23 Methods for Design Firms to Increase Customer Loyalty

Customer loyalty is a vital for any business, but especially for a small web design companies or freelancers. You do not have the marketing resources of larger organizations so it’s important to work hard at keeping the clients you do have.  Here’s three tips for keeping your clients coming back:

1. Regular Communication

Regular communication with your clients does not just mean talking to them about their particular project.  Obviously you do want to be accessible as you work with your clients.  But you should also remain in contact with them long after you are finished working on any specific task.  Regular newsletters, seasonal cards, appreciation gifts, and simple follow up phone calls are all great ways to remind your customers about your company.  The idea is to keep your company in the front of their mind on an on-going basis.

2. Offer Referral Incentives

Your existing customers are the best resource for finding new customers-and rewarding them for those referrals is a great way to make sure they stay loyal to you.  Be sure you take the time to regularly remind them about your incentive program, and be sure to follow through in a timely manner.   Referral incentives can come in many forms including cash, concert tickets, discounted services, and gift certificates.

3. Under Promise and Over Deliver

But perhaps the most important way to ensure your customers remain loyal is to under-promise and over-deliver.  That means giving your clients a reasonable expectation that you are certain you can meet and then finding ways to deliver above and beyond your promise.  Your customers will be delighted when you are finished with their website a whole week before the deadline; or when you are able to add the additional features without having to charge extra the extra time you originally estimated.

These three suggestions are easy, inexpensive and tried and true.  Remember, that as a business owner, it costs more to win new customers from a marketing standpoint than it ever does to maintain relationships with existing ones.  You may want to re-evaluate how you have your marketing budget structured in order to take better care of your past and present clients.  Finally, the key to any of this is to make sure you keep a comprehensive, updated, and well maintained database of your clients and prospective clients (more on that in a future post).

0Freelancing vs. Partnerships

From the time I graduated from High School, I’ve wanted to do one thing: design awesome websites. Initially I wanted to work for some corporate agency or become the  in-house guy for a couple bigger companies like QuikTrip or Blockbuster Video. (Boy am I glad I didn’t do that!) Over time, I began to see that I had my own flavor in the way I designed, created, and even pitched my skills. I decided that the best move would be to go freelance. In 2003 I decided to do just that.

And nobody cared.

I didn’t have the money to join the local Chamber, and I just wasn’t that experienced (yet) at networking. The pounding on the door, the phone calls and the crazy mob never came. Even though I nailed a couple of locally high-profile clients, folks in my area just never caught on. So I steadied on.

Perusing the Freshbook Forums, I landed a gig for guy in Chicago, IL. He and I caught on quick and he liked my work so much that he asked me to quit Upward Media and throw in with him.

What? Are you crazy? I’ve worked hard for the last 4-5 years at building this… nothing. What did I have to lose? He already had more work waiting in the wings, which was better than what I was getting. We ironed out the details and even though we live in completely different states and have never met face-to-face, Rocket No. 9, LLC is by far the biggest success I’ve ever been a part of. And now, I’m very glad I decided to give up on my own “dream” and get involved with this one:

Partnerships are good for creativity. They give you the opportunity bounce ideas off each other. This, as most freelancers know, is a great caveat of freelancing–the socializing or rather, the lack thereof. The commitment to a partnership requires me to check in, get on the same page and just shoot the bull sometimes.

Partnerships are good for accountability. One thing that Colin (my partner) has kept pushing me into is the idea that Rn9 is “every bit as much your business as it is mine”. He reminds me that my ideas, my opinions and my talent are completely necessary to keep the business running. It’s nice to feel needed, but more importantly, it’s great that I work with guy who honest and brave enough to throw the weight of a company on your shoulders, yet you don’t have to carry it yourself. Colin and I both understand what’s required of us in order to keep Rn9 afloat and although we’ve had some difficult times, we have a mutual respect of each other for the burden he bears.

Partnerships are good for business. Maybe it doesn’t happen much where you live, but in my portion of Oklahoma, I’ve found that folks are generally more receptive to actual businesses than just go-it-alone freelancers. Not saying that it’s that way everywhere, and I’m certainly not saying that it’s not my own fault that folks didn’t receive me well, but getting properly established and accredited has helped us out quite a bit.

I don’t know for certain whether or not Rn9 will last forever and be my ultimate destination, but I know that the experience I’ve gained as a business partner–for all it’s faults–has been an experience like no other and I certainly wouldn’t trade it for anything.

0How Clients Decide

It’s important to understand how people make decisions when you start to write proposals. There are three pieces of information that people use to help them make a decision. First piece of information is recognition. The second piece of information is whether or not the proposal answers all their questions and the third is whether not the proposal is compliant with the requirements put forth in the request for proposal. In addition to the different pieces of information that need to be addressed, You need to understand what’s important to the customer.  

As far as recognition is concerned given two different companies the recognizable company will have a higher inferred value. Think of it this way, given a choice between an IBM ThinkPad and an unknown brand laptop which would you choose? You don’t actually recognize that as a better computer. You know IBM and you know what to expect from their products.  

Recognition is built through repeated exposure. These are pre-proposal activities like advertising, branding, and repeated contacts with a customer. You should be advertising and branding your company on a regular basis. You should be talking to your customers through emails and phone calls to keep you fresh in their minds.

The second piece of information is whether not somebody answers all of their questions or responds to what they need. It’s important to thoroughly read through a request for proposal or an advertisement. A good way to keep track is to make a table of the needs that the customer presents. As you build your proposal check off the needs that you address as you address them. This makes it impossible for you to miss something that was included in the request.

The third piece of information is whether or not you were compliant with their requirements. Did you include all the items they wanted in the proposal? Did you answer all their questions? Did you follow the directions they stipulated in submitting a proposal?

After these first three pieces of information have been checked off in the client’s mind, they start to consider the proposal itself. Usually there’s one of three different ways to decide on a proposal. The first way is to look at past projects. They think about how they made their choice the last time and whether or not it worked. The second way is to develop a set of criteria by thinking back are over past situations where they had to make similar decisions. It’s important for you to get as close to figuring out how the client is going to make their decision and what criteria they’re going to use to make their decision before you submit their proposal.

Ask questions about how they’re going to make their decision or what they consider when they’re comparing vendors. Ask them about the last time they made this kind of that decision. What factors guided them in their decision? Ask them if it worked for them.

Next, you need to try to figure out what is their most important need. This criterion should be addressed first in your proposal. And then from that point on everything should be in a similar order of importance as the client has in their own mind. The idea is to organize the proposal in such a way that it highlights the criteria the customer thinks is important. This tells the client that you’re on the same page. You meet the customer’s expectations in the beginning and they don’t need to reach further into the documentation. Mentally the client checks off that you know what they want.

There are three things to remember:

• Make yourself recognizable
• Pay attention to what they need answered
• Follow their submit submission directions

And last but not least understand what’s important to the customer. 

Web Out

Des

2Marketing is not Advertising

Or I should say, Marketing is not just Advertising. I’m amazed at how many folks think these terms are interchangable. Call up a company and ask about their marketing plans. Some will tell you, “Well, we’ve got an ad in the paper and in the phone book.” Others will say, “We just launched our newly-redesigned website.” Still others will say, “We don’t really do marketing. Just never thought about it.”

Advertising is reaching an audience through a particular medium. Selling yourself to the masses. That’s advertising, plain and simple. Marketing is a whole different animal. Marketing is wrapped up in brainstorming till you get a creative concept. Then building an entire campaign strategy behind that concept. It’s the idea, mostly. I don’t know how, but someone came up with the “Bow-chicka-wow-wah” for Axe™ Shower Gel. Then came the commercials, radio spots, provocative magazine spreads and the general idea that no matter what, if you shower with this gel, women everywhere will automatically be on you like a pack of lions on a small gazelle. All of it centered around that lust-filled cry that the woman on television uttered. No matter all the different forms of advertising was done, there was a lot of planning and thought put into that campaign. And it paid off.

Too many folks only advertise when they’re having a sale or simply because all of their competitors are. Don’t get me wrong–you should get your name out there–but how much money is wasted on thoughtless advertising instead of invested in a good, well-rounded marketing mission?

Get the idea. Formulate a plan. Reach a certain audience. Surround everything with this great idea you have so that anyone who hears it knows who it means. Your company and the concept become interchangeable. And then advertise.

1Building Business This Year

2009 is here. The economy isn’t looking so hot. It’s time to kick it up a notch. To do that, you’ve really got to be paying attention to what you’re doing every day. Every activity needs to be focused on building your business. The best way to do that is pay attention to what you’re doing. Is every activity really building your business? Is it making you money? 

Every task needs to be labeled as business building or money making. Sometimes I find myself doing things that don’t really build my business. Other times, I just don’t really realize how important some activities are to my business. It’s important to focus on what makes money and on what attracts new customers. You should be pinpointing them. 

Money Making

This is the easy part. The obvious answer is any activity you are getting paid to do.  Whenever you are on the clock for a customer, you’re making money. Another way to count an activity as a money maker is if you can sell it to someone else. A couple of good questions to determine if an activity is a money maker are:

• Am I billing someone for my time?
• Can I sell this to someone else?

The obvious answer to “Am I billing someone for my time?” is if you’re working for a client. Another good money making activity is when you’re signing on a new client. Obviously, you’ll be making money from a new client. As for “Can I sell this to someone else?” those activities can be things like designing layout templates and/or programming simple web applications. Hint: They are also good ways to hone your skills.  

Business Building

These activities aren’t necessarily associated with a client paying you money or someone purchasing some product from you. They’re about showing off, promoting yourself and building your business/social network. These are the activities that will get your name known. So how do you tell if you’re building your business? Ask yourself these key questions:

• Am I building my reputation?
• Am I meeting new contacts? 

These are tall questions, some with short answers and others that can be more complicated. The first question “Am I building my reputation?” really is about whether or not you’re doing something that focuses market/industry attention on you. My contributions to this blog and a .Net coding blog are examples of building my reputation. Other examples are things like sending out newsletters with tips to clients. You can also do this through providing good customer service, and building quality example projects.  

The second question, “Am I meeting new contacts?” would include activities that force you to meet new people. Going to Chamber of Commerce meetings, giving business building speeches, and socializing with more people always count towards meeting new contacts. Of course, meeting people isn’t the be all and end all of the activity. It only works if you actually starting landing jobs. Keeping in contact with these new contacts would also count. Things like sending out emails, postcards etc. would count as business building activities. 

Keeping Track

All these things are great in theory. The question is, how do you know you’re being effective? I found the Printable CEO http://davidseah.com/blog/the-printable-ceo-series/  to have a great set of free printable documents to track your time and what you’re doing with it.  

Happy New Year
Des

1Why So Serious?

Picture the following conversation, taken from the comments at Web Worker Daily:

Them: What do you do?
Me: I am a web designer.
Them: Oh! My dentist also does web design. He/She is really good with Frontpage and stuff. He/She even has their own website. It has something to do with geocities…
Me: Yeah. I do dental work on the side, too. I even have my own drill and chair.
Them: Huh?

I don’t know about any of you other freelancers out there, but this about hits the nail on the head for me. Anytime someone asks me, “So what do you do?” I’m wondering whether I should tell them I build websites or just leave it at “I work with computers. You?”

Because the idea exists that “computers do the work for you”, folks everywhere who commute to an 8-to-5′er assume that us so-called “web designers” basically sit around surfing the web all day. Part of it’s laughable, and part of it’s somewhat angering, because we’re looked at as though we don’t have a “real job”. How many of you reading this got into the field because it was so darned easy? I didn’t think so. Building websites isn’t done in a pinch, and yet a large portion of the general public tend to see it that way.

I figure the only way to really get folks to take us seriously is to change the way we portray ourselves. Like telling someone what we accomplished with a certain project. Instead of saying “I design websites”, tell them “We had a client that was spending $500.00 a month on paper applications. By moving them online, we saved them 75% of that cost.”

Another good way is to jump the gun a bit and directly describe how you could help whatever company they work for. Get the name and description of their company and create your own solutions on the fly.

Them: What do you do?

Me: Well, who do you work for?

Them: XYZ Company. We build lamps.

Me: My company helps XYZ get to where they can sell lamps online and education the public about lamps. We also make it easier for Google to find them and get more folks to buy their lamps from XYZ.

Of course, these are just a couple of ways that we could change the face of freelancing in a way that leaves them thinking, “I’ve got to hire them!” Instead of “Pbbth. Slacker.” I’d love to hear some of yours. How can we make the public see what we’re really about?

1The Holiday Advantage.

I love the holidays. The nippy weather, smells of all that great food and the general merriment in the atmosphere as everyone celebrates in his or her own way. If you can look past the consumerism that’s saturated the season, then the holidays can really be a great time.

I also love the holidays because it’s a great opportunity to give back to the clients that helped pull me through the year. One thing that has always come up is “How can I keep it from getting stale?” No, I’m not talking about  making sure the cookies are fresh; I’m saying how do I change it up? How do I keep from the client saying, Oh boy! Another batch of cookies?

First off, don’t give them cookies. If you must give candy, get something tailored to their profession. A great example of which can be found at The Chocolate Vault.

I might get some flack for this, but I would recommend not getting them something with your company’s name on it. Yes, I know that you want them to remember you, but there’s better ways to do that than to get them that coffee mug that has your logo emblazoned across it. That sort of thing gets put in the cubbard, along with the feeling that you are “all about the money”.

On that note, I’d also recommend against giving discounts to clients for more work around the holidays. First off, you might be too swamped to handle it, either through work or family stuff. Secondly, again, it just looks like you’re trying to get more work and it’s all you care about. Seems a bit hollow, to me. C’mon, folks! This is the time for celebration and being real with your giving. Put this on the same level as giving something to a long-time friend. You want it to be personal.

I would offer though, that you could give a client discounted work for the holidays if they’d really benefit from it. If they are just pouring work into you and have remained loyal for all these years, etc. Then cutting them some slack on pricing for the holidays might be just the gift they could use and really appreciate.

Be thoughtful. While planting a tree in their name or naming a star after them might be unique to an extent, are they really going to appreciate that? If they are an eco-green-type company, then probably. If they are a llama-wholesaler? Probably not.

Avoid the cliche gifts. Always get a card (and sign it by hand, please), but don’t get keychains, t-shirts, ball caps or coffee mugs. I liked the items listed at findgift.com Also, make sure that your gifts are useful as well as impressive. Do something that will really say to your client, “I appreciate you.”

Send your gift early. I’m already guilty of failing this one, but early November is probably the best time, because it will stand out from the crowd of meats and baked goods that they receive in between Thanksgiving and Christmas.

Keep track of your responses. Were your gifts well-received or hardly noticed? Take note and shift things next year, if need be.

Don’t be stingy. Did you hear me, there? Do NOT be stingy. Don’t buy bulk keychains because you got a deal on them. Crack open that wallet and spend the money. If you do a good job, you’ll likely get a return on your investment. Additionally, you might opt to follow the practice of giving bigger gifts to clients who bring in bigger checks. I heard about someone who said if a client brings in $XXX.00, then they get an iPhone for Christmas. Gift cards could work, but get them a full meal at a restaurant, not $10.00 from Wal-Mart.

You might also consider going traditional. All your clients in your hometown? Send them something that represents the local football team. This lawyer talked about the amazing feedback he got from giving live wreaths. Plenty of other great gift-giving info in that post as well.

All in all, be sure to retain the idea that it needs to be personal, unique and would be the same as walking up to them, looking them right in the eye and telling them, “I really appreciate that you chose to do business with us. I hope this shows that.”

What are some successful or unsuccessful gifts you’ve given in the past? Let’s hear it in the comments.

12Advantages & Disadvantages of Niche Design Firms

I spent two years as the tech lead for a company focused on live auctions and it was a great experience to deal exclusively with one market and build so many interlinked connections. I’ve frequently considered opening up a design company focused only on a particular industry (but haven’t done so yet). Rather than give you my opinions, I’d thought I’d survey some of the experts in the field. Enjoy!
Continue Reading Advantages & Disadvantages of Niche Design Firms »

4Extra Revenue Source #1: Conversion Optimization

This is the first in what I hope to be a regular series focusing on additional revenue sources for design firms. I’m a huge believer in A/B testing, multivariate testing and conversion optimization.  Essentially, the art and science of improving the effectiveness of a website - whether the end goal be a purchase, sales lead or simply increased page views.

Just recently, we added an arrow to the signup form on Handbag Planet and increased conversion over 50%.  I also added an arrow on a client’s e-commerce site and increased conversion over 10%.  This is just an example of what one small element can do.

Benefit #1: Numbers-Based Sell

One of the big benefits of conversion optimization is that it’s completely numbers based.  It’s an easy sell to clients and once you have proven success with a few clients, it gets even easier.  We’ve all run into those clients and potential clients who don’t understand why design is truly important.  You won’t have that problem with conversion optimization. Continue Reading Extra Revenue Source #1: Conversion Optimization »

4Defining this Blog: Web Design Business Help & Advice

Now that I’ve mostly completed my blog redesign, I’ve been putting a lot of thought into my goals for this blog (with a little help from Bryan Veloso too).

I want the blog to be a useful resource for designers and I’m really tired of the “1001 best resources for blank” regurgitation.  The blog also needs to fit into the rest of the site and the directory.

To that end, I’ll be focusing solely on meeting the unique needs of web design firms and freelancers from a business perspective, not a “design tips” perspective.  My future posts will address client relations, management, outsourcing, marketing and more.  I will also do frequent interviews with and profiles of leading design firms. If you have any suggestions or requests, please leave a comment.

Two posts I’m working on right now include E-mail Marketing for Web Designers and Advantages & Disadvantages of Niche Design Firms.  If this sounds interesting to you, please be sure to subscribe!

06 Killer Smarty Features You Need to Know

Smarty is by far my favorite PHP template engine. I’ll debate the pros and cons of using a template engine in another post, but I wanted to share some of the Smarty features that I didn’t know existed until I dug through the manual.

1. {cycle}

{cycle} is definitely my favorite Smarty command. You pass it a string of comma-separated values and it cycles through them. I mostly use this, as the manual demonstrates, for zebra striping tables or comments or any sort of list.

{section name=rows loop=$data}
<tr bgcolor="{cycle values="#eeeeee,#d0d0d0"}">
   <td>{$data[rows]}</td>
</tr>
{/section}

Continue Reading 6 Killer Smarty Features You Need to Know »

7New Blog Design

The urge for good design is the same as the urge to go on living. - Harry Bertoia

I’ve been working on an upgrade to the web design company directory and this design was intended to launch with the upgrade, but it’s been taking too long to complete the development and the blog was really hurting in the previous design.  So for now, this design will only be on the blog and I’ll get the directory upgraded as soon as I can.

The design was created by the extremely talented Evan Agee of Agee Design.  Evan was an employee of mine at Auction Floor, Inc. (which we both left last summer) and I’m extremely happy to have collaborated with him on this design.  I really look forward to having it up on the directory as well.

It’s not a 100% complete yet, but I’ve got some client work I’ve got to get done this weekend.  The sidebar in particular needs a little focus.  That said, what do you think so far?  What’s good?  What needs work?