Filling Your Forward Order Book

The purpose of a forward order book in any business is to log everything that has been ordered but not yet bought by prospective customers. It will include any deals where contracts have been signed but have not yet reached completion, as well as reservations for specific items.

The forward order book will act as a good barometer of how a business is faring.

Now is the time to fill your forward order book for 2012 while your prospective customers are beginning to feel the spirit of the season of goodwill.

Share with your customers the future innovations which you intend to develop for your business in the coming year.

Inform them of next year's seasonal promotions and special deals in advance.

Show your customers how much you value them by offering them discounts now on future purchases.

By making an environment of customer inclusion in your ongoing business planning you will discover that your customers will greatly assist you in filling your forward order book and making the prospects for your business much more successful.

Are Your Customers Always Right?

Expert Reveals Which Ones Are Right for Your Business

In business, the squeaky wheel almost always winds up getting the grease. Customers tend to be rewarded for complaining, but that strategy leaves money on the table, according to marketing consultant Betsy Kruger.

“No one likes hearing a complaint, so when a customer complains, a business quickly and resoundingly rectifies the complaint,” said Kruger, author of Top Market Strategy: Applying the 80/20 Rule (www.BetsyKruger.com). “The problem with this strategy is that disgruntled customers bring in less profit than loyal customers. Your business should focus on gratifying your most profitable customers.”

Contrary to popular opinion, the customer is not always right, Kruger says.

“It’s wrong to reward complainers,” she says. “You should reward loyal customers since they reward your business with higher profit. You should value their business since loyal customers value your business.”

Kruger says the 80/20 rule governs all results, including profits from customers.

“When you sort customers by their profitability, this universal law predicts that the top 20 percent of your customers will generate 80 percent of your profit. Conversely, the bottom 80 percent of your customers will generate only 20 percent of your profit – and virtually all of your complaints. This means you should target the top 20 percent with a top market strategy.”

Your business can profit from the 80/20 rule by enacting these steps:

Distinguish your top customers – Identify ways the top 20 percent of your customers differ from other customers and what characteristics they have in common. Realize that your top customers are highly profitable.

Target your top customers – Gratify your top customers with a top market strategy. Discontinue marketing to the bottom 80 percent of your customers by automating all interactions with that group.

Promote to top prospects – Focus resources on converting similar prospects into top customers. When you replace your less profitable customers with these new customers, you can expect your total profit from customers to quadruple.

“You may feel it’s rude to consider some customers as less valuable than others, but research proves it’s true,” Kruger says. “The top 20 percent of your customers magnifies your profit, whereas the bottom 20 percent of your customers magnifies your complaints.”

“I feel it’s rude to reward complainers since loyal customers deserve to be rewarded. When you prioritize your customers with the 80/20 rule, you are prioritizing your profit.”

About Betsy Kruger

Betsy Kruger heads Strategic Power, a marketing consultancy committed to empowering world prosperity, one business at a time. Business Expert Press released her book, Top Market Strategy: Applying the 80/20 Rule, in August 2011. This book enriches marketing and strategy textbooks and shows business leaders exactly how to quadruple their profit from customers. She writes articles, motivates groups, leads seminars, and consults with clients on how to prosper from the 80/20 rule.

Training Is Important For Success

The right training for your people can make the difference between success and failure in their jobs. Effective training of your people will also make your business more successful.

Train them to understand exactly what you have to offer that is unique and exactly which target audiences would best use what you have to sell. The success rate will be much higher because you will be focusing your efforts only on those customers that have a high probability of buying.

When they make contact with your customers it is a critical test. The contact may be in person, over the phone, or by letter. Regardless of which approach is used, they should build credibility and trust.

They need to get enough information to know the customer's needs and what it will take to fulfil them. To do that, they should listen to what the customer says and also know how to ask questions.

Your people should always be in step with their customers. The goal is gaining a truly committed customer. It requires trust, respect, and open communication on each side.

Assuring customer satisfaction is indispensable to gaining success. If you make sure the customer is satisfied, it is more likely that there will be repeat business as well as referrals.

Train your people to think long term. All future business depends on their ability to reaffirm your commitment to quality and service.