All businesses solve problems or help fulfil the desires of their prospects and customers - or at least they should! So why do some customers buy from you and why don’t others?

It doesn’t matter what industry you are in, with the 'giving people what they want' principle there is very little difference between any and all types of businesses. It is these general principles that we will look at here.

If you want to attract prospects and get a good percentage of them to buy from you over and over again, you must give them what they want. If you don't, they won't do business with you and they will continue to search for another business that will give them what they want. So if you can determine what people want and then give it to them better than your competitors then you are well on your way to success.

Q - So how do you get to understand what people want?

A - Put yourself in their shoes.

The following series of questions are designed to illustrate the main points that you can apply to your business – from your customers point of view:

When it comes to choosing a business to buy from, would you want?

A business that is far away from you and inconvenient?

OR

A business that is close to you and convenient?

ANSWER: They WANT convenience (Location, Location, Location)

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A business that has only one solution (products or services)?

OR

A business that has a variety of solutions for you to choose from?

Answer: They WANT variety

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A business that gives you less value for your money?

OR

A business that gives you more value for your money?

Answer: They WANT more value, never less value (bonuses, gift, rewards, more product or service for same price, etc.)

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A business that treats you like you are an inconvenience and a bother?

OR

A business that treats you like you are vital and important to them?

Answer: They WANT to be treated like they're important

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A business that doesn't give you free information to help you make a good purchasing decision?

OR

A business that gives you plenty of free information to help you make a good purchasing decision?

Answer: They WANT free information

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A business that treats you like you are invisible and keeps you waiting and waiting before acknowledging you?

OR

A business that treats you like you are important and acknowledges you immediately?

Answer: They WANT to be acknowledged immediately

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A business that has only one way for you to pay?

OR

A business that has multiple ways for you to pay?

Answer: They WANT multiple ways to pay

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A business that looks unprofessional, disorganised, and dirty?

OR

A business that looks professional, organised and clean?

Answer: They WANT professional, organized and clean

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A business that never follows up with you to ensure that you are happy with their service?

OR

A business that follows up with you to ensure that you are happy with their service?

Answer: They WANT to know that you care enough about their business to follow up and ask

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A business that never rewards or shows appreciation to you for being a long-term, profitable customer?

OR

A business that regularly rewards or shows appreciation to you for being a long-term, profitable customer?

Answer: They WANT to be recognised and rewarded

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A business that makes it difficult to learn about the features and benefits of their products and services?

OR

A business that makes it very easy to learn about the features and benefits of their products and services?

Answer: They WANT easy ways to learn about the features and benefits of products and services (think Product / Services information sheets, FAQs, and web sites, etc.)

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A business that has inconvenient hours of operation designed to keep the owner and employees happy?

OR

A business that has convenient hours of operation designed to keep the customers happy?

Answer: They WANT convenient hours that keep them happy

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A business that refuses to stand behind their products and services with a solid guarantee?

OR

A business that does stand behind their products and services with a solid guarantee?

Answer: They WANT to know that they aren't going to get ripped off.

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The answers to most of your marketing questions are within this list. People want to be treated with respect, to be treated like they are important. They want to get the best value they can for their money. They want convenience. They want to know that they can trust you and your company, etc. This list of human wants in relation to choosing businesses to buy from is at the heart of your business success.

Don't make an error in thinking that 'I don't make any of those mistakes - I'm perfect!' You may think you are but your customers and your sales and profits are perhaps saying you are not.

The message is that prospects and customers always want the same things, and neither business owners or employees always think about what the prospects and customers want. Look objectively at your business and your marketing as a customer would, not like an owner would. Make it your committed purpose to find weaknesses that you could improve.

1.  Plan

 Be Prepared! Plan meticulously. Knowledge is power, especially in a negotiation! More deals go wrong because of the lack of preparation than for any other reason. Before you start, be absolutely sure to separate out your 'must haves' from your 'would likes' - and don't confuse them! Try to find out what theirs will be, too. How important is this deal for each party, and how can you build your power base? Whom will they field – and whom should you? What is their probable opening position – and what should yours be?

2.  Be realistic

Is a deal possible? Negotiate only when both parties are willing in principle to do a deal and have the authority to do so. This means that both parties must have the power to vary the terms of the agreement. If one side does not have this authority, the other side should insist on talking to whoever does. And if a deal is not likely to be possible, consider investing your time better elsewhere?

3.  Aim high

Be brave in seeking concessions from the other side. If you don't ask, you won't get! One of the key skills in negotiation is to ask for as much as you can. And more? So be ambitious - aim high. If you don't ask, you won't get! And remember? You only get one chance to do this and retain goodwill? – at the beginning!

4.  Get the issues out early

Get their whole picture before you discuss the detail, so insist on establishing all their demands at the start. That way, you can prevent them raising new issues later on. So ask: "Is there anything else you want to cover?", before moving on. This does not mean you will have to agree with all their demands, but it will help you to build a better relationship with the other side and help you to avoid personalized and unfruitful argument. (Remember, most people would rather be understood than win petty gains?)

5.  Clarify the real issues

Go on - ask them! Most negotiators will boost their case as much as they can, but not all the points they make will be equally important to them. Find out which are their real issues (and 'must haves'), and which are secondary and less important, or even manufactured to strengthen their case?

6.  Don't take your first offer

Be ready to decline their first demands, and their first offers. Their first bid has to be their best bid (for them!), just as yours was for your side. Even if you don't think you have a good case to refuse their first offer, you may well be pleasantly surprised at the other side's willingness to settle for something less than they hoped for to win agreement.

7.  Remember the whole picture

Keep the whole package of proposals in mind. That way, where you have to concede on one issue, you can reasonably ask for them to concede on others. So deal across a broad front rather than point-by-point. Don't let your side be 'salami-sliced'! Don't forget? - the more you give, the more they will want!

8.  Don't give away freebies

So never give something for nothing! Always seek something back in return, whenever you are asked to concede something. Remember, negotiation is the resolution of conflict by the exchange of concessions, not gracious collapse! Keep looking for new variables, which may keep you happy, or them!

9.  Remember the 4 'P's

Stay Positive, Patient, Placid and Planned. While you need to truly believe in your proposition (be Positive!), many deals will take longer than you have thought (be Patient!), and the other side may well try to destabilise you (so stay Placid!). And back to Tip 1 – keep in mind your 'must haves' and your 'would likes' (so remember your Planning!).

10.  Have you really agreed?

Check that both sides are agreed on what you have eventually agreed. If you don't do this, the deal may easily fall apart if there have been any misunderstandings, with a consequent loss of goodwill. And leave them feeling they have won a good deal. If they don't think they have, it may not stick?

Create an irresistible offer.

You have to give McDonalds credit for the "supersize me" offer. It may only generate another 40p per sale, but because it's such an irresistible offer, more than 30% of customers will say yes. And that 40p is almost all profit, as the company's fixed costs have already been absorbed in the price of the smaller item. The scale of the offer must be relative to the purchase, but once you have acquired the customer you can start to create lifetime value.

Get them hooked with a free sample.

Prospects that test your product or service risk-free will hopefully recognise its value and continue purchasing what you offer. Or even better, your prospect will get "hooked" on your product or service and won't be able to live without it. And the fact that it was given away free will compel them to return the favour by continuing to purchase from you. This principle is called the "Law of Reciprocity". Simply stated, people naturally feel an obligation to return favours as a way of expressing their thanks.

Educate them.

If they could use the product differently benefit more from using associated products in conjunction; buy this much, get this one free, etc. There is a famous story about a shampoo company who doubled their sales with the simple phrase "rinse and repeat".

Communicate with customers.

Communicate more often about your full offering as part of your sales process. This could take the form of newsletters, emails, mailshots, letters, Twitter & Facebook, advertising and PR, events, brochures and literature.

Consider what else your customers buy that you could sell.

The more you know about your customers, the more back-end products and services you can provide. This means that their main purchase simply becomes a foot-in-the-door, and now you can increase the frequency of purchase and average spend

Offer incentives and discounts.

By understanding the lifetime value of customers, i.e. the total value of their spend during their time as a customer, you can decide how much you are prepared to discount to get them back through the door. Position yourself as an expert to gain their trust and confidence. Through your PR, direct communications and website, you can provide information, reviews, reports, and details on your specialist area. Customers often don't know the right questions to ask, so help them out.

Review your ordering process.

See if you are making it difficult for people to buy from you. Look at your website from the point of view of a totally new customer and check if it is plainly obvious how to contact you or make a purchase on every page. Try a mystery shopper service or at least call your own sales line and see how quickly it is answered. Ask for feedback and suggestions for improvement from new customers.

Focus on the benefits.

Customers only care what you can do for them. Benefits build rapport by demonstrating that you understand their point of view. If you don't know what they are, ask your customers. You can never know too much about why people buy from you.

Are your staff selling?

By testing, measuring and analysing all your marketing and sales processes, you can see where the majority of initial sales and back-end sales take place. Are your best people in place to exploit those opportunities? Do you have enough stages in your sales process? Constantly chasing prospects after they've shown an interest can be soul-destroying and border on pushy salesmanship. But by having a longer sales process, prospects are moved from one stage to the next over a period of time, constantly informed and educated, and reminded of your services. Just because they didn't buy doesn't mean they're not interested in what you sell, so ensure you have multiple stages in your sales process, including emails, mailshots, brochures, PR, web downloads, and phone calls.

1.  A Local small businesses won’t need a website.

Incorrect! More than 30% of all Internet search activity is “local” and is the fastest growing segment of online activity! Your visibility online is now a crucial component in growing your business.

2.  Your competition isn’t online – so I don’t need to be.

If your local competitors are not online then this presents a huge opportunity for you. Most businesses have some sort of online presence however your competition may have a very simple web site or may not have considered search engine optimisation so no one can find their website. Again another huge opportunity for you. If you're not online and visible, you're simply missing a huge opportunity – it’s not difficult to sort out.

3.  Website “hits” are the most important measure of success online.

“Hits” don’t mean anything if they are not local, relevant prospects which convert into buyers. Concentrate on driving real results – in the form of local leads, ready-to-buy prospects, phone calls and conversions.

4.  Building a website will bring new customers and leads.

“If you build it, they will come” unfortunately doesn’t apply. Building a website is only half the formula, making it visible is the other half. Search engine optimisation (SEO) is an important part of any web presence but often not considered by businesses unfamiliar with the concept. Before and after the graphic design stage of a website project there will be some important steps to take in order to make your new site search friendly.

5.  Registering with hundreds of search engines will help me.

Remember; 95% of all search is conducted on just five search engines, 75% of UK searches are through Google alone. If you’re not focusing on doing the right things to be indexed (listed) and promoted in Google then you are missing your biggest opportunity.

6.  Running your own pay-per-click campaign will bring the best results.

Attempting to run a PPC campaign requires resources most businesses owners don’t have; time, money and experience. Very expensive mistakes can be made – don’t let this important investment in your business get managed by someone without the expertise and knowledge required to maximise your return.  

7.  Having your “friend” or a family member design your website is cost-effective

Unless you friend or family member is a professional designer or developer it will probably hinder rather than help. Unfortunately, experience proves that depending on friends or family members usually results in a) long, continuous delays, and b) ineffective ongoing support. Leave this responsibility to proven, accountable website design professionals. 

8.  The Internet is not secure and not a trusted resource.

The internet used to be a place where only those that were very brave handed out their credit card details and a source of much spurious information. These days your customers will be using the internet for all manner of everyday tasks and most likely as the primary resource for information and research. If your customers are there then you need to be there supplying the information and services to them that they will expect.

9.  I can create website content by copying information and pictures from elsewhere.

Despite the issues around copyright there is another very good reason that copying information is not a good idea. Google (and other search engines) are very hot on only listing unique information. If your site is seen to be displaying ‘duplicate content’ the likes of Google will ignore your pages and possibly your whole website so it will not appear in its search returns. If you cannot create unique web content for any reason then get a website copywriting professional to do this for you as taking shortcuts in this are rarely pay off.

10.  Internet marketing is expensive.

Just the opposite! Internet marketing (if done properly) can be the most efficient advertising available to businesses today. The “pay-per-click” (or “PPC”) model used by search engines only charge you if your ad receives a response. It is fully accountable and measurable in terms of results – in the forms that are most valuable; clicks, phone calls and leads.

When you start a business there will be lots of people telling you to try this and that way of marketing, as though it’s the law. They tell you that you have to advertise or go to trade shows to get yourself known. But the fact that more than half of all new ventures in the UK close within three years of opening, if there is no return on these marketing investments within a fairly short time frame, then the chances are that you will run out of cash before you reach your first anniversary.

It all boils down to ROI…Return on Investment. Most people would agree with the idea that ROI is difficult to measure for many marketing activities. If that’s the case, then don’t do them! New businesses cannot afford to gamble their precious start up capital on things that ‘may’ work, and even established businesses need to see a return on their marketing expenditure if they are to achieve their targets and stay ahead of the competition.

As with everything, there is a smart and a not-so-smart way to get the most out of your marketing. Here is my top seven steps to achieving marketing ROI.

1.  Is there a bottom line benefit?

Don’t be fooled by people who tell you that you need to advertise for awareness. This is a luxury of the global brand. As an SME or new business, you need to advertise to generate new business leads from your key markets. Brand advertising can come with time, but initially focus on getting the messaging and targeting of your adverts right. The key here is to monitor everything you do carefully – you need to build up an understanding of what works for your business and the style, techniques and messages that really have an impact on your bottom line. While it may be a nice idea to sponsor your son’s football team, will it bring in new business or just a load of muddy shirts every Sunday? Before investing in anything consider carefully what you want to get out of it and what, realistically, it offers.

2.  Go for scalability. 

Look at the marketing activity and ask yourself: if this works can I invest more and continue to get the same level of return, or will I be a victim of diminishing returns? Marketing is key to any growing business, but you need to justify your marketing spend and ensure that you are getting a good return on your investments. Equally, if you are onto a winner the law of product lifecycles means that you only have a limited window before the competition catches up or technology supersedes your service.

The secret is to keep your eye on the ball. Don’t sit back and think something’s worked so it will continue to work. Good marketing means continually monitoring and evaluating what you are doing, looking at how the return on your investment develops and keeping abreast of what else is happening in the market. Your marketing activity needs to grow and develop with you, supporting you at every stage of your launch and development.

3.  Go On-line before you go Off-line.

The modern day equivalent of a shop window or corporate brochure will be your website. This is perhaps the most important early marketing component for most new businesses. Care should be taken not only to get the site to reflect the image and values of your business but also to take into account Search Engine Optimisation (SEO) so that you can start to generate valuable traffic to your site. Talking expert advice here is recommended as SEO is a complex subject.  It is also amazing how many SMEs still do not take advantage of the Pay-Per-Click advertising on Google (the ads at the top and right hand side) and the other search providers. This is a highly effective and manageable form of advertising, which offers excellent ROI so long as you are careful about the search terms you choose. The more specific you are, the cheaper the cost per click and the better the conversion rate. If you are not taking advantage of online lead generation, you risk being left behind while your competitors race ahead of you.

4.  Work to a plan and a budget.

The best way to avoid unplanned marketing activities with no certainty of ROI is to have a costed plan. If there was never any intention of advertising in Northants Business Weekly then you will have no problem telling the rep that it just is not part of the plan. Likewise, if people try and persuade you that if you don’t go to this year’s Business Expo people will think you have gone bust, then let them think that. It’s not part of the plan! Businesses that develop and use a marketing plan go on to outperform those that don’t by an average of 30%, underlining the importance of setting out what you plan to do, when and how much you will spend on it.

Set yourself clear, realistic and measurable targets and stick to your budget for each and every marketing activity. Poorly thought out objectives and knee-jerk reactions will only cause you problems. Just because a competitor starts advertising somewhere doesn’t mean you have to. The plan should give a clear indication of where your business will be in 12 months time and how you will get there – take advice and plan carefully and you should achieve it without exposing your business to soaring costs.

5.  Don’t get carried away.

You know the situation. You get a call and you are so glad someone wants to talk to you that you set off like a greyhound without qualifying the prospect. The trouble is that many SMEs rely on cold call telemarketing where we convince ourselves the contact wants to buy our products or services. In truth the contact has probably little, if any, knowledge of the company, and has only agreed to a meeting with a small level of interest. Few people consider they may be dragging you from Peterborough to Inverness for a half hour general chat and a cup of tea (if you’re lucky). Good telemarketing and qualification of leads where ever they come from is essential.

6. Network like your life depended on it.

Some of the best ROI marketing you can do is to start networking with old clients, former colleagues, schoolmates, prospects, suppliers…anyone else who knows you! If you don’t use your contacts to get word out about your business, then who will? There are numerous ways to network face to face and on-line. If you have not already try the excellent LinkedIn. It’s also worth remembering to ask them for referrals. They may not be looking for a direct mail agency but they may know someone who is, and by spreading the word you’re far more likely to pick up new business.

7. Be Honest to yourself.

The key thing in running a SME marketing programme is to be ruthlessly honest with yourself. Ask yourself where your new business comes from, and then go back and do some more of what really gave you a measurable ROI. Don’t try and convince yourself it was the charity golf day that did it when you know very well it was the phone call to your old client, the direct mail letter you sent out locally, or even the 20p you spent on pay per click for the search term “Taxidermists in Tansor”.

Hi I’m Justin from Qi Marketing Limited. I’ll be posting interesting and I hope valuable marketing tips and website design advice for small business.