Times Are Tough. Do Your Customers Know You Care? 3 Steps to Becoming a Trusted, Customer-Focused Business

A down economy is the best time to connect with your customers.

Consumers are seeking trusted business sources to hear their concerns and provide them with options. Customers want your ear and your empathy. They want to be heard and acknowledged. They need to know that you understand and care about what they’re going through — even if they’re not buying from you at this point in time.

It comes down to this: You may have the best product or service out there, but that alone won’t guarantee your success if you haven’t built loyal bonds with your customers. Your existing customers are your best customers. They will thank you with their repeat business and send you business referrals. And they will think of you when they’re ready to buy — in good times and in bad. But customer loyalty must be earned.

Unlike big business, small organizations are uniquely able to cater to customer needs and earn their loyalty. How do you do that? By being 100% customer focused every day, with every interaction, in every aspect of your business. Here are three ways simple ways you can earn their loyalty by focusing on super-serving your customers.

1. Be Passionate About Your Customers

Being passionate about your customers starts with listening to and hearing their concerns. Make sure you always understand what the customer is saying or asking. Educate them on the value of the products and services you provide, and offer them solutions based on what they need. Passion means proving to customers you are vested in their success.

Passion also means being accessible, accountable, and HONEST. If there’s a problem, don’t gloss over it. Own it. And don’t quit until you make it right. Saying, “I’m sorry, let’s work this out” goes a long way toward earning your customer’s gratitude and return business. Get on the phone, send an email or send a personal card and make that personal connection.

2. Use Every Interaction as an Opportunity to Build a Relationship

Consumers today are feeling beat up and shrugged off by the sorry state of some big-business customer service. Customers desire connection.

We have a mantra here: “Connect to give.” We make every effort to connect with our customers for no other reason then to stay in touch and strengthen our relationship. We remember birthdays, send advice and support, and sometimes just a hello and an inspirational quote.  In doing so, our customers rely on us as they do their friends and we take a lot of pride in that.

Every interaction — be it over the phone, in an email, or across the counter — is an opportunity to deepen your bond with your customer. Make sure all your employees share your commitment to your customers’ success.

3. Learn What’s Important to Customers and Deliver It

The businesses that are going to survive this economy unscathed are the ones who are listening to their customers and adapting their businesses based on customer feedback. By letting your customers know that you are not only interested in their feedback — but you are willing to act on it — you can build stronger customer relationships and earn your customers’ loyalty.

Extend invitations for customers to give you feedback at every opportunity. If you have a physical store, put a suggestion box at the counter — alongside your email sign-up list.

Include an open-ended question at the end of every email marketing communication asking, “How are we doing? What could we do better?” Better yet, do it in a “hand-written” card and send it in the mail with a stamp. That act alone will set you apart from your competition.

Survey your customers to find out what they want and need right now. Ask them, if they’re not buying from you now, why not? What would it take to get their business back? Report on that feedback to your mailing list in your future email marketing communications.

Write a Question-and-Answer column in your email newsletter inviting customers to sound off and tell you what’s on their minds. Offer free advice. Use customer feedback to inform your email marketing content and drive your campaigns.

The economy may be turbulent for some time. The good news is, building loyal customer bonds is an investment in your business’s future. Because when the dust clears and the economy picks up again, loyal customers are more apt to come back to a trusted source with whom they’ve done business before. But that’s true only if they believe you’re focused not on what you want to sell them, but on what they need. Today that might just be a good ear that shows you care.

For more information, check out www.BuildRelationshipsToday.com

Jeff Battiston, www.GlobalCapital-LLC.com

Jeff is Founder and CEO of Global Capital Services, a company that provides financing to businesses and municipalities.

Why Leasing Instead of Buying?

What is the actual advantage of Equipment Leasing instead of buying it? There can be several reasons. Many small businesses have to watch their overhead, as they usually have a tight budget to work with, especially when just starting out. Although comparing buying business equipment to leasing business equipment is always the prudent thing to do, most small businesses find that leasing will save them money – in the short and the long run. Some business equipment is an investment only in the fact that it helps a business run efficiently and become successful. Just like an automobile, however, the value of many types of business equipment will begin to depreciate the moment they are purchased. This is partly due, of course, to simple wear and tear. It is also due, though, to technology. Some business equipment can be updated up to a certain point, but there will come the time when it will be rendered almost obsolete by technological progress. Unfortunately, this can often happen before the equipment has reached the end of its normal life span. Having to replace business equipment is costly, and becomes even more costly when a business cannot sell or trade in their old equipment for anywhere near a reasonable price.

Leasing, however, can help small businesses avoid this problem. Businesses that need production machinery or technical office equipment can benefit from leasing. For one thing, leasing seldom requires a down payment, and leasing payments are generally lower than mortgage-type payments. This is because they are not usually subject to high interest payments, and are usually spread over longer periods of time. Leased equipment can be updated on a regular basis as needed, and the old equipment can simply be returned to the leasing company, making it a simple and efficient process.

There are other advantages to leasing versus buying or obtaining a bank loan.  They are as follows:

• Liquidity: The #1 reason businesses fail is due to lack of liquidity. Maintaining ample cash balances in your checking account should be a top priority for a company of any size. Leasing allows you to conserve your cash for times when you need it most.

• Convenience: Unlike a bank loan, Leases generally require less financial documentation, meaning they require less preparation and are easier to secure. Some banks want two to three years of detailed credit history, and financial reports, while leases often require only six months of history or less. Often a one-page application is enough to obtain a lease for up to $75,000.

• Quick Turnaround: If your company is like most, timing is everything. Who has time to undergo the lengthy and burdensome credit approval process required by most banks? Upon receipt of your credit application, you can expect a response from most leasing companies within 24 hours.

• 100% Financing: That means a company can acquire essential operating equipment and begin using that equipment immediately to generate revenues with NO large down payments. Leasing companies will fund 100% of the cost of the equipment, including delivery costs and installation costs. Bank financing usually ends up meaning that you pay for your own installation costs .

• Off Balance Sheet Financing: Leasing is the perfect tool to acquire new equipment without further leveraging your company’s balance sheet. If additional debt may jeopardize an existing bank borrowing covenant, an operating lease may be the perfect solution to your next equipment acquisition.

• Flexible Payment Options: Leasing is an extremely flexible financing tool. Unlike bank loans that only offer fixed, level payments, leasing can offer flexible payment options. Many leases can provide for step-up, deferral, skip and/or annual payment programs, that will match your company’s cash flow.

• Flexible Terms: Budgetary concerns over new equipment purchases can be circumvented through equipment leasing. Operating budgets tend to be more flexible than a capital budget. The lease terms can be as flexible as required and are often negotiable on an individual basis. Lease terms are usually much longer than a standard bank loan, which makes their payment terms even better.

• Conserve Bank Lines: If your company has been successful in establishing a borrowing relationship with a local bank, why use up the available funds on an equipment purchase that is easily financed via leasing? Again, conserve your bank borrowing availability to support your company’s ongoing cash flow needs.

• Used Equipment: Often banks are only interested in financing new equipment purchases. While it may offer you an added opportunity, used equipment often presents added challenges to bank lenders who are typically less familiar with the useful life and resale values associated with used equipment. Regardless of whether or not you plan to buy used equipment from a dealer or private (third) party, a good leasing company will likely have a variety of equipment leasing options from which you can choose.

• Other Considerations: Many bank loans often require additional collateral other than the equipment being purchased.  Bank loans usually require extensive monthly reporting.  Finally, many bank loans can be cancelled by the lender at any time.  None of this is true for a typical lease.

Jeff Battiston, www.GlobalCapital-LLC.com

Jeff is Founder and CEO of Global Capital Services, a company that provides financing to business and municipalities.  Jeff is also an Independent Distributor for SendOutCards, an internet-based system that allows users to send personalized “hand-written” cards by US Mail.

A Riddle – What Is This Valuable Business Tool?

It costs nothing, but creates much.

It enriches those who receive, without impoverishing those who give.

It happens in a flash and the memory of it sometimes lasts forever.

None are so rich they can get along without it, and none so poor but are richer for its benefits.

It creates happiness in the home, fosters good will in a business, and is the countersign of friends.

It is the rest to the weary, daylight to the discouraged, sunshine to the sad, and Nature’s best antidote for trouble.

Yet it cannot be bought, begged, borrowed or stolen, for it is something that is no earthly good to anybody till it is given away. (Source: Dale Carnegie, How to Win Friends and Influence People)

What is this valuable business tool??

Simply, a SMILE.

Remember, all business comes down to relationships.  People do business with those they like and trust.  A smile is the best and most simple way to make a good first impression and build relationships.

That is why dogs are considered “Man’s best friend.”  They are so happy to see us that they almost jump out of their skin.  Naturally their action only makes us happy to see them as well.  The same is true between human beings.

Jeff Battiston

Jeff is Founder and CEO of Global Capital Services, a company that provides financing to business and municipalities.  Jeff is also an Independent Distributor for SendOutCards, an internet-based system that allows users to send personalized “hand-written” cards by US Mail.

Referrals Are the Lifeblood of Anybody’s Business

How to Make it Rain Referrals

If you don’t have a systematic referral program you are missing out on one of the simplest, lowest cost, ways to generate your highest quality customers. Referrals are the lifeblood of small business and if you haven’t yet institutionalized a referral program, you’re making a huge mistake.

Why are Referrals so Powerful?

The reason referrals are so powerful is because they come from a credible third party that has experienced first-hand the benefits of doing business with you.  They are even more powerful when they come from a friend because you know that a friend has no ulterior motivations but to do what’s in your best interest.  You can believe what your friend is saying versus hearing a commercial from a salesperson whose sole purpose is to make money from you.

Referrals are also valuable because most of the time they are completely free.  How would you like to receive the benefits of the most compelling sales advertisement on earth for absolutely nothing?  You can through referrals.

Research shows the importance of referrals.  According to Paul and Sarah Edwards (authors of Getting Business to Come to You), up to 45% of most service businesses are chosen by customers based on the recommendations of others.  A recent Dun and Bradstreet survey found referrals to be one of the two most popular small-business marketing methods (the other one is advertising).

Lastly, and I think this is the most powerful reason of all, customers that give referrals become more loyal to you and your business.  Once someone stands up and makes a public statement about you, psychologically they will become more loyal to you and your business.

Customer Service Doesn’t Always Equate to Referrals

Customer service is critical to the success of your referral program.  It is the foundation of the referral process.  But just because you give good customer service, it doesn’t mean that you will get a lot of referrals. Receiving referrals on an ongoing basis is as much a function of deliberate planning as it is great customer service.

Many small business owners assume that referrals will happen by themselves if you give good customer service. This isn’t true.  If you are not deliberate and proactive in creating referrals, the chances of you receiving as many referrals as you want are slim.  And your best customers are ready and willing to give you referrals as was shown in the statistics above, you just need to show them how.

Word of Mouth Advertising and Referrals are Not the Same

Word of Mouth advertising happens when one of your customers or friends mentions your small business in a casual conversation.  It’s not intentional or planned.  It’s just something that came out of their mouth.

A referral system is a methodical process that you have put in place to capture qualified prospects through your association with other people.

A ‘system’ by its definition is a ‘process that products predictable results.’ A system can be turned on and off like a light switch at will.  Your business needs word of mouth advertising but don’t mistake that with developing a methodical system for referral prospecting.

Making it Rain Referrals Starts with Your Attitude!

Time and again the same question keeps coming to me, ‘How do I get more referrals?’  My answer is always the same, ‘You must ask for them.’  In reality, most small business owners know that they have to ask for referrals to get more referrals but it’s the fear of asking that impedes them from moving forward.

This fear of asking is rooted in your attitude.  If your attitude is one that believes that you are asking that person to go out on a limb for you by asking them to give you referrals then you will always be battling with fear.

People Want to Give Your Referrals

If you truly believe that it will be helping them if you ask them to give you referrals your fear would fade quickly. Your customers want to give you referrals.  It makes them feel good that they found a great small business that they had a good experience with and they want to share their ‘little secret’ (you) with their friends.

They will be seen as a hero, or someone ‘in the know.’  And when their friend receives great service from you as well, your referring customer will feel as though he was able to do their friends a great favor.

When you ask for a referral, and you have treated that person right, you are actually doing them a special favor.

How to Ask for a Referral

Has someone ever asked you for a referral?  Did it go something like this: ‘Hey John, by chance would you know someone who could benefit from my services?’  John starts to ponder and think about it and eventually says, ‘Well, not off the top of my head, but I’ll keep thinking about it.’

This is how 90% of all referral questions are asked and unfortunately, you might as well not ask the question. Rarely, if every, will you get a positive response.  Why? Because you didn’t ask the question right. ‘know anyone who…’ questions are too broad for people to think about.

People need a frame of reference to help them narrow down the playing field of potential referral candidates. For instance, imagine that you are talking to one of your good clients who is pleased with your services.

You ask her, ‘Mary, you’re a member of the Women’s Financial Planning Association here in Chicago right?’ Mary responds, ‘Yes, I am.’ You ask, ‘Do you go to their meetings on a regular basis?’  ‘Yes, most of the time.’ Mary says.  ‘Is there anyone in your association that you believe could benefit from my services?  Maybe one or two people you’ve known in the group for awhile or sit next to regularly?’

Did you see the difference?  You gave Mary a narrow frame of reference from which to think about.  It allowed her to ‘see’ the potential referrals in her mind.  This may be limiting the number of potential people that your associates might know, but it is far more effective than opening up the ocean of people that Mary may know, but can’t remember.  Your request will also stay in Mary’s mind long after you’ve asked it because she visualized your services with much greater intensity.

Two Types of Referral Programs

Basically, there are two sources for referrals, your current customers (people who have done business with you) and other influential people. You should have an active referral system for both types of people.

Your customers are perhaps your most enthusiastic referrers because they have experienced your product.  But, you may in fact, get more referrals from other influential people who have never tried your product.

Develop a system for obtaining referrals first from your customers and second from other influential people or ‘Centers of Influence.’

Perhaps the simplest way to harvest referrals from your customers is to write a simple letter asking them for their help.

Centers of Influence and the 80/20 Rule

Your best referrers are your customers.  The people who have experience with you and can vouch first-hand for your product and service.  However, there are many other people and organizations that you must include in your referral prospecting system.

These individuals are people who know and mingle with many other influential people.  These people are often known as, ‘Centers of Influence.’

Centers of Influence can multiply your marketing efforts ten-fold.  They turn your marketing efforts from one-to-one to one-to-many.  They are the heavy hitters that can have a profound multiplying effect on your business.

A smart small business owner will spend the majority of his referral prospecting time with the 20% of their centers of Influence that will produce 80% of the results.

Conclusion

Establishing a referral program with your customers and other influential people is absolutely critical. Many small business people make the mistake of not institutionalizing a systematic program for referrals. They confuse word of mouth advertising with a referral system and, hence, overlook the single most effective advertising for a small business.

Don’t make the same mistake. Develop your networking skills and referral programs today and start receiving an endless stream of new customers.

Now go out there and make it rain referrals!

Courtesy of David Frey

For more information see: http://socreferral.com/jeff

David Frey is the author of The Small Business Marketing Bible. David spent five years as a senior business consultant in Anderson Consulting; one of the world’s largest consulting firms. He was also a former Senior Vice President for a $500 Million company, and a Vice President of Sales and Marketing in the retirement community industry. David’s Marketing Best Practices newsletter is read by over 45,000 small businesses in over 20 countries worldwide. He was the #1 top sponsor in SendOutCards from 8/06 through 8/07, and the #2 income earner in the company.