The majority of these ‘super customers’ are also likely to spend more money with you or send more referrals your way – especially if you engage them with a rewards program.

A rewards program that spurs more sales doesn’t have to be complicated or expensive, says Roger L. Brooks, author of “The Power of Loyalty.”

The best rewards programs offer something of value to the customer, says Brooks, who assists companies to promote and improve customer loyalty.

Read an excerpt from the book “The Power of Loyalty.”

Rewards programs are a win-win: They can motivate people to take specific purchasing actions that accomplish their goals, while also accomplishing your goal to increase sales.

Motivate but don’t mislead. The incentives truly have to deliver on value. Customers can see through transparent rewards and may even feel duped, despite your best intentions.

Oftentimes it’s the little things that matter most. For instance, Photofiddle.com is an internet company that turns regular photographs into works of art. Customers can choose to turn photos into pop art images, charcoal drawings or use other specialized effects.

Then the customer can have the artwork printed on special paper or canvas, then framed.

When the art arrives at the customer’s doorstep, the package includes a pair of white gloves.

The label attached to the gloves reads, “All fine artwork should be handled with care. Please use white cotton gloves. Oils from your hands and fingers can leave finger prints. Jewelry on your fingers and wrist can leave markings.”

The message is two-fold: It reminds the customer to treat their artwork with care, and it also implies that the company treats their customers with care.

John Jantsch of DuctTapeMarketing.com mentions how his lawn care company gives him a price break for buying and paying for the 6 annual treatments needed to keep his lawn in top shape.

Also, the lawn care folks will plant a small tree in his yard (or he can gift the tree to a friend) for every referral he sends their way.

That’s how incentives add green to the world – and your business.

Narrow your market during a recession?

It makes good business sense, Jantsch writes on his blog, because “Once you start to get a better view of your profitable customers, it’s time to take a good, hard look at the other 70%.”

If your business caters to every client, then your best clients may not necessarily get the star treatment. You won’t have time to cultivate those relationships and make them bullet-proof. You won’t have time to go out and find customers who fit the perfect profile of a profitable customer.

Instead, you’ll be too busy putting out fires — the ones set by the other customers who share the same high-maintenance traits: They send endless emails and make unreasonable demands. They question charges more often. They argue for discounts. And, to top it off, they may even complain about the quality of work.

Let’s break it down:

1. Are these customers going to give you referrals? Probably not.
2. Will these customers talk you up online and out in the community? It’s doubtful.
3. If you slowly culled them from your customer list, would you have time to attract those ideal, profitable customers? Definitely.

Now, you’ve got to go about firing your ‘bad’ customers with a level head and a
deft touch.

Ideally, you’ll want to move them politely to some other company, perhaps even a competitor. You can always say you’re swamped with work, but would be more than happy to recommend another company who will take good care of them.

“If you’ve taken the time to fire them politely with a bit more panache and patience, they’re likely to break less furniture as they leave,” blogs Steve Blank, serial entrepreneur and author of “The Four Steps to the Epiphany.”

But if you do it with an attitude that says, “You’re worthless and we’re thrilled to finally get rid of you,” the strategy will likely backfire.

Indeed the fallout can be painful. Complaint websites and good old-fashioned word-of-mouth can come back to bite you, hard.

The key is to be professional and offer alternatives. If you don’t, be prepared to face the consequences, urges Karl Walinskas, an expert on organizational communications and author of Getting Connected Through Exceptional Leadership.

“Discharging customers the wrong way can and usually does lead to very bad things for your business,” Walinskas writes on his website, businessknowhow.com. “Customers talk, and word of mouth about bad experiences travels fast and far.”

Before you start firing off a bunch of ‘kiss-off’ emails, create a checklist to identify your best and worst customers. Then create a see-ya-later script, compile a list of referrals ready to hand over, and start dialing.

P.S. – Fire your customers either on the phone or in person – but don’t wait until they call first, in dire need of your services. No one likes to be given the boot during a crisis. Not even the fire starters.

Small business owners are known for staying on top of current market trends. So why did a recent survey by Discover Small Business Watch reveal that only 45% of small business owners had created a company website?

After all, 47 percent of consumers said they are more likely to use a small business that has a website. That’s according to the same survey. (Read the report on the BBB’s website.)

Why aren’t more business owners reacting?

The answer is simple and familiar to any entrepreneur: Small business owners can’t do it all. And in today’s economy, many small businesses simply do not have the budget to outsource jobs that the in-house staff can’t manage.

Create a website? That can wait until later…can’t it?

Of course it can, but consider the cost of leaving money on the table. Think of it this way: Most business owners would never put off making a sale or providing top-notch customer service. Getting your business on the Internet can have a huge impact on sales and customer service down the line – if done right.

A huge exception
Experts like Entrepreneur columnist Tim Knox say there’s one HUGE exception to that rule: “It’s actually better to have no website at all than to have one that makes your business look bad.”

So if you don’t have the funds or the programming skills to build a top-notch website, there are plenty of alternatives to get your business online and noticed.

Instead of building a website that requires weekly or monthly maintenance, it’s a heck of a lot easier to test the waters – and customer reaction – with a large display add on a reputable Internet directory, like CityOf.com

You’ll accomplish two major goals: You’ll get your business online and discover just how much business you’re missing out on.

The Internet dwarfs other advertising
The Internet is now part of the daily fabric of our lives. We use it for for work, research, learning, socializing and, of course, shopping.

In fact, 80% of us now spend as much time online as we do watching television, according to Steve Strauss, author of The Small Business Bible.

In the past, customers would think twice about doing business with someone who had no storefront. The Internet is the equivalent of a storefront in our mobile and digital age. It doesn’t matter if you run a service-related industry or if your product can’t be purchased online. Customers are looking for you online at that initial point of contact.

Read a previous post about how people use the Internet like a phone book.

If a new customer or even an existing customer can’t find you on the Internet, there’s a good chance they’ll run into your competitor online.

So stop sitting on the sidelines. Use the Internet to your advantage by letting your customers know that you’re on top of new technology AND your business is available online 24/7.

When shopping around for advertising, find out what bonuses are offered and whether the ad will even be found. In your ad, you should include pertinent information, like location, hours and any other answers to Frequently Asked Questions.

If your budget is limited, you should seriously check out CityOf.com and its growing network of 117+ local directory sites with names like THECityOfBaltimore.com and THECityOfPortland.com.

For just $469 for the entire year, you’ll get a 4×6 ad PLUS a web page built for you at no extra cost! You can add information, a list of Frequently Asked Questions and even include special promotional coupons or codes to entice customers to use your services.

It’s time to get listed … and get found!

You’ve got to admit, we live in a fascinating world. And you don’t have to leave your couch to explore it (as long as you have a laptop. Otherwise you’ll have to get up and log on to your computer).

Just go to CityOf.com and click on the city you’d like to search. You can learn a lot about a town by discovering the shops, stores and services that keep it buzzing along.

You know the saying about New York and success? “If I can make it there, I’ll make it anywhere.”

Mmm, not necessarily true in the business world. What works in NYC doesn’t always fly in FLA, for example…

Skin is big business in the Big Apple. Plenty of salons offer specialized services in skin care. And while most skin care specialists frown on anything that resembles a tan, it’s a different state of affairs in Florida. Click around the city of Orlando, where tanning salons are hotter than the Florida sunshine.

Here’s another type of business you won’t find in spades down south: Snow equipment. Snowplows in Pittsburgh, though, are part of the scenery.

Other business categories we’re just dying to mention:

• Mudjacking in Milwaukee
• Pampered Pets in Palm Springs
• Foam Roofing in Phoenix
• Rubbish in Raleigh

And finally, if you’re Sleepless in Seattle, check out the stores that sell custom-made mattresses so you can catch some zzz’s.

OK, we’ll admit this isn’t exactly scientific stuff. We’ll leave that work to the laboratories in Las Vegas.

Now, sometimes you just don’t know what you’re looking for until you stumble upon it.

If you peruse through the city of Laredo, TX, where dust, sweat and oil rigs are commonplace, you’ll find a useful category called Wiping Materials. Yup, a whole slew of companies supply rags, cloths and towels to businesses like car washes, mechanics and oil field workers. Pretty handy if you need to mop the sweat off your brow (or car or oil derrick).

Still wondering if internet advertising works? Well, let’s just say there’s a category for everything under the sun (and on the North Pole), including Santa Claus.

That’s right. The overwhelming majority of consumers are using the internet – and their smart phones – to search for pizza delivery, plumbers, attorneys … you name it.

And getting listed on the internet for local searches – whether you’re an electrician, doctor, carpenter or insurance agent – is an important strategy for small business owners to generate leads.

What is a local search? It’s when someone searches for “pizza delivery in Austin” or “DUI attorney in Dallas” for example.

Let’s face it, the phone book may be useful as a booster seat in a pinch, but it’s definitely no longer the first thing most people reach for when shopping for goods or services.

A recent PollDaddy.com poll asked Gizmo readers, “Do you still use a phone book?”
The results may surprise you:

• 4% said ‘Yes’
• 76% said ‘No’
• 20% said ‘Rarely’

One poster commented: “Perhaps phone books should be available to those who are 65 and older, but seriously, who else really needs this any longer?”

A new generation of web sites that cater to local searches are a testament to the burgeoning business of local search.

For example, CityOf.com maintains an extensive directory of businesses in 117 cities. Visitors to the top-ranked website can quickly find their city, then browse through a business directory of more than 300 to 400 categories. Customers can find listings for everything from Car Washes to Title Companies to Veterinarians.

Businesses that traditionally rely on word-of-mouth or print advertising are finding that the next generation of customers are more internet-savvy – and more likely to search for a service business through online advertising. Searchers can also get information more quickly and easily through the next generation of smart phones and mobile devices.

Smart business owners are taking notice.

When the woodworking industry site www.woodweb.com recently asked members “Do Phone-Book Ads Work?” the response was overwhelming.

One poster noted: “I primarily correspond with clients via e-mail after an initial visit. I’ve noticed that the few people I find who don’t use e-mail or have home computers tend to be those who have used the yellow pages. So I conclude that the computer users – clearly a larger group – are using the computer more than the Yellow Pages.”

Clearly, the buzz on local searches is everywhere.

Local searches are an economic and effective way to generate new business – and it’s easy for any business owner to get in on the action. Our next blog post will reveal how you can target your advertising dollars for local searches and measure your success.