How to Grow a Business

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October 08, 2008

Bad Service is Redeemable

We have marketing experts and research analysts telling us that the customer experience is the only way for most businesses to differentiate ourselves in today's commodities market place. I'm one of those who accept the premise, based on my own research, my readings, anecdotal evidence and my own personal experiences.

Assuming all like products are created relatively equal and can only be differentiated by intangibles such as color, visual design, packaging, bells and whistles, and pricing, I put forth that to make an impact on a customer's experience, product and pricing fall in line behind customer service, which includes the marketing experience, the sales experience, the service experience and the follow-up service experience (i.e., call center, tech support, warranty service, and so on).

With the myriad opportunities to fall down a bit on any piece of customer service, we need to be prepared to jump in immediately to repair a customer's negative experience, no matter how small or how large. Yesterday, I was the victim of small but repetitive service mistakes.

  1. I ordered a 23 oz. beer, my wife ordered a 16 oz. beer. When served, both were 23 ozs.
  2. I ordered my burger well done. It was served rare. By the time our waitress returned, my fries were half-consumed. I told her of the errors, she apologized, and removed my plate to have the burger "fixed," to use her words.
  3. I ordered another beer (16ozs) while I waited.
  4. She returned with a 23 oz beer.
  5. My burger arrived well done, no fries, including the ones I hadn't eaten.
  6. The check included three 23 oz beers, and our entrees.
  7. We paid the check, left and discussed what we believed was a negative customer experience.

Both my wife (a graphic designer with her own business) and I (the owner of a marketing and communications firm) felt that no effort, other than an apology from the waitress, was made to correct the service errors or to redeem the business's brand. We had lots of little ideas that would have made us happy customers and ones who would have returned. The most obvious ones are don't charge for the burger entree but if you are going to do so, at least serve a second order of fries with it.

What are other solutions to redeem the negative service in this example? What would you have done as the owner or a member of the staff? Have you had similar experiences that were redeemed?

October 06, 2008

Social Media/Networking a Marketing Flop

In the rush to tap new tools, always a mistake, companies using social media to deliver marketing results are disappointed. That's what Adam Sarner, an analyst with market research firm Gartner, will share when he delivers his research results at the annual Gartner Symposium/ITxpo 2008 between October 12-16 in Orlando, Fla.

In a recent interview with CNET News, Sarner says that "over 75 percent of Fortune 1000 companies with Web sites have undertaken some kind of online social-networking initiative for marketing or customer relations purposes. Fifty percent of those campaigns will be classified as failures.

"(Businesses) will rush to the community and try to connect, but essentially they won't have a mutual purpose, and they'll fail," Sarner said.

Sarner is saying that businesses are unable to balance their interests with that of their customers. To that I add very few consultants and so-called social media and social networking experts are telling them how to do so. Too many have become social media and social networking evangelists and then consultants, many without marketing or communications backgrounds. They all too often sell tools instead of integrated plans, strategies and goals that meld traditional marketing with Web 2.0 tactics to achieve measurable goals, including ROI (returns on investment as measured in revenues and profits not hits or links).

It's the same old story, which is told not only by non-marketers but by marketers themselves. It's easier to use a tool than to create an integrated marketing plan using carefully constructed strategies, tied to measurable goals and based on customer data that shows what those customers want and need and how they want to be communicated to about those things that meet or exceed their wants and needs.

In my opinion, if a company launches a blog, offers podcasts, jumps into Second Life or has a Facebook page without a plan tied to the business annual strategic plan, they likely will fail in their efforts to engage customers and to achieve ROI. Just as advertising or direct marketing should not be used alone to achieve sales and marketing goals, neither should a social media or social networking tool.

The Bottom Line: Smart companies and their marketing departments should not rush headlong into social media or social networking or any other set of tools without first creating strategies and goals. Once the objective is set and strategies and measurable goals are created to achieve the objective, then tactics (tools) should be carefully chosen to make the strategies successful and to achieve the goals.

October 03, 2008

BlogWell Tickets for Charity

Do you want to learn How Big Companies Use Social Media? You can. On October 28, 2008, from 1 p.m. -5 p.m., at the San Jose Convention Center, BlogWell will discuss that very topic. Now you can attend and do good at the same time. Right now on eBay thanks to the Blog Council and GasPedal, you can bid on a few BlogWell tickets that are up for auction.

100% of the proceeds — EVERY PENNY — goes to charity.

The charities:

  • National Multiple Sclerosis Society
  • Heifer international
  • AmeriCares
  • Dana-Farber Cancer Institute and the Jimmy Fund
  • MusiCares

Rules

  • Bid
  • Bid high
  • Bid often

If you’re looking for a cheap ticket, don’t bother with the auctions.  It’s quicker (and cheaper) to just buy one at our standard $200 admission fee. But if you’re looking to attend BlogWell, do something great, and feel good about yourself in the process, then start bidding!

October 01, 2008

Getting the Most Out of Your Next Trade Show or Conference

It's trade show and conference season and time to gear up your strategies and tactics for success. Whether you are a home business, a consultant, a small business or large, choosing which events to attend and strategies to get the most out of those events are key to ROI and brand success. Here are some ideas to get you started.

  1. Don't attend events because they seem interesting. Attend events based on ROI and what you and your business will get out of them.
  2. Attend events because your customers will be in attendance. Frankly, spending money on events to rub shoulders with your peers is not good business strategy. In terms of learning, most of what you can get by traveling to a conference to hear  speakers, you can get by reading books or through online searches. Expenses matter and add or deduct from your bottom line. When it comes to spending dollars on travel, accommodations and event fees, determine ROI first.
  3. Before you attend an event, spread the word. Use Twitter, Plurk, text messaging, e-mail, direct marketing and your blog to let others know when you will arrive, when you will leave, where you are staying and how they can hook up with you. One on one meetings with customers and peers add to your success.
  4. If you are exhibiting prepare carefully: 1) Get a list of attendees and exhibitors from the event's host(s) and send a brochure and a letter with your booth number to every person on that list. 2) Prepare your exhibit, from backdrop to handouts, to ensure your value proposition and why customers should care about your business are clearly stated. 3) Giveaways should relate closely to your business (e.g., a tape measure if you sell windows, appliances, furniture, etc.). 4) Don't hide out in your booth. Be sure someone from your company is walking the floor at all times, introducing themselves to customers and getting ideas from and intelligence about other exhibitors. 5) Gather business cards by offering a raffle and when walking the floor.
  5. After the event, use the business cards you gathered (whether as an exhibitor or an attendee) to send a personal thank you to everyone who stopped by your booth or whom you met. Follow-up with a telephone call to ask how you can help.

Here are a few messaging suggestions:

  • Keep your backdrop to company name, logo web address, tag line (value proposition), and key bullet points of two to three words. Copy needs to be readable from 15 feet away.
  • Use your business colors.
  • When talking with visitors, don't sell. Listen instead. And respond with a solution if you have one.
  • Ask everyone you meet if they would like to have their e-mail added to your newsletter, white paper, etc. distribution list.
  • Smile. Be friendly. And be interested in others. Don't spend most of your time talking about yourself or your business.

Please share your ideas for success.

September 30, 2008

Fear is Not Your Friend

Yesterday, the House failed to pass a rescue package. The Market responded by dropping 777 points. (At the bell this morning, both the Dow and NASDAQ rebounded slightly.) Fear grew among people from Wall Street to Main Street. It is not the economy I worry about; it is the fear gripping the markets and Americans that scares the heck out of me. In fact, I argue that the current language being bantered about in Washington is responsible for increasing that fear.

Fear caused much of the pain during the Great Depression by creating a fever rush on the banks. (More easily understood, as there was no FDIC then.) It prevented the West from seeing Hitler's threat to the world until he was strong enough to wage war. It extended the Vietnam hangover until Ronald Reagan's administration. And now it's causing many of us to worry unnecessarily about things we cannot control (and perhaps shouldn't even try to control) and causing some of us to act irrationally (by pulling money out of banks and our investments).

I don't want to sound like Pollyanna. The economy is experiencing a serious downturn. Difficult decisions need to be made. For example:

  • Credit is hard to obtain, which will hamper retail during a time when stores normally are setting in inventory for the holidays. Retail needs to find creative ways to finance that inventory.
  • A run on cash is causing banks to hurt and possibly go under because they can't get credit for commercial paper. The FDIC, for example, should increase the cap above $100k to perhaps $250k.
  • Businesses that need credit to meet payroll might have to lay folks off or go under. Try flex time or asking people to job share. Be creative.
  • Our investments are shrinking causing many to run away from the Market. (Keep in mind that if you look at any 10-year period, Wall Street investments always make money, even if that 10-year period includes the Depression. When the Market is down.

The credit crunch and the Market's decline are serious. But responding to them with fear and trepidation, especially as a business, is wrong-headed. As FDR said, "We have nothing to fear but fear itself." Meaning, it was, and remains, fear that drives such things as a credit stoppage. Be fiscally conservative, of course, but if you stop infusing your business with capital and growth, you might not be in business much longer.

I believe those businesses that use creative thinking and innovation and actively work to grow their business are the ones most likely to succeed. Some budgets might have to be cut. Some jobs might be lost. But keep the customer experience great, meet customer's wants and needs, and continue to market your products and services aggressively.

What's the alternative? Live life or die. Business is a risk. We knew that going in. We reduce the risk by being proactive, not by running away and hoping a downward market spiral doesn't catch us.

September 29, 2008

Suck It Up! Life is Hard

I once said that to my young wife more than 30 years ago. It may have been the dumbest thing I ever said to her. Especially since we were atop a mountain in New Hampshire, and a thunder storm approached. I've been apologizing ever since.

On the other hand, there is some truth to those two phrases, although likely a better way exists to share the thoughts. Here's the thing: Currently, many of us seem to be living in fear of terrorists, the economy, our jobs, our business, our savings, our pensions, and the list goes on an on. Fear is a paralyzing emotion. Not one that results in many benefits. So, might I suggest we move beyond fear to action (suck it up). Like my dad used to say, "Life is hard, then we die. Make the most of it while we still have breath."

I have lived most of my life in that way. Life is too short and too wonderful to allow the intrusion of fear. "But, Lewis, it sounds as if you live in denial and are dating Pollyanna," you might be thinking. "Never," I reply.

Reality doesn't escape me, but I don't let reality scare me. Instead, a little like Pollyanna, I guess, I look for the bright side and work to make it part of my life. It must work. I'm a lover of life, of America, the world, and the planet. Been married 34 years, and have had a good career. My life is full of music, art, good food and drink, and lots of fun. I have never wanted to make a ton of money but always enough to meet our wants and needs.

But this isn't about me; it's about you. Others sometimes come to me for advice. I never offered much until recently, when my 5th book inspired so many that they felt compelled to thank me. I changed my mind about the advice. Perhaps I can serve others by sharing some the guideposts I use to love life. Nothing extraterrestrial, but you might find some of these things helpful during this difficult time.

  • Smile as often as possible.
  • Say hi to strangers.
  • Open the door for someone.
  • Tell a family member you love them.
  • Work hard and always do the best you can.
  • Enjoy the arts, from rock to classical, ballet to ballroom.
  • Participate in life. Get off the couch.
  • Work to have a successful marriage.
  • Be a great employee.
  • Be an honest and a friendly entrepreneur. Do something to grow your business every day. Provide value. Treat customers and employees like the special people they are.
  • Hug a son, daughter, niece, nephew or grandchild.
  • Pray.
  • Serve your country, town, city, and/or neighborhood.
  • Be a friend.
  • Do the right thing.
  • Know how much money and materialism is enough, and enjoy what you have.
  • Enjoy simple pleasures.
  • Go for a walk.
  • Take a hike.
  • Sit alongside a brook.
  • Cook a special meal.
  • Go out to a club.
  • Go to a concert.
  • Spend time with family.
  • Give more than you get.
  • Pray, in your own way.
  • Solve the problems you can control and let go of the rest.
  • Be active and engaged.
  • Always put people first.
  • Lead with your heart.
  • Be happy. No one likes a sad sack.

What did I miss? Please add to the list, if you can. And feel free to share.

September 26, 2008

A Book is Reborn

Many of you know and have purchased my 5th book called Lead With Your Heart. I thank you. I also thank all the readers who e-mailed or called me or wrote in their reviews that they were surprised by the level of business advice provided. Because of tHow_to_grow_a_businesshe title, they thought the book would be warm and fuzzy. And then, many of them got to know me and realized there's not much warm and fuzzy in the way I think about business.

Although surprises can be good, not so when they are driven by misleading book titles. Although the premise of the book is about putting people first and leading, not managing, using both the heart and the mind, this is a book first and foremost about how to do that and grow a successful business. Therefore, my publisher, at my request, redesigned the book cover, and I made subtle changes to the text, so that readers can tell a book by this cover.

Here is the book's description: How to Grow a Business by Putting People First is about changing the way you do business. It introduces a business model that will result in growth, revenues and profits and a better world in which to do business, work and live. It is written to inspire executives, managers and entrepreneurs to invest in this way of doing business and make it the first step to changing the world we live in.

How to Order at A Discount: If you would like to purchase a copy of the book with the cover, send me a check for $17.95, a 20% discount. I have 8 left. If you would like a copy of the book with the How to Grow a Business by Putting People First cover and text changes, send me a check for $19.75, a 10% discount, and I will send you a copy. I will have to order the new books from my publisher, so there may be a delay in shipping. Be sure to include a return address. Price covers shipping costs.

Of course, you may also purchase the book directly from HRD Press by clicking here or from Amazon.com by clicking here.

Mail check to: Lewis Green, L&G Business Solutions, 651 Country Club Road, Avon CT 06001-2319

September 25, 2008

Customers Don't Want to Talk to Your Product

Each of us is inundated with bad economic news, making it easy to cut back on anything that costs money. Don't. When everyone else is being super-cautious, this is the time for business to move from good to great. When everyone else is pulling their heads in, poke yours out. Get noticed. Rise above the pack. Here's a few suggestions how:

  • Do something every day to market your business and yourself.
  • Send thank you notes to current customers.
  • Send a sales letter to several potential customers.
  • Attend a chamber event or a professional meeting.
  • Join a professional group to which your potential customers belong.
  • Treat every customer as if they are your only customer. Offer them a discount on your services or products over the next six months.
  • Check up on former customers and clients to ask how they and their business are doing. Ask how you can help. Offer them a discount, as well.
  • Reach out sincerely, be giving and appreciative and be positive.
  • Be human. Customers don't want to do business with your product; they want to do business with you.

Have a great 4th Quarter!

Read More: For Seth Godin's take, read Looking for a reason to hide.