Be Proactive in your Customer Service

Stephen Mutch, a business management, operations and client services professional from Napa, California says this about great customer service: “At the most basic element, great customer service  is (all about) fulfilling promises.  Failure to do that leads to loss of credibility and trust in your company and organizations which have fatal and long-term ramifications.”

Marketing and promotions can be accomplished in many forms and from a number of different mediums.  Some strategies are designed to reach a great number of people, while others focus on targeting and reaching a specific customer demographic.

Regardless, fostering great relationships with your customers are of utmost importance.  It’s often a  challenging task as consumer needs are constantly evolving and must be frequently monitored so as to make the necessary adjustments.  This is why a number of companies are employing “reputation managers” who constantly monitor blogs, social networks and other information sources on the internet to keep up with what people are saying about their brands.

It’s been said here many times before, but the best way to get the information you need to be successful is to establish many contact points with your customers.  And how else to do this effectively, inexpensively and efficiently but through social media!

So this week’s tip:  Take charge of your customer service!

Seattle-based Decho group, a technology development firm, doesn’t wait for customers to contact them with questions, comments or concerns – they seek them out directly by using social media tools.

ITBusiness.ca reports on their strategy: “‘Increasingly, they are choosing to reach out to the online community and ask questions about our products, rather than contact us directly,’ said Dave Robinson, vice-president of marketing at Decho.”

Amazon.com demonstrates pure mastery on this front.  They were featured on the cover of Business Week Magazine earlier this month because of their ability to turn potentially bad publicity into an opportunity to brand themselves as a caring company.  Here’s an exerpt from the article:

“For the most part, Amazon has earned a reputation for strong service by letting customers get what they want without ever talking to an employee. Sales clerks are nonexistent. Orders ship with a few mouse clicks. Packages arrive on doorsteps quickly. It all happens with monotonous regularity even as the number of customers has doubled in the past five years to 88 million. But when things go wrong at Amazon—and they occasionally do—the company’s employees get involved. That may be where Amazon stands out most markedly from other companies, and helps explain how the company earned the No. 1 spot on Business Week’s customer service ranking this year.”

When a business reaches out to their customers and does everything in their power to make them happy, they remember it, sign the company’s praises in their blogs, and tell all their friends.  A gesture which may cost $20 to fix could result in $2000 worth of business from valuable viral word of mouth.  A failure to pony up that same $20 in the event of a mistake could cost $2000 the other way.

Bet the Farm

It’s a paradox of sorts, but as the world gets bigger and bigger, it really has begun to shrink.

Consumers have grown weary of suspicious ingredients in their food, ambiguous claims on packaging, and misleading statements in advertising.  People just want some organic goat cheese (thanks Cha-Cha, pictured above) containing ingredients no longer than four syllables.  This doesn’t have to be an expensive burden on restaurants and food manufacturers, who might be tempted to secure cheaper “natural” products from a large-scale manufacturer with cozy rolling hills on its labels.

As we grow, the world begins to partition off into small sects which must be self-sustaining in case oil someday rises to $200 a barrel and hiring that truck from South Carolina will no longer make financial sense.  But the few extra pennies we spend now supporting our local farmers and food producers will not only create strong and fair local economies, but also serves as a fantastic opportunity to market with these hard-working individuals.  The consumer wants local, organic, farm-produced food, and though they may not be as willing to spend a whole lot extra for it now, this trend will increasingly become the norm.

The marketing tip is for restaurants and suppliers:  Bet the Farm!

Restaurateurs, start making connections with local farmers and suppliers, and craft feature menu items around their products.  Have a daily menu item, or a special evening that features locally-sourced products.  Studies show that customers are interested in the back-story of these individuals, so include a write-up about one or more of them or their products and slip it into the evening menu.  Increasing your support for these businesses will probably result in better deals for you (especially if you offer the exposure), and it’s a win-win for the local economy.

Remember: 2% of the world grows food for the other 98%, and with arable land shrinking, it’s best to plan to be locally sustainable now.  Your customers will love the novelty.

Don’t Forget the Kids!

Restaurants have for years focused marketing campaigns towards kids, but this demographic will play an increasingly important role, especially when it comes to healthy offerings, according to a survey from the National Restaurant Association, as reported by Marketing Daily.

It’s often hard for the parents to say no when the kids are hounding them about a Happy Meal. Marketers understand that to get to the parents, it’s sometimes just as effective going through the children.

Denny’s has a well-publicized Kids Eat Free Tuesday, which has been widely successful. IHOP and numerous other establishments use the same techniques.

While this promotion may not fit well with your brand, it’s important to accommodate this important demographic in your restaurant. Used in conjunction with healthy and local eating options, this idea can score points with both young and old.

For ideas on creative promotions, visit Coupon Divas to see a listing on how some of the big names cater to the kids.

Promote your Expertise

The internet has afforded people the luxury of having a voice, and what better way to use that platform than to share your expertise with the world for the benefit of your readers and business.  Writing and posting articles on blogs, social media sites and other professional outlets is a lot cheaper and more detailed than saying what you or your business does in a 3-line newspaper or Yellow Pages advertisement.

Use any opportunity you can to promote your knowledge to the people who will respond to it the most.  Supplement your services by offering tips, strategies, and other jewels of wisdom you’ve learned and allow others to benefit from your insight and experience.  This can be done on your website, through a blog, or via collaborative efforts with colleagues.

Newsletters are a great way to disseminate this information, so don’t be shy about sharing a little insight with your loyal fan base.  It’s a great marketing technique – possibly the most effective bang for your buck.  Speaking of bucks, maybe if you give away your famous carrot cake recipe, your lawyer and accountant may return the favour.

Even if you Hate Networking…

When the Harvard Business Review speaks, it might be a good idea to listen.  Especially when they tell you Networking (with a capital N) is a good idea.  It might be painful at first, but developing an effective networking strategy is crucial to business success.  Here are some tips from our friends at Harvard (Ok, I knew a guy once) which you must start reading right away!

Manage your Online Reputation

When faced with volatile economic consitions, many businesses, especially those on shoe-string budgets, are often uncertain how and where to best invest their marketing dollars. One can’t-miss strategy is to apply your resources to managing the reputation of your business. In today’s online marketing world, your customers want you to forge relationships with them, no try to be salespeople. Combine your search engine optomization with online public relations tactics called “online reputation management” to facilitate word of mouth, enhance media coverage and improve sales efficiency.

Here are some ways to manage your online reputation:

For you to successfully manage your online reputation, research the search results for your business and monitor social media outlets for mentions of your name, brands and key people. This means looking for both positive and negative commentary.

If you find negative commentary or reviews about you posted to the web, take the opportunity to respond and appropriately deal with the situation quickly, before it takes on a life of its own. This, of course, means utilizing and maximizing your existing web presence to help you squelch bad press.

Managing online reputations also involves discovering positive commentary and recognizing “brand evangelists.” You would do well to have a proactive reputation management and monitoring program in place, which, combined with good storytelling, strong search engine optimization and link building, will set you up for success in any economic condition — good or bad.

Employ “Cause” Marketing

We all know what impact the economy is having on our businesses, but imagine the crunch being felt by charities and non-profits.  As our dollars are being stretched to the limit, these organizations are the first to feel the pull.  But there is a potential solution which could help both your business and a worthwhile cause: contribute your services to a charitable venture.

Research a cause you would like to support (community-building, social services initiative) and offer your business services in a fund-raising or other similar capacity.  This union will allow you the possibility of sharing marketing platforms (donor lists, media contacts, etc.) with your charity to fill seats at events.  Depending on the arrangements, you may receive a set fee or a percentage of the proceeds with the rest going to the nonprofit.

The opportunity to offer additional services, obtain contact information and develop relationships is the real benefits for your business.  This venture could generate more sales for your good or service, and the non-profit benefits from increased awareness and publicity.  There may also be tax advantages as well.

The community benefits from the service you provide, the organization benefits from funds and publicity, and you benefit from increased cash flow, publicity and new business relationships.  People who rely on the charity of others for food, clothing and shelter – the basic necessities we take for granted – win through your generosity.

Utilize Customer Testimonials!

Testimonials are one of the most underutilized marketing tactics available to all businesses.  What you need to do is at the end of a successful engagement with a customer, just ask them if they can put a few words down about how happy they are about whatever product or service you supplied them.  This could be how happy they were with delivery, the quality of the workmanship, the thoroughness of the follow-up; just the overall satisfaction they had with your business.  That now becomes a powerful testimonial you can use with your prospect that will help them become your next customer.

Special expanded verison: So you’re in a recession…

Happy New Year to all, and may we at Industry Blender wish you business success in 2009!  The holidays have passed and now its time to face the facts: The economy is “correcting itself.”  Not to worry; value is out there, and strategies for maximizing your dollar await exploration.  You can start with this, “expect one marketing tip, get seven more free” promotion.  OK so its a penny for our thoughts, but they do add up over time.  Now back to business.

It is proven that in times of hardship successful companies do not abandon their marketing strategies: they adapt them. Here is a quick guide to the things you can implement to make sure your business survives the recession.

1. The potential that lies in existing customers

Your best immediate sources of additional profits and increased business are your existing customers. These are the people who you’ve already invested time, energy and money with you to create a relationship. It usually between five to ten times easier to get an existing customer to buy from you again, than it is to get someone to buy from you for the first time. Prospects in particular are more likely to become customers if your marketing efforts are complimented by a recommendation from a friend or family member.

TIP: You can encourage your existing customers to attract new customers for you by undertaking a ‘recommend a friend’ as part of your promotional efforts. For example, you could send out an offer where your existing client and their friend will both receive a discount when they book a treatment together.

2. Developing a marketing strategy

Growth has nothing to do with the size of your business. It’s about how many customers and prospects you can market to. This is not the time to cut marketing spend. It is well documented that businesses who increase advertising during a recession, when competitors are cutting back, can improve market share at lower cost than during good economic times. You need to be aware that marketing efforts require careful planning and, in order to you assess your return on investment and effectively plan future marketing, you must keep a record of the sales generated as a result of your campaigns. Try and set some time aside each week for brainstorming new ideas or calculating your business growth.

TIP: There are, however, ways to market more cost effectively, perhaps by reducing your ad space or by sending out promotional SMS messages which reach customers cheaply, directly and quickly.

3. Data Capture

Build a mailing list. This will enable you to target your campaigns more effectively. Collecting the names is the hard part, so give your prospects a reason for them to provide you with their name and address – competitions, discounts, maybe even a loyalty card. Work at keeping your list accurate and up to date. Try to get hold of email addresses as well as (or even in preference to) contact details: email is cheaper and more versatile than postage. It is vital to monitor your customer’s purchase history. This will indicate whether they are cutting back.

TIP: You can use purchase history information to target those who have reduced the frequency of their visit. This will encourage them to revisit your business.

4. The power of the Internet

Many businesses still do not collect the email addresses of everyone who contacts them. Every time a business fails to capture someone’s email address they’re turning down the opportunity to contact them for FREE, for weeks, months and years ahead. Once you have Email Addresses – use them!

TIP: You can use email to thank people for their business, make them a special offer, give them a free article or report, send a newsletter, recommend a product or service they may be interested in or ask for referrals.

5. Utilizing technology

Technology helps to simplify working life, yet many businesses are reluctant to adopt new forms of communication. Consider the impact of a website showing photos of all your best work, compared to a simple price list or leaflet. Similarly, SMS text appointment reminders can be a worthwhile investment as they reduce no-shows and wasted staff time.

6. Advertising

It is essential that you measure the response to all of your advertising in order to evaluate whether or not it represented a viable investment and to shape your future investment decisions. It is worth asking how many people responded to your ad, how many of those were converted to a sale, what’s that worth to you? Some practical advice: an attention grabbing headline is essential, one change in headline can produce a 50-100% increase in response, and the ad itself needs to appeal directly to the interests of your target audience. People don’t buy your product or service. They buy the benefits that your product or service offers them. So spend some time getting clear on what exactly your benefits are – and then make sure that you articulate them precisely in all of your communications.

TIP: Research has shown that the effects of advertising are short lived. Therefore, in order to optimize your budget, it makes sense to spend smaller amounts very regularly. This will ensure that your business is consistently at the forefront of customer’s minds.

7. Promotions

Customers will be shopping around for the best deals. You do not necessarily have to cut list prices but you may need to offer more temporary price promotions. Targeted and personalized promotions are more cost efficient than just sending out one generic campaign. Customers are naturally skeptical of promotions so make sure you frame them appropriately, for example, ‘New Years Detox Offer’.

TIP: It is worth noting that discounts below 15% are often ineffective

8. Rewarding loyalty

Start a loyalty program. The customer gets a good deal, you get a keen customer. A simple approach is to give clients a free treatment after they purchase a set number of treatments. Invite your regulars to trial new products and treatments at a reduced cost, you could target this promotion based on client’s purchase history.

TIP: Customers are naturally dubious of sales offers so frame the offer as a “thank you” for their loyalty.

Get Listed!

Show the world you exist (without spending a fortune) by listing your business on a free web directory. Find some that are appropriate for your business, and have the best chance of reaching your target customers. While you shouldn’t spend money on “shot in the dark” advertising that doesn’t allow you to measure results, if it’s free then put on a blindfold, turn out the lights and start shooting! As an added bonus, lists help you rank higher on search engines, which is important because how 85% of internet users (and growing) get their information.