Elements of Success

Your marketing plan should be a clear, concise, and well thought out document that guides you through your marketing program. It should focus on the objective of your marketing and how you intend to accomplish that objective. Whether your company provides products or services, your marketing plan is essential to your success

Create Your Marketing Plan

Your marketing plan should be a clear, concise, and well thought out document that guides you through your marketing program. It should focus on the objective of your marketing and how you intend to accomplish that objective. Whether your company provides products or services, your marketing plan is essential to your success.

The six major elements to creating a successful marketing plan are listed below. You may only need only a sentence or two per section... or you might want to break each down into a few succinct bullet points.

1. The Purpose
2. Your Target Customer
3. The Benefits of Your Product or Service
4. Your Positioning
5. Your Marketing Tactics
6. Your Marketing Budget

As you go through each section, keep the following tips and hints in mind:

Keep your marketing plan simple.

Many small business owners get so involved in details that they lose sight of their goals. By keeping your plan simple, you will create a clear roadmap that focuses on what you need to accomplish.

Write your marketing plan down (as opposed to thinking about it and keeping it in your head).

It is important to have a document that will remind you what you are trying to accomplish.

Be direct and be clear.

If you're not sure, ask a friend, relative, colleague or employee to read your plan. They should immediately grasp your goals.

Don't build in too much flexibility.

You may be tempted to plan for various market contingencies. If your market changes that quickly, then you should incorporate that into your plan. But create a strategy you can keep to - that's the purpose of having a plan in the first place.

Review your marketing plan often - quarterly or even monthly.

That doesn't mean you have to revise it every month. But take some time to evaluate it and make sure you're on track.

Finally....never stop marketing!

Once you have your plan in place, you need to take action. Commit yourself to your marketing program. Don't let yourself stagnate. Keep at it, and you'll be giving your business the opportunity to flourish.

he Purpose

The general purpose of any marketing plan is to maximize your business' profits. But what does that mean for your business? Spell it out here. If you're a children's clothing designer, your purpose might be "To sell the greatest number of infant dresses at the lowest cost per dress". If you're a self-employed computer consultant who helps companies utilize the Internet, your purpose might be "To book my time completely by getting the greatest number of clients at the lowest possible cost."

Some things to think about when you're writing this section:

• Your marketing plan's purpose may seem obvious to you. But by putting it up front and in writing, you will stay focused on your intent.
• Many businesses think their marketing plan is about increased exposure, getting press, writing cool ads, and the like. These are not purposes, they are tactics. The end result of any of these is to increase your profits.
• If you're having trouble answering "what is the purpose of your marketing plan," you might want to think "why are you marketing?" Your answers to these questions should be the same.

Your Target Customers

In order to reach your target customers, you've got to know who they are. Look for common identifiable characteristics. Are they companies or individuals? Do they fall into a certain age, geographic or income demographic? How do they buy your type of products or services? How often do they buy them? What features do they look for?

Don't use general terms - instead of "people who want to buy a dress for an infant" use something like "grandparents and other gift givers who are looking for a special outfit for a newborn."

Be careful not to spread yourself too thin. Not everyone is your target customer. Don't sell to everyone - segment your markets. If you are selling home heating oil in a specific region, you could target your marketing at every household in that region. But would that be an efficient use of your time and money? Probably not. You'd want to narrow your focus. Is your target customer existing users of home heating oil or is it people who use gas heat but are thinking of converting to oil? Or are you looking for people who've just bought a house and haven't decided who they will buy their oil from? Are you selling to residential customers or to local businesses?

Some other things to look out for:

• Be sure your target market is large enough to support your sales objectives.
• Don't guess who your target market is. When possible, quantify by numbers through research. Call trade associations; go to your research library and look up market data; use demographic information from the census; etc.
• The purchaser of your product or service may not necessarily be the user.
• If you're selling business-to-business, remember that your product or service is bought by a person, not by a company.

The Benefits of Your Product or Service

You don't market a product, and you don't market a service. You market benefits. Describe them here. Think in terms of the distinctive features of your product or service that set you apart from your competition. This is also known as your Unique Selling Proposition, or USP. It could be the design of your product, your knowledge of the market, a new technology, a special service, a singular talent, or something else. For example, the USP of a Sony television is the superior picture of the Trinitron tube. Burger King's USP is that its burgers are flame broiled.

Think about these points when you're developing your USP:

• You might want to consider your weaknesses as well as your strengths. Once you know what they are, you can use marketing to maximize your strengths and minimize your weaknesses.
• Also consider your competitors' strengths and weaknesses - so you can minimize their strengths and take advantage of their weaknesses.

Your Positioning

Position is your identity in the marketplace; how you want the market and your competitors to view your product or service. Your positioning will have an impact on every segment of your marketing.

Base your positioning on the benefits you offer, who your customers are, and how your competitors are positioned. Keep your positioning statement highly focused and succinct. For example, Acme Movers could be positioned as "the most dependable moving company in the Tri-City region." Two architects who specialize in kitchens could have totally different positions - one could be "the most innovative designer of modern kitchen environments," while the other could be "the most cost-effective designer of traditional kitchens." Whose kitchen do you think you'd see in Metropolitan Home and whose do you think is targeted at the average buyer?

Some positioning tips:

• When creating your positioning statement, think in terms of extremes - the "most," the "best," the "fastest," the "cheapest," the "only," etc.
• If there's not much difference between you and your competitors, look for a meaningful customer want or need that has not yet been filled.
• Don't position directly against a competitor, if possible. If you do, you may be caught without a position should your customer change its focus. Instead, focus more on your product's or service's strengths.
• Be very careful if you position solely on price, since that position can be very easily pre-empted.
• Don't position just on image. You need to back up your positioning with substance. If you can't, it's a recipe for disaster.

Your Marketing Tactics

Your Marketing Budget

Briefly discuss how much money you intend to invest in marketing as percentage of your projected gross sales. You can break it down on a monthly, quarterly or annual basis. Ideally, you will have already determined the amount of your marketing budget when you created your business' various financial statements. The figure you choose will depend greatly on your type of business and your goals. It can be anywhere from 5% to 50% or more. If you're a heavily marketing driven venture - a company selling products through direct mail and direct response advertising, for instance - then you will likely allocate more than a company that will build its client base through networking and relationship marketing.

Here are a couple of other things to consider when you're creating your budget:

• By putting down a figure, you are committing yourself to supporting your marketing program. You will know how much you can afford to spend on different forms of advertising, PR, and other tactics.
• Be sure to keep track of how effective each marketing tactic is. You want to get the maximum return on your marketing investments.

Effective Competitive Analysis

For your small business to succeed, you need to know almost as much about your competitors as you do about your own company and customers. Unfortunately, many small business owners make the mistake of waiting until a competitor has opened up shop across the street and is cutting into profits to find out who and what they're up against.

A competitive analysis allows you to identify your competitors and evaluate their respective strengths and weaknesses. By knowing the actions of your competitors, you will have a better understanding of what products or services you should offer; how you can market them effectively; and how you can position your business.

Competitive analysis is an ongoing process. You should always be gathering information about your competitors. Look at their Web sites. Read their product literature and brochures. Get your hands on their products. See how they present themselves at trade shows. Read about them in your industry's trade publications. Talk to your customers to see how they feel about competitive products or services.
Click on the steps below to learn more about how to analyze your competitors:

Step 1: Identify your competition
Step 2: Analyze strengths and weaknesses
Step 3: Look at opportunities and threats
Step 4: Determine your position.

Step 1: Identify your competition

Every business has competitors, and you need to take the time to discern who your customers can approach to get a product or service that fills the same need as yours does. Even if your product or service is truly innovative, you need to look at what else your customers would purchase to accomplish this task. For example, you may be opening a Website that offers online Bingo. Your competition would be other Bingo sites, other Web gaming sites, the Bingo hall down the street, and any other businesses that are competing for the same leisure-time dollars.

Begin by looking at your primary competitors. These are the market leaders, the companies who currently dominate your market. They are probably the ones who you find yourself bumping up against in your search for new customers. If you're a florist, it would be other florists in your neighborhood. If you're a computer consultant, it would be other consultants with the same specialty.

Next, look for your secondary and indirect competitors. These are the businesses who may not go head-to-head with you, but who are targeting the same general market. Sticking with the florist example, it might be a small local roses-only store, a national floral delivery service, or the flower/plant department of your local supermarket or discount store..

Finally, look at potential competitors. These are companies who might be moving into your market and who you need to prepare to compete against. For example, you might have an independent frozen yogurt stand; you will need to prepare to compete against national frozen yogurt franchises, even if they are not yet in your market.

Effective Trade Show Planning

Exhibiting at trade shows, expos, conventions, fairs and other exhibitions gives you a unique sales opportunity that can also help you generate new leads, find suppliers, check out the competition, do some networking, and get publicity. In short, you can achieve at one trade show what it would take you weeks or months to do if you stayed home. And it may even save you money -- according to the Center for Exhibit Industry Research, it costs 62% less to close a lead generated from a trade show than one originated in the field.

But to accomplish all of the above you must plan carefully. That means choosing the correct show, setting clear objectives, creating an effective exhibition, and promoting your presence. All this, before you even get to the show! Click on the subjects below to learn more about getting the most out of your trade show experience.

• Choosing the Correct Show
• Setting Clear Objectives
• Creating an Effective Exhibit
• Promoting Your Presence
• Planning Your Follow-up Strategy

Choosing the Correct Show

With thousands of trade shows held annually, picking the one that will net you the greatest benefit for your investment of time and money can be daunting.

Begin your search by looking for trade shows that fit your product or service. On the Web, you can try one of the trade show search sites, including

Trade Show News Network

Another resource for finding out about shows is your industry's trade association, since many shows and conventions are sponsored by industry groups.

Here are some additional tips to help you make the right choice:

Don't just choose by the numbers

Big trade show crowds can actually be a waste of time if they don't include people who are buyers or prospective customers for your product or service. Look closely at statistics of past years' shows to help you evaluate whether attendees fit your customer profile. The show manager should be able to provide you with this data.

Ask your customers for help

Talk to your customers to find out what trade shows they attend, since shows that meet their needs will likely be attended by other prospects. You can also speak with your competitors to find out what shows they've found most useful.

Check it out ahead of time

The best way to evaluate a show is to take a first-hand look. Before you sign up, go to the show as an attendee. Is the show active and exciting? Are the people walking the show floor potential customers? Who are the other exhibitors and where would your product/service fit in the mix? Talk to people and keep your eyes open.

Evaluate it carefully

Once you've got a list of show possibilities, ask these questions to determine if the show is the right one for your purposes:

• Is it big enough to draw a cross-section of prospects and vendors -- but not so large that you'll be competing against the giants in your industry?
• Is it in the right place, geographically, to attract your customers -- whether they are local, regional, national, or global?
• Is it scheduled at a time when you can service the new business you'll attract and follow up on leads?
• Are the show's promoters reliable and does the management have a proven track record of success?

Don't wait until the last minute

Some popular shows fill up fast. If you wait too long, you could find yourself on a waiting list. Plus, the earlier you sign up for a show, the more choices you'll have regarding finding a good location for your booth.

Setting Clear Objectives

To get the most out of the time, money and energy you invest in exhibiting at a trade show, it's vital that you decide what your purpose is for being there and set measurable goals. Everything you do before, during, and after the show should be evaluated in terms of whether it contributes toward reaching these goals.

Possible goals for trade shows

Here are some reasons businesses exhibit at trade shows. Your goals may include several of these, or others that are important to your small business: To get the most out of the time, money and energy you invest in exhibiting at a trade show, it's vital that you decide what your purpose is for being there and set measurable goals. Everything you do before, during, and after the show should be evaluated in terms of whether it contributes toward reaching these goals. Here are some reasons businesses exhibit at trade shows. Your goals may include several of these, or others that are important to your small business:

• write sales orders
• research the competition
• spot trends
• generate leads for future sales
• build your mailing list with quality names
• find better or cheaper suppliers
• build rapport with current customers
• get press
• generate excitement around a new product
• increase company's visibility within the industry

Be sure to staff your booth adequately and smartly

You can't do it alone. No matter what your goal, you will need at least one person to "spot" you when you leave the booth to take a break or to check out the competition. A good rule of thumb is to have two staffers for every 100 square feet of exhibit space. Your staff should be well-groomed, well-trained, friendly and knowledgeable. They should understand your goals and know their role in reaching them. If you don't have employees on the payroll, hire relatives, friends, or part-timers.

Focus your message

Pick just two or three key ideas that you want to get across at the show and train yourself and your staff to "stay on message". Design your graphics, pre-show promotion, literature and show directory advertising around your message.

Create a budget

Once you know which show you're going to and what your goals are, draw up a budget. Without a budget, costs can quickly spiral out of control (last minute impulse purchases to jazz up your booth, for example) and defeat your best laid plans. One rule of thumb is that your space costs should represent about a quarter of your total budget. So when you know what you'll be paying for space rental, multiply by four for a rough idea of your expenses, excluding personnel costs.

Creating an Effective Exhibit

Where your booth is located and how your booth looks will have an impact on your trade show success. Use these tips to help you along.

Shoot for a high-traffic location

Be sure to look at a floor plan before you choose your site. Foot traffic is heaviest in certain areas of a typical trade show floor. Look for locations near entrances, food concessions, rest rooms, seminar rooms, or close to major exhibitors. Try to avoid dead-end aisles, loading docks, obstructing columns, or other low-traffic regions.

Consider sharing a booth

New exhibitors often get the least desirable locations. One way around that is to share a well-located booth with a colleague in a related business. Talk to your sales rep, or try to hook up with an established exhibitor whose products or services complement yours.

Elate the senses

Make sure people coming to your booth can experience your product or service. Let them touch, see, feel, hear or taste it. Are you selling decorative pillows? Display them in an appropriate setting and have samples that buyers can touch. Have you developed a new software package? Be sure to have multiple computer terminals available for attendees to try the package.

Keep it simple

Don't go overboard with booth graphics. One large picture that can be seen from afar may have a greater impact than many small ones. A single catchy slogan that describes your business may say more than long blocks of text.

Gimmicks work

Gimmicks and give-aways can also drive traffic to your booth. Hold a contest; have a loud product demo; give away pieces of candy; hire a masseuse and offer free back rubs. Just make sure that the gimmick fits your company's image and the sensibilities of your clients.

Promoting Your Presence

Remember that the best trade show planning will fail if nobody knows you're there. The CEIR estimates that as many as three-quarters of show attendees know what exhibits they want to see before they get to the show. Strong pre-show promotion will let your customers and prospects know about your exhibit. These tips will help.

Work the phones

A month to 6 weeks before the show, start calling your top customers and prospects to set up meetings. Many people arrive at a show with a firm schedule and have little or no time for other booths, so it's important to get on that schedule as early as you can. Be sure to confirm all phone meetings a week or so before the show.

Send out mailings

The show's management will often let you purchase a mailing list of pre-registered attendees. Try a simple pre-show mailing focusing on one or two benefits of dropping by your booth. Be sure to it includes show contact information, including your booth number.

Use the press

Issue press releases to trade publications and local papers that will be covering the show. Your release should highlight something newsworthy about your exhibit -- a new product introduction or a special demonstration, for example. You'll also want to prepare plenty of press kits for the show, and be sure to drop it by the press room so reporters can find it.

Look out for show publications

Advertising in publications that are distributed only at the show can be expensive and ineffective. These publications often have a narrow focus, and they get lost in the blizzard of paper that rains upon trade show attendees.

Planning Your Follow-up Strategy

The time to plan your follow-up strategy is before the show begins. That way, you can reach prospects with your follow-up message while the show is still fresh in their minds. Here are some things you should know about follow-up.

Make follow-up a priority

According to the Center for Exhibition Industry Research, 80% of show leads aren't followed up. Make lead follow-up your number one priority after a show, taking precedence over just about everything else -- including catching up on what you missed while you were out of the office.

Write your follow-up mailer before the show

Your post-show mailing can be as simple as a thank-you note or a brochure with a cover note. Write it and have it printed out before you leave for the show, so you can send the mailing immediately upon your return.

Qualify leads during the show

Rank your leads by level of importance and interest, and base your post-show efforts on these priorities. Phone your hottest prospects within a week after the show ends -- the longer you let them sit, the staler they'll become. Send everyone else some kind of follow-up mailing.

Keep your promises

Be sure that you keep any promises you made at your booth. Have enough brochures and product sheets on hand before the show so you can send out requested information promptly.

Elements for a Successful Press Campaign

To conduct a successful public relations campaign, it helps to be familiar with some of the basic PR tools. Choose any of the following "elements" of a PR strategy to learn more about what they are, how they're used, and when you might want to use them.

• Press Kit
• Press Releases
• Media Alert
• Backgrounder/Fact Sheet
• Biographies
• Media Lists/Contacts
• News Conferences/Briefings

Press Kit

A press kit is essentially an "information kit" that will provide a journalist with background information about you and your company. Basically, it is a folder (preferably one with your company's name and logo on the outside) that contains many of the "informational" elements described below. Remember, it is not a sales brochure -- it should be a real help to reporters in writing their stories.

You will need to have press kits prepared when you are holding a press conference; when you go on a press interview; and whenever you are pitching a story to someone who does not know anything about your company. You also might want to send out an updated press kit once a year so that people following your company will have the most up-to-date information. The contents of your press kit should change depending on when you're using it. In general, it will include some or all of the following:

• Recent press releases
• Background material about your company
• A one-page fact sheet about your company
• Biographies of your top executives
• Photographs of products (be sure to include captions)
• Photographs of your executives (essential for an interview)
• Pertinent product sheets/brochures
• Contact names and numbers

Press Releases

A press release is the primary way you communicate news about your company to the media. Reporters, editors and producers are hungry for news, and they often depend on releases to tip them off to new and unusual products and companies, trends, tips and hints, and other developments.

Media Alert

As the name suggests, a media alert is used to inform the media about a press conference, special event, demonstration, or other newsworthy event. It is a one- or two-paragraph "release" that focuses on what will occur, and why the media would be interested in it. You might want to think of it as a way of inviting the press to attend your event. Here are some situations when a media alert would be effective:

• Your company is exhibiting at a trade show and will have a celebrity at your booth
• A busload of elementary school students are coming to your company for career day
• You're holding a press conference
• There's a special demonstration inside your store
• You're presenting a keynote address to a local organization
• You're having a groundbreaking ceremony
• Your company is sponsoring a charity event or making an important donation

Be sure your media alert includes:

• What is happening
• Why it is important
• Where it is happening
• When it will occur
• Who to contact for more information
• An invitation for the press to attend
• And don't forget to say that photo opportunities are available!

Backgrounder/Fact Sheet

A "backgrounder" tells your company's story. It should include all pertinent information --about your company--its products or services, its market/industry, and its management team. It should be written in such a way that it holds a reporter's interest. Keep it focused on benefits and information...once again, this is not a sales piece, so keep the hype to a minimum.

You can create a workable backgrounder by writing a paragraph or two about each of these elements:

• What your company does
• When and why your company was started
• A brief history of your company
• Your products or services
• Your key personnel

You might also want to create a one-page corporate fact sheet. It is briefer and more "bare bones" than a backgrounder. A fact sheet lists the basics about your company, including:

• Your company name
• Your address and phone number
• The focus of your business
• Your products or services
• Your management team
• Contact names and numbers

Biographies

It is important for you to have up-to-date biographies of all your top executives. These are particularly critical when you are planning press interviews and press conferences, since reporters will want to know about the person they are interviewing.

Focus a bio on the person's current responsibilities. What does he or she do for your company? That's the most important information you include, and should be at the beginning (i.e. John Smith oversees Anycompany's sales efforts). In other words, write it in reverse chronological order -- with the most recent information first, and the oldest last. You can also be creative -- talk about what sets a person apart from the crowd, what makes him/her different. When you're writing a bio, think in these terms:

• What does this person do for my company?
• Why does he/she do that job well?
• What other qualifications does he/she have?
• What did he/she do before? Is it pertinent to his/her current job?
• Is there anything else about this person that would make me stop and think "hey, that's really interesting?"

Media List/Contacts

Just as it is important to keep an accurate database of your customers and prospects, it is crucial to make sure you are targeting the right people with your media message. Many small businesses make the mistake of sending press releases to "Editor," assuming it will be forwarded to the right person. That rarely happens. You need the name of the right editor or reporter.

Getting the right name is as simple as calling and asking who the right editorial contact is. Then get to know that person. Editorial contacts can be the most important element of your PR campaign. Think about it this way: a reporter is more likely to write about a company or person he/she knows about...and is MOST likely to write about a company or person with whom he/she has a relationship.

Editorial staffs change on a regular basis, and reporters often shift "beats" (what they cover). Be sure to review your media list every 4-6 months to keep it up to date.

To qualify your media contacts, ask yourself these questions:

• Is this a publication I want publicity in?
• Do my customers/prospects read this publication (or watch this TV show)?
• Does this person write about companies such as mine?
• Does this person assign articles that would include a news event like mine?
• Is there another writer or editor at this publication who would also be interested in my company?

News Conferences/Briefings

A news conference (or press conference) is a formal event to which you invite the press to learn more about an important, newsworthy announcement. For the most part, unless you have something truly momentous to announce, news conferences should not be used by small businesses. You probably won't have the drawing power to justify putting together this kind of event, and other PR methods will be more effective.

The operative word in news conference is "news." You will attract the press to a news conference by promising to deliver a real news story to them. It is important to keep that promise. If you don't, you will be like the boy who cried "wolf." Waste a journalist's time once, and you will not get that time again. And you won't be doing any good to your company's reputation.

A news briefing is a less formal get together -- you might bring together four or five reporters to give them an update on your company or fill them in on some new product information. You can also use the time to answer questions and let the press learn more about what you and your company do. You can hold a briefing in your company's conference room, over lunch at a restaurant, or another comfortable location.

Here are some situations where a news conference or briefing might be appropriate:

• Your company is announcing the launch of a new product or service
• Your company is acquiring a strong competitor (or is being acquired)
• Your company strikes a major joint venture deal with a large corporation
• To announce the findings of an important poll or survey

Find Your Highest Potential Customers

The 80/20 rule - that 80 percent of your sales come from the top 20 percent of your customers - applies to most small businesses. Nurturing that precious 20 percent means focusing your marketing programs on the customers who drive your company's profitability. A laser-like focus on these high-profit buyers also prevents you from expending too much effort on lower profit customers.

Remember that profitability does not necessarily correlate with the amount of money a customer gives to your business. In many businesses, smaller sales can be highly profitable, while larger sales can cost the company a lot to administer or deliver, and therefore have a smaller profit margin.

Use the tips here to unearth your most profitable customers.

Calculate acquisition costs

To assess customer profitability, you need to determine how much it costs your business to attract each customer. Many small businesses will be able to get away with a cost of sales analysis that is much simpler than what larger companies use. Keep in mind that the cost of sales numbers produced through these calculations are averages, to be used for rough evaluations of your customer base.

To conduct a simple analysis, first review the effort involved in closing a typical sale. Be sure to include expenses like a salesperson, direct mail, Web site development or other advertising costs. Estimate the total cost of your outreach and divide it by the number of sales you close annually to do a "quick and dirty" analysis.

Calculate cost of customer service

It is important to track your customer service expenses to measure how profitable your current customers are. The equation is similar to the cost of sales analysis. Apply costs for service-related items such as order taking personnel, project manager salaries and delivery of your product or service to each customer. Estimate the average cost of servicing each customer by dividing by the number of customers you serviced during the year. If you need help determining key service expenses in your industry, ask your accountant for industry standards. Keep in mind that the cost of service numbers produced through these calculations are averages, to be used for very rough evaluations of your customer base.

Create a high-potential profile

With the two figures above and the revenue that each of your customer provides, you can determine a rough sense of individual customer profitability. You can use this information to develop a profile of your high-potential customer. Look for common characteristics and behaviors. Do they fit into specific demographic or geographic categories? Do they have certain shared attitudes or values? Do they make their buying decisions in a similar way? This profile will help you develop the most effective marketing programs to reach these targets, extend their value to your company, and attract more high-profit customers.

Some businesses might want to go a step further and develop a customer potential pyramid - a three-segment hierarchy that breaks out the company's high-potential, medium-potential, and low-potential customers. The purpose of this profile is to look for marketing tactics to migrate customers into the high-profit categories.

Reallocate efforts around least profitable customers

In support of your focus on the top 20 percent of your customer pool, you should make an effort to not attract unprofitable customers. Review your records for those customers who cost you valuable time and money and create a profile of them in the same way you built a high potential profile. To the degree that you can, be sure that your marketing programs exclude these customers, to keep you efficient and profitable.

Since every relationship is an important link to other customers, try to avoid alienating anyone by telling them you don't want their business. Instead, just avoid focusing resources on reaching them.

Get Better Customer Input

Surveys are an excellent way to find out how your customers feel about a new product, service, location, store policy or virtually anything that's important to your business. A survey will tell you what your customers expect of you and your company, and clarify how well you are performing in their eyes.

If executed properly, you can achieve impressive results without spending a lot of money. Customer service experts estimate it can cost between $3,000 - $5,000 to sample a representative segment of your customers.

The tips below can help you create an effective survey:

Start with clear objectives

A strong survey has a clear goal or focus. (i.e. to find out how customers feel about a proposed new location or store layout; get response to a new product or service; learn why once loyal customers are now shopping elsewhere). Take time up front to know why you're surveying your customers, and you will get results that will help you make your business more effective.

Give customers a compelling incentive for responding

Ron Zemke, author of "Coaching Knock Your Socks Off Service" (Amacom) suggests including discount coupons for certain products or services with the survey. Or, if customers return the survey in person by a certain date, they're entitled to a 10 percent discount. This can be particularly useful if you're using your survey to prospect for new customers. It might also be as simple as a sentence at the top of the survey indicating that you are using the input to evaluate current policies/products and create new ones -- customers like to feel like they can have an impact on your company.

Ask questions that are important to customers

Customers aren't concerned with issues that do not pertain to them (i.e. hiring, promotion or store policies, outreach programs, etc.). Make sure that each question is important to your customers' needs, not your internal management. Plus, remember that a successful survey arouses excitement and is fun to fill out. Don't put yourself in a position of wasting your customers' time.

Keep the survey brief

Ideally, it should contain 10-12 questions neatly spaced on one page.

Use a confidential self-mailer to generate higher response rates

The easier it is for people to respond, the higher the response rate will be. Self-mailers are highly recommended because they require less paper and postage. Next best is including an addressed pre-stamped envelope. ( It's presumptuous to expect respondents to use their own postage.) Also, stressing the survey's confidentiality increases your chances of getting honest answers.

Ask compelling easy-to-answer questions

Keep questions direct, simple and brief. Scaled questions (strongly agree, moderately agree, disagree, don't care) and yes/no questions are the easiest to answer. Long, wordy multi-part questions should be avoided. An example of a good question: How well do you feel your accountant meets your tax needs? The answer would be on a scale of 1 (poor) to 5 (excellent).

Encourage customers to give their opinions

With every question, enclose a "Comments" line, encouraging respondents to express opinions -- both positive and negative. Many service businesses, for example, have been successful with questions such as, "If this were your business, what would you do differently?" If respondents feel strongly about the issue, pro or con, there's an excellent chance they'll answer it.

Test survey before mailing it

Andy Mosko, managing principal of Organizational Research Forum, Inc., Vernon Hills, IL, a company that specializes in designing customer surveys, advises testing a survey before mailing it. "Try it out on a few good customers," he says. "You'll be pleasantly surprised to discover it can be improved."

Focus your surveys on your best customers

These are the people whose opinions you value most. You don't have to mail a lot of surveys to get valuable information. If you have 2,000 valuable customers, for example, consider sampling 500. A 50 percent return (250 respondents) is considered excellent; 30 percent (150 respondents) is considered good and 10 percent (50) is dismal. If the lion's share of your business comes from only 8 or 10 customers (as may be the case with a small service business), design your survey with their needs in mind.

Preview survey with postcard arousing curiosity

A brief attention-commanding announcement should be delivered a week before the survey is officially sent. It's an opportunity to highlight the benefits (premium, discount or special money-saving coupon) of filling out the survey and sending it back promptly.

Hone Your Sales Presentation Skills

When you deliver an in-person sales presentation, you have a unique opportunity to appeal to your prospect on a number of levels at once. Your physical appearance, your choice of words, your general demeanor and your level of enthusiasm all play a part in whether you come across as powerful and persuasive or weak and ineffective. No two sales presentations will be (or should be) alike, but there are some elements common to all successful presentations. Follow these pointers to make the most of your next presentation:

Be enthusiastic

You can't persuade anyone if you aren't persuaded yourself. Believe in what you are offering and communicate that confidence with your enthusiasm. This doesn't necessarily mean talking fast or loudly. It means being lively and punchy as you make your points and ask your questions.

Keep it simple

Don't try to dazzle your audience with jargon or fancy words. People are rarely impressed by language that they don't readily understand. More often they'll be confused, irritated, or bored. Say what you mean as clearly and concisely as possible. Be yourself and speak with the vocabulary you normally use.

Keep checking in

Remember that a powerful and successful presentation will be interactive. As you work your way through your presentation, constantly monitor the communication process, "Is this clear, so far?" "These are the items most important to you, is that right?"

Make eye contact

When you meet someone's eye, you are much more likely to win his or her confidence and trust. Remember that a presentation is like a conversation. Keep eye contact with everyone in the room and don't focus on only one or two people you think may be key. You don't necessarily know who the major player will be or how much input others will have in the decision-making process. And it never pays to alienate anyone in your audience.

Put yourself in your listener's shoes

Make your presentation interesting and informative, and be sensitive to the amount of time you are taking. Picture yourself on the other side of the table and ask, "what would I want to be hearing and seeing right about now?" Remember that for your customer, there is nothing inherently interesting about you or what you are selling. You have got to make him care by answering the questions he'll be asking himself: "So what?" "What's in it for me?" and "How do I benefit?"

Be well rehearsed

Don't think you can create a successful presentation on the fly. Plan your presentations carefully and run through them several times in advance to polish your techniques and build your confidence. Check your timing. If you're using slides and charts, make sure they're in the right order. Try and anticipate questions or issues that your prospect might raise, and prepare answers to them in advance.

Dress for success

In this day and age of the casual office, it's sometimes hard to figure out what's appropriate to wear. You should be dressed at least as formally as the people you will be meeting with. It's always better to err on the side of being overdressed. When in doubt, dress conservatively in traditional business attire.

Exit gracefully

Whether or not you think you've been successful, be gracious and leave the door open for further communication. Always conclude by thanking your prospects for their time.

Hone Your Sales Presentation Skills

When you deliver an in-person sales presentation, you have a unique opportunity to appeal to your prospect on a number of levels at once. Your physical appearance, your choice of words, your general demeanor and your level of enthusiasm all play a part in whether you come across as powerful and persuasive or weak and ineffective. No two sales presentations will be (or should be) alike, but there are some elements common to all successful presentations. Follow these pointers to make the most of your next presentation:

Be enthusiastic

You can't persuade anyone if you aren't persuaded yourself. Believe in what you are offering and communicate that confidence with your enthusiasm. This doesn't necessarily mean talking fast or loudly. It means being lively and punchy as you make your points and ask your questions.

Keep it simple

Don't try to dazzle your audience with jargon or fancy words. People are rarely impressed by language that they don't readily understand. More often they'll be confused, irritated, or bored. Say what you mean as clearly and concisely as possible. Be yourself and speak with the vocabulary you normally use.

Keep checking in

Remember that a powerful and successful presentation will be interactive. As you work your way through your presentation, constantly monitor the communication process, "Is this clear, so far?" "These are the items most important to you, is that right?"

Make eye contact

When you meet someone's eye, you are much more likely to win his or her confidence and trust. Remember that a presentation is like a conversation. Keep eye contact with everyone in the room and don't focus on only one or two people you think may be key. You don't necessarily know who the major player will be or how much input others will have in the decision-making process. And it never pays to alienate anyone in your audience.

Put yourself in your listener's shoes

Make your presentation interesting and informative, and be sensitive to the amount of time you are taking. Picture yourself on the other side of the table and ask, "what would I want to be hearing and seeing right about now?" Remember that for your customer, there is nothing inherently interesting about you or what you are selling. You have got to make him care by answering the questions he'll be asking himself: "So what?" "What's in it for me?" and "How do I benefit?"

Be well rehearsed

Don't think you can create a successful presentation on the fly. Plan your presentations carefully and run through them several times in advance to polish your techniques and build your confidence. Check your timing. If you're using slides and charts, make sure they're in the right order. Try and anticipate questions or issues that your prospect might raise, and prepare answers to them in advance.

Dress for success

In this day and age of the casual office, it's sometimes hard to figure out what's appropriate to wear. You should be dressed at least as formally as the people you will be meeting with. It's always better to err on the side of being overdressed. When in doubt, dress conservatively in traditional business attire.

Exit gracefully

Whether or not you think you've been successful, be gracious and leave the door open for further communication. Always conclude by thanking your prospects for their time.

How to Follow Up with Customers

Following up after you've made a sale will enable you to capture repeat business, the cornerstone of most successful small businesses. You can follow up by phone, in-person, or through the mail. Here are some specific methods you can try:

Call Customers a Few Weeks After a Sale

If you run an autobody shop call all customers two weeks after they pick up their car to find out how the car is and make sure they are happy with the job your business performed. This will enable you to address customer discontent, if any exists. This is also a good time to thank them for their patronage.

Write a Note

A handwritten note thanking a customer for buying from you is a simple step that lots of business owners overlook. This type of personal approach is almost always appreciated and remembered. Form letter follow-ups are not recommended, since they lose their personal touch.

Keep in Touch

Call your customers periodically to find out if their business has changed in any way, and if you can help them with anything. Customers will also appreciate being kept apprised of any new developments, upgrades, or additional products.

Seek Customer Input

A survey such as the one below can be printed on the back of a business reply card and sent out to all of your customers. It is excerpted from Superstar Sales Secrets by Barry J. Farber (Career Press). Farber recommends using this survey to determine where you need to improve your follow-up and customer service:

Dear Valued Customer,

To assist us in determining how we may better serve you, please complete and return this survey.

Your name ___________________________________________
Company name ________________________________________
Phone ____________________________ Date _____________

Please respond to the following by checking the appropriate response.

How to Handle a Potential Client with Bad Credit

You've looked at a potential client's credit report and recognize the warning signs - late payments, pending lawsuits, heavy debt load. This customer could be a credit risk. Does this mean you have to turn the business down? Maybe not. Take these steps to minimize risk when working with companies with questionable credit.

Dig deeper

Each potential customer's credit will be affected by different circumstances, so it pays to look closely at the source of bad credit marks. For instance, if a new client sells holiday ornaments, there's a good chance cash flow will be tighter for this business in the summer than in the winter. If you decide to accept its business, you can use this insight to design credit terms that increase the likelihood that you'll be paid. You may require C.O.D. payments in the off-season and down payments when sales are high.

Check references

If a potential customer offers solid justification for poor credit marks, consider speaking with other credit references before making a final decision. You may discover that an outstanding dispute is unfairly labeling the prospect as a credit risk. You might also want to ask for a complete list of suppliers so you can choose which vendors to call, rather than contacting references supplied by the potential customer.

Outline payment terms

Don't give risky customers an opportunity to claim that they didn't understand your payment terms. Protect yourself by requiring that they review payment policies and sign a statement agreeing to them. Be sure to put your terms conspicuously on all purchase orders and invoices. Include details such as payment methods, grace periods, discounts for early payment, penalties for late payments, and the process your business uses to follow up on late bills.

Ask for advance payment

If a company is particularly high risk, don't be afraid to ask for full or partial prepayment. Most businesses that suffer from bad credit know it, and expect that you might be cautious about working with them. Since companies with poor credit are usually interested in improving their rating, you can encourage them to accept prepay terms by letting them know that you're willing to serve as a credit reference in the future if the relationship works out.

Consider personal credit histories

If you're faced with a company that is too young to have a credit history, take a look at the owner's personal credit report to assess how he or she handles bills. There's a good chance that someone who has strong personal financial habits will bring healthy money management practices to a business.

Ask about upcoming receivables

Some companies may be able to provide signed contracts or other proof of upcoming revenue streams. While these documents do not guarantee that you will be paid, they can support a potential client's claim that it has financial resources to pay for the orders it places. Again, be sure to verify all contracts with reliable references.

Start the relationship slowly

If you're nervous about a new client, limit the amount of business you accept from it until you establish a relationship. Another option is to require payment up front initially, and slowly build to better credit terms.

Just say no

While the majority of companies are not high credit risks, there are businesses that you should think twice about before adding to your client roster. If you do your homework and still don't feel comfortable with a potential customer, politely refuse its business. The collection hassle you avoid by saying 'no' up front will save you time and money in the long run.

How to Learn Your Prospect's Needs

Before you can sell anything to anyone, you must first understand what it is they need. Here are some ways to do that:

Do your homework

Prior to your meeting with the customer, do your homework to find out as much as you can about his business. Read relevant trade journals, do a periodicals search for articles about his product or industry at the library, read the Wall Street Journal. Find out who your customer's competitors are, what changes are coming in his business and what his chief concerns are likely to be. But always keep in mind that you will gain the most valuable information and insight into your customer's business concerns by talking directly with him.

Open your mind, not your sample case

Don't walk into a customer meeting with a pre-conceived idea of what you're going to sell them and how you will sell it. You'll sell more in the long run by finding out what aspect of the transaction matters most to your customer. For example, even if you and your competitors are each selling the same widget at the same price, your customer may be most concerned about payment terms, another might be focused on the reliability of shipments, while yet another may care most about product warranties. If you walk in and flip open your widget case before you find any of this out, you'll have missed an opportunity to distinguish yourself from your competitors.

Listen closely

When you're on a sales call, you're there to gather at least as much information as you communicate. This means asking questions and then keeping quiet until your customer has finished with his answers. Don't start answering objections before your prospect has finished talking. The more you can get your customers to talk, the better you will understand what matters to them. Once you know that, you can make sure your presentation addresses their concerns -- and eventually get their business.

Ask questions that provoke dialogue

Avoid asking closed ended questions that will get you "yes" or "no" answers. Such questions typically start with words like "Is," "Do," "Are". Instead, try to ask questions that begin "what" "when" "where" "how" "tell me" and "why," because they almost force the person to elaborate. You will get replies that start conversations. For example, "Do you have problems with vendors?" won't get you as far as "Tell me what you would like your vendors to do better." Your goal is to get your prospect talking about his problems and concerns so that you can determine ways your business can solve them.

Beware of questions that will slam the door shut

Instead, ask questions that will solicit key information. If you ask a customer "Can I give you a proposal on that project?" you'll get a "yes" or "no" answer and that's that. But if you start the process by saying "Tell me the criteria you look for in a proposal..." you are learning critical information instead of ending the discussion.

Survey your customers and prospects

Use written questionnaires or telephone surveys to learn more about your customers and prospects. Solicit comments from current customers about their level of satisfaction with your product or service. Or you might design a survey that will educate you about your prospects' business needs. When a customer or a prospect takes the trouble to complete a questionnaire, you've achieved something more than just learning from the responses. The fact that he's made even the minimal effort tells you something about his level of interest in your product or service. You now have a qualified lead to follow up.

How to Learn Your Prospect's Needs

Before you can sell anything to anyone, you must first understand what it is they need. Here are some ways to do that:

Do your homework

Prior to your meeting with the customer, do your homework to find out as much as you can about his business. Read relevant trade journals, do a periodicals search for articles about his product or industry at the library, read the Wall Street Journal. Find out who your customer's competitors are, what changes are coming in his business and what his chief concerns are likely to be. But always keep in mind that you will gain the most valuable information and insight into your customer's business concerns by talking directly with him.

Open your mind, not your sample case

Don't walk into a customer meeting with a pre-conceived idea of what you're going to sell them and how you will sell it. You'll sell more in the long run by finding out what aspect of the transaction matters most to your customer. For example, even if you and your competitors are each selling the same widget at the same price, your customer may be most concerned about payment terms, another might be focused on the reliability of shipments, while yet another may care most about product warranties. If you walk in and flip open your widget case before you find any of this out, you'll have missed an opportunity to distinguish yourself from your competitors.

Listen closely

When you're on a sales call, you're there to gather at least as much information as you communicate. This means asking questions and then keeping quiet until your customer has finished with his answers. Don't start answering objections before your prospect has finished talking. The more you can get your customers to talk, the better you will understand what matters to them. Once you know that, you can make sure your presentation addresses their concerns -- and eventually get their business.

Ask questions that provoke dialogue

Avoid asking closed ended questions that will get you "yes" or "no" answers. Such questions typically start with words like "Is," "Do," "Are". Instead, try to ask questions that begin "what" "when" "where" "how" "tell me" and "why," because they almost force the person to elaborate. You will get replies that start conversations. For example, "Do you have problems with vendors?" won't get you as far as "Tell me what you would like your vendors to do better." Your goal is to get your prospect talking about his problems and concerns so that you can determine ways your business can solve them.

Beware of questions that will slam the door shut

Instead, ask questions that will solicit key information. If you ask a customer "Can I give you a proposal on that project?" you'll get a "yes" or "no" answer and that's that. But if you start the process by saying "Tell me the criteria you look for in a proposal..." you are learning critical information instead of ending the discussion.

Survey your customers and prospects

Use written questionnaires or telephone surveys to learn more about your customers and prospects. Solicit comments from current customers about their level of satisfaction with your product or service. Or you might design a survey that will educate you about your prospects' business needs. When a customer or a prospect takes the trouble to complete a questionnaire, you've achieved something more than just learning from the responses. The fact that he's made even the minimal effort tells you something about his level of interest in your product or service. You now have a qualified lead to follow up.

How to Network Effectively

Networking is the art of making and utilizing contacts. The goal of networking is to create a pool of people and information that can directly increase the quality of your product or service, decrease customer attrition, and, most importantly, leave your competition wondering how you won a job they never knew was available.

Many small business owners don't want to network because they think its about shoving your business card in someone's hand and boasting about what you do. In fact, networking is actually about getting to know people whom you can help and who can help you.

Networking expert Steven M. Krauser, President of Network Associates, Hicksville, N.Y., contends that most business people don't know how to make networking an effective business tool. "If the result of your networking is a stack of business cards in your top right hand desk drawer and not a lot of additional business, then it may be time for you to re-evaluate your methods", he notes.

Krauser says small business owners should approach meeting people using two goals: get to know as many people as possible, and get them to know you. He then recommends the following four steps to make your networking work:

Give and get information

Networking is a two-way street. When you meet someone, you want to ask them about their business and tell them about yours. Start with the basics - name, company, affiliation, position, nature of business, etc. You next want to find out if you can benefit each other. Try covering these topics:

• What does your company do?
• What types of clients do you serve?
• Who makes the buying decision within a firm for each of your services and/or products?
• What sets you apart from your competition?

Evaluate the value of the contact

You can't network thoroughly with everyone. Once you have the preliminary information, you need to decide if this person is worth meeting again and creating a relationship with. Can you help them and can they help you? The answer should be "yes" to both.

Another criterion is to look for people who are truly interested in helping others solve a problem, no strings attached. In other words, don't think of yourself as a networker but as a problem solver, and look for those same characteristics in someone you will consider adding to your personal network.

Form a strategic alliance

A network is not a collection of business cards, but of people. Take the time to understand the business of those in your network. If you've chosen members wisely, this should be a pleasure. And make sure that you educate them completely about what you do and whom you do it with. Give each other updates and encouragement. In effect, you become each others' sales people.

Remember that the purpose of networking is not to get your contact's business; instead, you're trying to get business from everyone this person knows.

You should also be able to turn to those in your network for management ideas, advice, leads, even vendor recommendations. You will learn from each other and contribute to each other's growth, both in terms of profit and performance.

Maintenance

As your contact base grows, you have to re-evaluate the people in your information loop. Practice effective time management skills and prioritize your contacts. You will want to get in touch most often with those that can be most useful to you. They will become your inner circle.

Be careful never to burn bridges; you never know when someone will be able to help you, or when you will be able to help them. If you feel as though someone is not useful to you right now, you still will want to check in with them now and again, because they may become important down the road. In other words, be nice to everybody because you never know where they'll show up.

How to Sell at Trade Shows

According to the Center for Exhibit Industry Research, the majority of trade show attendees are decision makers or influencers that plan to make a purchase within the next 12 months. Don't waste an opportunity like that -- follow these guidelines to help make sure your staff is ready to sell effectively.

Avoid soft sells

Trade shows require a hard-sell approach. When attendees show interest in your booth, approach them immediately and invite them to learn more about your products or services. Don't leave people waiting -- trade show attention spans are short, and people will leave your booth