I had the great pleasure of hearing Tony Hsieh, CEO of Zappos.com, speak at the American Marketing Association in Tampa on Monday. His company has developed a highly successful phone order business for clothing, which evidently everyone in the universe knew about except me. The business is all about delivering the highest level of customer satisfaction imaginable over the phone, and employees spend whatever time it takes to “deliver happiness.” Tony reported that the longest single phone call for customer service was well in excess of 8 hours, so the cynic in me might observe, “Maybe not all customers are inclined to be happy.”

The ethic of the company is to improve the lives of their customers in some way, and they can do that better over the phone than over email. As opposed to “high tech,” the Zappos approach is “high touch.” Based in part on the ideas in books like Good To Great and Tribal Leadership, Zappos has come up with their own business philosophy of “happiness as a business model,” and Tony Hsieh is making that business philosophy a commodity as well. First he developed a Website at www.zapposinghts.com where stories of Zappos are collected and shared. Then he wrote the book, Delivering Happiness — A Path to Profits, Passion and Purpose. And now he is on the road in a tour bus with between 8 to 50 people “delivering the word of happiness” in expected ways across the country. The Delivering Happiness bus travels the country creating spontaneous concerts, fundraisers and public events which are different in each location.

The Zappos story is engaging and powerful. It seems to be a blend of the 60s hippy commune, the “Magic Bus,” and the time honored Nordstrom style of merchandising. What is so refreshing is the enthusiasm Tony has for his people. Everyone is engaged and playful, but focused on making a difference to the customer. One of Tony’s stories is about going out to a bar after a long day of work with some of the Zappos vendors. After spending the evening where everyone bought a round of drinks, they retired to one of the hotel rooms at 3 a.m., hungry for pizza. Room service was not available at that hour, so they decided to call Zappos to order a pizza. The call center employee was confused by the request at first (Zappos sells clothing, not pizza), but got back on line a couple of minutes later with information about several pizza stores in the area that would deliver at that hour.

At some point they have to sell a lot of shoes to make this level of customer service happen, and they seem to be doing that. Educating other entrepreneurs with bus tours, books and online consulting services on how they do it is another business altogether. You can learn more about the book Delivering Happiness at www.deliveringhappinessbook.com, learn how and why Zappos conducts their business they way they do at www.zapposinsights.com, or order some clothing at www.zappos.com.

Networking with potential clients or people who could potentially refer you to clients is an art. It is nuanced by various techniques which can work well or ruin your chances of ever getting work in this way.

One way to ruin your chances of getting a business referral is to approach a stranger, and hand him three or four of your business cards, and ask this person to give them to his best clients. This is the surest way  to strike out.

The reason is that you have to go through a three step process in building relationships. It is call the V-C-P process, where step one is becoming “visible,” or known. The second step is building “credibility” with other people by showing them over time that you do what you say you do. And the third step, “profitability,” will follow when the people who you have met and built credibility with feel good enough about you to refer you to their most valuable clients.

When an unknown person hands someone else his card, he hasn’t even gotten to “visibility” (V), yet. He isn’t even a known business person yet. After people have seen him around, seen his advertising, her people talk about him, then he becomes known. But he isn’t trusted yet. That comes with more time, and perhaps several transactions, before he builds “credibility” (C).

A better tact in a networking situation is to introduce yourself, tell people how you help your clients, and ask if there is anything you can do for them. This is a better step in the right direction in the V-C-P process.

“I like to deal with honest people,” Pete says. “In fact, I’d rather deal with a rattlesnake if I knew it was a rattlesnake than to deal with somebody pretending to be something else but actually is a rattlesnake.” Then he tells me a story.

He and a man named Preston quibbled for weeks on the price of a prize-winning, 2,800-pound bull Pete had up for sale. Preston was known for driving a hard bargain, and the two were $16,000 apart in their negotiations. As previous deals with Preston had stretched beyond a two-week span, Pete became exasperated over the current back-and-forth conversations. So he proposed, “Look, Preston, we’re not going to haggle over this forever. Let’s flip a coin. Heads, we go with my price. Tails, we go with yours.”

The man replied, “Only if we can use my quarter.” Pete agreed, and Preston flipped his quarter.

“Shoot,” Preston spat. “You win, Pete. So, okay, I’ll pay you the extra sixteen thousand.” And so he did.

Pete grins as he adds the punchline to this tale: The coin-flipping conversation took place over the phone. Pete was in Texas while Preston was in Colorado.

By Jim Keen

Great Ranches of the West

Here is a puzzle which will reveal some of the work which I do. I am presenting to a group of business people on Tuesday, and will have the answers to the Jumble in my handout. Enjoy the puzzle.

Retail businesses can get a whole lot more from a computer system than a spreadsheet. San Diego-based Rapid POS provides computer systems which provide control and cost savings to most aspects of the retail business including: cash register functions, inventory control, purchasing and receiving, price labeling, accounting, and e-commerce Web sites, all which can be dynamically updated with the flow of sales, inventory and price changes.

Retail businesses lose a lot of profitable sales due to mis-labeling, lack of inventory, improper staffing throughout the day, not keeping available product listed or promoted on their e-commerce Web site, or insufficient data on what is selling different days of the week. Rapid POS helps business owners manage all of those factors, and the difference can make the business far more profitable, especially for businesses with thin profit margins.

Rapid POS can provide innovative technology to business functions you may not have thought about. I recently designed graphics for a touch-screen customer sign-in system for a hair and skin salon in Las Vegas for Rapid POS. The touch-screen monitor stationed near the front door allows patrons to sign in, select a hair or skin “artist,” and register as a “member” with phone and email information. This technology is pretty “cool.”

Give me a call at 619-203-0522 if you would like to be introduced to Bart, Kyle and Matt
at Rapid POS.

One of my clients, a government contractor, has been awarded $750 million in government contracts this year with the proposals and presentations I designed. A typical proposal requires two or more binders of information covering every aspect of the proposed work including a thorough description of the scope of work, a plan for implementation, specific design approach to solving problems inherent in the work, description of the team of individuals responsible for each part of the work, description of previous experience which qualifies the team to undertake this project, and tables for all costs involved.

Well-designed proposals which feature a comprehensive assessment of the proposed project with graphics which visually support the company’s credibility are required in getting a large contract award. How well the proposal information is presented is viewed as an indication of how well the company can follow through with the actual work, even if that work may be about moving dirt or building a runway. Several copies of this set of information are delivered to the contracting agency in advance of the due date so that various decision makers each get their own copy. For one proposal project, I produced a total of 108 binders of information (54 were delivered in cartons to the agency, and a duplicate set of 54 were available to express ship in case the first set is lost in transit).

After the proposals are reviewed, my client has hopefully been selected to present an oral presentation in person to the agency. For that, I produce PowerPoint presentations, or printed marketing collateral which can be left with the interviewers to help sell the company after the interview. So far 2009 has been a successful year for my client, with the potential of adding to the list of contracts they have won.

Some companies have their own staff of engineers, designers and editors to prepare their proposals, presentations and marketing materials. I am available on a freelance basis to contractors who need to outsource their proposal design services. Call Jim Hance at 619-203-0522 to discuss your proposal project and needs.

I have belonged to a business networking group for about three years which meets in La Mesa, CA. The benefit to small companies of belonging to a business network is the opportunity to get business referrals from other companies as though they are your sales force. This works best when you are not in competition with a similar company in the network, and your network includes companies which naturally receive a volume of business which they can refer to you. Within our network I have a team which includes a printer and an IT specialist. There are other companies in the network, but most of our business network referrals come from one another. The three of us constitute a “marketing power team.”

We would very much like to add the following companies to our marketing power team: a sign company, an advertising specialties company, an SEO specialist, a Web developer, a product photographer, and an event planner. These are the types of companies and business people with whom we can immediately share business. Other members of our chapter have other power groups, and would welcome a chiropractor, a florist, a handyman, a painter, a plumber and a trust attorney. Anyone interested in visiting our Wealth Builders business network can call me at 619-203-0522, or visit our Website at www.bniwealthbuilders.com.

I have belonged to a business networking group which meets in La Mesa for about three years. The benefit to small companies of belonging to a business network is the opportunity to get business referrals from other companies as though they are your sales force. This works best when you are not in competition with a similar company in the network, and your network includes companies which naturally receive a volume of business which they can refer to you. I belong to a team which includes a printer and an IT specialist. There are other companies in the network, but most of our business network referrals come from one another. The three of us constitute a “marketing power team.”

We would very much like to add the following companies to our marketing power team: a sign company, an advertising specialties company, an SEO specialist, a Web developer, a product photographer, and an event planner. Other categories of professions we would welcome include chiropractor, florist, handyman, painter, plumber and trust attorney. Anyone interested in more information on our Wealth Builders business network can call me at 619-203-0522, or visit our Website at www.bniwealthbuilders.com

Let’s face it. It’s trendy to “be green.” Companies across the US are trying to sell customers with their green-washing; “we’re eco-friendly,” “good for the earth,” “we’ve gone green,” etc. With all of the slogans, it’s hard to know which services and products are actually dedicated to helping the environment. Consumers are listening to these messages and people are making more of an effort, as a whole, to be environmentally conscious. So you’ve decided to join in. Whether you’re looking to give your company a green-overhaul, or whether you’re just doing your part here and there, here are a few things I am doing which may appeal to these environmentally-conscious consumers.

Jim Hance produces email campaigns. Email campaigns are paperless, and some studies show they can create better results than postal mailers. The email is delivered directly to the recipient’s email in box, it is easy to view, and there’s a level of convenience. If the viewer wants more info, all they need to do is click and they’re at your Website. That’s instant gratification, and consumers love that.

Jim Hance produces “green” postcards and mailers. Some studies show great results from systematically scheduled Direct Mail with highly targeted mailing lists offering products or services used by the recipients. Did you know that if you mail 2,500 postcards, printing those cards on recycled cardstock with soy ink, aqueous-coated on one side can cost you less than $200? Postage and mailing to your mailing list will be about $870 (depending on mailing services used). The stipulation here is that the card be designed by someone like myself—precisely to USPS specifications, and of course designed to appeal to your recipients —or you will spend more than $500 more in postage for not being to code. So the cost of using a graphic designer can actually be less than the increased postage doing it even just “a little bit” wrong.

Jim Hance can put your catalog or coupons online. An e-commerce site can be expensive up-front, but once it is up it can be easy to maintain, and you don’t have to reprint and mail! I am working on an e-commerce site right now using WordPress templates, which means most of the programming is already done by somebody else, saving the client a lot of money. And if you are selling online, why not do email promotions which feature promotional codes for specials — the equivalent of a discount coupon, but without the printing! How green!

Tradeshow Banners Can Also Be Eco-Friendly. If you’ve decided to do a tradeshow, the most typical signage pieces are banners. There are actually printers out there that specialize in printing not only with environmentally-friendly inks, but on special, eco-friendly banner materials as well.

Enjoy the environment at Lakeside’s River Park. I designed a 6’ map exhibit at Lakeside River Park which tells the story of where the San Diego River water comes from, and it is right across the trail from their brand new lookout deck. Learn why the Kumeyaay Indians called the San Diego River “the upside-down river,” where the redtail hawks are nesting near the river’s edge, and what kind of plants and wildlife were native to the area 200 years ago. Lakeside’s River Park trail is a great place to walk, birdwatch, bicycle or ride horseback. The entrance to the trail is off Channel Way and is marked by a James Hubbell sculpture of one of the River Park inhabitants, the Great White Egret. Learn more at their Website, 
http://www.lakesideriverpark.org.

Do you find yourself becoming distracted, wasting time, losing money and being less successful than you want? Do you have nothing to aspire to except the daily grind of work? Are you constantly reactive to life’s daily changes? Want to be more involved with things you are passionate about? Want to direct your life more?

Perhaps it is time to write or re-write your business vision statement.

A business vision statement is an inspirational, energizing idea that you can use to excite yourself, and others, about what you want to do into the future. And simple vision statements are the most effective. They are easy to remember and easy to communicate to others. If your vision statement becomes something you believe and truly want with passion, creating it can propel you to success. It is your statement of intent about the difference you and your business will make in the world. Wow!

Here are some suggestions for creating a vision statement:

Think about what excites you about the future. Think about where you want to take your business. Think about what you want to get out of your life’s work. Write as many ideas down as you can think about the positive outcome you want to see. Then, put all those ideas into one bold statement you can remember each day.

Simplicity, clarity, authenticity and inspiration are the cornerstones for a good vision statement. Enjoy the process.