Blog

The Most Important Sale You'll Ever Make

Thu, 05 Apr 2012 01:40:00 GMT

You have probably heard the saying ‘the most difficult sale you will ever have to make is your first’ – but what you might not have heard is that the first sale is to yourself! Whilst making a successful sale to yourself doesn't sound too important, it is extremely critical to the long term success of your business.

Truly buying into your own product gives you a drive and passion that cannot be faked or forced. This passion is broadcasted every time you talk to someone about your product/service, whether they are a client, a lead or a networking friend.

A great local example of someone who had bought into their own product is Steve Irwin – he was never selling a zoo visit, he was selling his passion for the preservation of Australian wildlife. This passion translated into huge international success.

Clients of mine, Chris and Marie Saliba, demonstrate beautifully the importance of buying in. Chris and Marie run Coastal Crossfit, a fitness program structured around group personal training. When I first heard of it I figured that’s all they were selling. However after speaking to Chris it immediately became obvious he was selling his beliefs and passion, which was extremely infectious and made me want to become a part of it straight away.

I recently turned up to a lunchtime training session to there was only one other person present. Chris could have easily gone just through the motions and we would have been perfectly happy. Instead he seized this as an opportunity to go through the proper technique for a rowing machine, and his passion for what he did was obvious.

Experiences like this are common at Coastal Crossfit, so I would like to congratulate Chris and Marie on knowing and staying true to their passion.

I challenge you to question yourself - have you bought into your product or service?

Ravi Sharma

Self service: customer convenience or business owner laziness?

Tue, 14 Feb 2012 06:16:00 GMT

During a recent trip to Townsville visiting clients, I was in the passenger seat staring to think that Wayne was lost when we pulled into a service station.

As we pulled into the pump I got a real shock when I realised that this was an actual service station – where the attendants actually fill your car for you. If you don't know what I am taking about ask someone in their 60s.

The station was attached to a little mechanic workshop with the business clearly designed to develop relationships with customers – to win both their fuel purchases and automotive repair work.

It got me thinking about the significant push over the last half century away from customer contact. For example, you’ve probably noticed that Woolworths have rolled out self service checkouts, the theory being you can get one person to man up to eight checkouts, resulting in faster service which means better customer experience and more repeat business.

This might be well and good for a huge corporation, but what are the unseen costs for your business? Think of it this way, by automating or shortening a part of your service, you could be losing a great opportunity to really get to know your client. The service station attendant could casually ask about how the car is going, if there are any issues, which could directly lead to more work and a more satisfied client.

Are there any opportunities in your business to provide a better service to your clients? Improving your service is a win-win situation for all parties, clients get better service and you get more satisfied clients – improving word-of-mouth referrals and profits.

Ravi Sharma

When was the last time you thanked your customers?

Mon, 05 Dec 2011 00:17:00 GMT

Last week I took my car in for a routine service to my mechanic. When I picked it up that afternoon, I was happy (as one can be) with the price, and he explained everything he did in a way I understood. He was professional and courteous as ever, and I was satisfied with the service I received.

When I got in my car to drive home, there was a little handmade packet of lollies with a note that said:

We sincerely appreciate your support.
Thanks to our customers referrals we are achieving our dream of having a family business built on trust and personal service.
We look forward to continuing our service to you in the New Year.
We wish you and your family a very merry Christmas and a wonderful 2012.

Reading this made me feel all nice and warm inside, because it feels good to be appreciated. It reaffirmed my choice in mechanic, and I feel confident referring my friends and family to someone I know appreciates their custom.

So when was the last time you thanked your customers? After all, they are the reason you’re in business.

Are you really living now?

Mon, 28 Nov 2011 06:45:00 GMT

I am in the very fortunate position of being surrounded by an exceptional group of people.

On the desk of one of my team members is this quote by the Dalai Lama, when asked about what surprised him the most about humanity:

"Man. Because he sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die; and then dies having never really lived."

Contrast this with a recent AMP advertisement that suggests that you only really start living when you retire! If this is true then we are wasting close to 60 yrs of our lives.

Upon reading the Dalai Lama's quote it focused me towards what is really important in our lives. Is your business delivering you the happiness you want? Is it allowing you to live now or are you waiting for retirement?

Maximise Your Lead Conversion

Wed, 17 Aug 2011 22:58:00 GMT

In today's competitive business environment, your company is undoubtedly spending significant dollars to increase leads. But what happens once you get them? Could your lead-conversion rates use a boost? Without successful conversion, leads are essentially useless.

Here are five steps that'll immediately increase your lead-conversion rates:

1. Focus on speed to lead

According to a study, the odds of reaching a lead increases 100% if the lead is called within five minutes rather than 30 minutes. The study also found that the odds of qualifying and converting a lead increases 21 times if the lead is called within five minutes vs. 30. Calling leads immediately—before your competition—turns rapid response time into a competitive advantage.

2. Convert leads to conversations, then to sales

Don't get caught up measuring how many leads you're getting. The question is, How many are you talking to? Converting more leads starts with more conversations. Don't rely on email to initiate contact with a hot lead. Instantly calling incoming prospects means that you can spend more time closing sales—and less time pursuing cold leads.

3. Don't rely on CRM systems

Customer relationship management (CRM) systems can stand in the way of immediately reaching your leads by phone. A study found that only 40% of leads receive a response via telephone within 24 hours. In the hours it may take your CRM system to send incoming lead information to you, your competition may have already contacted and closed the sale.

4. Be available—anywhere, anytime

Not there? No problem. As a busy business person, you're often away from your desk. According to a study, weekend and after-hour leads are extremely valuable, but they are often neglected. Similarly, a report found that enormous opportunity exists for after-hour and weekend calling when many companies aren't staffed for rapid response. In the age of mobility, there's no excuse to miss an incoming lead. Lead-response management services enable sales reps to receive detailed lead information by phone—and to make immediate phone contact with the lead, regardless of the rep's location.

5. Be persistent

You already know that persistence is key to sales success. But consistently following up with leads is easier said than done. A report found that 35% of leads are reached on the first call and up to 72% are reached with the second call—but 48% of leads never get a second call.

You're competing hard to generate new inquiries and prospects, but that's not where the battle ends. You are, in essence, wasting marketing dollars if you don't apply the same amount of effort to lead response and conversion that you do to lead generation.

Make the most of your hard-fought incoming leads by putting in place systems that'll immediately connect you with leads by phone, help you close more sales, and ultimately, maximise your lead conversion rates.

Marketing Profs

Money Isn't Everything (Yeah Right!)

Wed, 17 Aug 2011 22:50:00 GMT

Have you heard the following from an advisor?

“I can help you make more money”
“I can make your business more profitable”
“I can save you money”

But is money really everything? Does money really equate to the wealth that most people seek?

Based on the number of business owners that I have spoken to, the real wealth they seek has more to do with time then money. It is sometimes described as Time Freedom or Discretionary Time. In very simple term this means being able to choose what you do with your time rather than having it chosen for you. E.g. I chose to go to work rather than I have to go to work today.

Time is the most equal resource – we all have the same amount, and our individual use of it often determines how successful we are.

So where does money actually fit in? It appears that money is simply one of the vessels or means that helps you achieve your real wealth of Time Freedom. If this is true should your strategies be focused on money or real wealth?

Well I don’t want to take anymore of your time, but maybe you should spend some time making sure you are working towards your real wealth?

Budget 2011 - How will it affect your small business?

Wed, 29 Jun 2011 05:05:00 GMT

The budget was delivered last night by Treasurer Wayne Swan. It is his 4th budget and it was aimed to meet targets and promises Julia Gillard set for her government. The government has amed at triming the budget fat, however, there is only a few changes that directly affect small business.

The budget plans a dramatic shift froma deficit of almost $50 billion to a surplus of $3.5 billion in just two years. This is despite recent natural disasters. Wayne Swan is planning to ride the commodities boom, but needs to manage the two speed economy that resources led rebound is creating. There is going to be $3 billion of skill training to help the mining sector, however it doesn't really address the work shortage in other sectors of the economy. The manufacturing industry gets some small assistance, however education and tourism does not get much attention. This could be a major hurdle in overcoming the negative affect of the two economies that are emerging.

Small business is looking for some relief from the tough environment in this budget. Unfortunately, they didn't get it. The government is relying on the mining boom, however the mining boom puts pressure in interest rate increases. This results in people slowing their spending. This is going to be a tough one for the government to manage.

So what is going to affect small business?

Family Trusts ability to distribute income to minors (children under 18) is significantly reduced. This is currently $3,333 and it will be brought down to $416 with the removal of the Low Income Tax Offset for minors.

The Entrepreneurs’ tax offset will be abolished from 2012-13. The entrepreneurs tax offset (ETO) is a tax offset equal to 25 per cent of the income tax payable on your business income if you have an aggregated turnover of $50,000 or less (phases out up to $70,000)

From 1 July 2012, $5000 immediate write off for small business on the purchase of a vehicle with the remaining cost to be depreciated at 15% in the first year and 30% in the following years. This compliments last year's announcement to allow assets under $5000 to be written off from 1 July 2012.

In a one-off reduction, PAYG Instalments reduced to be 4% above a small business's taxable income in the previous year. You may not actually realise this one has happened to you!

The company tax rate reduction for small business has been brought forward 1 year to apply from 1 July 2012. This will drop from 30% to 29%.

Fringe Benefit changes to bring in a uniform 20% rate, regardless of how far the car is driven. This will be phased in over 4 years. The current method encourages people to drive further, however this will benefit those who drive less than 15,000km per year and reduce the tax benefit for those who drive more than 25,000km per year. You can still use the operating cost or log book method and the uniform rate will be easier to administer.

The easing of the Excess Contributions Tax (ECT) is very much welcomed. This will first time offenders to claim a $10,000 refund from their fund to avoid the tax. Under this controversial tax, anyone who goes over their contribution caps could pay up to 93% tax. Unfortunately, this does not help anyone caught in this situation since the ECT was introduced in 2007.

8 Tips for Building Customer Loyalty

Thu, 07 Apr 2011 05:29:00 GMT

Customer loyalty is something every business owner knows is important, but not always the reasons why. Customer loyalty is important for several reasons, including increasing your company’s profits.

Loyal customers make money for your business in numerous ways – they tend to buy more, more frequently, and they generate new customers for you with positive word of mouth and referrals.

Here are some tips on how you can deepen customer relationships, establish greater levels of trust and build stronger customer loyalty.

1. Understand the true purpose of marketing
Effective marketing is about building trust and developing relationships. Tom Asacker, marketing author, explains the purpose of marketing is to ‘create and maintain a strong feeling with customers so they are mentally predisposed to continually choose and recommend you’. Successful marketing also requires being relevant and unique, which brings us to Tip 2.

2. Identify and build your brand
This is not about your logo or slogan, but branding at the emotional and sensory level. Your brand is what your business is known for, how you engage with customers, and what people can depend on you to consistently deliver.
How could a customer describe your services to a friend? “They go out of their way to find solutions for me.” “The staff is warm and friendly, you can feel it as soon as you walk through the door.”

Identify your brand, and leverage it to see customer loyalty and referrals increase. Don't be shy about showcasing your uniqueness and strengths.

3. Tap into what customers want
To appeal to a customer's needs or desires, you must first understand their motivations, values, and priorities. Each customer has unique needs and wants.

Being tuned in to what customers want and being sensitive to their evolving needs will help you become more resourceful and innovative over time. That is an excellent way to set yourself apart from other businesses and help you build memorable, lasting customer relationships.

4. Outcomes matter
Practicing good interpersonal skills and maintaining solid customer relationships are important for developing customer loyalty. But what really matters to customers are results they can see, count on, and talk about.

Customers might come to you a few times because you have the right product or service for their needs, but they won't keep coming to you based on your business personality alone. Customers must trust you to help them; they must see results and learn something from you to make it worth their while to continue as your customer.

Remember, customers refer friends and family members with comments such as "I've never seen such great service before"—not "Customer service staff are great conversationalists."

5. Integrity leads to trust, which leads to a relationship
Integrity involves fundamental behaviors such as keeping your word, being honest, providing a consistent level of service, and being reliable. Businesses that demonstrate a high degree of integrity are seen as trustworthy.

Building trust requires the businesses to continually put the customer's interests ahead of their own and display a genuine "other" orientation. You demonstrate that by being interested rather than interesting, and by not treating every interaction as an opportunity to share your message.

All that adds up to doing business with integrity. Without integrity, there is no trust, and without trust, there is no enduring relationship.

6. What have you done for me lately?
One of the most common mistakes businesses make is focusing primarily on the early part of the sale. They wrongly assume that once a customer is happy, that customer will stay happy and continue to use the services.

Each customer's experience is the sum of every small experience that customer has while in your place of business. Ask yourself, If I were this customer right now, what would I really want in terms of product, care, and service?

Remember, your customer is always thinking, What's in it for me? What you do (or fail to do) at every point during a customer's course of care makes an impression.

7. Never take loyalty for granted
A successful external marketing campaign will encourage people to try you out, but only good outcomes and an authentic relationship with you will keep them coming back.

Never take loyalty for granted. Never underestimate the power and value of the one-to-one relationship customers have with you and your staff.

Customers return to where they feel connected, where they have a sense of belonging, where there is mutual esteem, where they are treated with respect, and where their care results in positive outcomes.

8. Word-of-mouth marketing isn't new
Third-party endorsement or customer referral has long been the foundation of marketing.

What is new is that the bar for what customers expect in the way of service is higher today. Being good isn't good enough to get customers talking about you. Outstanding is the new good.

Polls repeatedly show the quality of customer service is on the decline across industries. When you consistently exceed expectations, customers become "raving fans." Those are the customers who refer their friends, relatives, neighbors, and co-workers.

Learn to recognise those customers, cultivate them, and express your appreciation accordingly.

Networking - How to Talk Business Without Turning People Off

Tue, 19 Apr 2011 06:39:00 GMT

Networking is great for business owners, but how can you do it most effectively? The challenge isn’t how you can find more opportunities to network, but how to talk about business in an unobtrusive way. If you can learn this, you can turn any social situation into one that can benefit your business. Here are a few tips:

Hone your conversational skills. Your networking strategy will fail before it begins if no one enjoys talking with you. Great conversationalists ask leading questions, listen intently to answers and add their own personal stories to the mix. If you can do these things well, everyone you speak with will rate you as an amazing conversationalist and rate their conversations with you among the best they had all night.

Make friends with introducers. At every event there are people whose primarily skill is helping to connect individuals to others who share their interests or background. These are the people who always come to a moment in their conversations where they say something like "oh, you do _______? You should talk to _____." This moment can come from anyone in any conversation, and usually it is a result of having a great genuine conversation (see above) and adding enough details about yourself that you can make it likely people will want to connect you with others.

Respect the nature of the event. Every event has a format, whether it has some kind of performance and then time to mingle, or a cocktail hour to start the evening before adjourning to tables for dinner. Be sure to respect the type of event you are at. If it is a networking event, clearly you can talk about your company and what you do right away. At a more personal event, you need to select who you are talking to and adapt how you talk about your company and what you do to the situation.

You should feel comfortable networking in every situation. Just make sure you avoid becoming that person at an event who won't stop trying to sell his or her company at every moment.

Increasing the value of your hotel – getting back to basics

Sat, 08 Jan 2011 10:51:00 GMT

Before we start, something you need to know about me. I like to keep things simple. Keeping it simple makes things easier to implement and judge. Occam's razor is a theory that says that the simplest solution is often the best and my aim with this series is to do just that offer simple solutions that will give you the best chance of success.

Five years ago your hotel (like most other businesses) was valued on its net profit, its ability to generate a return and the certainty of that return. Then it all changed - the value of a hotel could be based on the number of gaming machines.

Now we have come full circle and are back with net profits. So now it's time to get back to basics, it's time to get back to the fundamentals - how do I increase my net profit?

This series of articles will concentrate on the key ways to increase your net profit. Specifically looking at:

Sales
Operating Margins
Staff

This issue will focus on Sales.

All else being equal increasing your total sales will increase your gross and therefore your net profit. So how do you increase your sales?

In very simple terms your sales is determined by 3 things:

The number of patrons you have,
How often they buy from you and
How much they buy from you.

Now honestly answer the following question. Hand on heart; for the last month do you know:

How many patrons walked through the door?
How many times did they visit during the month?
How much did they buy from you?

Be honest now, do you have a report or something concrete that will give you this information? Remember you can't fix what you don't measure. Having an estimate or educated guess isn't enough. So if you don't have an accurate measure let's put one in place. Focus on these simple suggestions for each area:

The number of patrons you have: Try to break these down as much as possible:

- Number of patrons who enter your bottle shop

- Number of patrons who enter the hotel and if possible, where they are spending their time (i.e. the number buying from the gaming bar, restaurant bar, or dance floor bar).

How often they buy from you: This involves how many times your patrons walk through the door or visit the bottle shop.

- Do they visit once a month or once a week?

How much do they buy from you?

- During each visit how much does your patron spend?*

*A simple way to work this out would be to divide your total sales by the number of patrons - this is an average and the more accuracy you can achieve with this the better the decisions you can make.

Once you can accurately measure each of these areas you can then make the best decision of which area you want to target and how to target the area.

One of the best examples of collecting the above information is Woolworths with their Everyday Rewards Card. I'm going to detail an experience of mine to give you a real life example of how they use this information.

I recently purchased an electric razor so I no longer needed to use normal razors. After a cleanup I found that I still had some unused Mach 3 razors. Now because of how expensive these razors are, I decided to use them up – but unfortunately I couldn’t find the handle for them. I went to Woolworths bought the old Mach 3 handle and used the Rewards card. 2 weeks after my purchase I received a gift from Gillette. It was a new Fusion Razor!

Based on the information they received from the Reward Card Gillette sent me this free razor to get me to convert to the newer model Fusion razor (obviously to make them more money in the long term). There is no way they would have been able to do this without collecting the data first.

Once you have this information you can then analyse it and target them as needed. I have listed some generic examples of each of the areas but please understand that you need to develop a specific strategy that meets your hotel.

How to increase the number of patrons:

Marketing

There are many different types of marketing all of which have different aims. Your specific aim is to get more people through the door. So make sure your marketing meets this aim - for example, do you want more 18 - 30 year olds? Connect to them via social media (Facebook, Twitter etc). Don't forget to track the success of your marketing.

How to increase the number of visits:

Because you now know why your patrons visit your hotel and when you can tailor your schedule to take advantage of this:

- Which bands play on which nights
- Meal deals
- Types of functions, etc

How to increase purchases:

Real life example: I was in Sydney recently on a training seminar. It was Monday night and a group of us went out for drinks and dinner. We initially intended only to have a drink before finding a second place to eat. What actually happened was that we spent most of the night there. How did the business achieve this result?

- Unprompted they offered to setup a bar tab (as I handed by credit card over to pay for the first round). Even though I declined the tab it was a great strategy and asking unprompted was a great service.

- They also had meal specials which made the decision to stay or go an easy one.

If you understand why your patrons are there you can have strategies to increase how much they spend:

The simple conclusion:

You can't fix what you don’t know. Look at the information you are currently from you patrons. If you can get more (and quality) information you can provide more of what they want which in turn will increase your sales and profits!

- Ravi Sharma, Business Advisor