Sales and Marketing

Partner Up

SBOCTeam — Mon, 12 Jan 2009 15:44:00 GMT

Broadening your network of business contacts and seeking out additional referral partners is an excellent way to let your friends build your business for you. Just make sure you return the favor

By Max Berry

You can never have too many people in your corner. That goes double for a small business owner. Without the resources for a massive advertising campaign, an entrepreneur needs to rely on a little help from his friends to spread the word. Seeking out a fellow entrepreneur-or several-to help spread the word about your product or service can help you get new business the old fashioned way: through word of mouth.

The Power of Diversity
"Diversity is key," says Dr. Ivan Misner, Founder and Chairman of global business networking organization BNI (http://www.bni.com). "I mean diversity in every sense of the word. Most networks are clumpy, they're cluster-like, and they become insular." An entrepreneur may have the tendency to seek referral partnerships with small business owners solely from his or her own field. After all, how much help, for instance, could a Mary Kay consultant be to a film producer? As it turns out, quite a bit.

Misner recounts the story of a Mary Kay consultant visiting a client's home to perform a facial. When the client's husband, a film producer, came home disgruntled about something at work, his wife asked him what was wrong. A graphic designer he'd lined up for an important film project had just backed out and he found himself in the lurch. But the Mary Kay consultant, on hand to perform her own business, happened to be carrying the card of a graphic designer she knew. She gave it to her client's husband, who called the designer and struck up what turned into a long-term, and exceptionally lucrative, working relationship with the designer.

The story illustrates the reasoning behind Misner's belief that an entrepreneur should never rule out a helping-hand partnership with anyone. As he puts it, you never know "whose house someone might be in."

"A powerful network has people who are connectors, those who connect you to people you never would have met otherwise," says Misner. "The more connectors you have, the better off you are."

Help!
When looking to connect with a fellow entrepreneur, there is one key mistake every small business owner should steer clear of. "Too many people are looking to close a deal," says Misner. "It's a huge mistake to build a business that way." People, especially small business owners with their own bottom line to think about, often resent an unsolicited pitch, especially when the pitch is couched in a disingenuous affability.

To build a strong partnership, a small business owner must first build trust. And the only sure way to trust is through sincerity. "You have to find an opportunity to help someone in some simple way," says Misner. "And help doesn't mean ‘sell a product.' Help means ‘help.' When you meet a like-minded small business owner, talk to them. Ask questions. If rapport builds, ask them what the biggest challenges are in their line of work and, if possible, show them a route they may not have been aware of. Refer them to someone in your network who may be able to lend a hand. The broader and more diverse your network of referral partners becomes, the more readily you'll be able to do this-and the more likely your partners will be to refer someone to you if they find themselves in a similar position. As Misner likes to say, "Networking is more about farming than it is about hunting."

Come Prepared
"The problem is we don't teach networking in schools and colleges," says Misner. "[Schools] teach advertising [as if] every college graduate, in their first job, gets to run a multi-million dollar advertising campaign." Of course, few small business owners, let alone recent college graduates, get to do that. Instead, you need to rely on some basic, day-to-day practices to increase your chances of forming a valuable referral partnership.

Always carrying a business card is rule number one, but Misner recommends taking the practice one step further. Not only should you carry your own business cards, but also-remember the Mary Kay consultant-the cards of your referral partners. This is an instant means of spreading the word about the people in your network. Once you do so, they'll be more than happy to return the favor.

There are also established services, like Misner's own BNI, that will provide referrals for you and put you in touch with other entrepreneurs looking for referral partners. The Referral Institute (http://www.referralinstitute.com) is another organization that gets Misner's endorsement.

"You can network any time, anywhere, any place," he says. The key is to keep your eyes open for the right person and be ready to make contact. As Misner puts it, "Networking is a contact sport. You've got to get belly to belly."

Staying Sticky

SBOCTeam — Sun, 09 Mar 2008 08:13:00 GMT

How to hold on to your customers and their critical revenue

By Chris Freeburn

Attracting customers is one of the hardest tasks a small business owner faces. Keeping them can be just as tough. Unlike large businesses, which can sometimes sustain a high turnover in customers, small business owners often don't have the luxury of large marketing and sales budgets to continue to acquire new customers. "Businesses succeed or fail based on their ability to bring people through the door and convincing them to spend money once they are there," says John Tschohl, president of the Service Quality Institute. "How the customer is treated once inside determines if they will ever come back."

Incentives
One way to generate repeat customers is to give them a specific reason to come back. "If the consumer feels that he or she is getting something concrete whether that is in terms of savings on an item they want, or some sort of added good or service that may be enough to draw them back to your business, and hopefully to get them to spend some money," Tschohl says. Incentives can come in a variety of forms. Discounts are always a good draw and can be customized to fit a variety of needs. Try handing out cards offering discounts on specified items to customers whenever they purchase something. Small gifts with certain purchases are also a good idea. It's also a simple fact of human nature: People like to win things. So in store contests that offer interesting prizes are a good way to draw customer interest as well.

Give your best customers the best rewards
It seems obvious, but many businesses, both large and small, do not expend the effort to offer a graduated reward system. Without different levels, your low and high value customers are treated the same way, leaving your best customers feeling under appreciated. With only one level of award, there is also no incentive for low value customers to aspire to a higher tier by continuing to purchase. Setting up a system that begins with a simple "Thank you for your business" personalized note and progresses though periodic coupons, up to permanent discounts or automatic service upgrades can be easily accomplished by businesses of almost any size.

Referrals
One of the most power ways to advertise your business is by word of mouth. Potential customers are much more likely to visit a business that has been recommended to them by a good friend, family member, or colleague. You can convince your customers to spread the word about your business by rewarding them for doing so. Those rewards can take the form of discounts on specified goods or services or small gifts for each new customer they bring to your business.

Make the Experience Count
Keeping customers happy is the best way to bring them back. A satisfied customer is a hundred times more likely to come back than a customer who had a so so or negative experience. The keys to success in customer experience are simple. Keep your place of business clean, professional, and attractive to the eye, and keep customer interaction with your employees easy and cordial. "Be attentive to customer complaints and be willing to go the extra mile within reason to handle any problems," advises Tschohl. Make it easier for your customers to do business with you than with your competitors. One of the best ways to find out how your customers feel about your business is to ask them. What do they like? What don't they like? Are there any products or services they need that your business doesn't provide? You can ask customers their opinions at the time of sale, or provide them with occasional questionnaires for their feedback. Making changes based on customer input can keep existing customers coming back.

Reach out and touch your customers
Another critical means to draw customers to your business is to make sure they keep you in mind. Your small business may not be able to afford a radio or TV marketing campaign and even newspaper ads can be pricey. Nevertheless, most businesses can afford a mailing campaign, targeted at their most frequent customers. Sending out discount coupons or news of recently added products or services, or community activities in which your business participates is a good way to remind customers about your business and prompt them to come back. Email is also an extremely cost effective means of reaching your customers. Many small businesses use email to alert customers to discounts and promotions, or provide ongoing information about products or news about the business itself. Such emails can keep your business in your customers' minds, even if they aren't considering an immediate purchase.

Make It Easy for Customers
A sure way to keep your customers coming back is to make it as easy as possible for them to purchase goods and services from your business. Increasing the number of ways a customer can access your business is a good start. Do you have a website? Can your customers order goods or services and pay for them through that site? Since most customers begin the product research on the web, your company should have at least some sort of web presence. But just having a website that advertises your business on line won't cut it anymore. Increasingly customers expect to be able to research and purchase online. If your website isn't able to handle ecommerce, then you have already lost potential customers. Setting up an ecommerce website is relatively easy; your web hosting company or ISP (internet service provider) can usually walk you through the process of turning your website into an online storefront. The frenetic competition between traditional phone carriers and new players, including cable and Internet companies offering VoIP (voice over Internet protocol) telephony options, has lowered the price and range of services available to small businesses. Adding a professional phone network to your business, or a 1-800 number, is now relatively inexpensive. Companies that advertise 1-800 numbers are more likely to attract customers, who may infer a larger sized business from a toll-free number.