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19Chapter 2: All About Customers

ߜ Request ZIP code information at the beginning of cash register
   transactions.

ߜ Survey customers. If your business generates substantial foot traffic, find
   places where customers naturally pause and be there to conduct formal
   or informal research — depending on your business environment.
   Whether you survey all customers or limit your effort to every nth cus-
   tomer (every tenth one, for example), keep the question period short and
   maintain a log of the answers. Spread your interviews over a span of time
   so that your findings reflect responses from customers during various
   days and weeks. (Obviously, you don’t want to end up with results based
   only on customers who visit your business at noon on Thursdays!)

   One other important reminder: Be sure to respect and protect the privacy
   of information you collect from customers. Establish and share your com-
   pany’s privacy policy. If you collect information online, visit the Web site
   of the Online Privacy Alliance (http://privacyalliance.org) and click
   on “Business Resources” for policy guidelines.

   A cardinal sin in small business is to treat a long-standing customer like a
   stranger. As you interview customers, instead of asking, “Is this your first
   visit?” try to get at the answer indirectly, as shown in these examples:

         • The front desk staff can ask, “Have you been here since we moved
           the reception area?”

         • Hotel clerks can ask, “Have you stayed with us since we started
           our evening wine reception?”

         • Savvy restaurateurs don’t have to ask at all. They know that if a
           customer asks for directions to the restroom, that person is likely
           to be a first-time patron. On the other hand, a waiter who over-
           hears a customer recommending a certain menu item to a table-
           mate can assume that the patron is a repeat guest.

   The important thing is to find ways to treat your loyalists like the very
   important business insiders they are.

ߜ Observe your customers. What kinds of cars do they drive? How long
   do they spend during each visit to your business? Do they arrive by
   themselves or with friends or family members? Do those who arrive
   alone account for more sales or fewer sales than those who arrive
   accompanied by others? Where do they pause or stop in your business?
   Your observations will help you define your customer profile while also
   leading to product decisions, as shown in these examples:

         • A small theme park may find that most visitors stay for 2 hours
           and 15 minutes, which is long enough to want something to eat or
           drink. This could lead to the decision to open a café or restaurant.

         • A retailer may realize that women who shop with other women
           spend more time and money in the store, which may lead to a
           promotion that offers lunch for two after shopping on certain days
           of the week.
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