Why you win & why you lose

Imagine a business owner who doesn't want to know why he won a customer, why he lost one or why they chose just to not buy from anyone. Far fetched? Not even close. Small business owners and their sales teams often try to spray the wall in hopes that something will stick, rather than having loads of information to guide and streamline their efforts. This is inefficient on man hours, but even worse, it eats into your profit.

Knowing why you lose a sale is arguably the most important aspect here for small business owners, however it's just one piece of the puzzle. There's no doubt knowing why you lost a sale can help you make changes, whether in staff or tactic, however knowing why you win sets up your brand story. Knowing why people simply chose not to buy at all helps you recognize barriers you can plan to climb over.

Many small business owners spend too much time staring at their own navel; they make broad stroke announcements on the best features of the product/service without ever consulting their customers. Take the time and spend the money to learn why you win over your customers. Their answers may surprise you and give you a whole new brand story to tell that will sway potential customers in your direction.

On the opposite side of the fence, some small business owners are too willing to accept creative excuses for why a sales call failed. Just because your sales team has experience in sales doesn't necessarily make them good at it; it may just make them good at coming up with creative excuses. There's no doubt it can be challenging to go back to a customer who has told you 'no' and ask why. But the benefits far outweigh the discomfort.

You can learn whether your sales team is focusing on the customer's needs or simply the sound of their own voice. Maybe you're missing the boat on what makes your product/service special in the eyes of your customer. There is so much learnin' that can be done by talking to your customers after the fact, not just during the front end of the sales cycle.

If you need to, hire a consultant that can handle the surveying and conversations with your customers after the fact. An experienced consultant can wade through the information and give you the tidbits that will make a noticeable and profitable difference to your business.

Be brave, be willing to listen and be prepared to change.

Your current customer - your best business growth asset

It doesn't matter whether it's a recession, depression or just business as usual - your current customers are the best source of business growth. Unfortunately, too many businesses neglect their current customers to go searching after new ones.

Research has shown it takes about five times the money to get a new customer as it does to retain a current one. But just retaining a current customer really isn't enough. Why not get them to do more business with you? Why not get them to bring their friends and family to your business as well? Or in the case of business-to-business enterprise, why not get their co-workers into your customer base?

In some businesses, management believes it is solely the job of the sales force to stay in touch with current customers and try to grow the business. I would suggest however the sales force could be more efficient if the marketing team is on side with the importance of incenting current customers to grow their business.

Have you contacted your customer base to let them know you're still there to support their needs? Have you sent a postcard, letter, email? Have you told them they're appreciated? Have you demonstrated your appreciation through a special offer only to your current customers?

If you haven't, you're missing an efficient, economical business growth opportunity. If you have a retail location, invite your current customers to a small wine-and-cheese party to show off your new merchandise and have some great loss leaders to show your appreciation. If you are in the service industry, perhaps a partnership that compliments your service could be a good appreciation gift (and then you can do the same for that business).

Everyone likes to be thanked. Especially when there's gifts involved. A promotional item with your logo prominently displayed would be an excellent gift. That way your business identity stays in front of them for a longer period of time. But make sure the gift matches your branding. Don't give away a cheap pen if your business represents expensive items.

Bottom-line is: you need to stay in touch with your current customers and give them a reason to do more business with you. And if you can get them to talk about you to their friends and family, even better. Don't wait for someone else to do this for you. Get on it, right now.