How to Increase the Number of Your Customers

How to Increase the Number of Your Customers • • • • Referral systems Buy customers for break-even upfront and make profit on the back end Guarantee purchases (risk reversal) and stand behind them Host-beneficiary relationships Advertising … Direct Mail … Telemarketing Go back and Reactivate old customers Run Special events or information nights Get better lists that better qualify your customers Develop a USP Client education to increase the perceived value of your product/service Public relations Under-promise and over-deliver (an awesome experience) Thank your clients for buying and offer help (overcome buyers remorse)

How to Increase the Number of Your Customers • Increase the Customer Retention Rate – – deliver service level higher than expected communicate frequently with your customers segment your customers compute the “lifetime value of your customer” and use it • Increase the Conversion Rate from Inquiry to Sale – – increase the sales skill level of your staff from training qualify leads up front make irresistible offers educate clients giving them “Reasons Why”

How to Increase the Average Size of the Sale (Transaction Amount) • • Use point-of-sale promotions Package complementary products and services together Increase your pricing (and your margins) Change the profile of your products/services to become more “Up Market” • Offer greater/larger units of purchase • Improve your sales team’s selling techniques to effectively upsell and cross sell

How to Increase Your Transaction Frequency • Price inducements for frequency • Communicate personally with your customers (by phone, letter, email) to maintain a positive relationship • Develop a back end product you can go back to customers with • Endorse other people’s products to your list • Run special events such as “Closed Door Sales”; limited pre-releases, etc. • Programming customers

Years ago I asked the top marketing mind in the country (the marketing genius behind Intel, Genentech, and Apple Computer) what was the key to effective marketing. And his answer was "one-hour per week. " What, I asked, does that mean? He simply said that the key to effective marketing is getting a handful of people in a room for one-hour each week and talk about what you could do next to drive your marketing strategy (which is different than a weekly sales meeting where you're reviewing sales numbers). Marketing is about getting the word out, generating leads, figuring out how to attract attention, getting media coverage, deciding how to position your product and services against your competitors - it's all messy stuff that just needs some jawbone time to sort out and be creative. At least every week ask one question "what do we need to do this week to get more warm leads, to get more people who are our target market to know about us. "

The Rockefeller Habits Three habits: 1) Having a healthy meeting rhythm - routine sets you free 2) Having visible metrics - ex. “profit per XX” 3) Establishing priorities, including an overarching theme. It’s important to always review and fine-tune the basics.

Healthy Meeting Rhythms • Weekly meeting Day • Annual 2 -3 day retreat to set strategy and Quarterly priorities, and annual 1 hour annual meeting with staff to explain • Quarterly 1 -2 day retreat - set next quarter’s priorities; set quarterly theme (or annual theme and quarterly sub-themes) • Monthly 2 -3 hour - Learning. Review what’s working and what’s not, focus on something • Weekly 1 -2 hour - tactics to implement Quarterly plan; pick one key subject each week --> huge results in one year • Daily 15 minutes - focus on 1 -3 numbers that give you the pulse of the business; clear issues that would clog weekly meeting

How’s Your Annual Plan? Does it. . . * Clearly state its main goal * Detail the steps to achieve it so that everyone who is meant to read it can understand it * Include all the anticipated costs * Make a convincing case that the reward is worth the risk * Outline a way to measure success and evaluate performance * Begin or end with a concise summary -- one that can be repeated from memory fairly easily

A “Great Place to Work” Study Results 1) Work challenging and interesting, with purpose 2) High level of trust and support (managers didn’t criticize people for making mistakes - very important) 3) People felt they “were in the know” (company had wide open communications and all felt as participants) 4) People felt their boss cared about them as a person (considerate, courteous, kind) 5) The happiest people knew what they were supposed to do, what standards were expected and time deadlines 6) People felt there were opportunities for advancement through hard work and excellent performance

So Create a Great Environment. . . Which is productive, performance oriented (gets results) and supportive so that people are enthusiastic and have high morale • So as leaders, don’t blame others but accept the blame yourself • Lead by example and be role models (“What type of company would it be if everyone was like me? ” If that happened, make sure it’s a great place to work. ) • Be open to new ideas all the time, try something new without guarantees. Seek new ideas everywhere. Encourage open discussion. • Be very action oriented -- always on “continuous offensive” (sense of urgency and bias for action) • Resolve to build a happy, exciting, high energy, high profit organization

Training Pays IBM - gets $26 back for every $1 spent Xerox - gets $24 back for every $1 spent Motorola - gets $33 back for every $1 spent The top 20% of companies in America spend 3% of gross revenues on training. The best companies spend the most on training.

Leaders Should Not Immediately Push their Own Ideas 1. You get an idea. Now sleep on it. 2. You relate it to someone whose opinion you trust. You go back and forth with him on it till the idea has been whipped into shape. 3. You try out the idea on one or several more people, preferably influential people who will participate in its execution. Again, you make whatever improvements make sense. 4. Backed by a strengthened, streamlined idea and the support of several key people, you use every trick in your bag and all the muscle you can muster to get the project done as soon as it can be done properly.

Leaders Without Support People decide to follow your leadership for two primary reasons: They trust your character, and they believe you have the ability to take them further. If you have trouble rallying the troops, ask yourself these critical questions: • 1. "Is this idea one that will make things better for others (customers, constituents, clients, etc. ), or am I pursuing it for some personal/selfish reason? " • 2. "Have I given this idea a reasonable level of scrutiny? Have I subjected it to a critique by at least one person whose judgment I trust? " If you want to be a great leader, the most important thing you can do is spend most of your time thinking about how you can make things better. Once you have an idea that you feel good about, enlist the support of several important and/or influential people and then drive, drive it through.

Stop Doing Lists • Stop doing business with certain customers or suppliers • End certain product lines that drain resources • Stop putting up with certain hassles or mistakes • Stop certain billing practices that cause cash flow delays Example: Parents stop children from doing too many activities so they can focus

The 9 Strategic Decision Filters From the work of Dr. David Maister of Harvard. • • • Most likely to occur Biggest overall impact Quickest impact Most permanent impact Least disruptive to existing operations Most visible to key shareholders Quickest payback Least upfront costs Easiest to implement

Employee Appraisal - Performance Review Here's a sensible way to make the confrontation positive: * Call him in for a special meeting. Make him sit across the desk from you. Let him know by the feel of things that the meeting is important. * Ask him politely how he is doing. Then ask him to tell you what he considers to be the most important things he does at work. Take notes. * Ask him what he thinks are his strongest qualities as an employee. * Ask him what the goal of the business is, as he sees it. • Keep the questions positive and continue to take notes. Then end the meeting. He will probably be a bit perplexed as to your intentions. If he comes out and asks, say that you want to understand what motivates him and how his ideas correspond with your own. Say nothing else at that time. Just let him go home and stew about it. • You may be surprised to find that he improves immediately. If he doesn't improve, call another meeting several days later and put him on notice. Make precise complaints and specific requests. Follow up with a written notice. • If this doesn't work, fire him.

Performance Review Point out an employee's shortcomings and motivate him to make improvements at the same time. * Begin by identifying something or several things that the employee has done well. Be specific. Tell him how these good actions positively affected the business and why you appreciate them. You might even ask him to explain how he accomplishes what he does, to give him a chance to dwell on his good behavior and begin to take pride in it. * Then tell him your complaints. Again, be as specific as you can. Try not to generalize. As you did with the positive acknowledgements, tell him in what way his undesirable behavior affects the business and why you don't like it. * Explain that these negative behaviors have resulted in an overall rating of "competent" (or whatever). Tell him that you understand he may not be happy with a "competent" rating and that you are pleased to know that he feels that way. * Finally, suggest several specific things he can do within a given period of time to improve his performance. (If he's not interested in changing, you should put him on your "tofire" list. ) * Consider asking him to rate himself and give him three choices, one of which is "competent. " Most times, you'll find that an employee will give himself the very rating he would resent hearing you ascribe to him. In any case, you can use his answer as a jumping-off point for a discussion of his specific strengths and weaknesses.

Our Unconscious Mind - Creating Lasting Change a) Our unconscious mind is rigid and doesn't change easily. So changing our own behavior is hard. We have to first overcome behaviors that our unconscious mind impels us to do. You have to set certain objectives and then start working on them. Your unconscious mind needs to be reprogrammed (SWISH, autosuggestion, meditation) because it is wired to survive and sees change as unpredictable and fear-producing. b) Our unconscious mind doesn't "think, " it reacts to stimulus. It might be right or wrong. c) Our unconscious mind is like it is because of genetics & its adaptations to the environment around you. (It's drive is to keep you alive. ) d) Our unconscious mind takes control of almost all procedures (like playing tennis, swimming, walking, breathing, your job, sending fear signals to consciousness whethere is anything to truly be afraid of or not). e) Our unconscious mind is different in personality and function from our conscious mind. f) Our conscious mind makes choices between two or more options.

g) Our conscious mind is intelligent but fairly impotent from a "will power" standpoint when compared to the unconscious mind. h) Our conscious mind can respond in communication. Even in hypnosis, the unconscious mind for the most part remains silent. i) We don't know ourselves well because we can't truly know our unconscious self that drives our behavior through personal insight. j) We can know others far better than we know ourselves because we can see how they behave (what they do). k) We have inflated opinions of ourselves and more accurate opinions of others. (On average, we think we are good looking, intelligent, kind, helpful, compassionate to a far greater degree than others perceive us. ) l) We are incredibly poor at predicting how we will feel in the future. m) We are poor at predicting how we will behave in any given set of circumstances. n) Our conscious mind and our unconscious mind have two distinct personalities when measured by psychological instruments and the two often conflict with each other.

How to Stand Out From the Crowd by Being Better - Just Do a Limited Number of Things Well Most employees, even hard working and well meaning ones, are often late in their deadlines … beset with decision making problems … and get flustered, depressed, or downright angry now and then. Put yourself above the pack by exhibiting behavior that sets you apart and tells everyone who is looking, “This person is headed for the top”: • • Never mention a problem without mentioning 2 -3 solutions Never ignore a problem that affects your work When presenting your ideas, make sure your key facts are unimpeachable Commit to doing work even before it’s requested of you -- and then don’t miss your deadlines • When trouble hits, maintain a strong and steady demeanor. Show everyone how you’ll act when you take over the company

How to Get a Raise • "You can't earn a high income, consistently, unless you have a financially valuable skill. To merit a lot of money for your time, you must do something very well that creates value for others. " • In business, there aren't a whole lot of financially valuable skills to choose from. Though it's good to know how to analyze a spreadsheet, write a balance sheet, or engineer a new design, if you want to break into the big bucks at work, you are almost certainly going to have to start doing at least one of the three things businesses traditionally pay big bucks for: * selling * marketing, and/or * managing profits

How to Get a Raise. . . • Make a RESOLUTION to be more valuable to your boss and your company. Do it now. Write it down. • Make a RESOLUTION to develop one or more of the financially valuable skills (selling, marketing, managing profits) • Make a list of 12 or more ways you can please your boss and improve the business. Write these down. And pick one as a MONTHLY OBJECTIVE. • Figure out some way to COMMUNICATE to your boss or company president that you want to make a bigger contribution this year.

Acknowledge Behavior to Get More of It • If, for example, you want your assistant to be better organized, praise her when she performs an organized task. Praise both the thing she does and -- if the action merits it -- tell her you think she has a special talent for that kind of organization. • If you want your spouse to have better table manners, stop criticizing him when he wipes his mouth with his hand. Instead, wait for the rare moment when he does something right -- perhaps cuts and eats his steak properly -- and compliment him on how he does it. • The seed is planted when a specific compliment is yoked to an overall character assessment. Example: "That outfit looks good on you, Jane. You have a real talent for selecting elegant business attire. " • Here's the trick about acknowledgment: It doesn't work if you fake it. • If you want your partner to be more punctual, it won't do to simply tell him you think he has a talent for being punctual. You will have to wait for him to be on time (you can only hope that day will come) and pay him the compliment then. And then make it something you mean, such as, "It made me feel good to see you here at 8: 00 a. m. this morning, George. And since you are someone who really cares about having good meetings, I can see how getting here on time would help achieve that goal. "

4 Areas for Goals • Make 5 year goals: 1. Wealth (your business and your investments) 2. Health (mental and physical) 3. Wisdom (your intellectual pursuits) 4. Social interaction (your society, friends, and family) 5. Legacy (what you leave when you die) • Imagine your completed them … what new skills, attitudes, abilities will you have?

A Manager is a Good Learner If you want your business to be flexible enough to change and grow with changing market conditions, you need to encourage an atmosphere in which learning is appreciated. The best way to do that is by example -- to demonstrate to your employees that yourself are interested in learning. 1. You must be excited, not threatened, by new ideas. Managers who see innovation as another way to diminish their power make a grave mistake. If you are dedicated to your company's growth and willing to work hard to achieve it, any new change will only make your position stronger. 2. You must recognize your personal prejudices and admit them to others. Biases in business are suffocating. They make you blind to good ideas and get you to spend time and money on farfetched disasters. 3. Stay humble. Remember that all the most important business knowledge is temporary and your best ideas today will sometimes stop working. By staying modest about your accomplishments, you will build a basis of support in the organization that will help you later on.

The 11 1/2 ”Weird" Ideas for Promoting, Managing and Sustaining Innovation (1) Hire smart people who will avoid doing things the same way your company has always done things. (1 1/2) Diversify your talent and knowledge base, especially with people who get under your skin. (2) Hire people with skills you don't need yet, and put them in untraditional assignments. (3) Use job interviews as a source of new ideas more than as a way to hire. (4) Give room for people to focus on what interests them, and to develop their ideas in their own way. (5) Help people learn how to be tougher in testing ideas, while being considerate of the people involved.

The 11 1/2 ”Weird" Ideas for Promoting, Managing and Sustaining Innovation (6) Focus attention on new and smarter attempts whether they succeed or not. (7) Use the power of self-confidence to encourage unconventional trials. (8) Use "bad" ideas to help reveal good ones. (9) Keep a balance between having too much and too little outside contact in your creative activities. (10) Have people with little experience and new perspectives tackle key issues. (11) Escape from the mental shackles of your organization's past successes.

Stages of Innovation Fringe => Edge => Realm of the Cool => Next Big Thing

A ONE-HOUR, SIX-MONTH PLAN THAT WILL MAKE SUPERSTARS OF YOUR BETTER-THANAVERAGE WORKERS • If you want to get the most out of your employees, challenge the best of them to do even better. Focusing energy and time on the bad apples is a waste of time. The middling group will improve when they see the star performers improve. Here's one exception/addendum: • Every so often (maybe once a year), select a handful of employees who are at the very top of the average range. Allocate a limited amount of time (one hour might be enough) to see if you can push one or two of them up a notch. Tell them that's the purpose of the meeting. And then ask them the following four questions: 1. "What are you doing now that you should stop doing? " 2. "What are you not doing that you should be doing? " 3. "What are you doing that you should do more of? " 4. "What are you doing that you should do less of? ” • In each case, ask the employee to try to define -- as specifically as possible -- what would happen if he followed his own advice. Have him write it down. Ask him to report back to you on these things every month for six months.

How to Become the No. 2 Man • The path to success lies in becoming No. 2. Set your goal to be the top man's No. 2. And do a great job of it by doing the following: • Compliment him. I'm not telling you to be a "yes man" and I'm not telling you to fawn [see "Word to the Wise, " below] -- but find out what he's great at and tell him how much you admire him for it. Ask to be his protégé. Do this earnestly. If you fake it, he'll know. • Complement him. Find out something he is weak at and learn to do that well. If he's great at big ideas and short on follow-up (a very common leadership characteristic), become great at follow-up yourself. • Disagree with him. Not all the time -- and only when you are sure he is wrong. Have the facts at your disposal and have at least two alternative ideas handy to offer when he accepts your correction. Don’t be a useless “Yes” man. • Be loyal. This is the No. 1 rule for being a good No. 2. Find out what he really wants in life (and in business) and make that your primary business goal. You must operate in support of his goal even when he's not watching. The only way you can do that is by making it your top goal too.

Make Your Points Stand Out During Presentations Add power to your meeting and seminar presentations by beefing up your major claim in three ways: (1) Provide a startling fact to grab attention. (2) Use an analogy to make your point believable. (3) Provide an historical example of your point to give it credibility.

3 Simple Ways to Make New Employees Feel Welcome Make new employees feel welcome by doing three things: • 1. Appoint top-performing employees to be their buddies -- to have lunch with them every day for the first week and introduce them to other employees. Assign mentors. • 2. Have a welcome package waiting on their desk that includes information about the business, their department, their job, and something fun and frivolous. • 3. Make sure they spend at least a half-hour with all their bosses as soon as possible.

Hiring Top Replacements • If you work hard on the hiring process and fire hires that turn out to be weak, you should end up with a core group of about six superstar employees. Insist that every one of your superstars hires at least one superstar himself. • Start today by making a list of your core group and then asking them to name their top people. Challenge them to rate those second-tier superstars in terms of intelligence, tenacity, work ethic, and anything else you know of that is important in your business. • Set high standards. Tell your superstars that unless they have at least one employee who is as good as they are, they haven't done the right thing. Explain how having them in your employ has helped you and the business grow. Tell them that the same good things will happen to them. • Some superstars don't need to be told to hire superstars. Some do. Don't leave this all-important task to chance. • If top-notch talent is limited to a single level -- the one directly below you -- your business will never be able to reach its potential. New projects and possibilities will either fail or be put off indefinitely because your best people will work themselves into stagnation.

Get the Firm Moving Again Your top people have a long list of important projects to work on -- but instead of making progress on them, they're spinning their wheels. Here's an idea to get things rolling again. • 1. Get all the people together in a room. On a blackboard or display panel, list every important project they're involved with and have each person rate each of the projects in terms of how important he thinks it is to the future of the business. Post the results on the board. What you will probably find is that there are differences of opinion as to how important certain projects are. Discuss the individual results. Talk about the differences and resolve them. • 2. Now, have each person make a list of any other projects he feels would be important to the company -- projects not on the previous list. Post these lists on the board and ask everyone to rate these additional projects in terms of priority. Post the results on the board, discuss the differences of opinion, and come to a resolution. • 3. Finally, integrate the two lists. What will emerge will be a new list of business priorities with a unified idea of which are the most important.

The Stages of Learning Abraham Maslow • • Stage 1 - unconscious incompetence - you don’t know Stage 2 - conscious incompetence - now you know you don’t know Stage 3 - conscious competence - you learn how to do it Stage 4 - unconscious competence - you master the process The 5 Stages of Learning 1. Exposure 2. Repetition --> memorization 3. Utilization 4. Internalization --> habit 5. Reinforcement

Human Beings Retain: 20% of what we hear 20% of what we see 50% of what we hear and see 85% if we get involved!!! 4 Formats to Teach People 1. Lecture format - the “data dump” 2. Group questions - ask the group questions 3. Group discussion 4. Workshop - you work on an issue in WRITTEN FORMAT Strategy for Teaching (remember only 10% of people are natural learners) 1 st time - is a DATA DUMP 2 nd time go SLOWER 3 rd time - BREAK DOWN concepts into USEABLE CHUNKS Tribal (Chinese) vs. Institutionalized training - inconsistent performance and it degrades over time

Possible Solution Workshops • • • Getting / attracting more clients Make clients buy faster - closing sales faster / better/ smarter Workshop with sales team to improve closing ratio Shipping department to improve shipping Overcoming objections Getting more referrals Activities that waste time - consolidate /eliminate Better relations with government bodies Improved record keeping What training do we need to become more effective? Increase cash flow

China The Next Superpower … It’s Already Started (remember Japan? ) • • • 50% of cameras sold world-wide 35% of televisions sold world-wide 30% of air conditioners sold world-wide 25% of washing machines sold world-wide 22% of refrigerators sold world-wide One Chinese company produces 40% of the microwave ovens sold in Europe every year • Wenzhou: 70% of world’s metal cigarette lighters

GOSPA • GOALS - a place you want to end up at the end of a certain period (a certain sales level or profitability level) • OBJECTIVES - sub-goals you must accomplish in order to achieve your goals (in the areas of sales, distribution, staff development, technology installation, cost control, manufacturing, …) • STRATEGY - the method you’ll use to accomplish your objectives on the way to the goal (ex. build an internal sales force, outsource selling to an external organization, …) • PRIORITIES - the things you’ll have to do first and second, what’s more and less important • ACTIVITIES - the specific day functions delegated to specific individuals with deadlines and standards of performance

You are a Good Leader if Your Employees: Employees * Have confidence in one another's skills and abilities * Believe they can count on one another * Listen to one another's ideas * Recognize one another for their contributions * Are comfortable admitting failure * Are open to ideas from people at every level * Honor agreements and commitments * Provide one another, and you, with honest feedback

3 Ways to Keep Track of What Your People are Doing * Maintain a one-page list of assignments for every executive who reports to you. Keep each of these pages (there should be no more than six or seven of them) on a clipboard for easy reference. * Before you let anyone go on vacation, make sure he leaves a clearly laid out sheet of instructions as to what needs to be done while he is gone and whom to contact in case any emergencies should arise. * When delegating tasks, use some sort of organizational system to keep track of the delegee's responsibilities and progress. Either a file folder or a notebook with tabs will be effective. The trick is to make it a habit to use it. * Also, monitor their To Do lists

Thinking About Goals • What are the top 10 places you want to visit before you die? • What 10 events would you really like to experience first hand (they’d be so awesome that you’d talk about them for the rest of your life) • What 10 skills would you most want to acquire? (what do you want to become excellent at? ) • What does your dream home look like? (number of rooms, flooring, square footage, color of the kitchen, neighborhood, …) • How much money would you like to earn per year? • What would your family like to experience over the next 5 years? • What 10 toys would you most like to own? • What 5 things would give the greatest sense of accomplishment in your business life? • What 10 things would give you the greatest sense of accomplishment in your personal life?

Some Goals Require Partners If you want to increase your chances for success, partner with someone who will work with you toward your goal. The myth of “individual genius” is destructive - two heads are better than one. • 1. Review your four life goals and identify the ones you don't have partners for. • 2. Think about what you need: an equal partner, a mentor, a coach, an editor, a cheerleader, or whatever. • 3. Survey your friends and colleagues to determine if any of them would be a suitable partner. • 4. Commit yourself to getting a partner.

DALE CARNEGIE'S 10 RULES FOR GETTING OTHER PEOPLE TO LIKE YOU AND SEE THINGS YOUR WAY 1. Never say, "You're wrong. " 2. Never get yourself into an argument. 3. When wrong, admit it immediately. 4. Begin all conversations in a friendly way. 5. Get the other person to say "yes" as soon as possible. 6. Let the other person feel that your idea is his own. 7. Be sympathetic with the other person's fears and desires. 8. Talk in terms of the other person's interests. 9. Give honest, sincere appreciation. 10. Smile.

Some Things to Make this a Better Year * Think "What more can I give? " as opposed to "What more can I get? " * Focus on opportunities, not problems. * Listen first, talk later. * Criticize only when you can do so lovingly. * Resist the temptation to gossip. * Work to do good first, to make profits second. * Be loyal. * Be grateful. * Complain about nothing. * Be kind to those you love and kind, too, to those you don't.

Use these 4 P’s to Sell Your Ideas Such as a new product idea or strategy 1. Describe the PROBLEM. Start by presenting the problem by drawing a picture of it. Provide details so that your listener can see, hear, feel, and even smell the problem. If they feel PAIN, they’ll want to do something about it. 2. Make a PROMISE. Next, present your solution. You can do this in one of two ways: (1) by making an assertion about how things can be better, or (2) by asking an enticing question, such as "Wouldn't it be great if one day we could …? " Be sure your promise is expressed in a way that pleases your listener. 3. Draw a PICTURE of the Solution. After you have made the promise, turn it into a pleasing picture by drawing in all the beneficial details -- all the specific reasons why things will be better when the solution (your objective) is realized. As you speak, try to get affirmative responses (i. e. , "Yes, that would be nice. "). 4. Make the PITCH. Only after you have your listener emotionally hooked and he is verbally "yessing" you (see above) do you make the actual pitch. The pitch should begin with a strong, simple statement of what you propose to have done. Make the statement and then provide plenty of specific, logical proof to back it up. Use data, authoritative sources, anecdotes -- whatever it takes -- to make an irrefutable rational case. Then, restate your proposition simply and strongly.

Marketing Review - Growing a Business • 3 Ways to Grow a Business: – (1) get new customers – (2) raise prices – (3) get old customers to buy more frequently • Ask yourself: – – – How many customers make a second purchase from you? On average, how long do you wait before they make a second purchase? How many referrals do you get from each customer? Do you get referrals automatically, or do you have to beg for them? What percentage of your clients renew with you each year? What is the lifetime value of a client to you?

Marketing Review - 6 Strategies to Keep Customers for Life 1. Under promise and over deliver 2. Guarantee your services and honor your guarantee 3. Thank your customers for buying from you and offer them help with using your product or service immediately (spend money on this to create life long customers and friends) 4. Send your clients a monthly newsletter to keep in touch 5. Segment your clients into 4 distinct groups (find the 20% that buy 80% and treat them like gold - premium service like airlines) 1 (least profitable) … 4 (most profitable) 6. Always ask yourself how you can give more and still make a good profit

USP Characteristics · Simple - usually one sentence · Believable – a promise you can fulfill · Communicable - It is clearly written, so that anyone can understand it. Everyone on your team needs to be able to articulate it easily. · Memorable message and motivating / compelling - slogan · Unique – no other competitor owns this in the customer mind; Differentiates you from competitors, sets you apart from the others · Grabs attention · Advertises a benefit - Bold and assertive · Don’t try to please everyone (some customers you don’t want) – USP enforces focus

USP - Possibilities to Consider · · · · · Do you have an exceptional guarantee? Do you offer discounts for volume/frequent purchases? Do you provide very good service? Do offer the very best price? Do you offer greatest selection, or more options? Have assistance readily available 24 hours a day? Do you offer help after the sale? Provide customized service? Offer free shipping? Better credit terms? · Do you offer more bonuses or freebies than your competitors?

"DIAMONDS ARE FOREVER" (De. Beers) -- Diamonds, says the love her forever. And for that, she'll reciprocate in kind. Isn't that a benefit? "JUST DO IT" (Nike) -- Sick of buying exercise bikes and diet books you never use? Here's your chance to escape your own lack of initiative and unleash the athlete within. "THE PAUSE THAT REFRESHES" (Coca-Cola) -- It couldn't get more straightforward than this. Quick, delicious relief from a hot summer day and your otherwise hectic life. "TASTES GREAT, LESS FILLING" (Miller Lite) -- In these famous ads, celebrity Miller drinkers debated not one but TWO benefits of the product. Pure genius. "WE TRY HARDER" (Avis) -- They tried harder to please you, said the ads, because they needed to compete for your car rental loyalty with #1 Hertz. Talk about turning lemons into lemonade. "GOOD TO THE LAST DROP" (Maxwell House) -- A consistently great-tasting cup of coffee, even and smooth and aromatic. Every time. Every coffee connoisseur's dream. "BREAKFAST OF CHAMPIONS" (Wheaties) -- Again, no need to dig deep. Eat Wheaties and you'll be like Jenner, Jabbar, and all the rest of the world's great athletes. "DOES SHE. . . OR DOESN'T SHE? " (Clairol) -- Subtle, but here's where the picture that came with the ad made a big difference. Perfectly colored hair. . . or was it natural? Who cares, as long as nobody else can tell! "WHEN IT RAINS IT POURS" (Morton Salt) -- This never meant much to me. But it meant a lot to people who remembered how salt used to clump in the shaker even in the slightest humidity. To them, the benefit couldn't be clearer. "WHERE'S THE BEEF? " (Wendy's) -- Clara Peller, little old lady who made millions of sales for Wendy's, did so with this line -- showing just how other fast-food offerings came up far short to Wendy's big, juicy burgers. A benefit made clear by comparison. -- John Forde

• Collins and Porras conclude, “[T]he continual stream of great products and services from highly visionary companies stems from them being outstanding organizations, not the other way around. ” –

Strategies for Uncovering Unique Benefits • Against a Competitor or a Category – Avis vs. Hertz rent-a-car: “We’re No. 2. We try harder. ” – Seven-Up vs. Coke: “The Un-Cola” • Reposition the Competition - Make them the villain rather than the benchmark of good performance – Aspirin can irritate the stomach. Luckily there’s Tylenol. • Focus on the Problem - to sell a photocopier, advertise that it can place an automatic service call when it breaks down so it has less downtime • Better Value - advertise your location, warranty, free delivery, lower price, . . . • Users and Usage - dramatize the 20% of the 20/80 rule so as to attract others like them to you; use a high profile spokesperson from their group

Jimmy Rogers, famous investor: “Teach your children Chinese. ” The 21 st Century belongs to the Chinese. Why? Lower costs. The Chinese work very hard. They think entrepreneurally. They are extremely motivated. They will delay current gratification for tomorrow’s benefit. The overseas Chinese provide excellent examples of success.

The 5 O’s => lower wages and deflation • Overproduction - Everyone is a producer now. There are more products/services now than can be consumed. The USA has exported technology and education and funded this overproduction by buying overseas products, and other countries have used this money to build up their production facilities. Quality and low price win. • Overcapacity - There is now a worldwide glut of production facilities. More is produced than all of us can absorb. Supply > Demand. • Open Markets (Globalization) - All markets are now open and competing with each other. It’s a borderless world where goods and services flow freely, unbound by old rules. No job is safe. • Overpopulation - With 6+ billion people, companies freely exploit this labor pool without regards to geography (Africa in 20 years may be the low cost producer). • On-line (Internet) - People shop everywhere for lower prices.

Special Conditions • China and India - “Half price countries. ” India provides low cost software and technology. China provides low cost labor. They are not “superior” because of “culture. ” It’s only cost. In fact, 100 and 20 years ago Asia felt it was behind because of culture. • Deflation - In deflation, consumers always wait for lower prices (let’s buy -> let’s wait). Debt becomes more difficult to carry because no one is buying or borrowing, so the money supply shrinks (fractional reserve banking system) because it doesn’t circulate. Debt becomes almost impossible to finance in a real deflation. Competitive currency devaluation makes deflation even worse. • The Stress of having to produce with lower prices makes no job safe in advanced economies, and stress and mental illness will replace cancer as the leading problems of this century. The best cure is prevention by teaching people meditation and how to manage their minds.