In my last post, I discussed implementing and improving an IT strategy. I briefly overviewed the three parts of this strategy, which consist of obtaining:
1. A reliable hardware vendor with 24-hour onsite replacement extended warranties.
2. A good hardware specialist to handle hardware setup, wiring, and ongoing hardware issues.
3. A versatile software expert to resolve the wide range of software issues
Parts one and two are straightforward and not too difficult. Part three is a bear. It is difficult to find the right solution.
Entrepreneurs have spent thousands of dollars to resolve relatively simple software issues. The problem is that it is difficult to tell if an issue is simple or complex, since either can crash a system and create lingering problems.
The following story illustrates this concept:
An entrepreneur made an investment to install a state-of-the-art computer system, including the installation of a proprietary software program. After the system was implemented, it worked great--for two days. Then it crashed.
In a panic, he called the computer expert who had installed the system. He demanded that the technician get to the office immediately to get the system back up and running. Being down and offline was costing the business a lot of money.
The technician arrived in less than an hour. After walking into the office, he went straight to the computer department and walked around for a few minutes. He listened intently to the whir of the computers. He logged on to the network and checked the system configuration. Finally, he walked over to the server, listened to it and kicked it.
Immediately, the entire system jumped back to life.
Everything was working again. The entrepreneur thanked him and the computer technician left. Problem solved.
A few days later, the invoice came from the technician for services rendered. The detail for the service was as follows:
May 28, 2009
Description of Services:
Service call on computer network system $1,000.00
Payable on receipt.
When the entrepreneur reviewed the invoice, he was livid. He picked up the phone and called the computer expert and ranted, “What in the hell is going on here? You were at my office for five minutes and all you did was kick the server. I don’t think a kick is worth $1000!”
“Yes, you are right,” The technician replied. “The kick was $1.00. Knowing where to kick is $999.00.”
Often, when technicians repair or solve a problem, the issues may be relatively easy to resolve. However, because these technicians have more technical knowledge than you, it is difficult to know if you are getting value or being taken advantage of.
This is very much like an auto repair shop telling you that the noise is a $3,000 repair when in reality it is a minor part replacement. The mechanic says he can fix it for $2,000 now, but if you wait and it gets worse it will be $3,000 to replace the entire assembly. After you have paid the lesser fee, the noise is gone and you are grateful to have gotten off easy. Boy, are you glad to have a mechanic that is looking out for you! However, in reality, it was a $100 part and labor fix.
What do you do?
Recently, I had a software issue on my laptop. Having computer problems and trying to fix them yourself can be a waste of a lot of time and money. I had an $125 per hour ($45 per hour travel time) computer specialist on call. No question, he is good and has always resolved most (not all, as you will see) problems that I have had--for a price, and generally a big one.
In my next post, I will share with you how I got these issues resolved.
Friday, May 29, 2009
Technology Challenges II: Determining Value
Thursday, May 28, 2009
Technology Challenges
Every start up business has its share of technology challenges. Whether it is the selection of hardware, a database platform or a Customer Relationship Management System (CRM), the challenges are enormous and wrong decisions can be expensive. Just ask Jeff and Carol.
Once the hurdles of making IT decisions are resolved, there is an ongoing challenge to manage your IT infrastructure. As anyone that becomes dependent on their computer system knows, if the network (or even just a computer) goes down, the entire business can grind to a halt.
It is best to plan ahead in the event that there are network or computer problems. There are three levels of IT support to consider.
One is to select a reliable hardware vendor. Whether or not you select a major national brand such as Dell or HP, you need to acquire an extended warranty to cover hardware failures. Be sure to include an overnight, on-site replacement option.
The next step is having a good IT Hardware Professional in place. This specialist will assist you in setting up all hardware, including wiring the network (if you use a hardwired solution for your network).
Finally, you need a good software support solution to deal with a wide variety of software issues and problems. In another blog posting, I will share a few ideas on how to implement or improve on your existing IT strategy.
If you do not already have such a solution, it is best to think about it now so when the inevitable happens you will have someone to call that will get you back online as quickly as possible.
Don’t be like our friends below and have to go back to your manual systems.
Once the hurdles of making IT decisions are resolved, there is an ongoing challenge to manage your IT infrastructure. As anyone that becomes dependent on their computer system knows, if the network (or even just a computer) goes down, the entire business can grind to a halt.
It is best to plan ahead in the event that there are network or computer problems. There are three levels of IT support to consider.
One is to select a reliable hardware vendor. Whether or not you select a major national brand such as Dell or HP, you need to acquire an extended warranty to cover hardware failures. Be sure to include an overnight, on-site replacement option.
The next step is having a good IT Hardware Professional in place. This specialist will assist you in setting up all hardware, including wiring the network (if you use a hardwired solution for your network).
Finally, you need a good software support solution to deal with a wide variety of software issues and problems. In another blog posting, I will share a few ideas on how to implement or improve on your existing IT strategy.
If you do not already have such a solution, it is best to think about it now so when the inevitable happens you will have someone to call that will get you back online as quickly as possible.
Don’t be like our friends below and have to go back to your manual systems.
Tuesday, May 26, 2009
The Power of Small Steps
In 1977, Debbi Fields (the founder of Mrs. Fields Cookies) opened her first store and set hourly goals. As Mrs. Fields’ cookie empire grew, she was an innovator that kept the focus on small hourly goals. She installed a POS software system to provide real-time data on what her managers need to do on an hourly basis. If the managers were in danger of not meeting their goals, there were suggestions on what they could do to achieve their 60 minute goal.
Is there a lesson here? What are your daily and weekly goals for new customer contacts, call backs, etc?
Daily small steps lead to achieving larger goals.
Monday, May 25, 2009
Federal Aviation Administration Combines its Drug and Alcohol Testing
At this time, the FAA is working on a major revision of its drug and alcohol testing regulations. The FAA is not making substantive changes to its regulations. In a new ruling, the FAA is "reorganizing" the requirements for testing into a single part to simplify locating specific provisions and/or changes to their provisions.Given the complexity of that revision and the time needed to complete the rule making process, the FAA has concluded that it makes sense to pull existing regulations together in one place.
Jeff found a reference to new FAA regulations and thought it might be an opportunity but nothing substantial is taking place. However, being aware of the change will put you miles ahead of the competition in being out front in your industry knowledge.
Jeff found a reference to new FAA regulations and thought it might be an opportunity but nothing substantial is taking place. However, being aware of the change will put you miles ahead of the competition in being out front in your industry knowledge.
Friday, May 22, 2009
Generating Cash vs. Making Money
Cash flow is important. And, Yes, Cash is king. Several years ago I had a franchisee that was doing $100,000 a month in sales yet never seemed to have money to pay the bills. In a financial review, I sat down with him and asked some probing questions.
Q: Are you having problems collecting receivables?
A: No, we get the check or credit card at the end of the job.
Q; Do you have any bad checks or charge backs on credit cards?
A: No, it is rare that we have a problem with a bounced check or charge back. It happens but it is rare.
Q: How much staff are you running?
A: We run lean. I have a firm fix on overhead. I manage that very closely. The financial statements verified this because his over costs were in line with expectations.
Q: Do you have any inventory for jobs?
A: No, it is all cash and carry. We do not carry any inventory.
Q: Since you do not have any outstanding receivables, no bad debt, manage overhead and have not inventory, there is only one place that could lead to cash flow problems….weak gross margins.
Q: Tell me the process of bidding you jobs.
A: I figure out my costs and then double that price. We have a lot of competitors and we have to be competitive. We make money on the extras.
Q: Let’s take a typical job. Walk me through the process.
A: An average job is about $1000. Labor is ~$500. The formula is to bid the job at $1,000. We average about $200 on extras.
Q: What are you really making on this job, if you include all costs, including the load on payroll, credit card charges and an allocation for overhead? Go and figure this out and then let’s talk in a week.
When we go back together for the first time he figure out that his actual labor cost was not $500 but nearly $700 plus the 3% on credit card charges and with an allocation for overhead is actual gross margin was about $200. We discussed about raising a price in a competitive market and that it might not be possible to do this in every case but that if he continued to this pricing model it was only matter of time before he was out of business because he was not generating the cash necessary to cover costs.
After some work on the presentation and selling value vs. price he was able to get his margins to a respectable 45% from ~20%. While it is true he lost some business, his ability to upgrade some of his staffing and follow through and provide outstanding customer service put him on the growth trajectory to start expanding his business and working on the business not in it.
What are your gross margins?
Q: Are you having problems collecting receivables?
A: No, we get the check or credit card at the end of the job.
Q; Do you have any bad checks or charge backs on credit cards?
A: No, it is rare that we have a problem with a bounced check or charge back. It happens but it is rare.
Q: How much staff are you running?
A: We run lean. I have a firm fix on overhead. I manage that very closely. The financial statements verified this because his over costs were in line with expectations.
Q: Do you have any inventory for jobs?
A: No, it is all cash and carry. We do not carry any inventory.
Q: Since you do not have any outstanding receivables, no bad debt, manage overhead and have not inventory, there is only one place that could lead to cash flow problems….weak gross margins.
Q: Tell me the process of bidding you jobs.
A: I figure out my costs and then double that price. We have a lot of competitors and we have to be competitive. We make money on the extras.
Q: Let’s take a typical job. Walk me through the process.
A: An average job is about $1000. Labor is ~$500. The formula is to bid the job at $1,000. We average about $200 on extras.
Q: What are you really making on this job, if you include all costs, including the load on payroll, credit card charges and an allocation for overhead? Go and figure this out and then let’s talk in a week.
When we go back together for the first time he figure out that his actual labor cost was not $500 but nearly $700 plus the 3% on credit card charges and with an allocation for overhead is actual gross margin was about $200. We discussed about raising a price in a competitive market and that it might not be possible to do this in every case but that if he continued to this pricing model it was only matter of time before he was out of business because he was not generating the cash necessary to cover costs.
After some work on the presentation and selling value vs. price he was able to get his margins to a respectable 45% from ~20%. While it is true he lost some business, his ability to upgrade some of his staffing and follow through and provide outstanding customer service put him on the growth trajectory to start expanding his business and working on the business not in it.
What are your gross margins?
Thursday, May 21, 2009
CAMPA Website Project
Your web design development team has been getting great feedback on tweaks that need to be made to the website and suggestions on website content.
A question came up on the funding of this project. This is a classic example of the power of the CAMPA strategy. The region is able to stay ahead of our competition because we have the financial resources in reserve to tackle projects that impact everyone in the region. These are your CAMPA dollars at work!
I am confident once this new site is launched for each location that the return will be 10-20 times the cost in the first year.
A question came up on the funding of this project. This is a classic example of the power of the CAMPA strategy. The region is able to stay ahead of our competition because we have the financial resources in reserve to tackle projects that impact everyone in the region. These are your CAMPA dollars at work!
I am confident once this new site is launched for each location that the return will be 10-20 times the cost in the first year.
Tuesday, May 19, 2009
From the Field
Jill Chioino in hiring temporary lab staff and was given this website from her CPA. It is a good resource website for useful legal forms. An attorney would provide the same type of forms for hundreds of dollars.
http://www.free-legal-document.com/temporary-employment-agreement.html
When information like this is shared, it gives us an advantage over our competition.
http://www.free-legal-document.com/temporary-employment-agreement.html
When information like this is shared, it gives us an advantage over our competition.
Monday, May 18, 2009
National DOT Consortium Planned
Carol Hastings has been working with Tony Waters in Greenville to establish a DOT Consortium that all franchisees can use instead of managing their own consortium pool. There are many technicalities to manage in operating a consortium. None of these technical issues are difficult but it is more efficient and cost effective to have one National Consortium centrally managed. This will allow each of you to free yourselves up to focus more of your efforts on sales and marketing.
Stay posted for more details.
Now that you are actually struggling to stay out of the Black Hole of Operations (BHOO-pronounced BooHoo), you can begin to comprehend how BHOO can overwhelm everything else you are doing right in building a successful business. If BHOO takes over, your sales curve will slow and many times come to a grinding halt.
Stay posted for more details.
Now that you are actually struggling to stay out of the Black Hole of Operations (BHOO-pronounced BooHoo), you can begin to comprehend how BHOO can overwhelm everything else you are doing right in building a successful business. If BHOO takes over, your sales curve will slow and many times come to a grinding halt.
Friday, May 15, 2009
Burnout
Being an entrepreneur brings rewards and at the same time it also brings its own set of unique challenges. One of the most overlooked aspects of building a business is the necessity of preventing Entrepreneurial Burnout. Entrepreneurial Burnout is defined as the process of extinguishing the light of enthusiasm by tirelessly pursuing the dream of financial independence, one of the primary motivations most people take the entrepreneurial leap.
A true story relived time and time again by newbie entrepreneurs.
Jim Payson, a successful corporate executive, after considering many of the aspects of an entrepreneurial lifestyle, made a decision to become a franchisee in a service related business concept. After a year of struggling to adjust to the demands of an entrepreneurship lifestyle, he was finally able to get into an entrepreneurial groove and begin to understand three key factors of success and creating momentum for his business.
1. Sales and marketing is essential.
2. Controlling events vs. having events control you is critical.
3. Burnout is insidious slow process that drains away positive entrepreneurial energy.
After over eight months of non-stop 12-14 hour days six and seven days a week, the ability to hit the office with enthusiasm each day began to ebb. Nearing the two year mark, it was downright difficult to focus and stay positive. Not want to yield to his inner voice that he needed to take a much needed break and renew his batteries, he just kept plugging away.
Sound familiar. If it does not, it once you become an entrepreneur it will.
It is essential an entrepreneur take time off on a regular basis - at least every 12-18 months to recharge the batteries. In our business, that slower a sales time is a 6-8 week window between Thanksgiving and Christmas. Other times work too, it just takes planning. The ability to take time off is essential to long term success. However, taking time off can only become reality when three things happen:
1. There is at least one key person that you can trust the business with while you are away – for a day or for 2-3 weeks.
2. Planning. It is important to set things up well in advance, sometimes as long as 3-4 months in advance.
3. Willingness to actually make the commitment and do it (which is much harder than it seems).
My recommendation is that you make a plan to take time off, begin with putting things in place well in advance and then ‘just do it’. Recharge those batteries and return with vengeance.
Jill Chioino and John Choe began planning their vacation, which they are enjoying as you read this blog posting, a year ago, worked on putting in place a team and then even when things did not look like they could make it happen they just stuck to their plan and ‘made it happen’.
A true story relived time and time again by newbie entrepreneurs.
Jim Payson, a successful corporate executive, after considering many of the aspects of an entrepreneurial lifestyle, made a decision to become a franchisee in a service related business concept. After a year of struggling to adjust to the demands of an entrepreneurship lifestyle, he was finally able to get into an entrepreneurial groove and begin to understand three key factors of success and creating momentum for his business.
1. Sales and marketing is essential.
2. Controlling events vs. having events control you is critical.
3. Burnout is insidious slow process that drains away positive entrepreneurial energy.
After over eight months of non-stop 12-14 hour days six and seven days a week, the ability to hit the office with enthusiasm each day began to ebb. Nearing the two year mark, it was downright difficult to focus and stay positive. Not want to yield to his inner voice that he needed to take a much needed break and renew his batteries, he just kept plugging away.
Sound familiar. If it does not, it once you become an entrepreneur it will.
It is essential an entrepreneur take time off on a regular basis - at least every 12-18 months to recharge the batteries. In our business, that slower a sales time is a 6-8 week window between Thanksgiving and Christmas. Other times work too, it just takes planning. The ability to take time off is essential to long term success. However, taking time off can only become reality when three things happen:
1. There is at least one key person that you can trust the business with while you are away – for a day or for 2-3 weeks.
2. Planning. It is important to set things up well in advance, sometimes as long as 3-4 months in advance.
3. Willingness to actually make the commitment and do it (which is much harder than it seems).
My recommendation is that you make a plan to take time off, begin with putting things in place well in advance and then ‘just do it’. Recharge those batteries and return with vengeance.
Jill Chioino and John Choe began planning their vacation, which they are enjoying as you read this blog posting, a year ago, worked on putting in place a team and then even when things did not look like they could make it happen they just stuck to their plan and ‘made it happen’.
Wednesday, May 13, 2009
DNA Solutions Training Session
A CAMPA training session hosted by DNA Solutions is scheduled for Thursday, May 14th at 12:00 pm. Check your email for call in and log on information.
This is another segment of a series of training sessions designed to provide continuing education and training on a variety of topics.
This is another segment of a series of training sessions designed to provide continuing education and training on a variety of topics.
Tuesday, May 12, 2009
Primetime for AccuNews
Check your email for the first edition of AccuNews. You have until Friday, May 15th, to make comments and to get your email list to Amber for input into our database and email program. AccuNews will be sent on Tuesday, May 17th. The mailing schedule will be July 15th, September 15th and November 15th for 2009.
Remember the names and email addresses you need to provide are for clients and potential clients. The objective of the AccuNews Email Newsletter is to increase awareness and provide information that is useful to your clients. It is not geared to generate immediate business. Also, keep in mind that AccuNews is a living document and will change and evolve as we learn more about the needs of your clients. Your suggestions are solicited and encouraged.
Remember the names and email addresses you need to provide are for clients and potential clients. The objective of the AccuNews Email Newsletter is to increase awareness and provide information that is useful to your clients. It is not geared to generate immediate business. Also, keep in mind that AccuNews is a living document and will change and evolve as we learn more about the needs of your clients. Your suggestions are solicited and encouraged.
Monday, May 11, 2009
A Picture Speaks 1,000 Words
“I learned most of what I know from the school of hard knocks,” many entrepreneurs will quip when asked about their success. Some things can only be experienced, not learned from books or in the classroom.
I have known plenty garden-variety MBAs with a few years of experience who think they understand entrepreneurial businesses because they have successfully mastered case studies in a classroom. Yet, when the rubber meets the road in the ‘real’ world, they find out that they really didn’t know much of anything. Sometimes one must see it or experience it to understand.
I recently read about a new roller coaster ride in Ohio. This ride is one of the more innovative and challenging rides to experience. When trying to explain how exciting the ride is, I found it difficult. However, when I was able to get a few pictures of the ride, suddenly anyone that I showed these pictures to ‘got it’.
See for yourself….view the ride.
I have known plenty garden-variety MBAs with a few years of experience who think they understand entrepreneurial businesses because they have successfully mastered case studies in a classroom. Yet, when the rubber meets the road in the ‘real’ world, they find out that they really didn’t know much of anything. Sometimes one must see it or experience it to understand.
I recently read about a new roller coaster ride in Ohio. This ride is one of the more innovative and challenging rides to experience. When trying to explain how exciting the ride is, I found it difficult. However, when I was able to get a few pictures of the ride, suddenly anyone that I showed these pictures to ‘got it’.
See for yourself….view the ride.
Yes, some things can only be fully understood by experiencing.
Ask any entrepreneur.
Ask any entrepreneur.
Example:
A new roller coaster ride recently opened in Ohio. It is hard to put into words how terrifying this ride could be.
Here are few pictures that help provide a visual on what it might be like to take a thrill ride on this machine.
A new roller coaster ride recently opened in Ohio. It is hard to put into words how terrifying this ride could be.
Here are few pictures that help provide a visual on what it might be like to take a thrill ride on this machine.
The last picture says it all!
Friday, May 8, 2009
There is Gold in Them Thar Hills
Years ago, I was a franchisee in a small home repair franchise. I had four locations throughout California and eventually built a database of 40,000+ customers. After years of successful operations, I sold the business. Every so often I touch base with the franchisee of my former business to find out how things are going.
As we all know, the construction business at all levels has seen a significant downturn in the last year. This franchise operation was no exception. One of the key expense factors in this business model was advertising, which traditionally was in the neighborhood of 10%-13%. With the downturn in sales, maintaining this level of advertising was difficult.
I was in the area a few weeks ago, so I invited the franchisee out to lunch. As we discussed his business, it became obvious that he had fallen into the 'advertising tar pit,' where dollars are traded for new business. The 'tar pit' is where franchisees get stuck and become extinct, much like dinosaurs.
It is generally accepted that loyal customers are your best source of high margin sustainable business. However, it is a lot easier just to advertise for new customers than to focus on existing ones. Why? I really do not know, but this seems to be a common flaw in entrepreneurial thinking.
Because I understood the business model, I asked three questions as we talked.
1. How large is your database these days?
2. What are you doing to mine this database?
3. Can you afford to continue to advertise for new customers?
The answers to these questions were:
1. Nearly 60,000.
2. Nothing.
3. No.
I suggested that he stop advertising for new customers and focus exclusively on the gold in his database. I was amazed at the light that seemed to go off in his head. Market to existing customers? What a novel idea.
Now, we all may chuckle at this, but reflect on your own situation. Even though we are not a B2C business model that markets to individuals, we should all have a database of business prospects we have called on in the last year. If you keep notes on your sales activities, which you should be doing, you will find that there is gold waiting to be mined in these list of prospects.
As I mentioned in blog posting last week, it takes 7-9 contacts to finally secure a new client. How many contacts have you been making with your list of qualified prospects?
Get out there and begin gold mining.
As we all know, the construction business at all levels has seen a significant downturn in the last year. This franchise operation was no exception. One of the key expense factors in this business model was advertising, which traditionally was in the neighborhood of 10%-13%. With the downturn in sales, maintaining this level of advertising was difficult.
I was in the area a few weeks ago, so I invited the franchisee out to lunch. As we discussed his business, it became obvious that he had fallen into the 'advertising tar pit,' where dollars are traded for new business. The 'tar pit' is where franchisees get stuck and become extinct, much like dinosaurs.
It is generally accepted that loyal customers are your best source of high margin sustainable business. However, it is a lot easier just to advertise for new customers than to focus on existing ones. Why? I really do not know, but this seems to be a common flaw in entrepreneurial thinking.
Because I understood the business model, I asked three questions as we talked.
1. How large is your database these days?
2. What are you doing to mine this database?
3. Can you afford to continue to advertise for new customers?
The answers to these questions were:
1. Nearly 60,000.
2. Nothing.
3. No.
I suggested that he stop advertising for new customers and focus exclusively on the gold in his database. I was amazed at the light that seemed to go off in his head. Market to existing customers? What a novel idea.
Now, we all may chuckle at this, but reflect on your own situation. Even though we are not a B2C business model that markets to individuals, we should all have a database of business prospects we have called on in the last year. If you keep notes on your sales activities, which you should be doing, you will find that there is gold waiting to be mined in these list of prospects.
As I mentioned in blog posting last week, it takes 7-9 contacts to finally secure a new client. How many contacts have you been making with your list of qualified prospects?
Get out there and begin gold mining.
Thursday, May 7, 2009
B2B Telemarketing Anyone?
Sales and marketing efforts come in many forms: Networking, in-the-field cold calls, direct mail, SEO, AdWords, referrals and yes - telemarketing.
In a recent discussion with Mike Mix in Oceanside, he shared some of the successes he had with an 'in-the-trenches' B2B telemarketing effort. A brief overview paints an interesting picture:
About a month ago, Mike decided that he would give telemarketing a try. He developed his script, got leads from Sales Genie and then did the ever-so-difficult job of picking up the phone to start grinding out calls.
As expected, this is not the favorite activity of a sales oriented professional. However, he just bit his lip and continued to make dozens of calls. After over 70 calls, he had a handful of leads that he could follow up on.
Fast forward: Today, one of his highest volume clients is a blue-collar staffing company that provides labor to manufactures.
Now Mike is strategizing on how to leverage his new found expertise by bringing in some salespeople. Will he be able to train and manage sales personnel to accomplish what he has accomplished?
Stay tuned.
In a recent discussion with Mike Mix in Oceanside, he shared some of the successes he had with an 'in-the-trenches' B2B telemarketing effort. A brief overview paints an interesting picture:
About a month ago, Mike decided that he would give telemarketing a try. He developed his script, got leads from Sales Genie and then did the ever-so-difficult job of picking up the phone to start grinding out calls.
As expected, this is not the favorite activity of a sales oriented professional. However, he just bit his lip and continued to make dozens of calls. After over 70 calls, he had a handful of leads that he could follow up on.
Fast forward: Today, one of his highest volume clients is a blue-collar staffing company that provides labor to manufactures.
Now Mike is strategizing on how to leverage his new found expertise by bringing in some salespeople. Will he be able to train and manage sales personnel to accomplish what he has accomplished?
Stay tuned.
Wednesday, May 6, 2009
The Hits Just Keep Coming
Jill Chioino, Martinez AccuDiagnostics, landed the University of California at San Francisco (UCSF) for their student drug testing. The contract calls for onsite collections twice monthly for 15-20 students per collection.
The quoted contract pricing is $20.00 per collection plus the lab costs with no charge for the travel. The start date will be Sept 1, 2009. This contract will open up many other doors. Great job, Jill.
The quoted contract pricing is $20.00 per collection plus the lab costs with no charge for the travel. The start date will be Sept 1, 2009. This contract will open up many other doors. Great job, Jill.
Tuesday, May 5, 2009
AdWords/SEO Scores a Hit
Carol Hastings reports that they have secured a new client – Sacramento County Office of Education. As I always do, I asked, “Where did the lead come from for this client?”
“The Internet.”
As we continued the discussion, I noted several key pieces of information.
1. If CAMPA did not have the current Internet Marketing Strategy in place, this lead would have gone somewhere else. Over time, this new client alone will pay for Sacramento’s AdWords annual budget expenditure and then some.
2. Carol knew exactly where the lead came from. The Sacramento Office keeps their call log next to the phone. This type of information is critical.
3. When asked the reason for changing vendors, Carol said the prior vendor was “nickel and diming” them by charging for every little thing.
4. Finally, the main reason for the client making the change was the responsiveness and professionalism of their operation.
Chalk another one up for Jeff and Carol.
Great job, guys.
“The Internet.”
As we continued the discussion, I noted several key pieces of information.
1. If CAMPA did not have the current Internet Marketing Strategy in place, this lead would have gone somewhere else. Over time, this new client alone will pay for Sacramento’s AdWords annual budget expenditure and then some.
2. Carol knew exactly where the lead came from. The Sacramento Office keeps their call log next to the phone. This type of information is critical.
3. When asked the reason for changing vendors, Carol said the prior vendor was “nickel and diming” them by charging for every little thing.
4. Finally, the main reason for the client making the change was the responsiveness and professionalism of their operation.
Chalk another one up for Jeff and Carol.
Great job, guys.
Sunday, May 3, 2009
Friday, May 1, 2009
Information is Power
Our Internet Marketing Team monitors calls received from Call Source. Recently, several interesting bits of information surfaced.
The majority of missed calls during the normal business day call back within ten minutes. This tidbit of information is like a bright flashing neon sign telling you: Your next big client is saying, “Ignore me once, twice, but keep ignoring me and I’ll move on.”
To highlight this issue, a recent Call Source Report logged calls from the same person that called one of our locations 4 times during lunchtime before having their call answered on the 5th attempt. It is unknown if that 5th call was answered by a human or if the answering machine picked up and the client finally left a message. This data tells us that calls are not always answered and people are calling back multiple times to talk to someone in person.
By reviewing this type of data, each location can make decisions on when to staff up or change the procedures for answering incoming calls. Information is power.
Factoid: An acknowledged customer will hold on the phone to talk to someone in person, but an ignored customer will find someone else to do business with.
The majority of missed calls during the normal business day call back within ten minutes. This tidbit of information is like a bright flashing neon sign telling you: Your next big client is saying, “Ignore me once, twice, but keep ignoring me and I’ll move on.”
To highlight this issue, a recent Call Source Report logged calls from the same person that called one of our locations 4 times during lunchtime before having their call answered on the 5th attempt. It is unknown if that 5th call was answered by a human or if the answering machine picked up and the client finally left a message. This data tells us that calls are not always answered and people are calling back multiple times to talk to someone in person.
By reviewing this type of data, each location can make decisions on when to staff up or change the procedures for answering incoming calls. Information is power.
Factoid: An acknowledged customer will hold on the phone to talk to someone in person, but an ignored customer will find someone else to do business with.
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