Profiling Your Existing Customers and Expanding The Business Relationship By: Tiffanie Z. Lyon
June 2, 2009 | Leave a Comment
During difficult economic times, it’s especially important to maximize our relationships with existing customers. We’ve all heard and have experienced first hand that developing and nurturing our relationships with current customers is a heck of a lot easier than going out to get new ones, right? The fact is, we DO need to do both, but this post will focus on our current customers and how to maintain and grow the relationship.
DETERMINING YOUR MOST PROFITABLE PRODUCTS/SERVICES:
Many companies have a gold mine of business sitting right in front of them in their existing customer base; we just need to be strategic in how to “mine” the data. The first exercise before we even begin to profile our customers is to look objectively and deeply at our product/service offerings. You might not be able to answer these questions on your own and/or right off the top of your head, but it’s well worth investigating. You may need to get your manager involved.
List out all the key products and services you sell.
Now, go back through the list and circle the products/services, which are most profitable to the company and frankly, to your pocketbook. Assume the “ideal” customer for each of these products/services. This is where you may need assistance from management. Most companies know (or should know) which offerings are the most profitable. It’s just smart business. Clearly, you will offer what makes the most sense to your customers’ needs at the time, but with all else being equal, it’s good to know what makes us the most money.
Now go through the list again focusing on the products you circled. Next to those, write down the traits or characteristics of the IDEAL customer for each. You should do this for ALL the services, but start with the most profitable. Where are these ideal customer located? How much do they spend? What is their age? income? etc.
So now you should have a good idea of what you have to offer and who is an ideal (and profitable) candidate for each one.
UNDERSTANDING YOUR CURRENT CUSTOMERS:
Let’s look at our existing customers. Run a report on all the people who are considered your customers-current and past. Customers are customers – past or present. It’s a “warm call” verses a “cold call” when you re-connect with a past customer. They trusted and invested in you and your products in the past.
Next, make note of what the product was/is in which they invested, when did the relationship begin, what are the demographics and characteristics of the customer, etc. Really analyze them. What potential do you see? At first glance, can you get an idea of how you could help them make more money, save money, save time, offer convenience, and/or give them peace of mind or security? These are the key benefits most people are looking for in many products and services (as I’ve mentioned in a previous post).
Hopefully once you do this exercise you will re-familiarize yourself with these past/current customers and you will begin to see some potential for additional business from the active ones and ways in which you can re-kindle the “old” ones. What are you doing to re-capture past business? Are you focusing on your most profitable products/services? Why/why not?
Building Customer Loyalty By: Tiffanie Z. Lyon
May 26, 2009 | Leave a Comment
Keeping customers is more important than ever. As everybody knows, it’s a lot easier to keep and grow a customer than to go out and find a brand new one. So, here are some things you can do to build your customer relationships and their loyalty to you:
* Send your customers referrals and leads.
* Do business with your customers, when appropriate.
* Send your customers articles and information you think would be of interest to them.
* Send your customers a card thanking them for their business and on special occasion.
* Offer special discounts and incentives for customers only.
* Cross-sell other services that will benefit them.
* Host a customer appreciation event
* Profile your best customers on your website, e-zine and other venues
* Conduct a focus group, annual review and other customer-only sessions to get to know them better and get their input on new products/services.
Do you have some good ideas or tips for building customer loyalty? Please share!
Everybody Has Sales-Influence By Tiffanie Z. Lyon, MBA
May 19, 2009 | Leave a Comment
It’s important to understand that everybody in your organization touches the sales process- from the first telephone inquiry to the signed paperwork. All “sales” have a sales process (which you may have read in our my other posts) and it’s best to have your team positively influence that process. First impressions can be powerful. How does your receptionist answer the telephone on behalf of your organization? Who puts together information packets to be sent out? Do they look like they’ve been assembled with care? How do you position your company to your prospective customers? Here are a few tips:
• Educate your team on your company’s sales process and discuss where everybody “fits” into that process. This will create ownership and accountability.
• Inform everybody of your ideal customer and the most value-generating products/services the company provides its customers.
• Be certain everybody is saying the sales USP (unique selling proposition or “elevator pitch”).
Selling anything is based on having the right sales attitude, maximizing relationships and having a strategic process (Mindset/Art/Science). Selling is a team effort. So, rally the troops and Happy Selling ☺
MINDSET: Sharing The Value of What You Offer By Tiffanie Z. Lyon, MBA
May 12, 2009 | Leave a Comment
It’s important to realize that what you are actually selling is not necessarily a product, a service or an idea, but “THE BENEFIT” the other person will gain from investing in your offering and the ULTIMATE RESULT they will experience. By doing so, you will naturally be more persuasive and have positive influence. Think about this: Almost everything we sell offers one or more of these 5 general benefits:
• Make money
• Save money
• Save time
• Offer convenience
• Provide peace of mind/security
Which ones do your product or service address?
With that in mind, let’s do an exercise to dig deeper into this concept and really help you understand what you are selling. It will make it a lot easier to get excited and share with others. Enthusiasm sells!
Create a three-column chart. In the left column, list the core products and services you offer. Then in the middle column, list the first benefit or outcome a customer would receive after they invest in each of your products/services. Don’t contemplate too long; just write the first thing that comes to mind. Now, as you look at those benefits or outcomes for each service ask yourself, “so what?”, “what does that mean to the customer?”, “what is the ultimate benefit or end state of that?” Take it one step further.
Here’s an example:
Service: Life or Business Coaching
Benefit/Outcome: Clearly defined values and set of goals
Ultimate Results/End State: SUCCESS! Achieving personal, professional and financial goals and faster than you could on your own!
The far right column is what you are selling! THAT’S what people buy. It’s not just a service or a widget, but you are selling that intangible end state, ultimate result. Can you see how easy it is to get excited about selling what you offer when you focus on and demonstrate the ultimate value to your prospective buyer? So, instead of trying to sell the left column, shift your mindset and focus on selling the right column. Combine that with excitement and you’ve crossed the mindset hurdle to sales.
Does Your Small Business Have a Customer Loyalty Program?, by Myra Corrello, PhD
February 5, 2009 | Leave a Comment
Why do casinos, clothiers, hotels, airlines, and grocery stores spend so much attention and resources on their “rewards” programs? Simple, it keeps their good customers coming back for more!
Keep in mind it may cost as much as six times more to sell one unit of a product to a new customer as it does to sell the same additional unit to an existing customer. Therefore, one of the most effective business development strategies is to maximize your sales with existing customers! CLPs are ideal for helping accomplish this goal. The goal here is to spend more on your best customers because the return will be much greater.
Why do CLPs work? Because:
People want to feel special
People want to be treated differently than others
People want exclusivity / “premier” access
People love accumulating “points” for special rewards
People love unexpected gifts
So, what can you learn from the big CLP players? What do they do that you can mimic? Small companies have many options!
Consider:
Partnering with a hotel, restaurant, spa, etc. to purchase discounted packages and award to customers reach X level of purchases
Exclusive showings / parties
Exclusive seminars / demonstrations
Xth visit free programs
What other elements could you incorporate into your own CLP program? What great CLP programs have you seen other small businesses establish?
Myra
Helping Individuals and Organizations Increase Their Image, Influence, and Impact
MyraCorrello.com
How Flexible is Your Selling Style? By Tiffanie Z. Lyon
January 21, 2009 | Leave a Comment
We all are unique individuals. I believe our personalities are shaped both by our DNA and through our upbringing and environment (”nature” vs. “nurture”). We have a style that comes naturally to us, without effort; innate tendencies.
The type of selling I promote, teach and advocate for is just that: natural and genuine. Our prospects and customers can read through anybody being fake, insincere or trying to be something they are not. You must remain “you.”
That said, it’s also important to smoothly and seamlessly adapt to others so that you can build a connection and positive first impression. This goes for when we meet anybody for the first time, social and business networking events and when we’re prospecting for new business.
Here are a few examples to consider:
- If you tend to speak fast, loudly and are naturally enthusiastic and you meet with someone who is soft-spoken, calm and slower-paced, it’s advantageous for you to take your natural style down a couple notches.
- If you tend to be private, analytical and fact-based and the person you are meeting is asking you about your family and expressing broad opinions, you can share only what you feel comfortable and quickly turn it back around and ask them questions about the same.
Your style can be adaptable by reversing the table and letting a talkative person talk. They are bound to like you for that. If you tend to be talkative, friendly and outgoing and the person you are meeting with seems calculated and looking at his/her watch, it would be wise to skip the common pleasantries and get right- to-the-point of your meeting.
Remember, adapting your style to others is NOT being deceptive. It’s showing flexibility to work with others who may be different than you and building a connection with someone as the relationship develops. This is the first impression starting point of being able to naturally adjust your selling style for optimal results.
What do you think your personal selling style is? Do you adapt to others and augment your style depending on how your prospects and customers display themselves? Can you see the benefit of adjusting your style?
Happy Selling!
— Tiffanie Z. Lyon, www.lyonsalesinstitute.com
Understanding Your Sales Cycle- Part 1 By Tiffanie Z. Lyon
January 21, 2009 | Leave a Comment
Your Sales Process or Sales Cycle is what takes you from the introduction of an opportunity to a closed sale. Some sales cycles are short– like a retail transaction such as buying milk in a grocery store, to a longer sales cycles like buying a car or investing in professional services. The sales cycle/process tends to be longer when:
- it’s a high-ticket item; a lot of money involved
- multiple decision makers have to weigh in (i.e committees)
- significant consequences or ramifications if the wrong decision is made; risky
Step 1: Identify the steps of your sale:
It doesn’t have to be 7 steps, but it should be about 5-7. Example: New Opportunity, Approach, Planned to Meet, Analysis Complete, Proposal Submitted, Contract Signed, Follow Up and CRM. Use phrases that make sense to you. Remember: Some sales will combine steps and some may skip steps, but you’ll always have the first and last steps (the intro & close).
EXAMPLE:
New Opportunity– you get that business card of a lead, you see a business on the street you’d like to work with, somebody gives you a referral
Approach– a dialog is started, either in person, via email or telephone
Planned to Meet– you’ve schedule a phone appointment or in-person meeting to “qualify” and understand their needs
Analysis Complete– you’ve met and did a complete needs analysis to see if you can even help them (needs, decision-maker, timing and budget)
Proposal Submitted– you’ve now submitted pricing, quote, terms, arrangement, investment based on their needs, budget and timing
Contract Signed– paperwork is signed, handshake, letter of intent, closed deal
Follow up/Customer Relationship Management– product delivered, services rendered, follow up and cross-selling opportunities
Step 2: Describe what should happen in each step and also what needs to be confirmed before moving to the next.
Step 3: Timeframes: for each step, identify how long (on average) your prospect stays at that step.
Step 4: Allocations: You must always have prospects pretty evenly distributed throughout the sales funnel/process. Keep the sales funnel filled!
Ok, so that’s the 4-step process of identifying and defining your sales process. Do you know what your particular sales process looks like? Are you committed to documenting it? Will you take action?
Now, once you understand your sales process, it’s important to control that process (not “control the prospect”) to ensure prospects move through it quickly….. STAY TUNED… Next post—
“Part 2: 3 Tips To Speed Up Your Sales Cycle.”
Happy Selling!
–Tiffanie Z. Lyon, www.lyonsalesinstitute.com
Winning Pricing Strategies for You and Your Customers by Myra L. Corrello
January 1, 2009 | Leave a Comment
Today we are faced with enormous changes in our economic climate. Prices, in part due to the rising price of oil, are rising on everything. In turn, we are paying more for everything in our businesses. Our expenses are rising.Have you adjusted your pricing to compensate for your increased costs?
Many business owners are reluctant to raise prices for fear of alienating good, long-standing clients. This reluctance can drag on for years and slowly erode your profit margin till you are practically working for nothing.
Raising your prices is one of the most important tools you have in managing your profitability. There are even measures you can take to mitigate any negative reaction from existing customers if you execute them properly.
First, let’s review some important principles of pricing:
- The more distinct your product or service is in a way that your customers care about, the less price sensitivity you’ll encounter. People will pay more for something if it’s giving them what they need or want and they perceive there are few or no good substitutes. Seek to “brand” your uniqueness and find effective ways to communicate your distinction.
- Add value to your existing product or service by combining it with a complementary product or service to create packages.
- Carefully plan a price increase so that you, your staff, and your customers have time to adjust. You can create goodwill, yes, goodwill even during a price increase if you handle it properly.
How do you create goodwill with current customers during a price increase?
- First, start by setting the price increase a few months out. Three months gives you a good working timeframe.
- Next, create a pre-increase sales promotion program. Communicate with all your customers, the more personal the communication the better, about the increase and suggest they stock up on your product prior to the increase. A sense of time-urgency is a powerful motivator.
- Be prepared to have lots of orders the day before the increase! By contacting your customers personally, they will perceive that you care about their welfare and value their patronage.
- Consider offering a bulk-purchase discount, if you don’t already, to make their stock-up strategy even more beneficial.
Raising prices is a stressful issue for most business owners but it is the most efficient way to greater profitability. Just remember to plan your process well, use it to reconnect with your customers in a positive way, and offer your current customers an opportunity to adapt to the change.
What specific activities could you plan for to make a price increase a successful experience?
Myra
Helping Individuals and Organizations Increase Their Image, Influence, and Impact
MyraCorrello.com
The First 3 Foundational Steps to Sales Success- Pt. 1
May 23, 2008 | 3 Comments
Whether you have “sales” in your title or not, it’s important to realize that EVERYBODY SELLS!™ You may sell your spouse or significant other on a vacation destination or you may sell your boss on why you deserve a promotion. If you’re self-employed, you are very aware that YOU are your most important sales representative.
The first step is: believe in your value. In your role, you provide a product or service that is of high value. You help people, solve problems or you may even advise and counsel. THAT is valuable and what you’re selling is the result or benefit people receive by benefiting from that value. What are the end results or benefits people receive from your role, product or service?
Once you understand the benefits people gain from the value you provide, then it will be easier to implement step two: fine-tune your unique selling proposition. This is your elevator pitch, but on steroids! You want to be creative, powerful and succinct, so that your listener says, “tell me more!.” By stating your USP clearly and consistently, you will look and sound confident and “salable”. What’s your USP?
The third step: Building rapport, trust and relationships with people. People buy from people they like. If you’re not naturally magnetic to people, do not worry. You’ll just have to work a little harder at becoming more approachable and building small talk. Are you approachable? Are you a good conversationalist?
In the next blog positing I’ll share the final two steps to this foundation of sales success. Let me hear your thoughts….. Until then, Happy Selling☺
By: Tiffanie Z. Lyon, MBA
Lyon Sales Institute, LLC ~ Inspiring Non-traditional Salespeople to increase their sales-confidence and grow their business by helping them better understand and appreciate he concept of “selling.” Because… EVERYBODY SELLS! ~ www.lyonsalesinstitute.com
