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When meeting a client for their first business coaching session, I immediately establish who exactly their customers are. Unfortunately, this is an area in which many small businesses are lacking and are therefore in need of some business coaching. They simply do not know who their customers are. Or, if they do, they have no easy way to contact them. So to start, check your customer database to make sure that, for all current and previous customers, you have their:

  • Name
  • Address
  • Phone number(s)
  • Email address(es)
  • Purchasing history

You also may want to record the following:

  • The reason the customer contacted you in the first place
  • Ads or marketing promotions that the customer has responded to
  • Any other comments the customer has made.

Collecting Your Customers’ Contact Information

Of the information listed above, your customers’ contact information—especially their email addresses—are among the most important. Why? Because you can’t follow up with both current and former customers unless you have a way to reach them. And you can’t reach them if you do not possess accurate contact information for them, including information for low-cost contact methods like email.

Fortunately, even if you haven’t started collecting the names and contact information for customers, you can begin doing so right away—using techniques that require little or no cash outlay. These techniques include:

Just asking them.

One of the fastest ways to accumulate customer names and to user them to generate quick, no-cost sales is to simply ask for their name and email address — either at the time or purchase or when they call in — and then send them pre-written special offers via email that same day. If this makes you nervous, business coaching can show you different ways of doing this.

Requiring it.

Many customers will not want to provide their email address because they do not want to receive still more unsolicited email than they already do. You may be able to overcome this objection by stating that your service or billing policies require an email address and then given an honest reason, such as to alert them to account or policy changes or to inform them of special sales or offers.

Providing something of value that costs nothing to produce.

Another way to collect email addresses (one popular in business coaching circles due to its effectiveness) is to provide value to the customer in exchange for this information. For instance, as suggested above, let customers know that you will be supplying them with monthly coupons or new product announcements. Not only will your customers appreciate these reminders and savings, but you will probably generate many more sales as a result.

Offering something of value that only a few customers can receive.

Contests and promotions are a great way of collecting email addresses and other contact information because everyone likes to win a prize. However, if you take this approach, make sure you follow your state’s contest and sweepstakes rules.

Offering something free that costs nothing to deliver.

For certain groups of potential customers (particularly, professional-service customers), you can capture email addresses and other contact information by offering things of value that may take time or money to produce, but that cost nothing to deliver. Examples of such items are free reports or market analyses, free evaluations, or free consultations.

Be sure to stay tuned for more expert business coaching tips!

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What is business coaching? Nothing more than helping you set and achieve personal goals for your business. For example, your business coach would encourage you to ask yourself questions like the following. The answers will require some research.

  • How well can this media target my market with my message?
  • Which media will give me the highest response rate?
  • Which media can extend my message to the most people per marketing pound?
  • How easy will this media allow my market to respond to a request for free reports?
  • What is the cost per thousand (CPM)?

The question about CPM is an important one because it determines how much it’s costing you to deliver your marketing message to a specific number of people. Unless the message “pays for itself” by delivering pre-qualified prospects that are being converted to buyers, it’s not worth the money you’re spending on it.

Profitability Equation

There is a pair of simple equations that you can use to figure out your CPM:

Cost (divided by) number of listeners = cost per listener 

Cost per listener times 1,000 = CPM

Still confused?  To illustrate this point, I’ll use a radio buy as my example.  Let’s say your airtime for running a radio spot commands a fee of £5000, and the radio station’s data shows 50,000 people matching the age of your target market audience are listening during the time period that you are considering.

To determine whether this is a good buy for you, the first step is to compute CPM as follows:

£5000 for 50,000 targeted listeners = 10-pence per pair of ears = a CPM of £100

That’s just £100 to reach 1,000 highly targeted prospects.  It’s much less than you’d spend for any kind of printed marketing outreach where the expense would include printing and postage.

You can’t give your thumbs up or thumbs down to a media buy simply because it offers a low CPM. It needs to return a high rate of return – enough qualified prospects that become buyers – that the profits you generate from the ad offset its expense… no matter how minimal.

The CPM calculation is the best mathematical equation you can learn. With it, you can do the same profitability calculation for any media. This will help you answer the question, “Which media can extend my message to the most people per marketing pound?”

However, it still doesn’t answer the question of how effective it will be to meet your objectives.

For example, if your objective is to distribute free reports as a lead-generating tool, then newspapers are a good choice because you can show a picture of the free report and the phone number is right there. This is much easier for a prospect than trying to memorise your number from a radio ad while driving to work.

I hope the question of what is business coaching is now not such a mystery. Feel free to contact me with any questions about this or any other topics related to your business goals.

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