5 Steps to Serving More (and better quality) Customers

It’s the end of 2015 Q2 today. That means half the year is gone – aarrrhh! Are you on track in your business? Is revenue meeting projections? Are you achieving your profitability targets? If you are a small business owner or solopreneur, are you paying yourself what you are worth?

If you can’t answer a big fat YES to those questions, then you have work to do. Right?

Don’t worry, you’re not alone. There are loads of businesses like yours, not quite hitting their business goals at the end of Q2. I have to confess, in one of my businesses, I haven’t hit my Q2 targets either, so I’m practising what I’m about to preach. I also know that with lots of focus, the next 6 months can end on a high. Let’s end 2015 with a HUGE flourish within our businesses.

People do business with people – That’s a fact! And we prefer to do business with people we like. After all, we spend a lot of time in our businesses. So, here’s my 5 step guide to ensure you attract the right people (customers) to your business; people whom you like and trust, and who are right for your business to serve.

Step 1 – Identify Your Most Profitable and Enjoyable Customers
How? It’s easy. I’ve created a simple tool called the L? Customer Profitability Quadrant which does the work for you. It puts your existing customers into 4 quadrants according to how profitable and enjoyable they are.

The 4 quadrants, are:

“Lots More” – highly profitable and enjoyable customers.
“Lift Up” – highly enjoyable but lower profitability customers.
“Look Out” – low enjoyment and highly profitable customers.
“Lose Them” – low enjoyment and low profitability customers.

Here’s what each quadrant looks like after you’ve done the exercise.

From the descriptions, it’s plain which quadrant you want more of in your business – the “Lots More” customers, of course.

Yet, there are issues to be considered with the other quadrants.

The “Look Out” customers pose a threat to your business because if they leave you, your profitability may be affected (if you have plenty of customers in this group, your profitability will be seriously affected).

The “Lift Up” customers need addressing too as you and your team may be over delivering to them as they are enjoyable people to serve, but that is not time well spent at present as they aren’t profitable enough for you.

The “Lose Them” customers are generally a drain on your business and are often price shoppers, so do you really want them?

Click here to download my free E-book that shows you how to create your own L? Customer Profitability Quadrant. I promise it’s really easy to work out.

Step 2 – Define the Common Features of the Customers in Your “Lots More” Quadrant
In all situations I find that when an analysis is done on the types of customers that make up the “Lots More” quadrant, there are common features. There will often be a grouping of industries that they are in, or geographic locations, or you may be selling similar products or services to them.

Do the work to define what the common characteristics are, as you will be able to use this information to target more potential customers like these ones. Don’t try and be everything to everybody. Identify your niche and focus on it.

Step 3 – Evaluate the Key Needs, Wants and Desires of Your “Lots More” Customers
Become really clear on what it is your “Lots More” customers need, want and desire. This is important, as you will only be successful in selling more to them or other customers like them if you truly understand those drivers.

Step 4 – Articulate Your Value Proposition
Do you really know what your value proposition is for your “Lots More” customers? Please spend the time working it out. How are you different? What enables you to serve those customers perfectly so that they return time and again to buy from your business, and hopefully be cheerleaders for your business.

Step 5 – Laser Planning the Next 6 Months
Armed with all the information in steps 1-4, it’s time to create a business/marketing plan for the rest of the year.

In summary, your plan will include the following:

Strategies to reconnect with your existing “Lots More” Customers, checking in on them and their businesses or lives, and reminding them of your value proposition, products and services.
Strategies to identify and market your business to potential customers who are have the same profile as those in your “Lots More“ quadrant. If you are good at serving a particular type of customer, go and find more people just like them.
A ‘sort out’ plan to address the issues with your “Look Out” customers. They are highly profitable to your business, so you don’t really want to lose them. Work out why you aren’t enjoying working with them. Resolve the issues and build bridges. Turn them into “Lots More” Customers too.
A ‘sort out’ plan to address the issues with your “Lift Up” customers. You enjoy working with them, but they are not profitable enough for your business. Do you really know what their needs, wants and desires are? How can you better serve them so they buy more profitably from you and also become “Lots More” customers?
A ‘good-bye’ plan to exit the “Lose Them” customers from your business. They are not suited to the products/service you offer, so you are better to facilitate them being served by another business, and then you can focus on your “Lots More” customers.

That’s it. It’s time to do the work. Follow steps 1-5 and watch your revenue and profitability soar by the end of Q4 2015. I’m excited. I hope you are too.

ACTION: I’d love to hear how business is going for you as at the end of Q2. How about sharing your situation below? If your business is going well, tell us what you’re doing. If you need a renewed focus, then email me. Perhaps a 30 mins free Business Growth Strategy Skype call might be just what you need to get ‘back on the straight and narrow’.

Could some guidance from me be helpful to you? If so, please arrange a free 30 mins Skype strategy meeting with me. Here’s my calendar to book a meeting. I’d love to support you in some way to gain ‘seductive clarity’ in any aspect of your business or life.

What ice cream flavour is your business?

An ice cream is an ice cream. A laptop is a laptop. A plumber is a plumber. A business coach is just another business coach. They are all homogenous ─ basic commodities that can be bought anywhere in a competitive market. Right?

Yes and no. Many entrepreneurs operate as commodity businesses. They look and sound the same as everyone else in their industry. They trade on price, often reducing their price to ‘win the business’. Nothing makes them stand out from the crowd. They are like plain vanilla ice cream; something that can be bought anywhere.

Yet, one of the most pressing issues facing many businesses is how to attract more quality customers. That is the constant concern I hear when networking with and coaching entrepreneurs.

Why? Often is it because they have not identified and communicated to their customers the value they offer with their products and services.

When we are selling value to the customer, we are selling benefits – things they want and need; an emotional connection to the product, and often an experience too. When we do that we are selling something that stands apart from the rest and cannot be bought anywhere.

Let me explain.

I am an ice cream ‘snob’, yet we could argue that most ice creams taste very similar. In London, I will travel to Notting Hill just to visit a particular store to marvel over their range of gorgeous flavours, buy one, and then sit and savour it. When in New Zealand I will only eat one brand of ice cream. I can buy it from a handful of stores or in tubs in the supermarket.

So why do I bother being so finicky over ice cream? Because I am buying something more than just ice cream. I am buying an experience – a moment when time stops as I savour the joys of the ice cream. I am also buying a perception of luxury – as defined by me. The personal benefits of the ice cream brands I buy are worth the inconvenience of travelling far and wide to buy them.

The same goes for many other products and services I buy. I will return to buy certain products and services time and again, as they are selling something that is of value to me.

Look at your business. Is it selling something that is highly valued by your customers? Do you have differentiated products and services that your customers can only buy from you? Do your products and services emotionally connect with your customers so they come back time and again?

Starbucks is great example. They enjoy customer loyalty that most businesses can only dream of. Yet, I am sure the same quality of coffee can be bought in many coffee shops around the world – and more cheaply. But Starbucks is selling an experience that its customers will pay for.

Value is often intangible. It’s in the mind of the buyer. So as business owners, we need to get into the minds of our desired customers and understand what benefits, value, and experiences they are seeking when buying the products and services we offer.

Once we understand, it is our duty to effectively communicate our ability to deliver those values, benefits and experiences to our potential customers. If we do that effectively, we will be seen as different, relevant, and necessary by our customers.

Our businesses will be branded differently from our competitors… so long as we deliver on the value and benefits we promise. If we don’t, we are doomed to be seen once again as a commodity business.

Get value, benefits, and experience right in the eyes of our customers and we will be able to set premium prices for our products and services. Price is only an issue when value is not perceived.

And finally, not all business coaches are the same. I have branded my business to work with business owners/entrepreneurs around the world who want to be ‘mega performing’ – achieving all that they desire in business and life – as they define it. My business is a Swiss chocolate ice cream made with only organic products, and with little ‘sweet treat surprises’ scattered throughout… and it can’t be bought anywhere else other than from me.

What ice cream flavour is your business? And where can it be bought?

Let’s start a conversation. What makes your business stand out from others in your competitive market? How do you define and communicate the benefits you offer your customers? Write your thoughts below.

Other articles on What Makes Successful Entrepreneurs:

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Entrepreneurial Success Without Fulfilment: Who Wants That?
All Work + Little Play = Boring!
Mega Entrepreneur Defined!
Supercharge Your Profitable Business!
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NZ Entrepreneurship Success
Millionaire Mindset
7 Secrets of Business Success
Sir Richard Branson Asks…
Ordinary vs Game Changing
Thriving within the Juggling Act
Business Success and Cookie Dough
What Makes Great Entrepreneurial Leaders?

What is a Customer?

What is a customer? Here is a slide I found some 30 years ago, defining a customer. Personally I think it is still relevant today. What do you think?

Who Wants High Customer Retention?

Hopefully All Small Businesses Do!

Are you losing customers in your small business? Or do you have unhappy customers that you risk losing? Go on, be honest with yourself. Most businesses have customers that they unexpectedly lose to a competitor. Customer retention doesn’t have to be a problem in business, but often it is.

Recently I had an experience that left me feeling annoyed as a customer. Sadly it was with a charitable organisation that I like and have loyally supported for a number of years. They did some things that I found really irritating, which also led me to tell them I found their behaviours inappropriate. They challenged me, and told me that they were a business too and needed to act in this way. I disagreed. In the end, what they have ended up with is a loyal customer who is not happy and may take her ‘charity dollar and time’ elsewhere as there are plenty of charities needing support across the world!

My experience got me thinking about how small businesses may or may not treat and value their customers.

Did you know that studies have consistently shown that approximately 84 percent of customers who leave a supplier depart due to perceived indifference or an unresolved conflict? Only 9 percent of customers who leave do so because of price. I find these statistics fascinating and thought provoking.

What are you doing in your small business to ensure that your valued customers feel important and looked after, and that any conflict that arises is resolved?

Also, do you know which customers are most vulnerable to moving away from your business? I call them your ‘Look Out’ customers. The ‘Look Out’ customers are those that are highly profitable to your business, but you are not enjoying working with them and they may not enjoy being serviced by your business. What would happen if you lost a whole lot of profitable customers? What might that do to your business?

In my opinion, businesses must continue to evaluate the way in which they are supporting and servicing their customers, ensuring their customers feel valued and appreciated. If you are not thinking about this and if you don’t have plans in place to ensure customers are valued, then your business runs the risk of losing customers.

One way to achieve this is to talk to them. Perhaps you can survey your customers to see what they are thinking, explaining that your business is constantly seeking to improve the customer service it offers. You may be surprised (or even disappointed) with the responses you get. Regardless, the information will be helpful in enabling your business to better serve your most important customers.

Do you know who your most profitable customers and valued (or enjoyable) customers are? Many businesses do not. I have developed my L⁴ Customer Profitability Quadrant ™ which enables a business to determine the status of all its customers. L⁴ means your customers fall into four quadrants, being:

‘Lose Them’ – these customers generate low profitability and low enjoyment or value to your business.
‘Look Out’ – these customers generate high profitability and value to your business, yet the enjoyment is low, so there is a ‘flight risk’ with them.
‘Lift Up’ – these customers are valued by your business and enjoyable to work with, but they are not very profitable and the chances are high that your staff are spending too much time servicing them because they are enjoyable.
‘Lots More’ – these customers are ‘gold dust’ for your business. They are highly profitable and valued, and they are enjoyable to work with. They need to be thoroughly looked after by your business, and you want more of them.

In summary, no business wants to lose customers unnecessarily. Quality of service, respect and appreciation will go a long way towards ensuring customers remain loyal.

If you would like to learn more about how to determine your own L⁴ Customer Profitability Quadrant™ for your business, then please go to www.adelemclay.com/free-resources to download the FREE e-book entitled Who Are YOUR Most Profitable Customers?

Knowledge is power. By understanding the dynamics of your customer base, you are better able to respond to ensure you retain and grow your most important and profitable customers.

Other articles on Branding, Marketing and Pricing:

Increase Your Prices and Make More Profit
Do You Compete on Price? Bad Business Decision!!
Is Customer Service YOUR Key to Business Success?
Creating Superior Customer Value – do you do that in your business?
Finding Customers via LinkedIn
Using YouTube for Finding Customers
Which are Your Most Profitable Customers?
What is a Customer?
What is Business Marketing?
What’s your Personal Brand?

Is Customer Service YOUR Key to Business Success?

‘The customer experience is the next competitive battleground.’ – Jerry Gregoire, CIO Dell Computers

I believe that delivering exceptional customer service is the ultimate key to business success, whether you are a large or small business. After spending a lot of time and money winning a new customer, why waste that effort by not looking after and nurturing them so they stay loyal to you forever? In the competitive market that most businesses operate in, customer service often becomes the differentiator between businesses.

I admire the success of the Wal-Mart company. Sam Walton, the Founder of Wal-Mart, said: ‘The goal as a company is to have customer service that is not just the best but legendary’. I wonder how many companies focus on ensuring their customer service is legendary?

Often it is the simple things:

Acknowledging your customers.
Following up with them and treating them as individuals, not a ‘number’.
Admitting it when things go wrong and quickly fixing the problem.
Asking for feedback, and actioning where appropriate.
Going beyond the call of duty in small but noticeable ways.

Lee Resources in 2010 said that attracting a new customer costs five times as much as keeping an existing one. That is a scary and costly statistic, and if true, will directly impact the bottom line; if you are losing customers and having to spend time gaining new ones, your profit will be reduced! Another relevant statistic is from Customer Thermometer, where in 2012 they stated that companies that prioritise customer experience generate 60 percent higher profits!! That is money to spend in more productive ways in your business, or perhaps to take as drawings from your business to support you in the lifestyle you want to have with your family.

In all the businesses I have owned, managed or coached in my career, superior customer service has been the cornerstone to success. It has always been ingrained into the psyche of all team members too. After-all, customer service, to be successful, MUST be delivered consistently throughout all activities across a company.

Let me share a recent personal experience I had, which demonstrates now NOT to do customer service! My husband and I are property investors in the UK, and we needed to purchase appliances for one of our newly renovated investment properties. As long time customers of CurrysPC World – a major UK appliance retailer – we visited a local store and bought the required appliances (£1300 in cost). Throughout our time at the store the customer service was excellent, such that we opened an account to make our purchases easier in future. The appliances were delivered to the investment property a few days later, and while delivering, the delivery company significantly damaged walls, carpet and vinyl. I notified Currys that afternoon, and was told I would hear from someone within 48 hours to address the issues. I began tweeting my dissatisfaction with Currys after about five days of waiting, and it was only then that their social media people made contact. Eventually I got an email from Currys two weeks after the initial complaint, telling me that their outsourced delivery company was responsible and would make contact with me within seven days. As you might imagine, I emailed Currys back telling them I expected Currys to resolve my complaint and not the delivery company, and that I would continue to tweet my experience until they had paid me approximately £350 so I could get the damage repaired. As of today, I am still waiting, so I will continue to use social media to complain. In the meantime, we have spent £1500 buying new appliances with John Lewis (another UK appliance/department store) for yet another investment property. Currys has lost our business forever, and I am telling everyone about my poor experience!! Ironically there is a very successful appliance company in New Zealand (where I am from) whose mantra is: ‘It is the putting right that counts’…. shame Curry’s doesn’t have the same approach to its business.

So, my message to you is to focus on delivering superior customer service all of the time to your customers and you will enjoy long time customer loyalty and more profit in your business. If and when things go wrong (which they will do from time to time), sort them out quickly and respectfully, and you will continue to retain your customers.

Finally, from Jeff Bezos, CEO of Amazon.com ‘If you build a great experience, customers tell each other about that. Word of mouth is powerful.’

If you would like support towards your business success, please visit www.adelemclay.com/free-resources and download all/any of the free resources are of interest to you.

Other articles on Branding, Marketing and Pricing:

Increase Your Prices and Make More Profit
Do You Compete on Price? Bad Business Decision!!
Creating Superior Customer Value – do you do that in your business?
Using YouTube for Finding Customers
Which are Your Most Profitable Customers?
Who Wants High Customer Retention?
Finding Customers via LinkedIn
What is a Customer?
What is Business Marketing?
What’s your Personal Brand?

Creating Superior Customer Value…Do you do that in your Business?

Recently I re-read a book by Dr Ian Brooks, a New Zealand management consultant who specialises in supporting companies to become Number One in their market. The book is called: ‘Second to None’ – 6 Strategies for Creating Superior Customer Value. A great read (see Dr Brooks’ website below to purchase the book).

In summary, Dr Brooks’ six strategies from his book are¹:

Strategy 1: Focus On Value	If business is the art of creating value, then everyone in your business must understand the concept of value and everything you do must be directed towards creating value in the eyes of your customers.

Strategy 2: Compete On Value, Not Price	Resist the temptation to compete on the basis of price alone. It is an inadequate strategy at best and a suicidal path for both you and your competitors at worst.

Strategy 3: Look Through Your Customer’s Eyes	Since value exists only in the eyes of your customer, you must learn to see the world through your customer’s eyes. Most companies do not.

Strategy 4: Make Your Customers Successful	In this tough marketplace servicing or even satisfying your customers is not enough. Studies show that even happy customers switch to another supplier at a very high rate.

Strategy 5: Reduce The Costs	To compete and win in this crowded market, you need to be a low cost supplier, but instead of reducing your price, try to reduce the other four main costs that customers pay to obtain your products and services.

Strategy 6: Give Them Something Extra	In addition to lower the costs, increase the benefits you offer your customers. Give them something extra – at no extra charge – and delight them!

So how is your business faring in relation to these strategies? Business is tough and hugely competitive…. all businesses need to stand out. Often it is the simple things that help to stand out. As the saying goes, it is better to do 10 things 10 percent better, than one thing 100 percent better.

As a business owner, how about looking at the various elements of your business and consider if you can apply Dr Brooks’ ‘Second to None’ Six Strategies for Creating Superior Customer Value into your business.

Note 1: Reproduced from page14, Second to None – 6 Strategies for Creating Superior Customer Value. Dr Ian Brooks. Nahanni Publishing 1997. See www.ianbrooks.com to purchase.

Other articles on Branding, Marketing and Pricing:

Increase Your Prices and Make More Profit
Do You Compete on Price? Bad Business Decision!!
Which are Your Most Profitable Customers?
Who Wants High Customer Retention?
Finding Customers via LinkedIn
Is Customer Service YOUR Key to Business Success?
Using YouTube for Finding Customers
What is a Customer?
What is Business Marketing?
What’s your Personal Brand?