Seeds of Growth - Business Innovation

Refreshing...

Joe Free — Wed, 18 Jun 2008 14:02:06 -0600

Today, according to predictions, we will hit 112 degrees in Mesa, Arizona. The AC units are running, the kids are out of school, and the streets look like a ghost town. "Winter" is officially here. (you know that time when everyone stays indoors because of inclement weather?)

At this time of year the word "refreshing" is particularly meaningful. Whether it is a tall cool glass of lemonade or dip in a cool pool. Both bring relief from the ongoing stress of the heat.

It occurred to me recently that some people are "refreshing" as well. Just like the lemonade, they bring relief from the ongoing stress of making a business work.

These are people that just "get it". You know the ones? They seem to know what you know and you find yourself talking excitedly together and sharing ideas and experiences and just enjoying the conversation.

That's what happened when I met Adam Toren. We got together to discuss Promoterz, our online service that helps businesses give a megaphone to their happy customers, become aware of unhappy customers, and increase the happiness of all customers. As we talked it was as if we were partners working out how to help other businesses succeed. Turns out that is what Adam does.

Adam and his brother Matthew are serial entrepreneurs. Among the impressive list of their ventures is a website, YoungEntrepreneur.com. They initially created this site to help youth become entrepreneurs but over the years it has become more to mean those that are young or new at being an entrepreneur.

The site has tens of thousands of members actively participating in its forums (http://www.youngentrepreneur.com). They also have a "refreshing" blog (http://www.youngentrepreneur.com/blog) as well.

If you are a business owner sometimes what you need, besides more hours in every day, is just to be "refreshed" as you read of others shared experiences. Others who "get it". I guess it is a sort of therapy.

I enjoyed their "10 Mistakes People Make When Starting A Business" and an interview with an Ebay founder on persuing your passion. As you read you find yourself saying, yep, I remember how I learned that. But you also get reminded of things you might want to revisit and you feel more committed to succeeding.

In the end, just as you are refreshed and ready to go as you finish the last of the deliciously tart and cold lemonade, you will have some good ideas and the courage to succeed in this thing we call business.

You work hard to make sure your customers are happy. Don't waste happy customers. How easy is it for your customers to share with their friends? Learn more

The Cannonball Business Plan

Dave Free — Fri, 30 Nov 2007 12:47:23 -0700

Remember that old Burt Reynold’s movie Cannonball Run? It was probably just my age but at the time I thought it was pretty cool--an illegal race across the country in some very nice cars. It turns out the Cannonball Run is not just fictional. Wired Magazine recently ran a story about a guy named Alex Roy whose passion has been to break the 32 hour and 7 minute record for a coast to coast drive.

This is of course completely illegal and let me clearly state that I am not encouraging participation in this kind of activity—though it sounds kinda fun. Having said that, I think we can learn something from their experience.

Their challenge was not unlike that of every small business owner—they needed to accomplish something complex with limited resources (Their limited resource was time. Most of us are limited by funds which of course limit our time). The "Driveplan" they created impressed me. On it they listed every key milestone, targeted time of arrival, potential hazards, weather forecasts etc. Because they had this plan and knew where they were supposed to be every moment, they could immediately tell if they were in trouble and if they needed to make adjustments—including backing out.

Now compare that to your business plan. When was the last time you took it out and checked where you are against it? If you are anything like me, your business plan was something you forced yourself to put together to raise funds. Once that task was done the document went in the drawer to gather dust. Maybe that is due to the way we write the things—all that useless wordiness (kind of like this post). What if we created business plans that looked more like Alex Roy’s driveplan? Imagine clear milestones, expected results, time required, potential hazards each step of the way. Seems like if we created something like that we'd be much more likely to use it and reach our destination.

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Time to Pull a Few Heads?

Dave Free — Tue, 26 Jun 2007 16:25:09 -0600

I live in the arid southwestern region of the United States, Arizona, to be exact. I'm going on my third summer in my current home. The past two summers I have really struggled to keep my front lawn green. Yes, I have lawn. I know that some gravel and a few cacti would be more environmentally friendly, but a little patch of green lawn is more people friendly so I've kept it. Anyway, no matter what I did the sprinkler system for the front lawn never seemed to work right. The system uses little pop-up heads and they were constantly getting stuck, refusing to pop up and spray. Instead they would stay stuck in the down position, dribbling their water into a little puddle an d leaving the rest of the lawn to turn brown. I replaced many of them during the first two seasons thinking that they were just old and no longer worked. I also used my trimmer to shave the lawn directly around the heads thinking that maybe it was getting in the way. No good. The heads still refused to work.

This spring I decided to try a different tactic. It occurred to me that maybe the issue wasn't with the individual heads (they were all good heads) but with the overall system. More specifically, maybe I had too many heads resulting in not enough water pressure for the heads to perform correctly. I decided there would be no harm in testing that theory. I was ready to pull the whole system and start over with some different heads anyway. So I pulled 10 of the 23 heads. I pulled the heads and put a plug where they had been. I didn't move any of the remaining 13 around. I just strategically pulled 10 out of the midst of them. My lawn looks better than it has for the past 3 years! The remaining 13 heads all pop-up strong and have more than enough coverage to fill in for the 10 that are now in an old box in my garage.

What is the lesson for business? There are several, but I think the main one for entrepreneurs is to stay focused. There are a lot of opportunities out there--a lot of good opportunities--but being successful sometimes requires saying "no" even to good opportunities. So how is your focus? Too many sprinkler heads and not enough water pressure? Think about doing less--you could end up with a lot more green.

Customers Need Time to Learn

Dave Free — Wed, 11 Oct 2006 14:47:11 -0600

I had to make a late night run to our local grocery store the other night (thumb tacks for a seventh grade school project). After finding the thumb tacks I was disappointed to get to the front of the store and find that the "self-checkout" lines were closed. The only option was to go through a "normal" check out line. There was no wait but I was still disappointed.

Why is that blog worthy? Because when the self-checkout lines first got installed, I detested them. I hated that voice commanding me to put my groceries in the bag and refusing to let me do anything else until I did. I also detested having to wave my box of spaghetti (yeah, I still call it spaghetti--not pasta) five or six times over the bar code reader at every angle conceivable to get it to read. And I really hated trying to find my produce in all the little pictures (felt some kind of test).

Apparently my fellow shoppers felt the same way, because every time I was ready to check out, there were lines at the normal checkouts and nobody was using the 4 self-checkout machines. Maybe it is just me, but I hate doing nothing and I hate reading about what Brad and Angelina are doing to break Jen's heart and about who is too fat and who is too skinny. In fact, I hated it even more than the self-checkout process so I started using self checkout.

Just like anything new, there was a bit of a learning curve but it got easier. In fact, I think I can safely say I'm now as fast as Sandra down on cash register 3! Here is the amazing thing: I'm not alone. It is rare now to not see a line for the self-checkout machines. It turns out the machines gives us just what we wanted in the first place: faster checkout (or at least the perception of faster checkout).

The lessons? Well, first a better implementation of the checkout machines would probably have hastened their acceptance, but beyond that sometimes customers need time to learn and get comfortable with new innovations. Had store management reviewed the self-checkout performance after the first three months I'm sure they would have been seen as a dismal failure. Next time you're planning an innovation in your customer experience, don't forget to include learning time.

The average American consumer discusses brands 56 times a week. Are they discussing yours? Learn more

How does this work?

Joe Free — Wed, 20 Sep 2006 10:14:16 -0600

Imagine that your local grocery store just implemented some new policies. Here they are:

We don't want just anyone coming into our store so we are going to make all of our customers get a photo ID and we are going to check it at the door on the way in. Oh yea, and we are going to charge them $50+/year for it.
We are no longer going to be stocking every item. We are just going to stock whatever we want and can get a good deal on. People will have to come in and see what we have.
We have too many payment options. We are only going to accept American Express, our own credit card of course, and a PIN based debit card. No Visa, Mastercard or Discover card.
We are no longer going to give bags to our customers, in fact, we are not even going to have bags at all. We'll just use old boxes stuff came in, if we run out too bad we'll just put the groceries in their cart. Oh and we are not going to help anyone to their car, they can do it themselves.
We are concerned that even though we have IDs of our customers, we think they are ripping us off. So we will frisk them on the way out of the store and make sure things in their cart are on their receipt.

What do you think would happen to your local grocery store if they implemented these?

It is amazing that those policies loosely describe a very successful company that has very loyal customers, Costco.

Why does this work? Why do people do it? Is it the allure of being part of a club? Is it that it is an adventure to find out what is there and then be able to tell others about it? Is it that people like to tell others how much they saved? When I talk to people about Costco they often bring up the great food on the way out, the low gas prices, and the deal they recently found. They also always say they are saving money. A quick google search will reveal the arguable nature of that. But whether they save or not is not the point. They believe they are. Costco does that right.

I think they might qualify as one of Seth's "purple cows". They always have "deals", if you want something for less, look at costco. They don't pretend to be anything more and their customers like it that way. They know what their customers like and they give it to them. Not all people will like how they do it, but those are not the people they are after. The store is remarkable to its customers and they are always "remarking" to their friends about the deals they found. Those comments bring in other like minded folks and their business prospers.

Who are your loyal customers? What do they really like about your company and are willing to talk about? Are you trying to be all things to all people and end up not being remarkable? Discover what makes you remarkable and makes your customers talkative. It will lead to ideas on how to grow your company with a happy talkative customer base.

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Whitewashing fences today...

Joe Free — Mon, 11 Sep 2006 15:48:07 -0600

Quick, how many words can you come up with to describe this photo? If you said pool, child, kid, water, goggles or blue you and I would have just made 100 points at one of Googles latest projects.

Remember how Tom Sawyer made whitewashin' the fence so tempting to those passing by?

It seems Google might be doing something similar to label images they have indexed.

Here is how it works. You push a button and get paired up with a partner. A 90 second timer starts and you each are shown the same picture. You type in as many descriptions as you can. As soon as you have a description that matches you are shown another image. Each image you match is worth 100 points. At the end you can even hover your mouse over the images and see what your partner guessed.

I think it is brilliant. Not only are they getting free work from people, but they are discovering what people really think when they see an image. Oh yea, it is also fun.

Think of your business, is there a fun way you could get feedback from your customers helping you whitewash your fence?

(By the way my current record is 900 points in 90 seconds)

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Have You Tried Turning it Upside Down?

Dave Free — Mon, 21 Aug 2006 12:12:52 -0600

Do a search on innovation over at Amazon.com. 11,859 results! Innovation is good. Unfortunately in that search you won't find (at least not in the first 100 results) what I think is one of the best "how to" books on innovation. It's called "The New Drawing on the Right Side of the Brain" by Betty Edwards. Betty does a great job of explaining how the brain works with regards to creativity and includes exercises that can help anyone tap the right side of the brain to come up with creative solutions to business problems.

Here is a quick one to try. Get out a piece of paper and a pencil and draw the upside down picture above. Now print out the picture, turn it right side up and try drawing again. Which of your efforts look more like the original?

If you are like most people, the upside down version will look the best. Why is that?

It is because the left side of our brain is very good at what it does and is in charge most of the time. One of the things the left side is good at is assigning symbols to common objects which makes them quick and easy to reference. For example, a wheel is always round, an eye is almond shaped, etc. The left side is also very good at being abstract--taking a small bit of information and using it to represent the whole. Both are very powerful and useful skills for quickly dealing with most obstacles we face. Here is an example. The following letters in the following paragraph are all mixed up but I doubt you have any problem understanding it:

Aoccdrnig to a rscheearch at an Elingsh uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht frist and lsat ltteer is at the rghit pclae. The rset can be a toatl mses and youcan sitll raed it wouthit porbelm. Tihs is bcuseae we do not raed erveylteter by it slef but the wrod as a wlohe.

Let's hear it for the left side of the brain! It quickly solves thousands of puzzles a day without us even thinking about it. So why do we need the right side?

The very things that make the left side of the brain such a powerful problem solver, limit our ability to see creative solutions. Because it is quick to make assumptions and jump to conclusions, we are not even aware of the assumptions that are limiting us. In addition, symbols and names that it assigns have meanings attached that we don’t question.

Back to the upside down drawing exercise. When most of us draw, the left side of our brain uses its common symbols to help speed the process. If we're drawing an eye, it is almond shaped with a little circle in the middle. If we're drawing a wheel it is always round. Two arms are always the same length etc. Trouble is, once perspective gets involved (which it always does), rarely is a wheel in a picture round nor are eyes almond shaped. I know, I know--your left brain is telling you that is a lie. But it's not. Look at these pictures.

The men are all the same height, the tables both have the same size tops. Go ahead, get out your ruler and measure. In fact, measuring is one great way to shift from your left brain over to your right when you are looking for creative solutions. If you can invalidate assumptions that your left brain is operating on, new possibilities open up. That is one of the reasons real customer feedback is so important--leave nothing to assumption when it comes to the happiness of your customers.

Other ways to shift over to the right side? When you are trying to describe or solve a problem avoid using name references. Instead of saying draw a fingernail, say draw the hard thing on the end of your finger. Or instead of saying, "we need a new advertising campaign" say "how can we attract more new customers?" Anything you can do to avoid using terms that your left brain has assigned symbols to will help you avoid making assumptions and missing possible opportunities.

Turning things upside down is another way to get the right side of your brain involved. For some reason, the left side of the brain doesn't do upside down symbols. That is why most people are able to draw better when looking at an upside down picture--no left brain symbols involved.

Here is a final business example. When you hear the word restaurant what do you think of? Chances are you think of a building or facility where they serve food and you pay money. True enough. But what if you turn it upside down, or least take a different perspective. The symbol or definition that most of us have for restaurant includes a physical facility, but does it have to be that way? Historically it had to be because that was the only way people would know how to find you, but with today's communication devices that is no longer a requirement. What if the restaurant wasn't food in one specific place but great food in any number of many great places? Join their email list and you would be notified when and where they are serving food this week. The local zoo, middle of a football field, top of building--the possibilities are limitless. Talk about delivering unique dining experiences! At least a few entrepreneurs are already doing it.

Hpapy Iianonvntg !

You work hard to make sure your customers are happy. Don't waste happy customers. How easy is it for your customers to share with their friends? Learn more

True Blue Fans Create!

Dave Free — Fri, 18 Aug 2006 15:02:42 -0600

I've written some in the past about the benefits of inviting your customers to participate in the creative process. Two benefits: 1) the content produced and 2) the fact that the more they do for your business, the more likely they are to mention it to others. Just came upon another example of that process taking place online.

CougarBlue.com is a discussion board for BYU Cougar fans (yes, I am one). Anyway, a new thread got started that suggested fans bring a white or blue towel to the football games this fall. The thread quickly became an online brainstorming session including assignments and reports on assignments etc. You can check it out here. Several pages of posts you'll need to scan through to see its progression.

Not sure if the vending or marketing folks at BYU are plugged in to or are aware of it, but it is a great example of fans (customers) getting involved and creating something that they love and will pay for. How can you turn your customers into fans, creating something they will love and pay for?

Go Cougars!

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The Power of the Talking Bubble

Dave Free — Thu, 27 Jul 2006 15:29:41 -0600

Remember the talking bubble from the cartoons? It occurs to me that there is a lot of power in that bubble. In fact, the whole intent of word-of-mouth efforts is to get your business in your customer's bubble.

How much money do we as business owners spend getting our ads up in lights, in a magazine, on TV, or online? Fact is, consumers are more jaded than ever and better at ignoring all that expensive advertising.

The real power is not up on the billboards or on the airwaves. The real power is in the bubble.

Do you remember your customers on their birthday? On their anniversary? Do you give special notice to recently acquired customers? Promoterz does. Learn more

Carnival of Business - #14

Dan Crites — Mon, 24 Jul 2006 09:07:24 -0600

Welcome to the July 24, 2006 edition of carnival of business. Come on in! This edition has got something for everybody! Before we jump into the submissions, we're going to drop by the games booth and announce the winner of 12 free months of PromoterZ. Drum roll please!

And the winner is James Chandler, owner of Data Doctors in Salt Lake City. Congratulations James! For the rest of you, don't give up hope. We'll be hosting the Carnival of Marketing on August 6th and 13th and giving away more prizes. Enter here. Now on to the submissions.

Like any Carnival or State Fair worth it's peanuts, we've got a little something for everybody. From baseball, to employee fraud, to why it is important to have fun, we've got it all.

Benjamin Yoskovitz starts us off with some good reminders for keeping our ever-present to-do lists focused. Get Organized and More Productive! No More Bloated To-Do Lists.

Amy Rogers follows that up with the first item to put on our to-do list: when is the right time to hire? New Hire Gut Check.

David Lorenzo then presents Common Workplace Woes and Their Solutions. Which is sure to put a few more items on that to-do list.

Though we'd all like to believe it would never happen to us, Tracy L. Coenen, reminds us that employee theft happens and provides some good counsel for detecting it (don't worry, the fun stuff is coming!) How to catch employees stealing.

Jeannie Bauer then restores our hope with some great pointers on being better leaders: The Magic of a Great Business Leader.

Tim King follows Jeannie with some great questions to ask yourself about your market. Before Your Idea Can Take Off.

David Maister then lays out the role technology and IT should play in your drive to improvement with The High Priest's Catechism.

Can't talk about technology without 2.0 coming up. Daniel Scocco cuts through some of the 2.0 buzz and lays out in clear terms what it means for your marketing. Marketing Under the Information Age - Top 5 Trends .

Greg Swann sticks with the 2.0 theme but focuses specifically on what that means for realtors. Great stuff here for any professional. Apprehending Realtor 2.0: Seven essential skills of the 21st century real estate agent... .

Baseball, finally! David Daniels uses the New York Yankees as a great example of an organization that has created an upward spiral. Creating an Upward Spiral .

Marcus Markou then reminds that Happy People Are The Key .

And last, but not least Kathy Sierra gives us a solid business case for having fun with Usability through fun. Need more proof? Check out Playing For Water.

Well that's it folks! Thanks for joining us for this edition of the carnival of business. Don't forget to enter to win at the Carnival of Marketing--here on Seeds on August 6th.

You can submit your blog article to the next edition of Carnival of Business using the carnival submission form.

Past posts and future hosts can be found on the blog carnival index page.

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carnival of business, blog carnival.

Blog Carnival index: Carnival of Business - #14

from Blog Carnival on Wed, 07/26/2006 - 7:51pm

CARNIVAL OF BUSINESS is now up at Seeds of Growth!

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The Miracle of the Reservoir

Dave Free — Mon, 17 Jul 2006 17:52:53 -0600

I grew up in the west and now live in Arizona. There is a simple rule for growing things out here (this rule applies everywhere but is more obvious in the arid west): if it doesn't get water it doesn't grow. Early settlers fought their neighbors over water rights knowing that land without water wasn't worth a plugged nickel. In addition to fighting, they went to work and figured out ways to divert and contain spring runoffs, rainfall and the flow of rivers and creeks to use in dry times. They built dams that created reservoirs then built a network of canals and ditches to get the water to the fields. Wallah! Arid desert became fertile farmlands. Fly over the west today and the benefits of the reservoir and resulting irrigation are obvious in the green irrigation circles that dot the land.

Now think about your marketing and advertising efforts. Paying for advertising can feel like paying somebody to do a rain dance--you're not at all sure what you are going to get. But sometimes there is no choice. So you pay and with some luck some new customers fall from the sky. With a lot of luck maybe a lot of customers fall from the sky. Then comes the moment of truth: do the customers run off like a flash flood leaving only a little green in their path? Or have you built a customer reservoir that they peacefully flow into to be tapped again and again ensuring green for many years to come?

How do you build a customer reservoir? First let's be clear, the reservoir metaphor only goes so far. While it is possible to build a dam to trap water, trying to trap customers is a recipe for disaster. Your goal is not to trap but to create something customers want to be, and remain, a part of. Here are some suggestions:

Be remarkable-Find out what is most important to your customers and then be absolutely amazing at it.

Be inviting-Identify your customers and invite them to be part of something great. Make it easy for them to join.

Be persistent-Make the effort to stay in touch regularly, if you don't someone else will.

Be contagious-Make it easy for your customers to tell their friends about your business.

Be attentive-Ask your customers what they think, listen to what they have to say, and continue to make your business even more remarkable.

The early western settlers learned quickly that without reservoirs they couldn't survive. The same is true of business today, rain dances alone aren't sufficient.

When you pass out a Promoterz bounce back card you automatically build an accurate customer list, increase repeat sales, increase referrals and prevent lost business. Pretty powerful little card. Learn more

A Tale of Four Failed Restaurants

Dave Free — Tue, 11 Jul 2006 16:07:38 -0600

What is the most compelling thing about your business from your customers' perspective? Is it remarkable?

I visited my home town recently and noticed that four, fairly-new restaurants were out of business. Restaurants going out of business is certainly not news--it happens all the time--but these four should have survived and thrived, but didn't.

Case #1: Joe's Crab Shack. Located at perhaps the busiest intersection in the area, Joe's opened just two or three years ago. Joe's is a chain of restaurants. As the name suggests, they serve crab and other seafood in a fish camp atmosphere.

Case #2: Lucky Buns. I believe this was a local entrepreneur's project. Built a beautiful building (see picture) on a nice busy street near a freeway off-ramp. The food was hamburgers and ice cream.

Case #3: Chevy's. Also seemed to have a great location and built a nice building. Chevy's is part of a chain and serves Mexican food.

Case #4: Juanita's. Another Mexican restaurant. Pretty good location in a busy commercial center. They built a very nice building to provide that "old Mexico" feel.

All four restaurants opened with great fanfare and significant crowds. Within a few years they were all closed. Why? I have no inside information. I haven't talked to the owners or any one else, but I have a hunch. In addition to remarkable facilities, good locations, and plenty of publicity they all had one significant thing in common: mediocre food.

I lived in the area when all four restaurants opened. I ate at three of the four exactly once. I never ate at the fourth because I had friends that did and told me it wasn't that great. In the restaurant business location and atmosphere may bring them in, but it is the food that brings them back.

How does it apply if you are not in the restaurant business? Make sure you know what will bring your customers back and then focus on making that aspect of your business remarkable, the rest will take care of itself.

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Come to the Carnival this summer and win 12 free months of PromoterZ™!

Dave Free — Mon, 26 Jun 2006 16:52:20 -0600

What says summer more than traveling carnivals? Cotton candy, hot dogs, rides that go around and around until you puke! Does life get any better than that? I submit that it cannot!

The blog world has a few traveling carnivals of their own and over the next few months we've been asked to host several. We haven't figured out how to deliver cotton candy online yet, but to make it interesting we're going to include a chance to win--remember the baseball throw, the ring toss, and the shooting gallery? So step right up Ladies and Gentleman! A winner at every carnival!

Here's how it works. Each time we host a carnival (see schedule below) we will choose a visitor to win 12 free months of PromoterZ™ service ($600 value). To participate, click on this link and then come to the carnival. We'll announce the PromoterZ™ winner along with the posts chosen to be in the carnival.

Don't know what a blog carnival is? It's like a traveling roadshow. The host chooses what they consider to be the best posts of the week from the blogs that submit posts and include a few editorial remarks. For the reader it is a great way to see the latest and greatest without having to hit every blog. For bloggers, it is a good way to increase exposure. Here are the Carnivals we've been asked to host:

Carnival of Entrepreneurship July 6th
Carnival of Business July 24th
Carnival of Marketing August 6th and 13th

Don't forget to sign up and submit your posts. Bring your friends and remember it is BYOCF.

Real Small Business, Real Word-of-Mouth, Real Improvement.

Dave Free — Thu, 15 Jun 2006 12:22:54 -0600

I don’t mean to bite the hand that feeds me, but I’ve noticed that we of the small business/entrepreneur blogging world talk a lot about word-of-mouth and other great business principles, but rarely do we write about actual experiences from small businesses applying the stuff. My goal is to change that with some real case studies of real businesses applying great business principles and enjoying the benefits. Here is my first attempt.

Chuck & Joan Matheny own two Sport Clips locations in greater Phoenix. Sport Clips is a hair cut place that caters to guys. Every stylist chair has a TV tuned to sports, all the décor is sports related, and they have an “MVP” service that includes a hot towel and a neck massage. Their motto is “Guys win.” If you’ve never been comfortable in the fru-fru world of hair salons, this is the place for you.

Anyway, last September Chuck was looking for a way to improve the performance of one of his locations. It had a great staff and a good location but wasn't performing like he hoped it would. Rather than pay for traditional advertising, Chuck decided to focus on encouraging his existing clients to spread the word. Four months later, without spending a dime on advertising, Chuck’s weekly sales were up well over 20% and have continued to grow.

From the client's perspective, Chuck's program starts with a simple invitation received at the conclusion of their service. The invitation is the size of a business card. It includes the stylist's name and offers a free service upgrade in return for visiting a web site to provide feedback. "Our feedback survey is extremely short," says Chuck. "It literally takes our clients less than sixty seconds to complete. Our goal is not to get feedback on every little thing, but to learn if the client is happy with the service and start an ongoing dialogue."

The ongoing dialogue is initiated with the last question of the survey that asks if the client would like to receive additional information and specials from Sport Clips. Nearly 90 percent of those that provide feedback choose to receive additional information. That’s a pretty good “opt-in” rate. Once customers opt-in, Chuck uses technology to stay in touch with them. First-time customers automatically receive reminders via email, including a discount coupon, every three weeks to encourage loyalty. Every customer that signs up receives a birthday greeting from Chuck including a discount on their next hair cut and Chuck regularly sends out email specials associated with holidays or other events.

The Sport Clips client experience is remarkable and worth talking about in and of itself, but Chuck also takes extra steps to encourage his clients to tell others about their experience. Each time a client completes a survey or receives an email from Chuck they are given the opportunity to forward online discount coupons to their friends along with a personal message. Thirty percent of the clients that join Chuck’s program take advantage of the opportunity and send an invitation to their friends.

Chuck's efforts have paid off in many ways. His stylists love the customer feedback and take greater pride in their work. He knows who his most loyal customers are and can contact them without paying for advertising. And, most importantly, his customers are actively telling their friends to try Sport Clips. All of which have lead to healthy growth.

Time, effort, and money required? The invitation cards that Chuck’s stylists hand out are business cards ordered from Vistaprint. They run about 4 cents a piece--four color both sides. Chuck uses PromoterZ for his online survey, opt-in list management, outgoing email and online referral generation needs. Cost: $50 a month. In terms of time required, Chuck spends a few minutes each day responding to customer feedback. Once a week he shares feedback with his managers as part of his manager meeting. He also spends some time each month deciding on a special offer to send out to his loyal customers. This month? Fathers and Sons that come in together get a Free MVP upgrade for Dad and a half price haircut for son.

Promoterz is the hands-free, word-of-mouth marketing service that takes care of the details so you can focus on business. Learn more

I'm Sorry, This Movie is Late. That will be $400 Million Please!

Dave Free — Thu, 01 Jun 2006 09:40:09 -0600

In the old movie rental days I always knew my family was paying a lot in late fees. Apparently, we weren't alone. Netflix, highlighted in Businessweek as number 29 on their Hot Growth list, changed all of that. Here's another great story about an innovative company not only competing with the big boys, but completely changing the rules.

How well is it working? Last year Netflix's profits doubled to $41 million while Blockbuster and Movie Gallery lost a combined $1 Billion! Now get this, $400 million of that billion was due to late fees that Blockbuster had to give up in order to compete with Netflix. Netflix is getting close to 5 million customers and is expected to do nearly a billion in revenue this year. Not bad for a company that many thought would never succeed because we all want "instant gratification" when we rent movies. Apparently, some of us are willing to plan ahead a little.

Perhaps even more important than dropping late fees, Netflix competes by understanding its customers and their tastes and building customer loyalty. Seventy percent of Blockbuster's rentals are new releases. For Netflix the number is only 30 percent. Instead of pushing whatever Hollywood's latest offering is, Netflix actively looks for films that it's customers want (what a concept). The average user on Netflix rates over 200 films (talk about customer feedback). Combine that with rental history and Netflix can predict pretty well what will rent and what won't. This information allows it to actively pursue films from independents that others won't take a chance on.

Of course the future of movie rental is sure to change. While there is plenty of debate on the timing, it is almost certain that web distribution of movies will grow. Netflix plans to be there and will bring along its 5 million loyal customers...

Do you remember your customers on their birthday? On their anniversary? Do you give special notice to recently acquired customers? Promoterz does. Learn more