Volume 16 Number 1 • 2003
GROWING CUSTOMERS:
CRITICAL CONSIDERATIONS FOR SMALL
ENTERPRISES OWNED BY INDIVIDUALS WITH DISABILITIES
By Cary Griffin and David Hammis,
The University of Montana Rural Institute
Over the years it has become more and more evident
that some folks are born with the gift of promotion, while others
struggle to “sell” themselves and their businesses
to the general public. After years of training job developers
and employment specialists, we’ve decided there must be
a “marketing gene” that determines success or failure
at sales. Certainly, human services attract a fair number of
people who understand promotion and marketing, but few of us
will ever know the luxury of a true marketing budget. Still,
many non-profits and micro-enterprises understand how to squeeze
attention-getting efforts from their checkbooks. These low-cost/no-cost
approaches to self-promotion are critical to the small business
start-up, and to any enterprise that needs to expand beyond its
initial customer base.
Identifying Customers
One of the first steps prospective business
owners (or rehabilitation staff offering support) must take is
to identify their customers. Typically, businesses have both
primary and secondary users of their product or service. For
instance, most coin-operated carwash patrons use the facility
to clean the family sedan. Advertising and promotion is most
likely geared to this crowd, with typical approaches being discount
coupons, signs on the building or placed along the major routes
nearby, and perhaps some local television or radio ads. Once
a customer base is established and business growth slows, new
advertising pushes are needed to battle market competition or
to attract those new to car ownership. Another potential income
producer, often overlooked by business owners, is the secondary
customer.
A secondary customer is someone who has a different
need or use for the product/service being offered. In the case
of the carwash, for instance, secondary customers may be tractor-trailer
drivers who need to clean their big rigs. Other secondary users
are fleet managers for the local school bus concession, the police
and fire departments, the local cable TV company that owns 30
pickups, the phone or public utility companies that keep a hundred
trucks and vans in service around the clock, or even the local
cattle ranchers who need to clean out trailers with the high
pressure equipment found in car washes. Perhaps boat owners need
to wash down their units after a day of fishing on the local
lake. Advertising campaigns as simple as the direct mailing of
discount coupons to these user-groups is enough to attract new
customers. Putting fliers under windshield wipers in the parking
lots at cattle auctions and truck stops can generate new business.
A personal visit or a letter of introduction to the local phone
company manager or the Chief of Police might also bear fruit.
Along these same lines, the business owner should
examine peak business times. For instance, if a small town taxi
owner is really busy taking people to the grocery stores in the
morning and early evening, but idle a good part of the rest of
the day, consider who might need a ride mid-day or late at night.
A call to local doctors’, dentists’, and optometrists’ offices
might reveal that many patients find it hard to arrange family
rides home mid-day. If the health-care personnel know the taxi
is an option, perhaps there is a small market available. Also,
the bar and nightclub owners can be given cards or fliers to
arrange for the “tipsy taxi” to pick up over-indulging
patrons late at night. The local police might also help market
to this secondary user as well. Perhaps the bar owners might
actually pay for this service to avoid the risk of losing their
liquor licenses. A persuasive salesperson can make that sale.
Suppose one of the small businesses locally
is a bakery. Many bakeries make their bread and rolls first thing
in the morning and their ovens sit empty all afternoon. Is there
anyone locally who bakes a specialty product, such as wedding
cakes, who might pay to use the equipment in the afternoon one
or two days a week? A call to the local Small Business Development
Center would readily yield a list of folks in need of bakery
or kitchen space for their business.
New Customers are Key
Marketing is not generally a passive activity.
It must be planned and budgeted for and made an essential function
of the business operation. A business that is not adding new
customers is at risk of dying.
The key is for the business owner to think about
other customers relentlessly. Ask questions of current customers
about how they use the product or service, unique ways they adapt
it, or other needs they have that might be related. “Jane” in
Colorado started a new business teaching computer skills and
performing minor repairs in people’s homes. There are many
new users of computers who cannot or do not want to attend public
classes. In discussion with her customers concerning how they
use their machines, she discovered that several folks were writing
and formatting club newsletters. She also found that most of
her customers did not have time for, enjoy, or have the skills
for desktop publishing. She added newsletter production services
to her business and now has several well-paying accounts. Word
of mouth continues to spread about her business. With the help
of Colorado AgrAbility, the Rural Institute, and the local Vocational
Rehabilitation (VR) office, she was operating in the black in
under a year’s time. She is growing her business by making
sure she connects personally with her customers and keeps seeking
related products/services that are consistent with her core interests,
but that also expand her operations and profitability. She’s
marketing and selling as a natural part of her daily job. She
has no marketing budget per se; she is a walking advertisement
for her business. And, her newsletter business especially provides
her the opportunity to add something like, “Designed and
Formatted by Jane’s Computer Service, (303) 555-6767.”
Home Depot’s very successful market positioning
strategy is somewhat based on attracting a secondary customer.
The traditional hardware store is designed for the weekend-warrior:
a man with some do-it-yourself skills. An old style hardware
store is not designed for novices or folks with lots of questions
or little experience with power tools. Women do not make up the
sales force. Compare this to the Home Depot. Upon entering one’s
eyes are directed to the brightly lighted model kitchen display,
which is right next to the interior design department. Each of
these sections has an open help-desk with free computerized design
services. Lots of women work at Home Depot and all the sales
staff are there to help. There are no stupid questions at Home
Depot. There are classes available for novices, and seminars
for children so mom and dad can go about their business without
interruption. Home Depot guarantees satisfied customers by attracting
the whole family.
Sales & Marketing Guidelines
Small businesses grow or die. Reaching customers,
satisfying them, and then attracting more customers creates profitability.
The old rule that 80 percent of a company’s business comes
from 20 percent of its customers is true, but it’s also
obvious that the other 80 percent is important too. We at the
Rural Institute have assisted well over 200 small businesses
owned and operated by individuals with disabilities, and we’ve
learned that marketing and sales is one of the most difficult
concepts to teach and support. Perhaps it is an intuitive skill,
but people can learn by following a few rules and by concentrating
on on-going customer development.
1. Match the Customer
and the Product. Anyone
selling a product or service must understand the features and
benefits and how those characteristics satisfy the needs of the
buyer. The sales person matches the needs of the customer with
the product/service.
2. Sales are built
on relationships. Customers
need to know you care and that you are listening. Helping the
customer solve a problem with the product or service is critical.
3. Listen instead
of talking. Sales is about
smooth listening, not smooth talking. Let the customer tell you
what they need.
4. Prospecting never
stops. Many large companies
attract customers through advertising and product placement.
Small companies often rely on meeting and greeting new potential
buyers. Building a network of friends and business associates
generates new customers. Surfing the Internet, attending business
events such as Chamber luncheons, and joining a local service
club such as Rotary are all ways to identify new prospects.
5. First impressions
matter. “Cold calls” or
sales calls made without an appointment are rarely appreciated.
A “warm call” approach is more acceptable. A call
is warmed up by sending out a letter of introduction, meeting
a prospect at a business or social function, and following up
with a phone call later, or by sending over product literature
with a business-style greeting card.
6. Use Marketing
Materials. Many products/services
should have related printed matter that explains their function,
features, and benefits. These are known as “leave behinds.” People
enjoy reading about or seeing pictures of products they are interested
in. Leave behinds like brochures, fact sheets, or even short
video tapes allow customers time to decide to buy without feeling
pressured. Make sure the materials indicate a toll free phone
number or easy-order process.
7. Handle objections
smoothly. Potential customers
may doubt a product’s value or usefulness. Endorsements
or product comparisons help buyers decide by providing information
that anticipates and negates stated and unstated concerns.
8. Sell Add-Ons. Add-ons are accessories or
options for the product/service. At the time of sale is the best
opportunity to sell a value-added service or item. A most common
add-on is identified by the phrase, “do you want to supersize that for only a dollar extra?” The customer is buying anyway,
so catch his momentum. Floor mats are not standard in many automobiles
because dealers know that once a buyer is committing to spend
$10,000 another $100 (for $25 worth of mats) is an easy sale.
A lawn mowing service might sell gutter clean-out for another
$20, and a bagel shop might add some flavored cream cheese for
another fifty cents.
9. Maintain contact. Few sales are final. Contact
the customer and ask how she is enjoying her new stereo, or the
next time he comes in for a sandwich ask him how he enjoyed the
last one. Show customers their opinions matter.
10. Just do it. Almost nothing compares to the
stress of anticipating a sales call. Selling can be hard and
scary work. Jump in, make the calls, mail those brochures, shake
the hands. Many successful sales professionals set a quota of
calls per day or week and keep a database of prospects with call-back
dates. Analyze your style and identify where the sales process
is weak and keep practicing.
Very few products or services sell themselves.
If a business owner is more interested in managing the business
or producing the product and delivering the service, then hire
a salesperson or a sales representative, or use the web to sell
the item just as 150,000 Ebay-retailers do. Regardless, as the
old saying goes, nothing happens until someone sells something.
Cary Griffin and David Hammis are the authors
of Making Self-Employment Work
for People With Disabilities,
available soon from Brookes Publishers (www.brookespublishing.com).
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