Wednesday, January 31, 2007

MAGIC NUMBERS FOR BUSINESS

Did you know…?

  • A change of just 5% in customer retention can produce a staggering 125% change in profits.
  • 68% of customers leave because of perceived indifference.
  • Most businesses spend 6 times more to attract new customers than they do to keep the ones they've got.
  • Each unhappy customer tells at least 9 others about their bad experience.

Sobering stuff.

While you're in business to make a profit, managing a business only for profit is like playing tennis with your eye on the scoreboard. The 4 purposes of your business are to:

  • Create new customers
  • Keep them coming back
  • Turn them into advocates for you, and
  • Have fun!

Don't aim to satisfy your customers. Aim to delight them!

As a member of the Principa Alliance, an international network of business consultants, my goal is to help business owners and managers build a stronger, more profitable business and enjoy a higher quality of life as a result.

When businesses work with a Principa Alliance member to improve their business, they gain access to a global knowledge base and a wealth of consulting experience that is so much more powerful than any one firm could offer.

In short, a Principa Alliance member can, and will, do so much more for a business than just 'keep the score.'

Thursday, January 25, 2007

Benchmarking - why do we do it?

Benchmarking is a careful search for excellence - taking the absolute best standard and trying to surpass it - and not many businesses are likely to succeed in the new millennium unless they are willing to do just that.

The experience of all businesses who’ve tried it shows that you can enormously improve quality in service and efficiency if you:

  • Find examples of people or businesses anywhere in the world who do a truly excellent job in performing each of the jobs involved in their business.
  • Study those examples with an open mind and a teachable spirit.
  • Never assume that you’ve either found the best or become the best yourself.

Keep searching constantly for better ways.

Remember to ask yourself: “CAN I?” - Constant and Never-ending Improvement.

It’s a simple recipe. And a recipe for enormous power.

To find examples of businesses with excellent business practices, look for:

  • Businesses that have won the Malcom Baldridge Award
  • Businesses recognized by JD Power & Associates
  • Businesses with higher than average earnings
  • Businesses that are established leaders in their industry
  • Businesses that are known for innovation and creativity

As a member of the Principa Alliance, an international network of business consultants, my goal is to help business owners and managers build a stronger, more profitable business - a business that is looking to constantly improve. In turn, these owners and managers enjoy a higher quality of life as a result.

When businesses work with a Principa Alliance member to improve their business, they gain access to a global knowledge base and a wealth of consulting experience that is so much more powerful than any one firm could offer.

In short, a Principa Alliance member can, and will, do so much more for a business than just keep the score.

Wednesday, January 17, 2007

Club V

Working with your CPA just got easier.

The power of the Internet is making relationships with your CPA more successful.
Collaboration suites are easy to use, and make great customer portals.

Forward thinking CPA firms are discovering many unique and creative ways uses for customer portal technology to solve real business problems and are turning their portals into opportunities to provide better service to their customers. CPAs and their customers work together in entirely new ways. They have the ability to share documents, back-up files and draft returns and financial statements.

Wherever and whenever you and your CPA need to work – in the office, on the road, even around the world, the portal keeps everyone in touch. Everything you and your CPA need is accessible from anywhere. Even remote workers will stay connected – just like they’re in the same office.

Leading edge CPAs are taking the customer portal to the next level by creating Virtual Firms. They bundle access to the portal with other traditional and non-traditional services. They enhance the customer portal experience with:

  • Newsletters
  • Alerts
  • Personalized messages
  • Articles
  • Profit boosting ideas
  • Videos
  • Conducting opinion polls
  • Discussion forums
  • Scheduling meetings
  • Creating shared business information databases
  • Posting web links
  • Making announcements
  • And even web meetings and seminars

At a time when their customers are demanding service flexibility and 24/7 access, CPAs who are members of the Principa Alliance are using Virtual Firm to provide a new “on-demand” way of doing business.

Wednesday, January 10, 2007

Delivering WOW Service

Tom Peters said it best in his book In Search of Excellence: “The best kept secret in the global economy is this: When your service is awesome, you get so stinking rich that you have to keep buying new bags to carry all the money home.”

Notice he didn’t say that your service should be good, or great, or mediocre. Or that your customers should be satisfied. He said, “When your service is AWESOME.” The kind of service that makes people sit up and take notice. The kind of service that makes people talk about you.

Look at the businesses and companies that have achieved truly great things. Businesses like Disneyland, McDonald’s and Virgin have made big names for themselves by delivering the type of service that qualifies as awesome.

That’s easy for them, you say? Well, it’s easy for you too.

Many small businesses have carved a niche for themselves by delivering more than expected to their customers and delighting them in the process.

Notice again I didn’t say “satisfy them” - I said “delight”. Why? Because delighted customers talk. Oftentimes about your business.

If you doubt the value of delivering awesome service, think about how much business is obtained through word of mouth. Many business owners, when asked where their business comes from, answer with “word of mouth.” If that’s the case, how can you capitalize on that to get more people referring business to you?

The easiest way, by far, is to impress your customers so much that they become advocates for you.

The way to do this? Give them WOW service!

Service that gets your business talked about. It’s a way to create absolutely free publicity for you—and the good news is that it doesn’t cost you a penny more to give ‘WOW’ service than it costs to give ‘satisfactory’ service.

CPAs whi are members of the Principa Alliance are not your average advisory firms. Far from it. They do so much more than just “keep the score.” These firms will work with businesses to identify areas in the business that are not realizing their full potential and help improve them to build a stronger and more profitable future. A firm’s membership in the Principa Alliance means that customers have access to the collective knowledge and expertise of an international network made up of hundreds of professionals who specialize in consulting to small and medium-sized businesses by providing services such as the Team Advisory Board (TAB). Everyday team members are on the front line of customer service. The TAB workshop is a facilitated interactive session designed to tap into a team’s collective experience and develop a business strategy to create WOW service.

Saturday, January 6, 2007

Happy New Year

HAPPY NEW YEAR!

The new year has always been a time for looking forward to the coming year. It’s a time to reflect on the changes we want (or need) to make, and resolve to follow through on those changes.

Several weeks ago, a book came across my desk. 212° The Extra Degree captures the essence of excellence in an unforgettable way… At 211° water is hot. At 212°, it boils. And with boiling water, comes steam. And steam can power a locomotive. The one extra degree makes the difference.

I think you will agree that this simple analogy reflects the ultimate definition of excellence. Because it’s the one extra degree of effort, in business and life, that can separate the good from the great.

This book can help you create a truly excellent 2007.

This is the perfect time to commit to doing one thing everyday to improve your business. You can start by having GamePlan™ calculate the substantial results made possible by making just small (one degree) changes in your business.

If you need help in applying the 212° concepts to your business, please think of using a Principa accountant to be your business coach. me. A member of the Principa Alliance can work with you to identify areas in your business that are not realizing their full potential and help you improve them to build a stronger, more profitable future. This is a step-by-step process that includes creating a strategic plan, plan implementation, systems development, customer service and team training, and ongoing monitoring and management advice.

For more information about the 212° book and to view the video, visit: www.SimpleTruths.com