As a service provider you understand the value of “word of mouth” marketing, but are you taking full advantage of this powerful sales tool in your everyday business? Think about some of the best jobs you have received, I would bet they came through some kind of referral from a previous customer. In today’s economy people are certainly concerned about price, but the primary motivating factor in choosing a service contractor is getting the job done and done right.
If you are good at what you do, no matter whether it is plumbing, roofing, electrical work or any other trade your services are in high demand. There is always an abundant amount of work to be found as things are always breaking down, wearing out, or in need of an upgrade. You need to put yourself and your business in a position to take advantage of these opportunities by making the most of your current network of customers. If someone is satisfied with the work you provided, they are more likely to recommend you to their family, friends, and business associates. They can actually become a mini sales force; helping to open doors you never would have access to on your own. The following is a referral generating idea you can incorporate into your current marketing efforts to provide additional customers and revenue to your company.
The idea is to target specific areas where you have already completed some work or currently working. If they are residential projects, then start with the immediate neighborhood where the work was or is being done. If the work is commercial, then look at a ten mile radius from the job’s location as your target area. A fairly easy and very cost effective marketing technique is to create a printed flyer that can be easily distributed. This flyer should contain specific details of the services that you can provide as well as some details of the work you completed in the area. If you can, add a picture or two of the job as this adds tremendous credibility to your cause. Make sure you have your customer’s permission to include any details or pictures of the work before you create the piece. Finally, add as much contact information as possible including your full name, business address, cell phone number, and e-mail / website address if you have one. Do not rely on your business phone number as your only point of contact as this limits how people are able to reach you.
Once you have you created your marketing piece, spend the extra money and have it professionally printed. This will not be as expensive as you think and it will provide a first class presentation piece that sets you apart from your competition. The easiest and most effective way to distribute your flyer is the old fashioned door to door approach. This ensures it has been delivered to your target and has the best chance to get directly in their hands. One word of caution, do not put your information directly into someone’s mailbox as that is against the law. One of the best places to put it would be in the front door handle, rolled not folded. An equally effective but substantially more expensive method would be to contact a direct mail company who can work with you to reach specific neighborhoods by mailing the piece to every household or business in your target area.
No matter how you decide to distribute your marketing piece, the key takeaway is to utilize your past work to help you gain additional work. As I mentioned, if people are happy with the service you provided they will more than willing to help spread the word to those around them who may need your help as well.
Friday, April 24, 2009
Friday, April 17, 2009
Key Elements of an Effective Sales Incentive
The purpose of any sales incentive, or what I like to call a "pay for performance" plan is to generate an increase in sales while also increasing profit and revenue for the company. There are many different ways you can try to motivate your sales staff to improve results, but there are a few key elements that should be a part of any incentive plan you put together.
One common mistake of sales incentive plans is making the goals too general. An example of a general goal would be, "if sales are up 5% this month you will earn $500." While this sounds simple and clear cut, in reality it is actually very vague, in that it does not set the parameters on how are we going to obtain this 5% increase. By creating specific goals, preferable on an individual basis, you then define what actions are needed to obtain your desired end result. An example of this may be, "you will receive $25 for every new account that buys product ABC this month." This is still simple and clear cut, but is also very specific and easy to track.
The second element of an effective incentive is setting a reasonable time frame. If you make it too short, there will not be enough time to achieve any substantial results. If it goes on to long, you run the risk of losing people's interest. From past experience, the shortest time frame should be a month, and the longest should be a quarter(three months). Every sales person is different and will tend to obtain results at their own pace. Citing the tortoise and the hair theory, your incentive has to be long enough to generate positive results from everyone on your team. My personal preference is a quarterly incentive that includes monthly rewards.
The third element is to make sure the reward equals the task. Too little an amount will fail to motivate your staff, while too much will end up costing you more than it is worth. Think of any incentive as a mini "profit sharing plan." Simply determine what amount of any increased profit you can afford to give back, and that becomes the budget for your incentive. This will provide a payout cap that ensures your employees receive a fair reward for their efforts, and the company still obtains additional revenue as a result.
There will always be a certain amount of trial and error in setting up an effective incentive, but by incorporating these elements you have a much better chance at creating a win-win situation for everyone involved.
One common mistake of sales incentive plans is making the goals too general. An example of a general goal would be, "if sales are up 5% this month you will earn $500." While this sounds simple and clear cut, in reality it is actually very vague, in that it does not set the parameters on how are we going to obtain this 5% increase. By creating specific goals, preferable on an individual basis, you then define what actions are needed to obtain your desired end result. An example of this may be, "you will receive $25 for every new account that buys product ABC this month." This is still simple and clear cut, but is also very specific and easy to track.
The second element of an effective incentive is setting a reasonable time frame. If you make it too short, there will not be enough time to achieve any substantial results. If it goes on to long, you run the risk of losing people's interest. From past experience, the shortest time frame should be a month, and the longest should be a quarter(three months). Every sales person is different and will tend to obtain results at their own pace. Citing the tortoise and the hair theory, your incentive has to be long enough to generate positive results from everyone on your team. My personal preference is a quarterly incentive that includes monthly rewards.
The third element is to make sure the reward equals the task. Too little an amount will fail to motivate your staff, while too much will end up costing you more than it is worth. Think of any incentive as a mini "profit sharing plan." Simply determine what amount of any increased profit you can afford to give back, and that becomes the budget for your incentive. This will provide a payout cap that ensures your employees receive a fair reward for their efforts, and the company still obtains additional revenue as a result.
There will always be a certain amount of trial and error in setting up an effective incentive, but by incorporating these elements you have a much better chance at creating a win-win situation for everyone involved.
Thursday, April 9, 2009
Effective Time Management: Myth or Reality
Several years ago I was on a trip with several co-workers to Toronto. Without a map or GPS we were having trouble finding our way around. After an hour of randomly making right and left turns, we finally declared we were lost. Just then one member of the group who had remained quiet throughout the whole ordeal proclaimed, “How can you be lost if you don’t know where your going.” This simple statement sums up the problem many people face as they try to accomplish all the tasks at hand. On any given day we will tend to work on a number of issues, but never fully complete any particular one. At the end of the day it is hard to see what progress you actually made.
Most everybody will create a to-do list to set their agenda. How we set this agenda is the first key to its success. First you need to set realistic goals. These goals should be based on what you want to accomplish that day. By limiting your time frame you won’t get overwhelmed with the magnitude of everything on your plate. In the beginning of the week the first thing you should do write down your top five priorities for that day. When writing them down, leave a space in between them so if you had to you could add additional tasks. By limiting yourself to five, once again you fight off the sense of being overwhelmed. Now in a perfect world you could go about completing your list and at the end of the day go home stress free with a true feeling of accomplishment. We all know the realities of business life will never allow this to happen. In fact most days will not let you even address any of the items on your list. While you have your agenda as your guide, how you handle all the other distractions around you is your key to success.
Everything in business life is not a crisis. This is why we set priorities. This is why we leave room on our to-do list. When a true issue arises that must be addressed, add it on to your list, but be sure to properly place it in light of your original five issues. You should always be working on the most important issue at hand. Your ultimate goal is to complete this task before moving onto the next. Everyone wants to be an expert at multitasking. In most cases you’re back to working on a multitude of tasks but never taking any one fully off your plate. It is extremely important that you are able to finish those original tasks you set. There is nothing more liberating than crossing off an item on a list. This will give both a sense of relief as well as a sense of accomplishment. There is nothing more demoralizing than working all day only to feel you haven’t made a dent in your workload.
There will always be more work than time. This is what keeps us employed. How effectively we use our time is still under our control. With proper planning and keeping our expectations within our grasp, we exert this control. Everyone and everything around you will try and derail your efforts. It is up to you to not let this happen. It is up to you to finish one task before your knee deep in another. Remember it is your sanity you are trying to protect, not everyone else’s.
Most everybody will create a to-do list to set their agenda. How we set this agenda is the first key to its success. First you need to set realistic goals. These goals should be based on what you want to accomplish that day. By limiting your time frame you won’t get overwhelmed with the magnitude of everything on your plate. In the beginning of the week the first thing you should do write down your top five priorities for that day. When writing them down, leave a space in between them so if you had to you could add additional tasks. By limiting yourself to five, once again you fight off the sense of being overwhelmed. Now in a perfect world you could go about completing your list and at the end of the day go home stress free with a true feeling of accomplishment. We all know the realities of business life will never allow this to happen. In fact most days will not let you even address any of the items on your list. While you have your agenda as your guide, how you handle all the other distractions around you is your key to success.
Everything in business life is not a crisis. This is why we set priorities. This is why we leave room on our to-do list. When a true issue arises that must be addressed, add it on to your list, but be sure to properly place it in light of your original five issues. You should always be working on the most important issue at hand. Your ultimate goal is to complete this task before moving onto the next. Everyone wants to be an expert at multitasking. In most cases you’re back to working on a multitude of tasks but never taking any one fully off your plate. It is extremely important that you are able to finish those original tasks you set. There is nothing more liberating than crossing off an item on a list. This will give both a sense of relief as well as a sense of accomplishment. There is nothing more demoralizing than working all day only to feel you haven’t made a dent in your workload.
There will always be more work than time. This is what keeps us employed. How effectively we use our time is still under our control. With proper planning and keeping our expectations within our grasp, we exert this control. Everyone and everything around you will try and derail your efforts. It is up to you to not let this happen. It is up to you to finish one task before your knee deep in another. Remember it is your sanity you are trying to protect, not everyone else’s.
Friday, April 3, 2009
Are You Linked In?
What does it mean to Linked In? As described on their website: "LinkedIn is an interconnected network of experienced professionals from around the world, representing 170 industries and 200 countries. You can find, be introduced to, and collaborate with qualified professionals that you need to work with to accomplish your goals."
Just as Facebook and Twitter are popular online social networks, LinkedIn is designed to be the ultimate online business network. By adding your experience, skills, and the services/products that you or your company can offer to an online profile, you create the opportunity to network with other people in business through the powers of the Internet.
The big question is how can I make this work for me? I myself joined LinkedIn about six months ago after dragging my feet on exploring the whole concept of online networking. My experience with LinkedIn since then has taught me only one thing; I should have joined the day I started my company.
Like anything else in the world, the more you put into something, the more you will get out of it. Linked In is no different. In order for it to work for you, you have to take advantage of what it has to offer. By no means do I consider myself a Linked In expert, not even close. What I do know is that it can offer something for everyone, no matter what you do. If you need to develop connections across a wide array of industries, then LinkedIn can connect you with thousands of connections in over 170 industries. If you are looking for particular groups that share your common interests, you can find them here. If you do not find one, LinkedIn will help you start one. If you are just trying to get back in touch with past classmates or business associates, LinkedIn can help you reconnect. I'm probably missing some other key networking opportunities they can provide, but hopefully you get my point.
The best aspect of LinkedIn is that it is painfully easy to get started. Simply go to www.linkedin.com ,register for an account and start adding your information. You can build your profile over time and begin to add connections at your own pace. My advice would be to find someone who is already established on LinkedIn to help you with all the finer details. The main thing is to get started and go from there. There is no cost to join so your return on investment will be incredible.
Just as Facebook and Twitter are popular online social networks, LinkedIn is designed to be the ultimate online business network. By adding your experience, skills, and the services/products that you or your company can offer to an online profile, you create the opportunity to network with other people in business through the powers of the Internet.
The big question is how can I make this work for me? I myself joined LinkedIn about six months ago after dragging my feet on exploring the whole concept of online networking. My experience with LinkedIn since then has taught me only one thing; I should have joined the day I started my company.
Like anything else in the world, the more you put into something, the more you will get out of it. Linked In is no different. In order for it to work for you, you have to take advantage of what it has to offer. By no means do I consider myself a Linked In expert, not even close. What I do know is that it can offer something for everyone, no matter what you do. If you need to develop connections across a wide array of industries, then LinkedIn can connect you with thousands of connections in over 170 industries. If you are looking for particular groups that share your common interests, you can find them here. If you do not find one, LinkedIn will help you start one. If you are just trying to get back in touch with past classmates or business associates, LinkedIn can help you reconnect. I'm probably missing some other key networking opportunities they can provide, but hopefully you get my point.
The best aspect of LinkedIn is that it is painfully easy to get started. Simply go to www.linkedin.com ,register for an account and start adding your information. You can build your profile over time and begin to add connections at your own pace. My advice would be to find someone who is already established on LinkedIn to help you with all the finer details. The main thing is to get started and go from there. There is no cost to join so your return on investment will be incredible.
Subscribe to:
Posts (Atom)
