How To Spend Less Time Marketing and More Time Doing What Makes You Money
As a student working on my PhD in the fall of 1995, I came upon an article in Forbes Magazine about Executive Coaching. My plans at that time were to become a “communication consultant” with large corporations after graduation. I already was engaged in consulting work as an intern for a large manufacturer of rock crushing equipment. There was just one problem with my plan: I would go from startup to busy and then back to startup. There was no continuity with my business plan. I would be a “never-ending startup.”
This article suggested an alternative. I would become a small business coach. As I acquired clients, instead of performing a single analysis and suggestions for improvements, I would teach those improvements to the CEO for an extended period of time. In fact, a client whom I acquired in the fall of 2001 is still a client today. I’ve coached him at least monthly (sometimes weekly, as during the 2008 downturn) and also coached several members of his management team. It would not be a stretch to say that his business and his referrals helped me to prosper over the next 20 years.
What does this have to do with you and your business? Well, the same principles apply to all service and product businesses: put together a business plan that allows for more repeat business and less new business. And if you want new business, try for referrals and do not spend your money on excessive advertising. This paper will outline five ways to make that happen.
First, put together a portfolio of goods and services that need to be renewed or constantly serviced. I had a friend who owned a manufacturer rep’s business. He started, literally, in his garage selling nuts and bolts at the age of 50 after being laid-off for personal reasons. After careful planning, he began to acquire lines that he called “wear items” such as drill bits, sandpaper, etc. Soon he had a warehouse that occupied a full city block! Likewise, for service companies offer service agreements for a very reasonable rate. The objective is to keep making constant touches with your clients.
Second, keep all bids and paperwork for everyone, even if you did not get the sale. When I had my own waterproofing business, each spring I would reconnect with bids that either said no or went with someone else. I was able to sign about 20% of them using last-years price. It only took a phone call, no additional advertising costs. Many times it was all about budgeting and timing. If you did the work, ask them if they have more or if they could give you a referral. This is called direct marketing and only requires your time. My experience shows it gets better results than advertising alone. Being a preferred vender gets a better price, too.
Third, remember breath and depth. Breath means offering more products and services and depth means having more experience in what you offer. Returning to my waterproofing company, each year I would try another service and test the results. Some worked, such as roof and fireproof coatings. I also tried paint removal using propane torches with mixed results. I soon specialized in exterior coatings only and used referral work for inside jobs in the winter.
Fourth, make it easy for repeat business to find you and contact you. Plumbers and electricians always leave stickers on hot water heaters and electric panels. Put your clients on an email mailing list or send follow-up cards to them. Let them have your cell phone number and insure it goes into their cell phone. If they are so inclined, try social media, but I can assure you that most people over 55 don’t like it. Just find a good reason to contact them.
Fifth and most importantly, offer benchmark customer service. There are five factors to this and you can remember them with the letters RATER:
Responsiveness – answer your phone when it rings or get back to them as soon as possible. Always show up on time (this alone is 60+%).
Assurance – knowledge, become an expert in what you do.
Tangibles – look good – yourself and employees, trucks and vehicles, and the work you perform.
Empathy – be able to communicate in a way that “feels their pain” and be prepared to resolve any problems
Reliability – when you leave, the job is fully completed and the bill is correct. If not, always remember responsiveness – go and take care of any issues.
In summary, you show up on time, know what you’re doing, look good, communicate well, and offer a finished product at the quoted price. People do remember and customer loyalty will never disappear!
About the author:
Bob Holley is a business coach who recently relocated to Northwest Arkansas to be near family. He started coaching in 1995 as an intern while working on his PhD at the University of Utah. He is available by phone or text at (479) 549-8454 or email at drbobbizcoach@gmail.com. His website is DrBobBizCoach.Com