text Message Blasts: Being able to get your message in your customer’s pockets can drive instant revenue. Send limited time offers, promotions, etc. and watch your business grow.

Collect More Data: Collect important customer data and add them to your own
customer relationship management (CRM) software through an automated text call to action.

Don’t Sell. Help.

It’s a safe bet that most people have had a bad experience with a sales person. You may even cringe, roll your eyes or your stomach turns when you hear the words “sales person.” Kelley Robertson, author of Stop, Ask & Listen – Proven Sales Techniques to Turn Browsers into Buyers and The Secrets of Power Selling, lists seven reasons why customers hate sales people:

1.) They don’t listen
2.) They talk too much
3.) Lack of knowledge
4.) Lack of follow-up
5.) They lie
6.) Fail to understand the customers’ needs
7.) Refusal to take “no” for an answer

However, sales are essential for business. After all, nothing happens until you sell something. So how do you find balance? How do you become aggressive in growing your business without being labeled as a “sales person?”

To be great at selling, you must first be passionate about the product(s) or service(s) you’re representing; and secondly be passionate about the people you serve. This type of passion is something a dealer can rarely fake. A passion for what you’re selling coupled with a passion for helping your customers make the best decisions for their operations will come across in everything you say or do.

This is one area BioZyme® dealers often do not have trouble as 80% of dealers use the product personally and have experienced firsthand results they are passionate about sharing. Here are four reasons this type of passion is a game-changer for your business:

Passion Builds Trust with Customers
There are no sales without trust, and a passion for selling can cement trust between a dealer and a potential customer like nothing else. When passion is genuine, customers know it, and will respond to it by placing their trust in you and your business. A passion for selling also helps build trust because:

  • A sales person with passion truly wants to understand the customer and their unique needs and then sculpt how a product or service fits into that picture.
  • When a sales person is fully invested in the products he or she represents, that passion can be contagious for customers.
  • Passion permits a sales person to go after the best possible outcome – even if the best possible outcome for the prospect is not the product he or she originally had in mind.

    Passion Keeps the Sales Pipeline Full
    One of the great things about a passion for selling is that it can help dealers maintain a full sales pipeline without as much effort as those who lack such a passion. Why? A passion for selling turns customers into advocates (see page 6) who will recommend the dealer and their products to others. Word-of-mouth marketing continually sends new leads who are interested and ready to buy to the dealer. Having these customers who are also willing to provide testimonials and refer other customers, is priceless in any industry.

    Passion Allows Dealers to Be Persistent
    Persistence is always a watchword in sales since customers will not always be quick to pick up the phone or return a call. Great dealers who have a passion for selling have an advantage here because that passion helps them overcome such barriers and be persistent in pursuing the sale without becoming a hindrance to the potential customer. With passion, great dealers can come up with creative solutions to reach their prospects and ultimately make the sale.

    Passion Helps Dealers Continually Improve
    When dealers have a passion for selling, that passion often makes itself known through continual improvement. No dealer is perfect, but not all dealers are willing to make the commitment of time, money and energy it takes to reach the next level. Those who have a passion for selling are willing to make this commitment not only because it is the best thing for their careers, but also because it is what they want to do. That is passion for selling in action.

Passion is the Only Way to Reach Peak Performance

Which of the following types of people would you prefer to have in greater numbers working with your business?

A. Happy, Low Performers
B. Unhappy, Low Performers
C. Unhappy, High Performers
D. Happy, High Performers
E. All of the above.

The obvious preference would be “D.” Makes sense as mounting evidence suggests that happy, high-performing workforces correlate with greater employee satisfaction, customer loyalty, profits and productivity.

One of my favorite books is All In by Adrian Gostick and Chester Elton. It says productivity is driven by the equation E+E+E. The Es stand for engaged, enabled and energized. Engaged means the employee is attached to the company and willing to put forth extra effort. Enabled means that the company environment supports the employee’s productivity and performance. Energized means that the employee feels a sense of well-being and drive.

Yale psychologist, Amy Wrzesniewski, interviewed hundreds of workers in all professions and found that people have one of three work “orientations” or mindsets:

  1. They see work as being a “job” or a chore and use the paycheck
    as its reward.
  2. They approach work as a “career” and strive to advance and succeed.
  3. They see their work as a “calling” and find work fulfilling because it gives them feelings of meaning and purpose.

Wrzesniewski then showed that people with a calling will work harder and longer simply because their jobs are rewarding.

After reading all of this, the conclusion is simple: we need happy, rewarded, engaged, enabled and energized workers if we want them to be the high-performing type that result in greater productivity and profits for our businesses.

But wait. According to Deloitte University Press, up to 87.7 percent of America’s workforce is not able to contribute to their full potential because they don’t have passion for their work. Less than 12.3 percent of America’s workforce possesses the attributes of worker passion. This “passion gap” is important because passionate workers are committed to continually achieving higher levels of performance.

So passion truly matters, and here are three ways to find and support it in your team:

1) Look for where your preconceived notions about the profile of a passionate worker are stopping you from identifying talent both externally and internally. Passionate workers come from all age groups, educational levels and backgrounds.

2) Recognize that passionate workers out earn and outperform their peers because of their internal drive for sustained learning and performance improvement. Take risks to cultivate these dispositions, and passionate workers will take risks for you in return.

3) Cultivation of passionate workers internally is probably the most effective way to increase the proportion of passionate workers in your organization. Organizations should evaluate their work environments to understand where they cultivate or discourage passion.

Who Are Your Customer Advocates?

Are you generating new business from existing customers? Customer advocates are the heart of any successful, growing business because they help send you referral leads – for free.

Referrals are warm leads that convert better than leads using other marketing initiatives. Creating customer advocates and harnessing their passion to drive more referrals is a key component to all successful, growing businesses.

According to a study by Wharton School of Business, 83 percent of satisfied customers are willing to refer products and services. But, only 29 percent actually do. So, let’s amp up that 29 percent and create some real growth from customers who share passion about the products and services you provide!

Why is customer advocacy so important?

  • A referral customer costs a lot less to acquire and has a higher potential for retention and loyalty. In fact, a referred customer has a 16 percent higher lifetime value. (Wharton School of Business, 2012)
  • Word of mouth is a primary factor behind 20 to 50 percent of all purchasing decisions. Its influence is greater when the products or services being bought are relatively expensive or need people to conduct detailed research. (Mckinsey, 2010)
  • People trust friends and family more than other information sources; they pay twice the attention to recommendations from friends than other sources. (Mckinsey, 2010)

It’s easy to understand why creating customer advocates is important in driving success. Here are four ways you can turn passionate customers into advocates.

1. Build stronger customer relationships

Building relationships is important in showing that you value your customers’ business. Stronger relationships increase trust between you and your potential customer advocate.

When it comes to referrals, your customer’s reputation is on the line. If someone recommends your products and/or services, and you don’t deliver, guess who loses? Yes, you might take a hit, but more importantly, your customer will have their reputation damaged. Through stronger customer relationships, you can build trust with customers and earn their referral.

2. Use customer satisfaction surveys to identify potential advocates

Identifying potential customer advocates is a challenge. Customer satisfaction surveys can serve as a tool to identify advocates.

As discussed in previous newsletters, these surveys give you the opportunity to ask customers what they really think of your service. To determine if a customer is a potential advocate, ask this question in your survey:

How likely would you be to recommend us to your friends or colleagues?

  • I would go out of my way to recommend <dealer name>
  • I would recommend < dealer name >
  • I wouldn’t recommend < dealer name >

If someone would ‘go out of their way to recommend your services’, you could assume they were very satisfied with your service or product. Leverage this insight to reach out to specific customers and identify potential advocates.

3. ‘WOW’ your customers by focusing on the experience

Zappos CEO Tony Hsieh demonstrates this best when he says, “We really don’t think that customer service is an expense that you should try to minimize, it’s really an investment in your brand. The telephone is one of the best branding devices out there. If you wow [customers] during that interaction, that’s something they’re going to remember for a very long time and tell their friends about.”

Creating an experience that WOWs your customers is something money can’t buy. People value service that goes above and beyond their expectations, and they tell others about those experiences. In order to WOW your customers, first think about what your customers expect from your product or service. Then, exceed those expectations. Think about some initiatives you can implement today that will make your customers say, “Whoa, that was great.”

4. Don’t be scared to just ask for referrals

Asking for a referral can be intimidating. Even with all the strategies in the world, some of you will still sit back and not identify your advocates and ask them for referrals.

Pick five loyal customers you feel might have some peers interested in your services. Next time you have a scheduled call or are delivering product, challenge yourself to simply ask for the referral.

Use this line if you’re stuck for words:“Hey Bob, do you know anyone or any operations that would find our products or services valuable?” 

Turning customers into advocates doesn’t have to be hard. Studies show that customers want to send you referrals but just don’t know how. Your passion for this industry is contagious, and you have customers who want to help you grow your business. It is up to you to leverage that passion to create more opportunity!

Marketing Multitasking

While many studies lay claim that multitasking can actually reduce efficiency, I will argue that ‘marketing multitasking’ is a no-brainer. Unlike mobile devices that are distracting and often prohibit productivity, finding ways to inject marketing into tasks you are already performing is quite the contrary. In fact, marketing multitasking is an excellent opportunity to multiply your effort.

You wake each morning with a standard routine that must happen in order to operate your business. You get dressed. You go over important tasks with your staff. You communicate with your customers during the sale, at checkout, and hopefully, you follow up. You invoice clients. Perhaps, you spend time driving to deliver product. You attend events, such as stock shows, where you simply visit and support your customers. Because you are accustomed to this routine, it is possible that you overlook marketing opportunities that can be easily injected into those everyday tasks at little to no cost.

Let’s touch on a few marketing multitasking ideas that can be incorporated into your normal business routine:

Staff Dress Code. You should never underestimate the value of apparel or wearables. Next time you are at the mall or large event, take a look around. Count how many shirts you see with brands like Nike, Under Armour, Carhartt and other popular brands. You’ve just been marketed to – many times over. Outfitting your staff with branded apparel creates walking advertisements for either your company and/or the brands you represent. Clothing can be used as conversation starters and magnet for potential customers, and they work overtime! How is that? If you invest in attractive apparel that your employees or customers like, they will wear them everywhere, even when you don’t ask. Being strategic about getting dressed in the morning is a cost effective, fun way to market.

Invoices. For dealers who snail-mail to send invoices or statements to customers, consider adding a product stuffer to the envelope. This is a small piece of paper designed to fit perfectly in an envelope and tells your customer about a new or related product they could benefit from. While you’re spending money on postage, you might as well include something that could spark interest and generate additional sales. For those who utilize electronic billing systems, you can also take advantage of this by attaching a PDF flyer in your email or, better yet, including a coupon for your customer’s next purchase.

Checkout Chatter. The short period of time a customer stands at the counter to check out is a perfect time to introduce them to upcoming promotions, new products or simply ask them if they are satisfied with the customer service they received. It’s the perfect time to up sell or receive feedback on their experience.

Vehicles. As a feed dealer, it is a given you spend much of your time on the road or have a vehicle out and about on any given day. A great way to increase brand awareness is with a vehicle wrap to advertise your dealership or a magnet that has your contact information, creating a traveling billboard.

Show Sponsorship. You will likely attend a stock show at some point throughout the year, whether with your family or to support your customers. While you’re there, wear your branded apparel and consider a sponsorship of product for class winners or champions. Ask if the show will announce your sponsorship over the microphone throughout the event and let people know where they can purchase product. Signage at these events is always a great way to increase awareness, and depending on the event, can come at a low cost.

Employee Time. If you have employees who have some downtime throughout the day, ask them to utilize that time writing thank you notes to your customers. You can never thank your customers enough, and a simple note will pay dividends.

As business owners, you face two important challenges each day:
1) feeling as if 24 hours is not enough to get everything accomplished and 2) engaging with your customers on a level so they know they are important and that you care. Our world is becoming more demanding of our time, and communication space is more cluttered. Rather than revolutionizing your marketing plan and falling short because you don’t have the time or resources to pull something big off, evaluate current activities to know if you are being fully efficient in the tasks you are already performing. And, more importantly, understand your customers’ worlds are just as cluttered as yours. Personalize your marketing efforts to speak to customers about what specifically interests them. By respecting their time and catering to their needs rather than cramming them into a one-size-fits-all plan, you will create engaged customers who appreciate your effort and who will remain loyal to your business.