The Art of Database Management Part III: Reporting and Managing Information

The second part of Bill Gates' famous quote from Business at the Speed of Thought* deals with the subject of reporting and managing the information you've gathered. The unfortunate reality is that many people have databases full of useful information, but they simply don't use the information effectively. Many people think of a database as an electronic Rolodex®, when it is really so much more than that. A database is a living, breathing, proactive platform that can generate predictable results and keep bringing in new business for you. The only way to turn your data into useful information is through reporting. The more you know about your customers, the more you will be able to market to their relevant needs. In Part II of this series (Gathering Information), you were provided with a list of questions to ask your client. Let's look at the question of "What are your hobbies?" and see how we could use that information to create a better relationship with our clients. Wouldn't it be terrific if you had notes on all of your clients, and knew if they were fans of the Los Angeles Dodgers, Tampa Bay Buccaneers, or San Antonio Spurs? If you knew that information and could run a report listing all the people who fall into those categories, you could send those groups of people a congratulatory email whenever their team wins big, and connect with them on their level. If you knew the timeline up front when a client stated they were expecting an increase or decrease in pay, or any expected change in their financial situation, you could run reports on that information and proactively be ready to service them. Wouldn't this constitute terrific service? Don't fall prey to the never-ending cycle of gathering information over and over again and doing nothing with it. Remember, stagnant data does nothing to help you build your business. You need to be able to compile intelligent reports and use them effectively. I like to use drop-down menus in my database management software because, for reporting purposes, it is extremely important that the data you input is consistent. If you list some of your clients as "Bucks Fans," some of them as "Buccaneers Fans," and the rest as "Tampa Bay Fans," then your statistics would not be correct if you ran a report on how many "Buccaneers Fans" you had in your database. But, if you use a drop-down menu that allows you to select one option that is consistent (e.g., "Tampa Bay Buccaneers Fan") then you will have consistent results as you run your reports. This is called normalizing your database, and it solves a lot of these problems. We'll wrap up this discussion next time with The Art of Database Management Part IV: Meeting Customer Relevancy.

The Art of Database Management Part II: Gathering Information

Most of us are sales people when you get right down to it. Our job is to sell our services - and ourselves - as we strive to add more clients to our existing book of business. The unfortunate fact is that most of us are in such a hurry to sell our services that, in the process, we forget to do the most important thing relative to sales. Remember the quote from Bill Gates? The most important thing we can do is gather as much information as possible and understand what our customers need. From there, we can construct a presentation that has a high probability of giving them exactly what they want and hitting the bull's eye. We've all heard of The Golden Rule, "Do unto others as you would have them do unto you." I prefer to consider The Platinum Rule™* which states, "Do unto others the way they would want you to do unto them." The only way to accomplish this is by asking intelligent questions up front when speaking to clients and making a better effort to understand them. Here are some examples of questions you should be asking clients at your first meeting: What are your hobbies? Do you have a clearly defined investment strategy? Would you consider your investment strategy to be conservative, moderate, or aggressive? How old do you want to be when you are financially independent and completely debt free? Do you currently have a college fund set up for your children? What is most important to you about the relationship you are seeking with someone in my profession? What is your preferred form of communication during this process? If you had honest answers to all of the questions listed above, on every one of your clients, wouldn't you stand a better chance of being able to provide them with what they need, thereby ensuring they will be clients for life? Wouldn't they also refer more of their family, friends, and co-workers to you? Stay tuned for The Art of Database Management Part III: Reporting and Managing Information * The Platinum Rule™ is a registered trademark of Dr. Tony Alessandra.

The Future of Your Business Hinges On It

The following comes from a marketing coach I admire, Tim Braheem.

I’m often asked the question, “If there were just one thing that I should be doing for my business, what would you suggest?”  The answer is simple, dial in your customer service platform to outrageous levels.
Let me make it simple and direct, it’s a zero sum game we are talking about.  Every person that you ever do business with is either a referrer and repeat customer, or they are not.
You have one chance to blow them away and it’s when you work with them that first time.  If you do, they will result in numerous additional transactions in the future and if you don’t, you will have just cut off a huge stream of income.
Think about a time when you have been blown away by really great service.  Maybe it was a waiter who made you feel special and tended to your special request, or a hotel who made sure that everything was just right for your stay.  Did you go back?  Did you refer them to anyone by sharing your experience with your friends and family?
Now, lets look at the inverse.  Think of a time when you were greatly disappointed in the service you were getting.  What did you do next?  Did you refer them to someone you knew?  Maybe an enemy, but certainly no one you cared about I bet.  I wouldn’t be surprised if you actually went out of your way to dissuade those that you knew from ever working with that company again, by telling your horror story, creating the opposite effect.
By now, you may be asking “What about those in the middle, the service platforms that just get by, just do an adequate job, failing to turn heads but not doing anything to offend me?”  I’ll respond with a question of my own, “If you’re not memorable, then how do you expect to be remembered? “
Here are some suggestions on how to be memorable and to make sure that everyone you do business with, is a fan and not a foe:

1.   Intentionally under-promise and then over deliver:  One of the biggest mistakes I see made is a false promise for “World Class Service” followed by something that resembles second class.  It takes confidence and integrity to undersell yourself to set up the WOW experience, but when you do, it's like going to the movies and being blown away by a small budget independent film that no one knew about.  What’s the first thing you do?  You go tell everyone.

2.   Focus on the Little Things:  It’s the little things that no one expects that make all the difference and often don’t cost you any money.  Put together a professional looking beverage menu in your office and stock your company refrigerator with more than just water and soda.  When your client comes in, have your front desk person surprise them with a touch of class.  I will never forget the night that I ordered a movie at a hotel and was asked by the front desk if they could deliver some fresh popped popcorn to my room!  I’ve been back there four times since and am still talking about it twelve years later.  It’s the San Ysidro Ranch by the way!

3.   Deliver Bad News Early – One sure way to lose a client for life is to treat them like they are stupid.  Too often I see service people run for the hills when its time to share bad news with their client.  They miss on the opportunity to show integrity and to make a bad situation good.  Honesty is the best policy here.  Simply share with them the truth of what happened and if that means taking responsibly, that shows integrity, we’re all human anyway.  The key is to deliver the news as soon as you get it and to provide solutions going forward.  I have never had a client angry with me when I take this approach.  What I do find is that they will want to vent and if they do, let them.  In fact, there is nothing more important that allowing them to blow off steam.  Guess what, if they don’t blow it off with you, they will to someone else who is a potential customer of yours!  The inverse is hiding it from them as long as you can and them knowing that something is wrong and having to confront you with it.  Nothing is more frustrating to a customer and a sure way to get them to never come back.

4.  Thank Them – This may sound obvious, but it’s surprising how many people don’t call their client after they have completed a transaction with them, thanking them for their confidence and trust in you.  Try this one on for size.  Many of us call them every day when they are a potential customer.  Then we taper back to once a week or so when they are a current client.  Finally, this transaction has concluded and we stop calling them at all!  What message are we sending to them?  Do we really want them to think that they were really only about this one paycheck?  The best thing that you can do after the transaction is complete is pick up the phone and thank them and ask them if they have any constructive feedback as to how you can do a better job.  Let them know that you value them and that you would love to work with them again and if they have anyone who they know that might be in need of your assistance that you would be honored to have the opportunity to work with anyone who they might refer. 

To your success,

Tim Braheem

The Art of Database Management Part I: Working Smarter

The relationship you develop with your customers, combined with the personal information you are constantly collecting, can be a goldmine for future business. The fact is most business professionals spend a significant amount of money marketing to people they don't know in an effort to procure new business.

Wouldn't it make more sense to go deeper with your existing clients – to really understand their needs – and spend your marketing dollars on people you already have a relationship with?

In Bill Gates' book, Business at the Speed of Thought,* he states:

"How you gather, manage and use information to serve the needs of your customer will determine whether you win or lose in your business."

This is a terrific definition of database management. Database management is about gathering information about your customers so you have an understanding of their relevant needs. From there, you can proactively structure a plan to give them exactly what they want.

Have you ever provided excellent service to clients only to have them turn around and use the services of one of your competitors without even giving you the opportunity to make a bid for their business? When this happens, it happens for a reason. The fact is, your client had a need and you weren't there to fulfill it for them, probably because you didn't even know they had a need.

We now have the ability to run reports and analyze the information you have about your customers. You can then use that information to put yourself a step ahead of the competition. By proactively serving your clients' needs and interests, you will no doubt become more successful

Happy 4th of July!

I hope you and your family have a very safe and happy Fourth of July!  Someone said: "Liberty is the right to choose, freedom is the result of choice."  I hope you have a chance to choose to reflect on all the freedoms we are blessed with in this country.  I hope this will motivate you to say thank you to the heroes that have risked everything to secure said freedom!  HAPPY FOURTH OF JULY!

If there is ever anything I might do for you please do not hesitate to give me a call!