THE X FACTOR BLOG

Empower Your Employees

Thu, 19 Apr 2012 00:46:00 GMT

If you’re wondering how you can dramatically enhance the customer service experience in your business while decreasing the amount of time you actually spend on customer service activities, consider that the solution might be to empower your employees to do it for you.

While having systems and procedures in place will most definitely streamline your business and increase efficiencies, the reality is that a business is a “place of varied function,” which means that there are always going to be situations and circumstances that crop up outside of the parameters defined in your business training material, policies and literature. On top of that, individual employees interpret situations and guidelines differently – all of which lead to many customer questions and problems coming directly through to you or the manager of your business.

Having customer inquiries, challenges or disputes handled at a management level not only distracts these people from their key role in the business (working on the business rather than in it) but it also detracts from the customer service experience. That is, your customers have to wait longer, they often don’t receive a personalized solution, and their perception of your customer service members diminishes – that is, you have created a disempowering context for your front-line team by not allowing them to make any decisions or use their initiative to help a customer.

It is important to note that more and more consumers are looking to do business with people, not businesses. They want to feel special and remembered, thought of as a person not a purchase. The bottom line is that if your customers don’t feel valued and enjoy interacting with the people in your business, you’ll never create the type of raving fans that every business dreams of.

So what can you do?

You can create a company culture that gives employees the free rein that they need to really go above and beyond to create a WOW customer experience – and that it is their job to do so. Employees should be given the power to think on their own feet and use their initiative to solve problems and create delight without the need to check with anyone else. Doing so actually increases employee satisfaction at work, as they themselves feel like they are actually making a real difference and gain more confidence in dealing with complaints. And importantly, creating a WOW service culture in your organization is a sure-fire way to increase customer loyalty, retention, and sales.

Examples of Empowered Employees:

At leading hotel chain, Ritz-Carlton, they empower their people in a number of ways. To start with, they don’t define specific job roles for their employees. Instead, they define the type of experience they want guests to have. For instance, a waiter’s role is not to serve food but to create a memorable experience. It’s also to anticipate customer needs.

The empowerment goes even further - employees can make decisions on their own without having to refer to a supervisor first. Ritz-Carlton employees are empowered to take ownership of complaints, having the authority to spend $2,000 per guest to resolve complaints or problems without referring to management. The result is that guests at the Ritz-Carlton received personalised solutions to their problems rather than standard responses from a customer service “Rule Book” or delayed outcomes because employees need to defer to upper management.

Zane’s Cycles, one of the top three retail bicycle stores in the U.S., sells high-quality products with a focus on creating enduring relationships with customers. The founder, multi-millionaire Chris Zane, is relentless in his pursuit of extraordinary customer service, and employs confident team members that he trains with this philosophy. Just one such example of this in practise is if a customer needs a low-cost item such as ball bearings that cost around a dollar. Zane's employees are trained to say, "Here, take it. We'll catch you next time." The customer feels like they’re getting a “treat” and the resulting good will is worth much more than the cost of the $1 part. Zane’s policies are built around knowing the lifetime value of a customer, and each transaction further cements a brand loyalty that is the envy of retailers nationwide.

On a smaller scale, Tim Ferriss, author of the run-away bestseller, The 4-hour Work Week extols the value of empowering your employees in order to free up your own time. He reveals that he spent hours every day responding to incoming queries and handling problems and complaints – often processing up to 200 such requests every day – before he created a policy and loose system for his customer service representatives to deal with the problems themselves as long as it would cost less than $100 to resolve. The result saw less than 20 customer-service related emails in his inbox per week, a decrease in the percentage of returns, an overall reduced cost of outsourcing and a boost to his profit margins.

If you’re still not convinced about the difference that empowering the employees in your business can make, then imagine for a second now that you are an employee in your business facing a minor complaint from a customer:

Scenario A: “I’m sorry, I’m not authorised to do that, you’ll need to speak to the manager.”

Scenario B: “I’m sorry to hear that. What can I do to resolve this for you?”

Still not convinced? Then imagine that you are the customer faced with these two different scenarios and choose which employee you’d do business with...

At 10X, we teach business owners how to empower their team through our 10X Insights and training sessions. You might be surprised to discover the hidden gems in your team that are just waiting to be discovered. After learning new strategies for creating an empowered team culture, one 10X Coaching Club member later reported that some of the best new ideas for their business are now coming from their receptionist! If you’d like to find out more about creating an extraordinary customer service experience and unlocking the hidden potential in your business, it’s time to give us a call!

The 5 Marketing Mistakes You Must Avoid

Thu, 19 Apr 2012 00:44:00 GMT

Most business owners have the best intentions in the world when it comes to their marketing, but often, they get so excited with the ‘big picture’ of how many new leads a certain campaign is going to bring in, or the creative execution of a particular piece of collateral, they come unstuck by falling into at least one of the five following pitfalls – read on to find out what they are and how YOUR business can avoid them.

Poor positioning

Have you undertaken thorough research of your customers to see who they REALLY are and what they REALLY want from you? What about market-wide research? Have you exhausted all possibilities in the market to see if there is a demographic you’re currently not tapping? Perhaps a demographic that might actually be more or just as likely to buy from you as your current target market?

If not, now’s the time – you can’t roll out or even plan a marketing schedule for your business, unless you’re crystal clear as to WHO you’re marketing to. Once you know who your customers are, you can then define them by sex, age and even status, e.g. working mother, business owner etc. This will give you a solid foundation on which you can build your campaigns – it’s vital you know who you’re speaking to, before you metaphorically open your mouth. When you do this, you’ll save time, money and effort – all resources that no business can afford to squander.

A ‘blah’ brand

Would you wear the same clothes you bought 5 years ago and think they still looked fresh today? Probably not. Similarly, if your brand hasn’t had a refresher in a good few years, now is probably the time to give it a new look. Depending on who you use, you could spend anywhere from $400 to $5,000 (for a really high end designer) to give you some new logo/stationary/signage etc. options.

Obviously you don’t want to completely reinvent your brand such that current customers would be alienated, but sometimes a slight tweak here and there, an updated font or tone up or down of colour can make the world of difference in bringing your brand bang up to date.

A weak website

Are you running an online business, or just a ‘website’? You must remember, the global reach of the internet means there’s enormous potential for you to reach new and diverse markets around the world. If you’re thinking local with your website and only envisioning your local customers are logging on to your site to take a look at who you are - think again. Your website should be acting as an online business portal to give you maximum bang for your buck.

Too many businesses have websites that are nothing more than a glorified brochure. Not surprisingly they generate few leads and even fewer sales from this kind of web presence. Do yourself a favour - don’t let your website let you down – it’s simply worth too much! Many design companies can give you a reasonable rate for creating an e-commerce presence – you just need to shop around a little.

Dud direct mail

How do you stop your direct mail campaign from ending up in the trash? Well here are a few tips to lend your campaign a little more cut-through. If you’re writing a letter, make it look like a personalised letter, keep the sentences short and hire a professional copywriter who is proven in that medium to achieve results.

If you’re sending coloured printed material, don’t just send a brochure, make the piece creative, ensure you have a strong offer, use good quality, glossy stock and wherever possible, don’t skimp – this kind of approach will just have your piece blend in with all the other ‘junk’ and most likely won’t even get read.

Remember, direct mail at best will net you a response rate between 1 and 3%. Do the numbers on whether the value of the customers you’ll attract at those kind of rates will justify the cost of the campaign.

Crummy Customer Capture

How good are you at selling to a customer again and again? Pretty crummy? Well, you’re not alone – many business owners forget that when you send out a marketing campaign, 80% of your business comes from existing customers and 20% comes from new customers. If you’re not able to resell to your current customers, your profits will most likely take a hit. When you consider that it costs around 5 times more to sell to a new customer than it does to an existing one, you don’t need to be a mathematician to see that you need to have a good system for not only marketing effectively to your previous customers but also a reliable tracking system so you can put reward programs in place to have those customers buy even MORE in future.

Get On The Media’s Good Side

Thu, 19 Apr 2012 00:42:00 GMT

No matter what business you’re in, seeking to attract positive media attention should be right up there on your list of ‘to do’s’ – after all, you can’t have your competitors grabbing all the headlines, especially if you know that your product or service is superior and better meets your markets’ wants and needs.

While there are hundreds of articles online regarding the various strategies you can use to obtain column inches for your business, many of those articles often DON’T tell you what NOT to do, which can almost be as important as knowing what you SHOULD be doing.

Specifically, there are a ton of things you need to avoid like the plague when dealing with the media, including some practices that get you noticed for all the wrong reasons and others which will seriously damage your chances of building a long-term mutually beneficial relationship with journalists, editors and other members of the press.

So, here are some big ‘no-nos’ when it comes to media relations:

Refusing to take ‘no’ for an answer
While persistence pays in some circumstances, you have to respect the fine line that exists between a simple ‘follow-up’ and outright harassment. You’ll damage relationships if you can’t accept ‘no’ for an answer, particularly when there’s probably a very good reason a journalist thinks your story isn’t suitable to run. Apply your persistence to an ongoing media relationship building effort, instead of burning your bridges over one measly release.
Long winded releases
One page of great information, comprised of a killer headline, strong newsworthy angle and bulleted list of key points will stand you in far better stead than pages and pages of waffle. When journalists want more info, they’ll ask for it.
Stretching the truth
Once you’ve embellished the truth for the sake of getting coverage, a journalist will never trust you again. Be honest and if you have a good story, that alone will make you stand out.
Do your homework
Only approach journalists who cover your industry/area. It will get people’s backs up if you pitch your business story to the lifestyle editor or think that a shotgun approach will get you some traction, somewhere. Carefully do your research before you approach journalists so you know that who you’re speaking to will be interested in your story and will be able to help you.
Be prepared, look professional
If you send a web link to a journalist, make sure it works! Nothing is more frustrating or time wasting than dead links on websites or blogs. You must look professional at every turn, so double check your links/site before you send a journalist there.
Cold calls aren’t courteous!
Many journalists view unsolicited calls as intrusions and far prefer it if you email them before you call.
Don’t try to sweeten the deal
Be aware that ‘freebies’ or gifts over a certain dollar value are often banned by many media outlets. Journalists want good stories, not free ‘stuff’ that clutters up their office. One exception to this is free food – particularly for those who work late into the night- be clever and creative and remember, while it might garner you some brief attention, it won’t necessarily guarantee you publicity.
Zero appeal
You have to accept that while your new fandangled process for packing pickles might rock your world, the general news-reading public will probably be less than impressed. Remember you have to have wide audience appeal for a media outlet to want to cover your story.
Gimmicks get very old, very quick
Gimmicks generally fall flat because they’re either a) confusing, b) not sensational enough or c) are only being used for gimmick’s sake. Remember that journalists are busy professionals who want the facts, quickly and without extraneous ‘stuff’ that will waste their time and/or slow them down.
Do what you say you will
If you want the press to help you out, you need to hold up your end of the bargain too – which means, make sure you are vigilant about following up on journalists’ requests – for example sending more information if they have asked you for it. It’s imperative you respond quickly and professionally, otherwise you’ll be viewed as a time waster.

In summary…

The best ways to get on the media’s good side take time, research and care– but it’s well worth the effort. Firstly, work on building up strong relationships with the key journalists in your industry. Then, acquire the knack of identifying and communicating a good story about your business or industry.

Finally, be aware that journalists will be far more eager to hear from you if you abide by some basic rules of courtesy and demonstrate an understanding of their needs, as well as the demands they’re under. Keep all this in mind and you’ll find it far easier to stay in their good graces.

If you’d like further assistance in getting your business noticed by the media, call us now on 1300 855 109 – we’ll be happy to help!

DIY PR in 10 Easy Steps

Thu, 19 Apr 2012 00:39:00 GMT

Have you ever opened up your local newspaper, and been shocked to find the smiling face of your competitor staring somewhat smugly back at you from a full-page feature article?

Not fair, is it? All that publicity is surely going to drive customers away from your business towards theirs. Your products and services are so much better than theirs, so why do they get coverage in the media?

Well, here’s why: they got the coverage because they talked to the media, and they did this by employing a public relations strategy within their marketing. And while all business owners know of public relations, most have never considered using PR to get their name out there in the marketplace.

The question is, why wouldn’t you? Publicity does generate interest and drive customers to your business. This is because people trust what they see and read in the media. Having your name (positively) mentioned in the media is basically a third-party endorsement. It builds your business’s credibility like no advertising or sales pitch can.

Public relations is a great way to educate potential and existing customers about your business and your products, build your business’s profile, and establish your credibility as an expert in whichever area is your specialty.

Sounds good? You haven’t heard the best of it – public relations is cheap. Most of the time, it doesn’t cost a cent.

So how do you take advantage of such a lucrative strategy? Engaging in public relations isn’t hard and doesn’t take a lot of effort – in fact, a few hours of your time per month should be plenty. Just follow these simple steps to get your own PR campaign started:

Research media outlets – Put together a list of the media that you want to get published in – that is, media that targets the people YOU want to target. After all, it’s no use getting published in a computer magazine when you sell gardening services.
Brainstorm ideas – Think about anything newsworthy that has happened recently or will happen in your business – the launch of a new product, receiving an award, an exciting event, expert commentary on recent events/topics, and any achievements or a major change in your business.
Write a press release - A good press release will let the audience know who you are and what you do, and is brief and to the point. You should have an attention-grabbing heading, a brief subhead, and an opening paragraph detailing the who, what, where, when and why. The body should also be short and snappy, with the most important/interesting information displayed first.
Send your release – You can either fax or e-mail your releases to the relevant outlets, but make sure your timing is right – you may need to check publishing deadlines, or ensure that the public are informed of an event that is happening in your business by a certain date.
Follow up – This is an important step, as the follow up is often what gets a release published. Make a call to the editor or journalist you sent the release to a few days after you send it.. If you can create a relationship with the journalist, this will make the publication of your future releases much easier.
Be prepared for an interview – If a journalist is interested in your story, don’t be surprised if they call you for an interview to get more information – but make sure you’re prepared for it! Think up of possible questions beforehand and rehearse the answers. Prepare a few points you want to get across and make sure you stay on track.
Look out for your release - If a media outlet does decide to publish a story based on your release – firstly, congratulations! – and secondly, make sure you know about it! Journalists are sometime too busy to inform you of whether or when publish your release, so it’s up to you to read and review the publications for any media mentions.
Thank the journalist / editor – Send a brief thank you email for running the story, and start nurturing a win-win relationship with that contact. Keep them in the loop about any positive feedback on the article that you receive from your customers, and publicise the story and the publication by featuring a link to the article on your website/Facebook/Twitter page, and by getting clients to do the same. Journalists love to see the “buzz” generated around topics they write about, and also monitor which stories receive the most feedback, so helping them keep track will mean that they come to you the next time they want to write a story in your area of expertise.
Leverage your media mention – Having your business featured in a publication is exciting stuff, so make the most of it! Frame an over-sized copy of the press clipping and hang it in a prominent position in your place of business and in your office, so that customers and potential clients will be sure to see it. Send out the press clipping and a note to your suppliers and industry partners to personally thank them for their contribution in helping you achieve this media coverage, and publicise your coverage as much as you can - it IS a big deal!
Get the ball rolling on your next PR campaign – Don’t stop with that one release! Remember that the more coverage you get for your business, the greater visibility you have in your target market – so keep adding to your portfolio and get as much media exposure as you can.

Do you need more assurance than just insurance?

Fri, 13 Apr 2012 01:27:00 GMT

If you live in Australia or New Zealand, you'll no doubt have witnessed the devastating impact and unpredictability of Mother Nature - with earthquakes, droughts, fire, flood and cyclones all occurring in the past year alone. While these natural disasters ravage communities, the impact on local businesses can be equally devastating. But it doesn't always need to be that way. Why is it that one business can recover from a disaster, whereas another similar business may be forced to close its doors?

It’s time to take a good hard look at your Risk Management Plan ... Does it include a Business Continuity Plan and a Disaster Recovery Plan?

What’s the difference, you may well ask - after all, aren't they one and the same. The answer is 'no'. Disaster Recovery is the process by which you resume business after a disruptive event. Whether it's a catastrophic event like the floods we have just experienced in Queensland, a terrorist attack like 9/11 on the World Trade Center or something completely different like an epidemic attack or a computer virus - Disaster Recovery is the plan by which you will recover. Recovery will most likely address software, data, and/or hardware as well as staff, particularly key staff members, and other elements vital to your business.

A Business Continuity Plan must be developed around your business’s circumstances such as:

Shutdown - how would this impact your business financially and otherwise?
Prevention - can disaster be avoided by taking prudent steps?
Recovery - how and what you will need to recover.
Planning - write your plan and implement the plan elements.
Training and testing - be sure everyone knows what to do and that the plan works!
Maintenance - continuously review and update to suit your current situation.

Start by identifying the risks to your business.

What could cause an impact?
How serious would that impact be?
What is the likelihood of this occurring?
Can it be reduced or eliminated?

For example, if you owned a cafe, your risks might include fire, food poisoning and flood.

Determine which risks would have a greater impact than others.

For example, a cafe on high ground may not be likely to flood, but in the event that it did, the impact would be very high, potentially destroying equipment and stock leading to loss of trade and revenue; whereas an outbreak of salmonella would lead to loss of clientele but unlikely to make an impact on equipment.

Compare the likelihood and impact of each risk.

In the cafe example, your prioritised list may be:

Fire - major risk. The likelihood is high and the potential impact of a fire on the business is very damaging.
Food poisoning - second priority. Whilst the probability may be assessed as low, the impact on the business would be very high.
Flood - your third priority risk. The probability is assessed as very low, but again the impact on the business would be very high.

Evaluate the risks and prioritise the resources you are prepared to invest to treat these risks.

Consider the options for treating risks.

Identify the strategies that would relate to your business such as:

insurance;
quality control processes;
staff training;
government compliance;
maintenance of facilities, plant and equipment;
appropriate security devices;
systems and controls; and
contingency plans.

As an example, some of the treatment strategies for the risk of flood might include:

ensuring flooding is covered by your existing insurance policy and the amount of cover is adequate;
ensuring stock and equipment are stored off the ground where possible; and
organising off-site storage for stock and equipment when a flood is forecast.

Review your Risk Management Plan.

If you do not have a Risk Management Plan now is the time to develop one, detailing information about:

risks identified;
level of risks;
planned strategy;
timeframe for implementing the strategy;
resources required; and
individuals responsible for implementing the strategy.

The final documentation should include appropriate objectives, a budget and milestones on the way to achieving those objectives.

Review your Current Insurance Cover.

For a small business, adequate insurance cover can mean the difference between a business surviving a crisis or not. It is critical to note that some types of insurance cover are required by law, such as third party car insurance and workcover, but other insurance is voluntary. In deciding which policies, and what level of insurance to take out, a business needs to:

Decide on the critical areas of cover to remain competitive with other businesses.
Decide on how much the business can afford to pay for insurance without impacting on profit targets.
Assess whether the business has adequate back-up for key personnel in the event of injury or other absences. If so, you may not need key person insurance.
Set a budget for insurance premiums after receiving advice and quotations from brokers or agents.
An insurance broker who is experienced in business insurance may be able to help you undertake a risk assessment to identify the parts of your business that are most vulnerable and critical to your business continuity plan. The cost of insurance cover may be cheaper if you have undertaken a risk assessment and developed a risk management plan.

Securing adequate insurance cover may assist in minimising the impact a crisis has on your business, but it’s not the be all and end all of protecting yourself against potential disaster. Think about your Risk Management Plan, your Disaster Recovery Plan and your Business Continuity Plan. Being prepared gives you greater likelihood of weathering the storm no matter what intensity, shape or size it comes in.

From the Desk of Nic Clark: Why It's Vital To Keep An Eye on KPIs

Fri, 13 Apr 2012 01:26:00 GMT

Next, have key managerial personnel meet once a month to review the company's KPIs and brainstorm ways to improve them. For example, if your number of sales is down during a particular month, brainstorm ways to find new prospects. Next, using your sales per salesperson indicators, look at who is converting these leads most effectively and who is not following up leads effectively.

You must always have solid data on how your teams (particularly sales teams) are performing. Remember, if one person is doing well, they probably have some tricks up their sleeve that they could share with everyone, to improve overall conversion. Don't let your business flounder because of a lack of communication or failure to share knowledge.

Involve your team

Make the discussion of KPIs a central focus for your employee team meetings. One way to do this, that's also incredibly motivating, is to implement a reward system based on the company's overall KPIs. Obviously sales teams will have their own specific targets to meet, but at an organisational level, it does wonders for morale when goals are met and everyone in the company is rewarded. A reward system is a great way to get your team on board and have everyone working toward the same end.

It's also important to involve your team if one or more of your KPIs vary from the 'standard'. Some companies even like to print out weekly KPI reports and briefly cover them during team meetings, to address and rectify any problems before they emerge as more pressing issues at the month end. If you're seeing big variances from week to week, this more frequent reporting could also be a great idea for your particular business. Once statistics becoming more standardised, you can go back to monthly reviews.

Finally, watch for trends - don't look at monthly reports in isolation. You might have a slump in sales in December, if for example, you're a recruitment agent (typically employers wait for the new year to hire where possible, to avoid having to pay out holiday leave etc). However, if January, February and March are ALL showing slumps, you should look at the reasons behind this trend and address it.

In closing
It's your responsibility to ensure your business is performing efficiently and profitably. Keeping a vigilant eye on your key performance indicators is a huge help in this regard and with the wide range of electronic accounting programs now on the market, producing accurate reports at the touch of a button is easier than ever.

Becoming the Leader of Your Tribe

Fri, 13 Apr 2012 01:24:00 GMT

What is a tribe and how can your business benefit from one?

Put simply, a tribe is a social community built around an idea, a vision, a goal, a common interest, a common problem, or a unique product/ service, and is facilitated by the sharing of experiences, education, support and encouragement.

A lot of business literature in the past has focused on building your business brand, on creating raving 'fans' of your business and on how to build customer loyalty. But the reality is that no matter how much money you spend on attracting people to your business, the simple fact remains that people don't really follow businesses.

People follow people. They follow ideas. They follow movements.

A movement consists of a story, a connection between the tribe and the leader, and something that needs to be done.

It is part of human nature to want to belong to something, to have someone to follow. In life, people create tribes - with or without our businesses. Given that, adopting a 'tribe management' approach in business (instead of 'brand management') may prove to be one of the winning strategies of the future.
This means stepping up to become the leader of your own tribe. It means understanding that people want to connect with each other not companies - so instead of using your business as a platform to sell something, use it as a hub for bringing together a tribe of likeminded people.

In creating a tribe, your job as the leader is transform a shared interest into a passionate goal and desire for change - or in other words, to start a movement. You then need to create momentum and provide a way for members of your tribe to connect with each other. As a business-savvy leader, you can then turn your attention to delivering the products and services that your tribe wants, instead of the more traditional focus on finding more customers for existing products.

Most people are followers by nature. They are ready and waiting for a leader to step up and create a movement and tribe that they want to belong to. If you are a business owner who wants to create a more people-centric way of doing business, then that leader could be you. When transitioning from business owner to business leader, personal branding - that is, building your own profile as well as that of your business - is incredibly important. By positioning yourself as the leader, you're giving people the green light to start following YOU.

The Tribe Life-cycle:

Find & build your tribe - Articulate your vision, determine your niche, and then spread the word about your tribe, online and in the real world.
Establish & maintain leadership of your tribe - Without telling your tribe what to do, work on creating and maintaining an influential presence by building trust and providing direction.
Gather your tribe - Put your social web strategy in place and create a virtual meeting place (eg. a social website) and/or real-life hub where your tribe can communicate.
Feed your tribe -- Offer free advice, research, ideas. Allow members to share with each other, to feel engaged, and to communicate with you directly.
Trade with your tribe - Sell your services or products to tribe, exchange information, and adopt any ideas or directions that are better than yours!

10X Coaching Clubs serve as mini-tribes: 8 like-minded business owners come together under the leadership of their 10X Coach with the shared vision of improving their businesses and their lives. Here's what two Coaching Club members have to say about being part of the '10X tribe':

'I've implemented some excellent ideas that were exchanged by our club's co-members and it's really encouraging to see the other members achieve their goals. Being a part of 10X Coaching Club makes you feel more inspired and excited when you think about your business.' - Monique Field, House and About for Inside and Out

'It's been fantastic because we can utilize their knowledge and share our knowledge - to find out what works and what doesn't and eliminate non-productive efforts. There has been a sense of camaraderie among our Coaching Club members and a generosity of information -sharing that has led to big cost-savings in the group.' - Toni Alderdice, Midwest Foods

'Although it doesn't fit some traditional business models, building a tribe and facilitating it through easy online communications is extremely valuable for non-profit organizations, associations, hobbyists, support groups, and for-profit businesses. If you want to test the waters, you can start tribe-building as a complementary strategy to your regular business development activities. You can even adopt a 'tribe management' approach in your business as a model for leading and inspiring your team!

10X Top Tribe-Building Tips:

Create a 'hub' - such as a website or Ning community
Have business cards and email signatures with links to your tribal 'hubs'
Use social media strategies - Blogs, Facebook, Twitter, Linked In, Myspace
Start networking - online and off
Try to create 'buzz' through viral marketing and word-of-mouth exposure
Create online marketing tools such as Ezines and Ebooks
Write books, articles, reports, newsletters and even manifestos
Give public talks/seminars/workshops or online 'events'
Use PR and PR 2.0 strategies to build your authority, credibility and visibility as the leader of your tribe and gain exposure for your tribe

Over the next few issues of the 10X Results Ezine we'll be looking at the specific tribe-building strategies you can use for your Blog and on Twitter, Facebook, and networking sites like Linked In.
In the meantime, if you want to read up on the concept of tribal management and the power of community engagement, here are a few books to get you started:

Seth Godin, Tribes: We Need You to Lead Us; Mark Earls, Herd: How to Change Mass Behaviour by Harnessing Our True Nature; Jeff Howe, Crowdsourcing: Why the Power of the Crowd is Driving the Future of Business; Chris Brogan & Julien Smith, Trust Agents: Using the Web to Build Influence, Improve Reputation, and Earn Trust.

Branding Basics - How Do I Use My Brand Strategy?

Fri, 13 Apr 2012 01:22:00 GMT

Together with your competitive positioning strategy, your brand strategy is the essence of what you represent. A great brand strategy helps you communicate more effectively with your market, so it is vital to follow it in every interaction you have with your prospects and customers.

Both your competitive positioning strategy and brand strategy are used during:

Your client's actual experience with your business itself
Your outbound marketing communications to this client before, during and after the delivery of service.

How should I be using my brand strategy?

Your brand strategy will used at every single client touch point and should deliver and reinforce the concept of value your brand aims to occupy in your clients' and prospects' minds. So for example, you'll communicate your brand strategy through your pricing strategy, corporate visual identity, messages, brochures and website (to name just a few).

Other areas your brand strategy impacts upon:

Your brand strategy may also call for a need to implement a better CRM system (to manage customer relationships in a fashion commensurate with your new brand).
Your criteria for recruiting and rewarding employees should match the criteria of your brand values. I.e. you should look for the right skills and aptitudes that will represent your brand promise effectively.
All key outbound communications (specific strategies should be formulated for these under a comprehensive marketing plan). The list of outbound communications is generally extensive for most businesses, hence for the purposes of brevity below are some brand execution ideas for key online communications only:
- Media releases - An editor giving your brand value credence is worth its weight in gold.
- Blog coverage - Being covered in blogs goes a long way to establishing your brand position.
- Social Media - The fastest way to brand believability is to hit a homerun in the social media stratosphere. There are hundreds of social networks, so I would suggest showcasing your brand values in those where your target market participates.
- Brand leadership advertising - Once your brand position starts achieving traction in the blogosphere, social media and mainstream press, further reinforcing that with leadership advertising can be invaluable.
- Web Video - Web video is a must for any company looking to build a believable brand promise. Short "how-to's" and free advice in your area of expertise, followed by a client testimonial posted on YouTube and your website (and even sent to clients and prospects as part of an e-nurturing campaign) are the latest tool in the big brands' toolkits.
- Webinars are a low cost way to generate leads and deliver value in line with your brand promise.
- Search Engine Optimization - Being 1st page of Google for your target marketâ€™s key search terms builds a believable message.
- Websites and Microsites - Can you craft a microsite around a specific customer demographic? When researching your market you should discover different segments, from which you will be able to isolate the specific problems your brand solves for them, hence microsites could be built around these. Content on these microsites would be personally-relevant and speak directly to these markets, building brand loyalty.

Cant Buy Me Love

Wed, 22 Feb 2012 01:51:00 GMT

Why customer loyalty doesn’t have to cost big bucks!

Many business owners think that they have to ‘buy’ their customers by offering lower prices, discounts and sales. However, this is simply not the case and what’s more, it creates a misperception in the marketplace that price is the only purchasing factor important to customers.

This in turn causes a situation where appropriate pricing of products and services becomes one of the biggest issues business owners and managers face. The reality is, most people DON’T purchase on price. Price, or rather, value for money is most definitely incredibly important to a customer - but price is NOT a driving factor for most people. It’s just one element that plays a role in whether or not they will buy - they also look for service, advice, support and quality.

In fact, in his book ‘Guerilla Marketing Weapons’, author Jay Conrad Levinson mentions a survey that revealed just 14% of people deem price to be a prime influence over a sale. That means 86% of people viewed other factors, like confidence in the company, perceived indifference to their needs, quality and service as more important than price.

As a 10X Business Coach, I’ve personally come across hundreds of small to medium sized businesses owners in my daily work who believe that if they just make their prices low enough, customers will flood through the doors. Here’s an example scenario which illustrates how any business, regardless of industry can conquer ‘price fears’ once and for all.

Imagine you own a fabulous boutique store full of wonderful clothes. As a regular customer approaches you to purchase a few things for herself, you hear yourself saying “Hi, how are you? At the moment there is a 20% discount on these winter stock items, and since you’re a regular customer, I’ll take off an extra 5% as a thank you”. At this point your rather embarrassed customer objects “No, no, no, you don’t have to do that”. Alas, you’ve done it now, so you say “Oh no, I’d love to.”

Wow, in those few words you just gifted your customer $25 cash for every $100 she was going to spend. Was that extra discount really necessary?

Did you know that a 20% discount on $4,500 worth of stock equals $900 cash you’ve just lost?
Think about this: if your margin is 35% and you discount 20%, your sales volume has to increase by 200% to get the same dollar profit. Selling 10 items at full price equals 30 items at 20% discount.

Instead of constantly discounting, how about putting your customer in the draw for case of wine, or a $200 travel voucher instead? Their chances of winning something nice are certainly better than Lotto, and at worst, you’ll have an extra $700 in your bank plus an extremely happy customer!

Retailers flaunt sales like there’s no tomorrow. The evidence is everywhere – drive around your town and count the signs. When you get addicted to running discount promotions all the time, you are training your customers to NOT buy from you until you have your next promotion. You might think it would be tough swimming against the ‘sale’ current but if you offer customers other incentives to buy (like a promotion or competition) you needn’t miss out on transactions. Not only that, once you have more money in your bank account you’ll be thankful you put an end to never-ending price-cuts.

P.S. If you’re stuck for something to say when customers are paying you, tell your customer the features, advantages and benefits of their purchase, invite them to an exclusive ‘client only’ event, sign them up to your newsletter, ask them what they like about your store and service, or ask them one thing you can work on to make it better!

Overcome The 5 Most Common Price-Related Mistakes

Potential customers come to your business because they have shown an interest in your business’ product or service specifically. Don’t invite them to shop around with your competitors.
People don’t ask the “how much” question because they’re shopping around on price - they see this as an icebreaker, a place to START the conversation - NOT to start AND finish it.
By just answering their question and giving them the price, you’re actually showing that you’re indifferent to them – indifferent to whether or not they purchase from you. And remember – a large percentage of people leave NOT because of price but because of perceived indifference.
Have your salespeople ask them what needs they wanted fulfilled. Ask what features are important to them in a widget or what they’ve seen in the past. Finally – have your salespeople ask for the sale! E.g. so which stereo package would you like to take today? The X model or the Y system?

From the Desk of Nic Clark: What are you REALLY Saying?

Wed, 22 Feb 2012 01:40:00 GMT

How to build a brand that speaks volumes.

The foundation of all successful brands and their subsequent marketing campaigns is a strong, consistent message. But have you ever stopped to think about what your business is REALLY saying every time you make contact with customers or prospects?

Unfortunately, most businesses, before creating marketing materials and deciding upon their own marketing message, go and look at what other businesses in their industry are saying to customers. All this results in, is a glut of ‘same‐same’ marketing and an audience of confused consumers – none of whom can really see much difference between the businesses talking to them, other than variances in price.

While it’s good to keep abreast of what the competition is up to, copying their marketing message (even that of the market leader) is not going to do your brand any favours, nor will it guarantee success. Quite often, the opposite can be the case.

Ideally, you want your marketing to look and sound very different to your competition, so that customers and prospects have a clear idea of how doing business with you will be better for them.

Here are four proven ways to create a message that’s unique to you and designed to get results:

Quit being a copycat

List what other businesses in your industry are saying in their marketing messages and AVOID using these words/phrases yourself. For example, if everyone is telling customers they’ve been in business 20 years, are family owned, offer ‘great service’ and ‘free quotes’ etc. you should avoid bombarding your prospects with more of the same – how on earth will they know how to choose between 30 different businesses all touting the same message, other than to do a price comparison? This is NOT what you want – getting into price wars with your competitors is never going to set you apart as a market leader. Instead, see below on what you SHOULD be saying.

Be an individual

Make a list of what makes you DIFFERENT to your competition and use words/phrases like these instead (you could even put this list up in your staff room/breakout area so that employees are constantly reminded why your business is better). Customers should know straight away from your sales letters, yellow pages advertisements, website, radio ad or print ads why doing business with YOUR company is better. Prove that you’re different.

Know what they want

You have to know what your customers REALLY want, care about and aspire to, if you’re going to be able to create a marketing message that speaks to them in a way that will engage them, inspire them and motivate them to take action. If they care about price, offer a money back guarantee. If they care about reliability, evidence yours with testimonials.

Don’t be a bore

Your brand should have a personality (and that doesn’t necessarily mean ‘off the wall’). For example, rather than being the ‘professionals’, could you instead be ‘the professionals who think outside the square’? The latter brand message certainly has a very different feel and personality to it.

Have fun wherever you can too ‐ customers want to be engaged with the brands they interact with – that’s how you build brand loyalty. While you’re at it, make sure you speak their language – if they’re young hipsters, save the stuffy jargon. If you’re speaking with industry peers, you can afford to use a vocabulary designed for building credibility and trust. Most of the time however, a good guide is to write
marketing messages as if you were speaking to a friend ‐ overt formality kills any chance of connection you might have.

DIY Marketing Message Tip:

In all of your marketing material, you should feature a strong benefit‐rich headline, one that focuses on THE CUSTOMER instead of on your business.

Standing out from the crowd is easier than you might think. You simply need a strong, unique, benefit‐laden marketing message and a plan for implementation that keeps you accountable and is results‐driven.

10XCase Study - 2Pac

Wed, 22 Feb 2012 00:31:00 GMT

Read about how a Warrnambool SME turned his business into a success using the advice of 10X Coaching Club!

Software savvy SMEs

Tue, 21 Feb 2012 23:56:00 GMT

We regularly receive questions from our clients regarding the type of accounting software they should employ in their business to keep on top of all their financial and reporting functions. So whether you're looking to upgrade, or are just starting out, we've compiled a basic guide of what you should be looking for when choosing a software package for your business in 2011.

What is Accounting Software?

Your accounting software can automate the processing, recording, handling, storage, and access of various types of business financial transactions and associated information. In doing so it streamlines your key financial processes, saving you time, improving accuracy and increasing the cost-effectiveness of your in-house finance and accounting operations.

The Basics… Common Accounting Software Features

While the features of the package you choose will depend heavily on your industry, size of business and key requirements, you can expect at least a few companies to provide a solution that specifically meets your needs. However, most basic packages provide support for:

Accounts receivable and debt collection. Track monies owed, payment due dates, and outstanding balances – all of which dramatically impact your cash flow and related activities.
Accounts payable. Manage bills, payments, and monies owed.
General ledger. Manage the primary, centralised log of your key financial activities and information.
Billing and invoicing. Quickly and easily generate comprehensive invoices and account statements for clients.
Purchase orders. Improve the efficiency and accuracy of purchase order creation.
Sales orders. Automates the customer ordering, fulfillment and tracking process.
Reporting. Generate balance sheets, profit and loss statements and other standard financial reports. Many programs have functions allowing you to generate reports to satisfy your own unique information needs.

What to Look for When Choosing an Accounting Software Package

Capacity For Integration – It's critical your finance department has the ability to seamlessly share vital financial information with other key business units. E.g. your software should enable you to directly link to your inventory and supply chain systems so that your stock is maintained at appropriate levels.
Industry-Specific Support - Consulting and other service-intensive industries, have specific challenges related to their finance operations. Businesses with vertically-oriented requirements should consider choosing software that includes applications specifically designed for their industry, or one that is at least used by other companies in a similar situation.
Extra and Advanced Features - Not all accounting software packages support employee expense management, budget management by department, payroll (including timesheet management) etc.
Cost – Weigh up your requirements both now and also seriously consider your future requirements based on the expansion and growth expectations provided for in your business plan. If you are planning to venture into new industries or grow significantly in a relatively short time-frame, your accounting software should be able to keep up with any new or advanced requirements.

The Main Software Players

The Institute of Chartered Accountants recommends 21 different software packages to businesses and provides information on what each package offers and the types of businesses they suit. The two most popular premiere programs for small to medium size businesses in Australia and New Zealand are Quickbooks and MYOB, which both offer advanced accounting software features.

Advanced Accounting Software Benefits:
-   Credit card processing
-   Payroll & Superannuation
-   Backup files saved online
-   Live bank account integration
-   GST & Tax calculations

Let’s not forget that using a professional software program makes it easy to transfer your financial records to your accountant, enabling you and your accountant to focus on bigger picture questions, projections, and higher level reporting – so that you’re able to focus on growing and improving your business, not merely maintaining it!

As your accountants and trusted advisors, we’re always happy to make a personalised software recommendation for your business and individual situation – our details are on the front inside cover, call us anytime for a complimentary consultation.

From the Desk of Nic Clark - Increasing Your Prices: A Scary But Highly Successful Strategy

Thu, 19 Jan 2012 04:04:00 GMT

The truth is, they won’t.

On almost all occasions a price increase can actually increase your sales volume.

For instance, an Australian based company with $9 billion in revenue was having challenges with its profit margins, so they decided to increase their prices. To do that, they categorised each of their 800,000 products as to how well they were differentiated in the market. With products that had a significant point of difference and little competition, they increased their prices significantly. With products that had lots of competition they increase prices just slightly. The result was a $200 million increase in revenue.

Price is determined by perceived value. So if your product or service has a high perceived value you can get away with charging higher prices. Ironically, your price point is actually a contributing factor in the perceived value of your product or service – that is, higher priced products are generally perceived to have a higher quality. Likewise, there must be some point of differentiation between your product/service and that of your competitors in order to justify a higher price. However, it’s important to note that this point of difference need not be just related to your product, for example you may sell a product similar to your competitors but offer amazing service.

The most important thing to remember is that you should raise your prices to match the price that the market is willing to pay for your products/services. Not doing so represents wasted profits and opportunities for transforming your business into something extraordinary.

Here is an example:

A builder decided to make a bold move by advertising to the world that he was ‘the most experienced builder in town’. In his ads he also included the reasons as to why he was. As soon as he did that his business went the through the roof – despite being the highest priced builder in town.
Will raising your prices see you lose some of your existing customers? Yes. Will you also lose some potential sales? Yes, without a doubt. But here’s the good news: you’ll be getting rid of those pesky, time-wasting looky-loos and nuisance ‘D-class customers’. Your overall sales revenue should increase (usually quite significantly), you’ll have more time to spend working with your favourite clients and/or you’ll be attracting ideal, higher-value customers.

10 Steps to Follow before You Roll out a Price Increase:

Know your value proposition – make sure that your price is in direct proportion to perceived value. The more educated your customers are on the value of your product/service, the more they are prepared to pay.
Group your products/services into categories – divide them up into groups relating to the uniqueness of the product, or the value they deliver to the customer.
Talk to your salespeople – they will be able to provide you with valuable feedback on what the market will bear.
Get feedback from your lost prospects and customers – find out why they left. Was it price or the amount of value they received?
Work out your total estimated profit at each price point – this works best by doing a % and $ value increase/decrease across a range of price points, quantities and total revenues.
Identify ways to educate on value – spend time evaluating how well you’re educating your customers on value they are going to receive.
Increase the value you deliver – make sure the price you sell your product/service at matches the value the customer receives.
Test the price increase – see what the reaction is when you test the new price to a small random sample in your database.
Develop a communication plan – communicate your price increase to customers in the right way. Give reasons.
Inform customers – inform your customers if the impending price increase. Position it as a positive for them.

Good luck and don’t forget that 10X Coaching Club members across Australia and New Zealand have consistently been able to roll out price increases in their business – even during challenging economic times! Give us a call on 1300 855 109 today if you’d like some coaching around implementing a pricing review in your business. And remember: you’re probably more scared of a price increase than your customers are!

A lifestyle spring clean

Thu, 19 Jan 2012 04:01:00 GMT

Many SME owners crave a better work/life balance and dream of one day growing their business to the point where they can either scale back their hours, or have someone take over the reins so they can retire completely. For many, this freer lifestyle doesn’t always come to fruition, but for those that seek out professional help and set their mind to it, the pipedream can more easily become a reality.

Here’s the story of one business owner’s journey to a better work/life balance.

Taking the leap and going solo

Phil resigned from his full time IT consulting role to focus on setting up his own business after attending a Boardroom Edge event, hosted by 10X Logan in 2009. In October of the same year, Phil set up a commercial cleaning company - The Clean Academy – in order to help him achieve his dream of a more flexible lifestyle, as his own boss.

Part of Phil’s plan to get his business off to the best possible start included joining 10X Coaching Club, which he saw as a “best practice” necessity for start-up businesses. Phil also saw the program as an investment in his future, as he was confident the tools and mentoring he’d receive would help him build the business smarter and faster – allowing him to achieve his lifestyle goals sooner.

The pay off for thinking big

Through 10X Coaching Club, Phil learnt the importance of marketing to his bottom line and proactively took his cleaning services to the business community by preparing quotes. On one occasion he was asked to quote on cleaning a warehouse from ceiling to floor after the Brisbane dust storm.
The job was by far the biggest Phil had ever been asked to quote on and he was unsure how to quote on it (or even if he wanted the job for that matter). Phil brought this challenge to Coaching Club, to ask for feedback from his fellow club members and 10X Coach Glenis Gassmann. After some discussion, Phil reached the conclusion that yes, he should quote on the job and prepared the quote, for $13,800 inclusive (translating to a 7K profit) which the client subsequently accepted.

An unrivalled support network

Being part of 10X Coaching Club gave Phil the confidence to utilise the concept of ‘pricing a job as if you don’t want it’ – a tactic which paid off both financially and psychologically. Phil found that being part of a team of business owners enabled him to draw on a wider range of experiences, ideas and advice to find a solution. Phil also found that that by having the whole club discuss this challenge, the BIG picture of his business was revealed – specifically that he should quote on bigger jobs with confidence, knowing that he could work out the ‘how’ later.

“Without the ongoing support, guidance and whip cracking from my 10X Coach, Glenis and fellow Coaching Club members, I would have stumbled badly on this quotation,” Phil says. “I would have either just covered expenses or been discarded as a genuine bidder for the job. 10X Coaching Club has given me the tools, knowledge, advice and confidence to achieve the results I have so far,” Phil enthuses.

An investment in building the business

The positive impacts of 10X Coaching Club on The Clean Academy from just one job, equated to $7,000 – a ‘win’ which has already paid for the business’ next 7 month’s of coaching. Even better, Phil has already reached his first goal of hiring a permanent casual team member, who has been onboard since June 2010.

Psychologically, Phil has experienced a mindset shift which means he is more confident dealing with the ‘bigger end of town’ and knows what’s possible for his future. Since acquiring a clear picture of where he’s going, Phil now has the support network and tools he needs to get there.

The dummies guide to being seen as THE expert in your field

Thu, 19 Jan 2012 04:00:00 GMT

It’s not always easy to set yourself apart from the competition. After all, you’re competing with hundreds of other businesses in your community, each vying for the attention (and dollars!) of your customers. You can be assured that your competitors are constantly thinking of ways to attract new customers. So how can your business stand out from the rest? By becoming THE expert in your field – the ‘go-to’ person in your industry – THE business with the reputation and credibility for being the best at what you do! Positioning your business and yourself, the Business Owner, as a leading authority on your product or service is a guaranteed method to build trust and credibility with your prospective clientele. Though it may sound like an impossible and intangible task, it’s easier to achieve than you might think!

Being seen as the expert in your field enables you to generate a significant amount of referral business, and subsequently charge significantly more for your product/services because your prospective clients will actually go out of their way to seek out ‘experts’ to help with their problem, and pay premium prices for the privilege. A client or customer recommended to a business already comes with a certain level of trust and credibility firmed up in their mind, so there is generally less work to do to build that initial trust. You’ve probably experienced this yourself at some point or other when someone came recommended – whether it was an IT specialist, recruitment expert or a top supplier.

What many businesses don’t realise is that you don’t actually need to be ‘the’ pre-eminent expert on a certain topic to be perceived as the expert. There are many qualified people in each industry, but the perceived experts are often those who are just better at getting their voice heard in the public domain. Obviously, you need to be skilled at what you do if you want to promote your expertise, but there are many clever strategies you can use to fast track your way to ‘guru’ status.

1. Write a Book
The instance your name appears on the spine of a book (whether you self-publish or are picked up by a publisher), you’re seen as an authority on a topic. The book doesn’t need to be a mainstream bestseller either, it just needs to be interesting and relevant for your target market or industry.

If you’re thinking, “I don’t have time to write a book!” - don’t worry. You can have a ghostwriter do much of the work for you, and you can secure very affordable ghost writing by posting your project on freelance websites such as Elance (www.elance.com).

2. Use a checklist as a prospecting tool
Use a checklist as part of your next direct mail piece. A checklist gives people questions to consider – questions that people perceive you can answer.

Here’s an example: Early in 1999 when Y2K fever was at its peak, one IT company sent a direct mail piece to small businesses recommending that they have a Y2K analysis performed. Attached to the direct mail piece was a ‘Y2K Risk Analysis’ checklist that people could complete to determine whether their business was at risk. This checklist played a very powerful role in producing huge numbers of responses to that direct mail campaign.

3. Run seminars and workshops or speak at other events
Just as being an author turns you into an expert, so too does being a speaker. The moment you’re on stage in front of an audience, you’re elevated to ‘guru’ status. These events don’t need to be big production affairs. They might be a simple introductory, lead generation-style workshop presented to prospective clients. Or you can seek out industry events by developing a relationship with conference organizers and industry networking functions.

4. Testimonials
Featuring testimonials from clients and from high profile peers is a great way of positioning you as a business development expert. Use testimonials prominently in all your marketing material - the more the better.

5. Send media releases out
Whenever something newsworthy happens in your business or industry, send out a media release to media outlets. The more media coverage you get, the more the public and media will perceive you as an expert and the more new clients you’ll attract.

6. Establish a Knowledge Base and Strategy Guides
Increase the amount of information you provide your clients with. This helps you appear more knowledgeable, which in turn, attracts more business. For instance, 10X clients receive access to 300+ comprehensive Strategy Guides (over 4500 pages of advice, action steps, strategies, checklists and marketing pieces) on how to dramatically increase the profits in their business.

7. Run tele-seminars, record them and sell the products
Tele-seminars are seminars conducted via the telephone and are an easy way to build your expertise and sell your services. There’s a lot less preparation time and cost than there is for live seminars. What’s more, you can run one at a moment’s notice, record it and then develop the recording into a product.

8. Write a column for a business or industry publication
Being a regular columnist for a small magazine is another great way of building credibility. To start with, approach the editors of the publication with an idea for a one-off article. Over time, develop a relationship with the editor and once they’re comfortable with your level of expertise and the value that you deliver in your articles, approach them with an idea for a column.

9. Conduct industry surveys and publish white papers
Another great way to be positioned as an authority is to conduct a survey of the operators and even the customers in your industry. Once you’ve gathered all the research, publish a white paper containing your findings. Then, submit press releases announcing your survey to relevant magazines and media outlets. Media love stories that are backed-up with research and statistics.

In Summary
There are a variety of initiatives you can undertake to position you and your business as an expert. Sure, it takes a little time, but once you’re seen as a ‘guru’ you’ll be on the fast track to enjoying ‘industry leader’ status and the flood of new clients and referrals that comes with it.