Stagnation or Survival

Over the last few weeks I have been revamping my website. Why? The current financial crisis will see the demise of many businesses. Will yours be one of them?

Whether you’re a financial advisor, real estate agent or other services provider, if you take a passive approach to building a client base your business will eventually stagnate. To maintain and grow your client base can be time consuming but it is absolutely necessary for long-term success – regardless of services rendered.

Lead Generation

Lead generation is as simple as it sounds. Finding individuals (leads) who might be interested in employing your services, but for many professionals it’s the least appealing aspect of owning or being part of a small business. It’s sales and for some just the word has an unsavoury quality to it.

A comment like: “Best accountant I ever had. Saved me a bundle on taxes this year” can instantly generate a new client. However, if you’re new and growing – building that word of mouth network – you have to be proactive. You have to generate leads.

As a general rule of thumb you should have 10 active leads in the pipeline at all times.

Where to Start

Don’t assume everyone knows what you do.

Write a template letter. A basic introduction that can be reused as necessary. Use the letter to illustrate out the client-specific results your service offers. Don’t sell services; sell results.

Start with a list of people you know. You already have credibility with these people. Then expand your list. Friends of friends, old business colleagues, suppliers and others in your contact base.

Other Ways

• Networking
• Breakfast seminars
• Social sites
• Public Relations and Media

are just a few of the ways I build exposure.

And don’t forget, in today’s world an informative, easy to navigate website is essential.

Isn’t that where you go to find out about people?

Truth in the Face of Authority

I’m often called upon by clients to solve a problem. An outsider’s impartial point of view is helpful when solutions aren’t being developed in-house, usually because the stakeholders are too close to or vested in the problem to see the solution.

Sometimes, when I consult, the problem is small enough to be fixed quickly – another step in a procedure or a streamlined, digital content management system networked to outside sales personal. So, step one when meeting with a client is to define the players and gather their views on the cause, scope and solution to fixing the problem. Invariably, during this discovery phase I hear all sides of all issues. I also hear statements that are made in the “strictest confidence.”

Other times, I’m called to assess and solve a problem that has progressed to the stage of jeopardizing the company’s viability. These are “life-preserver” situations where a quick solution is the only answer. In these cases, I interview owners, managers and employees, again, to gather various points of view, sometimes in “strictest confidence; don’t use my name.”

The Two Causes of 99% of All Business Problems 

Read the rest of this article here.

Pay-Per-Click: Scam or Gold Mine?

I’ve received a handful of emails from friends and clients asking about whether they should add a PPC (pay-per-click) program to boost site revenues. I’ve studied PPC programs and learned a great deal about them – enough that I can warn my clients and you away from this form of on-line advertising.

Google AdWords and AdSense

Perhaps the best known of the PPC programs, Google AdWords and AdSense appear as the 60-character blocks on the right hand side of SERPs and web sites. They’re ubiquitous and, in my opinion, all but invisible they’re so commonplace. But that’s not the only problem I have with PPC programs, and Google’s AdWords and AdSense in particular.

With AdWords, you create those blue-cube links to your site. You bid against others (often deep-pockets bidders) for the most highly-used keywords which will, naturally, come up more frequently and consequently deliver more impressions. Now, AdWords, according to Google, are supposed to be placed contextually. For example…

…if your site sells wine accessories on-line, your AdWords cube would organically appear on oenophile (somebody who has a passionate interest in wine)  websites. At least that’s the way it’s supposed to be. However, I discovered numerous complaints from AdWords buyers that their links appeared on sites that had nothing to do with the topicality of their sites – a cruise ship link on a site leasing oil and gas rigs. Huh?

But it gets worse. I also discovered more than a few AdWords users who actually discovered their links on foreign language web sites. Would you click on a link written in Chinese? Or Russian? Well, neither are the Chinese or Russians going to click on a link in English so what good do these impressions do the AdWords subscribers. None, even though they’ve bid on keywords that are supposed to be related to the subject of their sites. Instead, your car parts store site link appears on an Armenia site selling combines.

AdSense is the reverse of AdWords. You agree to allow Google to place AdWords on your site and you earn revenue each time there’s a click through. Sounds like a good idea.

I don’t agree. I think those AdWords skyscrapers in the fourth column right give any site a low-rent, carnival midway look. Imagine logging on to the site of a law firm and seeing a stack of PPC blocks running across the top of the page, or down the side or across the bottom of every page. This is a law firm interested in generating revenues not helping clients, ergo, not the law firm for you.

PPC Fraud

One of the positives of PPC advertising is that you only get charged per click. No clicks, no charge. You can also set a limit of advertising outlay over a certain period of time, you can prevent cubes from direct competitors appearing on your site and, in fact, define what are acceptable AdWords for your site.

However, PPC click fraud can very quickly gobble up any AdWords budget and despite protests to the contrary, Google has yet to take an pro-active stance against this burgeoning problem. Frankly, there isn’t a great deal of motivation to take action on Google’s part because: (1) they are the biggest PPC purveyors with the most expansive reach and (2) Google gets paid for the click whether it’s legit or fraudulent.

PPC fraud is simple. A competitor site owner and all of his friends click on your PPC links at 50 cents per click. It won’t take long for your $20 PPC budget to disappear. And not a single sale.

Ah, but the plot thickens. There are actually gangs engaged in click fraud. Sweat shop workers are paid a penny a click each time they click on a PPC ad that appears on their “client” list.

There are PPC fraud programs that change IP addresses so all the clicks don’t come from the same competitor’s IP address. Too easy, but technology makes it possible to scramble IP addresses with each click.

Now Google promises to return revenues derived from click fraud but it’s up to the victim to prove the fraud! Like I said, Google isn’t really motivated to crack down on click fraud.

Is PPC Good for Small Australian Service Providers?

No. I wouldn’t recommend it for a couple of reasons.

First there’s the fraud problem and Google’s apparent apathy concerning an immediate fix (though fixes are in the works, we’re told).

There’s the expense, especially when you’re competing against deep-pockets competitors for the most popular keywords. You could easily spend $5 - $10 per click. Easily. And there’s no guarantee that the site visitor is qualified or “just looking around.” In other words, they have yet to be converted to buyers.

Third, small service providers are looking for regional business and with Google’s track record of contextual AdWords placement, your link may end up on the site of a Finnish ski resort. Not exactly a placement to drive traffic.

I think young e-businesses should spend time establishing links with similar but non-competing sites. Time should also be taken to optimize every site page and to employ guerrilla tactics to pick up some pixels and get a little link love.

There may come a time when PPC makes sense and there are actually companies that track your site’s PPC activity for signs of fraud, which shows you how widespread the problem is, but they are effective and worth the expense if you add Google’s AdWords to your marketing arsenal.

Until then, cash is king. Don’t waste it or lose it to scammers. 

How a Country Motel creates a Point of Difference

Driving from Canberra to Adelaide this week I spent the night at the Saltbush Motor Inn (http://www.saltbushmotorinn.com.au/) in Hay NSW.
(http://www.visithay.com.au/)

I have stayed here three times now and here’s why:

* The rooms are spotlessly clean
* The beds are comfortable
* The hot water is hot and plentiful

I can hear you saying so what, that’s what you expect everywhere. But they also:

* Have free Internet in every room (common in the US but usually cost $25.00 a day in Australia). Australian hotels seem determined to build Telstra’s portable modem business.
* Give every guest a little pack of delicious home made cookies (and yes they have the standard free biscuits in every room)

What is your point of difference?

Collect the email addresses

A friend (and client) phoned me after seeing my last post to remind me that I always tell him to be sure to collect the email addresses of customers, prospects and enquirers as well.

He’s right. If you are building a business you need a constantly growing database. The email address should be part of the customers’ initial information record along with his/her address, telephone number and other pertinent information.

Using a simple content management system (CMS), you can generate an email auto-responder asking customers, new or established, if their last transaction with your business was satisfactory and “If we can help in any way, please contact us.” It’s an opportunity to gather first-hand marketing data, identify “holes” in your client care operation, and ensure that a dissatisfied customer becomes very satisfied.

A customer who recognises that you’ve “gone the extra mile” to fix a problem is one who will remain loyal because s/he recognises your commitment to their satisfaction.

Web Technology and Customer Care

I was trying to find the phone number for an Australian State Government department the other day. After searching their website for about 10 minutes I found the details buried in an obscure page.

If you conduct some parts of your business digitally, that is, online, you have access to additional means of ensuring customer satisfaction.

On your website, be sure to include a “Contact Us” page that provides numerous channels of communication. Be sure to include a telephone number (preferably toll-free), a street or mailing address for those who still use snail mail, an email address, and, finally, include a box that equips an unhappy customer with a fast and easy means of dashing off an online complaint and sending it off with a single click.

All of these online communications should be directed to your (the owner or manager’s) inbox – even if you have a customer service department. As the head honcho, you should be aware of customer problems. 

In a Wired World: Bad News Travels Fast

Customer care is at the core of any successful business. Without well-tended clients or customers, your business may survive, but it’s unlikely to thrive. If you intend to grow your business, customer care has to be at the top of the day’s agenda. Everyday.

Last year I was on the organising committee for a conference that was held at a premier conference resort.  From the moment I arrived at this prestigious and pricey venue, I ran into case after case of mishaps and missed opportunities.

It started when I arrived very late at night and was told that I didn’t have a reservation.  My room reservation had inexplicably been changed by the hotel staff. Now mind you, I’m on the organising committee of this shindig. And I don’t have a room. Okay, mistakes happen but I don’t want excuses, I want solutions.  And to be fair this issue was resolved quickly.

But things got worse. After several “minor” incidents I asked the Meetings Assistant Manager why we’d run out of dessert at the opening night barbeque.  Her response was “overeating.”  She later complained to her manager that I had been “too aggressive” in querying why we’d run out of food, and her manager wrote a letter of complaint to the conference organizer.

Memo hotels: You don’t write letters of complaint about customers unless it’s a rock group who trash a room and you’d like reimbursement.

What really concerned me was that the staff totally ignored the fact that the resort had run out of dessert, and further down the time line we also ran out of both meat and salad on one of the buffet tables.

In each case complaints were met with excuses not fixes to what were obvious systemic problems in the kitchen. Unfortunately, this was the approach the resort took throughout our conference. Excuses.

The last experience is the one that remains uppermost in the human mind. That’s the nature of perceptions.

You may frequent a certain eatery for several months and enjoy the experience each visit. Then, one evening, you’re seated at the “table time forgot,” and assigned a waitperson who makes a point of ignoring you. Going back to that restaurant next weekend? Not very likely, even though you’ve enjoyed yourself there three out of four times.

Bad WOM (word of mouth) is toxic to any service-driven business. It not only slows business growth, the CPA (cost per acquisition) for each new client or customer increases proportionately.

On the other hand, positive word of mouth is no cost advertising. And it packs a real punch. Think about it: you’re more likely to check in to a resort recommended by your neighbour than one you read about in a slick brochure.  

Hotdoggity

I was reading a newspaper article about how we are headed for recession and it reminded me of the story about the man who sold hot dogs.

He was a bit deaf so he didn’t have a radio. He was a bit blind so he didn’t read newspapers or watch television.

But he sold great hot dogs.

He put up signs on the highway to tell people how good they were and stood at his stall calling out, “Buy a hot dog,” to everyone that passed.

And people bought.

He increased his orders of rolls and frankfurters and bought a bigger stand with the latest cooking equipment to take care of his customers.

One day, his son came home from university to help him out.

The lad said, “Dad, haven’t you heard the news? “There’s a huge recession. Unemployment’s at an all time high. Government spending is sending us all broke. No one is making any money.”

The old man thought, well my son’s been to university, he ought to know. So he cut down on his frankfurter and roll orders, took down his signs and didn’t bother to call out to passers by. And his sales fell almost overnight.

“You’re right son” he said. “We really are in the middle of a bad recession.”

 Moral: Don’t stop doing the things that work.

Scientific Networking (part 3)

Depending on how the conversation flows I might ask one or more of:

“What do you enjoy most about your job?”

“What separates you and your company from your competitors?”

“What advice would you give someone just starting out in the stationery business?”

“What do you see as the coming trends in the stationery business?”

“Which methods have you found are the most effective for promoting your business?”

And I always ask,

“How would I know if someone I’m talking to is a good prospect for you?”

My objective is to listen and learn so I will wind up the conversation by saying something like, “Sarah, you might be interested in a paper I wrote about how people can maximise the value of their business.  Would you like me to send you a copy?”

No one says ‘no’.  Offering to send something is non-threatening.  And, if I haven’t already got it, this is the perfect opportunity to get Sarah’s business card.

Sarah might not be a prospect but she could be a great introducer.   Her customers are small business owners.  

After the event, write a handwritten note to everyone you meet and send it within 48 hours.   Say you enjoyed meeting him or her and learning a little about their business and tell them you will refer business if you can.

It is important to send or supply what you promised after the event.  No one wants to carry extra baggage and it gives you the perfect reason to get back in touch.  Follow up with a phone call a few days later.   Where it goes from there is up to you. 

Succeeding in business is not about who you know, it is about who knows you.

The people you meet want to know five things about you:

• Who you are
• What you do
• Who you do it for
• What makes you different
• How you can make their life easier

Make sure you cover off those points in your marketing material or conversations.

Debrief yourself after each networking event.  Were the people who attended the same as you expected?   Did you meet your objectives?  Did you meet the people you planned?  If you paid to attend, was it money well spent?   Did you follow-up?   What could you have done differently or better?

Networking is a great marketing strategy.  Used properly, it will help you maximise the value of your business.

Scientific Networking (part2)

Prepare a list of people you want to meet.   If you can’t get names set numeric targets.   If you are at an all day conference decide how many people you want to meet in the morning, afternoon and at dinner.

It shouldn’t need to be said, but always check the appropriate dress?   You should be dressed at least as well as the best-dressed person in the room.  You also need to be equipped to take notes.

Be clear about what you hope to learn at the event.  I like to get some basic information, promise to send something of value and move on.   That way I maximise my time.   What I offer to send depends on what I learn.   It might be contact details for someone of interest, an article I have written, a book, or something else.

Learning about the people you meet is the most interesting and enjoyable part of networking.   People love to talk about themselves.   My objective is to find out their FORM. 

FORM is an acronym for:

F – Family spouse, parents, children, even pets

O – Occupation, not just what they do now, but how they got started

R – Recreation, hobbies, interests, favourite restaurant, sporting interests

M – Money, because dreams have price tags

I try to find out what he or she does what they have done previously, how they relax, who is important in their life and where they would like to be in the future.

Here is part of a typical conversation.

“Hi, I’m Michael Harrison.”

“Hi Michael, my name is Sarah Turner.”

“Nice to meet you Sarah, what brings you to this event?”

“I am with Corporate Supplies.  We supply printing and stationery to a lot of the companies in this association.  What about you?”

“I work with people who want to maximise the value of their business.  How long have you been in the stationery business Sarah?”

“About three years now.   What does maximise the value of your business mean Michael. Are you a consultant?”

“Yes.   I specialise in profit improvement and exit strategies for business owners.  Tell me Sarah how long have you been in this role?”

Notice how I keep shifting the conversation back to Sarah.   My objective is to learn the names of partners, children and other people who are important, how Sarah relaxes and has fun, what her role is and where she wants to end up – without being pushy.  This is a starting point not an interrogation.

 … more on this topic tomorrow