How Not Feeding the Seagulls Can Increase Sales

On a recent trip to Panama City Beach in Florida I saw this sign, "Please...Don't Feed The Seagulls." It was posted near our restaurant table where we had a beautiful ocean view.

Guess what this sign made me think about? Yep- feeding the seagulls. I probably wouldn't have thought about throwing food out to the birds, but seeing the sign all of a sudden gave me the idea of feeding them!

And come to find out, I'm probably not the only one.

In his book, Buyology: Truth and Lies About Why We Buy, Martin Lindstrom introduces the concept of neuromarketing. Using brain scans scientists monitor brain responses to certain products and ads. In an extensive 3 year study he researched the effects of cigarette warning labels and anti-smoking ads on smokers' behavior. While smokers claimed that warning labels were effective in curbing their smoking habits, it was discovered that anti-smoking ads stimulated an area of the smokers' brains called the nucleus accumbens, also known as the "craving spot." In other words, cigarette warning labels didn't deter smoking. Instead the labels actually increased a smoker's physical craving to smoke and encouraged them to light up.

As a business trying to jazz up your sales Lindstrom's study tells me this:

• What customers say they want isn't always what they really want.


• A suggestion you make to a customer can have the opposite effect of what you intended.


• Your customer may not truly know why he/she bought from you.


• Focus groups and customer surveys may be a waste of time (gasp!)

Be mindful of what you are selling. Your customers do have choices - they can buy from you or someone else. However, it's up to you to decide what your services include and what your product offerings are. Allowing your customers to totally dictate how your product works or service is delivered can actually decrease your sales.

Why You Should Invoice Your Customers on Time

Our neighborhood has a lawn service company that mows yards for a reduced price - so almost every home in the neighborhood uses them. We just received our bill from them for the first time in 6 months! Instead of billing monthly they sent us a bill for September, October, November, December, January and February. Needless to say, what seems like a great monthly price is pretty stout when it's billed in 6 month increments. (The long story is that they have consistently billed late like this for the last 3 years).

This brings up the importance of invoicing your customers. To jazz up your sales invoice your customers on time. Here's why:

• When I receive a late invoice it makes me feel like the company is overcharging me. It makes me feel like they don't need the money. After all, how can a company make payroll each month if they aren't receiving payments from customers?


• Late invoices are confusing. Now I'm confused because I can't remember when the lawn care company trimmed the weeds back in September. Invoicing on time will avoid confusion and payment disputes from customers that will take extra energy to figure out.


• Invoicing on time will get you paid on time. For a small business cash flow is the key to life. A late invoice can mean your customer no longer has the money set aside to pay you. A late invoice may cause your customer to not remember exactly what they are paying you for. A late invoice tells your customer you didn't need the money at the time services are rendered so paying on time isn't that important.

Are you an Effectual or Causal Thinker?

A recent article in Inc. magazine called "How Great Entrepreneurs Think" revealed the findings of University of Virginia professor Saras Sarasvathy. She discovered that entrepreneurs relied on "effectual reasoning" whereas corporate executives relied on "causal reasoning."

Below is a breakdown of the 2 types:

Effectual Reasoning (Entrepreneur)
- Values improvising over planning
- Develops goals on the fly & then reacts creatively to problems
- Doesn't need to predict the future because contingency plans are the fun part
- Operates using "Ready, Fire, Aim"

Causal Reasoning (Corporate Executive)
- Values concrete goals and steps for achieving goals
- Takes the MBA approach
- Values quantitative analysis and market research
- Operates using "Ready, Aim, Aim, Aim"

In her study of successful entrepreneurs Professor Sarasvathy found that only 12% had done market research and 60% had not written a business plan before launching their companies. It seems that effectual thinkers feel that taking "aim" is a distraction that takes valuable time away from actually "doing" what needs to be done.

Having worked in a corporate environment for 15 years and earning an MBA I lean toward the causal approach because it was beat into me. To jazz up the sales of your business I believe you need a combination of effectual and causal thinkers. Each type will hold the other accountable for decisions they have made or need to make.

7 Things to Do Between Christmas & New Years to Increase Your Sales

Trying to make use of the down time between Christmas and New Years? Here are 7 things to do in the next week between Christmas & New Years to jazz up your sales:

1. Read a bestselling business book. During the holidays the new book display is easy to find at the book store. Pick one that looks interesting and read it to find out what current thought is in the business world. It can also provide content for a conversation starter with customers.


2. Buy a subscription to People magazine. I got this idea from John Jantsch's book Duct Tape Marketing (plus I've read People for years!). For the last 20 years People magazine has sold more magazines than any other. People will help you get a feel for what the "majority of Americans want to fight, find, lose, gain, have, give or embrace" according to Jantsch. If your customers are men and women ages 25 to 54 then People magazine will tell you what your customers are talking about. Read Jantsch's full explanation and I'll bet you won't think twice about subscribing.


3. Really clean off your desk. Throw away old papers, file necessary papers, remove all the post-it notes from around your computer monitor, get out the furniture polish or a wet rag and wipe the desk surface clean.


4. Make and prioritize your list of what you want to do the first week in January. I always feel overwhelmed when the holidays are over and lose the first few days in January because I'm in chaos and trying to do everything on the first day. Keep in mind that your customers will feel the same way and may not be as receptive to you at this time.


5. Get your tax stuff in order. By April 15th you won't remember half of what you did in 2010 and digging through papers and receipts to get your taxes done will be a huge distraction.


6. Mentally reflect on your business. Do you have any clients that really bug you or drain you? Do you have any projects or tasks that you dread doing? Is there anything you do in your business day that feels like a waste of time? Think about how you can eliminate energy draining projects or clients so you can focus on increasing your sales and on projects you really enjoy.


7. Have fun. Spend time with friends, go see a movie, hit the gym, or do whatever you enjoy that helps you refuel to start the new year off with energy.

How to Trust Your Customers

Sam Moon is a retail store in Dallas. When I was growing up it was a great place to go for good deals on accessories like earrings, purses, belts, etc. (It's still a great place to go). Every time we shopped there my friends and I would joke about how the sales people followed you around the store because they were afraid you would steal something. The sales staff didn't try to hide their suspicion of customers. I felt like I wasn't trusted and consequently it made me not trust the store. When the sales person told me the necklace looked good on me I didn't trust her. When the sales person told me the purse was real leather I didn't trust her.

Today I called to make a reservation at the restaurant Medieval Times in Dallas. The reservationist told me I must pay 100% up front for all parties, there were no refunds of any kind and I was only allowed to change my reservation once. It felt like a "gotcha" situation - like they didn't trust me to show up.

I understand that businesses must have policies in place to protect themselves from theft, piracy and fraud. There will always be customers who take unfair advantage of every situation. When Costco and Home Depot allow returns with no questions asked - you know someone is going to show up with a worn out "something" and ask for a refund. And we've all heard the story of customer service giant Nordstrom allowing a customer to return a used tire (they don't even sell tires!).

Trust your customers to jazz up your sales. Here's how:

1. Don't use the term "company policy" to hide behind rules. The Medieval Times reservationist used this line when explaining why I had to pay 100% up front.


2. Offer a free trial with few restrictions (the test drive theory).


3. Listen first. Don't just listen - do it first. In his book The Speed of Trust Stephen M.R. Covey lists this as one of the 13 Behaviors of trust. When you are trying to make a sale it is natural to "pretend listen" while waiting to jump in when your customer is finished talking. Covey calls this "counterfeit listening." Listen first and it will tell you how to build trust.


4. Spell out your guarantee. By doing this you are showing customers you trust them to hold you accountable for your claims. Know that you will need to stand behind your guarantee even when it hurts.


5. Allow your customers to complain. Make it easy for them. Tom Egelhoff says to provide phone numbers (answered by real people), feedback email access and any other ways you can think of for customers to notify you when there is a problem. The longer it takes to resolve a problem the more potential customers will hear about this particular customer's dissatisfaction with your company.


6. Give away something for free. In his book FREE: The Future of a Radical Price Chris Anderson says that the enemy of free is waste. When you give something away people feel compelled to use it. And the law or reciprocity will bring them back to you for other business.


7. What seems to be a people problem is sometimes a situation problem. This concept is presented in Chip and Dan Heath's book SWITCH: How to Change Things When Change is Hard. Your customer may trust you but not your company, product or industry. Several years ago I experienced a home remodeling job with a contractor who performed shoddy work and then skipped town with my money. Since then I have not trusted any person doing work in my home. It has nothing to do with the people - I have blanket mistrust of home building contractors. Figure out ways to create a situation where you are able to trust your customers.


8. Recognize when people don't feel trusted. As long as a person is communicating with high emotion, he or she doesn't feel understood. And a person will not trust another until he feels understood.
   

I don't believe the average customer says to himself, "Wow, that business doesn't trust me so I won't buy from them." But I do believe customers pick up on the vibe of mistrust. And if they don't feel trusted they won't trust you. And even worse, they won't buy from you.

Find the Bright Spots

I just finished Chip and Dan Heath's new book SWITCH: How to Change Things When Change is Hard. You may remember their book Made to Stick that came out a few years ago. In SWITCH they use the phrase "Find the Bright Spots." If you want to know how to find the bright spots in your business ask yourself, "What are we doing that's working and how can we do more of it."

In business we don't tend to focus on the bright spots. Instead we tend to ask, "What's broken and how do we fix it?" When we have an unhappy customer we tend to throw resources at making them happy. When we don't close a big sale we focus on what went wrong. When the sales force isn't selling as much we focus on how to get the worst producers to sell more. Parents even do it with their kids. When your child brings home three A's, two B's and one F which grade do you talk to your child about?

Psychologists call this phenomenon the "predilection for the negative." In other words, bad stuff is more memorable than good stuff. I lost a sale last week that I had been working on for 2 years. It bummed me out and I have thought about it constantly to figure out what caused this deal to slip away. However, I also closed a sale last week. But my success didn't get even half the attention as my failure. Just call me a "predilection for the negative."

Moving forward I am going to find the bright spots. I am going to find ways to duplicate my successes instead of undoing my failures.

Playing to Win

I really like to win. (And I was really pulling for TCU and UT in their bowl games this week, even though I went to Texas A&M). Notice I didn't say, "I hate to lose."

Recently I read the phrase, "Play to win. Don't play NOT to lose." According to Robert Caldini in his book INFLUENCE: The Psychology of Persuasion, people seem to be more motivated by the thought of losing something rather than gaining something of equal value. For example, homeowners are more likely to insulate their homes when they are told how much money they could lose from inadequate insulation vs. being told how much money they can save from adding insulation. This got me to thinking that there 2 types of sales people.

"Playing NOT to lose" sales people look like this:

• Doing things that hurt your company just so you won't lose a customer.


• According to Brad Isaac in his Persistence Unlimited blog if you say to yourself “I have to do ____ or else____ will happen,” then you are playing not to lose & subsequently focusing on losing.


• Playing it safe and letting fear guide you.


• Hoping your competitor will mess up instead of planning for every angle in the sales process.
  

"Playing to win" sales people look like this:

• Agreements benefit both parties.


• You trust your skills, talents and knowledge and use them confidently to win the business.


• You are not afraid of losing, you are afraid of not being able to provide your customer with the solution they need."


• You think of ways to thrill your customers rather than satisfy them.

In other words, you can play NOT to lose by playing it safe, doing what is expected and hoping for your competitors to mess up. Or you can play to win by using your arsenal of skills and talents to win customers and impress your competitors.

Use Coupons to Increase Your Sales

Last year my New Year's resolution was to cut coupons and actually USE the coupons on a regular basis. I have been cutting coupons off and on for years, leaving them stashed in a drawer at home and mostly forgetting about them until I'm standing at the check out line. So last year I kept my resolution. And I rang in 2010 by saving $6 on breakfast!

Here is proof. It's my coupon organizer that fits in my purse and accompanies me everywhere. (I bought it at Staples and have seen them in office supply sections in Wal-Mart and Target).

Coupons serve a few marketing purposes:

• Draw you to a place of business
• Encourage you to buy a certain product
• Encourage you to buy within a certain time frame
• Encourage you to buy more goods or services in advance of needing them
• Simply serve as an advertisement for the product or service

Keeping the above in mind, I've noticed shortcomings in the past year in how companies and businesses use and honor coupons which has led me to develop a few tips for jazzing up your sales with coupons:

• In addition to standard coupon offerings and terms, include your company logo and picture of the product (if applicable) on the coupon. I have a coupon for Kellogg's breakfast cereals that doesn't include a picture of any of their cereals. Keep in mind that your coupon can be used as an advertisement. Don't miss the opportunity for your customers to see your product.
• Use your coupon as an advertisement. If you are a service business then a coupon offering a free consultation or service can pull people in the door. Make sure this coupon lists other services or products you provide.
• Don't forget to include your business address and phone number on the coupon. My daughter recently brought home a coupon for a free burrito from Planet Burrito for receiving good grades. The address for Planet Burrito was no where on the coupon - and neither was the phone number. This makes it too hard for me to figure out where to go.
• Never turn away business because the coupon is expired or not for the exact item or service. Give customers a little slack. There are experts who disagree with me on this and feel that you should never extend a coupon offering or make exceptions. Keep in mind that the goal of a coupon is to increase foot traffic and sales. Here's an example: On January 2nd I went to use a coupon for a free bowling game that expired on January 1st. Imagine how frustrated that made me feel! The bowling alley went ahead and honored the coupon - and that made me feel great! I bought 2 additional games for everyone. Mission accomplished for the bowling alley.

Remember that part of your coupon strategy is to monitor the effectiveness of a coupon campaign. You will want to know what product or service offerings got the most response, which publications best reached your target audience and the ROI of the campaign.