10 Things You Can Do to Keep a Customer Today

Where are you spending more time; getting new customers or growing and expanding your relationship with the customers you already have? If you’re like most companies, you’re probably spending more time and money looking for and wooing new customers than finding new opportunities within the customers you already have.

When the economy gets tough, everyone tends to go into survival mode and think that they don’t have enough customers, or that they need new customers to replace the business that they lost. But the truth is that focusing on the customers you already have is your highest value strategy when times are tough.

If you’re afraid of losing a customer or just want to keep the customers you have loyal, here are some easy, low-cost strategies that will help you keep a customer today.

Calculate your customer net worth. The best way to inspire increase sales to existing customers is to see how much these customers have already contributed to your bottom line. The formula is actually simple: Take the total profit of your ideal customer over the lifetime of your relationship. Subtract all the costs associated with acquiring that customer. That’s all there is to it. If you’d like more detail, here’s a wonderful tool that you can use to see how much each of your ideal customers is worth.

Identify what’s most important to your customers. Focus on specific benefits that your customers are looking for such as 24/7 access to technical support instead of just service. The best way to find out is to literally get on the phone or schedule a meeting with a handful of your best customers and simply ask them “What’s important to you when you’re buying what we’re selling?” Then be quiet and let them just talk. Listen for golden nuggets that may not have anything to do with WHAT you provide, but HOW you provide it. That’s where real value lies.

Review the next customer letter you see and remove all elements of “corporate-speak” from it. You can spot fake, empty and inauthentic language (corporate B.S.) from a mile away – so can your customer. And they don’t like it. Customers are drawn to real people who use plain and simple language. Here’s how to test your document’s readability in Microsoft Word 2010: Click the File tab, and then click Options. Click Proofing. Under When correcting spelling and grammar in Word, make sure Check grammar with spelling is selected. Select Show readability statistics.

Get employees involved in building your brand and communicating with customers. Some companies shy away from having employees on Facebook while they are working. But creating a social media presence and then actually encouraging employees to connect with customers and communicate with them via Blog, Twitter, Facebook and LinkedIn is a terrific way to put a personal face and connection to your company. Before you jump into this strategy, be sure to create a social media policy and clearly outline what’s acceptable and not acceptable. Also be sure to create corporate identities for your employees i.e. Scott Simon, the NPR personality’s Twitter ID is @nprscottsimon.

Create a “Key Account Plan” for a Critical Customer. The most profitable customers are the ones who purchase across your product and service offering. Yet, many of us have customers who purchase one or two products or services – when they might actually have a need for (but not know about) the other products we have available. A key account plan puts your focus on your customer and all the different ways that you can serve them – not just with products, but with other value added services. Think of it as a marketing plan for that one target customer. If you’re still in a bind, you can download this strategic account plan template here.

Offer an insane guarantee. BEFORE your customer starts threatening to go to a competitor, create and offer an insane guarantee. Business owners are often afraid of offering guarantees because they think that they will lose money. But if you’ve done the customer net worth calculation (tip #1) you will see that offering a risk-free guarantee costs NOTHING compared to what that customer has already contributed to your bottom line.

Give them the star treatment. Identify your key customers and create a “concierge” team to service their every need. Have a member from key areas such as sales, marketing, service, production or technology serve as the customer concierge team. Give them a broad latitude and freedom to get things done. If this proves successful for you, think about making this an added service that other customer can subscribe to. I know one company that added $2 million straight to their bottom line by using this strategy.

Create an advisory board. Instead of wondering what new products or services would most interest your customer – get them involved in the development process by inviting them to participate on an advisory board. The investment in time and money in creating this engaged customer community will pay off in spades. Create events where you educate your customer advisory board on industry trends and then ask them the questions that keep you wondering if there’s actually demand for your idea. You can even keep these virtual with tools like GoTo Meeting that have chat screens, polls and the ability to create recorded sessions.

Monthly “Surprise Gift.” We’ve all heard of a book of the month club, how about a surprise of the month “gift” for your key customers. I’m not necessarily talking about the kinds of gifts that get you in trouble – maybe it’s something like “This month’s order of widget “x” was on us! Enjoy” Again, if you look at your key customer’s net worth to your business, isn’t it better to spend your money on keeping them loyal than throwing your money away on hopes of gaining a new customer? Reciprocity (along with quality and service) is a powerful loyalty tool.

LOVE them. When you love a hobby or another person you take an interest in what’s happening around them. Do the same with your customers. If you know that your customer contact is a fan of pink flamingoes and you see a postcard or figurine in a gift shop – pick it up and send it to them. It says that you know who they are and you listen and care. Do at least one nice, selfless thing for a customer because you love them.

This is a short list of 10 ways to keep customers. But YOU’RE somebody’s customer too. Why not take this opportunity to share what you’d want to see from the companies you do business with that would keep you loyal and get you singing their praises.

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Ivana Taylor is CEO of Third Force, a strategic firm that helps small businesses get and keep their ideal customer. She’s the co-author of the book “Excel for Marketing Managers” and proprietor of DIYMarketers a site for in-house marketers. Her blog is Strategy Stew.

Sharlyn Lauby writes: One of the keys to being a successful consultant is information – having it at your fingertips the moment you need it.

While some sources might come and go depending upon the projects I’m working on or the hot topics of the day, there are a few that I keep bookmarked and ready, because I seem to need them on a regular basis.

My top 11 suggestions for online resources that cater to the needs of consultants are listed here. This is just a starter list — add your own suggestions in the comments.

Stick To What You Do Best

Clients are paying top dollar for an expert, not someone who requires a learning curve. Consultants should be honest about their strengths and previous experience, including limitations. If you want to broaden your expertise beyond your sweet spot, learn by watching your client’s internal experts (on unbilled time), take courses, or trade services and advice with a fellow professional who’s already mastered that skill set.

Let Your Passion Show

It’s so obvious when you meet someone who truly loves what they do. They aren’t watching the clock or waiting to be asked for the next instruction. Clients love working with consultants who exude confidence and have a zeal for their profession. Consultants who are clearly “in the zone” will endear themselves to any overworked client by helping to anticipate needs and suggest creative yet cost-efficient solutions.

Communicate, Communicate, Communicate

Over the course of our business, there have only been a handful of times when we needed to swoop in and salvage a project. In almost every case the problem was simply mis-communication, or no communication at all. It is the consultant’s responsibility to over-communicate and provide regular updates in the manner most preferred by the client (email, phone, weekly 1:1, written report). There should be no surprises!

Proactive and Professional

Anticipating the needs of your client is an essential element of successful consulting that requires maturity and sensitivity. And moving-target clients who never have time to meet or non-communicative managers who can’t make decisions require heroic tenacity to keep the project rolling on track. Conversely, when a consultant will be unavailable while volunteering in a classroom or tending to other family needs (which is why consultants become consultants), clients should be notified well in advance of schedule conflicts. The best consultants remain professional all the time, offer great flexibility and accessibility, and limit the personal details.

No Prima Donnas

Contrary to some beliefs, consulting is not about the consultant. It’s not about showing off, whining, back-stabbing, making excuses or generating awe and admiration. It is about taking away the pain for clients and making them look great at all costs. Consultants who put their client’s needs first have long-term fans who happily and promptly pay invoices.

What do YOU think the best consultants do to become indispensable? Post your comments here. Next month, look for our thoughts on What Makes a Great Client?

The Wall Street Journal describes a real crisis for millions of freelancers in this country. Nearly half of all independent sole proprietors struggle to get paid by clients. Even projects that have been approved for payment.

What follows is an excerpt of their article, “Freelancers Fight to Be Paid.”

About 40% of freelancers had trouble getting paid in 2009, according to a survey released in mid-April by the New York-based Freelancers Union, a 135,000-member organization for independent contractors across the country in fields such as media, technology, and advertising. It was the first year the group asked the question on its member survey. And more than three out of four freelancers said they’ve had trouble getting paid over the course of their careers over the course of their career, according to organization.

The problem could become more acute as independent contractors emerge as a more central piece of the work force. The financial crisis and the resulting high unemployment thrust many professionals into the ranks of freelance workers, which may continue to grow despite signs of an economic recovery.

Littler Mendelson, a San Francisco-based employment law firm with 49 offices nationwide, predicts that in 2010 half of previously eliminated positions filled will be filled by contingent workers—such as independent contractors, freelancers, and temp workers—accounting for as much as 25% of the work force nationwide— based on client interviews and a survey conducted by a staffing analysis firm.

Since independent contractors aren’t covered by most federal employment laws, they don’t enjoy the same legal protections on wages as permanent employees, says a spokesman for the Department of Labor. If a permanent employee doesn’t get paid, federal or state labor departments can fine companies and even prosecute company executives. But independent contractors often have to turn to the court system, in most cases small claims, if they go unpaid.

To some, small-claims court can be more trouble than it’s worth, says Sara Horowitz, executive director of the Freelancers Union. Depending on the state, it will cost about $50 to file a claim and it can take months for a case to be heard. Even if a freelancer wins, small-claims judgments must be collected by the plaintiff.

Read the entire article here.

Mine Your Address Book: See who you already know who might be available. They might not have the exact skills and experience you need, but you already know them and may be familiar with their work. Keep in mind however, if the project is mission-critical, it’s usually not worth it to “try” someone just because they are available right now.

Post to a Free Job Board: Free is good. But you still need to screen for out-of-work wanna-bes who are applying to any and all posted jobs. KIT List and Craigslist are two examples of free job listings, but don’t be surprised if unemployed engineers who worked with marketing are responding to your post for marketing help.

Pay for an Ad: Professional organizations like PRSA and IABC have national and regional chapter job boards. But Bill Warren, former president of Monster.com, one of the leading internet job search sites, admits most employment websites are too expensive for clients and aren’t fruitful for applicants. Warren is starting from scratch on a new job search concept. The problem: it’s still an automated web-based system that relies on exceedingly busy clients to narrow the search using technology.

Search LinkedIn: You can do a search based on job titles and keywords in your geographic area, but it still takes time to check the availability of each candidate. Verifying the accuracy of their achievements and experience is also a daunting, time-consuming chore. And are you ready to bet your career on the consultant who says they wrote amazing speeches for C-level execs?

Call an expert to find your expert: Clients want to work with the absolute right people, not just a keyword match. And there is no software yet that can detect real human chemistry or B.S. Clients call high-touch agents like High Tech Connect who understand the difference between internal and employee communications, white papers and tech briefs, and ITIL, SOX and SaaS. Reputable agencies also take care of work statements, background checks, taxes and insurance; offer employee benefits and ensure timely and accurate payment to freelancers. And you only pay if the agent finds your perfect match.

Many expert consultants sign with agencies because they appreciate being able to concentrate on their projects without the administrative headaches and payment hassles. High Tech Connect is proud to represent 1300 of the nation’s best marketing and communications professionals — and to work with outstanding clients from coast to coast.

If you want to focus on your core business and can’t afford the time to find a perfect consultant on your own, drop us a line.

Click here for the original NYT post and to see more detail.

Suddenly, everyone wants to be a consultant. The battle for work heats up again and only the strongest and smartest will survive.

High Tech Connect has a unique vantage point with nationwide clients large and small, agencies and non-profits, new college graduates as well as seasoned industry experts, freelance contractors and newly unemployed perm candidates. We know what it takes to be successful in this challenging market.

Here are a few tips to help you stand out at the top of the candidate pool:

VERSATILE & PROACTIVE: Regardless of your background, the more versatile you are the more valuable you are to clients. You need to be equally strategic and tactical. Clients and employers are still extremely stressed and understaffed. There is little time for formal training or even project direction, so you must be proactive and assertive. Everything you do from the résumé, interview and follow-up needs to assure the client, “I’ll do whatever it takes to make you look great.”

SOCIAL SAVVY: Eighty percent of hiring managers are using LinkedIn to find candidates so if you haven’t yet posted your qualifications and recommendations on LinkedIn, you’re missing opportunities. And every project, from writing to exec comm, now requires some element of social media marketing. If you are still in denial about social media, you will no longer be relevant to today’s employers. High Tech Connect uses a proprietary database, LinkedIn and Facebook to find the right connections for clients because “perfect” candidates are moving targets more than ever before.

RUN A “REAL” BUSINESS: Being an independent consultant requires more than just printed business cards. You are a business owner and the IRS is increasingly auditing people who don’t correctly operate their sole proprietorship. They are also scrutinizing corporate clients for misclassified contractors and leveraging million-dollar penalties. Because of the risks involved with hiring consultants, more clients are requiring sole proprietors to incorporate and carry business liability insurance, or using placement agencies like High Tech Connect who will payroll you.

Finally, while you may be great at marketing a product or service for your employer or clients, you may not feel as comfortable marketing yourself. Take inventory of the tools and techniques in your marketing arsenal and don’t be shy to use them for your personal brand. Call a friend who can give you honest feedback or trade services with another communications colleague whose expertise augments yours.

There’s no time to waste. Projects and jobs are popping up everywhere and you need to be poised for success. Go get ‘em!

Have some of your own tips to share? Leave a comment here and share this post with your colleagues.

Author Seth Simonds says, “Generating leads for your freelance business isn’t easy but it doesn’t need to be like pulling teeth. Get out there, have confidence in your ability to provide good things to the world, and meet some people. The rest will become easier with practice.”

Take a look at his post 7 Tips for Marketing Your Freelance Business Offline for some simple ways you CAN build your own business with real people in everyday situations.

The San Jose Mercury News sheds light on the growing numbers of independent contractors at work in Silicon Valley, complex compliance issues for independent contractors, increased fines for corporations and tougher audits for contractors.

“Tech companies are nervously eyeing proposals in Washington to beef up enforcement and increase fines for violations of a complicated set of rules covering the use of independent contractors. The issue has special resonance in Silicon Valley, where thousands of engineers and programmers work as independent contractors for companies ranging from startups to some of the area’s tech giants.”

But the same issues apply to marketing and communications consultants, like those High Tech Connect represents. Anyone who wants to be a sole proprietor and start their own business providing services needs to understand the IRS has explicit rules about how you can work with your clients. Check out that IRS definition of Independent (Self-Employed) or Employee? here.

Intel said it uses “very few” independent contractors, preferring to hire employees. Cisco said it has “processes” in place to make sure its workers are “properly classified and managed in compliance with the policies set forth by the state and federal governments and their regulatory agencies.”

That’s one of the reasons companies like Cisco work with High Tech Connect to safely and legally employ independent contractors.

Ultimately, independent contractors are just as responsible for managing their business as a BUSINESS, and knowing how to operate within the laws and definitions is key to your success. Read the Merc’s article here.

Needle in the haystack

In today’s San Jose Mercury News, the former president of Monster.com, one of the leading internet job search sites, admits employment websites are too expensive for clients and isn’t fruitful for applicants. Bill Warren is now listening to his clients and starting from scratch on a new job search concept. The problem: it’s still an automated web-based system that relies on exceedingly busy clients to narrow the search using technology.

People work with people, not web-based search results. And there is no software yet that can detect real human chemistry… or b.s. Until then, clients will gladly pay high-touch firms like High Tech Connect to find exactly the right professional for the job.