Tracking Your E-Mail Marketing Campaigns

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One of the best features of an e-mail marketing service is tracking and reporting. When people are first introduced to e-mail marketing, they're thrilled to find that they can see who is (or isn't) opening their e-mails and what they’re clicking on.

But after experiencing the initial delight that comes with discovering this helpful tool, the next reaction can be one of confusion or disappointment. I’ve heard questions like, What's a good open rate? Why is it that only 40 percent of my list opens my e-mails? When I first started sending, I had a 60 percent open rate, and now it’s dropped to 37 percent. What happened?

First, you should know what your open rate is telling you. Basically, it's the percentage of your e-mail recipients who opened your e-mail (bounced addresses are taken out of the equation). The reporting feature of your e-mail marketing service tracks the number of unique opens, which means that no contacts are counted twice, no matter how many times they open the e-mail.

Open rates aren't an exact science; unique opens can be undercounted or overcounted. E-mails don't get counted when people view them with the images turned off or when they're read on a handheld device like a BlackBerry or Treo. Unique opens can be overcounted when someone views your e-mail in a preview pane (which sends back tracking information) but doesn't actually open the message.

So when you've got your percentage, how should you feel about your open rates? One place to start is by comparing them to industry standards. According to "MarketingSherpa’s E-mail Benchmark Guide 2006," the most common range for B2C open rates for 2004 and 2005 was 30 to 39 percent; the B2B range was 10 to 29 percent. Open rates also vary widely by business type. According to the "Harte-Hanks Postfuture Index for January-June 2006," restaurants had the highest open rates of any of the 13 business types considered during that period, while retail businesses had the lowest.

What does this mean for you? According to industry standards, if you have a 35 percent open rate, you're doing well. But don’t just judge your open rate against these statistics; judge it against your past performance. To examine your own results, map out your business’s open rate trend line. Over the past 12 months, when did you get the best open rates? Look at the e-mail communications you sent and ask, What did I do that made this successful? Then try that tactic again.

If your e-mail open rates aren’t where you'd like them to be--or you think you can do better--here are five easy things you can do to improve them:

1. Send more targeted e-mails. The better you know your contacts and their interests, the more you can target your e-mails and increase your open rates. Have you thought about how you can segment your list into interest groups? It’s worth the effort. Don’t you love it when you get an e-mail about something you're truly interested in? And aren't you far more likely to open it?
   
   
2. Improve your subject lines. A good subject line will always increase the chances of an e-mail getting opened. Lead with a benefit that lets the recipients know what’s in it for them. Make it interesting, and try to pique the readers' curiosity. You want them to feel compelled to find out more. Also, remember to avoid using all caps, exclamation points and words like “free” and “sale.”
   
   
3. Test your sending times. Try sending your message on a different day or at a different time of day to see if you achieve a higher open rate. We’ve seen customers improve their rates 15 to 20 percent by changing when they send. It has long been thought that Tuesdays and Wednesdays are the best days to send, but a report released by eROI in 2006 showed that open rates were higher on weekends--38 percent on Saturdays and 37 percent on Sundays--and Monday was the best weekday at 35.7 percent. Because open rates are different for every type of business, it’s important for you to figure out the best time to send to your contacts.
   
   
4. Check your “from” name. Is your “from” name easily recognizable? Will your contacts know who your e-mail is from? If they don't, they'll likely hit delete, so you need a name your receivers are familiar with in your “from” line. In most cases, this isn't your name (or the name of the person in your office who sends out your e-mails). Best practice would be to use your company’s name, though you could use another name if it would be easily recognized by your customers and make sense with your campaign.
   
   
5. Evaluate how often you send. You might send too often or you might not send often enough. Send too often and readers will stop opening; send too infrequently, they won't recognize your name. Consider asking your contacts how often they want to hear from you. You can do this by giving them the option to sign up for weekly or monthly e-mails.

By using e-mail marketing to connect with your customers or members, you have the benefit of knowing who's interested in what you're saying or selling. And every time someone opens your e-mail, you're planting a seed, reminding them, “I’m here when you need me.” With tracking and reporting, you can know how many seeds you're planting, and you can watch them as they grow.

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Gail F. Goodman is the"E-Mail Marketing" coach at Entrepreneur.com and is CEO ofConstant Contact, a web-based e-mail marketing service for small businesses. She's also a recognized small-business expert and speaker.

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BladeTape inventor eyes big leagues after lucky NHL product placement

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Every Vancouver Canucks hockey fan had sweaty palms Tuesday night when, in the dying moments of the Vancouver-Dallas playoff game, Vancouver defenceman Willie Mitchell swept the puck from his team's goal line, preserving a Canucks win.

Richard Findlay had reason to be more grateful than your average fan. In multiple replays from the camera tucked inside the net on CBC's Hockey Night in Canada, viewers saw repeated closeups of the product Findlay invented and Mitchell uses on his stick: BladeTape. Mitchell's dramatic product placement came just two nights after HNIC broadcasters Ron MacLean and Kelly Hrudey gave a between-periods demonstration of BladeTape for the CBC viewing audience.

"The phone is so busy I can't get out of the office," says Findlay, a landscape architect and recreational league hockey player, from his Kitsilano home office. Right on cue, the phone rang in the background.

BladeTape consists of two cross-hatched rubberized plastic strips that a player applies to either side of a hockey stick blade.

It is applied like a bumper sticker -- you peel away the paper backing and lay it over the blade, preferably at room temperature. Unlike conventional hockey tape, BladeTape does not cover the bottom of the stick, which lengthens the life of the product (on average, 15 games) and leads to less buildup of snow and ice.

It provides shock absorption, less drag on the ice and a better grip on the puck, the latter a problem with the new one-piece sticks made of composite-materials.

It retails for $9.99 a pair and can be found at Canadian Tire outlets, among other stores.

Findlay first came up with the idea a decade ago, and experimented with wrapping a bicycle inner tube, condom style, over his stick. The one-piece composite sticks weren't prominent then, so Findlay shelved the idea for nine years.

Then, in a rec-league game last spring, Findlay made a perfect breakaway pass to a teammate, but the puck bounced off his one-piece stick. Findlay went home, pulled out his old files and, with the encouragement of his wife, pursued the idea of making a product that would make these sticks less lively. Several prototypes later, he had BladeTape, but when he went to his patent agent he found out a Pennsylvania man had patented the same thing.

He contacted the American, a millionaire thermoplastics engineer who made surgical implants, who offered to sell him the patent and the business. By the end of July, Findlay had flown all the equipment north, and set up a manufacturing shop at the White Rock garage of Ted Ferguson, one of three business partners in the venture.

One of those partners is Anaheim Ducks general manager Brian Burke, whom Findlay bumped into in Vancouver. After a second meeting, Burke took a 10-per-cent interest in BladeTape, and worked on getting the National Hockey League to endorse the product.

In BladeTape's corporate structure, Findlay, 44, owns 68 per cent, production manager Ferguson and Toronto resident Scott McBride, an old high school friend of Findlay's, each have 11 per cent, and Burke has 10 per cent.

As a marketing ploy, Findlay went to local ice rinks and handed the product out to kids. Later, when he approached stores, he found out the kids had asked them to stock the product.

In its first six months of business, BladeTape has done more than $100,000 in sales. The plug on Hockey Night in Canada will surely cause that figure to rise.

In the NHL, Mitchell and Detroit Red Wings defenceman Danny Markov use BladeTape. Canucks forward Matt Cooke used it for about 15 games before changing his stick.

"With the pros, their hands are so good they don't need this product," says Findlay, who obviously hadn't seen many Philadelphia Flyers games. "They don't get the snow and ice buildup, because they get a [Zamboni] flood every 20 minutes.

"But for the recreational player, it gives you the feeling of hands without having good hands."

Findlay, who wants to devote his time to his landscaping business, harbours hope that one of the three big sporting goods companies -- Nike, Reebok or Easton -- will come to his aid.

"I'll ride out the storm, and see if next year at this time we've made some serious inroads," says Findlay.

- - -

www.vancouversun.com/digital.

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Filling a natural niche

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The smell of success, Chris Reed hopes, is the sharp, spicy aroma wafting through his Los Angeles microbrewery.

For now, it's just the smell of ginger.

Reed is founder and chief executive of Reed's Inc., which produces a line of natural sodas. And he's a fan — some might say a fanatic — of the pungent herb.

Each year, his company chops 1 million pounds of fresh ginger, enough to fill 28 big-rig trailers. In addition to sugared ginger candies and ice creams, he produces six ginger brews: Spiced Apple, Raspberry Ginger, Cherry Ginger, Original Ginger, Premium Ginger and Extra Ginger, the last of which packs 26 grams' worth of the stuff.

When Reed introduces his teenage daughter and son, he refers to them as "Ginger" and "Brew." Never mind that their names are really Kate and David.

"If you ask a Chinese herbalist for four or five herbs to take on an island, ginger would be one of them," said the gray-haired, 48-year-old Reed, who projects a New Age image with his black jeans, yellow-and-green company T-shirt and ponytail.

"It's a real general tonic on the body."

In a business dominated by Coke and Pepsi, healthful soda sounds like a contradiction. But unusual beverage companies such as Reed's are etching out a niche within the carbonated beverage industry, which sells about $28 billion worth of drinks annually to U.S. consumers, according to ACNielsen.

Sales of natural sodas and those sweetened using organic sugar and fructose hit $50.7 million in the 12 months that ended Jan. 27, up 11.3% from the previous year, according to Spins, an Illinois company that tracks sales of natural products.

Natural sodas aren't as popular as non-soda categories, including ready-to-drink teas and enhanced beverages such as energy drinks, which are growing at least four times faster, said David Browne, a natural-products expert and a former vice president at Spins.

But there is a future for these natural products, often sold as "premium" or "gourmet," particularly in light of overall flat sales of carbonated beverages. Drink makers are rolling out all sorts of new products to counter the trend.

"There's a lot of fabrication in this market," Browne said. "That's why companies like Reed's and such are doing well. They still have that premium niche; they still have some growth."

Natural sodas saw 36.5% sales growth in conventional food stores and 12.4% in natural food stores during the last year, Browne said.

"Consumers are becoming so much more aware of what kind of sugar they are consuming," said Browne, noting the prevalence of obesity and diabetes. "They are reading nutrition labels more carefully."

Reed's Inc. competes against much larger companies by catering to health-conscious shoppers. The 18-year-old company calls its drinks "quality of life" beverages that are free of artificial flavorings, colorings and processed ingredients.

The sodas are concocted by brewing and aging fresh fruits, herbs and spices in stainless steel vats. Some ingredients, such as the ginger, are shipped to Los Angeles and Pennsylvania breweries from growers in Hawaii, Brazil and China.

The company's brews are drawn from 19th century home-kitchen recipes, and borrow from some perfected in the Caribbean and England. Reed's research also led him to a 1780 White House cookbook, which influenced his cream soda and root beer.

Reed first created his drinks during the 1980s in his kitchen in Venice, cutting ginger by hand, stirring vats with "a big canoe paddle" and pasting labels on bottles with a glue stick.

At first, the business was just a safety net for the engineer from Queens, N.Y., who in 1985 gave up designing oil refineries and headed West with his guitar. But when that safety net started catching customers, he launched Vital Foods Co., which was later christened Reed's Inc.

Now, the company has 32 employees and produces 25 million drinks a year. Its products are sold in 7,000 stores in the U.S. and Canada, including Trader Joe's, Whole Foods and Ralphs.
Last year, in hopes of going mainstream, the company sold 2 million shares of stock at $4 each, promoting its public offering to its customers by slinging tags around the necks of soda bottles.

"We did it like Ben & Jerry's," Reed said, referring to the Vermont ice cream maker, which also used its products to peddle shares to customers.

Sales grew 32% in 2004 to $9 million, according to the company's prospectus, and Reed estimated that sales last year hit $10 million.

But the company has been losing money, which Reed attributes to the growing pains of going public. The company posted net losses of more than $800,000 in 2005 and $1.4 million in the nine months that ended Sept. 30. Reed's auditors said in financial statements that losses and a working capital deficiency "raise substantial doubt about the company's ability to continue as a going concern."

Reed's also has been hurt by rising fuel costs, among other things.

In January, Reed's settled a $2.6-million lawsuit filed by Consac Industries Inc., which accused Reed's of negligence in manufacturing Prism Green Tea Soda for Consac. Reed's, which contended that Consac supplied a defective formula, paid $300,000 to settle the suit.

"Going into court, it was just going to get messier, so we just settled," Reed said. The suit also included allegations of an injury, which Reed said occurred when "the bottles became over-carbonated and they exploded."

The suit was an important lesson in Business 101, Reed said, because it taught him the necessity of insurance and contracts to limit liability, neither of which the company had at the time.

Despite the setbacks, Reed said he hoped the company would see 8% to 10% growth in profit in a couple of years, particularly with new sodas in the works, including a diet brew and a natural energy drink.

Still, what lies between Reed's and success are risks.

Among them are its history of operating losses, a highly competitive beverage business, dependence on brand recognition and price fluctuation of its raw materials. In addition, Reed, who makes $150,000 annually and also serves as the company's chief financial officer, has no formal financial training.

But Reed, who noted that he works with outside financial consultants, said the bubbly beverage company would rise above those risks with the help of health-minded drinkers.

"People are looking toward longer living, quality of life and better products," Reed said. "And we're the direction they're going to go."

---

ashley.surdin@latimes.com
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To People Who Want Your Own Business – But Don’t Know Where To Start

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Being your own boss is a dream that hundreds of thousands of people aspire to every year. But out of the many people that start a business each year, approximately eighty percent fail. But, that also means that twenty percent of the dreamers build a successful business. Whether you want to open a family business, or you intend to build a chain of stores, there are some common elements that are necessary for success.

A Business Plan is necessary for every business no matter how large or small. This plan should include such things as a description of your business and your plan for its future success. Operating without a business plan would be like starting on a vacation without knowing where you were going. You would make it somewhere, but it might not be where you wanted.

A good business plan is written as a guide for your business. List what your objectives are; are your business objectives only to make a profit, or are you interested in long term expansion. These are questions to ponder.

Your business plan should include a marketing plan. How will your customers know that you are there? What types of advertising are best for your business? Advertising rates can vary widely depending on which media you choose to use. Newspaper advertising may be successful for one promotion, but not for others. One business owner that I know created a very expensive radio advertising campaign during a basketball tournament to advertise a clothing store and did not do very well with the promotion. Other times, I have known radio campaigns that did very well. The best way to “get the word out” will vary from location to location.

Be realistic. Your competition is a major factor to think about when considering opening a business. Perhaps there are too many stores that sell the same items that you want to sell. Visit the businesses that are going to be your competition; or have others visit them and report back to you. You may learn a lot from what others are doing. You may also learn what things they are doing well and what things that you can improve. Every person has been in a business and after leaving thought about things they would do if the business were theirs.

Opening Capital. How much money you will need to get started is something that is often under estimated. I would suggest that you estimate everything that you can think of that is necessary and at least double it. It may not take that much, but I have found that it is better to be over capitalized, than to be under funded. And, you will always have expenses that you forgot.

Finally, find out what your potential customers want. The adage “If you build it, they will come,” is not necessarily true. If you are selling something that customers in that area don’t need or want, the likelihood of success is minimal. Having a clothing store that specializes in men’s suits would not seem to be a good idea in a rural farm area. However, having a clothing store that sold jeans and overalls might do very well in that area. Ask yourself questions. If you do not purchase items very often that you are considering selling, chances are that your potential customers will not either.

Do your homework. Opening a business is hard work and taking shortcuts on your research will only hurt you in the long run.

And Do Not Give Up. There will be plenty of difficult times in the beginning. But if you persevere, perhaps you will be one of the twenty percent of the businesses that succeed and prosper. It will feel good to be your own boss and you will decide that it was well worth the headaches.

Article Source: http://www.articlecube.com

Paul Taylor is a business owner that helps other business owners and entrepreneurs locate wholesale distributors and dropshippers. Visit his website www.WholesaleMap.com" target="_blank">www.WholesaleMap.com for information about wholesale sources or opening a business.

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A very important topic to talk about is how to organize your time when working on your blog or web site. Many readers ask me how I structure my day and it has taken me a couple of months to get to a point where I can function at my peak levels. I will share a few suggestions with you that can really help you be more productive.

Keep A To-Do List.

Each day when you wake up, write down the top 5-10 things you have to accomplish that day. It is best to not do any other web based activities until you can cross off each item on your list because it is too easy to get caught up reading other blogs and forums before getting your own work done. Before you know it, you have spent 3 hours reading and getting none of your work done. If you did not finish an item from your list, carry it over to the next day.

Assign A Certain Amount Of Time For Important Items.

Tell yourself the first thing you will do each morning is check and respond to email for 30 minutes. I know some people think email should not be the first thing you do in the morning, but I prefer to get it out of the way first. You also never know who sent you a pressing item that can help you monetize your site. If you read an email but do not respond immediately, mark it “un-read” so you do not forget that you have to respond later.

Figure Out What You Like Least And Make Yourself Spend Time Doing It.

Sometimes I struggle to write ReviewMe posts and the only way I can get myself to do it is if I sit down and tell myself that for the next 2-3 hours, the only thing I will do is research and review the web site. I force myself to write a review and I go back and proof read it later. Whatever your weak points are, be sure to take the time to do them anyways. They could be valuable to your readers and your blog’s value.

Do Not Check Stats More Than Twice Per Day.

This is a big one. So many people waiste time hitting refresh on their visitor stats and affiliate sales all day. I used to do the same, only to realize that my productivity is so much better now that I only check stats once in the morning and once in the evening. There is nothing you can do to increase your statistics that much by hitting refresh every 10 minutes that you cannot do by checking stats in the beginning and end of the day. Try this for a few days and you will be happy you did.

[Via JohnChow.com] 

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Sewing success

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In this bleak economy, here's an option that allows you to work at home and do something you love. If you have sewing expertise, a cooperative family, a space for equipment, and a large dose of self-discipline, consider sewing for profit!

Marianne Balogh, 48, of Troy has enjoyed her home-based business for the past 18 years. She offers custom work and alterations, and began teaching classes.

What motivated you to get started in this field?

When my children were young, I wanted to stay home with them, but make some money to supplement my husband's income.

What were your qualifications?

I had a background in sewing, from middle school on. I learned about fitting and tailoring, and continued taking classes to update and perfect techniques. I also felt I could work with people, and count on repeat business.

What other traits are necessary?

Besides skills, one needs to be motivated, to learn to avoid distractions, to have a realistic sense of time and energy to devote to the business (especially in meeting deadlines), and some start-up money (but less than most other kinds of work).

Is that because space and equipment are minimal?

You do need space to dedicate to the sewing, where projects can be left out. The biggest expense is a good quality sewing machine which can be a few thousand dollars (or use the one you already have if it's in good condition). You also need a serger (for professional finishing,) pressing equipment, work tables and supplies. Be sure you have good lighting, too.

Can you really make enough money to justify the hard work and time?

Everyone has different goals and ambitions and strengths. Sewing couture bridal or custom home dec, for example, would bring in more than alterations, for which you charge less but do a higher volume. My advice is to choose whatever specialty you love and are good at. You may have to test the waters at first, and evolve as your reputation grows.

How do you get started establishing and growing your business?

I chose the name Style by Marianne and had cards printed. To get the word out, I gave them to neighbors, church members, kids' friends, etc. I let the public know I had a service to offer, and gradually my business grew by word of mouth.

What about pricing and paperwork?

Call local shops for an idea of their charges. I have price lists for various alterations, and try to pay myself about $20 per hour for the custom work. I give job estimates, maintaining a quality image but staying fair to the client. Place realistic values on your time and skills. The record keeping is my least favorite part of the job, but it's important to keep all receipts, have a separate bank account and credit card for business, and pay income taxes.

"In general," Marianne says, "what goes around, comes around, and if you are truthful, fair, and talented in your work, you can make it succeed." Reach her at mbalogh@wideopenwest.com.

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If starting a business were easy, everyone would do it. But they don’t. Only those of you who know deep down inside you're entrepreneurs at heart will ever take these steps--even if you’ve denied that entrepreneurial spirit burning inside you for a long time.

Using that burning desire to grow your business, however, is a far different task from simply lighting it. Most people start with the odds stacked so much against them that it’s difficult for them to fan the fire beyond the first few months or years. Here are a few pieces of advice I can offer to help you keep your new business growing in size and profit:

1. Hire people who are better at the job than you are. It’s a fact that companies are built by people, and the best people build the best and most profitable companies. Put simply, great employees may cost you 20 to 30 percent more in wages, but they can be twice as productive as mediocre employees. Invest in good people.

2. Place high urgency in everything you do. Always do everything you can today. When I started each of my businesses, I'd work constantly until I just had to go eat and sleep. Too many people treat their businesses as nine-to-five jobs. Never put something off until tomorrow if you can do it right now.

3. Get customers coming back. The road to profitability is through repeat business. Too few business owners set themselves up for long-term success. Your business grows when you add regular new customers on top of existing regular customers. Think of it this way: What if every customer you ever got stayed for life? How many regular buyers would you have?

4. Make decisions quickly. New companies don’t have the time or resources to stand still. General H. Norman Schwarzkopf once said to me, “When placed in command, take charge.” He also believes it’s better to make a decision and move than it is to stand still.

5. Deliver more than you promise. If you tell a customer it'll be three days, deliver in two. If you think it'll be two hours, say three hours and surprise them. This is the best form of marketing ever.

6. Price yourself for profit. Don’t ever be the cheapest. You're the little guy; you don’t have economies of scale. Big companies can make up in volume what they lack in margin. You can’t.

7. Never spend a dollar you don’t have to. You don’t need a new desk, you need a cheap desk. Too many new business owners go and buy the best stuff because they think image is important. Listen, when you get profitable, you can have a big mahogany desk. Right now, just get a desk.

8. Set a big vision.Start Small, Finish Big should be the title of your book. Don’t aim to be the best dog trainer in Montana--aim to be the best in the country. Remember, building a business is a 10-year plan, not a one-year plan.

9. Marketing is math. Don’t ever let an advertising sales rep teach you anything about marketing. Reps will say dumb things like, “Half your advertising works and half doesn’t--and you’ll never know which half.” Rubbish. If an ad that costs $100 makes you $100 back in profit, it’s a good ad. One other tip: Image advertising doesn’t make sense when you're not yet profitable.

10. Learn to sell. There's nothing worse than a business owner who isn’t willing to sell--or even learn to sell. No company makes money unless someone sells something, and you can’t just rely on people you hire to do the selling for you. If you want to grow a profitable business, you’ve got to learn sales yourself.

11. It’s simpler than you think. Before most people even go into business, they work it up to be far more complex than it really is. Business is very simple: Sell at a profit and keep at it. Overcomplicating the process won’t help anyone. If your business seems too complex, it probably is--so make it simple and watch yourself succeed.

Remember, you have a lot to learn--and that’s a good thing. You'll make mistakes. Just try to make them small ones at the start. Never bet the ranch on one deal.

---

Brad Sugars is Entrepreneur.com’s Startup Basics columnist and the founder of Action International, a business coaching franchise.

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Forget about customer relationship management software, customer loyalty programs and cards. Customer loyalty can't be bought. It must be earned. Learn the 8 ways your small business can earn customer loyalty.

There is no shortage of lip service in corporate America these days about customer loyalty. The advent of the loyalty movement began in the 80's in the airline industry and expanded to cover every major industry. Research firm Gartner estimates American businesses spent more than 1 billion dollars on loyalty programs in the year 2003. Over 75% of consumers have at least one loyalty card, according to Jupiter Research. My wallet alone has 12 loyalty cards. But does it pay?

Does Customer Loyalty Pay?

A mere 5 % increase in customer retention can result in a 75% increase in customer value according to Fred Reichheld, author of "Loyalty Rules".

A great reason to pay attention to loyalty. Here are more benefits:

grab more sales from existing customer base

help spread word of mouth marketing

identify product/service problems earlier

improve profitability

provide a competitive advantage

Defining Customer Loyalty

Customer loyalty is the practice of finding, attracting, and retaining your customers who regularly purchase from you. Customer loyalty is not customer satisfaction. Customer satisfaction is the basic entry point of good business practices. Your small business should provide satisfaction to all your customers.

Loyalty cards and programs have their rewards and pitfalls. Rewarding customers for spending more dollars can create a vicious cycle of creating customers who want rewards and will look anywhere to obtain them. With loyalty cards and programs reaching a saturation point, how can a small business stand out?

Software, card programs, and loyalty schemes are the tools of customer loyalty programs but they aren't the essence of loyalty. To build loyalty, you must earn it. Look at these 8 ways to earn more customer loyalty for your small business:

8 Ways for Small Business to Earn Customer Loyalty

Company Loyalty First: Customer loyalty is a 2-way street. How can you expect customer loyalty if you don't practice company loyalty? Are you loyal to your best customers or are you giving discounts and extra attention to new customers? Loyalty is about being fanatical with devotion to your best customers.

Earning Customer Loyalty

Employee Loyalty Second: Any customer loyalty program must factor in the front line of the business. It's the point of contact between customer and employee that sets the foundation of repeat business. "Hire for attitude, train for skill. Hire nice people. As a customer, I'm always amazed when small businesses put unfriendly, surly people in front of their customers. Loyalty is often the direct result of the relationships your employees build and maintain," says Ben McConnell of marketing consulting firm Wabash & Lake and co-author of "Creating Customer Evangelists."

Quench the Thirst: Consumers are thirsty for trust following corporate scandals and the general distrust of corporations. If your small business is not trustworthy, your odds of establishing customer loyalty are diminished.

Establish good business ethics and practices.

Finding Loyalty: Any small business wishing to start a customer loyalty initiative needs first to identify important customers and understand their customer's behaviors. Use whatever tools, software, and data-mining techniques to locate your repeat, regular customers. Equally vital is to know your profit margins. Don't offer discounts until you know the impact on your bottom line.

Reward Customer Retention: The key metric to track in your customer loyalty program is customer retention. How many customers are defecting? How many clients are retained? Measuring customer retention is half the battle. Your staff must be rewarded for retention. Your small business doesn't have to be like big corporations who talk retention but reward sales people for bringing in new customers only.

Use Customer-centric Language: It's easy to think you put the customer first. However, take a closer look at your marketing communications. How many times does your literature refer to "we" the company versus "you" the customer? Go back and speak from the customer's perspective.

Bolster Customer Communications: Part of customer loyalty and retention are maintaining regular contact with your most profitable customers. Communication to your best customers should take the form of showing your appreciation and providing new learning experiences to add value to your customer's life. Send special thank-you notes, surprise gifts, and regular communications such as newsletters to connect with them.

Use the Small Business Advantage: Small business will always have the advantage in connecting with customers and building a solid relationship. Your passion for helping customers with your products and services is difficult for large companies to replicate. As customer evangelist guru Ben McConnell states, "Small businesses thrive on outstanding customer loyalty. It's their currency of growth and their best differentiator. Without loyalty, small businesses are destined to compete on a playing field with larger competitors where they are outnumbered and outwitted."

Win the customer service game by putting customer loyalty to work in your small business. Just remember, it's more than cards and software. It's more about earning trust and relationship building.

[via about.com]

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