How A Simple Question Can Improve the Customer Experience

When a person enters a store they usually have a budget in mind. For a business owner the amount the customer is willing to spend is very important to his or her sales pitch.

At CJ Feed & Supply, Charlene Rein knows how to profile a prospective customer.

She developed a question years ago that lets her analyze just how much people are willing to spend on their animals.

“When they walk in the door I introduce myself then ask, ‘Do you like your animal, love your animal or is it a yard ornament,’she says. “This question applies if they own horses, cattle or a cat.”

Rein says the answer to this question tells her how committed customers are to their animals and what price point she should pitch. She says if they love their animal people are going to buy the best product for it and are committed to keeping that animal around for a long time. If they like their animal then she offers a middle-of-the road product. Answering “like” tells Rein the owner wants his or her animal well fed, but is also price conscious. And if the customer replies, “Yep, I own,” one this means they consider it a yard ornament. Rein believes the customer likes taking care of its animal but won’t go for the all the bells and whistles. She’ll show this potential customer the lower end of products.

CJ Feed & Supply is located in Paola, Kansas. Rein owns and manages the store, as well as her own herd of horses and cattle. As a dealer for BioZyme® she orders products she has used and can attest to, along with Sure Champ® products, which she sells in her store.

First impressions are everything, Rein says. When she asks the customer her intro question she is working to be more efficient. Understanding right away what they have and what they are willing to pay for means meeting their needs more quickly.

In the case of a customer who has a small budget, Rein says she tries to help them understand that they get what they pay for. If they are price conscious and want cheap feed, she is also prepared when they come back to the store six months later stating their animal looks rough.

“I tell them if you want your animal to look better here’s what you need to do,” she says. “I want people to understand they need to look at the label and see this is the nutrition in bag A versus in bag B. If it’s something they are keeping around for a couple of weeks and are just maintaining it, that’s fine. But if you’re going to show your animal, feed it show feed. And still for the child’s sake, please do the best for the animal and at least feed a show supplement like Sure Champ.”

Besides asking the profile question Rein says also keeps track of every customer. Each person is input into a computer system so her employees know their name, animals and previous purchases. She teaches her sales people to learn this information so when the customer walks in they automatically know what they purchased on their last visit. Then she prompts her employees to ask, “Do you want the same?”

Keeping track of customer information is another form of efficiency because if they want the same amount of feed, supplement or vaccine the order can be put together for them quickly.

“We try to know people’s names, their animals and what they do,” she says. “We build relationships with them.”

Rein, her two full-time and five part-time employees all work to make CJ Feed & Supply stand out. They send Christmas cards and thank you notes. They also host a large open house for nearly 400 attendees and serve chili or roast a hog, all in an effort to show appreciation for their customer base. Rein wants to
be able to recognize a customer by the car or truck they just drove into the parking lot so by the time they hit the doors she can be ready to offer a greeting and meet their needs.

Still, Rein says the feed store is a business, not a bank. She has to be willing to call in accounts receivable and make sure the books are in order. Rein buys many products in volume so she can keep prices low. She also encourages her employees to look at price sheets each time they come out so they know when prices increase and are not surprised at the register.

Profiling customers is a natural fit for Rein, and it helps her understand the commitment and the investment a customer is willing to give to their animal and to her store. Asking the right question at the start keeps her efficient, and she knows when to push forward as well as hold back with her customers.

“You have to know how to manage and when to draw the line,” Rein says. “From time to time, I get into a rut but I take a step back and reevaluate. I believe it’s best to take care of those who will take care of you.”

Accounting Software Increases Awareness & Efficiency

Accounting is the language of business. Not having accurate accounting information is like trying to get on the right train in Tokyo when you don’t speak Japanese. In the end, you will be lost and unsure of your business’ financial footprint.

Whether you’re just opening up shop or you own a thriving business, accounting software can make your life easier and save you hundreds of hours of time and stress. The best accounting software can perform most accounting tasks, such as keeping track of expenses and daily transactions, paying bills and employees, sending recurring invoices and syncing data across financial accounts. There’s no substitute for an accounting pro who knows the ins and outs of tax law, but today’s packages can help you with everything from routine bookkeeping to payroll, taxes, and planning.

When Business News Daily asked small business owners what made the “perfect” accounting software, there was one resounding requirement across the board. The best accounting software saves business owners time and doesn’t add to the already stressful nature of owning a small business.

The good news is there are more accounting software options than ever, including subscription Web-based options that don’t require their users to install or update software. Many businesses, however, including those that need to track large inventories or client databases, and those that prefer not to entrust their data to the cloud, may be happier with a desktop tool. Below are four of today’s favorite options among small business owners:

  1. Wave is a free, easy-to-use program that also has some surprisingly strong accounting and invoicing tools.
  2. Gusto ($29 per month) is inexpensive, has a simple and attractive interface, and incorporates the payroll tools most often required by small businesses.
  3. FreshBooks (from $19.95 per month) is exceedingly friendly, understandable, and attractive. FreshBooks is the site to beat when it comes to managing and tracking invoices, time and expenses for the very small business.
  4. QuickBooks Online ($39.95 per month) is a cloud-based accounting application that includes the most comprehensive set of features for small business. It’s easy to use, aesthetically pleasing, and has numerous integrated add-ons. QuickBooks can also be purchased as a desktop install.

Purchasing the right accounting software and then using it is one of the most important ways to know the financial state of your business. However, if you don’t take the time to extract information from the software, analyze that information and then use it to make decisions, the software is just another wasted purchase. Without knowing how your company has performed financially, it is impossible to predict where it can go. In addition to reviewing the monthly financial statements (profit and loss and balance sheet), consider adding these four items to your think time:

1. The Quick Ratio (> 1)
By definition, the quick ratio is found on a company’s balance sheet and is the business’ current assets (cash and accounts receivables) divided by its current liabilities. A favorite metric of every bank when considering a loan, the quick ratio is a measure of the financial stability of a business. It shows that the company has more cash available than the short-term money it owes. In most industries, a healthy quick ratio should be greater than 1.

2. Top 10 Customers
While all customers are important, not all of them are created equal. Who are the 10 most important customers that contribute to the success of your company? This is measured not only by revenue, but also the additional products they buy. In many companies, these top customers contribute 70 to 80 percent of the total revenue. Remember, it is typically easier to sell more to these established customers than find new ones.

3. Days Sales Outstanding (< 133%)
Days sales outstanding (DSO) is the average number of days it takes for customers to pay. The smaller the number, the better, since the business can use that cash more quickly. The number should be less than 133% of the payment terms with a customer. For example, if terms are 30 days, the DSO should be 40 or less. DSO can be improved by giving out less customer credit or collecting payments more quickly.

4. Operating Cash Flow (> $1)
How much positive operating cash flow did the business produce last month? Profit is important, but cash flow is king. By definition, cash flow is simply the sum of your monthly profit and any changes in accounts payable, accounts receivable and inventory. The higher this number is, the healthier the company is.

Striving to make smarter and more profitable decisions is the basis of financial success. Having an accounting system and using it to make those decisions is a great start.

Know Your Customer :: Target Their Interest

Diversity is all around us. And with the diversity available within the BioZyme® product line, your customer base could include a family who feeds lambs and goats for a seasonal show circuit, someone else who is a fifth-generation purebred cattle producer and another who breeds prize-winning show dogs. 

Obviously, with such a broad spectrum of potential customers, your marketing plan can’t be a one-size-fits-all. Just as it is essential to know details about your customer, it is just as important to know how to provide a unique marketing approach to fit each customer’s needs.

According to a University of Kansas “Community Tool Box” website
(http://ctb.ku.edu), market segmentation enhances your ability to best use the four P’s of marketing: product, price, place, and promotion.

  • PRICE: Price comes in different forms. A customer may be willing to pay a premium for quality if that is something you know is important to them (see page 8 for an example of how CJ Feed & Supply obtains this information). At the same time, a customer may be willing to pick up product versus having it delivered if they desire a lower cost.
  • PRODUCT: Knowing and understanding customers need different products for their various species and goals will allow you to have a more personal conversation, whether that be in person or through marketing efforts.
  • PLACE: Different customers can be reached in different places. Perhaps you have a customer who wants you to call them on a regular basis, while another appreciates a personal visit to his or her operation. A group of customers might benefit from an email that highlights upcoming price changes for products you know they use regularly, and another group might appreciate the
    opportunity to attend a producer meeting.
  • PROMOTION: Each customer responds differently to
    marketing and advertising. As mentioned in previous
    newsletters, the BioZyme marketing staff has tools
    (email, direct mail, texting, signage, etc.) and resources
    available to help you reach these customer groups.
    Contact Katie Vaz, Marketing and Communications
    Manager, at kvaz@biozymeinc.com or 816-596-8782  for more information about which marketing tools are available and best suited for you.

Since you know your customers best and their specific needs, it is important to be able to relate to their needs. Is breeding season approaching in your particular region? Perhaps you begin heavier promotion and offer education on the benefits of ConceptAid®. Do you have several customers who show pigs during a summer jackpot series? It might benefit you and those customers to attend the first show of the season to promote Vita Charge®.

Targeted marketing quickly shows each customer segment that you care about their specific needs and have the products to meet those needs. This type of marketing positions you as a specialist in  the eyes of your customer and encourages  them to seek you out when they have a question, problem or product request. This relationship-building marketing strategy will draw your customers closer to you and make them more willing to invest in you and your products instead of your competitors.