Convenience or location

Product selection

Pricing

Relationship

Specials

In the type of business that you run the most important single factor is your relationship. You likely spend your money at places where you're comfortable, "where everybody knows your name" (Like Norm on Cheers), and the same thing applies to your business. If you simply do the following 4 things you will see your business grow from increased business from your customers, less customer turnover and more referrals:

• Know their name. Write it down. Put it in a simple database. As they come back get to know more about them. Write that down, put that in your databas
  Presenters Don't Have to Be Beautiful - Presentations Do
  Not long ago I was invited by a colleague to a presentation for potential real estate investors. A builder and a realtor had joined forces to build a multi-million dollar property with the help of investors in the hopes of selling it for a hefty profit. The presentation was relatively informal, taking place on a Sunday afternoon.It began with an introduction by a junior member of the real estate arm, who turned the “stage” over to the builder. Lo and behold, a woman about 6 feet tall, in her mid to late sixties stood up and, began with, “Don’t mind the cough, its pneumonia, but it’s not contagious.” If that wasn’t enough to send the audience packing, her physical appearance was diam
  What's better than making a dollar in revenue today? How about making a dollar today, and then another dollar next month, another dollar the following month and so on? Smart businesses focus not on one-time sales-the transactional approach-but on building long-term customer relationships-the relationship approach. You might call this "annuitizing" your business. An annuity is "a sum of money, payable yearly, to continue for a given number of years, for life, or forever; an annual allowance." In other words, an annuity is a sum of money that you are paid on a regular and consistent basis.

  Here's an example. A couple of weeks ago my husband was in Dallas for a business trip. At the end of his trip he had to stop by a gas station to fill up his "midsize" rental car-a Ford Excursion believe it or not (I would hate to see the "fullsize" car)-before he dropped the car off at the airport on his way out of town. His gas bill was about $50 but chances are he will never be back to that gas station again. So his "Lifetime Customer Value" to that business is exactly that--$50.

  In comparison, there is an AM/PM station within about 5 minutes of our home that we frequent. Though we often buy gas other places, this store gets the majority of our business. When you figure that we spend perhaps $100+ there any given month, our Lifetime Customer Value to that gas station gets pretty big. For example, over just 5 years we will likely spend $6,000 there ($100/month x 60 months). As you can see, this is significantly more than the fifty dollars that my husband spent at the gas station mentioned earlier.

  In many ways your business is just the same. As wonderful as it is to get business from that customer the first time, it will be better yet if that customer comes back to you on a regular, consistent basis and spends an equivalent amount of money monthly or at least several times a year. In other words, you are "annuitizing" your business and each customer is adding significantly to the value of your business. For example, let's say that the focus of your scrapbooking business is home-based retailing. When someone comes to one of your workshops or seminars and buys some scrapbooking products, do you simply say "Thank you very much" and then never contact them again? Or do you treat this as simply the first of many visits to your "store" and then go about devising ways to develop a relationship with that customer and give them reasons to come back to your "store" to spend more money? This latter approach acknowledges the long-term potential purchasing power of this single customer. And with a little more incremental effort you might yield a 10X, 40X or 100X increase in revenue from that customer over the years.

  This same thing applies regardless as to the focus of your business: home-based retailer or consultant, an internet-based retailer, a developer of scrapbooking or stamping products, a company that focuses on expos or crops, and so on.

  So how do you go about "annuitizing" your customer base? Amazingly, you likely know the answer to the question already. Simply think for a moment about businesses that you frequent, places where you consistently spend money on a consistent basis. Examples might include your favorite gas station, a grocery store, a favorite restaurant, your local Costco or Wal-Mart, a styling salon, or a car dealership. Now think about why you return to these businesses and keep giving them your money. As you might imagine, it's likely for one or more of the following reasons:

  Convenience or location

  Product selection

  Pricing

  Relationship

  Specials

  In the type of business that you run the most important single factor is your relationship. You likely spend your money at places where you're comfortable, "where everybody knows your name" (Like Norm on Cheers), and the same thing applies to your business. If you simply do the following 4 things you will see your business grow from increased business from your customers, less customer turnover and more referrals:

  • Know their name. Write it down. Put it in a simple database. As they come back get to know more about them. Write that down, put that in your database
    How To Groom Your Customers For Bigger Profit
    One day last week, I decided to work from the house since I had to head over to Rotary at noon. A little bit ago, a lady from the place where my wife gets her hair cut called to see if she was here. I told her she had left to go get her hair cut, then laughed and commented that my wife had indeed remembered the appointment this time.You see, the last few times she had a hair appointment there, something happened and she forgot to show up at the right time. Rather than continue to tolerate that behavior, the hair place invested 2 minutes of their time to call an hour before the appointment to remind her.Should they have to do that? Not really.Is it smart business? Absol
    ar)-before he dropped the car off at the airport on his way out of town. His gas bill was about $50 but chances are he will never be back to that gas station again. So his "Lifetime Customer Value" to that business is exactly that--$50.

    In comparison, there is an AM/PM station within about 5 minutes of our home that we frequent. Though we often buy gas other places, this store gets the majority of our business. When you figure that we spend perhaps $100+ there any given month, our Lifetime Customer Value to that gas station gets pretty big. For example, over just 5 years we will likely spend $6,000 there ($100/month x 60 months). As you can see, this is significantly more than the fifty dollars that my husband spent at the gas station mentioned earlier.

    In many ways your business is just the same. As wonderful as it is to get business from that customer the first time, it will be better yet if that customer comes back to you on a regular, consistent basis and spends an equivalent amount of money monthly or at least several times a year. In other words, you are "annuitizing" your business and each customer is adding significantly to the value of your business. For example, let's say that the focus of your scrapbooking business is home-based retailing. When someone comes to one of your workshops or seminars and buys some scrapbooking products, do you simply say "Thank you very much" and then never contact them again? Or do you treat this as simply the first of many visits to your "store" and then go about devising ways to develop a relationship with that customer and give them reasons to come back to your "store" to spend more money? This latter approach acknowledges the long-term potential purchasing power of this single customer. And with a little more incremental effort you might yield a 10X, 40X or 100X increase in revenue from that customer over the years.

    This same thing applies regardless as to the focus of your business: home-based retailer or consultant, an internet-based retailer, a developer of scrapbooking or stamping products, a company that focuses on expos or crops, and so on.

    So how do you go about "annuitizing" your customer base? Amazingly, you likely know the answer to the question already. Simply think for a moment about businesses that you frequent, places where you consistently spend money on a consistent basis. Examples might include your favorite gas station, a grocery store, a favorite restaurant, your local Costco or Wal-Mart, a styling salon, or a car dealership. Now think about why you return to these businesses and keep giving them your money. As you might imagine, it's likely for one or more of the following reasons:

    Convenience or location

    Product selection

    Pricing

    Relationship

    Specials

    In the type of business that you run the most important single factor is your relationship. You likely spend your money at places where you're comfortable, "where everybody knows your name" (Like Norm on Cheers), and the same thing applies to your business. If you simply do the following 4 things you will see your business grow from increased business from your customers, less customer turnover and more referrals:

    • Know their name. Write it down. Put it in a simple database. As they come back get to know more about them. Write that down, put that in your databas
      Sympathy Gift Baskets: Why They are Better Than Flowers
      Do you know of someone who has recently lost a loved one? If so, you may be interested in sending a sympathy gift. When it comes to sympathy gifts, especially concerning the loss of a loved one, there are many individuals who choose to send flowers. While flowers are nice, you may actually want to think about sending a sympathy gift basket.When it comes to sending a sympathy gift basket instead of traditional flowers, you may be wondering why it is advised. If you have ever lost a loved one, you may know that flowers are how many people send their condolences. While there is nothing wrong with sending flowers, as it is often just the thought that counts, you may want to send a mo
      siness from that customer the first time, it will be better yet if that customer comes back to you on a regular, consistent basis and spends an equivalent amount of money monthly or at least several times a year. In other words, you are "annuitizing" your business and each customer is adding significantly to the value of your business. For example, let's say that the focus of your scrapbooking business is home-based retailing. When someone comes to one of your workshops or seminars and buys some scrapbooking products, do you simply say "Thank you very much" and then never contact them again? Or do you treat this as simply the first of many visits to your "store" and then go about devising ways to develop a relationship with that customer and give them reasons to come back to your "store" to spend more money? This latter approach acknowledges the long-term potential purchasing power of this single customer. And with a little more incremental effort you might yield a 10X, 40X or 100X increase in revenue from that customer over the years.

      This same thing applies regardless as to the focus of your business: home-based retailer or consultant, an internet-based retailer, a developer of scrapbooking or stamping products, a company that focuses on expos or crops, and so on.

      So how do you go about "annuitizing" your customer base? Amazingly, you likely know the answer to the question already. Simply think for a moment about businesses that you frequent, places where you consistently spend money on a consistent basis. Examples might include your favorite gas station, a grocery store, a favorite restaurant, your local Costco or Wal-Mart, a styling salon, or a car dealership. Now think about why you return to these businesses and keep giving them your money. As you might imagine, it's likely for one or more of the following reasons:

      Convenience or location

      Product selection

      Pricing

      Relationship

      Specials

      In the type of business that you run the most important single factor is your relationship. You likely spend your money at places where you're comfortable, "where everybody knows your name" (Like Norm on Cheers), and the same thing applies to your business. If you simply do the following 4 things you will see your business grow from increased business from your customers, less customer turnover and more referrals:

      • Know their name. Write it down. Put it in a simple database. As they come back get to know more about them. Write that down, put that in your databas
        Franchises - Success and You
        Many people believe owning a franchise will make them rich, financially secure, and provide the life of their dreams. True, franchises have an extremely high success rate, and a very high satisfaction rate among their owners. But is that success guaranteed when you purchase a franchise? NO!There are no guarantees in life, or in franchises. There are those occasions when franchises are not profitable, lose money, and close. Although most franchises provide a proven business system, not all OWNERS are proven.Many enter into the franchise system, thinking all they have to do is come up with the money to get the business open, and it will run itself and they will make money. I do
        es the long-term potential purchasing power of this single customer. And with a little more incremental effort you might yield a 10X, 40X or 100X increase in revenue from that customer over the years.

        This same thing applies regardless as to the focus of your business: home-based retailer or consultant, an internet-based retailer, a developer of scrapbooking or stamping products, a company that focuses on expos or crops, and so on.

        So how do you go about "annuitizing" your customer base? Amazingly, you likely know the answer to the question already. Simply think for a moment about businesses that you frequent, places where you consistently spend money on a consistent basis. Examples might include your favorite gas station, a grocery store, a favorite restaurant, your local Costco or Wal-Mart, a styling salon, or a car dealership. Now think about why you return to these businesses and keep giving them your money. As you might imagine, it's likely for one or more of the following reasons:

        Convenience or location

        Product selection

        Pricing

        Relationship

        Specials

        In the type of business that you run the most important single factor is your relationship. You likely spend your money at places where you're comfortable, "where everybody knows your name" (Like Norm on Cheers), and the same thing applies to your business. If you simply do the following 4 things you will see your business grow from increased business from your customers, less customer turnover and more referrals:

        • Know their name. Write it down. Put it in a simple database. As they come back get to know more about them. Write that down, put that in your databas
          How Much Risk is Necessary to Grow Your Business?
          A business owner is thoroughly responsible for their own financial survival and possibly the financial survival of their employees. Business owners, for the most part, seem to be "risk takers", who really don't easily "go with the flow". They are inventive and somewhat confident, as just having their own business does mandate that they possess these qualities.However, the ability to live with risk is very much a personal issue. Some business owners can live with more risk than others and some can manage the risk better than others.Having the ability to effectively manage risk is imperative for a successful business venture. Therefore business owners need to be able to effecti
          . Now think about why you return to these businesses and keep giving them your money. As you might imagine, it's likely for one or more of the following reasons:

          Convenience or location

          Product selection

          Pricing

          Relationship

          Specials

          In the type of business that you run the most important single factor is your relationship. You likely spend your money at places where you're comfortable, "where everybody knows your name" (Like Norm on Cheers), and the same thing applies to your business. If you simply do the following 4 things you will see your business grow from increased business from your customers, less customer turnover and more referrals:

          • Know their name. Write it down. Put it in a simple database. As they come back get to know more about them. Write that down, put that in your database. (A "database" doesn't even have to be on a computer. It could simply be notes on a piece of paper. However, I do advocate keeping it on a computer.)
          • Communicate with them on a regular basis. Call them. Send them a note. Email them. Particularly, in today's electronic world, there is no reason not to email people on an ongoing basis. And it's infinitely cheaper than sending out mailers, catalogs or brochures.
          • Give them a reason to do more business with you. Tell them about new products or services that might interest them. Invite them to a seminar, an expo, or to your new website. Offer them a coupon with an expiration date.
          • Treat them the way that you would likely to be treated. Yes, the Golden Rule is still in force.

          I admit that there is nothing new or really that unique about these ideas. But as I said, most people really know how to build customer relationships because we all know why we frequent our favorite businesses and vendors. Working to "annuitize" your business takes a little more effort, but the result over time will be that you won't have to struggle and fight for each dollar of revenue. Instead you will have a base of business that you can somewhat "count on". This gives you more flexibility to find new and creative ways to build your business further.