As the owner of a business or someone involved in marketing, you should regularly ask your clients for feedback.

2 REALLY GOOD reasons why YOU need client feedback:

Firstly, it allows you to spot opportunities that you would have missed AND avoid problems before they happen.  For example, if you ask your clients what additional services they would like you to offer, and a uniformed reply comes back – you have just identified a whole new income stream for your business!

Secondly, it can help you spot if a particular client is unhappy or thinking of leaving!  Clients who are disgruntled are often among the first to reply to feedback requests!  By listening to their problems and resolving them, you can reduce the number of clients you lose. This is an excellent way to quickly improve client retention. Client retention, sometimes called ‘attrition’ should be a part of every business’s marketing mix.

A simple email, asking clients what they think about some of the key elements of your services is all you need. Ask them to score each section on a scale of 1 to 5 and see what comes back.  Always provide a section for them to leave a comment, idea or suggestion.

The answers are often very illuminating – AND ALWAYS useful!

At the recent Olympic Games, every athlete knew exactly what the ‘personal best’ figures for each of their competitors was.  That’s because it’s almost impossible to succeed at anything, unless you know what you are competing against!

Equally, to compete successfully in business, you need to research what you are marketing against!  We call this research Competitor Analysis.  So, I have a question for you:

“How much do you know about your competitors and what they offer?”

In my experience, most small and medium-sized businesses know very little about the quality of their competitor’s services.  They will often believe that their own service is very good, but when you accurately compare it against their competitors, it’s generally no better than average.

I am convinced this lack of Competitor Analysis is why there are so many average services out there!  After all, no one sets out to be ‘just average’.

Businesses then market their services, thinking that what they offer is great value – and wonder why they get very little positive response! It’s not always the quality of a small business’s marketing that’s letting them down, but the ‘attractiveness’ of what they are offering!

In order to motivate someone to switch from one provider to another, there must be a compelling reason for them to do so.  This means you need to know what your competitors offer, so you can make YOUR services more valuable than theirs!

Competitor Analysis explained

Competitor Analysis is where you analyse what your competitors are offering to the marketplace.  This allows you to see how YOUR services stack up against the other services being offered to your potential clients (and existing clients!).  As part of your Competitor Analysis, you will need to find out things like; what kind of guarantees your competitors offer, their payment terms, their prices, the range of services they offer and their opening hours etc.

I spoke recently with the owner of a recruitment company, who told me that his main competitors all offered a very poor service, compared to his.  I asked how he knew.  He replied that whenever a client moved from a competitor to him, they always said what a poor service they had just received!  He was basing his ‘research’ on what these non-typical, disgruntled people said!

You cannot build your competitor research, based on the jaundiced opinions of anyone!  You need to know what the reality of the situation is, because THAT’S what you will be marketing your services against!

I have a friend who sells homes in London, which market for over £2,000,000.  She found her clients were often hesitant about improving their home before marketing it, thinking it was already ‘good enough’ to quickly attract a buyer.

So, she started taking new clients to view a selection of homes in the same price range as their own – so they could clearly see what their home was competing against.  Universally, this totally changes their opinions and they are happy to make any required improvements.

Most businesses are like the home-owners who think that their home is already great value, without knowing what the others are like.  This can prove commercially fatal – especially in today’s challenging economy!

Some ideas to start your competitor analysis

Competitor Analysis on the Internet

Depending on the industry you are in, you can often get a mountain of extremely valuable information by visiting a competitors’ website.  If you are in retail, for example, you will immediately be able to see; their product lines, prices, delivery times, guarantees etc.

No matter what industry you are in, most websites will have an ‘about’ page, which tells you all about the company.  You should also be able to tell very quickly what each company thinks it’s best at – because people sell their services based on their strengths!

You will also be able to tell in seconds, if they have had their website professionally copy written or not.  This is a key indicator as to how seriously they take their marketing.

Conversations with THEIR clients

Whenever you meet someone, who is using the services of one of your competitors, ask them how well they are being looked after.  This is a more accurate measurement of the quality of a competitor’s services, than the earlier example; where people with an axe to grind were relied upon.

An existing client is someone who can generally, be seen as having an ‘average’ or ‘typical’ experience of a service provider.  If they say their service provider is great or awful – ask them; “In what way?”  Then listen!

Avoid conversations with suppliers

I have found conversations with suppliers, who also supply one’s competitors, to be close to worthless!  Also, be extremely careful what you say to anyone who gives you too much information.  As my mother used to tell me; “those who bring news, carry news!”

After your Competitor Analysis – What next?

After your Competitor Analysis, take a good close look at your own business and find ways to beat them!  Don’t just try to match them – look at how you can go one better.  If you cannot offer a better service to someone than they already get – why on earth should they switch to you?

For example, would YOU go through all the hassle of switching from your current; accountant, insurance broker, bank or recruitment provider; for a service that’s no better than you already receive?

Of course not – and NOR WOULD ANYONE ELSE!

Only when you have developed a service that you know, with confidence, is better than your competition, are you ready to market it. When you have a great service, and you get that message in front of potential clients with compelling marketing, the sky’s the limit.  You can achieve anything!

If you run a business and you want people to call you to enquire about your services or buy from you – NEVER use premium rate numbers for your sales phone line or main phone line!

Here in the UK there are some misguided small businesses who (unbelievably) only offer a premium rate number for people to call them on!

NUMBERS THAT BEGIN WITH EITHER 087* OR 084* are a VERY bad idea for your business – as they place a hurdle between your potential clients / customers and your products or services.

Why are premium rate numbers such a bad idea?

Because, no one wants to pay a premium rate to call YOUR business to enquire about your services!  Why should they have to pay you, to be sold something – come on, get real!

I have variously heard it estimated that using any premium rate number for your main phone line or your sales / enquiries line, can lose you between 60% and 80% of ALL enquiries and sales.

Not only will people like myself refuse to use these rip-off numbers, many companies have these numbers barred from their phone system – so their employees can not actually dial these numbers, even if they wanted to spend money with you.

Also, if you call these numbers from a UK mobile phone, it can cost a fortune (hardly likely to encourage people to enquire about your services!  Everything your business does should make it as EASY and attractive as possible for people to call you.  The message you send out by using a premium rate number is 100% negative – it’s a money-grabbing scam.

Some people REALLY HATE premium rate numbers – Look!

There is so much resistance to businesses screwing people with these rip-off numbers that a wonderful website has come to the consumer’s rescue; www.SayNoTo0870.com If you need to dial a company hiding behind one of these awful numbers, check out www.SayNoTo0870.com and see if there is a regular price alternative.

If you are serious about winning business – drop the use of premium rate numbers for your sales line or your main phone number.