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.
Why a well-crafted rejection email can save your brand, and your time
(BUSINESS NEWS) Job hunting is exhausting on both sides, and rejection sucks, but crafting a genuine, helpful rejection email can help ease the process for everyone.
Nobody likes to hear “no” for an answer when applying for jobs. But even fewer people like to be left in the dark, wondering what happened.
On the employer side, taking on a new hire is a time-consuming process. And like a box of chocolates, you never know what you’re going to get when you put out ads for a position. So once you find the right person for the role, it’s tempting to move along without further ado.
Benn Rosales, the CEO and co-founder of American Genius, offers an example of why that is a very bad call.
Imagine a hypothetical candidate for a job opening at Coca Cola – someone who’s particularly interested in the job, because they grew up as a big Coke fan. If they get no response to their application at all, despite being qualified and sending follow-up emails, their personal opinion of the brand is sure to sour.
“Do you know how much effort and dollars advertising and marketing spent to make [them] a fan over all of those years, and this is how it ends?” Rosales explains. This person has come away from their experience thinking “Bleep you, I’ll have tea.”
To avoid this issue, crafting a warm and helpful rejection email is the perfect place to start. If you need inspiration, the hiring consultants at Dover recently compiled a list of 36 top-quality rejection emails, taken from companies that know how to say “no” gracefully: Apple, Facebook, Google, NPR, and more.
Here’s a few takeaways from that list to keep in mind when constructing a rejection email of your own…
Include details about their resume to show they were duly considered. This shows candidates that their time, interests, and experience are all valued, particularly with candidates who came close to making the cut or have a lot of future promise.
Keep their information on file, and let them know this rejection only means “not right now.” That way, next time you need to make a hire, you will have a handy list of people to call who you know have an interest in working for you and relevant skills.
Provide some feedback, such as common reasons why applicants may not succeed in your particular application process.
And be nice! A lack of courtesy can ruin a person’s impression of your brand, whether they are a customer or not. Keep in mind, that impression can be blasted on social media as well. If your rejections are alienating, you’re sabotaging your business.
Any good business owner knows how much the details matter.
Incorporating an empathetic rejection process is an often-overlooked opportunity to humanize your business and build a positive relationship with your community, particularly when impersonal online applications have become the norm.
And if nothing else, this simple courtesy will prevent your inbox from filling up with circle-backs and follow-up emails once you’ve made your decision.
Are Gen Z more fickle in their shopping, or do brands just need to keep up?
(BUSINESS NEWS) As the world keep changing, brands and businesses have to change along with it. Some say Gen Z is fickle, but others say it is the nature of change.
We all know that if you stop adapting to the world around you, you’re going to be left behind. A recently published article decided to point out that the “fickle” Gen Z generation are liable to leave a poor digitally run site and never return. Now of course we’ve got some statistics here… They did do some kind of due diligence.
This generation, whose life has been online from almost day one, puts high stakes on their experiences online. It is how they interact with the world. It’s keyed into their self-worth and their livelihoods, for some. You want to sell online, get your shit together.
They have little to no tolerance for anything untoward. 80% of Gen Zers reported that they are willing to try new brands since the pandemic. Brand loyalty, based on in-person interaction, is almost a thing of the past. When brands are moved from around the world at the touch of your fingertips there’s nothing to stop you. If a company screws up an order, or doesn’t get back to you? Why should you stick with them? When it comes to these issues, 38% of Gen Zers say they only give a brand 1 second chance to fix things. Three-quarters of the surveyed responded saying that they’ll gladly find another retailer if the store is just out of stock.
This study goes even further though and discusses not just those interactions but also the platforms themselves. If a website isn’t easy to navigate, why should I use it? Why should I spend my time when I can flit to another and get exactly what I need instead of getting frustrated? There isn’t a single company in the world that shouldn’t take their webpage development seriously. It’s the new face of their company and brand. How they show that face is what will determine if they are a Rembrandt or a toddlers noodle art.
The new age of online shopping has been blasted into the atmosphere by the pandemic. Online shopping has boosted far and above expected numbers for obvious reasons. When the majority of your populace is told to stay home. What else are they going to do? Brands that have been around for decades have gone out of business because they didn’t change to an online format either. Keep moving forward.
Now as a side note here, as someone who falls only just outside the Gen Z zone the articles description of fickle is pompous. The stories I’ve heard of baby boomers getting waiters fired, or boycotting stores because of a certain shopkeeper are just as fickle and pointed. Nothing has changed in the people, just how they interact with the world. Trying to single out a single generation based on how the world has changed is a shallow view of the world.
Chasing Clubhouse success? How the audio chat room trend affects products
(BUSINESS NEWS) It is inevitable that when a new successful trend comes along, other companies will try to make lightning strike twice. Will the audio chat room catch on?
Businesses are always about the hot new thing. People are the always looking for the easiest dollar with the least amount of effort these days. It tends to lead to products that are shoddy and horribly maintained with the least amount of flexibility in pleasing their customers. However, you also have to look at the customer base for this as well. You follow where the money is because that’s where its being spent. It’s like a merry-go-round, constantly chasing the next thing. And the latest of these is the audio chat room.
During the pandemic the entire world saw an eruption of social audio investments. Silicon Valley has gone crazy with this new endeavor. On the 18th of April this year, Clubhouse said it closed on some new funding, which was valued at $4 billion for a live audio app. This thing is still in beta without a single penny of revenue!
The list of other companies who have pursued new audio suites (either through purchase or creation) include:
This whole new audio fad is still in its infancy. These social media and tech giants are all jumping headlong into it with who knows how much forethought. A number of them have their own issues to deal with, but they’ve put things aside to try and grab these audio chat room coattails that are running by. It’s a mix of feelings about the situation honestly. They are trying to survive and keep their customers.
If a competitor creates this new capability and they stay stagnant then they lose customers. If they do this however without dealing with their current issues then they could also lose people. It’s an interesting catch 22 for people out there. Which group do you fall in? Are you antsy for a new toy or are you waiting for one of these lovely sites to fix a problem? It’s another day in capitalism.
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