Your EnterQuest Bulletin - Issue 177
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| Thought for the week: "Trouble is only opportunity in work clothes." Henry J. Kaiser |
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In this week's issue:
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How to overcome buyer's remorse
It's a fact of life that people have a built in scepticism and natural tendency to be disappointed automatically about things. Of course that may sound strange, but it's true.
Think about the number of times you complain versus the number of times you sing praises about somebody or something.
Without being too scientific, you'll probably find that complaints outnumber praises by about 10:1. If you've ever read Kenneth Blanchard's The One Minute Manager, you'll know that managers have a natural tendency to manage by exception - they will point out people's faults before they 'catch' anybody doing something correct.
Consumers are exactly the same. After they purchase a product, they will usually feel slighted in one way or another (psychologists refer to this as cognitive dissonance). And this gets worse with the size of the purchase.
Just think about the number of times you've made a major purchase, for example a new hi-fi system, and feel that lurch in the stomach when you reach for your credit card or chequebook to pay for it. And then a few days later, you see an even better system in another shop for less money than the one you've just bought.
This 'after-sale comparison' is a natural reaction that everyone has, and is a manifestation of buyer's remorse. Secretly, people are scared that they made a wrong decision and that they could have found a better deal elsewhere.
Now that you understand this big cause of returns and customer requests for refunds, it's a lot easier to prevent it from happening.
The key to overcoming buyer's remorse is to reassure your customer that they have made the right decision buying your product or service, and that they have made an intelligent decision to do business with you.
But this is where the majority of small business owners fall flat on their faces - they just aren't proactive about reassuring their customers that they made the right choice.
If you know it's highly likely that your customer is going to suffer from buyer's remorse, you need to take positive steps to overcome this before it eventually overcomes your customer.
Anyone doing business in the 1980s will have been exposed to the 'quality movement' mainly brought about by Japanese competitive dominance in many industry sectors. In a book called Quality Is Free, author Philip Cosby argues that the investment you put in upfront to ensure quality more than pays for itself with good products and happy customers. Hence, quality is free.
The same goes for refunds and returns. The more time and effort you invest in the moment your customer purchases your product or service, the lower the return and refund rate will be.
Here are five very quick and easy ideas that anyone can use to dramatically reduce buyer's remorse and the consequent return and refund rate:
1) Include a special note with your product that thanks your customer for their business and congratulates them on buying the best product or service available.
2) Send an immediate letter or e-mail reassuring your customer that not only have they bought the best product, but that they will also receive the best personal after-sales service any time they need you.
3) Include an extra surprise gift. Try to surprise your customer by putting in even more than you promised, such as a low-cost gift or extra, which will help you 'over-deliver' for your customer.
4) Give them a phone call to thank them and also to give them tips and remind them about the excellent customer service they can expect from you at all times.
5) Remind them about your unconditional guarantee, which in the vast majority of cases will help reduce the risk your customer feels they are taking when considering buying from you.
These are just a few ideas to help reduce buyer's remorse. But there's one more important thing to bear in mind. If a customer ever does ask for a refund, give it to them. Don't delay them and don't question their request. Give them their money back promptly and with a smile, and ask them if there's anything else you can help them with. Because one day they may decide to buy from you again.
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For hundreds of practical tips and techniques about finding new customers, increasing sales and growing your business, check out the UK Small Business Marketing Bible. |
Getting the most out of Google
There are several tricks that the Google search engine can perform beyond plain, everyday searches which will make your results more relevant.
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Use it as a calculator and converter: type in "20 dollars in pounds" and click search, and Google will tell you that $20 is equal to £10.69. You can also do this with other calculations - typing in "3 kilometres in miles", for example, will tell you that 3km equals 1.86 miles.
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Get definitions of difficult words: Google's define tool is really useful if you happen upon a word or phrase that's got you stumped. For example, type in "define:viral marketing" and see about 50 definitions of viral marketing.
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Have you ever wondered who else has a link to your website? Try searching for your site name using "link:www.yourwebsitename.com", and you might be surprised at the results.
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By enclosing your search terms in inverted commas, Google will only look for exact matches of the words in that order.
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You can opt to have Google return only UK sites in your search results by selecting 'pages from the UK' before carrying out a search.
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You can personalise the Google homepage to include a range of features - from news and business headlines to a motivational thought for the day and information about your local weather.
Check out Google's own summary and cheat sheet about its main search features for more ideas, and visit the Google Guide for a comprehensive tutorial on using the search engine effectively.
Understanding Bed and Breakfast business rates
Bed and Breakfasts (B&Bs) are one of the most popular business ideas in the UK - you have the premises and a lot of the equipment already, so starting a B&B can be an easy and relatively quick way of getting into business.
But are you sure about whether or not you will be liable to pay business rates?
In general, you won't have to pay business rates if:
- The property is your main residence.
- The B&B is a secondary use for the premises - i.e., it's a domestic residence first and foremost.
- You plan to accommodate no more than six people at any one time.
You'll become liable to pay business rates, however, if:
- More than half your property is used for B&B at any one time and it becomes a 'substantial' enterprise.
- Significant alterations have been made to the property for the benefit of guests, such as the installation of en suite bathrooms.
- You intend to accommodate more than six people at any one time.
There is more information about business rates for B&Bs on the My Business Rates website.
For further advice, contact your local Valuation Office and see our guide to understanding business rates for more practical information. And if you are interested in this business idea, check out our guide to starting up a B&B for more details.
Home business ideas
PowerHomeBiz.com profiles hundreds of business ideas that can be run from home. Its current top ten focuses on ventures that can be operated on a part-time basis, perhaps at weekends, and based entirely at home.
1) Personal Fitness Trainer
2) Cake Decorator
3) Freelance Writer
4) Cooking Instructor
5) Fund Raiser
6) Musician
7) Tutoring Service
8) Tour Guide
9) Personalised Children's Books
10) Antique Restoration Service
If any of these ideas appeal to you, check out our practical factsheets including starting up in business as a cake decorator, a freelance writer or a private exam tutor.
Each
week we provide you with summaries of some popular or emerging business
ideas in the UK.
Here
is this week's idea:
Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.
Do you know what the word 'pejorative' means?
a) false or inaccurate
b) defamatory or slanderous
c) minor or trivial
d) disparaging or belittling
Answer at the end of the Bulletin.
Free accounting software from Microsoft
Microsoft has launched a new version of its accounting software for small businesses. For a while, the beta version of Microsoft Office Accounting is available free of charge, before the full version goes on general release. You can get your hands on it on the Microsoft website. The system is fully compatible with eBay and the PayPal system, according to Inc.com.
Tax tips online
If you're fretting about the looming tax return deadline, don't panic - an accountancy body has published some top tips online. The returns don't have to be in until 31 January next year, but if you get them in before 30 September, HM Revenue & Customs (HMRC) will calculate the tax for you. Now the Institute of Chartered Accountants in England and Wales (ICAEW) has produced several top tips to help you get it right.
Find your skills gap
Score Quizzes are free, online mini-questionnaires designed to help business owners assess if they are really up to speed in areas such as business planning, marketing and e-commerce. The questions are targeted to identify gaps in knowledge in key business areas, and tips on how to fill any gaps and improve your skills are also offered after you take each quiz.
Looking to buy a restaurant?
Restaurantstobuy.co.uk is a newly launched resource for anyone looking to buy and run a catering business in the UK. It features a directory of hundreds of businesses for sale, along with practical support and advice for people intending to buy their first restaurant, café or takeaway venture. Members can browse available new businesses as well as getting advice on issues such as managing staff. Membership of the site starts from £11.99 for one month and, until the end of this month, new properties can be advertised free of charge.
Alpha males - charged with testosterone and a desire to over-achieve - make up three-quarters of the world's top business executives, according to this new book. It identifies four types of alpha males: commanders, executors, strategists and visionaries. There is guidance on how to behave like successful alpha males such as Michael Dell of computer fame, and how to avoid the 'rogue' elements of the species, who often bring their businesses down with them when they fail. Check out:
Just one word answer
The answer is d).
Pejorative means disparaging or belittling.
When dealing with customer complaints, you should avoid pejorative comments that could be seen to trivialise their problem. |
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Good luck
The EnterQuest Team
This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate. |
