Innovative Approaches to Generate Huge Sales

July 1, 2010


These days it is impossible to succeed in small business without spending significant amount of money on marketing and advertising. However, many small business owners feel that no matter how much money they spend on advertising they can’t seem to boost the sales they had hoped for.
We saw this happen to our business too when we used to own them. We would send out advertising inserts in the newspaper and direct mails only to see the sales go up by $300 – $400 in the following week. This doesn’t even cover the money spent on placing an advertisement.
After looking at this very carefully and talking to fellow small business owners we realized that the root of the problem was that we were just one amongst the hundreds of other small businesses who were vying for consumers’ attention.
To be successful in this advertising game you have to stand out from the crowd. You have to be unique, may be even idiosyncratic, to get attention of the consumer and bring them to your business. Below we have laid out several approaches that have been tried by several small business owners with great success. These approaches have generated huge jump in sales and brought in number of new customers.
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Filed Under: Customers, Marketing, Sales Tagged With: , , ,

5 Fundamental Rules of Marketing for Small Business Owners

June 30, 2010


Many small business owners we have met have misconceptions about marketing. They think of marketing as doing flashy advertising with catchy pictures and some coupons in newspaper insert or with a direct mail company. This underestimates the power of marketing and the value good marketing can bring to your small business.
We ourselves have fallen into this trap when we owned businesses in the past. The reason many small business owners, including ourselves, do this is because of lack of time and lack of understanding of what marketing is all about. We have thought long and hard about this when we operated small business and afterward. Based on that we have come up with 5 fundamental rules of marketing that when used properly are sure to improve your sales. Here they are in no particular order:
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Filed Under: Customers, Management, Marketing Tagged With: , , ,

Go Above and Beyond Customer Expectations

June 22, 2010


I came across this interesting article showing examples of excellent customer service from some of the companies you may already know. I am sure we all have experienced this type of customer service in our daily lives. Usually, it is easy to find this with small mom-and-pop businesses that are close to their customers and know them by names. We wrote one such example in my personal life not too long ago here.
We have come across some more well-known companies that strive to provide the best customer service every day. Below we have listed some of them along with examples of why they are famous for their customer service.
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Filed Under: Customers, Employees, Marketing Tagged With: ,

More Ways to Pamper Your Best Customers

June 22, 2010


In the previous blog post we argued that for many small businesses their best customers contribute more than 30% of sales and profit even when they make up only 10% of total customer. We said that you have to make these customers feel special by giving them special treatment and recognizing them.
In this post we will explore additional ways by which you can treat your best customers in a special fashion.
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How to Pamper Your Best Customers

June 20, 2010


As we mentioned in the previous post on “Do you know who your best customers are?” for many small businesses their best customers contribute more than 30% of sales and profit even when they make up only 10% of total customer. Not only this; but there is additional benefit they generate for your business that is equally important. They are also your evangelists. They bring in additional business by spreading word about your business to their friends and families.
Given the importance of these customers to your business it is imperative that you take good care of them and give them special treatment. These are, after all, the customers that will help you grow your business.
So how do you treat these customers well and pamper them? The key to remember, when taking care of these customers, is to make them feel special. After all, they are kind of special to your business! You should not limit yourself to discount and free products when providing them special treatment; although they are important. You should also think about intangibles such as recognition, appreciation, etc.
Below we have listed several ways by which you can pamper your best customers and make them feel special. Feel free to add your voice in the comment section.
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Do you Know Who your Best Customers are?

June 17, 2010


For most small business their “best” customers contribute more than 30% of sales and profit even though they make up only 10% of total customers. Think about this!! These are the customers that help you pay your bills. Not only do they deliver you more sales and profit directly; but they also help you increase sales indirectly by spreading good word about your business to their friends and families.
Given the importance of these customers it behooves you to know who they are. Unfortunately, not too many business owners spend time identifying these customers let alone making sure they are taken good care. In this post we give you several ways you can identify your best customers. We will look at how to take good care of them once you have identified in the subsequent posts.
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How can you Hold on to your Existing Customers

June 15, 2010


As mentioned in previous post most businesses lose large percent of their customers on a regular basis. We identified several reasons why customers leave. In this post we want to give you tips on how to make sure you retain large portion of your existing customers.
Losing a customer can cost you lot more than you realize. Research shows that it costs multiple times over to get new customers than to hold onto existing ones. You have to spend money on marketing and advertising as well as offer them incentives to come to you again. Our advice to all business owners is this – DO WHATEVER YOU HAVE TO DO TO HOLD ON TO YOUR EXISTING CUSTOMERS.
Here are the steps that show how you can accomplish this:
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Do you know Why your Customers are Dumping you?

June 14, 2010


If history is any guide; you will lose about 20% of your current customers by the end of the month and 40% by the end of the year. I know it sounds terrible; but that’s fact of life. While 30-40% of sales for any business come from existing customers; the rest comes from customers using revolving door. They will come and go for a variety of reasons.
This customer churn can be costly for your business. You need to constantly recruit new customers to fill the gap left by those customers who have dumped you. This costs money reducing your profit. It is said that it is 4 times more expensive to get new customer compared to retaining the existing one. We will look at the ways to stop customers from dumping you in a later post; but let’s understand why they leave you in the first place. The reasons are quite varied and some are easier to correct than others.
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What can you learn from Zappos.com’s $1.6 Million Mistake

May 27, 2010


If you are not standing by your core values at the time of crisis and instead take a myopic view of the situation you will miss out on building a long-term, thriving business. Just look at what Zappos, the popular shoe site, went through on May 23, 2010. It lost $1.6 Million dollars within matter of hours. But it’s what it did afterward that is the real story.
For those who don’t know Zappos; it is an online web site that sells shoes. In the process it has built a Billion dollar business!! It has done this by focusing on core tenets of providing exceptional customer service at any cost. Amazon.com just bought the company last month for $928 million.
So what happened?
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Does Your Business have Social Media Strategy?

May 24, 2010


If you don’t have a strategy to deal with Internet and social media you might be in a danger of losing lot of business. Just look at this article in Detroit Free Press past Saturday. To summarize the article – a student from Western Michigan University claims his car was illegally towed from his apartment complex by the tow truck company. He created a Facebook page to fight with the towing company and attracted 11,000 “fans” on the page; who joined him in the revolt saying they too had similar complaints against this company. The result was that that towing company lost half of its commercial accounts.
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