OK so you are not sitting around talking about hitting $1 billion in sales right now.
But every start up, and that includes you, needs SOME sales to survive as a business. And they teach you one thing to grow your business:
Do whatever it takes to bring in more customers (and recruits in NM).
That sounds good, doesn’t it?
But in reality, who hasn’t spent thousands of dollars online and off, year after year, bringing in Lookey-Loos? Then, in the midst of all that hunting for prospects, we suddenly realize we’ve lost the three customers we did have.
Here’s some good news. It might save you most of the money you’re now spending on building that illusive customer or recruiter base.
According to Tony Hsieh, the CEO of Zappos (I’m trying to get you the video without strings attached) you need two of three things to get to the $1 billion sales mark. (Do less of those two things if you want smaller sales.) Here they are:
- Top-of-the-line product (very good is not even close)
- Fab customer service (they need to feel a happy surprise every time they deal with you – an “Oh wow!” escapes their lips involuntarily)
- Best prices
Which two of these three do you think you have, or could create, in your business?
P.S. Notice something about this list. It does NOT include any of the usual stuff most small business owners spend all their money on:
- Getting a big list
- Big traffic
- Search engine placement
- Any social media
- Upselling tricks (Mr. Hsieh specifically mentioned they AVOID that because they know long term is doesn’t earn trust (!)
- Email sales tricks
- Google tricks
- Learning niches
- Meetings and conventions
- You name it – whatever you have spent money on
Mr. Hsieh said their business is 75% repeat customers. $1 billion in sales this year and 75% are repeat customers. What would you be earning if you still had 75% of your customers (and recruits)?
Time to change strategy?
Been marketing an essential oil for people who are on their computers 24/7 with stiff neck and achy shoulders who want something natural for pain relief… the orders kept coming in… but recently I STARTED charging shipping because everyone else charged shipping. Thanks for this post I'm now giving my customers FREE shipping to keep them with that extra service, it will be worth it. Thanks Kim.
I'm going to assume best prices is the one Zappos does not do. Their prices are not always good and you can often find something similar elsewhere. But they excel with the other two and that's why they are sooooo successful.
This is great advice! I have #1; can get even better at #2. As always you keep it simple and doable. Thanks, Kim.
I will retweet this one!