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Tuesday, March 15, 2011
Monday, February 28, 2011
How to use Special Offers Effectively
Win New Customers without Sabotaging Profitability
There's no question about it, special offers and discounts can be a great way to win new customers, boost short-term revenues, move stock, fill excess capacity, and achieve other business goals. But how do you use them effectively to get the best results?Don't be Half-Hearted!
Firstly, if you're going to use an offer, make it an attractive! Not many people are going to change their buying habits for a 5 or even 10% discount. If you're looking for offers to really drive more new customers, you need to think of the discount you're giving away as the cost of acquiring a new customer. Yes, in the shoft-term your margins might take a hit, but think of the discount as part of your marketing investment. If your customers generally go on to generate a lot of repeat business, then you can probably afford to be very generous with your new customer offers.Choose Your Audience Carefully
Secondly, you need to think where you're going to promote the offer. If it's only promoted to people that have signed up to receive offers (eg Groupon/Scoopon/Spreets), you want to tread carefully. This market is looking for the latest deal and is likely to continue that behaviour. It would probably take a pretty sensational experience to persuade them to become a loyal customer (they're likely to continue shopping around for a better deal elsewhere). If you can present your offer to people that fall more naturally into your target market (but still need a little encouragement to give you a try), then you're likely to be much more successful.Be Smart when you Craft your Offer
Thirdly, try different ways of packaging up your offer. The same effective discount could be presented as...- 25% off!
- Save $50 (when you spend more than $200)!
- 2nd person dines for HALF Price!
- Kids eat for FREE
- 2 courses + a bottle of wine to share for only $99!
- Dine with us and see a movie for FREE
The type of offer that works best will vary depending on your audience and your product/service, but often;
- Percentage Off is the least enticing (unless you're able to give away more than 30%)
- Dollars Off sounds more attractive (even if you need to put a minimum spend as part of the offer conditions)
- Something Free is even more enticing, so long as it's something customers actually value (free delivery, buy something - get something else free, buy 2 - get a 3rd free, etc - but please don't throw in a canvas bag!)
- Bundled offers can be exceptional (if done well) - the beauty industry often does this well with various "pamper packs", but why don't restaurants do this with the nearby cinema, or gyms provide a massage every 6 months, or computer services bundle in phone-support or virus protection?
- Give-Aways and Go-Into-the-Draw to Win can be good, but the give-away or prize needs to be spot on (and fairly large for a Draw-Prize)
Businesses on WOMOW.com.au can use Special Offers to effectively target people that value quality and good service (the ideal type of customer). The offers you include on your profile are emailed to the members that have elected to hear about the reviews and offers from business in (and servicing) their areas. These are an extremely effective way to get more exposure and win new customers. So make sure you're making use of it and changing your offer frequently to keep it fresh and test what works best.
Special Offers combined with positive customer reviews? Unbeatable!
Wednesday, February 23, 2011
Monday, February 14, 2011
Customer Reviews get you Found in Google (and other search engines)
You know that search engine marketing is important, right? But did you realise that 80% of purchases for all goods and services start with a search on the internet! (Neilson Netratings). So if your business is not generating a significant amount of business online (whether you sell online or not), you're probably missing out on a huge opportunity.Getting onto the first page of Google search results is every business owner's dream. But many businesses approach search optimisation in the wrong way...
A mistake businesses often make is to search for their own business name. If customers know your business name, they've probably already decided to use you. It's the other searches that you should focus on...
More important is to search for "[business type], [suburb]" or "best [business type], [city]" or "[business type] reviews, [city]", or even "[business type] [service speciality], [suburb]". In other words, don't search for "Lisa's Hairdressing Salon" - yes, your business should be found easily but this should be pretty easy when people type in your business name. Instead, search for "hairdresser, Eslternwick" or "best hairdresser, Melbourne", or "hairdresser reviews, Melbourne", or "hairdressers with play areas, Melbourne".
Getting found for very specific phrases and especially phrases that include "best", "reviews" and other similar words is something you can either employ the services of an expensive SEO business to help with, or you can enlist your customers to write reviews for you.
Customer reviews are an extremely effective way to optimise your business information for Google.
Getting found for very specific phrases and especially phrases that include "best", "reviews" and other similar words is something you can either employ the services of an expensive SEO business to help with, or you can enlist your customers to write reviews for you.
Customer reviews are an extremely effective way to optimise your business information for Google.
It's not magic. Customer reviews work to get found in Google because they're real people describing your business, in real people's language. They're also fresh information, which Google loves.
When people search for businesses, they use terms that you're unlikely to find on most business websites. But these are often the exact same words that your customers use to describe your business. For example, the website for Mike's Sports Physiotherapy might say something like "We provide professional physiotherapy services and treat all kinds of sports problems. We offer thorough assessment and treatment which can include stretching and strengthening programs."
On the other hand, a customer might write a review saying; "I hurt my shoulder playing tennis and decided to see a physio. Turns out my injury was quite easy to treat and only took 2 sessions. I was nervous at first but Mike was extremely gentle - I'd recommend him to anyone in the Eastern suburbs."
If a potential customer was searching on Google, they might type "gentle physio for tennis injury in eastern suburbs". Mike's website would fail dismally but his listing on WOMOW would have a great chance of being one of the top results. This is an extremely powerful way to substantially improve your positioning on Google.
Surprisingly, it can be extremely difficult for a business owner to know just how their potential customers are searching on the web. One case in point was a dog trainer. He had a great website but when one of his customers reviewed him on WOMOW and referred to him as the "dog whisperer", his web traffic soared.
If a potential customer was searching on Google, they might type "gentle physio for tennis injury in eastern suburbs". Mike's website would fail dismally but his listing on WOMOW would have a great chance of being one of the top results. This is an extremely powerful way to substantially improve your positioning on Google.
Surprisingly, it can be extremely difficult for a business owner to know just how their potential customers are searching on the web. One case in point was a dog trainer. He had a great website but when one of his customers reviewed him on WOMOW and referred to him as the "dog whisperer", his web traffic soared.
And when people find your business, they see a whole lot of your customers telling them what fantastic service you provide! There's simply nothing more convincing than that.So what are you waiting for? Start building up a bank of customer reviews and watch your traffic and new enquiries soar. The more reviews you get, the better this works...
Wednesday, January 26, 2011
Australian Consumers Demand Better Service (but grant second chances)
When it comes to customer service, it turns out that we Australians are some of the the least tolerant customers in the world - second only to Mexicans. In fact, almost 9 out of 10 Australians say they would stop using a business if they receive bad service! Just the punch in the face you needed? Don't worry, it's not (quite) as bad as it sounds...
A recent survey(1) explored preferences and attitudes of customers from Australia and eleven other countries. The findings show that 28% of Australian customers are only willing to excuse one service lapse before blacklisting the company. However, a large portion of Australians (48%) will allow two poor customer service experiences before deciding to end their relationship with the business altogether.
This prospect of a ‘second-chance’ provides businesses with a great opportunity to improve the service and provide more value to their customers. Most reasonable customers understand that there are occasional lapses in the level of service delivered, but if customers realise that a bad experience is an exception rather than the rule, they will be much more understanding and inclined to give the business another go.
The research also found that customers are more forgiving of poor service if they've generally experienced good service with the company over time. This finding highlights the importance of building lasting relationships with each customer and understanding the value of each customer rather than just the transaction.
The Barometer also shows that contrary to popular opinion, a good service experience has a greater impact on customers than a negative one. Consumers are more likely to give a company repeat business and to speak positively about the company after a good service experience (96%), than they are to never do business with a company again (88%) or speak negatively about the company (89%) after a poor experience.
This brings us back to the importance of collecting feedback. Your satisfied customers are usually very happy to refer your business to others (either verbally or online) for nothing more than the gesture of goodwill towards their friends and the business. This feedback then not only brings new customers to the business, but also reduces the impact of a poor customer experience.
Surprisingly, the study found that when bad service is received, Australians are unlikely to provide direct feedback to the business. In fact, compared to the other countries, Australians are among those who are most unlikely to speak to the business’s owner or manager about the incident and even less inclined to write a letter or an email to the company. So you can't rely on customers proactively telling you they're unhappy, you need a system for collecting their feedback.
After experiencing poor service, 35% of Australians say they will post a comment online such as a blog or social networking site. Although is not such a high proportion, it is incredibly influencial when you consider that 90% of people go to the internet first when they need a product or service! It’s therefore extremely important for businesses to have a great track-record online.
When things do go wrong, the study found that the most important thing a business can do is to acknowledge the mistake. In fact, more than half of Australians rate financial compensation second to that of an apology. An apology can go a long way in making a customer feel that their problems are being addressed and that they are valued and appreciated.
So, to make amends for a poor customer experience:
(1) Conducted by the American Express Global Customer Service Barometer
A recent survey(1) explored preferences and attitudes of customers from Australia and eleven other countries. The findings show that 28% of Australian customers are only willing to excuse one service lapse before blacklisting the company. However, a large portion of Australians (48%) will allow two poor customer service experiences before deciding to end their relationship with the business altogether.This prospect of a ‘second-chance’ provides businesses with a great opportunity to improve the service and provide more value to their customers. Most reasonable customers understand that there are occasional lapses in the level of service delivered, but if customers realise that a bad experience is an exception rather than the rule, they will be much more understanding and inclined to give the business another go.
The research also found that customers are more forgiving of poor service if they've generally experienced good service with the company over time. This finding highlights the importance of building lasting relationships with each customer and understanding the value of each customer rather than just the transaction.
The Barometer also shows that contrary to popular opinion, a good service experience has a greater impact on customers than a negative one. Consumers are more likely to give a company repeat business and to speak positively about the company after a good service experience (96%), than they are to never do business with a company again (88%) or speak negatively about the company (89%) after a poor experience.
This brings us back to the importance of collecting feedback. Your satisfied customers are usually very happy to refer your business to others (either verbally or online) for nothing more than the gesture of goodwill towards their friends and the business. This feedback then not only brings new customers to the business, but also reduces the impact of a poor customer experience.
Surprisingly, the study found that when bad service is received, Australians are unlikely to provide direct feedback to the business. In fact, compared to the other countries, Australians are among those who are most unlikely to speak to the business’s owner or manager about the incident and even less inclined to write a letter or an email to the company. So you can't rely on customers proactively telling you they're unhappy, you need a system for collecting their feedback.
After experiencing poor service, 35% of Australians say they will post a comment online such as a blog or social networking site. Although is not such a high proportion, it is incredibly influencial when you consider that 90% of people go to the internet first when they need a product or service! It’s therefore extremely important for businesses to have a great track-record online.
When things do go wrong, the study found that the most important thing a business can do is to acknowledge the mistake. In fact, more than half of Australians rate financial compensation second to that of an apology. An apology can go a long way in making a customer feel that their problems are being addressed and that they are valued and appreciated.
So, to make amends for a poor customer experience:
- Acknowledge the poor service and provide an apology. Ideally, this should be done by the person at fault, or by the manager / owner.
- Plan, plan, plan. Have a plan to deal with unsatisfied customers. This should be something the business owner or manager discusses with all employees. It only takes one employee to turn a good experience into a bad one and vice versa. Every employee has the power to build or destroy relationships.
- Resolve the issue speedily, effortlessly and courteously. Consider the value of the customer rather than the transaction.
Find out more about promoting your business with word-of-mouth.
(1) Conducted by the American Express Global Customer Service Barometer
Monday, January 17, 2011
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