Keep Your Customers Coming Back

Maintaining regular customers is more cost-effective than going after new ones. The 80/20 rule maintains that 80 percent of your business will come from repeat customers, so keeping those familiar faces coming back should be high on the list of priorities for any business.

But many businesses might take regular customers for granted and may not realize if some of those familiar faces aren’t frequenting their establishments as often. These tips will help you keep them coming back.

• Get feedback: Customers come to your business because you meet a need or solve a problem for them. As time goes by you need to determine whether you are still meeting those needs or solving their problems. The only way to effectively do this is by reaching out to regular customers through written surveys, questionnaires, telephone surveys, and your Web site. Ask specific questions about past experiences and clients’ current needs.
• Break the high-tech barriers: Voice mail, computerized phone calls, kiosks, and e-mail form letters do nothing to bring you closer to your customers. While technology has made it faster and easier than ever to communicate, it has also taken the human element out of business transactions. Customers have gone full circle and are once again seeking human beings when they have questions or problems that need to be solved. Being accessible, especially to regular customers who have established a relationship with your business, is very important.
• Create loyalty programs: Pay for nine car washes and you get one free. Many business owners have never thought about creating their own clever twist on such a simple loyalty concept. Customers like to be rewarded for their loyalty, whether it comes from paying for a one-year membership and getting three extra months for free or getting discounts in a frequent-buyer program. Make it a point to reward regular customers.
• Maintain a database and use it wisely: Reach out to your regular customers through e-mail. You can use software programs to periodically send messages to your regular customers. Even though it is a mass mailing, you can send something with a personal touch that captures your customers’ attention and meets their needs, which might coincide with a holiday or the change of seasons. Also, keep in mind that too many businesses send the same old reminders again and again. Therefore you should vary your means of contacting your regular customers.
  

If you have lost a steady customer to the competition or because of dissatisfaction with your service, you need to work a little harder to regain that person’s trust. Here are some tips for bringing back lost customers or clients.

• Offer an incentive for reopening the lines of communication: Give a discount for filling out a survey that could divulge why the customer is dissatisfied or went elsewhere. If you have a personal relationship with clients, there is such a thing as a free lunch: Make the offer and reopen the dialogue.
• Rebuild trust: Offer to resolve the problem and give them a guarantee. This time if they are dissatisfied with your product or service, or find a competitor that is charging less, you will immediately rectify the situation, whether you provide the service for free or beat a competitor’s price.
• Be accountable: Customers respect honesty and accountability. Therefore if you’ve made mistakes, failed to deliver on a promise, or mistreated a customer in any manner, you can simply and sincerely say that you are very sorry. Accountability and an apology can go a long way to rebuilding a relationship.

Whether you are trying to maintain your regular customers or looking to bring back those you have lost, it is always important to remember that flexibility and good customer service should be an inherent part of your plans.

Credit Lines vs. Credit Cards

Both lines of credit and borrowing money on your credit cards can be effective ways to finance small business operations. Both are revolving, and charge interest only on outstanding balances. And both have predetermined borrowing limits. However, there are big differences in terms of cost, convenience, and risk.

The major difference is that credit lines usually have lower interest rates and higher available limits. Commercial lines of credit are therefore more cost-effective than credit cards. But that's not to say that credit cards don't have advantages — especially in terms of convenience.

Instead of asking your bank to transfer funds from your credit line to your checking account — to write a check for office supplies, for example — you can just whip out your plastic and charge it. Another credit card plus is record-keeping. Monthly statements are a handy way to track expenses for general record-keeping and tax purposes.

Credit cards also frequently come with perks like air miles, travel insurance, warranty extensions, and discounts on rental cars, hotels, and gas. If these extras are valuable to you and your company, credit cards make a lot of sense.

Additionally, credit cards offer grace periods on purchases, usually 25 days. That means you can avoid interest charges altogether if you pay your balance in full each month.

Fortunately, credit lines and credit cards aren't mutually exclusive. You will certainly want to obtain at least one credit card for business expenses. But you may also want a line of credit for larger purchases and to draw upon during periods of irregular cash flow.

Bank Loans for Small Businesses

Traditionally, banks are more conservative with their investment dollars. Unlike many venture capitalists or angel investors, they are far more likely to approve a loan for an established business over a startup or emerging company. This is largely due to the fact that they are investing the money of their depositors.

However, thanks to government agencies such as the Small Business Administration (SBA), which work with many banks, small business owners can get business loans from banks with a strong business plan and well-prepared business loan request. Moreover, banks are more likely to give modest-sized loans, whereas venture capitalists are looking for much larger deals.

First and foremost, prior to approaching a bank, you should have all your key documents in order, starting with a solid business plan. You will also need to have the most recent financial statements available, projections for the business (this is typically in the business plan), and a repayment plan, plus collateral. Collateral may include:

Hard goods such as equipment;

Real estate;

Stocks or bonds;

Other personal assets;

Personal guarantees.

Banks also want to know that you're making your own investment in the business. A bank is more likely to approve a loan if (pending a solid business plan) it sees that the owners are investing a good percentage of the necessary startup capital into the business.

To maximize your chances of receiving approval on a business loan from a bank, it's wise to look at the situation from the standpoint of the lender. A lender wants to know:

Exactly how this business will operate and why it's expected to make money;

Exactly how the money will be used;

How you plan to repay the loan and over what time frame;

That you're willing to take a significant financial risk in the business;

That you're responsible and can manage this business;

Who else is involved in management or operations, and that they will also be responsible for the proper use of the money from the loan.

The smaller the business, the more closely the individual behind it will be evaluated. Most small businesses, in the forms of sole proprietorships or partnerships, are closely tied to the experience, know-how, and overall character of the owner(s). Therefore, you need to make sure you get your own financial records in order before asking for a bank (or any lender, for that matter) for money to start a business. A solid personal credit rating is also very important, since a small business is typically an extension of the individual who starts it.

Do you know your five P’s?

1. Product is what you sell, whether it’s a physical product or a service, idea, or yourself (like when you search for a new job).
   
   
2. Price is not only the list price or sticker price of a product, but its also any adjustments to that price, such as discounts.
   
   
3. Placement is where and when you present your product to customers.
   
   
4. Promotion is all the sales activities, advertising, publicity, special events, displays, signs, web pages, and other communications designed to inform and persuade people about your product.
   
   
5. People – Referral Marketing is a powerful marketing force where your customers serve as a sort of “mini” sales force for you. They refer others to you because they’ve had a positive relationship with your people.

Are you Experiencing Designer Block?

I had a hard time coming up with something to post lately. Therefore, I woke up and decided to post something a little different today. I decided to post exactly what was on my mind.

After completing jbstanley.com, Jennifer Stanley came to me to create another website. The website called cozychicks.com. Although, so far so good and I am not completely finished yet, you did not see me struggling to come up with a concept for this design. Yes, I had a tough time coming up with the concept and design for this site. This was a bit different approach than what I am use to but things seems to be working out ok.

If you are a designer, keep in mind that sometimes you will experience designer blocks but do not give up. Keep fighting!

The site is about a group of seven female cozy mystery writers that has come together to create their own community online. Although at the same time, individually owns their own personal web site.

Jennifer, I think that this is a great idea and a good way to build traffic and attract potential buyers for your website. Keep up the good work.

How to advertise with little money?

Advertising does not have to cost a lot of money. Some of the most effective ads can be very inexpensive.

Word-of-mouth advertising is often misunderstood. It cannot be passive if it is to be effective. You have to ask customers and friends and acquaintances for referrals- ask them to tell their pals about what a good job you do.

How can I use search engine optimization and search engine marketing to promote my business?

Search engine optimization (SEO) and search engine marketing (SEM) are two important ways to promote your business to online customers. SEO requires making your site search engine-friendly, and SEM involves targeting potential customers by purchasing relevant keyword ads on search engines such as Google, Yahoo, and Alta Vista.

SEO: There are many ways to optimize your site so that search engines will list your site higher in their rankings. Start with the following:

• Links from other sites: Search engine spiders move from site to site across the Internet by following hyperlinks. The more high quality and high trafficked sites you have pointing to your site, the more important the search engine will think you are. Make sure to register your site with directories such as Yahoo and the Open Directory Project.
• Internal links: Make sure your site is well-organized and easy to navigate. A site map will help visitors — and spiders — navigate your site.
• Meta tags: Meta tags are hidden HTML directions for Web browsers or search engines. They include important information such as the title of each page, relevant keywords describing site content, and the description of the site that shows up when a search engine returns a search. Make sure your meta tags accurately describe your content.
• Keywords: Consider likely words or phrases that users might type into search engines to find your site. Make sure your content contains those words or phrases, and include them in your title portions of your site and in relevant content.
• Search engine optimizers: Businesses often enlist the help of optimizers who specialize in improving the visibility of their clients’ sites. Among other things, they’ll register your site with major search engines, list it in the appropriate directory, write optimized content for your site, and recommend changes to your site to specific search engine keywords that a user might submit.

Traffic Blazer makes it a snap to promote your business online. increase your online visibility and make money on the Internet…in four simple steps! NO technical expertise is necessary. If you can type and click, you can use Traffic Blazer! Still not sure? We even included the comprehensive Traffic Blazer Help System, offering tips, guidance and detailed tutorials on search engine optimization and the search engine industry.

E-Mail Marketing Basics for Small Businesses

E-mail marketing, if done correctly, can be an inexpensive and quick way of reaching a very large audience. E-mailing advertisements (with permission to have the recipient’s e-mail address) can still become redundant and the recipient will likely ask to be taken off the mailing list unless you:

• Offer new discounted products or services regularly
• Provide very targeted mailings
• Offer some content
  

Even two or three sentences of original content can provide a reason to read your e-mail. It can also support the advertising that otherwise may be deleted. Short bits of information, such as five tips for a healthy lawn from a lawn care company or dressing for success from a clothing retailer are ways to keep your audience reading your e-mails. Establishing your own newsletter (which may only be a few paragraphs) can draw the attention of your readers. When e-mailing customers, you also need:

• A catchy headline
• A recognizable company name in the “from” box so they’ll know it’s from your business
• A simple one-click manner in which they can get more information on specific products or services
• A means of reaching customer service

Since you may only have one second to capture the reader before he or she hits delete, it’s to your benefit to make sure something interesting shows up in the window that displays part of the e-mail prior to the reader actually opening it. This window can literally provide you a “window of opportunity” to grab their attention. Make this about “them.” Unlike a press release, which tells the media what your business is up to, e-mail marketing needs to focus on benefits to the customer. Once you’ve got them reading, you can put as much as you’d like about your company farther down the page. They can elect to read it or not. Nonetheless, the farther down the reader scrolls, the more advertising and marketing information he or she will have absorbed.

We encourage you to sign up for a free trial.

ARE WE COMMUNICATING EFFECTIVELY WITH OUR MUST-HAVE CUSTOMERS?

An important form of communication that can inform and attract must-have customers is your advertising. Keep in mind that all of your communications and interactions with customers are forms of advertising.

Sadly, most business advertising of the traditional sort doesn’t work very well. That’s because many people mistakenly think the purposes of advertising should be to strengthen brand awareness, or win awards for creativity. In fact, advertising’s only goals should be to:

• Give your core customers a reason to keep buying from you.
• Give your must-have customers a reason to start buying from you.
• Increase your sales and profits.

If your advertising isn’t doing those three things, you might as well be throwing your money out the window. Some advertising is really just egotising — it makes management and the agency’s creative people feel good, but it doesn’t add to the bottom line.

In too many cases, companies work hard to establish a certain image, such as elegant department stores designed for affluent core customers. Then, they disseminate advertising filled with price-reducing offers directed to the bargain-hunting crowd, which certainly isn’t their core group.