This week, my blog post can be found here
Normal service will be resumed next week.
This week, my blog post can be found here
Normal service will be resumed next week.
One of the key questions we ask our clients when we work with them is ‘ What business are you in?’ Most people will tell us they are the thing they sell, so for example, this week, I had ‘a financial adviser’, ‘an events planner’, ‘an accountant’, and ‘a sales trainer’.
But is that really what the customer is buying? The customer using the financial adviser may be looking for help to ensure they can retire with no money worries, or the customer using the events planner may be trying to organise a surprise 50th birthday party so will be looking for a memorable experience.
When you buy a drill, you aren’t buying it because it’s a drill, you’re getting it to make holes in order to hang up pictures or put up shelves.
At The Chameleon Guide we work hard with our clients trying to get to what it is their customers are buying off them because this will affect the marketing messages they use.
But not only is it important to understand why they are buying off you, your other challenge is to find out how your customers like to be sold to, and where they can be found for you to get them to buy your product or service.
In order to find out these things – you need to talk to your customers (see my previous blog on the importance of communicating with and keeping your existing customers).
In my quest for understanding how best to communicate with customers, I came across a book by Kristin Zhivago called ‘Roadmap to Revenue – How to sell the way your customers want to buy’.
It’s split into three parts
– Discover – Finding out about your customers
– Debate – Analysing and discussing what you’ve learned to come up with a list of priority activities that are most important to your customer
– Deploy – Work on the delivering the action plans you came up with in the Debate section
I’m going to briefly cover off the ‘Discover’ bit – the finding out about your customers.
Kristin recommends an in-depth interview process – here are the top tips summarised:
She suggests a structure for the questions which are deliberately written in such a way as to get the best from your customer/client. These questions are far more focussed on understanding how the experience was for the customer – you will get far more valuable information this way. And they will feel much more valued rather than you asking if they’d write a testimonial. Come back to that a later stage after you’ve interviewed them if they’ve been particularly glowing – but do not ask them in the interview because you’re back to ‘what’s in it for me’ rather than what’s in it for them..
If you have any key suppliers or partners, it may be worth interviewing them as well.
The information you get from the interviews will inform all aspects of your selling, from customer service, to the website to the information you give customers etc.
The questions are very customer-centric and you may well get resistance internally, particularly from sales people who always want to ask more direct questions about getting more business or shy away from asking the hard questions. Resist them! Her structure really works. One of my clients used the technique and got some tremendous feedback from his clients, including some more business.
There are a total of 12 and they are all based on open ended questions which may well result in sub questions being asked hence why the interview can take in excess of an hour to complete.
If you’d like a sample of the questions with tips and template emails to send out, let me know and I’ll email it to you (email@example.com)
Clearly, once you’ve done all the interviews, you need to do something with it!
This is the Debate phase of the book, where you analyse the information in-depth and report it back to the management team. Essentially, you will be identifying and prioritising the results in terms of what you need to focus on. This could be very broad ranging, from your website, through to how you sell and to how you manage your customer service. The book covers off how to manage this process in great depth before going on to the final phase of Deployment (actually implementing the changes). It’s rather less easy to summarise here, so I recommend the book – ‘Roadmap to Revenue – How to sell the way your customers want to buy‘ * if you are keen to follow the process through as she describes it.
What she proposes, is not a quick solution unlike Net Promoter Score. It requires a lot more effort, planning and commitment of the organisation, but is very powerful and will help you map how to match your customers’ buying process so they buy more from you. Resulting in happy customers and happy you.
For more information on how to grow your business email me – firstname.lastname@example.org
* I get no commission from book sales
I’m sorry if that sounds quite a mercenary question, but it’s meant with the best intentions. Not only for you and your business, but also, and as importantly, for your customers.
In business, we spend a lot of effort and money trying to get new customers, sales people are rewarded for bringing new customers into the business and probably the largest proportion of our marketing spend goes on trying to acquire new business rather than keeping the customers we’ve got, let alone thinking about how to grow our business with these customers.
We’ve seen all the great introductory offers banks give. To new customers. How annoying is that? When we’ve been loyal to them, it feels like they think they’ve done their job getting us on board, complacency sets in and they’re off to find new shiny things.
But if we look at the statistics, maybe we should start taking a bit more notice of our customers.
It costs six to seven times as much to gain a new customer than it does to keep one.
And 68% of people will leave a supplier based on the treatment they receive compared with ‘only’ 14% who will leave due to dissatisfaction with the product or service. How we treat our customers is nearly five times more important to them than the actual thing they came to us to buy in the first place.
Many a (un)happy hour can be spent regaling our friends with the horror stories of our customer care nightmares. Over the years I have sent quite a few rather more than scathing letters to CEOs of various organisations in utter frustration with the, what feels like, obstructive inaction of their staff. Who I assume are mostly bound by process and procedure resulting in the ‘computer says no’ response.
A classic this week ‘But Ms Espley, I don’t want to go the refund route because the process for refunding your item (a Sony Vaio laptop. Oh, I’ve finally gone public on them!) is very long winded, time consuming and complex’. Only because they make it so. This is after nine months of having a malfunctioning laptop that has had more factory resets than I’ve had hot breakfasts, a cursor that jumps erratically, and a range of other ‘features’ that renders it useless as a laptop. It’s been back to them once and returned in a worse state than when I sent it to them. And they still didn’t want to give me a refund. As I tried to explain to the brick wall that was the customer relations manager (who called in response to one of my aforementioned scathing missives to the CEO), that if they’d just given me a refund, or a new laptop months ago when the issues arose, I’d be singing their praises from the rafters. As it is, a) I shall never use Sony again and b) you now all know about it! *
And that is the other downside of poor customer service; we tell others and in this world of rampant social media, it’s a dangerous thing indeed to upset too many of your customers.
The plus side of this, is that if you keep your customers happy, then not only will they buy more from you, but they tell their friends too. And that suddenly wonderful social media plays a big part in that.
I have digressed somewhat from the original purpose of the article, but I’m back on target now and which brings me back to my original question.
If it costs six times as much to acquire a new customer, why on earth are we not spending a lot more money on keeping and delighting our existing customers? Particularly in the world of B2B where hopefully there is the potential for recurring revenue.
At The Chameleon Guide, we are big on looking at existing customers. It can make a massive difference to your business. One of our clients, the owner of a training company, went to talk to his top ten customers – not to ask for more business, but to ask them about their business and what their plans were. As a consequence of those conversations his customers realised he had a much larger range of training courses than they had thought and which business they had been giving to his competitors. They liked him and what his company did and gave him the additional work resulting in him doubling his revenue. And that was just from his top ten customers.
As Dale Carnegie so succinctly put it ‘the only way on earth to influence the other fellow is to talk about what he wants and then show him how to get it.’ Get your customers to do the talking.
There are a number of things you can do to make your customers feel loved.
As this blog is in danger of becoming a book, I’m going to cover the first one here and then write more on the other three areas in my next blog.
‘Spend a lot of time talking to customers face to face. You’d be amazed how many companies don’t listen to their customers’ ~Ross Perot
This is really aimed at the B2B market, though there may be some useful tips for those selling to consumers, particularly if what you sell is a high cost item, or it is a recurring sale e.g. printer cartridges and there is the opportunity to expand your product range with them.
How often do you talk to your customers? Or once you’ve got a customer, do you too forget them in your hunt to get new customers?
How many businesses know in-depth what their customers need and want and who they use to satisfy those requirements?
Pareto’s principle states you will get 80% of your business from 20% of your customers. We recommend you look at your top ten customers as a starting point. The ones who generate you the most revenue and/or profit. Focus your attention on them.
Implement a plan for meeting them. Be clear on your objectives when meeting them. Be clear to your customers when you contact them, why you are contacting them. If it’s the first time you’ve done this, you could perhaps let them know that as a key customer, you are instigating an account management programme of regular meetings to ensure they are getting what they need from you.
The sorts of questions you may like to ask are:
If you identify any opportunities or challenges that you can support them with, summarise what you’ve identified and ask if you can share with them ways in which you may be able to help. Or if your competitors are supplying services that you too could provide (that maybe the customer doesn’t know you do), then you will hopefully be able to share that with them. Or it may be that you have some information or other contacts that will be beneficial to your customer. This may not immediately impact on your business, but it’s all part of supporting your customer to be as successful as possible.
– Your customer will feel loved – who doesn’t like to be asked their opinion and it shows you are genuinely interested and want to help.
– You will get some valuable market information, be it about market conditions, new innovations or your competitors
– You are more likely to retain the customer
– You may get more business out of your customer
– They may start referring you to others
– They may be prepared to let you use them as a case study/write you a testimonial
If you offer to supply information or put them in contact with other people, then it’s really important that you do so as soon after the meeting as possible. It’s always a great idea to follow up your meeting with an email thanking them for their time and summarising the meeting along with any other follow up actions.
‘In the world of Internet Customer Service, it’s important to remember your competitor is only one mouse click away.’ ~ Doug Warner
If you have any tips on how to engage with your customers, I’d love to hear from you.
* Re my laptop – I won the battle with the brick wall eventually – a refund should be winging its way to me in the next two weeks…