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Member You - Don't Be Afraid To Give Problem Customers The Boot
How to Win when you are Outspent that your customer benefits from your product or service and your company prospers by delivering the product or service. The relationship must be built on mutual respect and honest intention. It is when the relationship becomes win/lose that you must be ready to take action. If the customer thinks he can hold you over a barrel and get more out of you than he has paid for, the relationship and your business suffer for it.We Are All Outspent Most brands face daunting tasks in preparing marketing communications to steal market share. If you have unlimited budgets and are capable of out-spending the competitive set, your job is that much easier. For the rest of us, we have to learn how to win without the largest ad budgets and without dominating share of voice (SOV).There are some rules that Stealing Share has discovered in our quest to be the authority in stealing market share. In marketing, advertising, brand development, and the rest of one’s life, focus and clarity always lead to better results. How do you know when you have such focus? That is the subject of this short article.More Than The CategoryFirst, you must make sure that your brand was built, not just for clarity and simplicity (both are vital) but also for persuasion. If your brand symbols and brand equity markers are clear but static, you have some serious and immediate work to do (take our Evaluate You Brand test (www.stealingshare.com/brand_quiz.asp). When w Look, you don't need me to hit you in the head with a stupid stick on this one. You know who your problem customers are and you know that you will eventually have to deal with them. You have to consider the value of every customer in the long run, not just their value today. Is the customer making demands that are beyond the scope of what should be reasonably expected? If the customer constantly demands more than they are entitled to and gets angry when you refuse to comply, consider giving them the boot. Is the customer taking advantage of your good graces? Some customers may mistake your willingness to please for weakness and try to wring more out of your relationship than they should. If the customer has a record of trying to take advantage of you and plays every angle to get more from you than they deserve, consider giving them the boot. Is this customer a threat to your reputation? Let’s face it; there is nothing more harmful to your repu Create a Giant Postcard to Market Your Business and Get Results Fast! Q: In a recent column you made the point that the customer is always right, which I agree with. However, in the same column you also said that it is sometimes necessary give problem customers the boot. If the customer is always right, at what point do you think they become so problematic that you should stop doing business with them?
-- Gary M.A wonderful, hardworking marketing tool is a giant postcard! With colorful eye-catching graphics on one side and your promotional copy on the back, it will grab attention faster than an email, ad or sales letter.Make it BIGA giant postcard, also called an oversized, jumbo, or #14 postcard is a low-cost, effective device for branding your business and creating prospect response. Start with a 6" x 9" or larger size postcard and print in full color to make it stand out from the stack of white envelopes in today's mail. Postage is the price of a first class stamp.Customize ItFind a printer who can print "variable data" and you can customize the postcard with your prospect's first name in the design along with their mailing address. Who can resist reading a postcard with their very own name in the headline? You don't need to use peel and stick address labels anymore either!Brand ItI recommend several mailings using the same brand, theme, or graphic to make a memorable impression in your prospect's mind. Make your brand simple, unique and easily identif A: That column brought a number of emails similar to yours, Gary, requesting that I clarify the line between "the customer is always right" and "sometimes you have to give a customer the boot." Here's the bottom line: if you, as a business owner or service provider, are willing to take a customer's money in exchange for providing him with goods or services, then the customer has what I call "the right of expectation." This means that the customer has the right to expect you to deliver everything promised in the transaction between you. For example, if you own a restaurant the customer has the right to expect that their meal will be prepared and served to their satisfaction. If you are a dry cleaner the customer has the right to expect that you will launder their clothes without returning them in shreds. If are hired to perform a service the customer has the right to expect that the service will be provided to their satisfaction within the terms of the defined task. As the business owner, it is your responsibility to meet the customer's expectations and provide good customer service. Even if your business does not involve a formal contract that spells out to the letter what should be expected, there is generally a clear understanding of what the customer expects and what you are willing to deliver. If you back peddle on your end of the bargain, let's say by serving a bad meal or losing a customer's laundry and refusing to make things right, then you are guilty of not meeting the expectations of your customer and thereby are guilty of providing bad customer service. Unfortunately not every entrepreneur puts emphasis on delivering good customer service. They are in it for the money and damn the customer if they have a problem. Such entrepreneurs were the topic of the column you mentioned, the point of which was, if you make a habit of not meeting your customer's expectations, you will not be in business for long. Now let's look at the flipside. Just as the customer has the right to expect that he will get his money's worth when doing business with you, you have the right to expect that your customer will not demand things that are beyond the scope of realistic expectations (or the contract). If a customer orders hamburger, he shouldn’t expect it to taste like steak unless you have advertised it as such. If a customer brings you a cotton shirt to launder he should not expect a silk shirt in return. It's when the customer’s expectations get out of sync with what should realistically be expected that you will have problems. We have all had customers who expected far more than was their due: customers who were unreasonable, overly demanding, condescending, hard to please and sometimes, even dishonest in their dealings with you. When a customer's reasonable expectations become unreasonable demands you must decide whether or not that customer is doing more harm to your business than good. So here is the line in the sand between the "customer is always right" and "sometimes you have to give the customer the boot" - if a customer crosses the line from being an asset to being a detriment to your business, you should consider giving that customer the boot. This is easier said than done if that customer constitutes a large chunk of your revenue, but even then you have to consider what your business might be like if that problem customer was not in the picture. Would the time you spend dealing with the problem customer be better spent on sales calls that might expand your client base and grow your business (a business that is dependent on one client is a house of cards)? Would your employees be happier not having to deal with this customer? Would you sleep better nights knowing that you don't have a dozen phone messages from him on your desk every morning? The easiest way to decide how much trouble a customer is worth is to look at the amount of revenue this customer brings in versus the time and expense of meeting his expectations. If this customer pays you $1,000 a month, but costs you $2,000 in time spent keeping them happy, this customer is actually costing you money. Just a handful of these kinds of customers will put you out of business fast.. For example, I once had a client whose business was worth several thousand dollars a year to my software company’s bottom line. However, this client proved to be problematic from the second the contract was signed. He and his employees called our office ten times a day and dominated my tech support team's time with IT problems that were not even related to the service we were contracted to provide. It got so bad that my employees cringed every time the phone rang because they were afraid it was this client calling again. When the time came to renew this client's contract it wasn't hard for me to decide to give him the boot. I simply did the math. This client had added thousands of dollars to my company’s bottom line, but had cost me at least that much in handholding and support, not to mention the mental anguish he had caused my employees. I opted not to renew the contract and politely invited the client to take his business elsewhere. The perfect customer relationship is win/win, meaning that your customer benefits from your product or service and your company prospers by delivering the product or service. The relationship must be built on mutual respect and honest intention. It is when the relationship becomes win/lose that you must be ready to take action. If the customer thinks he can hold you over a barrel and get more out of you than he has paid for, the relationship and your business suffer for it. Look, you don't need me to hit you in the head with a stupid stick on this one. You know who your problem customers are and you know that you will eventually have to deal with them. You have to consider the value of every customer in the long run, not just their value today. Is the customer making demands that are beyond the scope of what should be reasonably expected? If the customer constantly demands more than they are entitled to and gets angry when you refuse to comply, consider giving them the boot. Is the customer taking advantage of your good graces? Some customers may mistake your willingness to please for weakness and try to wring more out of your relationship than they should. If the customer has a record of trying to take advantage of you and plays every angle to get more from you than they deserve, consider giving them the boot. Is this customer a threat to your reputation? Let’s face it; there is nothing more harmful to your reput Is It Time to Legally Register Your Trade/Service Mark? customer's expectations and provide good customer service. Even if your business does not involve a formal contract that spells out to the letter what should be expected, there is generally a clear understanding of what the customer expects and what you are willing to deliver. If you back peddle on your end of the bargain, let's say by serving a bad meal or losing a customer's laundry and refusing to make things right, then you are guilty of not meeting the expectations of your customer and thereby are guilty of providing bad customer service.It’s very upsetting to find someone using your business name, or one that is “confusingly similar.” If you’ve taken legal steps to protect your name, you are in a much better position to protect your interests.* If you are successful, you will be copied.I learned this lesson the hard way. When my business partner and I started Tables to Teapots (a retail store in Acton, MA), we had no idea how successful we would be. After several years of hard work, a TV feature on Chronicle and a story in Inc. Magazine, our business was booming. Then one day, a customer came in and said, “I didn’t know you’d opened up in New Hampshire.” Well, we hadn’t opened up in NH. But, an enterprising copycat had opened a store and called it NH-Tables to Teapots.We were lucky. While we had the rights clearly established in Massachusetts, we had not filed a federal Trademark protecting the name in other states. By taking an aggressive position, I was able to convince the NH copycat to change the name of his business.Legally, our “rights” to the name attach from the time we used it in comm Unfortunately not every entrepreneur puts emphasis on delivering good customer service. They are in it for the money and damn the customer if they have a problem. Such entrepreneurs were the topic of the column you mentioned, the point of which was, if you make a habit of not meeting your customer's expectations, you will not be in business for long. Now let's look at the flipside. Just as the customer has the right to expect that he will get his money's worth when doing business with you, you have the right to expect that your customer will not demand things that are beyond the scope of realistic expectations (or the contract). If a customer orders hamburger, he shouldn’t expect it to taste like steak unless you have advertised it as such. If a customer brings you a cotton shirt to launder he should not expect a silk shirt in return. It's when the customer’s expectations get out of sync with what should realistically be expected that you will have problems. We have all had customers who expected far more than was their due: customers who were unreasonable, overly demanding, condescending, hard to please and sometimes, even dishonest in their dealings with you. When a customer's reasonable expectations become unreasonable demands you must decide whether or not that customer is doing more harm to your business than good. So here is the line in the sand between the "customer is always right" and "sometimes you have to give the customer the boot" - if a customer crosses the line from being an asset to being a detriment to your business, you should consider giving that customer the boot. This is easier said than done if that customer constitutes a large chunk of your revenue, but even then you have to consider what your business might be like if that problem customer was not in the picture. Would the time you spend dealing with the problem customer be better spent on sales calls that might expand your client base and grow your business (a business that is dependent on one client is a house of cards)? Would your employees be happier not having to deal with this customer? Would you sleep better nights knowing that you don't have a dozen phone messages from him on your desk every morning? The easiest way to decide how much trouble a customer is worth is to look at the amount of revenue this customer brings in versus the time and expense of meeting his expectations. If this customer pays you $1,000 a month, but costs you $2,000 in time spent keeping them happy, this customer is actually costing you money. Just a handful of these kinds of customers will put you out of business fast.. For example, I once had a client whose business was worth several thousand dollars a year to my software company’s bottom line. However, this client proved to be problematic from the second the contract was signed. He and his employees called our office ten times a day and dominated my tech support team's time with IT problems that were not even related to the service we were contracted to provide. It got so bad that my employees cringed every time the phone rang because they were afraid it was this client calling again. When the time came to renew this client's contract it wasn't hard for me to decide to give him the boot. I simply did the math. This client had added thousands of dollars to my company’s bottom line, but had cost me at least that much in handholding and support, not to mention the mental anguish he had caused my employees. I opted not to renew the contract and politely invited the client to take his business elsewhere. The perfect customer relationship is win/win, meaning that your customer benefits from your product or service and your company prospers by delivering the product or service. The relationship must be built on mutual respect and honest intention. It is when the relationship becomes win/lose that you must be ready to take action. If the customer thinks he can hold you over a barrel and get more out of you than he has paid for, the relationship and your business suffer for it. Look, you don't need me to hit you in the head with a stupid stick on this one. You know who your problem customers are and you know that you will eventually have to deal with them. You have to consider the value of every customer in the long run, not just their value today. Is the customer making demands that are beyond the scope of what should be reasonably expected? If the customer constantly demands more than they are entitled to and gets angry when you refuse to comply, consider giving them the boot. Is the customer taking advantage of your good graces? Some customers may mistake your willingness to please for weakness and try to wring more out of your relationship than they should. If the customer has a record of trying to take advantage of you and plays every angle to get more from you than they deserve, consider giving them the boot. Is this customer a threat to your reputation? Let’s face it; there is nothing more harmful to your repu 5 Powerful Rules for Writing Advertising that Sells! t's when the customer’s expectations get out of sync with what should realistically be expected that you will have problems.As you begin to write your sales copy for your advertisement keep one thing in your mind…Everything you put into the must point out a specific benefit to your prospect.Ask yourself as you write, “How will this help to get my prospect to act now?”Always focus on the prospect, no matter what everyone else says or thinks. Tell them you’ve got a solution to their wants, needs desires, RIGHT NOW! The purpose is to get them to act.1. Identify the prospect pain. (Research your target prospect to understand this)2. Make them really feel it (they will do more to avoid pain than they will to gain pleasure…so really hit them between the eyes)3. Let them know you can take it away right now. (Go into absolute detail here)4. Let him know the pain will stay unless they act now. (Remind them of the pain they are currently feeling. Go into detail here as well)5. Remove the risk of taking action for them. (make it so simple and risk free, they would feel silly not using your product or service)Write your ad as though they are sitting beside you. You k We have all had customers who expected far more than was their due: customers who were unreasonable, overly demanding, condescending, hard to please and sometimes, even dishonest in their dealings with you. When a customer's reasonable expectations become unreasonable demands you must decide whether or not that customer is doing more harm to your business than good. So here is the line in the sand between the "customer is always right" and "sometimes you have to give the customer the boot" - if a customer crosses the line from being an asset to being a detriment to your business, you should consider giving that customer the boot. This is easier said than done if that customer constitutes a large chunk of your revenue, but even then you have to consider what your business might be like if that problem customer was not in the picture. Would the time you spend dealing with the problem customer be better spent on sales calls that might expand your client base and grow your business (a business that is dependent on one client is a house of cards)? Would your employees be happier not having to deal with this customer? Would you sleep better nights knowing that you don't have a dozen phone messages from him on your desk every morning? The easiest way to decide how much trouble a customer is worth is to look at the amount of revenue this customer brings in versus the time and expense of meeting his expectations. If this customer pays you $1,000 a month, but costs you $2,000 in time spent keeping them happy, this customer is actually costing you money. Just a handful of these kinds of customers will put you out of business fast.. For example, I once had a client whose business was worth several thousand dollars a year to my software company’s bottom line. However, this client proved to be problematic from the second the contract was signed. He and his employees called our office ten times a day and dominated my tech support team's time with IT problems that were not even related to the service we were contracted to provide. It got so bad that my employees cringed every time the phone rang because they were afraid it was this client calling again. When the time came to renew this client's contract it wasn't hard for me to decide to give him the boot. I simply did the math. This client had added thousands of dollars to my company’s bottom line, but had cost me at least that much in handholding and support, not to mention the mental anguish he had caused my employees. I opted not to renew the contract and politely invited the client to take his business elsewhere. The perfect customer relationship is win/win, meaning that your customer benefits from your product or service and your company prospers by delivering the product or service. The relationship must be built on mutual respect and honest intention. It is when the relationship becomes win/lose that you must be ready to take action. If the customer thinks he can hold you over a barrel and get more out of you than he has paid for, the relationship and your business suffer for it. Look, you don't need me to hit you in the head with a stupid stick on this one. You know who your problem customers are and you know that you will eventually have to deal with them. You have to consider the value of every customer in the long run, not just their value today. Is the customer making demands that are beyond the scope of what should be reasonably expected? If the customer constantly demands more than they are entitled to and gets angry when you refuse to comply, consider giving them the boot. Is the customer taking advantage of your good graces? Some customers may mistake your willingness to please for weakness and try to wring more out of your relationship than they should. If the customer has a record of trying to take advantage of you and plays every angle to get more from you than they deserve, consider giving them the boot. Is this customer a threat to your reputation? Let’s face it; there is nothing more harmful to your repu Why You Should Run Away From An Ad Agency That Talks About Branding (Before Your Wallet's Empty) to decide how much trouble a customer is worth is to look at the amount of revenue this customer brings in versus the time and expense of meeting his expectations. If this customer pays you $1,000 a month, but costs you $2,000 in time spent keeping them happy, this customer is actually costing you money. Just a handful of these kinds of customers will put you out of business fast..So why should you run away from any ad agency that talks about branding?Simple. The ad agency doesn’t know the first word about results.And if you want to INVEST in advertising instead of GAMBLING in advertising, you really can’t afford to listen to the “Branding or Name recognition” madness.Branding is a disservice to the buying public. It’s like having a lamp and hiding it under your bed. The light doesn’t help you. The light doesn’t help your family members and friends.When you’re branding: service to the customer becomes second to bragging or being creative for the sake of being creative. Got Milk? Really? Got Milk? Really. So what?What Is This Hot Babe Doing In Your Commercial?And Don’t Tell Me The Old “Sex Sells”Ok so you’re selling a camera. Why do you want that hot babe with super-hot legs playing tennis in your commercial. You know what Rosser Reeves calls this hot babe in your commercial, he calls it a vampire. It doesn’t help sell your product, actually it’s draining attention from your product.Is Your Advertising A Gamble For example, I once had a client whose business was worth several thousand dollars a year to my software company’s bottom line. However, this client proved to be problematic from the second the contract was signed. He and his employees called our office ten times a day and dominated my tech support team's time with IT problems that were not even related to the service we were contracted to provide. It got so bad that my employees cringed every time the phone rang because they were afraid it was this client calling again. When the time came to renew this client's contract it wasn't hard for me to decide to give him the boot. I simply did the math. This client had added thousands of dollars to my company’s bottom line, but had cost me at least that much in handholding and support, not to mention the mental anguish he had caused my employees. I opted not to renew the contract and politely invited the client to take his business elsewhere. The perfect customer relationship is win/win, meaning that your customer benefits from your product or service and your company prospers by delivering the product or service. The relationship must be built on mutual respect and honest intention. It is when the relationship becomes win/lose that you must be ready to take action. If the customer thinks he can hold you over a barrel and get more out of you than he has paid for, the relationship and your business suffer for it. Look, you don't need me to hit you in the head with a stupid stick on this one. You know who your problem customers are and you know that you will eventually have to deal with them. You have to consider the value of every customer in the long run, not just their value today. Is the customer making demands that are beyond the scope of what should be reasonably expected? If the customer constantly demands more than they are entitled to and gets angry when you refuse to comply, consider giving them the boot. Is the customer taking advantage of your good graces? Some customers may mistake your willingness to please for weakness and try to wring more out of your relationship than they should. If the customer has a record of trying to take advantage of you and plays every angle to get more from you than they deserve, consider giving them the boot. Is this customer a threat to your reputation? Let’s face it; there is nothing more harmful to your repu Five Reasons to Incorporate a Company Offshore that your customer benefits from your product or service and your company prospers by delivering the product or service. The relationship must be built on mutual respect and honest intention. It is when the relationship becomes win/lose that you must be ready to take action. If the customer thinks he can hold you over a barrel and get more out of you than he has paid for, the relationship and your business suffer for it.When it comes to the term ‘offshore’ used in conjunction with company incorporation, the term ‘offshore’ generally refers to any jurisdiction other than one in which the company incorporated will conduct the majority of its activities.Usually such a jurisdiction has some degree of taxation or reporting benefit attached that makes it attractive to the company owner, and the concept of incorporating a company offshore will bring at least one of the following five benefits to a business owner: -1) Ease of Operations – depending on the jurisdiction and the type of business activity to be conducted under the company name to be incorporated, the operating restrictions, auditing and accounting requirements and standards to which the business and its employees and directors must adhere are often far less restrictive offshore than onshore.Exceptions to this rule are financial services based companies in many jurisdictions for example, who have to comply with extra regulatory legislation for the protection of the company’s clientele.The advantage of easing operati Look, you don't need me to hit you in the head with a stupid stick on this one. You know who your problem customers are and you know that you will eventually have to deal with them. You have to consider the value of every customer in the long run, not just their value today. Is the customer making demands that are beyond the scope of what should be reasonably expected? If the customer constantly demands more than they are entitled to and gets angry when you refuse to comply, consider giving them the boot. Is the customer taking advantage of your good graces? Some customers may mistake your willingness to please for weakness and try to wring more out of your relationship than they should. If the customer has a record of trying to take advantage of you and plays every angle to get more from you than they deserve, consider giving them the boot. Is this customer a threat to your reputation? Let’s face it; there is nothing more harmful to your reputation than a dissatisfied customer with a big mouth. And it does not matter who is at fault in the disagreement, a disgruntled customer is going to bad mouth you in the end - especially if they were at fault. If you suspect a customer might be the sort to one day air dirty laundry in public, consider giving them the boot. Does the customer pay in a timely manner? If you have a customer that is consistently 90 to 120 days late in paying even when your contract clearly outlines your payment terms to be otherwise, it may be indicative of other problems to come. If you feel the client is a payment risk, consider giving them the boot. What's the best way to avoid a customer booting? The best answer is to have a contract that clearly spells out the specifics of the relationship. The contracts I use in my various businesses clearly define the services to be provided, the cost of those services, and the timeline and terms under which those services will be rendered. If there is a deviation from the contract, we write an addendum that details any changes and their effect on the contract. Do I still have to give some customers the boot? You bet, but not very often. It's hard for a customer to cry foul when everything is there in black and white right above his signature. What if your business doesn't use contracts? Then hang a poster in your shop or have a hand-out that clearly defines what your customer can expect from your business and then deliver what you promise. If you have a poster or hand-out that clearly outlines your services, your rates, scheduling, return policy, etc., there should be very little that the customer can complain about. I know, famous last words. Here's to your success!
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