How Do You Grow Your Business?

If there is one question that I am asked more than anything else is the question about how to grow your business and take it to the next level. The answer is relatively simple, yet I am amazed at how few people look at their business in the way I am about to share.

1. Sell new customers your current products and services.
   
   That seems to be the path that most businesses adopt. They are on the constant quest for new customers. There is nothing wrong with that. It’s just that there are other ways to grow a business. I could write a quick 50 pages on the different techniques to employ here but that’s not what this article is all about.
2. Sell your current customers more of your current products and services.
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   Many times we have customers who have the ability to buy more from us than they are buying. There are a few different methods to address this issue. First is to sharpen up your employees’ selling skills. Are they suggesting additional items or are they just happy selling one item to a customer? Start to look more carefully at their UPT numbers. Units Per Transaction are the average of individual items that are sold per transaction. If  salesperson #1 waits on 3 customers  and sells the first customer one item, the second customer 2 items and the third customer 3 items, then the Units Per Transaction number would be 2. However, if Salesperson #2 also sold 3 customers but they only sold two of the customers one item and the third bought, their Units per Transaction would only be 1.3. You start to multiply that by 30 days in a month and over a year, you have a significant difference.
   
   But that’s only one approach. The other approach is to send messages to existing customers reminding them of things they might need or want. This is where a good database marketing system works effectively. It is not about sending slick advertising pieces but rather messages in the form of friendly reminders. Many times a simple message left on a customer’s voice mail or answering machine is all it will take to bring that customer back into the store. This approach works equally as well in selling new products to old customers.
3. Sell your current customers new products or services
   
   This is very similar to selling existing customers more of what you have, but the difference is you have a more compelling reason to communicate to them. New! That’s the best reason of them all. People love new and different products. Are you constantly on the lookout for new and interesting products to offer your customers?
4. Sell new products and services to a new group of customers
   
   This is very similar to selling your customers new products or services. The difference is you are now marketing to a brand new group of people. Years ago I added a department that just sold bridesmaid dresses. It was a new product line and a whole new set of customers. This is similar to starting an ecommerce business. You are targeting (in many cases) a brand new group of customers. The problem here is that it just takes time to develop. All of us get impatient and then lose interest. We get all excited about a new idea but we forget that it takes time to create the necessary buzz to make word of mouth advertising work.
   
   Yes, we have all heard of the overnight successes and they do exist but those are more of the exception than the rule.
5. Buy it…expansion through buying another business
   
   This is the approach taken by larger companies through mergers and acquisitions. Can it work for smaller businesses? Yes, but unless you have the right people you can trust, it will not work.

Those are the major categories of growing a business. What way do you want to grow?  After years of exploring every one of these approaches I have grown partial to number 2. Selling more to existing customers and, of course, always adding some new products along the way. I say that because you are marketing to people who already know you and hopefully love you. It is the safest and easiest approach BUT you have to have the type of product line that lends itself to repeat customers. If you just sold refrigerators, this wouldn’t work. But if you sold other appliances, it will work just fine.

The choice is yours. I hope that helped and have a GREAT WEEK!

When Was the Last Time Your Website Went In for a Doctor’s Appointment?

After almost 2 years of nagging, I have finally convinced Roland Lacey, the President of MediaRight Technologies to launch a service that is long overdue and desperately needed for independent retailers. It is a service to evaluate a retailer’s ecommerce initiative that includes their website, email marketing efforts, newsletters, blogs, shopping carts, and even Ebay or Amazon involvement.

Many of you might be familiar with Roland because he is my Webmaster, and I have done a number of teleseminars with him about the latest and greatest in Ecommerce. Roland has also served as the Technical Editor for The Essential Online Solution and The Second Edition of the Retail Business Kit for Dummies that is due out early this fall. Roland is a computer geek who knows and understands marketing. Actually he might better be described as a marketer that understands the geek stuff.

I have been pestering Roland about a service like this because I have just been inundated with people who come up to me after a presentation, or call, or write to me asking me to evaluate their website and what I think they should do. I just can’t do this because my schedule doesn’t allow it as much as would love to. It takes time and expertise in some areas that I am aware of but am definitely not an expert in. What they are really looking for is some objective information as to what to do, what to tell their webmaster to do, and to answer the most important question – Is their webmaster doing what he should be doing and are they getting any type of return from their website?

So many times you see a beautifully designed site but the technical part of the site makes it useless. More than that is the site that is technically perfect but the graphic design is terrible. As for all other aspects of ecommerce, so many great businesses are missing the boat with opportunities they could be exploring.

Well, Roland dropped a bombshell on me when he informed me that his tests agreed with my observations (I told you he was a geek). He has created not just a new service but has launched a new division of MediaRight Technologies called Ecommerce Evaluation Services (EcommerceEvaluationServices.com). This is a service that will test your site and initiatives in over 50 strategic areas. Roland does NOT want to be your webmaster. He wants you to continue working with the people you are working with but wants you to become a more aware and educated buyer of ecommerce services. If you need a new webmaster, Roland will make suggestions and he will even talk to your existing people.

Ecommerce Evaluation Services will be a completely objective service without any vested interests other than your success.

I know first-hand how powerful a service Ecommerce Evaluation Services is offering. That is exactly how I first met Roland. I had interviewed him for my book, Essential Online Solution, and was so impressed I called him back to evaluate the company that I was working with. I felt they were taking advantage of me but I could never quite understand what they were doing and how long it would take for all the things they were doing for me to finally work. To make a very long story short, Roland saved me over $10,000 in overcharges, misrepresentations, and tools that could never work. Roland actually got that company to refund me money and even apologize for the work some of their people were doing. Some of their employees lost their job over it. The irony was that Roland ended up doing some limited consulting for the company and saved them money as well.

So many of us have been taken by people and companies that just simply snow us with all their technical jargon. Oh yes, Roland and his staff talk in easy to understand English.

OK, what exactly will you get and how much does it cost?

You will first be asked a lot of questions. Many of them you won’t have a clue what they are and that’s alright. That’s the way he establishes competence levels. He will ask your webmaster lots of questions as well. Then the diagnosing begins. After a great deal of analysis, you will receive about a 20 page report outlining the steps that need to be taken to reach your potential. You will also receive an approximately 20 minute video where Roland discusses and walks through strategies outlined in the report.

You will also have a telephone conversation from Ecommerce Evaluation Services (probably Roland himself because he loves to make those calls explaining the report and go over the action steps). Then, if need be, Roland will also go over the report with your current webmaster. The last step is a call or email whichever is appropriate as to the reaction of your web people. It should be treated as a positive experience because all EES is doing is making their job a little easier.

The cost is the best part. This service is only $495 and worth triple that. I know because I paid 4 times that amount. This was the BEST money I ever spent in my business. The work is 100% guaranteed. If you are not happy, every penny will be refunded. However, these recommendations will make you money, and to some that are reading this, a lot of money. We will be sharing those stories throughout the year.

You can get complete details here:

www.EcommerceEvaluationServices.com

There is a much bigger issue than MediaRight starting a new division. The real message is to have your ecommerce activities, your website and any other way you embrace ecommerce evaluated by a neutral party. Someone who isn’t going to profit from their recommendations. It will save you a lot of time, money, and lost revenues you might have had if it were done right.

I am excited about this new service and what it can do for the retailers who decide to use it. However, there is one more lesson to be learned from what I am doing with Roland Lacey, MediaRight Technologies, and the new Ecommerce Evaluation Services (EcommerceEvaluationServices.com) that all of us need to do. Never offer a service or product that isn’t right for your customers. Some businesses throw in any kind of junk to their customers just because of a fat commission check. Don’t do it. It will only hurt you in the future. Guard your customers and service them first. Hopefully, I have done that for you.

OOOPS! I Goofed!

It is somewhat ironic that less than a month ago I wrote an article about how careful we must be when it comes to the words we use. The wrong word can hurt. Well, two weeks ago I shared my experience about visiting a wonderful winery, Hunt Country Vineyards, located in the Finger Lakes Region. The vineyard has won more awards in international competitions than you could ever imagine.

If you recall the article was about how important it is to sell our products by sharing the story behind the product. This vineyard introduced me to Ice Wine, which is made through a process of waiting until the grape is completely frozen. The grapes are then harvested and pressed while they are still frozen. It creates an exceptionally sweet taste. I tried it and it was too sweet for my taste.

Here comes the boo-boo. I said that I hated the taste but went on to purchase a bottle which I have served  to my guests many times now. The story was so captivating ( I have abbreviated it here).Well, when describing a wine you should never use the word hate. I found out the hard way when I received an email from the winery as they shared their disappointment with me. This wine had just won a major award in Europe; it is the pride of the vineyard and one of the most popular wines they sell regardless of the premier pricing.

I thought it was a harmless statement considering that I bought the bottle. Well, it wasn’t. It is as bad as telling a parent that their child is ugly, the car dealer that their cars look cheap, or telling a writer that their book was a waste of time. (I wouldn’t like that one.)  I think you get the picture.

So this is an official apology to everyone at Hunt Country Vineyards for my use of that (I won’t say it again) inappropriate verb.

There is one other lesson we can learn from my error. When negotiating with a vendor for off price merchandise, NEVER EVER insult the merchandise you are trying to buy. It is that vendor’s livelihood and you will never get what you want because you will have insulted them the same I did at Hunt Country.

The Response ~ Readers’ Stories

Last week’s article about how we should sell with stories was very well received and I want to thank all of the people who sent me a note complimenting me about the article. Actually, this was a rare week where no one disagreed with the concept. As I promised I want to share some of the great stories that some of the readers sent along to share. I apologize in advance that I can’t share more of these wonderful stories but I think we have captured the essence with the ones we selected.

From: Barbara McCaughrin
Baskets of Wishes
Dresden, Ontario

Believe me, the concept about a good story with a product really works.

I have a bath product line that I carry and a few years back, Keith Urban was having a concert in the area.  The bath product company (a local company in Ontario, Canada) delivered gift baskets to all the stars performing.  Nicole Kidman was accompanying her husband, Keith.

She absolutely loved the body butter and ordered a whole case to be shipped to her.

I also ordered extra body butter, which has a hefty price attached to it, and sold out very quickly.  Everyone wanted what Nicole Kidman had.

From: Kile MartzDriftless
Fair Traders
Viroqua WI

Here at Driftless Fair Traders, we believe our customer’s eyes should get a bit bigger when we start telling them our story.  When they do get a little wide-eyed, we know we’ve got them hooked.

After being open for about a year and half, we appreciate more and more that the concept we chose – Fair Trade – is full of attractive winning stories that many people respond too.

Fair Trade is an economic system that promotes the welfare of producers. Through the practice of Fair Trade, artisans are ensured a living wage in a safe, sustainable, and equitable work environment.   All our goods are handmade and each one has a story behind it.  Fair Trade is gaining momentum around the world which gives us a constant supply of new and exciting tales to tell.

Arghand soap is a great example.   Sarah Chayes, a former NPR reporter started a cooperative in Afghanistan to aid post-Taliban rebuilding and create an alternative to the drug trade driven by poppy growing.  Their wonderful soap is made from native ingredients.   My favorite is pomegranate, partly because Kandahar, Afghanistan is known as the pomegranate capital of the world.

Every time she tells her story in print, on radio, or on TV, we get orders and inquires for Arghand soap.  Her story, and she tells it very well, is driving customers to our website.

We try to listen to our customers as attentively as we want them to listen to us.  After all, it was a customer that first introduced us to Arghand soap Thanks, Rick, for letting us tell one of our stories.

From an anonymous retailer. I am assuming that they own a shoe store but I’m not exactly sure. However, they sent a wonderful story and I couldn’t edit a word. It’s a little longer but it is the essence of the article.

I found this article to be so true! It’s the reason why so many of my customers journey back into my store when I am working! If I have any info I share it and it builds great customer loyalty and trust.

One small example:

My shoe rep continually suggested that I take on a sock line, not just any sock line but a sock that retailed for $15.50 a pair. They are called Dahlgren Alpaca Socks. I kept replying that my customers wouldn’t pay that amount for a pair of socks! The minimum order was $500. which seemed like a huge amount to me for a risky item. At one show he gave a pair to me and I happened to be going up to Maine for a hiking trip for the weekend.

It rained all weekend but we walked anyway, me in my new socks. At the end of each day I noticed that my feet were warm and dry even though my shoes were wet. The second day I wore the hiking socks that I usually brought which I thought were great before this. At the end of the day my socks were wet and my feet were very cold. The rest of the time I wore only the alpaca socks, vowing to put this line in my store.

My opening line is Do your feet get cold? In new England almost everyone’s do!

I then tell my story and put my personal warranty on each and every pair! If these are not the warmest, most cushioned socks that you have ever owned I will give you a full money refund! (I’ve never had one returned)
This past Christmas season I ordered 25 dozen of these wonderful socks and right now I need to order more because I am out of stock again. One person buys them and then comes back to purchase another as a gift!

I am a small struggling store, been in business for 36 years running it by the seat of my pants! Every now and then you find an item that puts the gust into the wind of why you keep plugging away each and every day.  The people whose lives you touch and influence in a good way make it all worthwhile for me!

Here is a great story NOT from a retailer but from an ad agency executive, Jim Cox, who is with one of the most prestigious ad agencies in Columbus, Ohio.

I’ve been a HUGE believer in the stories behind merchandise. (I tell my retail clients about the J. Peterman catalog that sold clothes without any photos, and the mini-stories that Trader Joe’s uses throughout their POP.) But I became a true convert when the owner of the boutique ad agency I worked for invited all 15 employees (and significant others) to his house for a barbecue. His home is in a secluded wooded setting, and while beautiful and well-maintained, it’s not gaudy or obnoxious.As he gave us the tour through the house, each room had a story. In the kitchen, for example, the floors were a rare redwood from the Amazon rain forest. They had to keep the blinds closed so the morning sun wouldn’t bleach them out. The marble countertops were from a small, rarely quarried region of Italy. Even the watch his wife bought him for his 50th birthday had a story. It was a $15,000 watch (which, by the way, kept the exact same time as the watch my daughter got from a box of cereal) whose gears were hand stamped from rubies — evidently because they are more precise and durable than soft metals.

His enthusiasm for the stories was mesmerizing. It had nothing to do with the cost of the goods, or to show off that he was rich. He loved the stories behind them, and he loved telling them. Ever since that barbecue, I noticed that anything with a ridiculously high margin has a comparable story behind it. And the story is what gets repeated over and over.

I encourage your readers to listen to how their customers explain their latest purchases. They will learn a lot about illogical motives and absurd emotional attachments.

From Hilary Cooper-Kenny at Crazy as a Loom, a retailer who made herself the story:

For 20 years I worked as a nurse……4 years ago, someone close to my heart died from cancer, and I had one of those “aha” moments.

I took an early retirement from my job, much to everyone’s dismay.  I moved  away and decided to follow my own passion.
I found “the house”…..a fixer upper, built in 1790, a house with a lot of history, and a lot of character.  After months of renovation, which my husband helped me with after initially thinking I was out of my mind, I opened for business.  Crazy as a Loom Weaving Studio, with 13 antique floor looms, a house full of color and texture, was truly born.

At first, I thought that street traffic was going to make it work, but three years later, the internet is mostly (75%) responsible for my success.

So here I am, just turned 61 years young, living my dream, doing what I love every single day, in a house that I treasure.  In the words of Thoreau, I have “met with success in common hours”.

That is my story, and believe me, people like to hear it, they are inspired.  Women especially look at me and think that maybe they can live their dream as well.  People who come in the studio, get the full tour, and they are in awe.  They love the house, they love that I am doing what I have dreamt of.
I hope you like my “story”, which is in fact, my life.

From a long time reader, Pat Lorenzo that owns a Tack Store:

I have a product that I make my self and sell in my store. I invented it out of necessity for myself. It is a long versatile lead rope for horses. I designed it to take up little space in your saddle bag and to be used as an emergency piece of equipment.

The product sits on my shelf and doesn’t sell. If I am out in the store I show the rope and tell the story of why I invented it, and it sells 100% of the time.  I agree the story works. I use the item as an add on anytime a customer tells me they are a trail rider.

This is what I say to the customer:

“I invented this, you won’t find it anywhere else, and look what it can do for you”….sold.

That’s as simple and as straight forward as it gets. For all of the retailers who didn’t invent anything just substitute the words “I discovered this on my last buying adventure and look what it can do for you.” Then you will be saying SOLD as well. However, I can’t help but to remind Pat and everyone else that a great sign that captures Pat’s passion for the product will work (not as well as Pat) when Pat’s not there.

Again thanks for sharing and I hope these stories inspired you as well.