Dave Donelson's Blog: OutTakes, page 18
January 11, 2011
What Are Your Customers Worth?
Next time you're considering the worth of a customer, take into account a business like Sueann Blackwell's automotive restyling shop in Merrillville, Indiana. At Merrillville Restyling, most customers are serial car owners. These enthusiasts don't just trick out one set of wheels and live with it; they buy, sell, trade, and do it all over again and again. Do the math on the customer who gets a different car every couple of years. If the shop's average job is $1,500 and the customer stays with them for twenty years, he'll bring ten jobs—or $15,000—through the door. If the gross margin (before overhead expenses) is 40%, the shop owner will put $6,000 in the bank.
Plug in your company's numbers and think about that the next time you're tempted to brush off a newbie.
One temptation to resist is the urge to make the customers' decisions for them. It's easy to limit the number of options you show them in the interests of time or from the mistaken belief that you're clarifying the issues for them. The problem, of course, is that later they may discover that you've done so and misunderstand your motivations. It's fine to guide them in their decision-making, but don't give them any reason to think you've shortchanged them.
Another thing to keep in mind with newbies is that praise goes a long way toward making them feel good about their decisions. Think about Little League for a minute. Which coach got the most out of his team, the one who screamed at you about errors or the one who applauded when you did something right? The same is true for a new customer. As they make each incremental decision that goes into drawing up the specs for their order, confirm each decision as a good one. They'll feel better about themselves—and about doing business with you.
That's the goal, of course, to make the neophyte customer so comfortable with your business that he'll come back the next time he has an itch that needs to be scratched. Keep in mind that the second job will be easier to explain than the first one and the third one will be easier than the second, and so on. That makes the time and patience you spend on the newbie customer an investment, not an expense.
Dave Donelson, author of The Dynamic Manager's Guides a series of how-to books for business owners and managers.
Plug in your company's numbers and think about that the next time you're tempted to brush off a newbie.
One temptation to resist is the urge to make the customers' decisions for them. It's easy to limit the number of options you show them in the interests of time or from the mistaken belief that you're clarifying the issues for them. The problem, of course, is that later they may discover that you've done so and misunderstand your motivations. It's fine to guide them in their decision-making, but don't give them any reason to think you've shortchanged them.
Another thing to keep in mind with newbies is that praise goes a long way toward making them feel good about their decisions. Think about Little League for a minute. Which coach got the most out of his team, the one who screamed at you about errors or the one who applauded when you did something right? The same is true for a new customer. As they make each incremental decision that goes into drawing up the specs for their order, confirm each decision as a good one. They'll feel better about themselves—and about doing business with you.
That's the goal, of course, to make the neophyte customer so comfortable with your business that he'll come back the next time he has an itch that needs to be scratched. Keep in mind that the second job will be easier to explain than the first one and the third one will be easier than the second, and so on. That makes the time and patience you spend on the newbie customer an investment, not an expense.
Dave Donelson, author of The Dynamic Manager's Guides a series of how-to books for business owners and managers.
January 5, 2011
Time To Vote For The Empire State Book Festival
Here's an important message for book lovers--and library supporters--everywhere from Michael Borges, Director of the NY Library Association:
Dave Donelson, author of The Dynamic Manager's Guides a series of how-to books for business owners and managers.
The New York Library Association is competing for a $50,000 Pepsi Refresh Grant to fund this year's Empire State Book Festival.
Please visit http://pep.si/hmtthN today and register to vote. You can vote both from home and work (separate email addresses) and you can vote every day for the Empire State Book Festival until the end of January.
Not many library sponsored projects get funded so let's show the nation that we support libraries, literacy and literature by voting for the Empire State Book Festival at http://pep.si/hmtthN.
For more info about the Empire State Book Festival, please visit www.empirestatebookfestival.org.Vote often and forward this message to your friends, families, and colleagues.
Dave Donelson, author of The Dynamic Manager's Guides a series of how-to books for business owners and managers.
January 4, 2011
The Emerging Market: Communicating with Youngsters
It is increasingly difficult for many shop owners to profitably serve the market of younger automotive enthusiasts. According to John Pruitt, who owns John's Rod Shop in Abbeville, South Carolina, "The Honda Civic that that teenager's driving out there is comparable to our generation's '55 Chevy. Unfortunately, usually those guys don't have the money."
"A lot of those guys want to buy every part over the Internet, and we can't compete with the Internet pricing," he observes. "These young guys are real savvy and they do a lot of the work themselves or they have a buddy do it because they don't have the money to pay a professional shop."
But that's not to say they should be ignored. As Pruitt says, "That market has got to be acknowledged, massaged, and worked with in order for this industry to grow and survive."
Andy Voytilla, owner of Dream Machines in Lake Oswego, Oregon, says that customer communication is essential. "When a customer comes to me to build a car, the big trick is to get into their mind and see their vision, because a lot of people can't communicate well enough to tell you exactly what they want." It helps when the customer has some hands-on experience with cars, so Voytilla encourages them to take part in the project in some way: "I always encourage my customers to come by the shop on a regular basis. Quite often I even get them to chase parts for me because when they get involved it is easier to get their ideas into it and make it like they wanted it."
Neither Pruitt or Voytilla do any media advertising because they feel their reputation in their market niches is strong enough to pull in plenty of work. That's not to say they do absolutely no marketing, however, because their constant attendance at car shows, cruise-ins, rallies, races, and other events serves to put their work in front of plenty of people. The drawback to that strategy, of course, is that it doesn't reach many new-to-the-market customers.
In a way, though, that's not particularly important to the shop owner who is more interested in serving a particular group of enthusiasts than in growth for growth's sake. If the market niche is big enough, it can support a shop quite well for many years.
Dave Donelson, author of The Dynamic Manager's Guides a series of how-to books for business owners and managers.
"A lot of those guys want to buy every part over the Internet, and we can't compete with the Internet pricing," he observes. "These young guys are real savvy and they do a lot of the work themselves or they have a buddy do it because they don't have the money to pay a professional shop."
But that's not to say they should be ignored. As Pruitt says, "That market has got to be acknowledged, massaged, and worked with in order for this industry to grow and survive."
Andy Voytilla, owner of Dream Machines in Lake Oswego, Oregon, says that customer communication is essential. "When a customer comes to me to build a car, the big trick is to get into their mind and see their vision, because a lot of people can't communicate well enough to tell you exactly what they want." It helps when the customer has some hands-on experience with cars, so Voytilla encourages them to take part in the project in some way: "I always encourage my customers to come by the shop on a regular basis. Quite often I even get them to chase parts for me because when they get involved it is easier to get their ideas into it and make it like they wanted it."
Neither Pruitt or Voytilla do any media advertising because they feel their reputation in their market niches is strong enough to pull in plenty of work. That's not to say they do absolutely no marketing, however, because their constant attendance at car shows, cruise-ins, rallies, races, and other events serves to put their work in front of plenty of people. The drawback to that strategy, of course, is that it doesn't reach many new-to-the-market customers.
In a way, though, that's not particularly important to the shop owner who is more interested in serving a particular group of enthusiasts than in growth for growth's sake. If the market niche is big enough, it can support a shop quite well for many years.
Dave Donelson, author of The Dynamic Manager's Guides a series of how-to books for business owners and managers.
December 31, 2010
Wow Your Customers With A Surprise
Customer retention is a major issue for most businesses. In this day of instant gratification, ordering online and shopping for deals for literally everything, it's tough to command customer loyalty. But if you want to keep your customers coming back, give them a surprise. Make doing business with you so special that they'll not only keep returning, they'll recommend you over and over again. How? By doing something unexpectedly wonderful.
The surprise you give your customers doesn't have to be a big one. In fact, it's the small touches that resonate with meaning, that make them feel like their order is more than just another job on your list. In fact, it was a little thing that sparked this idea for me. We got a Christmas card from Ed Plante Auto Detailing last year. The card wasn't anything special, but there was a surprise inside that made it stand out from all the other business associates' holiday greetings we received: he included a picture of our family SUV taken after his last detailing. In other words, he surprised us with a small, personal touch that made us feel just a tiny bit special.
When you do a little something extra like Ed did, you acknowledge your customer as a friend, as someone whose good feelings toward you warrant particular attention. The picture itself wasn't any big deal either, but, as your mother always said, it's the thought that counts.
The main factor to keep in mind is that what you do needs to be slightly out of the ordinary, something the customer doesn't expect. That means it doesn't have to occur at the point of service; in fact, surprises work really well when they come later, after the customer has started to forget the last time they did business with you. Secondly, the surprise should have a personal angle to it. If it's something you do for every customer, like the book store clerk who automatically puts a bookmark in the bag with every order, it's not going to prompt anybody to give it a second thought.
Different kinds of businesses present all sorts of opportunities to give customers great surprises. The picture Ed sent was of our clunky old family SUV with a fresh wax job. Can you imagine what kind of impact an unexpected picture of an auto restyler customer's tricked-out rides would have? Those customers' cars mean a lot or they wouldn't be spending money on them. To the auto shop customer, getting a picture of his car is like getting a picture of his kids—maybe better!
Dave Donelson, author of The Dynamic Manager's Guide To Marketing and Advertising a how-to book for business owners and managers.
The surprise you give your customers doesn't have to be a big one. In fact, it's the small touches that resonate with meaning, that make them feel like their order is more than just another job on your list. In fact, it was a little thing that sparked this idea for me. We got a Christmas card from Ed Plante Auto Detailing last year. The card wasn't anything special, but there was a surprise inside that made it stand out from all the other business associates' holiday greetings we received: he included a picture of our family SUV taken after his last detailing. In other words, he surprised us with a small, personal touch that made us feel just a tiny bit special.
When you do a little something extra like Ed did, you acknowledge your customer as a friend, as someone whose good feelings toward you warrant particular attention. The picture itself wasn't any big deal either, but, as your mother always said, it's the thought that counts.
The main factor to keep in mind is that what you do needs to be slightly out of the ordinary, something the customer doesn't expect. That means it doesn't have to occur at the point of service; in fact, surprises work really well when they come later, after the customer has started to forget the last time they did business with you. Secondly, the surprise should have a personal angle to it. If it's something you do for every customer, like the book store clerk who automatically puts a bookmark in the bag with every order, it's not going to prompt anybody to give it a second thought.
Different kinds of businesses present all sorts of opportunities to give customers great surprises. The picture Ed sent was of our clunky old family SUV with a fresh wax job. Can you imagine what kind of impact an unexpected picture of an auto restyler customer's tricked-out rides would have? Those customers' cars mean a lot or they wouldn't be spending money on them. To the auto shop customer, getting a picture of his car is like getting a picture of his kids—maybe better!
Dave Donelson, author of The Dynamic Manager's Guide To Marketing and Advertising a how-to book for business owners and managers.
December 13, 2010
Reviewers Sing About Hunting Elf, A Doggone Christmas Story.
I got some Christmas presents early this year! Ivana Hruba put this gem under my tree:
And over at LibraryThing.com, Realeanna said:
Dave Donelson, author of The Dynamic Manager's Guide To Advertising: How To Grow Your Business With Ads That Work
a how-to book for business owners and managers.
"...a delightfully amusing whodunit set in suburban New York. Prize-winning dogs, demented dog breeders and well-meaning dog owners slash would be detectives feature heavily in this humorous caper which centers around Elf, a purebred Silky Terrier puppy with seriously desirable lineage, a couple of crazy old bags who will stop at nothing to get him, and Dan, Elf's hapless human, who just wants to be left in peace at Christmas time."You can read the full review at Smashwords.com.
And over at LibraryThing.com, Realeanna said:
"It is a really great read."To which I say, "Ho! Ho! Ho!"
Dave Donelson, author of The Dynamic Manager's Guide To Advertising: How To Grow Your Business With Ads That Work
a how-to book for business owners and managers.
December 9, 2010
You Can Support Westchester Libraries
Westchester's libraries need your help right now!
To help get the word out about the importance of libraries and their funding, WLS has developed a Local Advocacy Network to reach out to both County and Local Legislators via email.
It's easy to use. Just click on the link below (and don't forget to bookmark it):
www.voteyesforourlibrary.org/Westchester_Advocacy
►Choose your local library from the drop-down box
You will find a message to your County Legislators regarding the importance of the WLS services that the county funds support.
►Fill in your information
►Click Yes
If you would like to receive action alerts from time to time from WLS when legislators need to hear your opinion as a library patron.
►Click Send
The message will be sent to the representatives noted at the top of the page.
That's it! The five minutes it takes to send one message will be invaluable to maintaining high-quality library service in Westchester.
Dave Donelson, author of The Dynamic Manager's Guide To Advertising: How To Grow Your Business With Ads That Work a how-to book for business owners and managers.
To help get the word out about the importance of libraries and their funding, WLS has developed a Local Advocacy Network to reach out to both County and Local Legislators via email.
It's easy to use. Just click on the link below (and don't forget to bookmark it):
www.voteyesforourlibrary.org/Westchester_Advocacy
►Choose your local library from the drop-down box
You will find a message to your County Legislators regarding the importance of the WLS services that the county funds support.
►Fill in your information
►Click Yes
If you would like to receive action alerts from time to time from WLS when legislators need to hear your opinion as a library patron.
►Click Send
The message will be sent to the representatives noted at the top of the page.
That's it! The five minutes it takes to send one message will be invaluable to maintaining high-quality library service in Westchester.
Dave Donelson, author of The Dynamic Manager's Guide To Advertising: How To Grow Your Business With Ads That Work
a how-to book for business owners and managers.
December 8, 2010
More Good Press For The Dynamic Manager's Guide To Marketing & Advertising
Another marketing professional offered a positive Amazon review of The Dynamic Manager's Guide To Marketing And Advertising this week.
GraceW wrote:
Dave Donelson, author of The Dynamic Manager's Guide To Marketing & Advertising: How To Grow Sales And Boost Your Profits a how-to book for entrepreneurs and business managers.
GraceW wrote:
I worked in financial services and marketing for 30 years. I wish I had a book like this when I first embarked on my marketing career. Mr. Donelson offers some clear and concise practices to encourage success in a sales/marketing position regardless of the industry. His writing style is crisp, yet full of energy.Click here to read the entire review.
Dave Donelson, author of The Dynamic Manager's Guide To Marketing & Advertising: How To Grow Sales And Boost Your Profits a how-to book for entrepreneurs and business managers.
December 3, 2010
Home-Grown Marketing Research
One of the best ways to get to know your best customers better is by a little above-board sleuthing. Start by identifying them through sales records that will let you make a list of the people who represent 80% of your sales--it will probably be about 20% of your total number of customers.
Then compile your best customers' street addresses from credit card records, phone numbers, delivery destinations, etc. Plot them on a map and look for clusters of them. Good marketers know that birds of a feather flock together; similar people tend to live in similar neighborhoods. Once you've figured out where your best customers live, you can look for other birds of that feather—they're your best new prospects.
Now drive through those neighborhoods. Guesstimate the value of the homes and look at the cars there to get a rough idea of income. Check for kids and/or their bikes, swing sets, and sports equipment (or lack thereof) to get an idea of their parents' ages. Don't limit your surveillance to weekdays, either. Take a few minutes on the weekend to drive through to see how many residents are doing their own yard work or washing their own cars. These things will also tell you a lot about their lifestyle. The more you know about your best customers, the better marketing decisions you will make.
If you are a business-to-business marketer, your research job is actually a little easier. You probably have fewer (but bigger) transactions with fewer customers than someone who sells to the general public, which simplifies your data-gathering. What may complicate it, though, is the tendency for businesses to have multiple decision-makers in their buying processes. Don't be daunted by the details, though—just gather data on one person at a time until you've got a clear picture of who they are and what their role is.
You may also think that personal information like education and lifestyle choices aren't relevant to business buyers since their job is to make rational, profit-oriented purchases. Nothing could be further from the truth. Corporate buyers are people, too, and they allow plenty of emotion to influence their decisions. In fact, a personal, human reaction to a vendor's marketing approach may be the only factor that separates two competitors. The more you know about that business-to-business customer as a person, the greater your chances of tipping their decisions in your favor.
So, before you make any decisions about price, or which products to sell, or what ads to run, take a good hard look at your customers as people. Identifying your best customer takes some work. The end result, though, is marketing that works better, costs less, and generates greater profits.
Dave Donelson, author of The Dynamic Manager's Guide To Marketing & Advertising: How To Grow Sales And Boost Your Profits a how-to book for entrepreneurs and business managers.
Then compile your best customers' street addresses from credit card records, phone numbers, delivery destinations, etc. Plot them on a map and look for clusters of them. Good marketers know that birds of a feather flock together; similar people tend to live in similar neighborhoods. Once you've figured out where your best customers live, you can look for other birds of that feather—they're your best new prospects.
Now drive through those neighborhoods. Guesstimate the value of the homes and look at the cars there to get a rough idea of income. Check for kids and/or their bikes, swing sets, and sports equipment (or lack thereof) to get an idea of their parents' ages. Don't limit your surveillance to weekdays, either. Take a few minutes on the weekend to drive through to see how many residents are doing their own yard work or washing their own cars. These things will also tell you a lot about their lifestyle. The more you know about your best customers, the better marketing decisions you will make.
If you are a business-to-business marketer, your research job is actually a little easier. You probably have fewer (but bigger) transactions with fewer customers than someone who sells to the general public, which simplifies your data-gathering. What may complicate it, though, is the tendency for businesses to have multiple decision-makers in their buying processes. Don't be daunted by the details, though—just gather data on one person at a time until you've got a clear picture of who they are and what their role is.
You may also think that personal information like education and lifestyle choices aren't relevant to business buyers since their job is to make rational, profit-oriented purchases. Nothing could be further from the truth. Corporate buyers are people, too, and they allow plenty of emotion to influence their decisions. In fact, a personal, human reaction to a vendor's marketing approach may be the only factor that separates two competitors. The more you know about that business-to-business customer as a person, the greater your chances of tipping their decisions in your favor.
So, before you make any decisions about price, or which products to sell, or what ads to run, take a good hard look at your customers as people. Identifying your best customer takes some work. The end result, though, is marketing that works better, costs less, and generates greater profits.
Dave Donelson, author of The Dynamic Manager's Guide To Marketing & Advertising: How To Grow Sales And Boost Your Profits a how-to book for entrepreneurs and business managers.
November 30, 2010
A Doggone Christmas Novel In FREE Audio Podcast Edition
What's better than a doggone Christmas story? How about a FREE audio podcast edition!
Hunting Elf actually began as a podcast--the print edition came later in response to requests from listeners who enjoyed the story. As one listener said:
Best of all, the Hunting Elf podcast is absolutely free at Podiobooks.com. You can also download Hunting Elf for free at iTunes. One iTunes reviewer said,
Dave Donelson, author of The Dynamic Manager's Guide To Advertising: How To Grow Your Business With Ads That Work a how-to book for business owners and managers.
Hunting Elf actually began as a podcast--the print edition came later in response to requests from listeners who enjoyed the story. As one listener said:
"As the owner of 4 crazy dogs, I found Hunting Elf hilarious. The characters were very realistic and easy to relate to for me because I too adore my dogs who seem to live for trouble. I found myself remembering antics of my dogs throughout the story. The story is a great mix of comedy and caper. I recommend this book to everyone, but it is a must listen for dog lovers."Above all, Hunting Elf is a Christmas story with a neat feature--it has 25 chapters. So, if you listen to one each day starting today, you'll finish on Christmas day! It's my gift to you--a laugh a day.
Best of all, the Hunting Elf podcast is absolutely free at Podiobooks.com. You can also download Hunting Elf for free at iTunes. One iTunes reviewer said,
"If you're looking for something light-hearted and fun, this is it. Those of you who have owned a puppy will get a HUGE kick out of Elf's antics."
Dave Donelson, author of The Dynamic Manager's Guide To Advertising: How To Grow Your Business With Ads That Work
a how-to book for business owners and managers.
And Then I Wrote A Song About It
Little theater doesn't mean little entertainment, especially when you see a wonderful one-man musical like
...And Then I Wrote A Song About It
, playing now at Luna Stage in West Orange, NJ. The delightful play has a heart-touching story, witty, well-honed monologue and lyrics, and sparkling music, all presented by the absolutely engaging Nick Cearley.
The play tells the story of Randall Klausner, a wannabe singer, dancer, actor, songwriter, whatever-I-can-be-in-show-biz struggling to get a break in New York. He's also striving for approval from his sausage king father, who can't accept the fact that the boy is gay. Add in Randall's disappointing love life, his perpetually depleted bank account, and a best friend who spends most of his life in a drug haze, and you'd expect the man to collapse under the strain of it all. But his obsession with the performing arts somehow keeps him going until the entirely satisfying happy ending.
...And Then I Wrote A Song About It has a book by the immensely talented Eric H. Weinberger, music by Daniel S. Acquisto, and lyrics by Sammy Buck. It is directed by Igor Goldin with musical direction by Christian Imboden, choreography by Antoinette DiPietropolo, and set design by Robert Monaco. The intimate setting of the Luna Stage theater is perfect for the production. The play runs through December 19. Visit www.lunastage.org or call (973) 395- 5551 for tickets.
Dave Donelson, author of The Dynamic Manager's Guide To Advertising: How To Grow Your Business With Ads That Work a how-to book for business owners and managers.
The play tells the story of Randall Klausner, a wannabe singer, dancer, actor, songwriter, whatever-I-can-be-in-show-biz struggling to get a break in New York. He's also striving for approval from his sausage king father, who can't accept the fact that the boy is gay. Add in Randall's disappointing love life, his perpetually depleted bank account, and a best friend who spends most of his life in a drug haze, and you'd expect the man to collapse under the strain of it all. But his obsession with the performing arts somehow keeps him going until the entirely satisfying happy ending.
...And Then I Wrote A Song About It has a book by the immensely talented Eric H. Weinberger, music by Daniel S. Acquisto, and lyrics by Sammy Buck. It is directed by Igor Goldin with musical direction by Christian Imboden, choreography by Antoinette DiPietropolo, and set design by Robert Monaco. The intimate setting of the Luna Stage theater is perfect for the production. The play runs through December 19. Visit www.lunastage.org or call (973) 395- 5551 for tickets.
Dave Donelson, author of The Dynamic Manager's Guide To Advertising: How To Grow Your Business With Ads That Work
a how-to book for business owners and managers.
