Recent Blog Posts

Customers, Clients, or Guests: Which Do You Serve?

Posted By Amanda Collins on May 21, 2010

As a successful business owner, you should have a clear understanding of the differences between the terms customers, clients, and guests. In fact, your view of these words should define your business model.

Customers
A customer is simply someone who buys something from another person or organization. This is the base of sales interactions. Customers don’t typically develop a relationship with the company. You may consider yourself a customer of your local grocery store, for example. You won’t differentiate your business or yourself by relating to people as customers.

Clients
A client has a relationship with an organization with whom s/he is doing business. You will cultivate clients and remain in touch with them through drip-marketing campaigns that may include phone, email, and direct mail interactions. Clients are those people who come back to you again and again – and refer their friends and family because they trust your services. Most small business owners refer to those they serve as clients.

Guests
A guest is a person who is invited to do business with you. S/he feels valued and welcomed to your office (whether brick-and-mortar or virtual), and is engaged in the process. This is what you should aspire to have in your business. Think of each interaction as building a long-term relationship. You may notice that many larger businesses are transitioning to this term in their quest to provide the highest level of customer service. Walt Disney mastered this approach, and it is what turned the Disney name into an empire.

I encourage you to consider how you’re relating to those with whom you do business. Are they customers who just give you money in exchange for a service? Are they clients with whom you are developing a relationship? Or are they guests who feel warmly greeted and cared for throughout the process? The answer to those questions will define your interactions – and have a profound effect on how you do business.

Turning leads into referral partners

Posted By Amanda Collins on November 22, 2009

When I worked in college admissions, the underlying goal of all of our efforts was to push prospective students down the applicant funnel to become enrolled students. Then, as I moved into my own business, I applied the same principles, which are of course universal. Big companies recognize a sales (or marketing) funnel and have the same goal I had at colleges – to push people to the bottom. A huge part of that happens through a company’s communications strategies.

We want everyone who inquires about our businesses to become repeat clients and share with us referrals, right? Unfortunately, though, while big, multimillion-dollar conglomerates keep in touch with their customers through advertisements, direct mail, and e-mail campaigns, most small business owners and entrepreneurs seem to miss that step, either due to lack of money or knowledge about how to do so. I run into many solopreneurs who are out at networking events with the goal of acquiring business – yet 95% (or more) of them don’t even follow up with those contacts, much less begin a communications campaign.

The Sales Funnelsales-funnel
In the sales funnel, people can enter at any point. They can come in as a cold lead at the top, or somewhere in the middle as a sold inquiry, or even as a referral from a trusted source. Most business owners would love to have mostly referrals because those clients are easier to close, given that they received a strong endorsement before ever making contact with the business.

The disconnect in the small business world is that entrepreneurs are so harried they don’t have time or know-how to measure their numbers of inquiries and conversion rates to customers. And they rarely have time to build a strong, strategic marketing communications plan. Both of these aspects are essential in turning leads into clients and referral partners.

Communications Strategy
First and foremost, you need to follow up with people you meet. That sets a tone and starts to build a relationship – and we all know we do business with those we know, like, and trust. Then you need to stay in touch with your database. We all meet a lot of people in our daily lives, and we’ll forget them if they’re not top of mind. At least once a month you should be making some contact with your clients, inquiries, and prospects. If you get them all with a blanket approach, at least you’re making contact, but you’re not really pushing them to do anything. The better approach is to segment your list and market to them accordingly.

Keep track of your database in groups, such as prospects (you picked up their card), inquiries (they asked about what you do), and clients (they’ve made a purchase). That way you can push each group into the next level in the funnel. If you were on the receiving side, wouldn’t you feel funny if you got an e-mail asking you to buy when you just recently made a purchase? The same would hold true if you were asked for feedback on a purchase you hadn’t yet made. Customers feel more valued when you’re speaking the THEM rather than to the masses.

You’re certainly not going to push 100% of your database through the funnel to become clients, but your ratio will definitely increase when you open communications – with intent. Then remember to stay in touch with clients to ask them for referrals and additional business based on your industry. You’ll see a dramatic increase in business by staying top of mind and asking for what you want.

Improve client relations through steady communications

Posted By Amanda Collins on September 22, 2009

Whether your clients generate one-time transactions or are more consistent, you want to remain top of mind as the expert in your industry – and you do that by staying in touch with them. Obviously this is easier if they’re receiving monthly invoices and weekly e-mails or phone calls, but what about those clients who only need a short-term solution? Are you keeping in touch with them to answer future questions or ask for referrals?

Many of my clients only work with me for a month or so while I create a résumé and cover letter package. Even if I’m writing or editing material for them, it may turn out to only be for a couple of months. But what if their situation changes or they come across a great referral? It’s possible – and even likely – that they won’t remember me (like they won’t remember you) if they aren’t reminded from time to time.

One of the ways you can stay in touch with your clients and prospective clients is through a regular e-newsletter. Constant Contact offers a free 60-day trial so you can get acquainted with their system and start to define a strategy for regular communications. You can include information about yourself, your products and services, or upcoming specials and promotions. If you want to go above and beyond, you can use direct mail for your newsletter – either monthly or quarterly.

No matter how you stay in touch with your clients, make sure you do something. People meet a lot of new contacts regularly, and the last person we meet or hear from is usually the first we consider when a need arises.