Good customer information held in a structured system will tell you whether customers are growing with you or reducing purchases. It will have a record of every meeting, sales order, complaint, compliment, reference given, product purchased, payment history, budget cycle, nature of their business, basic credit information and key contacts.
All of these are stored somewhere in your company records anyway, but are they accessible in an effective customer information system?
If you have a good system, you can research target markets, make individualised tempting offers to customers, cross sell products and plan campaigns in target market niches with a high likelihood of success. What a great marketing tool – and it’s free.
Using the information
One way of using this information would be to list all customers in a particular line of business, and list which products all or most of them are buying.
Now you could do a survey among them to find out how they are using the products, their degree of satisfaction with those products, and any needs which are not being fully satisfied by the products.
With this information you can:
- Design new products to satisfy the unmet needs or upgrade products which are not performing well for these customers.
- See those customers who are not buying the products most others are buying and convert the non-buyers to buyers, using references from the happy users.
- Promote the use of the least used products to the entire group by email and telephone using references, testimonials or case studies of happy users.
- Plan and execute an external marketing campaign to all non-customers in the same line of business.
- Identify other similar lines of business which are likely to have the same needs, and plan marketing promotions for them.
Those are all turnover boosting opportunities, and they all stem from the free information which is in your company right now. It’s a small step to extend the customer information into keeping information about new business prospects and sales enquiries. This information provides a rich field for future prospecting and marketing campaigns.
Customer information is very useful in dealing with individual customers. For example a customer regularly bought products A and B, but has stopped buying A and is buying less of product B.
These trends are all clear from the records. Has a competitor taken our product A business away and is it busy eroding the product B sales?
This calls for a management meeting with the customer, equipped with the full sales history, record of any complaints and details of the great results other customers like him are getting. With this information you may be able to turn the situation around. Without it there is a chance of losing the customer.
In many companies the information isn’t available in one place. It’s in archived emails, sales order files, call reports, credit applications, telephone messages and diaries. If this is the case in your company then make a start now. Gather together as much information as you can and find an acceptable format.
There are many CRM systems, some of them at low cost or free on the Internet. Make customer information a priority, delegate the responsibility and make sure everyone understands what must be done and why. An affordable idea is to hire an intern to do the capturing and filtering
An even more common problem is that the CRM exists, but it is incomplete and out of date. The sales manager uses it as a stick to beat the sales people but everyone else treats it as a time consuming nuisance.
If this is your organisation I suggest you start by planning what you could do if you had good information and work your way back from there, putting in a project to fix the information. You may want to get a better sales manager at the same time.
How To Use Sales Skills To Build Your Business
If you want to build your business up, read on below for how to use sales skills to do so.
Building your business from the ground up is no easy feat. You might feel overwhelmed by all the ways and methods that are available to you but there is one way that can help your efforts immensely, and that is by using sales skills. Sales skills might not seem like they are applicable to building a business, but what is a business without sale people?
You could look into a sales accelerator for business development course to improve your selling skills. Sales training courses can be useful, as they will teach you about sales techniques and sales strategy, which you can apply to other aspects of your business. So, if you want to build your business up, read on below for how to use sales skills to do so.
Listen to existing customers
An effective way to improve your business offerings is to listen to your existing customers. Listening is actually more complex than it seems, and it means that you have to do a lot less talking. This will help you to truly hear your customers and take stock of what they are saying.
Listening to existing customers is one of the best sales and marketing strategies you can use to improve your business. This is especially true if you have built a relationship and rapport with your current customer base, as this will encourage them to give you insights into any issues they might be facing. Whether you are a small business or a large company, listening to customers is always helpful.
Try to solve a problem
Solving a problem is a marketing plan that is effective and sure to work in building your business. And a great salesperson knows that solving the problem of a potential customer is a sure-fire way to improving the conversion rate of their business.
You will need to do some research into the problems that your target market faces and then focus on how your products or services can be used to solve these problems. This ties into the first step of listening, not only to your existing clients but to potential ones too. Listen to what people are saying and learn to read what is being said. This way, you will be able to ascertain the problems your customers are facing and you can come up with solutions to fix them.
Use word of mouth
Existing customers can be a huge help to your business, in that they can provide you with positive referrals to use to boost your client base. If a customer is happy with the services or products you have provided them with, you can ask them for the name and contact details of other business owners who might benefit from your help.
You can also ask for positive testimonials from customers that you can place on your business site and social media platforms. You should always ask permission before using testimonials, and be sure that they are factual, true and relevant to your brand. Referrals and testimonials are common sales tactics that can be applied to boosting a small business or improving the reputation of an established company. And while nobody enjoys receiving negative reviews, it is important that you use these reviews to learn from your mistakes and improve your customer experiences.
Sell your vision
Building your business might involve reaching out to investors to help with monetary issues, and this is where your sales skills will really need to shine. This is because you are not only selling your business, but you are selling your vision of your business as well.
You will need to give specific details as to how your offerings will help customers to solve problems and answer questions. And you will need to sell a successful vision to your investors of how you want your business to success. Show them that your employees will be happy with how well they are taken care of and that customers will live a better life by using your services or product.
Exceed customer expectations
When a salesperson goes over and above what the customer expects, it is likely that the customer will become a return customer. And this is what you want for your business, right? So you should look into ways in which you can meet and exceed customer expectations.
One of the benefits of always exceeding expectations is that you will no longer have to rely on the “hard sell” to encourage people to use your business. Word-of-mouth will travel about your excellent customer service, which will sell your business for you. If your brand is passionate about providing customers with the best possible service, you will be selling your business and improving it all at once.
Key Tips To Retain Customer And Improve Sales In Ecommerce Sites
If the ideas you are selling are fresh, innovative or even intuitive, you might gain customers, but retaining them actually determines the exact ROIs you can gain from your venture.
Ecommerce in simpler terms is the activity of buying and selling of goods and services over the web. With the increasing reach and accessibility of internet day by day, online mode of business transactions is gaining prominence. For any business, retaining customers is more advantageous than acquiring new ones.
The root of customer retention for any business digs deep. And here are few stats to show the depth of its importance:
- Almost around 41% of online revenues generated are from retained customers that too just by 8% of the retention rate.
- If an ecommerce site can increase their customer retention by mere 5% rate their sales can increase by 25% to even 125%.
- Unsatisfactory customer service takes a toll on a business. About 71% of unsatisfied customers end their relation with the vendor.
As the importance of customer retention is being cleared, the next question to pop up is the method of retaining customers. You have to keep note of the important aspects that lead to retaining customers effectively. Here are a few handpicked proven ways to retain your customers and thus improve the sales.
1. Gesture of appreciation
A simple gesture of appreciation or offer or discount can do wonders in enhancing sales. Unexpected surprises or gifts are something which is appreciated by everyone and can cement your relation with your customers.
For this you can add extra discounts, offer vouchers or can send the customer some gifts with a handwritten ‘thank you’ note couple of days after buying. This unexpected gesture of appreciation will divert customers’ attention towards your site.
2. Email marketing
Your customers already provide you with data about their choices and preferences. However continuous email campaign is a subtle but effective way of expanding your customer database. Expand the items that are being added in the emails.
Try to innovate the offers and discounts, add newer items to increase your customer’s preferences and keep tracking them. Track which sequence of emails is gaining the highest hits.
3. Gold membership
Probably the most used, yet efficient way of customer retention is VIP privileges and Gold membership etc. A policy including reward points and hierarchical VIP status enabling your customers to various privileges offers etc. act as significant ways of improving sales. The alluring offers and VIP memberships will entice your customers to shop more.
4. Customer Services
A seemingly consistent and personalised customer service is what controls most of the brands nowadays. Most of the market researches show that it’s the customers who modulate and decide the fates of the brand. So be where your customers are for cementing a professional relation with them.
5. Showing diligence
Just occasional email campaigning and gifts and vouchers aren’t enough for successful customer retention. In the era of high-end competition, if you are not careful about the needs, preferences, requirements and most importantly, the complaints of your customers, no matter how much offers or VIP privileges are provided, customer retention is impossible.
Being proactive to the needs of customers, engaging them continuously as well as collecting and reacting to their feedbacks are the three major steps for any customer retention scheme.
6. Create value for Customers
If you are buying online , will you choose to buy from a website that sells low quality products at a cheap price? The answer is certainly no because everybody desires for quality in terms of shopping. Also, cost alone isn’t valued by customers, there have to be multiple components of value addition to optimise the overall shopping experience for your customers. As an e-commerce company, you need to master the elements of making a successful e-commerce website and later work upon your plan.
7. Limited period offers
Almost all ecommerce sites nowadays follow the policy of giving limited period offers and big bash discounts etc. A large-scale promotion before the said offer period, and some lucrative offers along with VIP privileges can help.
Improvising the existing privileges too can lure the existing customers into more shopping and hence enhance online retail sales.
8. Transparency in sales
Honesty is the key to success in any field of life. An ecommerce business site is no different. It takes painful long period of time for building up a company’s reputation. The only cue card that vouches for the reputation is transparency in sales and company’s policy.
The more transparent you are the better feed you get in return. So, whatever be the service you provide, keeping hidden policies and hidden charges is a strict no-no.
9. Promise and supply gap
It’s good to aspire for more, for bigger contracts, more sales but aspiration shouldn’t blindfold your capabilities. Continuous offerings to customers, more discounts and bigger promise for retaining them shouldn’t go beyond your limits and you end up giving lower outputs in reality.
This, in long run, hinders your company’s reputation to a considerable extent as well. So, promise only according to your limits and not beyond.
10. Building up a customer community
Humans are social beings by nature. The brand you are selling can actually act as a platform for different customers. Add a community chat room in your site where your customers or the Gold members can login by their credentials and discuss the pros and cons, offer fresh ideas, match and compare their services etc.
This allows for a rigorous service assessment, customer needs, and fresh idea generation for increasing sales and knowing the pulse of the shopper.
11. Enhancing social shares
This is an add-on feature of the preceded one. Your clients are your potential buyers some of whom are even potential giant-scale buyers. To churn the need of buying in them, incentivise your social platforms. You can do that by putting brand ambassadors’ photographs and ask for a competition amongst the clients.
Alluring offers and gifts for the winners will also make it an enticing professional deal. This can act in both retention and outreaching to newer clients. Also, these gifts and competitions can enhance the word-of-mouth publicity as well.
To wrap it up
Retaining customer is as important as reaching new ones. In fact in long term, customer retention plays a pivotal role. So a proper, polite and courteous customer service, a prompt feedback and complaint resolving team, transparent policies and quality performance on-time are few attributes that can retain customers and take your business sky high.
The Pros And Cons Of Selling To Your Friends And Family
Don’t ignore the first stages of engagement, just because they don’t result in immediate purchases.
“When starting out in business, the first people that you rely on to test out a product and pricing are those closest to you or as we teach the kids in the FutureProof programmes, low hanging fruit. But what do you need to keep in mind when using this as your first customer set? The feedback loop from selling to these people will be skewed and if you know this, you can build a business that will survive outside of “easy targets”, says Lisa Illingworth.
1. Confidence Boosting
Starting a business is ridiculously hard. To take the plunge is often the scariest thing that we attempt and with the failure rates being heavily stacked against business survival, it should be the goal of every new entrepreneur to boost your confidence. And nothing boosts confidence like an eager customer.
Friends and family make great confidence boosters. It’s their mandated job to enthusiastically follow your business Facebook page and buy every product you have to sell, even if it is in early development phase.
2. Gentle Criticism
Intrinsically linked to the first pro, is the second pro that friends and family should deliver criticism in a gentle manner that will not break your fragile spirit. These people should be heavily invested in your personal growth and if this is true, they will be concerned about your infatuation with this business, and not breaking it.
And this may only be because they don’t want to field phone calls late at night after the idea tanks or pay your rent when the funds dry up.
3. Cash Flow
The life blood of any new business is the constant trickle of money coming into the business in the early days to keep yourself, the entrepreneur alive and fed. Don’t underestimate the necessity of keeping money flowing, even regular but small amounts. Friends and family are great sources of quick, regular purchases and they are more likely to choose your small business over a larger one because of the emotional investment in you.
1. Inflated Expectations
Please don’t be fooled by the outright enthusiasm that your family and friends have for your new product or service as the general sentiment carried by those that have no idea who you are. You will be sorely disappointed when you find out that all that hype was based on a personal connection and investment in you, the entrepreneur.
When people outside of your personal network see the value at the price you’re charging, you are then quite literally, on the money. Until then, keep your expectations in check.
2. False Feedback Loop
I think like most of us who could just not bare the deflated façade creep across a friend’s face if you gave them cold, hard feedback that the homemade mix of spices they have randomly thrown together and called ‘Chai Tea’ is not a tasty as she thinks it is. And thus, we buy a jar and stick it in the back of the pantry hoping it gets forgotten.
This type of feedback loop, whilst protects the relationship, does not protect the young business person from the harsh reality that their product is just not that good. You may be concerned about how a friend will take the news and the impact it will have going forward, a customer will not be that forgiving. The false feedback loop sets an entrepreneur up to fall even farther when the real feedback starts coming in.
3. Market Exhaustion
If the only customers you actually have are those purchasing based on their investment with you this market will quickly become exhausted. If you have not devised a strategy to tell others outside of your network about your business, you will not be developing a continuous stream of new customers through a customer journey.
In marketing, it is almost never that people buy on the first encounter with a business. There needs to be a ‘dating’ like process where customers get to know, like, trust and try before they make a purchase. If you have ignored growing these segments of your marketing and sales, you will eventually exhaust those in your network and be left with limited cash flow and little market awareness.
What then is the answer to this conundrum? By all means take the confidence boosters from those closest to you that will keep you afloat in the early stages of growth, but keep your expectations measured and seek out the harsh criticism from strangers to refine your offering so as to have real value at a palatable price point.
We teach the kids at Futureproof to find people to buy your service or product that are easy to get to without spending time or money but we don’t specify who they are rather to find the low hanging fruit in order to start but spend time marketing to a larger audience at the same time. Don’t ignore the first stages of engagement, just because they don’t result in immediate purchases.
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