The Small Business Cafe

Be forewarned! The BizBlogger is on a mission today!
  

BizBlogger has preached for months about the ‘sins’ of poor customer service and extolling, largely through example, the ‘virtues’ of GREAT customer service.
  

As one would naturally expect, it’s absolutely impossible to give exceptional customer service IF YOU DON’T KNOW WHO YOUR CUSTOMERS ARE AND WHAT THEY VALUE!!
  

Oooops! Pardon me. The BizBlogger confesses to being a little passionate about this particular topic. So, let’s get to know your customers a little better and I bet that in the process, we ‘bust’ more than a few preconceived notions about them and how they think.
  

Myth #1 – Customers Are Only Interested In The Best Possible Price!

Boy! If you believe THAT whopper, the BizBlogger has some fine property for you to buy – conveniently located in the highly developable ‘ HAY SWAMP !’
  

Would it surprise you to know that just 9% of customers value price above all else? NINE PERCENT!! So why in the Hell (Oooops! Told you I was passionate about this!) do 99% of business owners set [low] prices designed to appeal to just a very small portion of the market; to the total exclusion of the other 91% that don’t put price above everything? Sure! They’ll take advantage of your low prices – they’re not stupid after all – but you could have gotten their business WITHOUT the extra discount.
  

Guess what? Fully 68% of customers decide from which business to purchase based upon how well they are treated by the people associated with the business! Being polite is not sufficient! One doesn’t have to be rude to do nothing to enhance customers’ experiences at your business. Polite indifference is sufficient to make most customers decide to go elsewhere and make their purchases.
  

Myth #2 – Customers Who Shop Online Aren’t Interested In Coming Into My Store!

Newsflash! ‘Shopping Online’ is NOT the same as ‘Buying Online’! However, if you insist on equating it to something, consider ‘Online Shopping’ as being synonymous with the act of ‘Window Shopping!’
  

Nearly 70% of customers who ‘shop online’ are simply doing research and actually PREFER to buy ‘bricks and mortar!’ Just as significant, fully 25% of Internet searches begin locally.
  

Don’t have a webpage? Guess what? You’re missing out not just on sales, but LOCAL sales to boot! Hmmmmm…maybe that new-fangled Internet thingy is worth looking into after all!
  

Myth #3 – Men Buy ‘Men Stuff’ & Women Buy ‘Women Stuff’!

Maybe you’re half right. In fact, something like 80% of household purchasing decisions are made by the female head and not the male as shopping lore would have us believe! This includes those sacred bastions of maleness: vehicles, houses, home renovations, and electronics. Here, the ‘X’ chromosome also dominates, not the ‘Y’.
  

Home Depot has spent millions redesigning its stores to be more ‘female-friendly’. They have also invested heavily in expanded product lines (ie. power tools) designed to be easier for women to use. Furthermore, they have paired this strategy with new home-repair classes geared specifically to the handy-WOMAN! Coincidentally (okay, maybe not, otherwise the BizBlogger wouldn’t have a point!), up until the recent housing industry troubles in the U.S. , Home Depot was breaking all kinds of company profit records!
  

Myth #4 – When A Customer Asks About Price, They Are Objecting!

As business owners, we are often almost apologetic that we have to CHARGE for our products and services.

I can’t tell you the number of times the BizBlogger has innocently inquired as to the price of something only to be given an on-the-spot discount! Why is this a problem? Because the BizBlogger was only enquiring in order to figure out how much money to pull out of his wallet! Of course, not even BizBlogger will look a gift-horse in the mouth – I generally don’t refuse such an unexpected windfall.
  

However, like many customers inquiring about price, the BizBlogger had already committed to the purchase. The additional discount was totally unnecessary and served only to decrease the profitability of the business. In the majority of instances when customers ask about price, they are actually picturing themselves completing the transaction. This leads to two main conclusions: 1) Try to avoid introducing price into your conversations with customers – let them do it as it’s a major buying signal; and 2) When customers start asking about price, it’s time to CLOSE!
  

The reality is that most business owners UNDERCHARGE for their products and services. Discounting to close the sale, especially when customers really don’t expect it, only compounds this problem.
  

Myth #5 – Women Watch Soaps & Men Watch Sports!

In truth, more women watch sports than watch soaps! Surprised? If so, you might want to look at your target market demographics and more importantly, make sure that your marketing activities are effectively reaching them. Given this example, if you were advertising on TV (ie. to reach women in general) during soaps rather than certain sporting events, your marketing would be less effective.
   

The point of this illustration is simple. Often we as small business owners don’t take the time to properly research our target market and instead, depend more upon stereotypes, personal bias (ie. knowledge as a consumer yourself), and ancient history (ie. the way it was 2 decades ago or more). In some cases, we get lucky. Too often however, we miss the boat as it leaves the dock and our marketing and sales activities are far less effective than they otherwise could be.

In Closing…
    

Do your homework. Get to know your customers, learn what they value and figure out what makes them tick. Then you can build your business around EXCEEDING their expectations through EXCEPTIONAL (ie. tailored) customer service (notice that the differences between yours and competing products and services becomes almost moot at this point) and at the end of the day, your customers are happy (ie. actually, thrilled because they don’t expect such treatment) and reward you with their loyalty. And loyalty, as they say, is worth 10 times the value of a single purchase. Sounds like a win-win proposition to the BizBlogger if there ever was one.
  

Have a great weekend! The BizBlogger and Shopping Princess will be together again in the Windy City . Could a ‘Princess’ posting be in the works? I wonder…!
  

Hi Everyone!
 

My apologies for the lengthy time between postings. The BizBlogger (curiously, along with the Princess and Duchess) has returned to school and frankly, time is at a premium these days. In case you’re interested, I’ll be talking about our collective studies in a later post and I guarantee that you’ll be entertained!
  

However, even though I’m far from done my studies, I couldn’t keep the loyal BizBlogger fan club waiting too much longer so for your reading pleasure, let me present:
  

“Washrooms Are For Customers Only”
 
BizBlogger Aside: Tim Horton’s recent and very public troubles (ie. one of their managers hollering at a customer and an employee being fired for giving away a Timbit) have inspired this particular post.
 

I’ve often seen signs like this at places I like to call, ‘stops along the way’ (ie. gas stations, restaurants and etc.) – or even a variation such as “Seating Is For Customers Only” in some kind of communal or public area (ie. a mall setting or flea market). Frankly, I’ve never understood the rationale behind it. Oh! Don’t get me wrong. I GET the explanations for them (more about these in a minute), but in the context of running a business focussed on customer service, it makes absolutely no sense whatsoever.
  

Part of the reason that business people post signs like these is a mis-placed belief that only people who BUY something from them are customers AND beneficial to the business. Well, let’s debunk that myth right here and right now!
  

First of all, I think we can all agree that to be successful in business, your business must be welcoming to the public. So what of the person walking by your storefront who has been shopping all day and merely needs a place to stop and sit down for a moment? What if they’re not really looking to buy lunch (ie. let’s use restaurants as the example) but just rest their aching bones for a bit? What if she reads that sign and decides to trudge on and not come in? What have you really lost? Hint: As is turns out, potentially PLENTY!
  

Let’s say there is no sign creating any kind of a barrier. Follow along carefully because this happens in the blink of an eye:
  

1.   The woman from our example comes in and sits at an unused table to rest;
  

2.   She’s had lunch and it’s getting near the supper hour so she’s not planning to eat;
  

3.   She’s approached with an offer of a menu, which she politely declines with a “Nothing for me thanks. I’m just here to rest for a minute.” You can almost see the look of disapproval from the server. If it was Tim Hortons, she’d be toast! (Bad BizBlogger! Bad!) So maybe the glare of the server convinces the woman to buy a cup of coffee or tea. However, for the novice business person, that’s certainly not worth nearly enough to take down my sign and allow all those undesirable ‘freeloaders’ to come in and use my facilities. I mean, there’ll be a STAMPEDE of freeloaders (you can almost see the look of fear at the prospect!). By the way, I wonder how enjoyable that cup of coffee is fro the woman given that it was almost coerced. I also believe that it’s very likely the woman will feel compelled to finish her cup and go as quickly as possible – fully rested or not;
  

4.   One cup of coffee. To the novice business operator not very much and certainly unlikely to influence the success factor one way or another. Or is it? Tim Hortons makes MILLIONS from one cup (do the math on the lifetime value of a Tim Hortons customer) and for the advanced entrepreneur, there’s much at stake. This woman has been shopping and running around doing errands all day. She’s visibly tired and worn out (these things are easy to notice – if you’re paying attention). Maybe her ‘rest’ starts with a complimentary beverage served directly by the owner. How’s that for VIP treatment? FREE?!? Are you kidding me? Yes, some of you are no doubt asking, ‘BizBlogger have you lost your $#@%& MIND?’ On most days, the answer is an unequivocal ‘Yes’. But not here, not today;
 

5.   See, that free cup of coffee to a worn out woman at or near the supper hour with cooking smells waffling in from the kitchen is now thinking how truly tired she is and, ‘Wouldn’t it be great not to have to make supper when I get home? Then of course, if I make it, there’ll be the dishes to do because hubby will sneak out after supper to do GAWD knows what in that workshop of his! The kids will run upstairs to do homework, and by ‘homework’ I mean TEXT message with their friends…’
  

The next sound coming from that restaurant is likely to be from a cash register ringing up a takeout order to feed a family of 5 with the request for, ‘a few paper plates please.’
  

And that’s the crux of being in business. Not every person who comes in will buy something from you on that visit. Perhaps not even ever. But if you welcome them to your store, engage them in friendly discussion, treat them with respect no matter how they look; or if they ask a ‘silly’ question; or whether they’re there to ‘simply browse’. If you make their day just a little better for having ‘visited’ you, and they leave just a little happier, guess what? That’s called GOODWILL and goodwill leads to word of mouth (even if nothing is purchased!) which leads to more people visiting your business which leads to … MORE! It’s called COMPOUND GOODWILL and it’s a wonderfully effective tool for business success – whether something is bought or not. Except that by putting up that sign, we aren’t engaging in the spreading of much cheer or goodwill are we?
  

Isn’t trying to keep people OUT the antithesis of what being in business is all about? After all, our stated GOAL is to bring people IN! Careful what you wish for – it may just happen! It might help to know that it is estimated that upwards of about two thirds of consumer purchases are spontaneously completed without being particularly planned (ie. planning does occur before but the decision is NOT planned for a given time). Perhaps something to keep in mind when we are barring customers from our premises by virtue of some mis-guided policy.
  

Here are a few other examples of signs that I’ve seen and what they really tell the customer:
  

1. “Pre-pay your gas purchases” really means ‘You’re dishonest and we know it!’

2. “No personal cheques” really means ‘You’re out to screw us and we know it!’

3. “No loitering – 15 minute maximum” really means ‘Give us your money and just GO!’

4. “Please ring for service” really means ‘We’ll serve you at OUR convenience!’

5. “$5:00 minimum purchase for debit” really means ‘Your purchase isn’t worth much!”

6. “Leave knapsacks at the front” really means ‘You’re a thief! Pick up the clue phone!’

7. “Gone for lunch, back at 2:00pm” really means ‘My time is more valuable than yours!’
  

Get the picture? Oh! And while we’re on the subject, there’s another one – “CLOSED!” Here’s a thought, change the context to apologetic (sincere!) and make sure to direct the customer to your website on the same sign. What’s that you say? No website? Tsk tsk tsk!
  

In closing, I’ll leave you with a short and true story (taken from the Wall Street Journal a few years back) to illustrate why it’s important to never pre-judge anyone, their motives, and especially, their potential to help your business as a customer or advocate (there’s that pesky word-of-mouth that we all say will make our business grow but which we do precious little to cultivate):
  

A man dressed rather shabbily walked into a bank and asked the teller to validate his parking ticket.
 
She looked at the unshaven face and grubby clothes and asked, “Did you do business in the bank today?”
 
“No I didn’t,” was the reply. I had to run into the drug store next door and they don’t validate parking and I didn’t bring any change with me and I’d hoped you’d validate my ticket since I have an account here.”
 
“I’m sorry sir,” the teller replied, “but if you didn’t do business in the bank today I can’t validate your parking ticket.”
 
“Very well then, let’s do some business,” the man said. “I’d like to close my account.”
 
Startled by the request, the teller told him that wouldn’t be necessary.
 
“No, I want my ticket validated and this is the business I want to do,” insisted the man.
 
As the teller processed his request, her face turned ashen white as the man’s account information appeared on the screen. After calling over the manager and explaining the situation, the manager informed the man that the bank would gladly validate his parking.
 
“Close the account!” the man insisted.
 
In short order, the man left the bank with a cheque for $1.26 million and a validated parking ticket. He walked across the street and opened a new account in another bank.
 

‘Nuff said!
  

In the last Blog, the BizBlogger promised another example of how the lack of customer follow-up can cost a business some serious revenue and by extension, profit!
 
Well, here it is and it also has to do with the Christmas season at HBDC – the only difference is that this time, it’s about the actual Christmas party.
 

Every year HBDC hosts a Christmas party for its 19 or so employees. For your information, there are really only 4 HBDC operational employees. However, the complete list includes people on HBDC payroll at the 5 employment centres within Huron as well as several other ‘payrolls of convenience’. In these instances, HBDC provides an organizational structure for community groups that have no formal facility for payroll. While HBDC gets reimbursed in full for those 15 positions from the groups, they are on the record as HBDC employees and so, are happily invited to our Christmas party. However, I digress and I’m sorry, it won’t happen again! Also, the BizBlogger also has prime swamp land if anyone’s interested! 
 
In the context above, HBDC has hosted Christmas parties that when all of these employees are counted, plus their spouses, and invitations are sent to our associates and partners at the Huron Business Centre (ie. Small Business Enterprise Centre), the guest list has ranged from 35 to 55! In the past, we’ve held a potluck event but given the size of this group, there really is only one option – go to an outside venue! And HBDC has done that for the last 4 years or so.
 
Depending on the location, and we’re not talking a McDonald’s Christmas Playroom party, the price per person has been around $20, give or take. That’s about $1,000 of easy revenue for a couple hours of work. Plus, while HBDC pays for the meal, it does not pay for alcoholic drinks. So there is even greater revenue potential! For the record, HBDC is a responsible host and taxi rides home are reimbursed.
 
By any standard, this is a darn good revenue-generating opportunity wouldn’t you say? So why then, in all the years we’ve been taking our Christmas party ‘outside’, has the BizBlogger not once has a telephone call AFTER the party (ie. maybe sometime in the new year, but not so early that there hasn’t been enough time for feedback to trickle in), inquiring as to how everything was; the food, the service; the venue; the décor; were there any problems, no matter how small, that could have made it better? I’d even go so far as to say that the call should also include a request to book NEXT year’s Christmas party. The BizBlogger is not likely to agree to it, but it’s worth asking because depending upon staff reviews and frankly, just how swamped the BizBlogger is, I might actually bite – especially if the memory of organizing the party and the incredible amount of work involved to make it happen is still very fresh in my mind! Ah. Anything for my beloved staff!
 

However, even if I say ‘No’, that doesn’t mean it’s over. As the restaurant owner, why not call again in October or November to find out what Christmas party plans have been made and tell me how you can help the BizBlogger out by taking one extra worry off my plate! What is the downside? The worst I will say is ‘No’. But think about that for a minute. Why would I say ‘No’? Basically, there are only 2 reasons. First the food sucked and there’s no way you’re going to get us back. By the way, this is a good thing to know if you’re a restaurant owner and there’s a quality control issue! Second, and more likely, people don’t want to do the same thing every year and may want to experience something different. Well, this is an opportunity for you to shine! Tell me why it’ll be different! Plan a Hawaiian Christmas theme for us; tell me the menu is enhanced; ever had a Jamaican Christmas party? In short, change it up a bit, convince me that it’ll be a new and very different experience in some way, and I may just agree to book it. If I don’t, no harm, no foul and what’s more, you can try again for NEXT year’s Christmas party (as opposed to the one that’s coming up THIS year)! You weren’t going anywhere were you? Then why not? Just because the BizBlogger has said ‘No’ once, doesn’t mean I’ll say it indefinitely.
 

That’s it! Simple follow-up can really mean much improved revenue and profits. Frankly it’s silly to ignore your existing customers and their potential to give you more business because they are, generally speaking, easier to sell to than a new and potential customer.
 

See you next time – and if you’re really lucky, maybe you can swing an invite to HBDC’s annual Christmas party – I hear it’s a real BLAST! 

After a short hiatus, the BizBlogger is back and raring to go for 2008!
  

For me, it seems like Christmas was months ago just because January has been so exceptionally busy. In reality of course, it’s been just a few short weeks – and a few weeks is more than enough time to follow-up with your customers.
  

What do I mean? Well, let’s lay some foundation first.
  

The Christmas season is among both the most anticipated, and the most feared seasons among small business retailers. Anticipated because it can turn a lacklustre year of sales into an earth-shattering year. Conversely, it is feared because if shoppers are slow to spend, it can cause even a good year to end in the toilet!
  

In short, Christmas is critical to business success. No question.
  

Why then, with so much on the line, do enterprising business owners routinely cost themselves and their businesses, the most simplest of sales and revenue?
 

I’ll give you just two examples, even though (sadly, I’m afraid) I have quite a few more.
  

Example #1 – The Case For Closing ASAP

At the beginning of November, the BizBlogger was already thinking in terms of Christmas (by the way, just like many consumers but that’s the subject of another blog!). The issue was what to get the volunteers sitting on HBDC’s Board of Directors as a Christmas present (ie. to be given out at the December meeting) and where do I find the time to figure this one out.
  

As luck would have it, a local gift store sent out a targetted post-card mailing at that time as a reminder that Christmas was coming with the subtle message of, ‘if the reader is thinking of gifts, well, they should think of us first’. Cool! Great strategy! Like most of you, the BizBlogger’s time seems to be at a premium and anything that helps him get things done more quickly and moving onto the next task will jump right up to the head of the pile. Of course, this is early November but if I can put a checkmark on my ‘To Do’ list beside ‘Christmas Gifts For The Board’, you got me! I called the business to let them know I needed 15 gifts. In truth, I was under-stating a bit – the 15 items for the Board of Directors were a done deal but I was also thinking in terms of other gifts, such as the 19 or so I needed for staff.
  

I indicated that I was planning to spend $25 per gift (by the way, when a customer starts talking price, they’ve generally already committed to the sale, you just have to close it) and that I needed them delivered by December 20^th. I also held out the carrot that more might be ordered down the road (ie. for the staff) and that the $25 was a starting (another hint that I could easily be convinced to spend more). The response I got was confusing: “Okay. I’ll call you in the first week of December to finalize the sale.”
  

Saaaaaaaaaaaaay what???
  

WARNING! CRITICAL SALES TIP ABOUT TO BE GIVEN!
  

When a customer has basically told you that you’ve got an order, FINALIZE IT IMMEDIATELY!! CLOSE THE SALE !! RUN OVER WITH A PURCHASE ORDER FOR HIM/HER TO SIGN!! DO SOMETHING TO SEAL THE DEAL!! But for the love of all that is sacred and holy in the world of small business and customer service, do NOT tell them to wait and put them on effective (indefinite?) hold!
  

Of course, the reason why I was calling this store in the first place just went out the window since I wasn’t able to check any item off my ‘To Do’ list. Already, the business failed to meet my needs and expectations (that incidentally, were created by their own postcard).
  

Lots of stuff on the ‘To Do’ list however, so I didn’t dwell and proceeded to wait for the anticipated telephone call…and wait, and wait, and wait some more. The call never came! By the end of the first week of December, that persistent little ‘To Do’ item reappeared on my list and I needed to take immediate action. Well, I had planned to take the initiative and call the business back but before I could, an interesting little situation developed. One of my other suppliers dropped by to deliver a small Christmas gift – I’d ordered a lot from them in 2007. Even though I wasn’t in the office to receive it, it had the desired ‘reminder’ effect. I generally use this business for various HBDC marketing items that I hand out in various workshops. However, when I saw the gift (it was a small box of chocolates with the business’ logo on them) it reminded me that the products they sold for marketing purposes, are bonafide gifts! Bingo!  Even better, this company makes its entire catalogue available online (and is one of the few Huron businesses that does that – also the subject of a future Blog!) so with one email, I completed an order with this company for Christmas gifts; but not just for the Board of Directors, I also covered staff, associates and the spouses of staff (in anticipation of our Christmas party).
  

The BizBlogger’s original guaranteed sale was $375 – nothing to sneeze at and certainly worth following up. The actual amount of gift items I ended up getting was valued at over $2,500! It was simple, what started out as a basic order for the Board of Directors morphed into something much larger as Christmas party plans started formulating (and the time I had to do these things continued to compress). Now, I’m not suggesting that the original business would have received the entire $2,500 order, but they would have received nearly $1,000 of it; and if they had helped me solve my problems with their suggestions (ie. time constraints, the BizBlogger’s complete cluelessness with respect to what to get people associated with HBDC for Christmas, helped me to check off a few ‘To Do’ items), they may have been successful in getting me thinking in an entirely different directions.
  

Costly? Yes. And an expense that doesn’t show up on the income statement because it’s an opportunity cost – a missed sale that is very difficult for a business owner to gauge – but real nonetheless.
  

Hmmmm….maybe that’s enough to digest for one BizBlog. The second example will be posted soon! It’ll give you dear reader, something to look forward to over the next few days!

Last week’s post told the tale of a rather unspectacular experience the BizBlogger had while trying out a newly opened restaurant for the first time. And while my day certainly wasn’t ruined by a long shot, going for breakfast at that diner didn’t add anything to it either.
 
The next day, after plugging away for a few hours on his, ahem…vacation, the BizBlogger decided that another break was due. In fact, it was overdue. I had been working all day, it was nearing 5 p.m., and the crackers that I had been snacking on for sustenance had proved to be less than filling, and somewhat unsatisfying. In short, I needed another break from my vacation so instead of scrounging for food in the BizBlogger pantry, BB opted to once again go out for a bite to eat.
 
I’m a little embarrassed to say that since I was famished, the first thought in the BB’s mind was SMORGASBORD! Now, there are several places the BB routinely goes to when a buffet is in order and interestingly, I opted NOT for one of my favourites, but instead decided on a different venue where nonetheless, BizBlogger had eaten several times before.
 
In the restaurant industry specifically, and business in general, customer loyalty is NEVER defined as an absolute. Customers routinely define themselves as loyal to a specific business (or brand) even though they may occasionally choose competing varieties. Said in a different way, while we want our customers to return to us each and every time, for reasons of variety, spice, adventure, and to simply break from routine, our customers may periodically choose an alternate business to satisfy their needs. That’s the bad news. The good news is that while we can’t eliminate this kind of ‘leakage’ entirely, we do have the power to minimize it.
 
In this light, our practical goal as business owners is not to develop strategies that will result in our customers returning to us each and every time. Rather, it is to develop our business (the customer’s destination) into an experience that on those infrequent (hopefully!) occasions where our customers go elsewhere, they gain a better appreciation for the high level of customer service that we provide! Even more to the point, they subsequently, return to our fold, running at high speed and screaming, less prone to leaving for another ‘adventure’ anytime soon! And while we’re picturing this pleasing scenario, feel free to imagine it with the customers’ tails firmly tucked between their legs while begging for our forgiveness! Hey! There should be a little SATISFACTION for us, right?
 
In any case, the BizBlogger decided on a restaurant where the food was average and while he’d never had a bad previous experience, BB cannot report a particularly great one either. Perhaps it was just for variety’s sake – so that the regular places didn’t get old and thus, become less of an event. Or maybe it was simply that the BizBlogger was tired and cranky. Perhaps subconsciously, BB didn’t want to go to one of the favourites because there was no way (he reasoned) that they could do anything but fail him on this night, thus detracting from future enjoyment. Ah yes! The ‘I’m going to a competitor today, but it’s for your own good in the long run’ sentiment! Customers are a quirky bunch and none more so than the BizBlogger!
 
So with my trusty James Patterson novel in hand, I braved the wilderness known as the restaurant industry and once more, I went in search of a satisfying eating experience.
 
Things started out a little worse than expected though. On previous forays into this particular restaurant, BB did not remember having to wait long after being seated before the server approached for the order. However, on this night, BB waited for what seemed like a very unreasonable length of time before someone finally acknowledged his presence. Steeeeeerike 1. After giving my order I made my way to the food tables and proceeded to fill my plate with various items. I normally have my food favourites, but on this night, I was in the mood for sampling.
 
Once settled into my groove (euphemism for ‘feeding-frenzy’), I mostly forgot about the initial wait. I had my book, I had decent food, I was engaging in some BB-quality-alone-time, and slowly but surely, my fist-of-death (FYI – Dilbert comic strip reference) mood lifted. The capper was when the server, unasked, brought me a fresh refill for my pop along with the bill and having observed that I was immersed in my paperback, simply stated that ‘there was no hurry to leave. Just sit and read and pay this on your way out’.
 
Perhaps it was because I had been chased from the diner the day before, or maybe it was the simple fact the she recognized I was there for more than a meal. Either way, I left after reading a few more chapters feeling great and I caught myself thinking ‘that was the best food I’d ever tasted there’.
 
Now, the BizBlogger is not gullible enough to believe that the recipes had changed since the last time I had been there (ie. better tasting food) and frankly, this supper experience started out tenuously with a longer-than-it-should-have-been wait and no glass of water (Steeeeeerike 2)!
 
Nevertheless, the server read her BizBlogging customer like a book. I was there to chill out, rejuvenate, be alone with my thoughts but in the comfort of a crowd (Yikes! Customers can drive you right ‘round the bend at times!), and finally, to eat. There were minimal intrusions for example, to find out how the meal tasted. I know, you’re probably thinking that maybe the server just ignored me and it was an accident that I got what I wanted. However, my pop was refilled while I was at the food table and I observed the server in action at other tables, being more interactive than she had been with me. And based upon her final comment to me as she presented the bill, I suspect that the BB’s server just new how to read her customers very well.
 
There are some lessons here for all business owners:
 
1. Customers are loyal only unto themselves. If you are unable to provide a unique, different and exciting experience each time they visit you, you will increase the likelihood that they will visit competing businesses. The more of an event it is each time they visit, the less likely they’ll feel that they are missing something (and ultimately try to seek it out by visiting the competition);
 
2. Learning to read your customers is critical so pay attention to them. How will you approach your customers if you don’t know, or take the time to understand, their mood of the moment? By the way, this skill is easy to develop. You can practice it at home! Not only will you become a better entrepreneur, but a better parent and spouse to boot! Yup! Dr. BizBlogger goes head-to-head with Dr. Phil! If you already use these skills at home, it’s even easier since all you need to do is apply them with your customers;
 
3. Your most basic goal as a business owner is to make someone’s life better in some small way every time they engage you. And they engage you by the simple act of coming into your business. It shouldn’t matter whether they decide to buy something from you or not. I’m sure Dr. Phil would agree that life really can be that simple.
 
4. Finally, ‘you’re never down for the count’ and as long as you ‘haven’t struck out’, you can always ‘turn the boat around’ and ‘win the race’ in the end by docking at the Port of Repeat Customers . Zoinks! So many mixed metaphors! I’m calling the BizBlogger ‘offside’!

BB took a few days off this past weekend and was not in the office last Friday, Monday or Tuesday. Not exactly a vacation since I was working on various projects from home, but certainly a ‘less intensive work effort’ nonetheless. I know!! Many of you are questioning the cuckoo-crazy scheme whereby the BizBlogger actually gets away with doing LESS work.
 
Often, when I’m on these little semi-vacations (actually, the real vacation is for my staff while I’m away from the office!), I occasionally need to leave the ‘BB-Cave’ since evidence of my various projects is strewn over the tops of every table, counter and desk. This ‘free-for-all’ approach represents a somewhat interesting contrast to my office persona since when I’m knee-deep in it at the office, I still maintain a relatively organised workspace.
 
In any case, since paper, folders and documents abound, stress is pretty much visible everywhere (for once, the Shopping Princess is NOT a root cause!), and throughout these semi-vacations I tend to eat out almost exclusively – if only to get away from the drudgery and the chaos for a short spell.
 

On Friday morning, I had been working for a few hours on some report that should have been filed weeks ago, and decided to take a break from the effort to get a late breakfast. Actually, it was almost noon but I hadn’t eaten anything yet and as far as the BizBlogger is concerned, breakfast can be enjoyed at any time of the day.
  

On one of my outings a few months back, I had noticed a new diner was about to open, interestingly, on the site of a former restaurant. I had made a mental note that sometime, when I thought of it, I would stop by and experience what they had to offer.
  

For the record, I had seen no advertisements, flyers, announcements or similar notices that the restaurant was now open. There was only a faint curiosity from the one or two occasions when I drove by and observed the flurry of pre-opening renovation activity. Perhaps that’s why it took me several months to actually make a trek there. 
  

So here it is, Friday morning, I’m hungry for breakfast, and I needed to escape the dismal reminder of my working vacation. Somewhere in the dark recess of my BizBlogging brain, past the Looney Tunes cartoons from yesterday, and the underwear-clad models from the Eatons’ catalogues of my youth, I remembered that I wished to try this restaurant. Fortunate for the restaurant since sometimes the cartoons tend to distract me!
  

I should reveal at this point, that the very first time I saw the name of the restaurant-to-be, I was confused. I doubt that this is the best first-impression for a brand new business. To protect the innocent (ME!), I won’t reveal the name of this diner but I will say that the name had as much meaning to me as if the name had been the ‘Ocean-Land Diner’, ‘Galactic-Universe Diner’ or ‘Small-Town Diner’. None of these names gives any information about what the customer can expect once they step inside. And just from that perspective, these names fail. For the record, the BizBlogger really cannot fathom a better viewpoint FOR choosing a working business name. It simply must convey a unique and positive message that reinforces the pending experience as much as possible.
  

The exterior of the restaurant was neither impressive nor unimpressive and not particularly unique or attention-grabbing. But it was okay. Inside the restaurant, I was struck with the feeling that the décor was an attempt to create a level of sophistication or chic-ness that was consistent with the restaurant’s name. Unfortunately, it fell a bit short and generally gave the impression of a work-in-progress.
  

Interestingly, while my review seems to suggest that I was disappointed with my adventure thus far, and you could be forgiven for thinking that, the reality is that I was experiencing a rising level of anticipation from the sheer quirkiness of the décor montage. And while this feeling may have been a bit pensive, it still represented a solid building-block for a positive dining experience.
  

The first real disappointment occurred when the waiter brought me my menu – and it was twofold. First, a BizBlogger idiom: You are guaranteed to give me a good dining experience (unless the food is completely inedible), and virtually commit me to a return visit, plus help your staff receive an above-average tip (my usual is 20%), if on their first or second visit to my table, I am brought a glass of ice-water. I view this simple courtesy as an absolute necessity for any restaurant that professes to care about customer service.
  

The second part of the disappointment was menu itself. A photocopied menu with rips, tears, food-stains, crossed-out dishes and scribbled prices is quite simply, a bad impression. I realise that professionally bound menus are expensive. They’re meant to be and must be considered an INVESTMENT in marketing, presentation, or first impressions. Meant to enhance your dining experience – not detract from it.
  

I continued on with my order and guess what? The diner more than redeemed itself. I have ordered steak and eggs numerous times, but I cannot remember ever having been served one that tasted soooooo darn good! The food was quite simply, delicious!! Score one for the diner and frankly, it could have been the winner. Should have been….!
  

As this breakfast excursion was about relaxation and forgetting, just for a little while, the stress of my working vacation, I took along a fictional novel to read. With murder, kidnapping, injustice, corrupt police and politicians – it’s just the type of light reading to accompany a meal!
  

Anyway, I ate and read, read and ate, thoroughly enjoying myself and most importantly, relaxing. Then the bill came. Now the BizBlogger is one of those growing group of customers that carries virtually no cash, preferring to pay mostly by debit card. Normally, when I walk into a business and the debit machine isn’t obvious, especially at a restaurant or gas station where returning items is not the easiest of options, I’ll ask whether that method of payment is available. In this case, I decided not to ask as the restaurant had an ATM machine in its lobby – in working order. I know because I checked before I sat down. Of course, with its $3.00 service charge, this was plan ‘D’ and came just after washing dishes for the meal, and slightly ahead of selling one of my kidneys.
  

You can probably guess what happened. The restaurant did not have debit or credit card capability, the ATM went down just minutes before I was about to withdraw funds, and without even a quarter on me to call the Shopping Princess, I was in quite the pickle. After leaving my car keys with the restaurant, I trudged down the street to the nearest ATM machine. Fortunately, it was not too far and about 20 minutes later, I returned to pay the bill. Since I was just about finished the chapter before the panic about having no way to pay for my meal began, I sat down in my booth to finish the 2 remaining pages and then be on my way.
  

BizBlogger had read no more than 3 sentences before the waiter returned to ask me to leave!! Yup! You read that right! It seems that the lunch crowd was starting to build and his boss had asked him to show me the door. By the way, there were still lots of empty booths and tables available. It’s my habit to watch for this kind of thing once I’ve finished eating so that people are not waiting to sit down, and the business does not lose customers. Unfortunately, the message I received was loud and clear. I was a dear and valued customer until the bill was paid! After that, I was little more than a vagabond that had to be shooed away.
  

Guess where the Biz-Blogger WON’T be eating breakfast anytime soon?????
  

To be successful in the restaurant game, it is much less about the food than most people think. Put another way, customers expect you NOT to serve slop! It is the other things that help ensure people will return. What was the BizBlogger looking for that fateful Friday morning? A nice, place to get some food, read for pleasure, and forget about my working vacation and the mountains of stress-causing reports I was writing/reviewing. In other words, someplace to de-stress and rejuvenate.
  

Unfortunately, along with their excellent food, this diner also served up a healthy dose of in-house designer STRESS for dessert! Very rarely, in any of our businesses, is the customer experience built exclusively about the product or service we are selling. Indeed, in most cases, a significant portion is about HOW we sell it! Don’t forget, the customer may be asking to buy a drill, but what we are really selling, is a way to make the hole!

The other day the BizBlogger was having a really bad round of golf. As I was driving home fuming, I reflected on the fact that this particular scorecard would NOT soon end up on my refrigerator in proud proclamation of how great the BizGolfer is! 

While I was deciding whether to recycle this scorecard or light it on fire, I glanced over at it again to see if the score had miraculously changed. It hadn’t. But while I was looking at the card in the vain hope that my 9-shot first hole score was in fact a birdie, I noticed that the card was covered in advertisements of various local businesses. 

That got me about thinking this type of advertising. What do I mean by ‘type’? Basically, golf card advertisements, ice rink billboards, restaurant place-mat business card ads, the back of ticket stubs and cash register receipts, the front of shopping carts, Cable TV Guide Ads, and a whole category of small, display-type ‘co-operative’ ads. Sometimes, they even appear in newspapers (ie. business card sized directory ads). Call them piggy-back ads, directory ads, or simply, co-operative ads, they are identifiable because they involve partnerships among multiple enterprises and are characterized by one company selling products to its customers and recognizing that its clientele may overlap with other, usually non-competing, businesses. Of course, really, that IS the business model of newspapers. While the concepts discussed below apply completely, newspaper advertising will be examined in a future post.

Using this advertising technique to promote your business can be a very worthwhile endeavour. However, based upon personal observations, I have concluded that many business owners advertise in them rather indiscriminately because they are a cheap way to get your name out.

Let’s look at cost. Absolutely! Many entrepreneurs look at this adverting as a cost-effective way to promote business. But is it really cost-effective if you get little or no response from it? Answer: not so much. No matter how inexpensive the medium is, it’s still costly if there is no return on it as measured by customers beating a path to your door. Flush your cash down a toilet and many business owners could achieve similar results.

Even better! Send this cash directly to the BizBlogger (Um, I’d prefer it pre-toilet flush though!) and I’ll put it to excellent use. You still won’t get more clients but at least you will sleep well at night knowing that you are helping the BizBlogger support the Shopping Princess’ over-flowing closets!

How about simply ‘getting your name out?’ Isn’t that worth something? You might remember we’ve touched on this topic before, albeit in a slightly different context. 

Well actually, it isn’t. Lots of business people spend untold hours attending functions and meetings just to get their name out. Yet, I’ve observed many of these ritualistic networking activities and it astounds me how often the conversation is NOT about anyone’s business – the belief being that ‘my presence and the handing out a few business cards makes it a successful and worthwhile event.’ 

Unless you are talking to people about what your business does, specifically in response to questions that you have asked about their needs, you are wasting your time! That includes walking up to someone, handing them a business card and then beginning a conversation about the Blue Jays’ chances of winning the World Series in this millennium. Pretty dismal by the way! 

Yes. It’s true. People do get business by getting their name out.

However, I can buy 999 ring tosses at the milk bottle carnival game and eventually get three in a row (Maybe not! The BizBlogger is not all that co-ordinated judging by his golf score) to win the big prize. And while I’ll be tickled purple that I was able to win that $25 stuffed toy for the BizBlogger’s niece, at a Loonie for 3 rings, winning that toy cost me $111!!

Most often, my clients report that engaging in these types of activities yield them few results. From my perspective, it’s simply because they’re not using them in a strategic way to connect with their customers and potential customers.

Still don’t believe me? Well, let’s say that I’m the publisher of Urban Men’s Magazine. [BizBlogger Note: UMM is a Canadian equivalent of Maxim Magazine although it is published less frequently.] Let’s say that to get ‘my name out there’, I send a free issue offer to all of the members of all the Curves franchises throughout Canada . All anyone has to do is return the postage-paid card I distributed and they will have a free issue sent to them at no charge whatsoever. 

How effective will this strategy be? With over 700 clubs across the country and an average membership base of about 200, that’s over 140,000 potential new customers that are being introduced to my magazine. Obviously, I’m getting my magazine’s name out there! And in SPADES to boot! 

Ahhhh. But here’s the rub me blog-reading Mateys! 

CURVES is a gym franchise that caters exclusively to WOMEN! I’m selling subscriptions for a men’s magazine! No doubt I will get numerous requests for a free subscription simply out of curiosity. It can even be safely assumed that out of these requests, I will get some subscriptions as boyfriends and husbands see the magazine lying around the home and become interested enough to sign up. A smaller percentage of orders will come from women who buy the subscription FOR their significant other. Are you listening Shopping Princess? 

At the end of the day, I will have spent many dollars on this promotion, lots of time, and in return, I will have a few more sales and a bit more revenue. According to the majority of my clients, seldom does the new revenue exceed the added costs by anything significant. So what happens? Well, they routinely abandon these kinds of co-operative ads and generally stop attending (or attend far fewer) networking opportunities. In my opinion, not the best solution.

Just looking at the few examples I’ve listed above and the magazine, let’s see how we could improve our results with just a little strategic thinking.

Instead of sending out the complimentary issue offer to the membership at CURVES, why not investigate the possibility of inserting the pre-paid postcard into the Frosh kits of various colleges and universities throughout the Province and/or Country? There would likely be the expectation of ‘quid pro quo’ and you might be expected to contribute something (ie. $s) to the student unions, but wouldn’t it be worth it if you received hundreds or thousands of subscription orders? This is your target market and students have barrels of money at the start of their school year. Timing can be everything and offering an extra issue or similar incentive to encourage pre-paying an annual, or even bi-annual, subscription would be an excellent strategy. Hell! Give them an appropriate inducement to pre-pay a subscription for the entire 3, 4 or 5 years of post-secondary education and now we’re really cooking with gas! That’s cost-effectiveness!

What about those ads on golf score cards and ice rinks? Frankly, I believe most businesses participate in some of these as ways to give back to the community. But why not at least try to get something out of it for your business.

For example, I’m at the rink watching my favourite pairs-dance skate team and if I happen to be in the market for a car, a dealership billboard-style ad on the rink’s boards might help reinforce other marketing that that dealership has done. But what is really on my mind right then and there is buying a be-jewelled outfit so that I can begin my training as a figure skater just as soon as possible. Ergo, I desperately need to know where to get one! Right next to it, an advertisement for a pizza slice would be an excellent idea! I’m famished and I’ll need energy to train. Ooops! Now I need to know where the closest gym is in order to ‘maintain’ the BizBlogger’s lithe physique and become the greatest dance ice-skater the world has ever seen – including the Russians!

Okay. Maybe I got a little carried away there. In the BizBlogger’s case, it would require a bit more than maintenance of ‘my lithe physique.’ I would actually need to GET ONE in the first place!

Golf scorecards that advertise sporting goods are an obvious benefit. Farm drainage services? Maybe not. However, a farm drainage service that sponsors or advertises at a golf tournament for farmers with representatives on hand? Yup! In other words, it’s all about context. If you are interested in advertising your business at a golf course and your target market is farmers, then make sure first, that farmers make up a significant part of the membership. Then go nuts! Advertise on scorecards, pay for signs at the tee-boxes, have something about your business in the golf cart itself. Balls! Tees ! Caps! Whoooo Wheeee!!! The possibilities are limitless.

The same can be said for virtually any product or service from hair-styling to luxury automobiles. It’s all about targetting and definitely not about choosing what is cheapest.

Remember though, whether at the rink or the golf course or the grocery store, it’s not as if the customer actively sought you out. They are primarily engaged in grocery shopping, playing a round of golf and so on. In order to ensure that your promotion is effective, use techniques such as: bring this scorecard in for…; mention this ad and receive…; act before September 25^th and …; and, etc. Using this kind of technique makes these promotional activities less passive and as a result, far more effective.

In terms of networking at events, it’s much the same thing. Except that you are there with your message and unique selling proposition (Google this term).  Of course, talking about oneself and one’s business at any event requires confidence in yourself and your business, an in depth knowledge of your product, and above all else, finely-tuned listening skills. There will be more on the topic of networking in a later post.

The other day I came up with a great idea to help businesses make lots of money!

It’s so simple, you’ll wonder why you never thought of it before and what’s more, it can add THOUSANDS of dollars to your bottom line!

Ready? Charge admission to your business! That’s it! It’s like a licence from the Royal Canadian Mint to print money!

What? You don’t think this’ll work? Why not? How can it not work when so many businesses are already doing it, albeit by charging a de facto exit fee when customers pay for purchases? I’m just opening it up to even greater revenue possibilities since not every person who enters a small business winds up buying something. Sometimes they just browse! 

Don’t worry folks. The BizBlogger has not been imbibing in his favourite spirits today (maybe later!) nor taken complete leave of his senses. I am merely reflecting upon something that happened to me earlier this week. By the way, this post is truly late and I appreciate everyone’s indulgence.  J 

Carrying on with my story, I had stopped at a small convenience store to pick up a couple things on my way home the other night (just so you know, I did NOT win on my scratch tickets). My intent was to pick up a bottle of pop and some popcorn for a little snack later on that night. Thirty-five dollars later I had my popcorn, lottery tickets, a birthday card for my sister and a gift to go along with it (if you guessed it was a gift of several lottery scratch tickets, you were right!) 

I spent about $30 dollars more than I intended and was nonetheless, quite pleased! I was about to win a gazillion dollars; I just released myself from the guilt of not sending a card to my sister on her birthday 2 weeks ago; I had pop and popcorn to go with the horror movie waiting for me at home – right beside the blanket that I would use to hide under as I watched it; throw in one Cadbury Toffee & Almonds chocolate bar, a quick call to the Shopping Princess, and I was set for the night!

As I approached the counter, trepidation set in as I saw a small sign by the debit card machine (my usual method of payment) on which was scrawled, “While we appreciate your business and the purchases that you have made, we are nonetheless going to charge you another fee of 25¢ for the great inconvenience of accepting payment from you for the products that you have so kindly bought in our store. Furthermore, we believe that you should be grateful that we have so honoured you with this requirement and we anticipate your return to our humble store in the very near future. Thank you for your patronage.”  

Okay, the sign didn’t ‘quite’ say it exactly that way but that’s how it seemed. I also know that many businesses put up these signs and while most of them temper it with a minimum purchase qualification (ie. you can avoid the fee if you purchase more than $5 or $10 worth of goods), it still doesn’t change the big picture. That is, these businesses are charging customers a fee to pay for their purchases. In my mind, that’s just not all that different from charging admission!

Oh sure! I know that debit card services cost money. But so too does electricity and gas. Perhaps we should consider an ‘electrical’ surcharge for everyone who enters our business. I mean, they require a comfortable climate don’t they? And light to see by? Maybe we could simply rent flashlights? I can hear the cash registers ringing now!

This issue is part of a larger one regarding payment and payment choices for our customers. 

As business owners, we can get it right all the way to the transaction stage and then blow it there! How critical is the payment part of your customer service? Well, consider the following information uncovered by a Decima Research study done on behalf of Moneris Solutions (ie. the debit card people):

1.      60% of consumers prefer to pay for purchases electronically (ie. debit or credit cards);

2.      For purchases totalling over $100, this percentage rises to 84%;

3.      About ⅓ of all customers report that they have abandoned a purchase because their preferred method of payment wasn’t accepted.

Pretty serious stuff, wouldn’t you say? Getting it wrong could cost you big! 

No one recognizes the precariousness of this situation more than Tim Hortons. For many years, this restaurant chain did not accept electronic payment for its products. The oft-stated reason was simple: quick service. In the view of Tim Hortons, they received far more benefit by providing fast and speedy service rather than allowing customers to pay in any manner they chose (ie. thus slowing down the process of getting that morning cup of coffee). It is pure marketing – where sometimes there are trade-offs. 

Certainly, Tim Hortons lost customers because they didn’t allow electronic payment at all, but in their view, this was offset by the ability to attract even more customers who were primarily influenced by quick service. 

Oh, but as that great folk singer Bob Dylan so eloquently opined some time ago, ‘the times, they are a-changing!’ 

It’s now 2007 and Tim Hortons is experimenting with plastic! Yup! In a number of locations, they will now accept credit cards as payment. It’s not hard to figure out why. The popularity and preference of electronic forms of payment options among consumers has finally forced the hand of this Canadian icon. I suspect it won’t be long before all Tim Hortons accept all forms of electronic payment from their customers. There is a huge risk though. In the same Decima/Moneris study, fully 66% of consumers reported that they had not completed a purchase because the store or line was too crowded and slow.

One thing I had always given Tim Hortons credit for: they knew how to keep lines moving – which I suspect, helped to avoid or at least minimize, abandoned purchases. By accepting electronic forms of payment, I wonder if Tim Hortons has fully considered the implications of this action on those long lines that frequently form at most of its restaurants. Will you as a consumer, be as inclined to stop for your caffeine fix while on your way to work, if you know that it’ll now be a 10 or 15 minute wait rather than the usual 5? If you’re like me, I have no time to spare in the mornings so the answer would be an emphatic ‘No!’ 

Well, as it turned out, I didn’t win on the lottery tickets that I purchased at the convenience store and I am now being tempted to scratch the ones that I got for my sister – since I haven’t yet mailed her card. I’m resisting though. The popcorn was good, but it’s gone now and the chocolate bar lasted until I put the car into gear. 

So what am I left with? A memory of that 25¢ surcharge that I was assessed while trying to pay for those products. Consumer behaviour is a great, wonderful and complex monster! Had my popcorn been 25¢ more to offset the cost of the debit card service, I would have paid without batting an eyelash! But that 25¢ galls me. I know, it’s only 25¢ and it’s nothing compared to the 30 extra dollars I spent in the first place, but I also know that I won’t be returning to that store any time soon. 

Consumers prefer to pay electronically. The costs to allow them to do so are part of the overhead, just like your utilities. From a marketing perspective, you must build these costs into your pricing structure or risk alienating your most important customers – the ones who actually bought something! To do otherwise creates the impression that they are being nickeled, dimed and surcharged up the wazoo! Only banks, cable and phone companies, and the Canada Revenue Agency can get away with THAT!

Have a great Labour Day long weekend.

The other day I was driving along enjoying the summer weather and wondering why I wasn’t out golfing. As I was about to drive by a rather nondescript but isolated building structure, I noted that a couple of businesses had set up operations there. The first business was an antique store. Unfortunately, antiques generally don’t hold a lot of interest for me, so I moved on rather quickly to the next business.

Here, after reading the name, my interest was piqued but not for the right reasons. The name of the business clearly indicated that it was some type of furniture store and by extension, likely included other items of a home décor nature. This second part regarding home décor is a critical conclusion I reached and one that I’m not sure was warranted but was based upon my experiences with other furniture stores.

Interestingly, these are the type of stores where the BizBlogger routinely finds himself browsing aimlessly. I actually do enjoy looking at furnishings even though I’m not really in the market for anything specifically. So why didn’t I go in? Well, at first blush, you might conclude that since it was a gorgeous day and golfing was already on my mind, I decided to defer furniture browsing until the next rainy day. However, 15 minutes? 20 minutes? Even a 30 minute delay would not have caused me to choose one over the other (shopping never wins out over sports!)

Remember, I had concluded that it was more than just a furniture store and specifically, that it included home décor items as well. If I had determined it only carried furniture, I probably would have carried on without a second thought since I’m not in the market for new pieces. However, I am always on the look-out for new home décor items or, as I like to call them, knick-knacks! Whether it’s to hang on a wall or display on a table, stand or shelf, I keep my eyes open for new and cool things that I can use to decorate my home and office in unique and fun ways. Some people take bubble baths, I browse through home décor shops for knick-knacks.

So why didn’t I stop? Especially since I had the time – at least in theory.

Simply stated, it was the name of the business, “Rural Roots – Urban Furnishings”. I have no idea what it means!? What does furniture designed for an urbanite and committed to its rural roots look like? I can’t fathom and frankly, it hurt my head to think about it too much!

Was I part of the target market or was I not? Did they carry unique things? Undoubtedly, (I mean, rural-urban is pretty unique I think) but would I have the stones to buy anything THAT unique? Would I be able to find something for either home or the office? A big unknown. In other words, I couldn’t figure out what the business stood for, what it sold, and was even considering the real possibility that there would be nothing of interest for me. And that was it. While there was a chance that the store might have some products that might appeal to me, there was a very real possibility that I would simply end up wasting my time. And time, is one of the most important and precious commodities that consumers have.

Perhaps if the business had a billboard in its parking lot, or a portable sign, or banners with messages that clarified its offerings, I might have taken a chance. Consider as an example, a banner with the following phrase, “SEE OUR EXTENSIVE SELECTION OF NUDE STATUES AND NUDE PAINTINGS – THOUSANDS ON DISPLAY.” Yup! Hard to ignore that!

In other words, if one has chosen a business name that is less than ideal from a ‘clarity’ standpoint, that short-coming can be overcome through additional marketing effort and activity. Of course, there is a cost to that but there is a much higher cost in terms of lower sales from not making the marketing investment.

Perhaps the best-known example of a company embarking on this course of ‘corrective’ action is Canadian Tire. How many tens of millions of dollars do you think Canadian Tire spent in the 70s and 80s to convince us that Canadian Tire was ‘more than just tires?’

That’s the good news! If you have chosen a less-than-perfect name for your business, you can always market your way out of that problem. It might not be easy, but it is possible. The downside of course is that it costs more per customer because first you have to define your name as something of interest to the consumer, and then you can market your products and services. Of course, by this point, they may no longer be paying attention!

To illustrate this point, consider our example, ‘Rural Roots, Urban Furnishings.’ Even if they had put up banners, signs and billboards with pictures and messages designed to educate me about their knick-knacks and encourage me to stop, there is the possibility that with all the ‘marketing noise’ dotting the landscape of our streets and highways, plus driving by at 100km/h while talking to the Shopping Princess on my cell phone, and rocking out to AC/DC’s ‘Highway To Hell’ on my car stereo, I may simply miss these follow-up messages. Then, I quite simply, make my decision to stop or not stop based upon the name of the business – which like any business’ exterior name and sign, is designed to grab my attention first.

Choosing a business name is a critical and important task. Most people choose their business name and then develop the business plan or strategy. Nothing could be more backwards! Picking a name should be a marketing decision, not an emotional one. The name should convey information to your target markets – always. 

It might be tempting to use an acronym of the first initial from each of your three children as the name for your business. However, while it might be a great tribute and testament to them, and one that they will no doubt appreciate, it will likely mean little to your potential customers.

As there is danger in being too cryptic with your business name, there is equal danger in being too similar to other business’ names or, in using a catch-phrase that has become too common-place, such as ‘family restaurant’. In the following real examples, how would you distinguish between each eatery?

• Smitty’s Family Restaurant
• Richie’s Family Restaurant
• George’s Family Restaurant
• Southside Family Restaurant
• Adelaide Centre Family Restaurant
• Falafellini Family Restaurant
• Riverdale Family Restaurant

By the way, a couple of the names above do in fact, give some information that, depending upon the intended target market, may slide the pendulum ever-so-slightly in their favour. Do you know what it is? Email me at bizblogger@smallbusinesshuron.ca with your thoughts.

However, for the most part, in each of the above examples, the decision would probably come to the toss of a coin? That’s a good thing, right? I mean, after all, isn’t that how we want our business’ future decided? Through the flip of a coin? Heads you succeed, tails you shut the door!

I sincerely hope not!! 

For more information about choosing a business name, check out these sources:

http://www.cbsc.ic.gc.ca/servlet/ContentServer?rendermode=preview&pagename=CBSC_ON%2Fdisplay&lang=en&cid=1085667968770&c=GuideFactSheet 

http://www.canadaone.com/ezine/mar00/business_name.html 

http://sbinfocanada.about.com/od/startup/a/createbizname.htm 

In closing, while I was looking up family restaurants in the Yellow Pages, I came across a few business names that I thought were really quite excellent in conveying information about who their target markets were, and what distinguished them from the competition:

Ring-A-Wing – chicken wings for pick-up and delivery. Little else needs to be said;

Boxed Lunch – I don’t know anything about this business but the name suggests that they are giving you the gift of time while minimizing stress and hassle on an everyday item – preparing your lunch for work;

Cozy Café – Depending upon other marketing activities engaged by this business, I think this name is a great starting point and has wide appeal for numerous target markets and occasions;

The Honest Lawyer – A contradiction of perception? Just odd enough to invoke curiosity and create an expectation of a fun place to eat (humour sells!);

Micheal’s On The Thames – The use of ‘Michael’ and the image of eating while over-looking a peaceful river suggests that this would be the right place to take that special person in your life;

Country Hearth Family Restaurant – Combined with a comprehensive marketing strategy and communications plan, this name conjures up very pleasant images and nostalgia for days when we were much younger. It does however, tend to automatically pigeon-hole your target market (slightly older, empty-nesters, etc.), even as it takes a common phrase and turns it into something that helps sets this business apart from the pack;

Hooters (!!) – Too many images! Of course, this name has not-so-subtle connotations, that’s why it works, and that’s why it’s a great business name!