Tag Archives: Business

Connecting with global prospects and getting paid

July 23, 2014 10:42 am ,

This is the second of two articles on small businesses going global.

ENTREPRENEURIn the first article, I allowed that it can be exciting for business leaders to imagine a global prospect base of more than seven billion people. But for a small business to imagine an export strategy, it’s at once exciting and intimidating because of the three elemental global business questions, the first of which we focused on last time: Who are my global prospects? Now let’s focuses on the other two: How to connect with them and how to get paid.

The good news is that there are two government agencies standing by to answer both of these questions. Each one provides digital information, human assistance and global networks designed to help a small business maximize its opportunity to create and execute a successful export strategy.

The, “How do I connect with global prospect?” question can be answered by the U.S. Commercial Services, a division of the U.S. Department of Commerce. This should be your first stop for education on finding and converting global prospects into customers.

When you consider all of their resources, the U.S. Commercial Service is a virtual one-stop shop for developing and executing a small business export strategy: a great website (Export.gov); a toll-free number (800-872-872) answered by a real person; over 100 offices around the U.S., plus dozens more around the globe you can walk right into and ask for help; and their book, “A Basic Guide to Exporting,” includes an excellent tutorial and several case studies.

All of that help is free, with the exception of the book and any direct expenses incurred on your behalf.

Export-Import Bank of the United States (ExIm.gov) can answer the “how do I get paid” question on many levels.

Part of the U.S. government, Ex-Im Bank will assist with the financial elements of your export sale. They will working with the banks on both sides of the transaction to coordinate funds transfers, provide loan guarantees, and even pre-delivery working capital for you and post-delivery financing for your customer.

For generations, big firms have owned the franchise on global business. But shifts in technology and demographics are making the global marketplace more compelling and feasible for small businesses.

Contact these two organizations and let them help you develop a global business strategy.

Write this on a rock…The global marketplace – and 7 billion prospects – are waiting for you.

Posted in: Age of the Customer, Entrepreneurship, Online Content , Tagged: , , , , , ,

Identifying your small business global prospects

July 16, 2014 2:35 pm ,

In case you haven’t heard, the seven billionth Earthling was born recently.

For the global marketplace, seven billion prospects are exciting. But for growing American small businesses, 96% of those folks live outside the U.S.

Once, small business growth meant expanding to the next county. But in the 21st century, shifts in technologies and demographics have made expanding outside America’s four-walls increasingly compelling. But it has also produced three elemental global business questions: Who are my prospects, how do I connect with them and how do I get paid? Let’s focus on the “Who” first, with these global stats from National Geographic (January 2011), plus my editorializing.

  • GlobalBusinessNineteen percent of Earthlings are Chinese, 17% are Indian and 4% are American. By 2030, the first two will invert.
  • By gender, males barely edge out females: 1.01 to 1.0. But my demographic experts report wide swings in median age among countries, which must factor in any export strategy.
  • In a historical shift, just over half of Earthlings are now urbanites. Remember, city folk use different stuff than their country cousins.
  • Here are global workplace profiles: 40% of us work in services, 38% in agriculture and 22% in industry. This means different things to different industries, but it means something to all businesses.
  • English is the international language of business, but is the first language of only 5% of global prospects. When doing business outside the U.S., be culturally sensitive and patient with the translation process.
  • Breaking news: 82% of your global prospects are literate. If you can read and write you can improve your life, which explains the growth of the middle class in emerging markets. A growing global middle class means more affluent consumers.
  • Computers are luxuries for most Earthlings. But cell phone usage is exploding across the globe and billions who never owned a PC, or used the Internet, will soon do both with a smart phone. Two words, Benjamin: global mobile.

Even though India and China are much in the news, American small businesses should consider export opportunities in our own hemisphere first, especially where trade agreements are in place, like Canada, Mexico, Panama, Colombia and Chile.

In the next article we’ll address the other two elemental questions: How to connect with global prospects and how to get paid.

Write this on a rock… Consider business growth outside of America’s four walls.

Posted in: Age of the Customer, Business Ownership, Entrepreneurship , Tagged: , , , , , , , , , ,

Converting to a new kind of quality in the Age of the Customer

July 9, 2014 3:59 pm ,

Successful customer service is the process of delivering value to a customer in exchange for payment.

Surely this is the prime directive of any business.

But this process isn’t truly successful unless the relationship can be sustained; and only quality produces sustainability.

“Quality service” is a 20th century term businesses use to declare a commitment to diligent customer support. But customers typically associate it with, and businesses too often tolerate it as, promptly addressing a problem. Here’s what quality service might sounds like:

“We’re sorry that part was the wrong size. But we’re committed to quality service, so one of our trucks will be there in an hour with a new part.”

In most cases, quality service impresses the customer. But while prompt attention is admirable, it’s not optimal because it has a negative impact on sustainability in at least two ways:

QualityDefinition1) The customer was inconvenienced by inaccurate service;

2) fixing an avoidable problem is the worst kind of profit-eating inefficiency.

In the 21st century, successful small business customer service requires converting “quality service” to the quality process.

Executing a quality process, put simply, is serving customers right the first time. Accomplishing a quality process ranges from the very basic – accurate order filling, to the more complex plan of integrating into your operation only those vendors that share your quality process commitment.

The optimal goal of your quality process is sustainability through profitable customer relationships. This is accomplished when customers return to find your profitable business is still there, ready to serve them successfully – again.

Cash is king because the impact of negative cash on a business will take your breath away. And profit is queen only because the manifestation of negative profit takes longer than negative cash, which is the reason why quality service is even tolerated as a business practice.

When you’re ready to stop tolerating profit-eating quality service and convert to the profit-making quality process, here’s a good a place to start: Leslie Kossoff’s book Managing for Quality just out now in the new 21st century edition, in hard-copy and e-formats.

Remember, the quality service you’re so proud of may be admirable, but when delivered in response to something that was avoidable, it assaults profitability, threatens sustainability and, therefore, ultimately could put you out of business.

Write this on a rock… Convert quality service into the more profitable – and sustainable – quality process.

Posted in: Age of the Customer, Management , Tagged: , , , , , , ,

Forge the customer goodwill alloy of “Thank you”

July 3, 2014 11:00 am ,

What would you pay for a small business silver bullet to win the fight with Big Boxes and online competitors?

Before you get overwrought about how you would come up with the cash for something so valuable, here’s good news: It’s free and you already possess it.

There are several versions of this silver bullet, each to be used at an appropriate time and engagement, but here’s the default version and the most important one: “Thank you.” I promise, if your customers never leave behind their hard-earned cash without hearing a heartfelt, “Thank you,” your business would become a competitive force to be reckoned with.

Here’s an expanded version: “Thank you for your business.” Long after this sentiment enters the ears of customers, when they’re considering the next purchase of what you sell, they will remember that you looked them in the eye and lodged these words in their heart: “Thank you for your business.”

Here’s one more, in response to a request or when a customer thanks you first: “It’s my pleasure.” And if you really want to pull off the silver bullet hat trick, say, “Thank you. It’s our pleasure to serve you. We really appreciate your business.”

Photo courtesy of lifecare-edinburgh.org.uk

Photo courtesy of lifecare-edinburgh.org.uk

Saying thank you – and making customers believe it – forges what I call the “Customer Goodwill Alloy.” Just as steel is created when you forge iron with other elements, customer goodwill is created when values, commitment and engagement are forged in the crucible of training, practice and execution, causing your employees to say “Thank you.”

We all know what happens when steel is left exposed and unmaintained: Corrosion causes it to revert to its base elements as rust. But do you know what happens when the “Customer Goodwill Alloy” is left unmaintained and exposed to the elements? It sounds like this, “No problem.” Or, “Here you go.” Or, “Have a good one.” Or even worse – nothing! Not even eye contact!

If you want to compete in The Age of the Customer, you can’t allow your business to revert to customer service rust. More than a means to an end, it must become a way of life to forge and maintain the “Customer Goodwill Alloy” every hour of every day of every year.

If your door is open, if your phone is ringing, if your website is working, customers must know how important they are to you. Otherwise, save yourself a lot of money and anguish and close up your business now. The Big Boxes have beaten you.

Paraphrasing Paul Simon so customers don’t leave you, there must be 50 ways to express your delight in serving a customer instead of “No problem.” Use them! Words matter!

Write this on a rock …“No problem” is a big problem that can be solved by simply saying “Thank you.”

Posted in: Age of the Customer, Customer Care , Tagged: , , , , ,

AUDIO: Are you meeting your customers’ new expectations?

June 27, 2014 3:11 pm ,

It’s the Age of the Customer, and your customers want to know about your business. But it’s not just the business practices they want to know about. They want to see your business from every angle.

Your prospects and customers have new expectations. Jim Blasingame explains that if you’re doing business the way you’ve always done it, you won’t meet your customers’ new expectations and your business will not survive.

Click the image below to start the recording.

OnAir

Posted in: Age of the Customer, Customer Care , Tagged: , , , , , , , ,

The Blasingame Small Business Banking Rule of Thumb

June 17, 2014 10:00 am ,

For many years, I’ve made recommendations to small businesses with regard to their banking relationships called: The Blasingame Small Business Banking Rules-of-Thumb:

Photo courtesy of Notes From A Chair Blog

Photo courtesy of Notes From A Chair Blog

1st Blasingame Small Business Banking Rule-of-Thumb
A small business should have at least two banking relationships. If you’re turned down for a loan at one bank, you have another place to go where the person already knows about you and your business. One primary reason for this rule is because if only one banker knows you and your story, when he or she gets fired, promoted or otherwise leaves the bank, Murphy’s Law will dictate that it will happen when you most need a favorable banker.

2nd Blasingame Small Business Banking Rule-of-Thumb
At least one of the banking relationships should be with an independent community bank – that means locally owned and managed – and preferably your lead bank. I’m not picking on big banks, it’s just that most small businesses need to be given a little extra consideration for their character and past performance, which is typically not as forthcoming in a large bank.

Loan decisions made by large banks have two elements that may not give a small business this extra consideration:

1) The actual decision is made by a loan committee in another city, by people who probably don’t know the business owners

2) They rely heavily on what is called “credit scoring,” which is a computer program – each bank has its own proprietary model – that receives quantifiable information and produces a numerical “score”. If this week the bank has decided only scores of 18 or more are accepted, a loan request under 18 will likely be rejected. I’ve never heard of a credit scoring system that includes a variable for the applicant’s character.

Over the years, my Rules-of-Thumb have proven to be valuable to many small businesses. But since 2008, with all of the problems associated with big banks, those who have followed my advice were much less likely to find themselves without access to credit. This was because every independent community banker I spoke had emphatically said they had never stopped lending to their small business customers.

Recently, I talked with two presidents of independent community banks about working with small businesses and the health of the banking industry. First, Mike Menzies, who is not only the president of the Easton Bank and Trustin Easton Maryland, but he’s also the new Chairman of the Independent Community Bankers Association (ICBA). Mike’s also a long-time member of my Brain Trust. Secondly, there is Charles Antonucci, President of Park Avenue Bank in mid-town Manhattan.

They agreed with my advice.

Posted in: Age of the Customer, Banking, Entrepreneurship , Tagged: , , , , , , , , , ,

Serving customers online is not an option, it’s imperative

June 12, 2014 10:00 am ,

In this new Age of the Customer, accessibility to a business through online content is nonnegotiable.

Four years ago, we asked this question about e-commerce: How much of your small business’ annual revenue comes from online sales?

Online Shopping·  Five percent said all revenue came from e-commerce.

·  Fourteen percent said more than half of their sales came from the Internet.

·  A little more than fifty percent said e-commerce represented less than 50% of total sales.

·  Twenty-five percent said they had no online sales at all.

E-commerce has been around for a big chunk of the commercial Internet age, which began in 1995 when unencumbered access to the Internet was fully allowed. In terms of historical marketplace practices, e-commerce is just a baby.  So I’m actually quite pleased with the mix of responses we received as it indicates 75% of small businesses are generating some e-commerce revenue.

But over the next five years, there will be significant increased pressure to generate online sales.

According to the research firm Forrester, online sales will reach $248.7 billion in the next five years, accounting for 8 percent of total U.S. retail sales by 2014. But the next statistic may be more important (read: ominous) for small businesses.

Forrester also predicts that by 2014, over half of all retail sales will be influenced by online product and company research before customers make a purchase.  The reason this stat is so significant is because of another piece of research that produced this astonishing number: Half of small businesses DO NOT have a website.

Regardless of size or industry, no business can expect to be successful in the future without a web presence. Even if you don’t sell online, you MUST be available online so prospects can find you the way people are looking today. Here are two words that make having a website even more of an imperative: local search.

Local search is increasingly replacing the phone book or dialing 411. Even when customers don’t expect a business to have e-commerce capability, like a restaurant or dry cleaners, they do expect to be able to find you online, with product offerings, directions and a clickable phone number.

If you don’t have a website, get one; today you can actually get a simple one for free. And unless you sell nuclear products or Stinger missiles, please, find a way to offer e-commerce to your customers; It’s not free, but it’s no longer cost-prohibitive.

Serving customers online is not an option, it’s an imperative.

Posted in: Age of the Customer, Moment of Relevance, Online Content , Tagged: , , , , , , ,

The customer is now in control of your business — get over it!

June 11, 2014 10:00 am ,

The business world is changing. The Age of the Seller is succumbing to the Age of the Customer, and in this new Age, control of the relationship between Seller and Customer has shifted to the customer as well.

This paradigm shift is largely caused by online platforms that are:

1) increasing the access customers have to information about a Seller and its products

2) allowing customers to express and share what they have learned about and experienced with a business.

Photo courtesy of ThoughtBlender

Photo courtesy of ThoughtBlender

To put two fine points on the first element of the shift, in the new Age:

First, Customers have access to virtually all the information they need before you know they’re interested, and prospects are similarly informed before you even know they exist. Such access to information is changing – or disrupting – the way you market to and connect with customers, as well as how you train sales people. Plus it demonstrates why your greatest danger in the Age of the Customer isn’t being uncompetitive, it’s becoming irrelevant.

Second, the new kid on the block corresponds to a centuries-old marketplace maxim, “If you make customers happy they will tell someone; if you make them unhappy they will tell 10 people,” which describes the ancient practice of word-of-mouth. The theory behind the 1:10 ratio is that all businesses, regardless of size, are motivated to perform, or risk a marketplace indictment by the judge and jury of word-of-mouth.

In the new Age, online platforms have caused word-of-mouth to transmogrify into a powerful dynamic called “user generated content,” aka UGC. This is when customers post online their experiences, questions, praise or condemnation about a seller’s products, services, and general behavior in the marketplace. In the vernacular, it’s word-of-mouth on steroids.

Indeed, if the word-of-mouth maxim were coined today it would sound like this: “Customers may post online their opinion – positive or otherwise – about your business, making it available potentially to millions.” To paraphrase Mark Twain, comparing word-of-mouth to UGC is like comparing a lightning bug to lightning.

In the new Age you have to do two new things: 1) anticipate that customers are already well informed; 2) track and respond to UGC about your business. And how well you do these two will influence whether the new customer control becomes a sales lever, or a disruptor that makes you irrelevant.

It’s the Age of the Customer — get over it.

Posted in: Age of the Customer, Customer Care , Tagged: , , , , , ,

Allow customers to see your authentic side through writing

June 10, 2014 10:00 am ,

Adam Smith, the father of modern economics and author of The Wealth of Nations (1776), identified writing as one of the three most important inventions of mankind – the other two being money and economic tables.

Photo courtesy of Small Biz Trends

Photo courtesy of Small Biz Trends

More than two centuries later, the Internet has powered the written word to levels unimagined only a generation ago, let alone during Smith’s era.  It is the driving force behind a handy new-media maxim, “Content is King.”

In an era when content is king, if you want to connect with customers competitively and stay connected, you have to produce more written words than ever before. But not just any words – authentic words.

After all, today we’re consumers of many kinds of online content. From streaming audio and video to multi-media formats on iTunes and YouTube. In the midst of all it, the most popular content — hence the Kingly content — still remains most popular in its graphic form, like what Smith would have used.

Since 1999 – long before blogs and social media – two things I’ve encouraged small business owners to do is:

  1. develop better writing skills
  2. publish more of their own words online that communicate to and connect with customers.

Since 2010,  prospects and customers want to read about the stuff you sell before they meet you. But they want more than marketing messaging; they want authentic, straight-from-the-horse’s-mouth information that delivers three things that are increasingly a big deal to customers:

1. the voice,

2. the vision, and

3. the values of the human beings behind the stuff, as unartful and unscripted as they may be.

So don’t worry if you’re not a professional wordsmith. When you need fancy words for strategic marketing messaging, online or otherwise, hire a pro.

But you must become comfortable with conveying your vision and values online, in your own words – the voice – about a variety of issues from explaining how to use a product you sell to a local cause you care about to your philosophy on serving customers. And it’s just fine if some of these authentic words also come from your employees who customers will get to know.

In the Age of the Customer®, now armed with as much information as the businesses they patronize, customers expect to be treated more like insiders. And the good news is that no one makes this connection as effectively and authentically as a small business. Congratulations.

Let customers read about your authentic side with your voice, vision, and values.

Posted in: Age of the Customer, Customer Care, Online Content, Storytelling , Tagged: , , , , , , , ,

In the New Age the Force is with the Customer

June 5, 2014 2:54 pm ,

—Earth, Stardate 8507 (The Age of the Seller)

Once upon a time, in a galaxy that today must seem far, far away, sellers controlled all information about their products, services and innovations. Consequently, customers learned what they needed to know from salespeople, who traveled far and wide dispensing information to, and collecting sales from, grateful and beholden customers.

If one had observed such a meeting, the customer would have nodded his head in wonderment as the salesperson revealed the virtual magic that was his product.  And in this land, the Force — control and availability of information — was with the seller.

TheForce—Earth, Stardate 10912 (The Age of the Customer)

On present-day planet Earth things haven’t changed. Customers still buy from sellers that still provide product information. But observing a customer and salesperson today you will see the former explaining how much she knows about the business’s products, while the salesperson nods his head in wonderment. In this universe the salesperson is grateful and beholden if the customer will just contacts him before deciding from whom she will buy.

In The Age of the Customer, the Force—access to lots of information—is with the customer. It began with the remote control, video recorders, TiVo, DVR, Internet, on-demand everything, social media, and more recently, mobile computing. All of the platforms that make up what we now call social media have become the Light Saber of consumers and business customers in the new Age.

Armed with an abundance of online content, commenting platforms, and social media communities, customers not only have access to the information they need to make a better decision, but also co-own brand messages in the sub-space chatter about any given seller or product as it is being evaluated in the online dimension. Alas, too many small businesses are still operating a Stardate 8507 strategy in Stardate 10912. The predominant response by one of these sellers is frustration that they have diminishing control over customer relationships, and therefore their future.

Scotty won’t be able to beam you up if you don’t learn that the only way to end this frustration and assume at least co-ownership of the Force is to embrace online community-building and join the conversations that are being conducted about your business, products, service and industry.

The good news is that this “joining” is not only relatively easy, but also can be done with minimal direct cost.  If you don’t know how, ask a 25-year-old customer.

Write this on a rock …

In Stardate 10912, the Force is with the customer.

Posted in: Age of the Customer, Customer Care, Future Thinking , Tagged: , , , , , , ,