Archive for Coaching

What your DiSC style might tell you about working from home

 

We’re all realizing these days that we have an increased need for clear communication. Maintaining relationships through social distancing is a major challenge. Many workers are being asked to work remotely—and wondering how to make it work for them.

The DiSC concept of “stretch,” of flexing into behaviors and mindsets not typically associated with our personality types is important right now. We might have to expend more energy, take more care, and assume the best of each other. Every personality has the ability to be productive from home, but what works for one person might not work as well for another.

Some workers will happily work from a laptop in their living room. Some will need significant technology support. Your team will need to decide when and how to communicate about business. You will also need to attend to maintaining social ties.

Consider how personalities will respond to a newly scheduled video chat with no agenda. Will the D-style feel like it will be a waste of time if there’s no agenda? Is the i-style excited about the chance to see everyone and their home setups? Will the S-style worry about how they should prepare? Is the C-style wondering why there’s any need for a video chat when you all have email or IM capability?

If you find that the challenges listed below resonate with you (even if not listed under your own style), discuss ways of addressing them. Your manager or fellow team members are probably willing to offer suggestions and support. Resources are also listed at the bottom of this article. Taking the time to set yourselves up for success is time well spent. You’ll be building team trust and showing commitment to each other—all positive signs of a cohesive team.

D style

You’re probably eager and ready for the challenge of working from home. You feel like you’ll get lots done; you’ll be able to focus your energy. But you probably wonder about being able to work with your team from a distance.

Strengths

  • You’re results-oriented and driven, so you’ll get done what you need to get done.
  • You will ask for what you need to be successful from home.
  • You’re willing to try new collaboration and communication tools.

Challenges

  • You might be tempted to take shortcuts to complete something that’s been recently stalled.
  • You might move ahead on something too quickly, or ahead of the rest of the team.
  • Your communication style might feel cold to others and leave colleagues feeling unappreciated or even hurt.

i style

You’re usually ready to try something new, so working from home might seem exciting at first. You understand that you’ll need to find new ways of staying connected with your colleagues and friends from work. You’re probably more likely than others to keep your extended work networks alive and active.

Strengths

  • You are naturally positive and enthusiastic and can use that energy to rally your team and maintain a feeling of camaraderie.
  • You won’t forget that human interaction is a human need and can make sure that times or spaces (like Slack channels or virtual happy hours) are created for socializing. You can also use tools like TEAMs for a fun group chat; it isn’t just for work.
  • You like to experiment and will probably have ideas to share with the rest of the team about how to make working from home work for all of you.

Challenges

  • Working alone can be stressful for you and you’ll be easily distracted.
  • Routines can feel stifling, but they can also be very helpful in supporting the self-discipline you’ll need to stay focused and on task.
  • You might want to charge ahead when you should be asking for more specific instructions or for clarification around communications.

S style

You enjoy friendly, cooperative workplaces and will miss the ease of collaboration that physical nearness enables.

Strengths

  • You like clear, complete, yet concise and friendly communication. You can model that for your team.
  • It might be easier for you to contribute your ideas and share your knowledge when given the extra time communicating online can provide.
  • Working alone isn’t stressful for you. You’re unlikely to get distracted from your focus on the team and its goals.

Challenges

  • Lack of frequent check-ins at a personal and professional level might leave you feeling disengaged or anxious.
  • New communication technologies might unsettle you. You’ll need to practice with them with someone you trust.
  • Others in your home, including children and pets, might want to demand your time during work hours and you’ll have to say “no” or shut them out of your room.

C style

You enjoy your independence and the space to think things through thoroughly. You might not understand the frustrations others feel about not seeing each other at your workplace.

Strengths

  • You probably have the discipline and focus to make working at home easy.
  • Your attention to detail will help you evaluate the resource needs of the team and to select the most reliable technologies.
  • You don’t require a lot of face time or feedback to know you’re doing a good job.

Challenges

  • Your quick-and-dirty or to-the-point communication may make others feel alienated from you.
  • You might be tempted to just do a task yourself, rather than delegate it or collaborate on it.
  • Maintaining warm personal relationships with colleagues could be challenging and you’ll need to find new strategies for doing so.

I have worked from home for over 10 years and love it. But it can also be challenging. I’ve had to be more conscious about my communication and socializing. I miss the level of friendships that develop in a workplace. It’s been important for me to identify my own challenges.

Let us know what you’ve learned about working from home by leaving a comment.

With acknowledgement of the great work done by DiscProfiles.com

If you would like to learn more about your disc style and how it could make you more productive – please contact me or any of the Ology team for your complimentary DISC discussion.

 

Coaching FAQs. What is Coaching All About?

 

Coaching FAQs

What is professional coaching?

The international Coaching Federation (ICF) defines coaching as partnering with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential, which is particularly important in today’s uncertain and complex environment. Coaches honor the client as the expert in his or her life and work and believe every client is creative, resourceful and whole. Standing on this foundation, the coach’s responsibility is to:

  • Discover, clarify, and align with what the client wants to achieve
  • Encourage client self-discovery
  • Elicit client-generated solutions and strategies
  • Hold the client responsible and accountable

This process helps clients dramatically improve their outlook on work and life, while improving their leadership skills and unlocking their potential.

How can you determine if coaching is right for you?

To determine whether you or your company could benefit from coaching, start by summarizing what you would expect to accomplish in coaching. When an individual or business has a fairly clear idea of the desired outcome, a coaching partnership can be a useful tool for developing a strategy for how to achieve that outcome with greater ease.

Since coaching is a partnership, ask yourself whether collaboration, other viewpoints, and new perspectives are valued. Also, ask yourself whether you or your business is ready to devote the time and the energy to making real changes. If the answer is yes, then coaching may be a beneficial way to grow and develop.

How is coaching distinct from other service professions?

Professional coaching focuses on setting goals, creating outcomes and managing personal change. Sometimes it’s helpful to understand coaching by distinguishing it from other personal or organizational support professions.

  • Therapy: Therapy deals with healing pain, dysfunction and conflict within an individual or in relationships. The focus is often on resolving difficulties arising from the past that hamper an individual’s emotional functioning in the present, improving overall psychological functioning, and dealing with the present in more emotionally healthy ways. Coaching, on the other hand, supports personal and professional growth based on self-initiated change in pursuit of specific actionable outcomes. These outcomes are linked to personal or professional success. Coaching is future focused. While positive feelings/emotions may be a natural outcome of coaching, the primary focus is on creating actionable strategies for achieving specific goals in one’s work or personal life. The emphases in a coaching relationship are on action, accountability, and follow through.
  • Consulting: Individuals or organizations retain consultants for their expertise. While consulting approaches vary widely, the assumption is the consultant will diagnose problems and prescribe and, sometimes, implement solutions. With coaching, the assumption is that individuals or teams are capable of generating their own solutions, with the coach supplying supportive, discovery-based approaches and frameworks.
  • Mentoring: A mentor is an expert who provides wisdom and guidance based on his or her own experience. Mentoring may include advising, counseling and coaching. The coaching process does not include advising or counseling, and focuses instead on individuals or groups setting and reaching their own objectives.
  • Training: Training programs are based on objectives set out by the trainer or instructor. Though objectives are clarified in the coaching process, they are set by the individual or team being coached, with guidance provided by the coach. Training also assumes a linear learning path that coincides with an established curriculum. Coaching is less linear without a set curriculum.
  • Athletic Development: Though sports metaphors are often used, professional coaching is different from sports coaching. The athletic coach is often seen as an expert who guides and directs the behavior of individuals or teams based on his or her greater experience and knowledge. Professional coaches possess these qualities, but their experience and knowledge of the individual or team determines the direction. Additionally, professional coaching, unlike athletic development, does not focus on behaviors that are being executed poorly or incorrectly. Instead, the focus is on identifying opportunity for development based on individual strengths and capabilities.

What are some typical reasons someone might work with a coach?

An individual or team might choose to work with a coach for many reasons, including but not limited to the following:

  • Something urgent, compelling or exciting is at stake (a challenge, stretch goal or opportunity)
  • A gap exists in knowledge, skills, confidence or resources
  • A desire to accelerate results
  • A lack of clarity with choices to be made
  • Success has started to become problematic
  • Work and life are out of balance, creating unwanted consequences
  • Core strengths need to be identified, along with how best to leverage them

What has caused the tremendous growth in the coaching industry?

Coaching has grown significantly for many reasons, among them:

  • Rapid changes are taking place in the external business environment.
  • Downsizing, restructuring, mergers and other organizational changes have radically altered the “traditional employment contract.” Companies can no longer achieve results using traditional management approaches.
  • With the growing shortage of talented employees in certain industries, companies must commit to investing in individuals’ development.
  • The disparity between what managers were trained to do and what their jobs now require of them is widening due to increasing demands for competitive results.
  • People are wrestling with job insecurity and increased workplace pressures to perform at higher levels than ever before.
  • Companies must develop inclusive, collaborative work environments to achieve strategic business goals and to maintain high levels of customer satisfaction.
  • Individuals who have experienced the excellent results of coaching are talking to more people about it.
  • People today are more open to the idea of being in charge of their own lives. Coaching helps them do just that.

In short, coaching helps individuals and companies focus on what matters most in life and business, and so the industry continues to grow.

How is coaching delivered? What does the process look like?

Coaching typically begins with a personal interview (either face-to-face or by teleconference call) to assess the individual’s or business’ current opportunities and challenges, define the scope of the relationship, identify priorities for action and establish specific desired outcomes. Subsequent coaching sessions may be conducted in person or over the telephone, with each session lasting a previously established length of time. Between scheduled coaching sessions, the individual may be asked to complete specific actions that support the achievement of one’s personally prioritized goals. The coach may provide additional resources in the form of relevant articles, checklists, assessments or models to support the individual’s or business’ thinking and actions. The duration of the coaching relationship varies depending on needs and preferences.

  • Assessments: A variety of assessments are available to support the coaching process, depending upon the needs and circumstances of the individual or business. Assessments provide objective information that can enhance self-awareness, as well as awareness of others and their circumstances; provide a benchmark for creating coaching goals and actionable strategies; and offer a method for evaluating progress.
  • Concepts, models and principles: A variety of concepts, models and principles drawn from the behavioral sciences, management literature, spiritual traditions and/or the arts and humanities may be incorporated into the coaching conversation to increase self-awareness and awareness of others, foster shifts in perspective, promote fresh insights, provide new frameworks for looking at opportunities and challenges, and energize and inspire forward actions.
  • Appreciative approach: Coaching incorporates an appreciative approach, grounded in what’s right, what’s working, what’s wanted and what’s needed to get there. Using an appreciative approach, the coach models constructive communication skills and methods to enhance personal communication effectiveness. He or she incorporates discovery-based inquiry, proactive (as opposed to reactive) ways of managing personal opportunities and challenges, constructive framing of observations and feedback to elicit the most positive responses from others, and visions of success as contrasted with focusing on problems. The appreciative approach is simple to understand and employ, and its reach can be profound, opening up new possibilities and spurring action.

How long does a coach work with an individual?

The length of a coaching partnership varies depending on the individual’s or team’s needs and preferences. For certain types of focused coaching, three to six months of working may work. For other types of coaching, people may find it beneficial to work with a coach for a longer period. Factors that may impact the length of time include: the types of goals, the ways individuals or teams prefer to work, the frequency of coaching meetings and financial resources available to support coaching.

How do you ensure a compatible partnership?

Overall, be prepared to design the coaching partnership with the coach. For example, think of a strong partnership that you currently have in your work or life. Look at how you built that relationship and what is important to you about partnership. You will want to build those same things into a coaching relationship. Here are a few other tips:

  • Interview more than one coach to determine “what feels right” in terms of the chemistry. Coaches are accustomed to being interviewed, and an introductory conversation of this type is usually free of charge.
  • Look for stylistic similarities and differences between the coach and you and how these might support your growth as an individual or the growth of your team.
  • Discuss your goals for coaching within the context of the coach’s specialty or the coach’s preferred way of working with an individual or team
  • Talk with the coach about what to do if you ever feel things are not going well; make some agreements up front on how to handle questions or problems.
  • Remember that coaching is a partnership, so be assertive about talking with the coach about any concerns.

Within the partnership, what does the coach do? The individual?

The coach:

  • Provides objective assessment and observations that foster the individual’s or team’s self-awareness and awareness of others
  • Listens closely to fully understand the individual’s or team’s circumstances
  • Acts as a sounding board in exploring possibilities and implementing thoughtful planning and decision making
  • Champions opportunities and potential, encouraging stretch and challenge commensurate with personal strengths and aspirations
  • Fosters shifts in thinking that reveal fresh perspectives,
  • Challenges blind spots to illuminate new possibilities and support the creation of alternative scenarios
  • Maintains professional boundaries in the coaching relationship, including confidentiality, and adheres to the coaching profession’s code of ethics.

The individual:

  • Creates the coaching agenda based on personally meaningful coaching goals
  • Uses assessment and observations to enhance self-awareness and awareness of others
  • Envisions personal and/or organizational success
  • Assumes full responsibility for personal decisions and actions
  • Utilizes the coaching process to promote possibility thinking and fresh perspectives
  • Takes courageous action in alignment with personal goals and aspirations
  • Engages big-picture thinking and problem-solving skills
  • Takes the tools, concepts, models and principles provided by the coach and engages in effective forward actions

What does coaching ask of an individual?

To be successful, coaching asks certain things, all of which begin with intention. Additionally, clients should:

  • Focus on one’s self, the tough questions, the hard truths and one’s success.
  • Observe the behaviors and communications of others.
  • Listen to one’s intuition, assumptions, judgments, and to the way one sounds when one speaks
  • Challenge existing attitudes, beliefs and behaviors and develop new ones that serve one’s goals in a superior way
  • Leverage personal strengths and overcome limitations to develop a winning style
  • Take decisive actions, however uncomfortable and in spite of personal insecurities, to reach for the extraordinary
  • Show compassion for one’s self while learning new behaviors and experiencing setbacks, and to show that compassion for others as they do the same
  • Commit to not take one’s self so seriously, using humor to lighten and brighten any situation
  • Maintain composure in the face of disappointment and unmet expectations, avoiding emotional reactivity
  • Have the courage to reach for more than before while engaging in continual self examination without fear

How can the success of the coaching process be measured?

Measurement may be thought of in two distinct ways: external indicators of performance and internal indicators of success. Ideally, both are incorporated.

Examples of external measures include achievement of coaching goals established at the outset of the coaching relationship, increased income/revenue, obtaining a promotion, performance feedback that is obtained from a sample of the individual’s constituents (e.g., direct reports, colleagues, customers, boss, the manager him/herself), personal and/or business performance data (e.g., productivity, efficiency measures). The external measures selected should be things the individual is already measuring and has some ability to directly influence.

Examples of internal measures include self-scoring/self-validating assessments that can be administered initially and at regular intervals in the coaching process, changes in the individual’s self-awareness and awareness of others, shifts in thinking that create more effective actions, and shifts in one’s emotional state that inspire confidence.

What factors should be considered when looking at the financial investment in coaching?

Working with a coach requires both a personal commitment of time and energy as well as a financial commitment. Fees charged vary by specialty and by the level of experience of the coach. Individuals should consider both the desired benefits as well as the anticipated length of time to be spent in coaching. Since the coaching relationship is predicated on clear communication, any financial concerns or questions should be voiced in initial conversations before the agreement is made. For more information on how coaching can help to transform your business, contact Ology Coach David Preston today. (davepreston@ologycoaching.com)

Dysfunctional Teams and How to Fix Them

 

Dysfunctionality among teams is far more commonplace than many business owners  would like to admit. You only need to take a look at recent headlines to notice the levels of it which can be found even in the most prestigious global brands. And considering the ease with which negative and potentially damaging content can be shared on social media these days, it pays business owners to be mindful of the risks and to develop coherent and effective strategies to alleviate these risks. 

A recent study by a very well-known UK on-line recruitment site suggests that 40% of employees believe a positive working culture is the most important thing their employer can provide. This imposes a duty on business leaders to build a supportive team culture and to ensure that managers within their business have the tools necessary to build and manage cohesive teams.

Considering this, we here at Ology recommend a 5 stage strategy that all managers should follow to fix their dysfunctional teams:

Ownership

If you as a leader do not take ownership of a team and its potential problems, then things will never improve. Discuss the matter openly with your team so that they feel comfortable sharing any issues they might have and make sure you set the standard of how you expect them to work together.

Honesty

If you notice your team is slowly becoming more fragmented and less effective, do not be afraid to seek out the truth. To fully understand what is going on, `remain neutral and do not cast judgement when asking for feedback from team members. Once you discover what is causing the negativity, take action and try to counteract it.

Standards

As a team leader, it’s essential that you put in place a standard of performance you expect. Therefore, you can’t have different standards for different members as this will only upset team members and provide extra ammunition for the more disruptive members of the team. Do not ignore the negative behaviour of some staff members. Make sure your team understands the repercussions of such behaviour and that it cannot be tolerated.

Agreement

You may have a plan in place that you think will help stamp out negativity, but without the backing of the team the plan is simply futile. To combat this, ensure the team meets regularly, while also keeping them informed of the standards you need them to adhere to.

Persistence

It can be frustrating when you notice that all of your efforts are falling on deaf ears and that team members continue to be disruptive and toxic. Turning your team around can often be one of the toughest challenges team leaders will ever face. It takes time and commitment. Don’t give up, be intentional and persistent to your beliefs and eventually change will happen.

And finally, be assured that you can do this. With the help of Ology’s behavioural expertise and our bespoke solutions, along with the dedicated support of one of our professional coaches, you can fix your teamworking issues.

For more information, or to discuss how we might help, contact Ology Coach Dave Preston today. (e-mail: davepreston@ologycoaching.com; or call 07539 365747)

Business Growth Masterclass 16 – How to Calculate and Lower the Cost of Your Customers

Hello there and welcome to the 16th instalment of my Business Growth Masterclass. The step by step guide to building the business you always wished you could have.

 

Today, we’re going to look at how to calculate the cost of your customer and a few techniques you can use to lower that cost and increase the profitability of each of your customers, both old and new.

 

As ever though, before we get our teeth into today’s material, lets just check on actions from the last Business Growth Masterclass:

Did you do your homework?

  • You have a system in place for measuring your conversion rate on a daily, weekly, monthly and by-campaign basis.
  • You have chosen two new strategies to implement for an increase in conversions, and are measuring the results.

Great. Homework done. Now let’s get started with today’s Business Growth Masterclass.

When you buy a product, you want to receive the most for your money. The same is true for customer acquisition.

customers

Generating leads and converting those leads into paying customers is a process that costs you money. You can attribute a piece of your marketing and sales costs to each of the customers that you successfully attract and convert.

Essentially, you buy customers for your business.

Let me repeat that: essentially, you buy customers for your business.

Please read this again and understand it on a very basic level. If I sent you to the store with £40 to buy a white t-shirt, you would be successful. Well you can do the same thing with GOOD clients (ones that pay, stay and refer). Do not be scared to go into the business of buying good clients. This one distinction can completely change the way you do business and your level of success.

So when you think of your customer as your most valuable asset, you’re absolutely right. They’re an investment in your business that you expect to see a return from.

As with any investment, you not only want to see a return, but you want to see the greatest return possible. In this case, you could try to reduce your marketing budget, or boost your profit margins, but the easiest way to minimise the cost of a customer and maximise your return is to increase the number of times each customer buys from you.

In the five-step process, this is called increasing the number of transactions in your business. Instead of constantly chasing down leads and buying new customers, your work is to keep the customers you have bought coming back to spend more money.

In this Business Growth Masterclass we will cover:

  • The financial impact of repeat business
  • How to figure out the average number of transactions of your business
  • How to calculate your average customer acquisition cost
  • The lifetime value of your customers
  • The 80/20 rule and letting some customers go
  • How you can lower the cost of your customers to boost profits

Increasing your repeat business is one of the easiest and most cost-effective ways to boost your bottom line.

Turning a single transaction customer into a repeat or lifetime customer is one of the simplest ways to boost your bottom line. It costs very little and is largely based on the experience you can create for the people who buy from you.

With a little bit of time and thought, you can turn single-transaction customers into loyal patrons, or even big fans of your business. This not only translates into returning customers, but also earns customers that refer you to their friends.

Financially, the more times a customer buys from you, the lower their acquisition cost becomes. You only have to buy customers once, so when that figure is spread over several transactions it goes down.

Here’s a chart of how a 10% increase and 30% increase in average number of transactions can impact your bottom line.

STARTING POINT 10% INCREASE 30% INCREASE
Leads 4,500 4,500 4,500
Conversion Rate 30% 30% 30%
Customers 1350 1350 1350
Transactions 1.3 1.43 (10% increase) 1.69 (30% increase)
Average Sales Value £140 £140 £140
Revenue £245,700 270,270 319,410
Margins 24% 24% 24%
Profit £58,968 £64,864.80 £76,658.40

What is the average number of transactions for your business?

If you have a system for managing customer accounts and tracking purchases, this next step will be really straightforward. If you have a computer-based point of sale system, your reporting functions may even be able to calculate this figure for you.

To figure out the average number of times each customer buys from you, you need to choose a time period (the last 12 months is a good starting point) and a sample of customer accounts with the number of times each has purchased from you. Take 50 at random, or all the customers starting with the letter “T” as an example to illustrate the point.

Then, add up the total number of transactions for each of the customers in your sample, and divide the total by the number of customers in your sample. This is your average number of transactions. For example, if I have a sample of 10 customers, my calculation might look something like this:

4 + 5 + 2 + 8 + 5 + 1 + 2 + 2 + 2 + 6 = 32 32 / 10 = 3.2 average number of transactions

If you don’t have an existing data source for this information, survey your customers or start your own tracking system to use over the course of a week or month. Note on your customers’ accounts when they purchased and what they purchased, or keep a tally at the cash register. If you can’t survey your customers or create a viable database, then just estimate the figure based on your observations over a week or over the history of your business.

Remember that the average number of transactions is going to be different for every business. Grocery stores will have far different figures than furniture stores, computer stores will have dramatically different numbers than coffee shops based on the frequency that people need those products or services.

What is the average customer acquisition cost for your business?

Do you know how much do you spend – on average – on each customer you acquire? To calculate this, simply divide the amount of money you spend per month (or per campaign) on lead generation by the total number of sales in that month (or campaign duration).

For example, if you spend an average of £5,000 each month on advertising, and you generate about 250 unique sales per month, your average customer acquisition cost is £20. Or, if you spent £10,000 on an ad campaign over three months, and generated 400 campaign-specific sales, your customer acquisition cost would be £25.

To evaluate this figure, look at it as a percentage of your average sale. Of the 250 unique sales in first example from the paragraph above, and say the average purchase was £75, £40 of which was margin. Subtract the customer acquisition cost from your margin, and you’ll have the average profit of each sale, in this case it’s £20.

What is the lifetime value of your customers?

Now, assuming your average customer acquisition cost is £20, let’s take a look at what would happen if you turned that customer into a lifetime customer. What value does that customer have to your business?

First let’s look at the value of a single transaction customer:

Customer Acquisition Cost £20
Number of transactions 1
Average value of each transaction £75
Average profit margin £40
Margin minus acquisition cost £20
Total value of customer £20

Then, assume that an average customer ‘lifetime’ with your business is about five years. Calculate as you did above, spreading the customer acquisition cost over the total number of transactions.

Customer Acquisition Cost £20
Number of transactions 15 (assuming 3 per year)
Average value of each transaction £75
Average profit margin £40
Margin minus acquisition cost £38.67 (£40 – [£20/15])
Total value of customer £580

Here’s a more in-depth look at cost of a single transaction customer, in comparison to a tripe transaction customer or a lifetime customer:

ONE TIME YEAR LIFETIME
Customer Acquisition Cost £20 £20 £20
Number of Transactions 1 3 15
Average Value of Each Transaction £75 £75 £75
Average Profit Margin on Each Transaction (excluding acquisition cost) £40 £40 £40
Actual profit per Transaction (profit margin – [customer acquisition cost / # of transactions]) £20 (£40 – £20) £33.33 (£40 – (£20/3)) £38.67 (£40 – (£20/15))
Lifetime Value of Customer (in profit)(actual profit per transaction x # of transactions) £20 £100 £580

Based on the chart above, you can see that the lifetime customer who purchased from you 15 times over five years brought your business £580 in profit, in comparison to the single transaction customer who brought your business £20 in profit.

Both customers cost you the same amount – £20 – but there is a £560 difference in return on investment! Repeat business – the average number of transactions per customer – makes a huge difference on your bottom line.

Give yourself permission to fire some of your customers.

Everyone has a group of customers they enjoy doing business with and are pleased to continually serve (our A-list). Likewise, we all also have a group of customers (our C-list) who are a pain to deal with. They may consistently complain, only take advantage of special offers or never spend much money after a bunch of hassle.

Like a good business owner, I bet you treat every customer with respect, and give them the attention they need – even the C-list. Here is where the 80/20 rule applies: 80% of your revenue comes from 20% of your customers. That 20% of your customers is what we call your A-list.

The important point here is that while you’re busy trying to make your C-list customer happy, you’re missing the opportunity to give your A-list customer the level of service they deserve. Since the majority of your revenue comes from your A-list customers, that’s where you should be focusing your efforts.

So, give yourself permission to fire your C-list, and stop bending over backwards to address their concerns. Don’t let them rule your time. Spend your efforts making your A-list happy, and their purchases will more than make up the difference.

Let’s look at some strategies that will help you boost your repeat business, and your bottom line.

Customer Service

Everyone- even businesses with high customer service standards – can improve the service they provide to their customers. This phrase is used a lot, but it’s true: Under promise and over deliver.

If you’re looking for new ways to impress your customers with service, conduct a survey of your existing customers and ask them how you can enhance or streamline their experience dealing with your company.

When you establish standards of customer service, make sure they are:

Consistently implemented by everyone in your business. Every customer who walks through the door experiences the same level of service, and receive that same service every time they walk through the door.

Convenient for your customer. Make the purchase process seamless for your customer. Think of all the steps your customers has to take from driving or walking to the store until they leave with their purchase, and try to eliminate any inconvenient elements.

Driven by the needs and wants of the customer. Understand how your target market wants to be treated when they’re purchasing from you. What do they value most from the experience? High end linens, or fast service? One-on-one assistance, or ample space and time to browse?

Newsletters

Use newsletters to establish and maintain regular contact with your customers. This is an easy, time-effective and cost-effective customer retention strategy

You’ll spend an upcoming Business Growth Masterclass learning how to create and send effective newsletters, but the most important point to remember is that the newsletter (just like all other marketing materials) needs to be focused on the needs and interests of your target audience.

The most popular and environmentally friendly form of distribution is through email. This is highly cost effective, as some web-based programs start at just £10 per month, and can be customised to your business’ graphic standards.

Here is a list of the types of content you can include in your newsletter:

  • Expert advice or opinion
  • New product or service features
  • New offers or promotions
  • Company news
  • Customer surveys
  • “Missed you!” emails
  • Event or closed-door sale invitations

Added Value

Find ways to increase your customers’ perception of value so they feel that their money goes further at your business compared to the competition. Value added products or services not only add to your average Transaction value but create repeat customers by:

Making a great first impression. Providing a customer with more than they expected – something goes beyond meeting their needs – establishes a solid first impression of your business. They learn to associate the experience of shopping at your business with pleasant surprises, which is a huge draw for returning customers.

Giving them a reason to come back. The perception that your products or services have a higher value than the competition will convince your customers to purchase from you, and refer their friends. The addition of new value-added products or services will keep them coming back.

Here are some examples of added value:

  • Free shipping/delivery with minimum purchase
  • Premium product or service line
  • Bonus gift with minimum purchase
  • Complementary product packages
  • Guarantees or risk-free purchases

happy customer

Incentives and Customer Loyalty Programs

A common form of customer retention is to provide incentives to customers to entice them to come back and buy from you.

A systemised form of incentives is called a Customer Loyalty Programme – and I bet you’re part of several. Loyalty programs work because they provide a consistent visual reminder of your business through a card, key fob, rewards vouchers, or other such items, and give the customer a financial incentive to purchase from you instead of your competition.

These programs vary from simple cards to complex rewards structures, but they don’t have to be complicated or costly. Plus, once they’re in place, they’re super easy to maintain. Loyalty programs are also great market research tools because you can collect a wealth of information on the signup form, maintain a detailed database and monitor their purchase habits.

You’ll spend an entire Business Growth Masterclass learning how to set up a loyalty programme from start to finish, but here are the basic structures to give you an idea:

Loyalty Cards Provide a wallet size card and use a stamp or punch to track their purchases until they reach 10. When they reach the magic number, the next product or service is free.

Rewards Dollars Return a certain percentage of each purchase to the customer using coupons that can only be spent with you.

Rewards Points Award a certain percentage of each pound they spend to a points account. These points can be used to spend in-store, or on special items brought in for points-holders only.

Membership Amenities Produce membership cards, and give your members access to services, discounts or amenities that other customers do not have access to.

Remember, each of your customers is a valuable asset that you have purchased to grow your business.

Treat your customers like you would treat good friends, and offer them the perks and rewards they deserve for their loyalty. I find that this approach is also a lot more rewarding because I get to know my customers, and some of them actually become friends.

Of course, there will always be a few clients you’ll never please, so keep the 80/20 rule fresh in your mind. Don’t be afraid of firing the customers who drain your time and your resources. Your A-list will more than make up the difference in revenue.

In the next Business Masterclass, I’ll show you a ton of ways you can add value to your product or service, and boost the pound value of each and every sale.

As always, let me know if you have any questions.

You can  use the contact form below to discuss and get help with the topics covered in this, or any of the previous Business Growth Masterclasses.

Until next time, good luck!

Business Growth Masterclass 15 – How to Improve Your Conversion Rate

Create More Success

Hello there and welcome to the 15th instalment of my Business Growth Masterclass. The step by step guide to building the business you always wished you could have.

Today, we’re going to look at a few tips and tricks to increase your conversion rates from lead to paying customer or client.

As ever though, before we get our teeth into today’s material, lets just check on actions from the last Business Growth Masterclass:

Did you do your homework?

  • You have implemented two persuasive writing techniques in your marketing materials.
  • You have elaborated on your list of emotional trigger words and phrases that will inspire your target market to take action.

Now that your target prospects are answering your call to action, how can you get them to actually become your customers?

conversions funnel

A big part of your focus to date has been on identifying who your ideal customers are, deciding how to reach them, and how to communicate with them so that they take action and contact you. Converting leads into customers is your next point of focus, and step two of the five-step process. You’ve spent so much time and money enticing the right people to raise their hands and identify themselves that now all you and your staff need to do is convince them to become your customers. Generally, how your potential customers perceive your business and your staff, as well as how much trust you can build and how fast you can build that trust are the two key factors that impact conversion rates. Secondly, the strength of your sales process and scripts as well as the level of risk involved in purchasing your product or service also have a powerful impact on conversion rates. But before we get into ways you can improve your conversion rates, let’s take a look at where conversions stand in your business right now. I’ll also show you how to evaluate whether you have a strong conversion rate or not – it’s not as black and white as you think.

In this Masterclass we will cover:

  • How your conversion rate impacts the bottom line
  • How to measure your conversion rate
  • How to evaluate your conversion rate
  • How trust and qualified lead generation impacts conversion rates
  • Strategies for improving your conversion rate

Your conversion rate is the second factor in the customer equation.

A conversion rate is simply the number of transactions divided by the number of leads during a specific time period. It’s a ratio between the number of people you attracted with your lead generation strategies, and the number of people who purchased from you and became your customers. So if 150 people come through your store in a day, and 50 of them make a purchase, your conversion rate is 33% for that day.

Converting leads – which is essentially the sales process – is likely the core of your daily business efforts. You’ve spent time and money setting up lead generation systems and strategies, so it stands to reason that you should put equal time and energy into converting those leads into loyal customers. I’m going to show you in a few minutes how you can improve your conversion rate with a few simple strategies, but first I want to show you how increasing your conversion rate alone will have a dramatic impact on your bottom line. Using the five-step formula, here is an example of how a 10% and 30% increase in conversions can impact your total profit.

Starting Point 10% Increase 30% Increase
Leads 4,500 4,500 4,500
Conversion Rate 30% 33% (10% increase) 39% (30% increase)
Customers 1350 1485 1755
Transactions 1.3 1.3 1.3
Average Sales Value £140 £140 £140
Revenue £245,700 £270,270 £319,410
Margins 24% 24% 24%
Profit £58,968 £64,864.80 £76,658.40

What is the average conversion rate for your business?

To figure out your conversion rate, choose a specific time period (day, week, month, campaign) and then divide the total number of sales transactions by the number of people who inquired about your product or service (leads) and multiply by 100. This is a percentage value of your conversion rate. For example, 50 transactions / 150 leads x 100 = 33% conversion rate. Now, if I wanted to look at conversions over a specific time period, the rate would vary:

Leads Sales Conversion Rate
Day 150 50 33%
Week 910 286 31%
Month 4050 1196 29%

If you’ve been tracking your leads over the past few weeks, you’ll be in good shape. All you may have to do is look at your lead tracking sheet, and divide into it your total number of sales over specific time periods. You’ll be able to analyse what your conversion rate looks like over the course of ad or direct mail campaigns, as well as over various weeks in the month. If you haven’t started tracking your leads, you’re going to have to start in order to understand what your true conversion rate is. In my experience, many business owners overestimate what this percentage actually is, so I feel this is an important step in the process.

Keep track of the following items in your conversion rate measurement sheet:

  • Start date and end date of the measurement period (by ad campaign, week, or month)
  • Total number of leads (divided by source – telephone, in store, online, etc.)
  • Total number of sales transactions
  • How trust and qualified lead generation impacts conversion rates

If you’re starting to track leads and sales today, by the end of a week you’ll have a reasonable understanding of where your business stands.

How do you evaluate if your conversion rate is “good” or not?

I have clients ask me this all the time, ‘Once you know what your conversion rate is, how can you tell if it’s “good” or “profitable”?’ Unfortunately, the answer isn’t a black and white one. The truth is that conversion rates vary and depend on the product, service and customer base. Different businesses can have dramatically different rates, yet both rates can mean the respective companies are highly successful. For example, a thriving pound store may have a conversion rate of almost 80%, while a profitable furniture store may have a conversion rate of 30%. Other businesses might have rates of anywhere from 4% to 99%. You can put it into perspective if you think about how differently these businesses operate. Pound stores generally have a high volume of foot traffic and offer a wide variety of products. The price point is low, and most people who walk into a pound store buy something. Furniture stores, on the other hand, offer products of a higher value that usually require more thought prior to purchase. The store generally advertises to attract leads that are looking for specific items and features. Lastly, the product requires a much more substantial investment. So, instead of focusing on how close your conversion rate is to 100%, you need to think of conversions as relative to your break-even point – either for a campaign or for regular business operations. To do this, you need more information than the rate itself. You need to know how many leads you need to convert into customers to see a return on investment. You need to know how much money each lead costs you, on average how much they spend, and how much of their spend is actual profit. For example, if you have £4,000 to spend on advertising and you want to see £20,000 in sales, will a 20% conversion rate be enough to do the job? To answer this, you need more information on other measures in your business. You need to know your average pound sale and average customer acquisition cost. In this example, let’s say your average pound sale is £42 and your average customer acquisition cost is £2.50. (You’ll look at customer acquisition costs in the next Masterclass). If you take your £4,000 advertising budget and divide by your £2.50 customer acquisition cost, you’ll expect to generate about 1,600 leads. So 1,600 leads with a 20% conversion rate would equal 320 sales – not bad. Now, take the 320 projected sales times the average pound sale of £75, and you’ll get £24,000 in revenue. That’s a reasonable ROI for a £4,000 investment! But is the 20% conversion rate a ‘good’ one? To answer this, you’ll have to factor in your profit margin to determine the answer. You wanted to achieve £20,000 from your £4,000 advertising investment. Let’s say your average profit margin is 45.3%. So, on each £75 sale, you made £34 profit. So, let’s look at your actual profit after costs:

320 sales x £34 profit per transaction= £10,880 in take home profit.

So, when the rest of your business measures are factored in, you actually only achieved a 272% return on investment, which is about half of what you were targeting. Therefore, in this case, a 20% target conversion rate isn’t necessarily a strong one for your business.

Now, before you dive into any conversion rate boosting strategies, focus on building trust and generating qualified leads – the cornerstones of a profitable conversion rate.

You probably already know that trust is a huge factor in any exchange with a potential customer. When you first learned about sales and the selling process, you learned about building trust and rapport with the people who are giving you their money. So, trust is therefore a big factor in having a healthy (and profitable) conversion rate. Your prospect needs to trust in the value of your offering, as well as the credibility of the business and the knowledge of the people who work there. The issue here, of course, is the length of time it takes to truly establish trust, or credibility. With all your new leads – practically strangers – walking through the door and picking up the phone, you need to establish instant trust and credibility in order to make the most of the time you spend with each prospect. The other important point I want to make is about the role that qualified leads have in your conversion rate. It’s one thing to have hundreds of leads contact you on a daily basis, but if they’re not qualified leads, they’re less likely to buy, and are therefore potentially wasting your time and squashing your conversion rate.

Here are five ways you can boost your conversion rate with little improvements to your business.

satisfied_customers

1. Build instant trust.

Use testimonials. Ask happy customers to write testimonials about their experience at your business. Use their words (or even their whole letters) in your marketing materials, or post them in your place of business. Testimonials boost confidence in what you’re offering and establish trust in the eyes of prospects.

Showcase your good news. Post awards, accolades, media articles and other ‘proof’ of your credibility around your business and on your website.

2. Create an image of quality.

Consider the appearance of your staff. How do you and your staff members dress? Does your appearance communicate the right message to potential clients about your offering? You don’t need to show up in a suit every day, but make sure everyone’s appearance is professional and appropriate for your business.

Improve the perception of your business. This includes the physical state of your place of business, as well as the quality of your marketing materials and the quality of the service customers’ receive when they purchase from you.

Give merchandise displays a boost. Can you make your products look more attractive through the way they’re displayed or arranged? Put complementary products together, and create feature product displays to create variety and interest.

3. Train and develop your staff.

Give staff conversion targets and incentives. Remember that you’re not the only one who can contribute to an increase in conversions. Involve and support your staff in tracking and boosting conversion rates. Give them individual targets, and incentives for meeting them.

Review and improve sales process. Everyone can improve their sales skills, and refine the process they use to close sales. Take an opportunity to watch and give feedback to your staff members, or hold a brainstorming session to discuss what techniques, phrases, objections are most effective when selling your product or service.

Develop and continuously update scripts. If you’re not using scripts, it’s time to start (you’ll see why in an upcoming Masterclass). If you are using scripts, make sure you’re revising and improving them on a regular basis based on what you and your staff experience during the sales process.

Focus on customer education instead of sales. Face it, no one likes to be ‘sold’ to. Focus your sales process on building a relationship with and educating your customer on the benefits and solutions of your offering. The more they learn, the more they’ll believe what you have to say, trusting the business enough to make a purchase.

4. Improve your offering.

customer-service

Increase quality, exclusivity or range. Can you improve the quality of products or services that you offer? Carry a more exclusive product, or extend your range of products? Take a look at your merchandising mix and service menu and identify areas where you can expand or specialise.

Make great offers. Strong offers can also serve as an incentive for a potential customer to complete the sale. Offer great perceived value, or exclusive and time-sensitive products or services, and you’ll see a spike in your conversion rate.

5. Take away purchase risk.

Provide free trials and demonstrations. Allow your customers to test out your product or service for free, with no obligation to purchase. Or, offer free demonstrations so your customer can see the benefit or solution your product or service provides.

Guarantee product or service performance. Take away the purchase risk from your potential customer, and you’ll have a powerful strategy for closing sales and increasing conversions. This is also an immediate trust and credibility booster – you are so confident in your product or service’s results that you’re guaranteeing them.

Work with your staff on a daily or weekly basis to consistently measure and increase conversion rates.

Post a calendar in the staff room or common area, and track your targeted and actual conversion rates on a daily and weekly basis. This will give you and your staff a visual reminder of the company’s goals, as well as an indication of how the team is performing. You don’t work in your business alone, so involve and motivate your team to support you in growing your business. Give them incentives and help them develop their sales skills, and I promise you’ll see an impact on your conversions. The next step is about customer loyalty – how to keep your clients coming back to make new purchases, instead of continuously trying to buy new clients. As always, let me know if you have any questions.

You can  use the contact form below to discuss and get help with the topics covered in this,or Any of the previous Business Growth Masterclasses.

Until next time, good luck!

A Little Coaching Exercise for the New Year

Hi everybody,

 

Each year as we approach the close of one year and the beginning of another I go through an exercise with my coach which I find extremely beneficial and rewarding. I have asked if I can share it with my clients past and present, and other close contacts.

 

This is way beyond creating New Year resolutions and is much more about moving on to the future with renewed optimism and focus. I hope you have the chance to do it rather than just read it. It is important that you write down the answers rather than just think them through especially as it is a really enjoyable exercise to complete.

 

Step One

 

Look over the past year and:

A)   Make a list of all the wins, successes and breakthroughs in the past year. Look at all areas of your life. What do you want to celebrate and acknowledge?

B)   Make a list of all the losses, disappointments and breakdowns in the past year. What do you want to forgive yourself for and release?

C)   Bring this list to our session. We will discuss what it means to be “complete” with each item. Incompleteness holds us back from taking on the next exciting opportunity.

Step Two

 

Looking over the past year, what are the 5-7 lessons you have learned?

Choose the lessons that you want to carry over into the New Year.

What learning is there to deepen?

Some examples of learning:

  1.   I learned to windsurf, play bridge or speak Spanish
  2.   I learned that my mistakes do not mean I am a failure
  3.   I learned that more is possible for me than I ever imagined

 

As you review your goals and commitments for 2014, which areas do you want to maintain, bring into the New Year, revise, be complete with?

 

Step Three

 

Consider these questions as you prepare your vision for 1 year from now:

  • As you stand on one of the peaks looking forward, what future is calling?
  • What is the essence of what is next for you?
  • What do you want to achieve or accomplish?
  • What risks and challenges will you take on?
  • What more of you wants to be expressed — for example, self-love, self-compassion, self-value?
  • What self-lies (e.g., “I am not powerful.”) are you ready and willing to end?
  • What new level of abundance and success are you willing to embrace?

 

Imagine one year ahead, and write a list of all the wins, successes and breakthroughs for the coming year. What would you like to learn or accomplish by the end of the next year? Write this list as though it has already happened. Make it as long as you choose, and be sure to look at each area of your life.

Prioritise the list. Look at how each item fits with your values, make plans and set accountability for the next year.

 

Step Four

 

Much like the Chinese tradition that gives names to each year, choose a name for this coming year. Use images, symbols or ideas to name the coming year. What image allows you to step more fully into what you want to be, and are already becoming? Find a name that stretches your imagination and moves you into greater possibility.

Examples: Year of Balance, Year of the Soaring Eagle, Year of the Wild Woman Set Free, Year of the Creative Genius, etc.

Step Five

 

Finally, consider where we are in our relationship:

  • What do you want more of, less of, the same of?
  • In what ways might this relationship and our work better serve you?

 

Please try PRINTING IT OFF and DOING IT… it may not be as artistic or colourful as a Greetings card but I guarantee the positive attitude, actions and focus will last for a whole year.

Have some great time off and a prosperous new year.

Cheers for now,

 

David T Preston

Business and Executive Coach

We all know there’s only one way to provide customer service – Isn’t there?

Customer service excellence is a hall mark of all the best and most successful businesses, but it’s not a “one size fits all” solution.

We all know that our customers are unique individuals, but when we deal with them do we really treat them like that?  Do you see customer service as a slick and proven approach that is successful because it treats everyone the same?  I would like to introduce you to 4 of our customers:

  1. Samantha – she is a serious and quiet person who has an interest in detail and getting even the smallest thing right.  Never ask her about her family or social life – she sees it as none of your business and irrelevant to doing business.
  2. Eric – the life and soul of the party – in fact he’s always trying to get us to meet up in town for a “few beers”.  A conversation with Eric always takes longer than planned and is guaranteed to cover the rugby/holidays/weekend every time before we get down to business!
  3. John – it took along while to get to know John – he is quiet, shows little of what he is thinking, but is always polite and calm.  He is quick to compliment good service, but slow to complain if things aren’t going so well.  It wouldn’t be a surprise if he simply took his business elsewhere without saying anything.
  4. Julie – you know where you stand with Julie – she tells you exactly what she thinks, whether you like it or not!  She hates delay, can’t abide excuses and does not tolerate failure to meet deadlines – however small.

You may recognise some of these people amongst your customers.  They all seek excellent service, but the way that you deliver it to them needs to be subtly different.  If people buy from people they like, then it is certainly true that people stop buying from people that they don’t like – or who they perceive as having a different set of priorities to them when it comes to customer service.

If you and your team members could understand your customers’ differences and take account of them when delivering your products or services to them, just think how much more positively your business would be perceived!

The Service Profit Chain

There is no doubt that excellence in service is directly linked to profitability – the most profitable businesses invariably deliver the best customer service.  You can improve your customer experience by understanding their needs and expectations better.  You can achieve this by introducing DiSC to your customer service team.  Let DISC UK show you how.

About DiSC

DiSC is the most trusted behavioural communication and learning instrument in the world. DiSC is based on more than 80 years of research and development and is used across the globe in hundreds of training and coaching applications, with around 70% of FTSE 500 companies either using or having used the system.

For further information about the unique Everything DiSC products, or to arrange to have your own profiles produced, contact us via email david@wallshiremanagement.co.uk or telephone on 01209 613 060 today.

Best Regards
Dave Preston

Business Growth Masterclass 9 – How to Generate More Leads with Less Effort

Hello again everyone, and welcome to the 9th instalment in my series “Business Growth Masterclass”. The subject of this Masterclass is How to Generate More Leads with Less Effort.

As ever, before we begin, lets recap on the main points fromthe last Masterclass.

  • You have created three marketing messages using the step-by-step process
  • You have tested your marketing messages internally – with your staff, management and colleagues
  • You have started or are about to start testing your message externally – using advertising, direct mail or another lead generation strategy.

Has everybody done all that? Good. Ok, lets get started with this month’s masterclass.

What is the current picture of lead generation and management in your business?

Here’s the deal: in order to start generating more leads with less time and financial investment, you first have to spend time setting up systems and making some changes. Your goal after this Masterclass is to establish a solid lead tracking and lead management system, and make small tweaks to your existing lead generation strategies based on the work you completed in the target market and marketing message Masterclass. We’re going to look at many different lead generation strategies in upcoming MAsterclasses, but I want you to see the impact that the work you have already done will have on your existing strategies. I want you to start seeing results more or less straight away.

In this Masterclass we will cover:

  • The current status of lead generation in your company
  • The purpose of lead tracking and management systems
  • Types of lead tracking and lead management systems
  • How to set up a lead tracking and or management system
  • Qualified lead generation
  • How to get more results from your existing strategies

Do you know where your current leads are coming from, or how many you get on a daily, weekly, or by-campaign basis?

If I asked you to tell me right now what your top lead generation strategies are, what would you say? A big part of step-one is gaining a solid understanding of where your business stands right now in terms of lead generation. Otherwise, how are you going to know when your lead generation strategies are working? Or which strategies are working? In a few minutes, I’m going to show you how to set up a lead tracking and lead management system that works with your business. But first, I’d like you to write down what you think your top three lead generation strategies are right now.

Every business needs a lead tracking and management system. Do you have one in place?

A lead tracking and management system is absolutely essential to your business for a number of reasons. One, it is the only way to know which marketing strategies are working, and which ones aren’t. The information your system gathers will allow you to make educated decisions about marketing campaigns and investments. Two, it organises your sales and marketing efforts and manages contact information in a user-friendly way. It’s clear who you called, when, what you said, and when you said you’d follow up. Three, it enables you to manage your sales staff by tracking their progress on several leads at once. You’ll have access to an at-a-glance picture of their sales figures and productivity.

Your lead tracking system needs to:

  • record the leads that arrive by phone, in-store visit, and website visit
  • track the source of each lead over specific time periods
  • record pertinent customer information
  • be simple enough to be used by all staff members

Your lead management system needs to:

  • track your leads through the sales plan or process
  • increase customer communications or contact
  • keep track of correspondences and follow-up requirements
  • make it easier for you and your staff to close more sales

Here is a list of information you will want to gather from your leads.

Depending on the needs of your business and the lead tracking and management system you choose (i.e., do you need a mailing address, or just email address?) some of these items may be optional fields.

  • Company Name
  • Name of Contact
  • Alternate Contact Person
  • Mailing Address
  • Phone Number
  • Fax Number
  • Cell Phone
  • Email Address
  • Website Address
  • Product of Interest
  • Source of Lead (i.e., How did you hear from us?)
  • Reason for Enquiry

If it is appropriate for your business, you also may wish to gather demographic information from your leads – but keep this voluntary. This information would be ideally used in your market research analysis.

Keep in mind that your lead tracking and management systems need to be simple enough for everyone in your company to use.

Unless you are the only person in your company who manages incoming phone calls, greets customers and chases down leads, the systems you implement will need to be used consistently by everyone in your organization. Once you have decided on a system, schedule enough time to train your staff thoroughly and be open to feedback. Since you’re not the sole user, you’ll need to consider their thoughts on the usability of the systems.

Pick a lead tracking and management system that suits your budget, and offers the features your business needs.

Each business will have different requirements when it comes to lead tracking and management. A retail store will have different needs than an estate agents office, for example. The retail store may only need to record leads based on lead generation strategies, and keep lead information for their direct mail or newsletter databases. On the other hand, the estate agent will need to make contact with their leads on several occasions, and need a system that will record and remind them of those correspondences. Software for lead management ranges from simple to highly sophisticated, and can be a great investment depending on the needs of your business. Some CRM (Customer Relationship Management) tools are available online as a web-based system you can subscribe to and have access to on the road. I’ve listed the features and advantages to a number of different systems below – ranging from low-tech to high-tech, paper-based to web-savvy.

Index Cards Variety of sizes: 3×5, 4X6 or 5X8. Basic contact information on one side, notes on the other Easy to organise and sort This is a basic system used to manage leads by those who may be less comfortable with computers. This system will be effective at tracking low volumes of leads.
Rolodex More contacts than index card system Easily organised and compact Basic contact information on one side, notes on the other side Another basic system that will effectively manage leads without the use of a computer. While this system can store a higher number of cards, it is also only effective for tracking low volumes of leads.
Excel Spreadsheets Electronic system that is highly customizable by date, name, source or other variables Easily organised and analyzed Several worksheets in a single file allow leads to be tracked and contact managed Accessible for those with basic computer skills This is a slightly more sophisticated system that will allow you to track higher volumes of leads, and effectively organise the information that you collect into charts that can be analyzed. In Excel, you are able to work with a number of tracking sheets in a single file, and create hard copy tracking sheets for staff to use at point of sale and reception. Excel also has the capability of importing data from Outlook and Maximiser.
Database Management Programs High level of organization Unlimited space for notes and record-keeping Data-entry required Examples include: MS Outlook, MS Excel, Maximiser A more sophisticated system that will interface with Excel and manage high volumes of leads and customer details. Manages distribution lists for newsletters and direct mail campaigns. Primarily manages contact information, and provides space for notes, follow-ups and reminders. Tracking high volumes of leads without recording and inputting customer information is best done in Excel.
Customer Relationship Management (CRM) Software Web-based, and accessible from anywhere with internet access Organises leads and customers by name, company, date, or status Ability to attach documents (like proposals and contracts) to leads Ability to write notes and log correspondence by date View contact history and status Interfaces with e-mail marketing programs Example is SalesForce A highly sophisticated system with advanced features. Tracks a high volume of relationship-based leads, and provides a detailed, feature-heavy system for lead management. Not ideal for retail businesses, or businesses that need to track a high volume of leads with minimal customer information attached.
Website Analytics Monitors and analyzes website traffic and online advertising Tracks number of people who visit your site, where they came from (search engines, online advertisement, website link etc.), how long they stayed, the pages they visited, and which page they left the site from. Google Analytics is an easy-to-use example An ideal way to track and analyze website traffic to complement your overall lead tracking system. This is not a complete system on its own. Requires the insertion of a specific code into each of your webpages, or each of your online advertisements. Monitors usage statistics, and generates reports, charts, graphs, etc.

Bringing qualified leads into your business will save you and your sales team time, and result in higher revenues.

Qualified leads are simply the potential customers who are the most likely to buy your your product or service. They’re not just in your store taking at look at the latest features in refrigerators, they’re in the market to purchase a refrigerator. They’re not wandering in to see what a £500 handbag looks like, they are the kind of person who can actually spend £500 on a handbag. Some of the people who will call you or visit your business will never buy from you no matter how good your sales scripts are or how much time you spend overcoming their objectives. There are a variety of reasons for this – and you’ll never eliminate all of these people – but you will need to focus on bringing in more of the people who are ready to buy. The good news is you have spent so much time and energy cultivating a comprehensive knowledge of your target market, that you’re in a great position to increase the number of qualified leads you bring into your business.

How do You Get Qualified Leads?

The crux of qualified lead generation is making decisions based on the market research you completed on your target market. You basically need to know where to reach your market, and how to speak to them. When you are designing, executing and making choices about your lead generation strategies, always consider these questions.

Who is my target market? Write down your target market description to keep you focused on the specifics of this group of people.
DISTRIBUTION IS EVERYTHING: How does my target market like to receive information? Do they read the newspaper? Pick up the family mail? Spend hours on Facebook? Subscribe to Reader’s Digest? Listen to newsradio on long commutes to work?
What motivates my target market to take action, and how can I tap into that motivation? How will you tap into your target market’s emotional response? What issues or needs will mean something to them, and drive them to your business to solve them.
Where can I place my marketing message so my target market will see it? Look at what you found out in your market research about your target market’s hobbies, activities and interests. How can you place your message or your product or service in their path?
What can I offer my target market to entice them to purchase from me? Can you offer your target market something special, rare, or time specific that will appeal only to them?

I’m going to show you how some little changes will generate big results for your company in short order.

Once you’re set up with a testing and measuring system (your lead tracking and management systems) to evaluate the success of your lead generation strategies, you need to start by looking for opportunities to beef up the strategies you’re currently working with.

Use your new marketing message. Make sure that you have put your new marketing message on all of your marketing materials, where new and existing customers can see it. Revise your standard advertisements to feature the strengthened copy.
Strengthen your offer. Create an offer that’s too good to refuse – not for your entire target market, but for your ideal customer. How can you cater to their unique needs and wants? What will be irresistible for them?
Refocus your direct mail campaign. If you’re sending your direct mail to entire postal code areas, stop and refocus. If your distribution area is that broad, chances are the copy on your postcard or letter is too broad as well. Brainstorm ways to narrow your distribution and only hit your target audience. Purchase consumer lists based on demographics, not just location, or limit distribution to specific housing types. Of course, make sure you rework the direct mail piece to feature your marketing message.
Let your target market’s behaviours dictate your distribution plans. As I discussed above, the more you can tailor your strategy to the needs and habits of your target market, the strong your results will be. Look for opportunities in your existing direct mail, advertising, flyer drop and other strategies to get specific. Narrow the demographics of your list, or place an ad in a niche publication. Brainstorm new ways to target your market’s emotional reactions.
Tap into low-cost advertising. Advertising in places like the YellowPages, classifieds sections, e-mail newsletters and Google Adwords can be a great place to test your marketing message for minimal investment. In an upcoming Masterclass you’ll learn how to place ads in the YellowPages and other listings that stand out from the competition.
Look for some referral business. Referral business is desirable because it usually brings qualified leads into your business. Someone has referred them to you based on a current need or desire. > Provide your customers with an incentive to bring business to you. Reward successful referrals with discounts or gifts. > Create a referral chain by giving each new customer three free coupons for products or services that they can give to their friends. When their friends come into your business, do the same. > Create complementary alliances with non-competitor businesses with the same target market. Cross-promotion or cross-referral strategies will benefit both businesses.
Website sign-up Add a feature on your website that encourages visitors to sign-up for newsletters or other communications. You can also set up your website so that potential customers need to fill out a simple form before they have access to “free” information.
How to Create Marketing Materials That Work The next Business Growth Masterlass will walk you through some tips and helpful suggestions for improving your marketing materials. Revise your existing materials based on these suggestions, and watch your leads multiply.

Stop using strategies that don’t work.

Now that you have a comprehensive lead tracking system in place, you’ll be able to track the leads that each strategy is responsible for generating. When you complete your first few campaigns with the lead tracking system and analyse the numbers, compare the results to the initial predictions you made. Were you correct in your assumptions, or were you surprised by how things shook out. The purpose of testing and measuring using a lead tracking system is to figure out which strategies work, and which don’t, as well as which strategies work best, and which generate mediocre results. This not only will save you money but is incredibly useful information to have when developing marketing budgets and, of course, trying to drive sales.

READ THIS: A quick cautionary note on conversions.

While the focus of  recent Masterclasses has been lead generation, remember the first part of the formula: No. of leads x %age conversion rate = No. of customers. You’ll be working on conversion rates in just a few Masterclasses from now, but my point is don’t lose sight of the relationship between leads and conversions in the overall formula. Remember that when more leads start flowing through your door, you’ll need to have the resources and systems in place to give a high level of customer service and to convert them into loyal customers. You’ve put effort into generating these qualified leads, but if you don’t have the resources in place to give them the attention required, you’ll lose them.

Once established, your lead tracking and lead management system should require minimal time investment…if you keep it up to date.

One last reminder before I sign-off – keep your systems up to date. The biggest pain (and drain on time) is having to go back and enter heaps of data into your database or management system because someone has let it pile up. It’s also a huge missed opportunity! If you fall behind on your lead tracking system, because you won’t be able to effectively evaluate your campaign or strategy. Or, you may have missed a lead because you didn’t follow-up soon enough. Be diligent, and set a strong example for your staff members. Good luck!

Does “True Grit” Actually Exist?

Research suggests it may decide how much we achieve in life

 

Have you got what it takes to succeed (True Grit) and realise your dreams?

Do you have to be born with it, or can it be bred into you?

When the going gets tough, do you get going?

 

Why is having “true grit” important and what can you do if you don’t think you’ve got it?

 

  • Having true grit is a trait among high-achievers, scientists claim
  • ‘True gritters’ show perseverance, tenacity and think success is important

 

He's got it: Jeff Bridges as Rooster Cogburn in the True Grit remake
He’s got it: Jeff Bridges as Rooster Cogburn in the True Grit remake

 

John Wayne had it too – more than Jeff Bridges Some will say. But far from being an intangible quality – scientists claim ‘true grit’ can be measured.

They say those with the trait show a ‘perseverance and passion for long-term goals’, and are tenacious, not easily distracted and not discouraged by setbacks.

And the scientists claim a simple test is enough to see whether a person possesses the dogged determination exhibited by Marshal Rooster Cogburn in the Hollywood Western  True Grit.

Those who take it have to rate how closely eight statements apply to them. These include ‘I finish whatever I begin’ and ‘Setbacks don’t discourage me’.

Wayne received an Oscar for his 1969 portrayal of the fearless American civil war veteran who helps a 14-year-old girl track down the man who had killed her father.

Bridges showed a similar single-mindedness in a recent remake.

And scientists say that if you too have true grit, you may do better in life.

Those with true grit show a ‘perseverance and passion for long-term goals’.

They are tenacious, not easily distracted and not discouraged by set-backs.  Theyalso place importance in success.

 According to studies, gritty children spell better, gritty teachers get the best out of their pupils and gritty adults get higher marks at university.

Put simply, grit could explain why some people try harder than others. To work out who has true grit, scientists have devised a test designed to measure focus and perseverance.

Those who score highly aren’t distracted from the task in hand by new opportunities, nor are they discouraged by setbacks. They are hard-workers and find it easy to spend months focusing on a single project. And, as diligent types, they like to finish what they begin.

So does she: 'True gritters' are tenacious, not easily distracted and find success very importantShe has it! ‘True gritters’ are tenacious, hard-working and find success very important

 

Long-term, this may lead to them achieving their goals. But in the very short-term, the effects can be seen on the body.

When psychologists who wanted to test their grit got men and women to do tricky mental manipulations, they saw differences in the activity of the heart between tenacious types and those who give up easily.

Researchers said: ‘Grit, a recently proposed personality trait associated with persistence for long-term goals, predicts success in part in promoting self-control, thus allowing people to persist in repetitive, tedious or frustrating behaviours that are necessary for success.

‘People high in grit are more passionate about their goals and more dedicated to accomplishing them.’

True Gritters would align very nicely with the high D behavioural style within the DiSC behavioural profiling approach – a tool we use extensively here at Wallshire Management.

If you want to find out whether you’ve got “True Grit”, we can help you find out.

Do You Know How Your Client’s Make The Decision To Buy What You Sell?

Have you ever given any thought as to how your clients make that all important decision as to whether or not they will buy your product or service? What is it EXACTLY that triggers their buy / don’t buy button? Is it really price that controls their decision, or are other factors involved?

What you need to know…

Believe it or not, price is actually one of your prospects last considerations. Human nature says that no matter who buys what you sell, they will always want “the best deal.” That doesn’t mean the lowest price, but it does mean they want the most “VALUE” for the price they pay. The perception that your product or service offers extraordinary value controls their final decision.

Why you need to know this…

The key is to create “extraordinary value” as it relates to what you sell. In fact, if you do this, you can even charge a much higher price, providing the perception of value justifies that price. Unfortunately, most business owners don’t have a clue how to create “extraordinary value,” and therefore don’t offer it to their prospects, costing themselves massive market share and a boatload of lost revenue.

To create value, a business must “innovate.” You must understand the things your clients want from your product or service, and then use innovative ideas and solutions to either remove the pain and frustration they normally associate with what you sell, or enhance the benefits they receive from using it.

For example, the working mum who feels frustrated and worried when she drops off her child at daycare because she doesn’t know how the child is being cared for finds tremendous relief and peace of mind (extraordinary value) when the daycare installs Web Watch… a 24 camera surveillance system that allows parents to view their child online, anytime.

The cost to you if you fail to act…

If you fail to create “extraordinary value,” then you look like, feel like and smell like your competition. You will be forever doomed to compete with them on price, and when you’re forced to compete on price, you have just lost the battle. There will always be someone willing to undercut your price… ALWAYS!

By innovating your business, you begin to separate your business from your competition. You begin to eliminate your competition from the minds of your prospects… and you will have your prospects literally saying to themselves that “I would be an absolute fool if I bought this from anyone else.”

Innovation attracts your “ideal” clients to your business. These are the clients that will buy more from you at premium prices. They will spend more money and buy from you over longer periods of time. Your revenue and profits begin to skyrocket as you begin to add unprecedented market share.

Look for ways to “innovate” your business and do so in such a way that you create extraordinary value in the minds of your prospects.

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