Another way to look at this is by establishing your own 4-H Club: Hilarious, Happy, Hassle or Horrible.

Here is how the concept fits together:

A (Awesome) customers are Hilarious

B (Basic) customers are Happy

C (Can’t Deal With) customers are a Hassle

And D (Dead) customers are Horrible

Think about your customers.  Typically 10-15% are horrible. They drain the money and energy from you and your business.  Another 10-20% are hilarious and are a sheer delight to work with and serve.  The other 65-85 % are either basically happy or a hassle.

As a business owner, your responsibility is to free yourself from horrible D customers by finding someone more appropriate to serve them. You also must be taking the hassle out of dealing with C customers by raising your prices and better positioning (converting them to B’s and A’s).  And, finally enjoying your happy B customers, and celebrating and laughing with your hilarious A customers.

Another way to think about this is to:  Imagine and dream of your ideal customer.  What do they say to others about your service and product?  How much do they buy from you?  How do they treat your team?  How concerned are they about your success as well as their own?  How do they feel about the value you bring to them and your pricing?  How loyal are they? 

Do you have a clear picture of these magnificent, appreciative people?  You should, because they will help you and your business be successful.

Here’s the coaching question(s) of the moment: 

Why would such a customer choose your business? 

Why would they buy from you?  What changes do you need to make, and what kind of business do you need to create to attract and keep such people? 

The truth is that it is our responsibility as the owner to create a business that will attract our ideal customers.  Stated another way, you will always have the customers you deserve.

Here’s my coaching challenge for this week:  Get with your team and ask these (above) questions, and then create an action plan to start doing and being what you need to be to attract and keep the very best customers and to position those C customers higher in your 4 – H Club.  I would love to hear some practical ideas that each of you are implementing.  Call me with some of your thoughts concerning this concept.  Hilarious, Happy, Hassle, or Horrible.

Who you want to work with and serve is your choice.

Find those prefect customers and improve business sales in 2011…call Ohio Business Coach, Ralph Berge 440.838.0991

Consumer surveys have shown that most customers want timely service first, quality products and services second, and low price third.  However what’s interesting is what many sales professionals think is the right sequence. When asked in one of our sales seminars, “what they think is most important to consumers”? Sales people offered consistent feedback:  they believe the consumer wants low price first, quality second and good service last. Clearly, there is a difference between what customers really want and what salespeople think they want.

Most consumers tell salespeople they want a low price, when what they really want is low cost.  Think about it.  Do you want the cheapest, or that which effectively solves your problem or fulfills your need or want?  Customers want their problems solved.  They realize they get what they pay for, and that the memory of poor quality lasts far longer than the immediate high of a low price deal.

People object to price when they feel that you are asking them to pay more than what they perceive the value to be.  When most salespeople get price resistance, they simply lower the price.  Usually it’s not a price issue, but one of low perceived value.  So how can you raise perceived value?  Through asking great questions and listening to discover what is causing your customer to be dissatisfied.  Then you will be equipped to show them how your product or service will remove the pain and satisfy their need, and even exceed their expectation. This will ensure that price will be secondary and improve business sales.

An example of a good question you might ask is: What will it cost you if you wait and buy this later?  What will happen if you don’t buy this?  What if you try to save and get a poor cheap substitute?   Another example more specific to our business would be: “What would one lost sale cost you in comparison to the fee for a sales training program?”  “What would it mean to gain one great customer per salesperson this year based on better training?”  The point is, we need to get people focused on — the cost of not doing it or the cost of doing it wrong vs. the value from the investment they will make.  (This assumes your product/service actually does save them money, time, effort, and provides value over time)

Real sales professionals focus on value, what the product or service does for the customer, and not price.  They understand that, while price is an issue, it’s not the most important one.  Price will always seem high when perceived value is low.  Don’t lower prices, raise perceived value.  Lowering price only makes your original price suspect and undermines your credibility.

Remember!  Once you set a discount or concession precedent, you’ll live with it for years with that customer.

 Improve business sales…ask Ohio Business Coach, Ralph Berge 440.838.0991

If you are like most business owners, you want more: more customers, more revenues, or more profits. The problem is all three of these factors are end results, not what really drive your business. Action’s 5 Ways refers to the 5 areas that drive your profits:

• Leads … improving and measuring lead generation … and how to leverage any you use now …
• Conversion Rate … developing sales skills from training your team right through developing strategies will give your sales process a massive boost …
• Number of Transactions … often the most overlooked and yet most productive ways to increase revenues …
• Average Dollar Sale … once again probably the easiest to impact and yet so easily overlooked, here we will work with you to increase the value of every transaction …
• And Profit Margins … strategies to boost your bottom line … impacting both you and your Cash flow …

Call Ralph Berge  (440.838.0991) for more on building your business the smart way.

 
CLARITY + ACTION = RESULTS.  Here’s how to do it!

1. Review and understand the formula:
—————-Formula——————–
#Leads x %Conversion = #CUSTOMERS

#CUSTOMERS x Number of Transactions x Average $ Sale = REVENUE

REVENUE x % Margin = PROFIT
—————-Formula———————

#Leads – the number of prospects expressing interest in buying from you

%Conversion – the percentage of those prospects who make a purchase

Number of Transactions – the average number of times customers buy from you in a given period of time

Average $ Sale – this is the average amount that customers spend on each transaction

% Margin = the percentage of the revenue you keep (profit) after expenses are paid

2. create a strategy for each one of the 5 Ways by answering these questions:

1.  What is one way that you will increase the number of people interested in buying from you?

2.  What is one way that you will help a shopper say “yes” and buy from you?

3.  What is one way that you will encourage a customer to buy again from you?

4.  What is one way that you will help a customer buy a little more from you?

5.  What is one way that you will increase your profit margin?

It is also critical that you measure the result from each strategy.

Improve business…ask Ohio Business Coach, Ralph Berge 440.838.0991

Asking questions also means active listening. You can ask questions about your customers work, business, kids or hobbies but make sure that you are listening with sincere interest. It may even be helpful to write down some of the answers – such as the names of their kids, interests etc. for future communication. By asking questions and listening, you are building rapport and attaching importance to their conversation. 

Also, by asking questions you are remaining in control of the conversation. Once you find yourself doing all the talking you are no longer in control. Just remember that the person asking questions sets the direction for the conversation. If the customer is dominating the conversation by asking you questions make sure you answer the question with a question. However, try to vary the questions that you ask. You may remember from looking after your own children or babysitting that being asked “but why?” over and over again tends to get a little monotonous. 

Questions can guide consumer interest, discover a need and give accurate information. There are two commonly known types of questioning – open ended and closed questions. 

Building Rapport and Qualifying…

Open-ended questions are an excellent way to ensure customer involvement in the conversation and are a key to identifying not only what they need but a lot about themselves. You can use open-ended questions to build rapport, to find a need, to discover a customer problem and find the right solution. In journalism there are six key questions used in the interviewing process which is as equally useful in sales – who, what, where, when, why and how. 

Here are a few examples of open-ended questions which are very useful:

Who are you buying the product/service for?

How often would you use the product/service?

What features were you looking for in this product/service? 

This type of questioning yields a lot of great information from your customer and helps you determine which product/service is uniquely suited to them. 

Closed questions tend to get one word answers “yes” or “no.” They can be used to gather information quickly – not unlike a check-list. Using closed questions can also confirm a buying detail and help confirm the sale. 

By using questions you are encouraging the customer to communicate, building rapport, establishing their needs, directing the conversation, diffusing tension and inviting discussion. 

Improve business sales…Learning the art of questioning and listening is the key to increasing your conversion rate and well on the way to creating a continuing customer relationship. 

Improve business…ask Ohio Business Coach, Ralph Berge 440.838.0991

If you are like most business owners, you want more: more customers, more revenues, or more profits. The problem is all three of these factors are end results, not what really drive your business. Action Coach’s 5 Ways refers to the 5 areas that drive your profits:

·         Leads … improving and measuring lead generation … and how to leverage any you use now …

·         Conversion Rate … developing sales skills from training your team right through developing strategies will give your sales process a massive boost …

·         Number of Transactions … often the most overlooked and yet most productive ways to increase revenues …

·         Average Dollar Sale … once again probably the easiest to impact and yet so easily overlooked, here we will work with you to increase the value of every transaction …

·         And Profit Margins … strategies to boost your bottom line … impacting both you and your Cash flow …