Don’t Moan About the Economy Until You’ve …

The news of doom and gloom on the economic front is everywhere. I don’t know about you, but personally, I’m sick of it.

Why? Because it is pulling people and businesses down and holding back success.

It’s really, really easy to apportion blame for any business ill on outside forces, and for the last year or so, the blame has been laid firmly at the foot of the economy.

It’s almost as if the economy is some kind of evil spirit that’s put a curse on millions of small and medium-sized businesses, and it’s also one the media has taken to heart in order to have a bad boy to point the finger at.

But let’s have some reason here. Let’s have some voice of sense. Let’s have, and apportion, some responsibility.

First of all, it’s the willingness and the ability to innovate and to take risks that drives the economy, not the world of business.

Second, innovation does not just grow on trees: it needs driven people who are also people of action and accountability.

Third, the keys to all this are an ability to take responsibility, and a desire (and a willingness) to act, even if the action is considered somehow “wrong” by the flock of the majority.

Innovation, responsibility, and action all require a vital element to make them work: courage.

Courage requires resolve, and resolve requires will, which in turn links to commitment.

So here’s the big question: how many business owners have the courage, the resolve, the will, and the commitment to move, to plan, and to forge a solid competitive advantage, even when the forces of the market might appear to be against them?

Answer: not many.

But those who do have these elements in place are able to do so because they also have a system in place against which they measure their progress. And it’s here that I’d like to share with you one of those systems: Ready?

For current customers, the smart business owner takes their list of current customers and they segment it, that is, they chop it up into segments and each segment has a purpose.

Let’s take a modest list of 1,000 people, the top 200 of whom (20 percent) are regular, high price buyers, and of these a group of 50 people (5 percent) are even more regular, even higher price buyers.

Each of these groups needs special recognition and special offers just for them. They also need to be made aware that you as the business owner KNOW they are the higher price buyers and that those people in the group of the lower 150 know about the extra special treatment and offers those people in the top 50 receive—and vice versa.

The people in the next group down, the people in the 60 to 80 percent range of buyers need lesser offers but they also need to be made aware of the better offers in the highest 20 percent group above them.

Likewise the 40 to 60 percent of people in the group lower down the pecking order. Of the remaining, lowest group, these people need to be given other offers and incentives to move them up into the higher group, with the very lowest group of spenders given a range of specific, value-laden, benefit-rich bargain offers that encourage them to move into the next highest group so that you can bring in newer (hopefully higher spending clients) at higher levels.

Regular contact with all customers is a given, but not all customers are created equally.

It’s also important to communicate with customers through multiple channels. This means if you’re an online seller, you’ve got to take steps to get people’s mailing addresses so that you can use direct mail. Or to encourage them to sign up for a free webinar or teleseminar in which you offer discounts of special pricing.

If you’re a bricks and mortar outfit, use tools to collect people’s names, telephone numbers, and e-mail addresses through an incentive scheme such as a regular shopper discount card, or through e-mailed coupons and telephone announcements.

Newsletters and prize draws can also be used to attract people willing to spend money, as can social proof and social positioning in the guise of testimonials.

Following up after a purchase via e-mail, regular mail, or by telephone to ask about client satisfaction can also make you stand out because so few businesses take the time to do this.

Likewise asking for and make notes of details of family vacations, birthdays, and special preferences can all, when added to direct mail or any kind of communication, further and strengthen the bond of the client/vendor relationship.

Sending special holiday or birthday greetings and discount offers also make great attention grabbing and recession busting strategies, yet way too few businesses make use of them.

Offering free reports, white papers, and discount coupons for related businesses can all link back to you in additional profit.

All of these points are designed with one goal: to give you “share of mind” (more likelihood that you’ll be the first company or service they think of) when the prospect is in need of your service or product.

If you’re doing none of these things, start now. If you’re using one or two, employ more. And if you’re using all of them and making headway, you are among a tiny, tiny percentage of businesses that are doing well and that will go on to even better.

Thanks for reading. Have a great week.