Psychological Marketing Insights

Analyzing the Psychology of Business, Marketing, and Sales ...

the ‘Business’ Category

 

 

How to Know if a Prospect Will Make a Good Client

Wednesday, July 14th, 2010

In business I tend to hear a lot of complaints about clients.  Sometimes it is that they never pay.  Other times it is that they always call.  And still other times it is that they never call.  When your customers are causing you stress business can be a bit of a pain in the butt.

One of the best tips I have ever discovered on this matter was to choose your clients wisely.  We have all heard it said, but when you think about what that statement really means it makes you stop for a moment.  If you were to truly choose your clients wisely you could very well be turning away more business than you are accepting.  The checkbook doesn’t always like that.

But here’s the truth of it.  Most times a pain in the butt prospect is an even bigger pain in the butt client that will end up losing you more money in terms of wasted time or unpaid bills than had you not taken them on to begin with.

Here are some warning signs that a prospect will not make a good client.

1)  They ask you to send over a document that you have already sent over at least 19 times in the last week.  This shows a lack of organization.  If your project will need any amount of input from them beware as you may spend a lot of time tracking them down for needed items.

2)  They complain about anyone they have ever worked with and state that they have all “dropped the ball” or that everyone is incompetent.  While this may be true as there is a lot of incompetency in business, there comes a point when someone has to start looking at the common denominator.  It could very well be that the prospect is very difficult to work with and has unrealistic expectations.

3)  They ask for special billing arrangements.  Now, this in and of itself is not always a problem.  After all, there are many salespeople out there who have to provide very specific invoices to their accounts payable department.  However, there are also people out there that need the special arrangements so that they can “balance” all of the invoices coming in.  This may mean that they have debt problems and may potentially have problems paying you on time…or even at all.

4)  They are consistently late to meetings or phone calls.  Enough said here.  If you don’t value your time go ahead and take them on as a client.

Now, these are only guidelines as sometimes with some clever management these types of prospects will turn out to be great clients.  However, you must set very clear and precise expectations before going into a client relationship if you are to be successful with them.

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Gone But Not Forgotten

Wednesday, May 26th, 2010

Yesterday, was the 6 year anniversary of the day my dad lost his fight with colon cancer.  As anniversary days often tend to do, I was on a roller coaster of emotions throughout the day, but I seemed to be having a bit more trouble this time.  This year was a bit different as it was the first year that the anniversary fell on the actual day of the week he had passed,so I thought that maybe that was the cause.

Then, during a conversation with my mom it hit me.  I told Mom, “I just don’t ever want to forget him.”  You see, as time passes, memories fade, and while that may help with the sadness it can actually be quite distressing to think of forgetting my dad.

Mom’s response to me was, “And he didn’t want to be forgotten.”   While that may not seem all that profound it really struck me how true that is for all of us.  We toil through life to provide for our families so that we might leave a legacy that we will be remembered for once we are gone.

I think entrepreneurs have an extra dose of whatever it is that drives a person to leave a legacy behind.  That drive is what makes them stay up until all hours of the night working when other people with a normal “job” are resting peacefully in their beds.  Then when they do get to bed they toss and turn with all of the ideas and all of the possibilities for the future.  Then they get up early to begin working on their mile long to do list.  They do it for the hope that their wife will be able to stay home, that their children will have a better life, and so that they can make a mark on the world that will remain for generations.

My dad was a passionate preacher, a loving father and a devoted husband.  He built a home for us wherever the church took us.  He taught my brothers and I that no matter what the rest of the world is doing you have to stick to your beliefs.  He taught us not to be afraid of hard work and to always work to improve yourself and your situation.  There were times that he worked 3 jobs to keep us fed and clothed yet he always found time to work towards his dreams.   He had various business ideas that he started from carpet laying, to rentals, to an invention.

Throughout my life I played a variety of sports.  My dad was always on the sidelines pacing until the last minute.  Then, on the way home he would tell me, “You did a great job, but you can do better.”  At the time, it always bothered that he wasn’t happy with me the way I was.  Now, I realize that he was more than happy with me.  He was simply pushing me to never settle and to always grow.

While I may not always be able to remember the sound of his voice, I know that I will never forget his words of encouragement and of wisdom.  I only hope that I can leave half the legacy that he has left for me to follow.

What kind of legacy would you like to leave?  What are your dreams and aspirations?  What are you doing to reach them?  How will people remember you?

If you don’t know the answers to these questions I suggest you figure out what you want out of life and start working to achieve it.

To good memories,

Sarah

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All In A Day’s Work…

Friday, April 30th, 2010

To be honest, it can be very difficult to stay on track when running one’s own business.  Matt and I were discussing this just the other day during one of our infamous walks.

We have some friends who have recently decided to leave their jobs to start their own business.  They are a couple of months into this new business venture and have just recently shared with us how hard it is to get anything strategic done on the business between taking the kids to soccer practice, remodeling the bathroom, and getting the car worked on–not to mention the day to day business needs such as servicing clients and paying bills.

So what is it that takes a highly productive employee to a struggling entrepreneur?  Where is the disconnect in productivity levels?

It could be that in a job there is normally a much defined job description with a clear outline of what is expected.  In addition, when working in a job, an employee is not usually responsible for both strategy and day to day customer maintenance.  Also, there is the accountability of knowing that your boss or manager will be asking for results.

However, when working for oneself it is easy to get just enough done to get by…thus ignoring the strategy or business building pieces.  It is also a lot easier to let things slip as you have no one holding you accountable.  This is especially true if you have a home office as it is very easy to allow household tasks to consume your work day.

Here are a few tips to help keep you on track.

-It is vitally important to find other entrepreneurs with similar goals to help hold you accountable.  Some call this a power circle.  But regardless of what you call it, you need to have someone who understands what you are working towards to hold you accountable to reaching your goals.

-If working from a home office, set a schedule and stick to it.  Force yourself to get up at the same time each morning.  Take a shower and get dressed rather than just walking down the hall to your office in your Sunday sweats.  This may not seem important, but if you want to motivate yourself to work you must dress the part.  Believe it or not, your attitude is affected by what you wear.  (If you don’t believe me, think about how you feel when you wear your favorite outfit…I rest my case.)  Sunday sweats may be incredibly comfortable, but your mind associates relaxation with them, not productivity.

-Write out a job description for every job you find yourself doing in your business.  Include the tasks that you are responsible for when acting in that job title.  Then, allot time slots for when you fulfill that job.  For example, if 9am is always your Marketing Director job time, then line up a slew of marketing projects for that time and work through them.  If 11am is Customer Service Manager time then take off your Marketing Director hat and switch gears to handle any customer situations.  Compartmentalizing your day will help you give attention to each area of your business and not ignore vital areas.

-Examine your work environment.  How conducive is it to productive and efficient work?  Is it cluttered, thus causing you to spend more time looking for items than actually working?  Is it uncomfortable, causing you to want to spend more time on the couch than in your actual office?  Or maybe it is too comfortable and you find yourself falling asleep.  Are there a lot of distractions like a television, traffic noise, or constant interruptions from employees, children, or pets?  If you said yes to any of these questions, consider revamping your office space to make it easier to be productive.

Implementing just one of these tips will increase your productivity, but implementing all of them will cause a dramatic change in the way you work.  Be careful, productivity can be addicting!

Till next time,

Sarah

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Is it a bad economy, or is it you…

Tuesday, March 23rd, 2010

The other day I was in a nice restaurant during the NCAA men’s basketball tournament.  The place had multiple flat screen televisions and a few people watching basketball.

Just down the road there was a sports restaurant that was packed.

The first restaurant will no doubt blame the economy for his business being bad.  But what it him?  I’ve been there 30+ times in my life.  Not once has he attempted to get my contact information or given me an offer for a dessert after I was done eating.  If he had gotten several thousand email addresses he might be able to actually put together a promotion to pack the restaurant during the tournament.

Something that gave away prizes for the best outfit, people who picked the best brackets, people who chose the score correctly, and on and on it could have gone.

But he has no client database that I am aware of.  He just hopes that people come into his restaurant, instead of proactively scooping up all the people who do come in, and ensuring that they come in again and again by developing or building a relationship with them.

There is a famous phrase out there uttered by some politician or prognosticator or political analysts.  It reads, “Its the economy, stupid.”

In THIS case, it wasn’t the economy.  It was just someone being ignorant.  And being ignorant leads to stupidity…or at least in this case it did.

-Matt

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True analysis of business

Tuesday, February 9th, 2010

Challenge your assumptions, beliefs, and ideas about things.  So many times we (I do this too) come to conclusions based upon so much little data and only a small viewpoint of the world in which we live.

In other words:  our eyes deceive us because we don’t know what to look for, don’t know HOW to look at things objectively, and we analyze things based on such small amounts of data.

We jump to conclusions, and then let these conclusions define ourselves, our lives, our beliefs, our goals, and more.

This is why first impressions are so important because people make a decision based upon a little amount of “data” and then generally decide if they like the person for a long period of time.

It is REALLY hard to overcome these first impressions.

-M

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How to stop running out of time…

Tuesday, January 5th, 2010

Okay, I can’t add time to your day, at least not yet, but I can show you what has really helped us get more organized and be more productive.

Here’s the thing.  We all have things we must get done on a daily basis, and we all have things that need to be done on a weekly basis.

So, step #1 is make a list of everything that must be done on a daily basis.  No matter how big, make the list right now.  Then, step #2 is to make the list for weekly things.  Chances are, a lot of things you think that must be done on a daily basis are things that can really be done on a weekly basis.  Like checking your personal mail.  You can normally clump that into one day.  (unless there are checks, I always get those right away :)

Okay, so you have your two lists.

Here’s an example of some of the things on my daily to do list:

Exercise
Stretch
Read
Do some writing
Devotions
Check key #’s in the business (leads, inquiries)

and weekly things:

Send out referral thank you gifts
Mail out things
Pay Bills or Check Mail
Shopping for things

You can put personal and business stuff in there together, because honestly they will overlap in life, and this is amount time management in every area.

Now, you need to start taking 15, 20, or 30 minute blocks and block out the time for the things you need to do.  Does that make sense?

So, if you daily need to check your email, check it at 1:00pm every day for 20 minutes and get all you can get done in that time amount.

If you need to clean, I clean for 5 or 10 minutes every day 5 days a week.  Although we do have a cleaning service, it really helps keeps things organized.  I also organize paperwork 5 minutes a day, helps me stay on top of it.

The main thing you will find is not the complexity of doing it, it is the discipline.  So, what I like to do is reward myself and make this a game.

A little digital clock or timer, one that is sold for a couple of dollars, is also a great things to have on the side to keep you on track!

Also, it is very important you build in “catch up time” and not have every single 15 minutes spoken for.  Also, you should build in relaxation time, clearing of the mind time, etc.

Lastly, go easy on yourself to begin with.  Don’t beat yourself up if you are not 100% exact.  It really is amazing the productivity you will have, so get to it.

Ding, ding, ding ding, time to go!

Matt

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Think Happy Thoughts…

Thursday, September 24th, 2009

In order to truly be successful in business, it is important to dedicate some time for focusing and visualizing. Simply thirty minutes a day use all the feelings and concentration you can manifest and see, visualize, just what you want to accomplish. What results do you really want to see? Increase the time you spend focusing on these desires and you will be able to achieve them twice as fast.

Now, I don’t mean this in a voodoo type of way. Think of it like this. Remember back to when you were in Jr. High School. Jr. High was an awkward time for everyone. Kids are at that age when all they can see is all of the weird things happening to themselves. Because of this they think that everyone else is focused on these “flaws” with them. Girls are especially bad about this. They think that every kid in class is staring at the huge zit that just popped up on their forehead, when in reality the other kids are probably thinking of their own zits, their new braces, or the fact that they forgot to put deodorant on that morning.

Due to this short sightedness many Jr. High age kids can’t see all of the opportunity around them. They are simply so focused on the negatives that they physically can’t take in any more. Now, how do we translate that back to business? If you are so focused on all of the things that could possibly go wrong with your business, you will be unable to see all of the opportunity around you. Successful business people aren’t just “lucky.” They simply don’t allow themselves to be bogged down with all of the mental trash.

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Self Monitoring Your Behaviour

Wednesday, July 29th, 2009

One of the best pieces of advice I ever received in relationship management was from the mother of a boyfriend in high school.  She happened to also be a teacher at the school we attended.  After a brief conflict between my boyfriend and his well intentioned mother which ended in my boyfriend storming off, she looked at me with a sparkle in her eye and said, “He’ll be just fine after lunch.  I learned early to feed men when they start getting crabby.”

I have now brought that brilliant piece of advice into my marriage and into my business life.  However, Matt and I (being the psychological geeks that we are) have noticed that this is not just a male thing, but a human thing and that it encompasses more than just hunger.  We have observed that our decisions are impacted most negatively when we are hungry, angry, hot, lonely, or tired.  These are the times when we find ourselves wanting to toss in the towel or shut down.

Now granted, we have a bit of an advantage in that we are able to hold each other accountable when we notice the shift from being positive and motivated to being negative and sluggish.  (Just as long as it doesn’t happen at the same time.)  Often times we will allow each other to vent for a little while, but if it begins to become a “bitch-fest” we try to gently probe into one of these five areas and put some perspective on the problem.

And then of course we try to remedy the problem as quickly as possible so as to help with productivity.  Maybe it is taking a 10 minute break for a snack or a quick walk around the block.  Maybe a refreshed cup of Jo.  But no matter what we try to keep each other from wallowing in the negative state that not only kills productivity but makes you feel like crap.  (And let’s face it, when running multiple businesses, who has time to wallow?)

For example, today we were driving from one meeting to another.  It was extremely hot and humid and I was mentally exhausted after a great brainstorming session.  I started expressing doubts in myself and the entrepreneurial life.  Matt was great and listened to me for a bit and then gently (that is the key) reminded me that this was not me talking, but rather it was me being hot and tired.

And you know what?  He was right.  After a quick stop for some ice cold lemonade and mental rest I was back to my normal even-keeled self.

Are there times when you notice that you struggle most?  What are your triggers?  What are the triggers of those around you?  How can you help yourself and those around you when these moments hit?

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Are Your Customers Sttttrrreeettccchhhiinngg Their Dollars?

Friday, July 24th, 2009

There are many ways that I see people attempting to stretch their money during this recession. Some are planting their own gardens. Others are mowing their own lawns. Still others are washing their cars less.

One area that I noticed the other day was when I was at the hair salon. Like a good business, my salon asked me as I checked out whether I would like to go ahead and schedule an appointment for six weeks out. I didn’t have my calendar with me, so I passed. However, on my drive home it hit me that haircuts are probably an area that people are cutting back on.

Now, maybe they aren’t going so far as to change salons to save money, after all, most women won’t let just anyone cut their hair. However, if I were a betting woman I would guarantee that the majority out there are beginning to go every 7 or 8 weeks instead of every 6 like before. After all, how many women haven’t thought to themselves, “I’ll just wear a pony tail for a week if it starts looking bad.”

So, knowing this, what could a salon do?

My thought was that they needed to offer an incentive to schedule a 6 week appointment at the time of checkout rather than calling and scheduling at a later date. Maybe 10% off your haircut. Or maybe a free mini facial. The little bit the salon would lose from the discount would be more than made up for by the guaranteed customers.

Think about it this way. In my area an average cut and style at a middle level salon is about $40 including tip. So, if you consider that if a client comes to the salon every 6 weeks for a year that is 8.6 times. Obviously someone can’t go half a time, so we will round down to 8. So take 8 and multiply it by $40. That is $320.

Now look at if they had gone every 8 weeks instead. That is only 6 times in a year. That is $240…$80 less! And that is if they only get a haircut. Let alone any highlighting, waxing, extensions, manicure, pedicure, massage, etc. As I said, the small discount you give for them automatically scheduling it 6 weeks out is more than made up for with the increased frequency.

What ways can you keep your customers from stretching their dollar too thinly with your products or services?

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The Art of Running Through Life

Monday, July 13th, 2009

Yesterday Matt and I decided to go for a run.  Now, it was a little bit overcast when we made this decision originally.  By the time we had actually gotten around to putting on our running gear and stepping out the door their were little sprinkles coming down.  Not to be detoured, we simply grabbed some long sleeve t-shirts and went on our merry way.

Just as we pulled up to the starting area for our run, the heavens opened up.  Now let me tell you, we have run in some miserable conditions before, and I do mean miserable.  We have run when it is 10 degrees out with 30 mph winds.  We have run when it is 90+ degrees out with 90% humidity.  Those were extremely miserable runs.  But if there is one thing I don’t like, it would be being drenched.  I don’t know what it is about the feeling, but I just don’t like to get wet unless I am swimming or bathing.  Seriously, as laid back as I am, if Matt wants to get me riled up all he has to do is pour water on me.  So as soon as it started pouring down rain Matt and I looked at each other.

The decision point was now.  Do we drive around the block a few times to see if it slows down?  There was a split second of indecision and then Matt said, “Let’s just do it!”  And we were off.  We jumped out of the car and began our run.  And you know what?  After the first 100 yards it wasn’t that bad.  I mean, there comes a point when you can’t get anymore wet and you just sink into this feeling of, “Wow, this is crazy, but kind of fun!”

But you know what the best part was?  At the end of the run we looked at our time and we had beat our personal best time by over a minute and a half!

Now, I know you are saying, “Wow, Sarah, that is cool and all, but what does it have to do with my business?”  Well, I am glad that you asked.  :-)

Think about it like this.  In business, heck, make that in life, we have to work our way through a series of ups and downs, successes and failures.  Matt and I like to say, “Life is one crisis after another.”  It really is true.  If it isn’t your computer going on the fritz it is your key person getting sick the day of the presentation.  If it isn’t your tire going flat on the way to the airport and causing you to miss your flight it is your luggage getting lost once you actually get to your destination.

Life throws us curve balls.  During this recession, I hear a lot of business people saying that they are just going to stay out of the game for a while.  That is like trying to stay in the dugout until a new pitcher comes to the mound and there are better pitches to hit.  Well, I’ve got news for you.  If you don’t go up to the plate, you’ve got no chance of hitting anything, curve ball or no curve ball.  And if you don’t ever hit anything, you can’t win the game.  And if you think you are going to wait out the pitcher in the dugout or wait out the storm in your car, life will pass you by…and so will your competition.

So, get out there, pull on your running shoes and start splashing through some puddles.  You might get a little wet and uncomfortable for a bit, but once you get going you will realize that it really isn’t so bad.  Who knows, you might run your best time.

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