Business Coaching

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.

A recent independent study on the value and effectiveness of business coaching conducted by the UK-based Cogent Research has provided some interesting data about the overall impact of business coaching and its effect on business.

The UK research comes on the heels of a recent U.S. study of coached companies in South Florida that showed that, despite the recession, these companies had grown revenues by more than $12 million over the last year.

That study also showed coached businesses saw a return on investment (ROI) of 7.5-to-1, or $7.50 in return for every $1 invested in coaching. Some of the more interesting numbers discovered by Cogent in the U.K. included:

•    74 percent of ActionCOACH coached businesses increased sales last year compared to only 43 percent of non-coached businesses

•    There was a 30 percent average annual sales growth in ActionCOACH coached businesses compared to only 13 percent in non-coached businesses

•    53 percent of ActionCOACH coached businesses increased profits last year compared to only 35 percent of non-coached businesses

•    77 percent of ActionCOACH coached businesses forecast growth in profit in next 12 months

•    30 percent of ActionCOACH coached businesses increased their profits in the last 12 months by more than £50,000

•    56 percent of ActionCOACH coached businesses increased their workforce compared to only 14 percent of non-coached businesses

•    91 percent of ActionCOACH coached businesses have a plan for the next quarter compared to only 37 percent in non-coached businesses

•    97 percent  of coached businesses would recommend coaching to other small and medium enterprises.

In their report, Cogent also noted that, “Businesses generally who had adopted formalised procedures such as those recommended by ActionCOACH appeared to not only have weathered the adverse trading conditions of the previous twelve months but have actually increased sales, profits and workforce.”

So what’s the key to continued business success in this difficult economic environment? There are 15,000 businesses coached every week around the world that will tell you the key is working with an ActionCOACH.

We have all heard read the reports. Our world is in an economic downturn. Many say it’s a severe recession while others use the word depression but regardless of the label, business owners are only concerned with how their numbers look.

For some, such as those in discretionary industries like apparel and travel, you are among the hardest hit.  We all know that eventually customers will purchase and profits will return but what can we do right now to preserve customers and profits?

There are two actions to take right now to ride out the tough economic times.

First, businesses must find the value in their current customer base.

In other words, business owners need to understand that the greatest asset of their business is their current customer base.

It costs upwards of six to eight times more to acquire a new customer than to sell an existing product to an existing customer, so in our current “economic winter,” it is vital to treat current customers well and find ways to add value to your current product and/or service line.

While some companies would have us believe that they are customer centered, in reality that may not be the case.  When the phones are ringing wildly with sales, customers are crowding showrooms and battling over the last item on the shelf, some owners forget that their customer’s money was earned by hours of hard work and because of that they are going to maximize the value they receive for the money they spend.

A great customer experience is the key to creating and maintaining a business relationship. As Dale Carnegie said, having a genuine interest in somebody is the first step to that person feeling valued.

Second, businesses must streamline. While it seems logical to think that having a larger range of products which appeal to the widest of range of people would be the best way to increase sales, some successful business owners to think differently.

Diversity doesn’t mean that you have a great business. It may be more profitable to sell lower volume items at higher price points and higher profit margins.

While product diversity may be important if you are a large scale retail establishment who is known for being the one place that customers can shop for just about everything, the specialty business owner may have a different focus.

In this case, selling the highest profit margin products may make more sense.  Product bundling and customer appreciation days may increase the perceived value while preserving a high profit margin.  Businesses rarely survive over the long term by focusing on low prices.

Finally, keep in mind, downturns force companies to pare marginal products and services, and focus on what they do best.

This is one of those times.

There is no denying that when the economic climate is challenging, streamlining operations is pivotal to the bottom line but remember that those customers who have believed in your business in the past are the best assets you have.

Don’t offer more, but, instead, optimize the value of our current offerings.

You can buy the cheaper office supplies but don’t discount the customer’s experience.

When you hear “Disney” what do you think of?

If you’re like most of the people on the face of the earth, Mickey Mouse, Donald Duck, Walt Disney World, Snow White, Cinderella and the rest probably come to mind.

But if you’re one of the people in China who study at Disney English or an executive who has been trained at Disney Institute, you may have a different idea.

Yes, Disney, one of the biggest and most successful companies in the world has a lot more irons in the fire than one might think.

They don’t only sell movies, toys and games. They are now in the business of teaching and training.

Today, there are more than 20 Disney English schools in China. Disney has received a lot of criticism since opening the first school early in 2008 because, to many, these schools are simply an obvious attempt from Disney to market their products to Chinese youth.

Indeed, the names of some of the rooms in the “flagship” school make that pretty obvious.

Students may learn while enjoying the Snow White Room, the Peter Pan Room or even the Toy Story Room, among others.

According to Disney executives, the schools are just an attempt to make it easier for Chinese Children to learn English. But if they also learn a little bit about “The Lion King” along the way, it certainly can’t hurt Disney.

Meanwhile, back on American shores, the Disney Institute is a completely different kind of school.

The Institute is really an executive training school where executives from any type of business can come and learn how to become a better executive and leader.

The Disney Institute has been around since 1986, and uses the company’s theme parks as a “living laboratory” to teach executives the “Disney” ideal of business building.

It’s hard to argue with a company that has been around for so long and remains one of the most powerful entities in the corporate world. Obviously Disney is doing something right and the Institute is a great way to teach other companies that same mindset.

It’s also a great way to develop a corporate symbiosis between the company and the people who attend.

So what are the Disney English Center and the Disney Institute?

If you look closely enough you’ll see they are terrific marketing tools for Disney’s bigger brands.

In many ways they are loss leaders that aren’t necessarily designed to make money for the company, but to generate leads that will pay a massive return on investment in the future.

This couldn’t be clearer, especially in regard to the English Center, as Disney teaches millions of Chinese to speak English by quoting “The Little Mermaid.”