THE BENEFITS OF UNDERSTANDING YOUR CUSTOMERS

Understanding your customers helps you to sell more. The more you know about them and their needs, the easier it is to identify opportunities to sell them new products and target them with appropriate offers.

Profiling existing customers also makes it easier to find new ones. You can look for similar prospects, and sell to them in a similar way.

However, you must make sure that you comply with data protection regulations for any personal information on existing and potential customers that you collect, keep and use. There are specific rules for e-commerce.

You can use the information you have on customers to improve efficiency. Keeping a central record of customer details and sales reduces errors and speeds up transactions.

You can also improve customer service. Better access to information helps you deal with customers more quickly. You can tailor product offerings and provide personalised treatment. The right information makes it easier to identify and resolve any problems.

Finally, understanding your customers helps your planning. You can predict what they will buy, and estimate how much stock you need. Linking customer management to purchasing can dramatically improve profitability.

LEARN ABOUT YOUR CUSTOMERS

Your customers are a valuable source of information, so you should aim to collect data that lets you identify your customers and how they behave. This will vary depending on your customer profile. If you sell to individual consumers, you might want to know about their age, gender, income and so on. For businesses, you might want to know what industry they operate in and their size.

You should also try to find out what they think about you and your products and services. For example, learn what they like and dislike and why they choose to use you.

If you have just a few important customers, it's worth getting detailed feedback from them. Companies that sell to individual consumers sometimes use customer surveys.

If you sell online, you can use your website to capture some information automatically.

Of course, as well as collecting the information, you need to store it. The most effective way is to use a central database.

However, you must make sure that you comply with data protection regulations for any personal information on existing and potential customers that you collect, keep and use. There are specific rules for e-commerce.

 MAKE CUSTOMER INFORMATION AVAILABLE

Making customer information available to employees can make them more productive. For example, you could give sales staff access to financial systems so that they can check orders and payments. You need to decide what information different employees might need, and how to make it available to them.

Technology can help. For example, you can share correspondence and other information on your computer network. Using caller recognition, staff can view an incoming caller's details and purchasing history before even answering the phone. Integrated IT systems help different parts of your business to share what they know.

It's important for information to be accurate. It's a good idea to update records regularly, taking care to delete duplicate entries. You could also consider giving customers online access, so that they can update their own details themselves.

You must ensure that any confidential or important information is protected against misuse or accidental deletion.

Remember you must also comply with data protection rules for any personal information on existing and potential customers you collect, keep and use. This may affect your IT systems and those staff that have access to the information.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

7 Common Sales Objections and How to Overcome Them…..

Selling doesn't come naturally to many small business owners, but that doesn't mean they can't do it effectively. Often the key is understanding what is stopping your potential client from making a decision in your favour. Once you know why he or she is hesitating, you can reply directly to that specific objection.

Here are seven common sales objections you may hear during the selling process, as well as some ideas on how you can overcome each one.

1. Price

Example: "Your services cost too much. I can get the 'same' service from someone cheaper."

When the bottom line is the biggest hurdle for a client, you need to help him or her justify the cost. Try breaking down your total cost into smaller amounts that are attached to smaller services so the client can see why your price point is what it is. And make sure you focus on the unique value of your products and services that the client won't be able to get from any other provider.

2. Complacency

Example: "I'm okay with the way things work right now."

When complacency is the culprit, you can try to use just a touch of fear to get the client to see why he or the needs to start thinking about the making changing. Share some research about the competition and some of the changes they have made in their businesses. There is often nothing like a look at something your competitors are doing that you are not yet doing, to move you to action.

3. Fear of Change

Example: "I don't want to change the way we've been doing things for 15 years. Too much can go wrong."

Often related to complacency, having a fear of change can make the decision-making process a difficult one for many business owners. One way to overcome this objection is to demonstrate past examples of change and how it was positive. For example, show the client a list of different ways the industry has changed over the past 10 to 15 years, and how the potential customer has adapted to those changes for the better. This can help him or her be less fearful and more confident about changing things up.

 4. Trust

Example: "It seems like you know what you're doing, but how do I know you really have the necessary experience to do this?"

Trust is something that takes time to build, so if it is a hurdle for your potential client, you need to be honest and consistent across the board to overcome the objection. Be forthcoming with information and share testimonials, case studies and references that will take away some of the uncertainty and give the client confidence in your ability to get the job done.

5. Personal Politics

Example: "I told my brother's friend's wife I'd use her company for my next project."

Sometimes there's not much you can do to usurp a family connection, but you can get yourself in the position to be the next in line. If this is an objection you're hearing from a potential client, think a few steps ahead and show the client what you can do in phase two of the project or in an off-shoot that will likely come about from the work being awarded to a family member.

6. External Input

Example: "I need to run this by my wife/business partner/mentor before I do anything else."

This can often be a positive outcome, assuming the client is truly consulting with others and not just using it as an excuse. One way to make sure it doesn't end up as a deal-ending sales objection is to attempt to stay in the process. Try suggesting a joint sales meeting between the client and their counterparts in order to answer any questions and help facilitate the decision.

7. Timing

Example: "It's too much for me to take on right now; I'm too busy; Call me again in 6 months."

If time management or lack of time is an issue for the client right now, chances are it will still be an issue in six months or a year. To overcome this objection, you need to make the decision to hire you an easy one. Start by listing all of the benefits of working with you, outline the value of the products and services you offer, and explain how easy it is to get started. Make the decision to hire you a no-brainer and you will remove this objection.

Keep in mind that your potential clients may have more than one objection so it's important to be able to identify each one as you see it occur. Once you know what is stopping the sales process, you can arm yourself with the right arguments that will tip the scale in your favor.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

When Employees Become Disengaged……

 Do you know for certain that all of your employees are “engaged employees?” The benefit of having engaged employees is that they are fully involved in and enthusiastic about their work, and they will act in a way that furthers company interests. But what if some of your  key employees are not engaged? And what can you as a business owner, CEO or hiring manager do to ensure your key personnel remains engaged in the work of your company?

While there are profound repercussions to employee disengagement, there are tools that can help ensure the right people are in the right jobs. By hiring people who are naturally rewarded by the type of work they perform, they will be more engaged and, therefore, more productive.

 When I took my first motivators assessment, I was finally able to put into words what I valued in an employer. I learned that I was a high Utilitarian and that my Social concerns, while not my highest motivator, were quite high above the national average. In laymen’s terms, I enjoy investing my time and energy into a project, and value a healthy return ($$$) on the sacrifice that I am making. Furthermore, being able to see a higher social use to my work, encourages me forward on the project.

In a former position at another company, despite the fact that I was qualified for and enjoyed the work I did, I was unhappy. I served on a team, but the environment didn’t feel like a team, and I was responsible for doing much of the work on my own. While my work was strong, the company’s leadership never really knew what I was capable of because my team leader consistently took credit for the work I was producing. Unfortunately, it didn’t seem to matter how hard I worked, or how much I tried to expand my education, because the company traditionally rewarded those employees who had the most seniority. If I worked harder, put in extra hours, and continued to develop my education, I would not be compensated in any manner for doing so. I learned that promotions were for those with the greatest number of years under their belts. Without any control over my own career path, I began to feel frustrated and unfulfilled, and I started to wonder how I was going to grow in my field and develop the expertise I desired under these circumstances. I knew then that this company was not the right place for me.

How many potential “star employees” are you losing each year because their motivators are unfulfilled and they become disengaged? With the expense of replacing an employee at three times that person’s salary, how many employees can you afford to lose this year?

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

If your profit margins aren't rising, chances are your company isn't thriving.

Here are five solutions to the problem....

I believe that your profit margin trend is the single most powerful indicator of your company's health. As margins decline, companies cut their sales and marketing efforts. Manufacturers postpone plant upgrades and delay research and development. And it becomes a lot less fun to own a business. Obviously, something needs to be done.

Here are five bold solutions to help increase your profit margin:

1. Fire Your Customers.

Getting rid of the 20% of your customers who provide the lowest profitability frees up capacity and resources to do work that is more profitable.

2. Go for Mailbox Money.

"Mailbox money" is what I call checks that show up even though you're not doing any extra work. To get mailbox money, license your intellectual property to another company. I know a small automotive parts maker in Alberta who licensed out his unique manufacturing technology to two companies, one in Europe and one in the U.S. Royalties from those deals have kept him in business even though orders from U.S. customers have declined.

3. Set yourself apart.

Focus your energy on products that are meaningfully unique. A business owner I met in the Nova Scotia used to manufacture more than a thousand different types of ceramic tiles and accessories. He voluntarily discontinued about 80% of his products, focusing his sales and development efforts on products that gave him a competitive edge. The result has been a rebirth of the company. He has doubled his profit margin and increased sales.

4. Export.

Look for opportunities beyond our borders. Take advantage of the freedom the North American Free Trade Agreement provides. Use your network of suppliers to find international opportunities. Visit industry trade shows in other countries to seek potential distribution partners. Avail your self of  'freebie' assistance programs offered by both Ontaio and Federal Governments.

5. Love Your Product Again.

Reinvent your products and industry. Unique products command higher prices and greater profits. This requires that the leader of the company—you—become genuinely passionate about discovering and developing new ideas, innovations, and inventions for customers.

I'm continually amazed at the passion and energy that some entrepreneurs have reinventing their businesses. In Ontario I met Tom Lee, co-owner of Lucky's Tomatoes, whose life mission is to grow and deliver better-tasting tomatoes to Toronto restaurants.  Out west I met Bonnie Swayze of  Union Rubber Co. Her family's mission—for 85 years—has been to find new uses for rubber bands. In Mississauga I met John Cronier, the owner of Crown Industries, which makes bakeware and pizza pans. He captivated a dinner party I attended with his passionate explanation of how the pan improves pizza quality. It wasn't the business that was captivating—it was his enthusiasm. Could you do the same talking about your business?

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net