The most important step merchants can take to sell almost any product online is to include a lot of photos. Online shoppers expect to see what a product looks like, especially since they can’t pick it up and examine it before making their purchases.

Merchants should use photos showing their items from a variety of angles and, in some cases, position them next to something else to show the relative size (a cell phone the size of a lipstick, a bench that’s knee-high).

When formulating a product marketing strategy, consider the following:

• Avoid over-describing or over-selling offerings on the site. Information should be useful to the shopper, bringing out all the positive benefits of the product or service in a conversational tone.
• Offer complementary products or partnerships to bolster a store’s offerings. Businesses that don’t carry a wide variety of products often partner with other merchants to offer complementary items.

Who is your target audience? Anytime a business opens its products or services to a new market, management must consider the geographic, demographic and socio-economic factors that determine how it will approach the consumer. Some offerings, such as toys, school supplies or nursing services may be targeted primarily to a specific age group.

Other products or services, like snow blowers or swimming pool supplies, could target a specific set of geographic areas. Every audience is unique, so merchants should tailor their marketing and communications in a way that connects consumers to their businesses.

How far will the business cast its net? In a global economy it’s entirely possible that a small business owner could start the morning with an e-mail from Milan, asking if he’ll accept payment in Euros. Online entrepreneurs must understand that, from day one, they are international businesses with display windows and checkout stations in every corner of the globe.

A business could tell its customers that it ships only to North American locations or accepts only U.S. dollars. But it may turn out that the overseas market is the company’s very best sales opportunity. Therefore it’s important for the online business to determine how it will work with customers in foreign nations.

How will shipping be handled? Is the company prepared to convert currencies? How will the business communicate with customers who speak different languages? Online businesses should consider not excluding an eager marketplace just because it seems difficult to serve.

There are several services that make it easier for international visitors to order from a U.S. store. PayPal, for instance, accepts payment on behalf of merchants in U.S. dollars, Canadian dollars, Euros, Pounds Sterling, Japanese Yen, and Australian dollars. The major U.S. credit cards accept purchases from foreign countries and make the necessary monetary conversions for the buyer.

If you’ve never really done much advertising and relied mostly on networking and word-of-mouth, how can you figure out where to start?

The first thing you must do is calculate your minimum and maximum allowable ad budgets:

• Step 1: Take 10 percent and 12 percent of your projected annual gross sales and multiply each by the markup made on your average transaction. In this first step, it’s important to remember that we’re talking about gross markup here, not margin. Markup is gross profit above cost, expressed as a percentage of cost. Margin is gross profit expressed as a percentage of the selling price. Sell an item for $150 when it only costs you $100, and your markup is 50 percent.

  Your margin, however, is only 33.3 percent. This is because the same $50 gross profit represents 50 percent of your cost (markup,) but only 33.3 percent of the selling price (margin.) Most retail stores in America (carpet, jewelry and so on) operate on an average markup of approximately 100 percent, some operate on as little as 50 percent markup and others add as much as 200. More expensive items, such as cars, recreational vehicles and houses, typically carry a markup of only 10 to 15 percent.

• Step 2: Deduct your annual cost of occupancy (rent) from the adjusted 10 percent of sales number and the adjusted 12 percent number.
• Step 3: The remaining balances represent your minimum and maximum allowable ad budgets for the year. At this point in the calculation, you may learn that you’ve already spent your ad budget on expensive rent, or you might also learn that you should be doing a lot more advertising than you had previously suspected.

Now let’s calculate an ad budget. Assume that your business is projected to do $1 million in sales this year, you have a profit margin of 48 percent, and your rent is $36,000 per year. The first thing to do is calculate 10 percent of sales and 12 percent of sales ($100,000 and $120,000, respectively).

Second, we must convert your 48 percent profit margin into markup, because markup is what we’ve got to have to make this formula work. Most business owners know their margin by heart, but never their markup.

To make the conversion from margin to markup, simply divide gross profits by cost. Dividing $480,000 (gross profits) by $520,000 (hard cost) shows us that a 48 percent margin represents a markup of 92.3 percent. Bingo.

Now we multiply $100,000 times 92.3 percent to see that our adjusted low budget for total cost of exposure is $92,300. Likewise, we multiply $120,000 times 92.3 percent to get an adjusted high budget for total cost of exposure of $110,760.

From each of these two budgets, we must now deduct our $36,000 rent. This leaves us with a correctly calculated ad budget that ranges from $56,300 on the low side to a maximum of $74,760 on the high side.

Most advertising salespeople will tell you that “5 to 7 percent of gross sales” is the correct amount to budget for advertising, but don’t you believe it. It simply isn’t possible to designate a percentage of gross sales for advertising without taking into consideration the markup on your average sale and your rent.

Yes, expensive rent for a high-visibility location is often the best advertising your money can buy, since a business with a good sign in a high-visibility location will need to advertise significantly less than a similar business in an affordable location.

To prove this, just look at the example above and change the rent to $75,000 per year. In this case, the ad budget would range from $17,300 to $35,760, representing just 1.7 to 3.5 percent of sales.

The formula you’ve just learned is the only one that reconciles your ad budget with your rent as well as the profitability of your average sale. Use it!

When you only have a few employees and a few customers, it’s easy to stay on top of things. As you add more customers and and employees, it gets quite a bit harder. You actually create the potential for growth at the same time you’re creating the potential for disaster.

Creating a customer service policy and sticking to it can make it easier on you.

Take these steps to help you ensure that your clients receive excellent service every step of the way.

1. Put your customer service policy in writing. These principles should come from you, but every employee should know what the rules are and be ready to live up to them. This doesn’t have to be elaborate. In fact, keep it as simple as you possibly can.>
2. Establish support systems that give employees clear instructions for gaining and maintaining service superiority. These systems will help you outservice any competitor by giving more to customers and anticipating problems before they arise.
3. Develop a measurement of superb customer service. Don’t forget to reward employees who practice it consistently.
4. Be certain that your passion for customer service runs rampant throughout your company. Employees should see how good service relates to your profits and to their futures with the company.
5. Be genuinely committed to providing more customer service excellence than anyone else in your industry. This commitment must be so powerful that every one of your customers can sense it.
6. Share information with people on the front lines. Meet with your employees regularly to talk about improving service. Solicit ideas from employees-they are the ones who are dealing with customers most often.
7. Act on the knowledge that what customers value most are attention, dependability, promptness and competence. They love being treated as individuals and being referred to by name.

Phrases That’ll Make Your Customers Happy

Principles of customer service are all very well, but you need to put those principles into action with everything you do and say. There are certain “magic words” customers want to hear from you and your staff. Make sure all your employees understand the importance of these key phrases:

• “How can I help?” Customers want the opportunity to explain in detail what they want and need. Too often, business owners feel the desire or the obligation to guess what customers need rather than carefully listening first. By asking how you can help, you begin the dialogue on a positive note (you are “helping,” not “selling”). And by using an open-ended question, you invite discussion.
• “I can solve that problem.” Most customers, especially business-to-business customers, are looking to buy solutions. They appreciate direct answers in a language they can understand.
• “I don’t know, but I’ll find out.” When confronted with a truly difficult question that requires research on your part, admit that you don’t know the answer. Few things ruin your credibility faster than trying to answer a question when you are unsure of all the facts. Savvy buyers may test you with a question they know you can’t answer and then just sit quietly while you struggle to fake an intelligent reply. An honest answer enhances your integrity.
• “I will take responsibility.” Tell your customer you realize it’s your responsibility to ensure a satisfactory outcome to the transaction. Assure the customer you know what he or she expects and will deliver the product or service at the agreed-upon price. There will be no unexpected changes or expenses required to solve the problem.
• “I will keep you updated.” Even if your business is a cash-and-carry operation, it probably requires scheduling and coordinating numerous events. Assure your customers they will be advised of the status of these events. The longer your lead time, the more important this is. The vendors customers trust the most are those that keep them apprised of the situation, whether the news is good or bad.
• “I will deliver on time.” A due date that has been agreed upon is a promise that must be kept. “Close” doesn’t count.
• “Monday means Monday.” The first week in July means the first week in July, even though it contains a national holiday. Your clients are waiting to hear you say “I deliver on time.” The supplier who consistently does so is a rarity and will be remembered.
• “It’ll be just what you ordered.” It will not be “similar to,” and it will not be “better than” what was ordered. It will be exactly what was ordered. Even if you believe a substitute would be in the client’s best interests, that’s a topic for discussion, not something you decide on your own. Your customer may not know (or be at liberty to explain) all the ramifications of the purchase.
• “The job will be complete.” Assure the customer there will be no waiting for a final piece or a last document. Never say you are finished “except for….”
• “I appreciate your business.” This means more than a simple “Thanks for the order.” Genuine appreciation involves follow-up calls, offering to answer questions, making sure everything is performing satisfactorily, and ascertaining that the original problem has been solved.

Neglecting any of these steps conveys the impression that you were interested in the person only until the sale was made. This leaves the buyer feeling deceived and used, and creates ill will and negative advertising for your company. Sincerely proving you care about your customers leads to recommendations and repeat sales.

Never Let Your Customers Forget You

One important tool for generating repeat business is following up. Effective follow-up begins immediately after the sale when you call the customer to say “thank you” and find out if he or she is pleased with your product or service. Beyond this, there are several effective ways to follow up that ensure your business is always in the customer’s mind.

• Let customers know what you are doing for them. This can be in the form of a newsletter mailed to existing customers, or it can be more informal, such as a phone call. Whatever method you use, the key is to dramatically point out to customers the excellent service you are giving them. If you never mention all the things you are doing for them, customers may not notice.
• Write old customers personal, handwritten notes frequently. “I was just sitting at my desk and your name popped into my head. Are you still having a great time flying all over the country? Let me know if you need another set of luggage. I can stop by with our latest models any time.” Or if you run into an old customer at an event, follow up with a note: “It was great seeing you at the CDC Christmas party. I’ll call you early in the New Year to schedule a lunch.”
• Keep it personal. Voice mail and e-mail make it easy to communicate, but the personal touch is often lost. If you’re having trouble getting through to someone whose problem requires that personal touch, leave a voice-mail message that you want to talk to the person directly or will stop by his or her office at a designated time.
• Remember special occasions. Send regular customers birthday cards, anniversary cards, holiday cards…you name it. Gifts are excellent follow-up tools, too. You don’t have to spend a fortune to show you care; use your creativity to come up with interesting gift ideas that tie into your business, the customer’s business or his or her recent purchase.
• Pass on information. If you read an article, see a new book, or hear about an organization a customer might be interested in, drop a note or make a quick call to let them know.
• Consider follow-up calls as business development calls. When you talk to or visit old clients or customers, you’ll often find they have referrals to give you, which can lead to new business.

With all your existing customers can do for you, there’s simply no reason not to stay in regular contact with them. Use your imagination, and you’ll think of plenty of other ideas that can help you develop a lasting relationship.

Dealing With Unsatisfied Customers

Studies show that the vast majority of unsatisfied customers will never come right out and tell you they’re unsatisfied. They simply leave quietly, later telling everyone they know not to do business with you.

So when a customer complains, don’t think of it as a nuisance-think of it as a golden opportunity to change that customer’s mind and retain his or her business.

Even the best product or service receives complaints now and then. Here’s how to handle them for positive results:

• Let customers vent their feelings. Encourage them to get their frustrations out in the open.
• Never argue with a customer.
• Never tell a customer “You do not have a problem.” Those are fighting words.
• Share your point of view as politely as you can.
• Take responsibility for the problem. Don’t make excuses. If an employee was sick or a supplier let you down, that’s not the customer’s concern.
• Immediately take action to remedy the situation. Promising a solution and then delaying it only makes matters worse.
• Empower your front-line employees to be flexible in resolving complaints. Give employees some leeway in deciding when to bend the rules. If you don’t feel comfortable doing this, make sure they have you or another manager handle the situation.

Most business signs are invisible and utterly useless. They’re well-proportioned, carefully balanced, tastefully drawn and perfectly color-coordinated. In other words, utterly predictable and effectively invisible.

The five most common mistakes made in business-sign design are:

1. Attempting to be understated or elegant.
2. Attempting to “fit,” or blend into, the surrounding environment.
3. Underspending.
4. Including too much information.
5. Placing the sign too high. (The eyes of drivers tend to stay focused at windshield height. Low signs are better in town. Tall signs are better on freeways where they’ll be read–at windshield height–from great distances.)

Great signs are always the most interesting piece of scenery in their vicinity. This is why they’re noticed even when people aren’t looking for them.

Would you like to have such a sign? Believe it or not, it’s possible–not cheap or easy, but possible.

Consider the sprawling white letters stretched across a hillside in Southern California: HOLLYWOOD, a landmark known around the world. Did you know that sign was originally erected by a real-estate developer to identify his remote suburban subdivision, Hollywoodland?

Not all business signs will become famous landmarks, but it doesn’t hurt to keep these common denominators of business signs that do become landmarks in mind:

• They’re dramatic. This can be due to the fact that they’re:
  • Grossly oversized
  • Strangely placed
  • 3-dimensional
• They’re different. They contrast sharply with their surroundings due to:
  • Color. For example, snow-white Hollywood letters against a hillside of dark brown and green.
  • Installation. The famous Hollywood sign isn’t on a pole or a board. Its individual letters sit directly on the ground.
  • Context. There’s nothing immediately around it to distract from it. Or if there is something important nearby, it’s incorporated into the sign itself.
• There’s something “wrong” with it. Ever notice how the Hollywood letters aren’t level, but rise and fall with the terrain? This makes it far more memorable.

I doubt if the builder of the Hollywood sign did these brilliant things intentionally. But they worked, even if some of them were accidental. Do you have the courage and determination to repeat on purpose the things he did right by accident? If you do, the public will soon be using your sign as a reference point when giving directions.