Entrepreneurs and new business owners often fail to appreciate the difficulty of attracting new customers. Entrepreneur magazine refers to this as “field of dreams marketing.” It is assumed that unlocking the shop or advertising a service will result in customers coming through the door or ringing the phone. In reality, however, getting new customers is an expensive and lengthy endeavor.
This is why experienced businesspeople will do all they can to hang onto a customer once they have one. It is significantly cheaper and more effective to keep an existing customer than get a new one. That does not mean it is easy to keep them though. What are some best practices for building shopper loyalty?
First, great companies know what their customers want. This does not mean successful entrepreneurs must be telepathic. Nor do they need to give every customer a survey at the cash register (please no more). In retail, most customers are signaling what they expect when they walk into a store. If it is a clothing store, they just might be there for some clothes. If it is a coffee shop, guess what? They want coffee.
Businesses occasionally spend far too much time and money on the assumption customers might want something other than the items already on the shelf. Nobody proves this point better that Google. One of the most successful companies of our time still rolls out their flagship product as a simple search field in the center of a big white space. They know people who go to a search engine just want to search.
Second, great companies give their customers what they want. If a customer enters an electronics store to purchase a phone and the clerk spends 20 minutes trying to sell her a tablet, selfie-stick, or camera, then the customer’s satisfaction level will be low. Perhaps she will purchase the phone, but she will not be eager for a return trip. Had the clerk simply sold a great phone, the customer just might have popped back in sometime for that tablet.
Today’s shoppers value their time, are well informed about products, and typically know what they want when they enter a shop. Major American cable companies are learning this the hard way as customers leave them in droves for smaller, nimbler streaming services that will simply give them what they want without pressing them to pay for many channels they have no interest in.
Third, successful businesses give customers more than they want. This is not the same as selling them more than they want to buy. For example, if you walk into the Asian coffee retailer J.Co and order a cup of coffee they will give you a donut too. Surprise! No one complains about a free donut. Even customers who refuse it for health reasons will be impressed that it was offered. That extra benefit, although small, draws people back. Giving away donuts is much cheaper than advertising for new customers and it eventually increases sales.
How to apply this principle will depend on the particular business. A cleaning company can refill the bathroom soaps, a bakery can include a serving knife, and a dress shop can give away a nice garment bag. To be most effective, these should be unadvertised surprises. They are not a benefit the customer is paying for; rather they are examples of going above a beyond. These little extras increase customer loyalty and will improve sales.
Fourth, the best companies give customers an excellent value on what they want. There are few shoppers in this world with truly unlimited budgets. In reality, most people are motivated by good prices. Walmart climbed to the top of the retail world with its motto, “Always the lowest price. Always.” This does not mean a business should strive to be the cheapest option every time. However, it does mean that customers should never be overcharged and pricing schemes should be clear.
Start-up companies are sometimes tempted to overprice goods and services because they are desperately trying to build good income streams. This is a temptation that must be avoided. Customers who feel they are getting what they want at a reasonable price will likely return for more. If they do, it will not take long for new businesses to grow a healthy income.
Knowing what a customer wants, giving it to them (with a little extra), and at a good price will draw them back again and again. Implementing these ideas is not rocket science. New business people can find inspiration by imagining themselves on the other side of the counter. What would they want if they were doing the shopping?
“Do unto others as you would want them to do unto you” is a great rule for building customer loyalty. The results can be truly golden.
Age discrimination lawsuits are coming due to the pandemic – don’t add to the mess
(BUSINESS NEWS) Age discrimination is spreading despite intentions to help, and employers need to know how to proceed in this unprecedented era.
A 2015 survey found that 75% of older workers found age an obstacle in job hunting. COVID-19 made the situation much worse.
Not only do older workers deal with discrimination, but they are at a higher risk of developing serious complications from the virus. According to the Society for Human Resource Management, older workers were hit the hardest by job loss during the pandemic, which is unusual during a recession. As offices reopen, employers need to be careful to avoid age discrimination in rehiring.
Lawyers expect age discrimination lawsuits to increase.
Last September, Harris Meyer published an article in the ABA Journal that predicted a “flood of age discrimination lawsuits” from the pandemic. Employers who have good intentions by keeping older employees out of the workplace to protect their health are still guilty of age discrimination.
What can employers do to avoid age discrimination?
It may be fine line between making sure you don’t discriminate based on age while offering ADA accommodations. The first thing employers should do is to know what laws apply based on their location. Some states exempt employees over 65 from returning to the workplace out of safety fears, meaning that those employees can still get unemployment. Other states are cutting benefits if employees don’t return to work, regardless of age.
There are some jurisdictions that have passed legislation about which workers have the right to be recalled. Next, review your own policies and agreements with laid off and terminated employees. You may want to consult legal counsel to make sure you’re covering your bases.
As you rehire, whether you’re bringing back former employees or hiring new team members, do not make hiring decisions based on age. Keep good documentation about your decisions to terminate certain employees. If you are citing poor performance, make sure to have a record of that. Don’t terminate older employees who have bigger salaries just because of lower sales. Monitor your words (and that of your hiring team) to avoid bias in hiring and firing.
Provide accommodations or not?
According to the SHRM, “Workers age 40 and older are protected from bias by the Age Discrimination in Employment Act; however, that law doesn’t require employers to make accommodations for safety concerns.”
Still, employers can provide flexibility for workers, but it largely depends on the type of job. Reaching an accommodation for an office worker will be much easier than accommodating a sanitation worker.
Employers should assume that workers aged 40 and older can return to work. When the need for help is raised by the employee, enter negotiations for accommodations. Don’t initiate the conversation, and absolutely avoid any references to age.
Know that the environment may change as the pandemic continues to affect workers.
Be thoughtful about your hiring practices moving forward to avoid costly litigation from age discrimination.
Missing office culture while working remotely? This tool tries to recreate it
(BUSINESS NEWS) This startup just released new software to help you reproduce the best parts of in-person office interactions while you work from home.
Are you over working from home? Feeling disconnected from your co-workers? Well look no further: The startup Loop Team just released a tool that reproduces the office culture experience virtually.
“We’ve looked at a lot of the interactions that happen when you’re physically in an office — the visual communication, the background conversations, the hallway chatter,” said Loop Team’s founder and CEO Raj Singh in an interview with TechCrunch. “[W]e built an experience that effectively is a virtual office. And so it tries to represent the best parts of what a physical office experience might be like, but in a virtual form.”
Singh’s company, founded pre-COVID, is posed as a solution to feeling “out of the loop” while working remotely. During the pandemic, where virtually all of us are working from home, this technology is needed more than ever.
How it works is by essentially recreating an office experience on a virtual platform. Somewhere between Zoom and Slack with some added features, Loop Team lets you know who’s free to chat, who’s in meetings, and allows you to have private discussions using audio, video, and screen share. It’s ideal for working on projects together.
Loop’s layout is unique in the sense that it is designed to show you conversations in a clear, direct way – exposing relevant items and hiding the rest. Also, employees who miss meetings have the ability to review what they missed, making it perfect for companies that hire across time zones.
The platform was made available December 1st free of charge, but Singh is hoping to introduce a paid version next year. Pricing will likely reflect team size and should remain free for teams of 10 or less.
I’m a big fan of software that allows you to feel closer and more connected to your co-workers. Do I think anything will ever compare to a true, in-person office experience? Definitely not. That being said, I value this kind of progress, especially since I don’t think office culture en mass will make a return any time soon, regardless of vaccinations.
What’s DMT and why are techies and entrepreneurs secretly taking the drug?
(BUSINESS) The tech world and entrepreneur world are quietly taking a psychadellic in increasing numbers – they make a compelling case, but it’s not without risks.
Move over tortured artists and festival-goers, psychedelics aren’t just for you anymore. An increasing number of professionals in Silicon Valley swear by “microdosing” psychedelic substances such as lysergic acid diethylamide(LSD) in efforts to heighten creativity and drive innovative efforts.
This probably isn’t a shock to anyone following trends in tech and startups, particularly the glorification of the 8-trillion hour workweek (#hustle). But business owners, entrepreneurs, and technologists are also turning to other hallucinogens to awaken higher levels of consciousness in hopes of influencing favorable business results.
Dimethyltryptamine (DMT) is growing in popularity as business leaders and creatives flock to Peru or mastermind retreats to ingest the drug. It exists in the human body as well as other animals and plants. In his book DMT: The Spirit Molecule, Dr. Rick Strassman says “this ‘spirit’ molecule provides our consciousness access to the most amazing and unexpected visions, thoughts and feelings. It throws open the door to worlds beyond our imagination.”
The substance is commonly synthesized in a lab and smoked, with short-lived effects (between five to 45 minutes, however, some say it lasts for hours).
Traditionally, however, it is extracted from various Amazonian plant species and snuffed or consumed as a tea (called ayahuasca or yage). The effects of DMT when consumed in this manner can last as long as ten hours. Entrepreneurs are attracted to the “ayahuasca experience” for its touted ability to provide clarity, vision and inventiveness.
Physical effects are said to include an increase in blood pressure and a raised heart rate. Users report gastrointestinal effects when taken orally, commonly referred to as the “purge.” The purging can include vomiting or diarrhea, which makes for interesting conversation at the next company whiteboarding session.
Users are subject to dizziness, difficulty regulating body temperature, and muscular incoordination. Users also risk seizures, respiratory failure, or falling into a coma.
DMT can interfere with medications or foods, a reason why many indigenous tribes that work with it also follow specific dietary guidelines prior to ingestion. Not paying attention to diet or prescription medication prior to consuming ayahuasca or DMT can lead to the opposite of the intended effect, potentially even causing trauma or death.
So why the hell are people putting themselves through this ordeal?
Many claim profound mental effects, often experiencing a transformative occurrence that provides clarity and healing. Auditory and visual hallucinations are common, with reports of geometric shapes and sharp, bold colors. Many report intense out-of-body experiences, an altered sense of time and space or ego dissolution (“ego death”).
Studies have indicated long-term effects in people who use DMT. Some report a reduction in symptoms of depression or anxiety.
Subjects in an observational study showed significant reductions in stress after participating in an ayahuasca ceremony, with effects lasting through the 4-week follow-up period.
Subjects also showed improvements in convergent thinking that were still evident at the 4-week follow up. People who consume DMT generally chronicle improvements in their overall satisfaction of life, and claim they are more mindful and aware after the experience.
It’s important to note that dying from ayahuasca is rarely reported, but that doesn’t rule out the risk. It’s also illegal in the states, explaining why groups flock to Peru to visit licensed ayahuasca retreats or why technologists buy DMT on the dark web to avoid detection.
For those considering a DMT journey (and we don’t recommend it based on the illegal nature and health risks), it’s critical to gain a full understanding of the potential risks prior to consumption.
For more reading:
- A full (and long) history of DMT
- The documented effects of DMT
- What it’s like to take DMT (according to users)
This story was first published here in June, 2019.
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