There is lot of it and, of course, us Brits love it….Irony. Travelling down the M5 yesterday I saw a Viridor (waste management company) truck driving southbound strewing its contents across the road! It got me thinking about other cases, all real cases. The business consultancy/advisory service that doesn’t have a training budget for its staff. The cafe that states it has the best customer service in town but you can’t even get a smile out of them? McDonalds selling salad and fruit, or, a new climate change computer here in Devon turning the Met Office into one of the most polluting buildings in the UK.

All a little disturbing, if it wasn’t so funny, particularly as those companies committing it just don’t see it! Apart from doing your brand harm, it hardly endears the customer to the credibility you worked so hard for! Irony should be left to the comedians.

And chase them in that order. Too many start up businesses chase the turnover and okay it’s got to come in at the front end to drop out the bottom as they say! But too many businesses turnover lots and make sod all. Even worse they may be making a profit but cash flow stinks.

There are some fundamental learning points here:

1. Choose your customers carefully.

2. Manage the cash flow like a hawk watches its prey.

3. Cash is different than profit…know the key differences.

4. Chase debtors religiously.

5. Always ask for a deposit up front 25% 30% if it’s appropriate.

6. When you can, set up a business reserve account. Put spare cash (I know that would be great if you had some) in there and save for a rainy day because inevitably there will be one and when you are least likely to expect it. The ones who did it are now saying ‘what economic crisis?’

All publicity is not good publicity. We have the enviable task of understanding how the media works and how we can use it to reinforce our reputation and influence even as a small business. Carefully considering what is newsworthy is an art in itself and how often do we get it wrong? LOTS!

Just take a look in your local business magazine and see all the ‘publicity’ shots in there from various networking meetings of business people smiling away with the illusion that this is ‘good for business.’ In danger of ‘fame chasing’ this kind of public relations really does nothing to promote your business or you, in fact, its possibly damaging it.

All public relations communications needs to stop nothing short of exceptional. Your news needs to be overwhelmingly interesting, intriguing and exciting. Always ask the question before any release; Is this show stopping? Will it elevate our credibility to the next level. If the answer to both questions is no, then don’t do it.

I’m afraid, the potential customer is bored silly of companies celebrating anniversaries and seeing the same people at networking events straining for the camera shot! A brand new product/service launch that changes things, winning a high profile award, gaining that client you have been wanting to do business with for years, or offering a revolutionary perspective on business is what contemporary public relations is about. Promote your company’s knowledge not your ego.

Beware of stealing in your business. Perhaps there is a better word? Stealing happens when someone takes something from you when you are not looking, or, when you are unaware initially. Customers, staff, suppliers and partners involved in your business can do this. Their motivation is often being unfair to gain an advantage for themselves.

Whether it is by asking you to reduce prices, taking valuable time from you without adding value, not understanding that the relationship you have is just as important as the profit you make, or, by demanding stuff you just can’t do which is compromising. If you allow people to steal from you, you are literally giving people permission to cheat you.

If you thought social media was a fad…watch this…..love it!

http://www.youtube.com/watch?v=sIFYPQjYhv8

A friend recently told me about a change the organisation he works for (a corporate) are going to implement at a cost of hundreds of thousands. They had received one piece of feedback from a customer who was displeased. Turns out only 9% of other customers agree with that complaint. It seems the organisation are more interested in rapid problem solving than logically making the correct decision.

Survey and respond to the right customers needs. Know you’re top 20% of customers as they are probably delivering 80% of your profits, give or take. These are the customers who are likely to become advocates of what you do and will constantly refer without any incentive.

Never randomly survey your whole customer base, its not efficient. Always gain feedback from all of your top 20% and then take a random sample from the rest. The top 20% are you’re most valuable customers, it would be crazy to miss even one out.

This books worth a little investment and whilst its not available free online anywhere, it offers a solid approach to looking at customer loyalty and word of mouth to grow your business. There are some significant pointers particularly the Net Promoter Score which lays out how to truly measure customer feedback and ensuring you grow your business through good profits not bad.

The most useful thinking though is the idea to stop doing customer research now using more traditional questioning and just ask one “Would you recommend us to a friend?”  It also touches on the golden rule of customer loyalty “treat people how you would like to be treated.”

Buying growth is expensive, Fred Reichheld suggests there are easier and more rewarding ways of growing a business and he’s right.

I know you know this already but thought I’d post it anyway and make no apologies for repeating myself. If you are looking to become more efficient and, yet increasingly productive at the highest level; focus on your talent, core competencies and where you add value most.

Drop the low or non value adding activity and outsource it, such as bookkeeping and invest the savings in new product/service development or research which is the true source of your competitive advantage.

Think we should always question business potential, opportunities, products and customers in this way FIRST; how fab would it be to do this with this customer or business? Rather than how much money can we make out of it? The money bit should be a direct consequence of doing great stuff, challenging work and having fun! Pity we are taught the other way round!

As a small business owner we have no excuses. The corporates perhaps do, but as the owner its your job to know what your customers are thinking and feeling. You possibly know each one by name. You’ll know them personally even if you never eyeball them and you’re doing business online.

Customer feedback does not need to be a number crunching, sterile set of data that tells you sod all. By being in touch, by asking the right question, you are in a great position to see what makes them happy and what enrages them. As a small business owner you can treat each of your top 20% of customers individually by building that intense relationship with them. If you don’t want too, you are simply in the wrong job! And, if you treat the top 20% right, they are the ones referring other great customers to you.

Word of mouth marketing is the cheapest, yet most effective form of marketing. Its impact is huge, its effect fundamental. Its interesting just how enjoyable the job becomes when people start seeing your credibility and reputation in a similar way to you.