It's surprising how many business owners in the hospitality industry underestimate the power of retaining customers, considering how important they are to success. In pursuing growth, they overlook the goldmine that customer loyalty represents. They fail to realize that it's about more than maintaining current profits. Keeping customers coming back is one of the most critical factors in securing the future sustainability and growth of the business. Before I get into practical strategies for retention, let's start with an attitude: Realize that you're not serving or selling to "customers" but to "guests," a term you should use when you think or talk about them and when you speak with them. It's not just feel-good marketing puffery; there's a fundamental difference between the two personas. A customer buys my product or service in a purely transactional act that may or may not be repeated. A guest is someone I open my home to and treat like family; it's a relationship that I work to cultivate with the expectation that it will continue. Ignore or mistreat guests, and they'll let everyone know what a bad experience they had. This can be even more damaging if you're in a franchise business like we are at Ford's Garage restaurants, where a bad experience at one location can tarnish the reputation of the entire franchise. Consistency is vital in franchising, and ensuring a uniform guest experience across locations is paramount. Individual locations may reflect their markets' unique preferences in the menu and other features, but the one thing that must be replicated everywhere is exceptional customer service. Every guest everywhere wants to feel they were well taken care of, even if the business made a mistake (that was fixed, of course). Disappointed guests don't just stay away from your business; they can also keep others away, a problem that's grown exponentially with the popularity of online reviews. So, it's undeniably better for your bottom line to nurture loyalty. The Harvard Business Review reports that it's 5-25 times more expensive to attract new guests than to retain existing ones, and increasing retention rates by just 5% can increase profits by a surprising 25-95%. Winning back a lost guest isn't impossible, but in the face of those odds, it requires a proactive and sincere approach. It starts with understanding why the customer left in the first place, addressing any issues or concerns they had and demonstrating tangible improvements. Personalized offers or incentives can also help rekindle their interest. Given all that, why not put your energy into keeping the guests you already have? The critical risk area for losing a guest varies, depending on the industry and the individual guest's experience, but three main touch points offer opportunities to reinforce loyalty. Just remember that they can also drive guests away if not done right. 1. Before the Visit: Establish community bonds and make a name for yourself. Expand your presence (in the neighborhood and guests' minds) by co-sponsoring events with local businesses, celebrating community happenings and partnering with schools and youth groups. For example, a guest favorite for Ford's Garage is our Burgers of Fame, which names hamburgers for beloved local personalities. Engaging with the community not only enhances brand visibility but also builds trust and loyalty, driving guest retention. 2. During the Visit: Make guests feel welcome and appreciated. Greet them warmly, recognize returning guests and their preferences, and provide responsive service to all. Creating a welcoming and personalized experience can leave a lasting impression on guests, fostering loyalty and repeat business. Treat them like your mom, dad, brother or sister. 3. After and Between Visits: Invite them back with meaningful outreach. Keep the relationship going after the guest leaves. Ask for feedback with surveys (not too detailed), send a thank-you note or gift for a significant purchase, and make loyalty programs worth joining with special offers with genuine value. Demonstrating appreciation and actively seeking feedback shows guests that their satisfaction matters, fostering a sense of loyalty and goodwill. Deliver exceptional service at all timesIf a business could do just one thing to keep guests coming back, it should prioritize delivering consistently exceptional customer service and maintaining product quality. Never reduce costs with anything they touch and see; most of all, don't skimp on anything affecting product quality. Every interaction with a guest is an opportunity to strengthen the relationship and reinforce their loyalty to the brand. While price, product quality, and convenience undoubtedly influence customer decisions, customer service often emerges as the linchpin of retention. Good service can mitigate the impact of shortcomings in other areas, but poor service can be a severe blow even if other areas are satisfactory. Guests are willing to pay a premium for exceptional hospitality, and it's often the distinguishing factor between competing businesses. Businesses prioritizing guest satisfaction and loyalty are better positioned to weather competitive pressures, achieve sustainable growth and thrive in the long run. It's not just about keeping guests happy; it's about building lasting relationships that drive mutual value and success. Provide a fantastic guest experience with a quality product and an entertainment component — I call it "eatertainment" in the restaurant industry – and you'll win. Source: https://www.entrepreneur.com Image Credit: Photo by Thirdman
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For marketing, advertising and PR firms, the relationships built between the company and clients are critical for driving repeated business, sustained growth and positive word of mouth. Maintaining these vital relationships is becoming increasingly difficult due to a fiercely competitive market where clients are looking for higher engagement, lower costs and better quality products and services. The good news is that maintaining strong relationships with your clients is well-known to promote high retention rates and better revenue. One study found that customers who form a strong emotional connection with a brand have a 300% higher lifetime value compared to consumers who failed to build a relationship. For agency leaders, it's important to have strategies in place to build and foster strong, long-lasting relationships with your clients. 1. Set clear expectations and deliver on your promises One of the best ways to build a relationship with your customers is by always delivering superior products and services. However, accomplishing this starts at the beginning of the relationship by setting clear expectations on what they can expect. Being transparent about the intended outcome, delivery timeframes and communication helps avoid any frustration that might come from misunderstandings or misaligned expectations. For new firms, it's especially important to impress your potential clients. Unfortunately, too many companies make big promises that they can't successfully deliver. By overpromising, you set your customer up for potential disappointment. Instead, always offer realistic expectations with the intention of over-delivering. The customer will be impressed when you are able to deliver the marketing campaign in three weeks when you originally set an expectation of 25 business days. You might even throw in an unexpected freebie or perk that they weren't expecting. By always keeping your promises and over-delivering when possible, you'll build a relationship based on trust and will be recognized as a reliable business partner. 2. Focus on creating value first Selling your services is an important part of growing revenue for your business. However, focusing solely on what you can get out of your customers could be sabotaging your ability to build strong relationships with your clients. Instead, focus on first providing them with value. This starts well before you sign your first contract. When clients see tangible value and benefits immediately from working with your business, they are more likely to reciprocate by remaining loyal customers to your company. 3. Communication, communication, communication Sustaining an ongoing relationship with your clients requires connecting on a regular basis, even if they aren't ready to purchase from you again. The problem is that many companies focus on connecting with their clients only when they want to make a new sale. This isn't an effective way to build strong customer relationships because it can be perceived that you only care about them when they have something you want (i.e., their money). Taking the time to check in with your clients on a regular basis is a great way to maintain a strong relationship. This also helps eliminate tension and remove the defenses that come up when every contact ends up being a sales pitch. These check-ins can be in-person meetings, phone calls or even a simple email. It's important to understand that no two clients are the same. Finding ways to tailor your communication to their preferences and needs lets the client know that you understand their needs, challenges and goals. 4. Own your mistakes From time to time, your agency is going to make a mistake or upset a customer. That's unavoidable. You're going to miss a deadline, deliver an advertisement that should have never made it past the quality control process or drop the ball entirely. How your business responds to these issues can make a huge difference with your customers. Owning the mistake, being transparent about what happened and proactively working on a solution, lets them know that you care about resolving the issue. Delivering difficult news or discussion challenges is never easy. By demonstrating your willingness to address challenges head-on and find mutually beneficial solutions, you'll strengthen your client relationships and position yourself for long-term success. 5. Learn from failure through continuous improvement Sometimes, you'll lose clients no matter what your business does. This can be painful, especially if it's a major client that generates a significant portion of your revenue. While the goal is to retain your clients, there is a silver lining to client turnover. As frustrating as it might be, always try to part ways on good terms. You never know when they might decide to come back to your business. A good way to do this is by offering them some form of value on their way out. For example, if you operate a digital marketing firm, you show good faith by supporting their transition to the next agency. Also, taking the time to understand why they are leaving can highlight opportunities for improvement. Over time, taking action on these lessons can greatly strengthen your processes and ensure you avoid any roadblocks to building and sustaining long-term customer relationships. Acquiring new customers is not only challenging, but expensive as well. It's much more effective to spend time retaining the customers you have. By building strong customer relationships, entrepreneurs can protect their revenue and position their companies for growth and success despite operating in the competitive world of marketing, advertising and PR. Source: https://www.entrepreneur.com Photo Credit: Andrea Piacquadio
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Many promising entrepreneurs and business owners seek investment, making it tough to convince someone to invest in their idea/startup. As a result, some individuals tend to exaggerate the quality of their ideas or products. If the venture succeeds and generates substantial profits, investors are usually satisfied. However, dissatisfaction may arise if things don't go as planned—and they do a lot of times! Fundraising is a long process that may take months before making any decision. Why months? Because every responsible fund conducts due diligence, delving deep into the startup and analyzing every aspect of it takes time. Some funds also attract external experts – we use this practice at Vibranium.VC. Why dishonesty is so tempting The deceptive temptation to take shortcuts is often based on a desire to present the startup in the best light possible, attracting investors and customers with an idealized version of reality. However, this slippery slope can lead to potential pitfalls, where one small untruth snowballs into a catastrophic downfall for a startup. Back in fall 2023, we were considering one startup for potential investment, conducted analysis, and held interviews — standard procedures for every potential investment we make. The company was making about $2 million in annual revenues, which was growing and positive. But we felt that there was something off; every time we asked for DEMO access to the platform, the founder would throw a fit, not wanting to cooperate. Even though, during our calls, the founder would operate a demonstration showing how the platform creates value for its customers,. So, we decided to conduct additional technical due diligence with two different expert teams. It turned out that we were shown an excellent Figma design all this time without an actual platform behind it. This project was a classic "fake it till you make it," and it was a deal breaker for us. We can understand that sometimes MVP is still in the process of making, but a deliberate lie that the revenues generated in the company come from nonexisting platforms was a no-go for us. Entrepreneurs may underestimate the consequences of dishonesty, believing that the ends justify the means. Yet, the truth has a way of revealing itself, and when it does, the repercussions can be severe, from ruined reputations to legal consequences. Giving in to the temptation to be deceptive can seriously harm the foundation of a startup. Turn the truth into a strategic asset Statistics indicate that, on average, the partnership between an investor and a startup lasts longer in the USA than a marriage – more people divorce faster than investors and startups part ways, achieving exit. Based on my experience, honesty emerges as a powerful strategic asset for entrepreneurs. Successful businesses have thrived on transparency and building trust with customers, investors, and employees. Honesty is not just a moral imperative but a smart business move that fosters long-term relationships. Several examples in the business world showcase the impact of truth as a strategic asset. Even when the news is not entirely positive, companies that openly communicate their challenges and successes often gain respect and loyalty from their stakeholders. By being forthright about shortcomings or setbacks, entrepreneurs can build a foundation of trust that withstands the test of time. When an investor has to decide in complex startup situations, for example, to support the startup or not for the second or third time, if there is no trust, the investor is likely not to support the startup because they will already feel deceived. Therefore, it is very important to embed these relationships from the very beginning on the principles of transparency, openness, and honesty. These basic things are important because they form the foundation for future years of relationships and communication between the investor and the startup. There have been cases where some of our startups needed bridge rounds, and we were ready to support them because they were honest about their situations and what they needed. Navigating the gray areas In the complex entrepreneurship landscape, ethical dilemmas often arise in grey areas. A gray area is an area or situation in which it is difficult to judge what is right and wrong. Entrepreneurs face tough decisions that test their commitment to honesty. Real-world scenarios illustrate the importance of choosing the path of transparency, showcasing positive outcomes resulting from these decisions. Navigating the grey areas requires a commitment to ethical decision-making. Entrepreneurs must weigh short-term gains against long-term consequences, recognizing that honesty, even when uncomfortable, ultimately builds a more robust and resilient business foundation. Culture of honesty Being honest in the world of entrepreneurship can be challenging, especially when money is involved – that might be a real test for a startup. Just like when we build relationships with our life partner or spouse, if these relationships start with lies, even if they're seemingly innocent lies, they can start to erode and create cracks in the future. Entrepreneurs can actively cultivate a culture of honesty within their startups. Open communication, trust-building, and accountability are crucial in fostering a workplace environment where honesty thrives. Successful companies prioritizing honesty as a core value often experience heightened employee loyalty and increased customer satisfaction. By setting the tone from the top down, entrepreneurs can create a culture where team members feel empowered to be transparent about challenges and uncertainties. This culture promotes ethical behavior and enhances collaboration and innovation within the startup. In the competitive entrepreneurship landscape, the stakes are high, and the journey to success is filled with challenges. The deceptive temptation may seem like a shortcut, but it will lead to a dead-end sooner or later, trust me. Embracing honesty, not just as a moral code but as a strategic advantage, can be the key differentiator between thriving and falling. Source: https://www.entrepreneur.com
The best seem smooth and effortless, but great sales pitches are carefully crafted and delivered. Here’s a guide to some powerful ideas that may benefit your sales team. The Importance of Great Sales Pitch Ideas Crafting a great sales pitch is crucial in the competitive landscape of business. It serves as the bridge between a product or service and its potential customers, often determining the success or failure of a sale. A well-crafted pitch does more than just inform; it engages the audience, builds trust, and creates a compelling narrative that highlights the value and uniqueness of what’s being offered. The ability to effectively communicate this value in a concise and persuasive manner can significantly impact the growth and profitability of a business. Key points on the importance of crafting a great sales pitch include:
Methodology for Assessing Sales Pitch Ideas Generating effective sales pitch ideas is key for entrepreneurs and small business owners. We evaluated the top ideas using an objective scale. Each factor below is rated on a scale of one to ten, with ten reserved for the most important. Here’s how we approach the evaluation of sales pitch ideas: 1. Clarity and Conciseness
2. Uniqueness and Creativity
3. Audience Relevance
4. Call-to-Action (CTA) Effectiveness
5. Emotional Connection
6. Evidence and Credibility
7. Adaptability and Flexibility
8. Problem-Solution Fit
9. Brand Alignment
10. Memorability
This framework allows us to thoroughly evaluate sales pitch ideas, ensuring that they are effective and aligned with the goals of small business owners and entrepreneurs. Sales Pitch Ideas From carefully choosing your words to staying on point, here are 20 sales pitch ideas that should keep your team morale high. Choose Words Carefully You need to get the message out on the goods and services you’ve got for sale. Choosing the right words gives a pitch the power to close. Don’t underestimate simple words like “new” , “sale”and “off” to make a big difference to any pitch. Know Your Client Salesforce reports 82% of sales people don’t understand their prospects. If you don’t research their preferences, you’re more than likely telling them why you like the product. If that’s the case, your pitch could fall on deaf ears. Talk to the Right People Even if your pitch is perfect, it wont close if you’re wasting it on the wrong people. Finding out who the decision makers are is a big part of your due diligence. Sometimes all you need to do is ask your contact in the small business you’re trying to sell to. Craft a Call to Action A good pitch needs to direct your prospect to the end goal. The very best way to do that is with a call to action. Even if they’re not ready to buy, setting up another meeting with one of these moves things along. Be Unique Cookie cutter doesn’t cut it when it comes to an effective sales pitch. American Express Open Forum suggests you stay professional but try to stir up some curiosity at the same time. You might start with something like: “I’ve got something to show you, if you think you’re ready.” Be Personable Stodgy isn’t the way to act if you want sales. Being informal means being personal. You can even share a little something from you life to warm things up. Have a Central Idea Being all over the map wont help close that deal. You need to have a central point you keep coming back to. This glue that holds a lot of sales pitches together is often the benefit to the customer. Stick to 3 Big Points Most people cant remember more than three things at once. That means your whole sales pitch needs to revolve around three ideas to be effective. Avoid Metaphors These are thought provoking in great works of literature. However, they can confuse prospects in a sale’s pitch. Telling someone your product ” is the Holy Grail of merchandise” will only cloud the waters. Don’t Try to be Smarter than Everyone Else Building a good team around you draws on the people that have other areas of expertise. Putting together a team of experts helps your sales pitches have depth and scope. Define the Target Audience The Hubspot blog takes this old adage a step further. You need find your target audience and imagine how they will use the product to fully engage with them. Don’t just find them. Try and get inside their skin. Checking out their social media posts helps. Rehearse Often Practice makes perfect. Try to find that medium ground where you can hit all the big points in your presentation without sounding like you’re reading from a script. Work in front of a mirror or friends. Invite Conversation A good sales pitch is a two way street. Letting prospects ask questions helps to understand their needs better and starts conversations. Don’t Ignore Social Media SuperOffice makes a great point about successful modern sales pitches. They report 90% of successful sales people use social media to craft great pitches that work. Sharing relevant content and responding to comments qualifies. Use Icons Remember this is a sales pitch. It needs to have a good rhythm and pace. Using icons with statistics keeps things moving along. We process visuals much faster than text. Use Catchy Email Opening Lines Email is effective but competitive at the same time. A good sales pitch in cyberspace shouldn’t just be an introduction. Engage right away with a statistic or timely reference to news of the day. Something like: “Have you seen the latest on…?” Focus on Being Helpful Using hard sell techniques is old school. The traditional pitch is all about closing the sale. The new method is about asking the right questions, listening and solving a real problem with your goods or service. Upwork has a good graphic on the subject. Try Rhyming Ever wonder why the best tag lines stick in you head? It’s because they rhyme. Try adopting this proven method into your sales pitch. Start with a Question People generally answer questions. If you start your sales pitch with one, you’ve started a back and forth that can wind up in a sale. Try something like, “Have you ever wondered about …?” Learn to Tweak the Pitch Not everyone will buy what you’ve got to sell. However, you can learn from even the folks that say no if you engage them. Finding out what works and what needs to be changed is a process. Source: https://smallbiztrends.com
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