Business Coaching

Does your business have a reputation for poor quality or service?

What can you do to change that perception?

There aren’t many businesses that haven’t had to deal with concerns like these, but if you let people know you understand their concerns by speaking the truth, guarantee your customer’s satisfaction and take steps to make necessary changes, your business can actually grow and become stronger.

Just look at Domino’s Pizza.

Domino’s knew it had a major issue with perceptions of quality and service, and faced it head on. Interestingly, this strategy has paid huge dividends for the ubiquitous pizza maker, who has seen its stock price rise 233% since the company began its “brutally honest” campaign in 2009.

In addition to their marketing campaign, Domino’s improved the ease and convenience of their website, even adding a “Pizza Tracker” so people know each step of the process as their pizza is delivered.

Not only has this improved the perception of the company with its customers, but it has also grown their business. Today, more than 25% of Domino’s business is done online.

What is the primary issue facing your business?

For Domino’s the problem was the quality of their product. Years ago, Domino’s delivered one very famous guarantee; getting your pizza within 30 minutes. But speed wasn’t the problem, quality was.

To turn this around, Domino’s faced the reality that people thought it’s pizza wasn’t very good. It was fast, easy and convenient, but tasted bad to most people.

Of course, just a marketing campaign alone couldn’t have changed people’s perceptions, so Domino’s improved the quality of their ingredients before letting people know about the improvement through its latest marketing campaign.

So if your business has a bad reputation, don’t avoid it and hope it will go away. Be proactive like Domino’s and face those challenges head-on. Guarantee that whatever issues plaguing your business will be dealt with and your customers will be happy. But, most importantly, your bottom line will grow.

What is the one thing your company does that others in your category don’t do? Is it a method of delivery?

Is it customer service?

Or is it something else that uniquely defines your business, a unique way you manufacture your product, or an interesting geographic location?

Whatever it is, identify it, define and it and start using it to differentiate yourself in the market place.

Don’t think that a “commodity” product can have a USP? Just go online and look at how the grass seed company Scotts markets its “Turf Builder” line of grass seed.

Don’t know if a “small” company can define itself against a larger competitor? Pick up a copy of the book about the US-based company, In-N-Out Burger, which beats McDonald’s in terms of overall profitability and same-store sales, with fewer stores and less menu items.

Wonder if you can profit in your small niche? Take a look at Porsche, which targets a select few customers at a very high product performance level and price point, and in turn, is one of the most profitable car makers around.

Next, offer a guarantee.

While every business is required to make good on its products or services, add some extra value to your guarantee, and make it part of your overall customer experience.

For years, top-tier retailers have all had generous guarantee and return policies, and those policies have only strengthened customer loyalty to their stores.

Can you make your guarantee stand out? Can it become the industry standard?

If so, start telling your customers and your prospects and start making it a distinction you can sell in the marketplace.

And don’t worry about getting ripped-off with a strong guarantee. Sure, some will take advantage. But in the end, your reputation and additional sales will more than make up for the single digit percentages that look to scam you or take advantage of your policies.

Once you do these two things, not only will your marketing efforts start to generate real results, you’ll be able to compete on everything other than price.

You’ll also find once you and your customers get price out of the way, you’ll be a lot more creative in your added value propositions, your marketing and your customer service. You’ll also have much bigger numbers on your bottom-line.

Thanks to social media, the rules of marketing have changed. Every celebrity, athlete, political figure, and business is using social media to their advantage (and sometimes to their disadvantage). Yes, used incorrectly, it can burn you, but it is a potential goldmine, so if your business isn’t using it, what are you waiting for?

You may have a profile setup for your business on Facebook, but are you using real time social media like Twitter? Twitter can be a powerful ally for your business, so here are some rules you can use to get the most out of your Twitter account.

1.    Determine your goals
You can’t start without the end in mind, so you need to figure out what you want to get out of using Twitter. Some companies are using it to sell products or as a customer service tool. Some use it as a lead generator. Like anything else you do in your business, you need to make a plan with benchmarks so you can test and measure your success. Your goals should be based on what type of business you have and what type of customers you want to attract.

2.    Do you research
Research is one key to finding out what the trends are in the world of Twitter. Research what the major brands and your compactors are doing and then mimic with a twist by adding your own personal touch to your tweets.

Also, research to find what your specific customer wants to see. If you work in a retail shop ask customers directly what they want to see from your brand. Don’t assume you already know, go straight to the point-of-contact and get the real information.

3.    Personalize your profile
Each business is unique and so the face of your Twitter should be as well. You should have a specific look to fit your brand that will leave an impression on your customers. If the look and feel matches your tweets it gives your customer a more personal touch, creating a connection between your business and them.

This means that the point of your profile shouldn’t be to simply push promotional material. If your customer feels like you are a robot then they will reject you and the brand, so keep it fun and informative.

4.    Follow your followers
Twitter is different than other social media in that, to get followers you must follow. Follow the people you would want to follow your brand. Then and only then can your brand go viral.

So are you using Twitter in your business and what are you doing with it?

Why do your customers buy from you?

If you don’t know the answer to that question, you may one day lose them, as has happened recently with Netflix.

A big reason Netflix was able to grow as quickly as they did was the low cost of their product and the convenience of both purchase and payment. For less than $10 per month, customers got unlimited streaming video or DVDs. It was such a great value that Netflix became an industry leader and its stock grew exponentially, topping out at nearly $300 per share in mid-July.

The company had found a terrific niche. They were affordable and convenient and for one low price you could get both DVDs and streaming video. But then the company changed its pricing structure and things changed radically for the worse.

So what did Netflix miss? Why were their customers so willing to cancel their memberships?

If there’s one thing that Netflix clearly didn’t understand, it was why customers bought from it. They didn’t understand the need they filled and overestimated customer loyalty in a very crowded industry.

It’s important to remember that Netflix’ product range isn’t ideal. While their library is extensive, there are limitations but even with those limitations, at a low price and one monthly bill, it was a service that most could justify. You may not be able to see every movie or television show you want, but the ones you could see for the convenience was worth it.

But once prices were raised and there were two services, one for DVDs and a separate one for streaming videos, to be paid individually, customers balked because that convenience and ease of purchase was gone.

By not understanding why their customers bought from them they sent themselves into a downward spiral that has frustrated investors and put the company on a path from which it may not be able to recover.

Shares started the year around $180 and rallied in the spring thanks to a growing subscriber base, reaching that peak of nearly $300 per share in July. As of the last week of October, shares were trading near $78 and their U.S. customer base is shrinking to 23.8 million total U.S. subscribers as of Sept. 30, down from 24.6 million three months earlier.

By the end of the last quarter of 2011, Netflix expects to lose even more subscribers, estimating that it will have 20 million to 21.5 million streaming customers.

It’s clear from what has happened that Netflix didn’t understand why its customers used its service and they moved too quickly to change, which turned off a large portion of its base.

Netflix has learned this the hard way, but how can we learn from its mistake?

You have to truly understand why your customers buy from you. Is it convenience, is it price or is it the value they get just from buying from your business? What need does your business fill?

If you aren’t sure, ask. And most importantly, if you already know why they buy from you, be sure not to antagonize your customers by taking it away from them.

The first Business Excellence Forum was such a success, that we decided to do it again. In fact we’ve decided to do it three more times this year alone.

In 2012, ActionCOACH will sponsor three Business Excellence Forums. The first will be for businesses and entrepreneurs in the Americas and will take place in Memphis, Tennessee on January 13 and 14, 2012.

The next week, January 20 and 21, the EMEA (Europe/Middle East/Africa) Business Excellence Forum will take place at Wokefield Park, Berkshire in the United Kingdome and the third and last 2012 Business Excellence Forum will take place on the Gold Coast in Australia on February 17 and 18.

Each event is tailored for their particular region and will feature a number of outstanding speakers with expertise in the world of small business, along with networking events, workshops seminars and breakout sessions.

And of course, each forum will conclude with its own Business Excellence Awards, designed to recognize the “Best of the Best” in the world of small business from that region.

The Business Excellence Awards serve as an exciting conclusion to the 2-day Business Excellence Forum, and are meant to honor those business owners and their companies who have taken their results to “the next level” of success.

The Business Excellence awards will be given in 16 categories, so click on the link to find out which category you should enter your business in and register today.

Registering for the Awards is free and takes just a few minutes and if you are a finalist or award-winner, you will be able to promote your business extensively, both in your region of the globe and around the world, as the winner of one of the most prestigious awards in the small business industry.

These events are right around the corner, and there isn’t a lot of time to register, so don’t wait another minute. Sign up for the Business Excellence Forum and don’t forget to register your company in one of 18 categories for the Business Excellence Awards today.

What is the purpose of advertising?

If you are to believe the advertising agencies, advertising is an art. Their goal is to make something interesting and make an impression on the audience.

But, for a business, the goal is sales. You might make a big impression, but if that impression doesn’t help the bottom line, what’s the point?

This principle is on display in Burger King’s advertising.

After going with “The King” based campaign that was weird and, at times, a bit freaky, Burger King has decided to go back to the basics and promote the freshness and quality of their food.

In today’s health conscious landscape the new campaign seems like a good idea and the company is already seeing some benefits.

BrandIndex measures brands using its Impression score, by asking people if they have generally positive feelings about a particular brand. BrandIndex’s scores range from -100 to 100, and are calculated by subtracting negative feedback from positive feedback.

Before the launch of Burger King’s new campaign in late August, Burger King’s Impression score was 24.4, or less than half McDonald’s’ 48.9.

Burger King’s score began jumping soon after the first spot’s debut, and by the end of August had reached 45.1, actually catapulting McDonald’s.

As of Sept. 9, Burger King still retained its edge, with a rating of 38.8 compared to 35.9 for McDonald’s.

This highlights the divide between what advertisers want to do and what businesses need to do.

Burger King’s “The King” campaign was edgy, at times funny and at times just plain weird. But what did it tell people about the product?

Nothing.

It created an impression, but hurt the company’s image with adults and others that don’t care about slick advertising, but do care about quality.

So when it comes time for you to advertise your business, what’s more important, flash or sales?

The answer is obvious so don’t try to be flashy or cutting edge. Just tell people what you do and why it’s better than the competition.

For Burger King, that’s letting people know they sell a quality product, a much more effective offer than some constantly smiling, nightmarish mascot.

From the car wash to the grocery store, you barely have to talk to a person to buy a product or service these days.

But one supermarket chain has decided it’s time to buck the trend of automated, self-serve checkout lines and get back to good, old-fashioned customer service.

Big Y, which is celebrating its 75th year in business in 2011, has decided to remove self- serve checkout from all of its 61 stores in Connecticut and Massachusetts.

“Our self checkout technology could not deliver on the service needs of our customers,” Big Y Vice President for Information Resources and Technology, Michael A. Tami said. “We were not able to provide the exceptional customer service through them that has made Big Y what it is today. While other chains are opting to replace cashiers with more self checkouts, we are adding cashiers to service more standard lanes.”

Self-serve checkout originated in the supermarket industry as a response to long lines at major supermarkets. But research has shown that self- serve checkout lanes often take customers more time than the standard, employee-staffed lanes and lack the customer service that many customers have come to expect.

And Big Y isn’t alone. Albertson’s, a major supermarket on the West Coast of the United States is also removing self checkouts.

This story highlights something that the Business Coaches at ActionCOACH have been preaching for years: don’t be afraid to change.

Big Y must have felt they were on the cutting edge and stepping into the modern age when they installed self checkout in 2003, but when they realized they weren’t getting the return on their investment, they decided it was time to cut their losses and get back to what they knew best: customer service.

So can your business make a change, discover it was the wrong move and have the flexibility to go back the old way or find a better way? Are you a flexible enough leader to make those changes when necessary?

Are you the leader of your business or just a business owner who is really a glorified manager?

You may ask, what’s the difference?

Managers should concentrate on the technical side of any business, directing people, making sure tasks are completed on time and deadlines are met.

The role of a leader is very different.

A leader isn’t a technician.

Instead, a leader is a generalist who needs to be able to see the entire business for what it is.

It’s important that a leader isn’t focused on day to day tasks because a leader is responsible for the overall health of the company and it’s very difficult to concentrate on a company’s long term health when you are dealing with its day to day activities.

The leader’s role is to understand what can help the company grow and delegate those responsibilities to others, including managers who are tasked with getting things done.

If the leader’s role comes down too far on the side of a technician, the business will suffer because no one is focused on the company’s long-term viability.

In this situation, the business’ growth and long-term prosperity are neglected.

That’s why owners of small and medium sized businesses have to stop thinking like managers and start thinking like leaders.

This change in mindset doesn’t come easy.

The owner that manages the day to day activities of the business has to make some changes to what they do and how they think about their role in the business, including hiring someone to look over the everyday activities of the business.

In other words, these business owners have to learn to let go and trust someone else to run the technical side of the business, so they can concentrate on the bigger picture and build the business they’ve always dreamed of.

Every day in 39 countries around the world, ActionCOACH Business Coaches work with small and medium sized business owners. The impact these coaches make is massive and can often be the difference between a company surviving and thriving and a company closing its doors for good.

While independent studies and testimonials make it clear the impact that ActionCOACH has, winning an award that thousands of people voted on is another reminder of the good work ActionCOACH Business Coaches do every day, with both small and medium sized businesses and their communities.

The latest honor for ActionCOACH, the leader in the Business Coaching industry, is this year’s People’s Choice Stevie Award for Favorite Company in the Business Services category.

While every award is important, this award is particularly significant because it is earned by public voting.

More than 35,000 votes were cast from July 28 through September 9 and ActionCOACH was the clear winner in the Business Services category, with the award to be given on October 11 in Abu Dhabi.

“This is a huge win for our company. I want to give a big thanks to all our clients who voted for us. After winning the American Stevie for Company of the Year earlier in the year, it’s very exciting that we earned both the judge’s award and the People’s Choice,” ActionCOACH Founder and Chairman Brad Sugars said.

With more than 1000 Business Coaches working with more than 15,000 businesses around the world every week, it’s easy to see why the company was able to garner so many votes.

Without the outstanding results that ActionCOACH provides for its clients, the company couldn’t have earned this award, so congratulations to everyone in the ActionCOACH system and thanks to everyone who voted for ActionCOACH.

For any business to be successful, you have to find your niche, that space that no other business occupies but yours. But not every niche is the same.

Some are smaller than others and some are bigger, but can any niche be a business?

From adult kickball leagues to dog-waste pickup and dart-league franchises, there are business opportunities that are extremely niche-oriented.

But, the question is, do these kinds of businesses really have a big enough niche to make money?

Some of these businesses are clearly part time, like the Dart Leagues. You can own a franchise for a one-time fee of $500 and are only obligated to spend six hours per week on the business.

There is very little risk in a venture like that, but what’s the payoff?

But if you investigate WAKA, the World Adult Kickball Association, you’ll find that the buy-in for a franchise can cost as much as $50,000 and any franchisees are required to work full-time in the kickball business.

That’s quite an investment, both in resources and time, and it remains to be seen how successful their franchising model will be, considering they’ve only been franchising since early 2011.

The fact is WAKA has been around since 1998. It is currently in 35 states with about 4000 teams participating, so, obviously, the company is doing something right.

But are the fees paid by players and teams and the sponsorship of local bars enough to make this a legitimately good franchising deal for prospective entrepreneurs?

Once you’ve invested your $50,000 or so (depending on market) how long will it take you to recoup your investment?

And what are they doing differently that any person could do, without buying into a franchise? After all, couldn’t anyone organize a league without buying a franchise?

And finally, what proprietary advantages does the company have that individual operators wouldn’t?

These niche businesses, like WAKA, have managed to generate revenue and grow by focusing on a small, “hungry” segment of population. But does that translate into real cashflow and profits?

Time will tell.

The main lesson is to really investigate your narrow niche.

Is it really enough to support sustainable growth, cashflow and profit?

Is it something people already buy and is the niche a unique segment of a larger proven segment?