Be Quick to Listen and Slow to React.

Taking time to listen to people who want to share something with you will keep you aware and help you to respond to trends.  Reacting to trends or complaints too quickly can lead you down the wrong path and can be extremely costly.
This is a tough lesson for most of us to learn, as it goes directly against human nature. People, and especially the “type A” personalities often associated with entrepreneurship, usually feel as though they have a pretty good grasp on what is going on in their respective fields of expertise. The danger lies in getting into a groove and becoming stuck. “We’ve always done it that way”, is a hallmark of this tragic mode of transacting business. I’m not saying that one should change things just for the sake of change, rather, all processes should be reviewed regularly and benchmarked against what is being absorbed from constant customer data mining.
As a sole proprietor, the customer data mining can be relatively simple, i.e. asking questions of your customer base as they are shopping or checking out. The further removed you are from the action of the sale, the more complex this process becomes, and can include social media, industry trending analysis, A/B testing and a myriad of other tools to get to the heart of your customers' desires.
Let me give you a few examples of data mining that I hope will illuminate some possibilities for you. Early in 2009, I was operating a small retail shop with only one other employee. We were selling a fairly complex product with a lot of moving parts, and it was intimidating to many of our customers. “What do I do if this thing ever breaks?” was a phrase that was heard on a nearly daily basis in the shop. We didn’t have a repair shop, in fact, there wasn’t a repair shop within fifty miles of us. After several months of research and polling our customer base, we had enough information to correctly plan and open our repair shop onsite. This was a boon to our business and soon after the opening, revenues from the repairs accounted for 60% of the overall business!
In another instance, I was operating a multi-million dollar business that was considering expanding into an adjunct line of business at significant cost, to increase incremental sales. The marketing team and sales team had created a beautiful proposal with data that had been gathered from a multitude of sources (including several highly-regarded thought leaders) but hadn’t taken the step of polling our actual customer base to get their feedback on whether or not they would actually purchase this product. As it turned out, the problem that this new product solved didn’t justify its’ cost in our geography (the problem wasn’t an imperative for our customers) and they were not very likely to make the purchase. That customer poll not only saved the company a significant amount of money in inventory, labor, and advertising but also saved us the embarrassment of rolling out a huge marketing program that would have clearly painted us as “out of touch” with our clientele.
Customer service agents, delivery personnel, and really any customer-facing personnel can be a tremendous source of information. When the client lodges a complaint, it should be dealt with quickly and decisively and should exceed the clients' expectations. That is good business and a great way to ensure that you will have customers for a lifetime. In doing this, however, one must be careful not to make policy changes “on the fly”. Doing so jeopardizes future business by making it increasingly difficult for customer service agents to know what to do in a given circumstance and appearing hesitant. A better way is to track the nature of the complaints and to get to the root of the problem. If it is systemic and policies need to be changed, then do so after the analysis has been completed. More often than not, the issue is a “one-off”, where a confluence of factors created a bad situation.
These are a few examples of many that demonstrate the value of gathering information (listening), verifying it (slowly reacting), and then utilizing it to make sound business decisions. By following this method consistently, your business will benefit, your stress level will decrease, and you may even run across new opportunities that will take you to the next level!

For more info on or to contact Eric Johnson, Click Here

Be a student of life

     Be curious about the things around you.  Learn about them.  Meet people, get to know them.  You never know where inspiration will start.  Give it the opportunity to take root in your mind.

Several times in my life I have found myself at a crossroads with little direction to follow.  One time, in particular, stands out in my mind, because it led me on a great adventure and gave me the opportunity to meet wonderful people and help to improve the quality of life of many.  It all started from the somewhat selfish thought of trying to save a little money.

I was in between projects and enjoying a little time off.  (Some may call this unemployed, I prefer my version)  I realized one day as I was driving around my little town that I had a big luxury car and spent most of my driving time by myself in it.  While I enjoyed the comfort of the vehicle, it was probably not the most cost-effective mode of transportation given the cost of gas.  (At that time around $5 per gallon)  I had ridden motorcycles as a younger man and thought that, since most of my driving was within a five-mile radius of my home, maybe a cheap little scooter would be a more cost-effective alternative.  

I went to the local Powersports retailer, thinking that I would simply pick out the model I wanted and drive it home that afternoon.  To my surprise, I wasn’t the first one with that idea, they were sold out of all of their models for the model year.  Figuring that maybe it was just because I lived in an affluent neighborhood and most had probably purchased them on a whim like I was attempting to do, I set out to find a dealer in a different neighborhood and make my purchase.  Several dealerships later I began to realize that my thinking may have been flawed.

I went home and turned to the Internet for support.  Scanning the world wide web for a dealership that both had vehicles in stock and was close enough that I could pick it up in a day or two.  Then something interesting happened, I stumbled upon an electric version of the scooter I had been searching to find.  The possibility of NEVER going to a gas station to fill up intrigued me.  I did more research to find out what kind of range they might have.  Did they have to have a REALLY long extension cord or what?  No, they run on batteries, good, how far will they go before you have to recharge the batteries?  Most had a range of 25-50 miles.  That’s fine for me, everything I do is within a five-mile radius of my house, I could go all day if I plan well.  Do I have to renew my motorcycle license?  Well, if I don’t need to travel over 20 MPH they are considered “Electric Bicycles” and I don’t need a license of any sort!  This was all great news, and these electric bicycles were less expensive than the gas scooters I had been looking at.  So, let's see, less cost to purchase, less fuel cost, less maintenance, and no special licensing?  Where can I test drive one of these things, I want to buy one.  Google search….the nearest dealer is 400 miles away!  Well, that was a good idea that will have to wait until I am in that area.  

Green Wheelin' Scooters

Flash forward four months and I am at the county fair on the last day.  It is about dusk when I run across a booth where a manufacturer is selling, of all things, electric scooters!  I start to talk to the salesperson and take a test drive, these things are a blast to ride.  Plenty of power, very nimble, and I decided to try to work a deal and buy it.  As I am negotiating with the salesperson, I over hear another salesperson speaking with the manager about having to ship all of these scooters back to Iowa the next day.  “Too bad we didn’t sell more of these, now we have to repackage them and ship them back to the warehouse.  That will be expensive.”  I get an idea, if I can negotiate a good enough price, I can buy all of these electric scooters and sell them on eBay.  I may even make enough to get a free scooter for myself!  So I turn to the salesman helping me and ask, “How much for ALL of the electric scooters?”  He turns to me and gives me the “yeah, right” stare and says “Seriously?”  “Yes,” I say, “I will buy them all, right now, if you give me the right price”.  “I need to speak with my manager”, he says as he turns and walks away.  After a few whispers the two of them return, his manager introduces herself and tells me that they will need about 45 minutes to work up a price and that I should come back then.  I left to walk around the fair for a little while and when I returned, they had a total price for me.  The number they came up with was well below what I had in my mind was a reasonable price, so I bought 17 electric scooters.  

Scooters for Sale

My intention was to sell them on eBay and Amazon and make enough money to essentially pay for my personal scooter.  I had access to a vacant storefront, knew how to sell online and now had inventory.  Simple, right?  The next day, I rented a trailer and picked up my bounty and took it to the vacant storefront.  I didn’t bother to paper the windows to hide what was going on inside, I wasn’t planning on being there that long.  Anxious to ride, I uncrated my new scooter and started to assemble it.  As I was assembling it, there was a knock on the window.  I opened the door and the guy asked me when I was going to open the store.  I explained to him that I wasn’t really planning on opening a “store”, but that I would sell a scooter to him if he wanted one.  He bought one.  This scenario happened over and over during the next two weeks until I had sold all of the scooters.  (except my own, of course)  Being the entrepreneur that I am and always looking for a new “opportunity”, I was able to recognize that there may be some potential with this product line.  So I wrote a business plan, gathered the needed resources and started my new enterprise.  The business grew over the next 5 years and became a full-service dealership with service and rentals, an expanded product line that included 5 national brands and was very successful.

None of this could have happened if I hadn’t been aware of what was occurring around me.  First, that there was a shortage of economical vehicles, second, that there was an opportunity to buy a “dealership” at a very reasonable price, and third, that the local market accepted the product, in fact, devoured the product, and was able to support a Bricks and Mortar establishment.  Being a “Student of Life” allowed me to assemble the pieces needed to start and grow the electric scooter business into a successful company.

If you would like to know more about me, you can get more information on my website at www.DynamicStrategies.Ltd 

Listen Proportionately for Sales Success

      You have two eyes, two ears, and one mouth, using them in that proportion will be very beneficial in all business transactions.

Maybe it’s a new customer that has the potential to be “the big deal” you’ve always wanted.  Once when I had recently changed companies I was faced with a previously successful sales territory that had been trending downward in revenue for the previous 5+ years.  No one within the organization could come up with a reason why it seemed as though the business had just “vanished”.  The first thing I did was to get a printout of all of the open accounts in the territory (This was back in the stone ages) along with their corresponding credit limits.  The goal was to see who was buying from us, in what volume and frequency, and who still had room to grow.  I was trying to gain some perspective and look for any trends that may exist.  The thing that jumped out at me the most was that there was a handful of accounts that had very large credit lines that were going unused or underused.  Again, no one in the organization could explain this to me.  It was becoming clear that to get answers I was going to have to go to the source, directly to the customer.  I picked up the phone and started to schedule appointments.  I was able to secure an appointment with the president of a large, multi-store operation, for the purpose of this story, let’s call him “Jimmy” and the company “XYZ co”.  XYZ co. had a credit line that would if fully utilized monthly, increase my sales by 1000%.  This was a big deal, and I wanted to make a great impression.  I gathered as much information about Jimmy and XYZ co. as I could from the other salesmen in my organization.  It seemed as though he was a low-key, down to earth kind of guy, so I decided to forego bringing in doughnuts for the first meeting (the industry standard at the time), not wanting to distract from my mission, to solve whatever issue was keeping XYZ co. from buying from us.

After the usual pleasantries, I simply asked Jimmy why XYZ co. wasn’t doing business with us when there are so many reasons that they should.  Then I sat back and actively listened.  If you are not familiar with the term “active listening” here is a brief description.  Active listening occurs when you hear what is being conveyed and ask related questions to make sure you understand it the way it was intended to be heard.  It is a very effective tool in dispute resolution, but should also be used in sales situations.  Actively listening will reduce the canceled or returned orders and as an unexpected consequence, it will also increase sales.  The more a customer feels you understand what they want or need, the more business they will send your way because you “get it” and they know it will be done right!  

During our conversation, it came out that roughly 5 years previous, there had been a salesperson with my company that had made a mistake with one of their orders.  It just so happened that the order was for one of XYZ co’s largest clients, and it was a critical order.  The mistake had cost XYZ co. thousands of dollars in missed business when their client “punished” them.  XYZ co., in turn, “punished” my company by withholding orders.  Rather than going back in and trying to make things right again, the salesperson from my company “assumed” that XYZ co. would never do business with him again, and avoided them altogether.  This damaged the relationship even further, almost assuring the perceived scenario.  XYZ co. assumed that their business was not important to my company, as no one bothered to contact them and turn things around, so they went out and found new suppliers.  

This cycle went on for years until I came knocking on their door.  Needless to say, Jimmy was a bit skeptical of my ability to perform when my organization had shown no desire to do so for over 5 years.  I assured him that my desire was genuine and that I was willing to earn the right to do business with XYZ co. again.  He reluctantly agreed to allow me to speak with one specific salesman and take only “non-critical” orders from him, on a trial basis.  

I went back to my manager and told him what had transpired and gained his support for my plan of under-promising and over-delivering to this customer on a trial basis.  Over the next few months, word got around to other salespeople in XYZ co. and finally to the main purchasing agent that we were exceeding expectations in product quality, pricing, and delivery, so naturally our business together grew.  In twelve months XYZ co. alone effected a 1200% growth in revenue for my sales territory.  There were others in the geography with similar stories and results, which helped me to become a highly regarded salesperson in that company, winning many sales awards and earning significant bonuses.

Active listening had created an opportunity for me that had paid off in spades both financially and from a personal perspective.  Even though I am no longer with that company or even in that industry, I still have friends and mentors because of that opportunity. 

If you want to know more about me, you can go to my website at www.JohnsonCapital.solutions