VerticalResponse - Articles & Reports

Why You Should Be Geeked About Data

ozge — Mon, 23 Apr 2012 18:39:28 +0000

Column by VerticalResponse CEO/Founder Janine Popick, Inc.com "Basement to Boardroom" April 23, 2012

We ran three marketing tests-with surprising results. Here's what our data revealed about the clicking habits of customers.

For me, measurability is very important when it comes to marketing. I keep a close eye on how much money we're spending on our marketing efforts and make sure that we recoup our spend-and then some-in return. If the math isn't right, we adjust. I also want to know which leads aren't converting into customers and why, so that we can optimize our performance.

To accomplish this, we do a ton of testing at my email marketing company, VerticalResponse. Because we provide self-service online marketing tools for SMBs, most of our advertising and marketing are online and via email. This affords us a lot of testing opportunities, tracking and data. Interestingly, many of our tests end up with surprising results, which shows you should never assume anything! We tell our customers that they should always be testing their email campaigns and fine-tuning their efforts, and we definitely practice what we preach.

Here's a glimpse at three tests we've done with our own email marketing campaigns. You might find some takeaways that could be useful in your own marketing efforts.

"Download" Versus "Get"

In this test we had an identical offer and message in the email, but we changed the text within the call-to-action (CTA) button. Half of our test recipients got a button that said "Download the Guide" and the other half got "Get the Guide":

We originally assumed that the word "download" would receive fewer number of clicks, since it sounded more formal. Good thing we ran the test, because the button with the word "download" actually performed better than the word "get," resulting in 2 percent more clicks and 43 percent more in revenue!

Incentive or No Incentive?

We put together a list of customers who had signed up for a free VerticalResponse trial but hadn't activated their account. Two emails were sent out. In version A, customers were offered a discount if they activated their account and "liked" us on Facebook. In version B, no offer or incentive was included and customers were simply encouraged to activate their account.

Version A:

Version B:

Surprisingly, version B, with no offer or incentive, received 32 percent more opens and clicks. Perhaps version A required too many actions that weren't worth the incentive? What if we offered 75 percent off?

Placement of the Call-to-action

Usually, you'd find the CTA after you read some sort of description about what the email is about. One day we thought, why don't we make the CTA the first thing the recipient sees when the email is opened, above the so-called fold?

Here's version A, with the CTA ("Save $30 Now!") at the bottom:

And here's version B, with the CTA on top:

By tagging "referred-by-codes" to each banner image we were able to differentiate them in our reporting tool. Our results showed that both versions accumulated the same clicks, but version B acquired a higher click-through rate (the number of clicks divided by the number of times the ad was opened) and brought in more than 33 percent more revenue.

As you can see, testing is an integral part of virtually any marketing campaign if you want to continuously improve the quality of your communications and boost conversions. So try it out; it may do wonders for your revenue!

Have you ran any tests on your marketing efforts? Did you find something surprising?

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Articles & Reports

5 Leadership Lessons From the Business Trenches

ozge — Mon, 16 Apr 2012 19:56:04 +0000

Column by VerticalResponse CEO/Founder Janine Popick, Inc.com "Basement to Boardroom" April 16, 2012

In the age of Pinterest and Instagram, 11 years in business seems like a long time. Here's what longevity has taught me.

Forget five things; I could probably write an entire book about all the successes and failures I've encountered since I opened the doors of my e-mail marketing company, VerticalResponse, in 2001. How we did business back then was vastly different than the way things are now. (For one, this little thing called Facebook didn't even exist!). Customer expectations have changed, and the technology we have available to us is certainly more advanced now.

After 11 amazing years growing my company from four people to now over 110, here are some things I've learned:

1. Nothing's Impossible

Things that might've been unrealistic before might be possible now. Companies are run by different people at different times and your collective skill set will change. For example, I wanted to offer discount codes to our customers for many years but my team at the time just didn't have the background to engineer it. Since then, new people have come on board, along with new technology, and now we've got a promotion code engine!

2. Put Your Thinking Cap On

Every once in a while, do yourself a favor: Stay home and think. Think about what you aren't doing now but want to do in the future. Think about what the competition is doing that you should, too. Think about how your company fits into the grand scheme of things. Think about how to retain existing customers and bring back the ones who've strayed. Sometimes you just need to be in a comfortable surrounding to re-energize your brain. (Just don't use this as an excuse to go to the spa!)

3. Show Your Face

While nothing makes a bigger impression than face-to-face communication, you can't be everywhere all the time. Make the most of one-on-one opportunities with customers, like setting up live webinars, posting videos and blogging regularly to add personality and lend credibility to your business.

4. Try It Again

Simply because a certain strategy failed in the past doesn't mean it won't work today. If you advertised on Google or any other site a year or two ago and didn't get the response you were looking for, now could be the right time to try again. The site may have merged with another company or tapped into some brand-new leads, so consider giving it another shot.

5. Embrace the New

Fifteen years ago, e-mail marketing barely existed and now it's a multi-billion dollar business. Five years ago, the power of social media was largely unknown and now it's turning the marketing world on its ear. To remain competitive, you need to stay up-to-speed on what's out there and take advantage of free, simple tools, like Roost (which my company just acquired), which are rewriting the rules of engagement. Then spend the extra five minutes a day communicating with followers and trust me, it'll pay off.

Even after more than a decade as a business owner, I'm still learning every single day - from my employees, colleagues, competitors and the amazing community here on Inc.

For all the business "veterans" out there, what lessons have you learned over the years to stay in the game?

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Articles & Reports

Business Meeting Etiquette: 8 Pet Peeves

ozge — Mon, 09 Apr 2012 19:46:55 +0000

Column by VerticalResponse CEO/Founder Janine Popick, Inc.com "Basement to Boardroom" April 9, 2012

Do your days consist of meeting after meeting? Master these eight don'ts to stay focused and distraction-free.

Meetings. I'm not a fan. Look, I know they're necessary for progress, but in my opinion too many people get caught in the "let's take that offline and not really chat about it and make a decision, but let's schedule a time in the future and block out an hour and not make a decision" mode. I believe that most meetings (not all) could be done with a quick stand-up conversation.

So when you must have a "necessary" meeting, you want to make the most of it, right? You want the right people there without having too much overhead, and you want everyone to be paying attention, listening and making the most of their time. The arrival of cool tools, smartphones and iPads makes meetings and taking notes easier, but the flip side is that it could make you look like you're not attentive.

At my e-mail marketing company, VerticalResponse, I emphasize that time is valuable and everyone needs to be cognizant of this when scheduling a meeting. In your next meeting, look around and calculate how much it costs. Then ask yourself: Will what the company get out of this make up for more than the cost?

Here are my eight suggestions for having more effective, distraction-free meetings:

If you require your laptop or smartphone in the meeting, announce that you'll be taking notes on it so people around the table don't think you're doing something else.
If you're using your phone or laptop, do not open instant message or check e-mail. People will - and do - notice that you're not paying attention.
If your phone rings or buzzes, don't take it unless it's an emergency. If you have to take it, step out of the meeting room. Just recently, I met with a potential vendor where, in the first 10 minutes, the vendor's director of sales sat reading something on his phone and taking calls. Bad form. He should have stepped out of the room to take his call.
Avoid side conversations while the meeting is going on. It's distracting. Take it offline. Even worse? Never put up your hand to cover your mouth while talking to your neighbor. Rudest move ever.
Don't get ready for your part of the meeting in the meeting. I have stopped meetings to ask if that's what a colleague was doing. To me, it means they didn't have enough respect for the person holding the meeting to complete their updates. Even worse, they're not listening to what's being said since they're too busy writing their part of the presentation.
Don't repeat what someone else in the meeting has already said and take credit for it: a) it's a time-waster, and b) everyone in the room knows what you're doing.
Don't escalate your voice to talk over a colleague. If you have to use volume to get your point across, it makes me question how confident you really are in the point you're trying to make. And there's usually enough time in a meeting to get a quick thought or idea out without raising your voice. Not to mention it's just rude.
Don't take your shoes off. I once had a colleague who removed his shoes so his socks were in the wild, and then he'd lift his body yoga-style into his chair. It was rude and completely distracting.

For your next meeting, make sure your attention, and everyone else's, is laser-focused on the topic at hand and what you need to accomplish. Don't let distractions get in the way, whether you're running the meeting or attending one.

What are your meeting nightmares?

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Articles & Reports

Marketing Lessons From the ‘Little Guys’

ozge — Mon, 02 Apr 2012 19:34:54 +0000

Column by VerticalResponse CEO/Founder Janine Popick, Inc.com "Basement to Boardroom" April 2, 2012

Big businesses need to lighten up, get creative and take a few cues from small business owners.

It's usually assumed that when it comes to marketing, small businesses can always learn from their larger counterparts, right? Chances are, the big guys have survived their fair share of marketing campaigns, whether good, bad or downright ugly. Factor in an ample marketing budget and a well-paid marketing team and they're probably light years ahead of smaller businesses. But is that really the case? I beg to differ.

Corporations tend to keep a closer eye on their bottom line, which means they're far less likely to take risks or test out new ideas. Conversely, the folks in charge could also decide to gobble up every last penny in the budget knowing if they don't use it now, it might not be there next year. But what if those dollars came out of their own checking accounts? They'd certainly think twice before spending it now, wouldn't they?

Most small business owners experience pangs of guilt after opening up their pocketbooks. I know I did when I first launched my e-mail marketing company, VerticalResponse. It seemed like every dollar spent on advertising was one less dollar going toward buying new supplies or technology, hiring employees or even clearing their paychecks. It's a pretty tough pill to swallow. Because every dollar is so important, small businesses want to see results for everything they spend, and they want to see them quick.

That's why small businesses must be super creative when it comes to acquiring customers. Here are some things that I think small businesses are doing good that larger companies might learn a thing or two from.

Grassroots Marketing

Remember the days of good ol'-fashioned face-to-face networking? Ever see anyone from a huge corporation at a local Chamber of Commerce function? Small business owners frequent these gatherings and network like there's no tomorrow, because a lot times this is their only opportunity to get out of their store or office to meet like-minded people. The San Francisco Chamber, for example, holds after-hours events where local business owners meet, exchange ideas, establish leads and stay in touch however they can. Bigger companies should follow suit by designating community coordinators who can get to know owners by name and attach real, human and hopefully smilling faces to corporate logos.

Social Networking

Small businesses excel at building genuine connections, engaging existing customers and leveraging their networks to secure new prospects. Take San Francisco-based pet boarding facility Pet Camp. They keep in touch with e-mail marketing and include lots of easy-to-share content. They take photos of their campers and post them to their Facebook page (often with hilarious captions), so proud moms and dads can check in on their four-legged family member while away. Of course, larger companies do encourage social media participation - as long as employees follow their gazillion-page social media rulebook. Now I'm not saying social media should be a free-for-all, but companies of all sizes can benefit from having a personality and some flexibility when it comes to social media.

Over-Delivering

In order to set themselves apart from competitors, "mom-and-pop" operations realize a few extra touches make all the difference in the world. I once bought a pair of shoes from a seller on eBay. The package not only arrived in pristine condition, but came with a free shoehorn, leather protection and hand cream. Talk about making the most of your packaging real estate. When was the last time you were treated to a freebie by Amazon?

Being Human

Small businesses do a great job at showing what happens behind the scenes, which helps establish a stronger and more genuine connection with customers. Sonoma, Calif.-based winery Longboard Vineyards encourages readers to learn about Oded the owner, his passion for wine-making and his loyal Longboardians while browsing photos of the lush grounds and their trips to Costa Rica and San Diego. What an great way to immerse people in the company culture.

Lightening Up

Many entrepreneurs start their own businesses for the chance to do what they truly enjoy, not to make it to the top of the corporate ladder. Customers sense this the moment they enter their stores or visit their websites. Vermont's Magic Hat Brew Company injects fun into everything they do, whether it's telling folks about upcoming events or where to buy beer. My own company once shot a rap video to increase awareness of what we do and years later, it's still getting views.

I challenge big businesses to lighten up, get creative and take a few cues from small business owners. Urge your CMOs to pretend they're spending their own money and you'll be surprised at what they come up with to battle the competition and the "little guys." But watch out, we're sure to put up a fight!

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Articles & Reports

Teen Entrepreneurs Win Big

ozge — Thu, 22 Mar 2012 19:24:06 +0000

Column by VerticalResponse CEO/Founder Janine Popick, Inc.com "Basement to Boardroom" March 22, 2012

A growing number of young entrepreneurs are launching serious businesses with great potential--and many of them aren't even old enough to drive.

"People at other jobs treated me as a kid. Here, people treat us as professionals," says 17-year-old Austin Bergeron on why he wanted to start his own business. Austin is co-founder of StudioVictus, a multimedia company that counts the New Orleans Hornets as an official client. (StudioVictus created the team's first mobile app.) He started the company late last year with three friends–all seniors at Destrehan High, near New Orleans–who have similar career interests.

I started my first business when I was fifteen. My babysitting service dominated the neighborhood! But I definitely had no aspirations to turn it into a career. Today, however, there's a growing number of young entrepreneurs who are launching serious businesses with great potential and many of them aren't even old enough to drive.

Helping small businesses grow is my sweet spot, so my e-mail marketing company, VerticalResponse, decided to launch the "Next Teen Tycoon," an online video competition earlier this year. Our goal? To help teens between 13 and 18 years old bring their businesses and business ideas to life with "seed cash" and other prizes totaling more than $10,000.

In a few short weeks, we had almost 40 video entries from kids all across the country pitching an amazing range of businesses, from bakeries to video production companies, online apps to fashion brands, radio shows to non-profits.

Eleven finalists were chosen via public online voting. Out of the finalists, one grand-prize and two second-place winners were chosen by a panel of judges that included Arel Moodie (author, Your Starting Point for Student Success); Daniel Brusilovsky (CEO, Teens in Tech Labs); John Jantsch (founder, Duct Tape Marketing); Nicole Marie Richardson (executive editor, Inc.com); Ramon Ray (editor, SmallBizTechnology.com); Steve Mariotti (founder, Network for Teaching Entrepreneurship); and yours truly.

Thanks to the contest, I got to know grand-prize winner Jason Li, age 15, founder and CEO of iReTron, an online e-reuse business that allows people to trade in their old cellphones and other electronic gadgets for cash. In his video, Jason takes us through a few simple steps on how to get a price for your device, ship it and get paid, and it's all done through the iReTron website. Once he receives the phone, he'll inspect it to make sure it's still fully functional and then sells it abroad, where there's still a demand for our "gently used" technology. Although the iReTron site officially launched just late last year, Jason has already completed more than 500 transactions.

As the grand-prize winner, Jason will receive $4,000 from VerticalResponse to help grow his company, as well as a free trip to the TedXTeen conference in New York later this month.

The competition also drew lots of attention to 2nd-place winner Jack Uesugi, age 16, founder of an apparel brand and online community of artists called a1000x (A Thousand Times). Hailing all the way from Wahiawa, Hawaii, Jack found out about our contest through Facebook and submitted his video just a couple of days before deadline. We're glad he made it! Jack will receive $2,000 in "seed cash" from VerticalResponse.

Although he grew up in a family of artists, Jack developed an interest in the business side of art. Ever the entrepreneur (in elementary school, he re-sold vegetables from the farmers market at a profit), he came up with the idea of helping local artists promote and market their work by creating and selling limited-edition, screen-printed tees and other merchandise featuring their designs. With the motto "Give More. Get More," a big part of the business is social entrepreneurship, and Jack is donating a large portion of his company's profits to charity.

Then there's StudioVictus and co-founders Austin, Matt Duhe, Joe Solito and Joshua Stoker, who've all known each other since elementary school. As 2nd-place winners, they also will get $2,000 from VerticalResponse to expand their business. The team helps local businesses with all things related to multimedia, from photography and Web design to music production and presentation consulting. Since forming in November, they've completed about 10 projects so far, with several more in the works.

Check out all three winning videos here. I'm thrilled to support these up-and-coming teen entrepreneurs and expect only amazing things in their futures.

Now that you have an idea of what today's business-savvy teens are up to, tell me: Did you have a business as a kid? If so, what was it?

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Articles & Reports

All-Hands Meetings: Friend or Foe?

ozge — Wed, 14 Mar 2012 19:21:17 +0000

Column by VerticalResponse CEO/Founder Janine Popick, Inc.com "Basement to Boardroom" March 14, 2012

The last thing we need are more meetings, but having a company-wide gathering will allow you to make sure that everyone is marching toward the same goals.

I admit it, all-hands meetings are a tough one, especially if you've got a larger small business. At my company, VerticalResponse, we were once split between two floors in a building and didn't have the luxury of space to get everyone together. Once we had a webinar because it got cost prohibitive to get everyone into a local hotel meeting room. Not to mention, I'm not a fan of huge meetings. (My team will tell you that!) I want to talk to everyone about the future of the company and get them as jazzed as I am about it, but I also know it takes a ton of people away from their jobs, and some might look at it as a PITA (pain in the a**).

On top of it all, if my team knew how much I belabored the details of the company meeting, they'd die. Why? Because there's no BS. I'm talking to people I know, love and trust. They work tirelessly for our customers and I care about each and every one of them. I underestimate the power of my enthusiasm to get people excited about what we do every day, because sometimes the big picture is lost in the details of everyone's daily life.

But I've come to understand more and more that this is exactly what's needed in our company, and likely your company. The organization has to be marching toward the same goals and if one part of the team isn't, you know it right away.

Of course, after an all-hands meeting you might get some not-so-positive comments back. You didn't highlight enough departments (you never can). You didn't single out and give kudos to all of the members of the team you could have (you never do). You could have gone deeper into the XYZ topic (you always could). But generally, if you've got a great message to deliver to your team, and you get them excited about where you're going as a company, you need to be doing these meetings more often than not–at least quarterly, in my opinion.

Right after our company-wide meeting, all 100-plus of us get together and have pizza, because people are abuzz about what we've just talked about, and they want to know more and they want to contribute–which is exactly what you want in your team.

So what we've found to be the best way to communicate to our team is over-communicating. We've got monthly newsletters where each department can describe what they're working on and what they've accomplished. The execs take employees from different teams out to lunch for an open forum so they can ask questions (and so can we!). And now we're going to do all-hands meetings more often, because the more information your team has, the more they're likely to care.

Do you have regular all-hands meetings? Love to hear how they go!

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7 Free Apps That Will Make Life Better

ozge — Tue, 06 Mar 2012 19:13:56 +0000

Column by VerticalResponse CEO/Founder Janine Popick, Inc.com "Basement to Boardroom" March 6, 2012

These free (or next to free) apps promise to make your life easier.

Who doesn't like the word free? I know I sure do. The great thing about being an entrepreneur these days is the huge variety of free or low-cost online business tools out there to help keep everything organized and your company running smoothly. It seems like every day I hear or read about a shiny new app or service promising to save me time and money. It's hard to resist saying, "Sign me up!" … Especially if it's free.

Here are seven free (or next to free) business tools that I can't live without:

Animoto - We've all heard how video can increase engagement with customers and attract more eyeballs than just text and pictures alone. But getting a video produced can be pretty expensive. About a year ago, I needed to create a quick video for an employee get-together. I hopped onto Animoto, uploaded a bunch of employee photos, selected a music track from my library and voila! Everyone loved it, and I didn't need any fancy video editing software. Cost: Tiered pricing, beginning at free

UserVoice - With UserVoice, small businesses can quickly set up a feedback forum and/or helpdesk where customers can submit (and you can track) customer support tickets. This is especially useful if you aren't at a point in your business where you can have a customer support team or call center. You want your customers to air their concerns in a place you have complete access and control over, versus a third-party forum, as much as you can. Cost: Tiered pricing, beginning at free

Roost - Full disclosure: My company, VerticalResponse, recently acquired Roost … largely because it has a strong reputation for being a super easy social media marketing tool for small businesses. With Roost, you can view and schedule your Facebook, Twitter and LinkedIn posts in advance. It also provides suggested content, like news articles and quotes, based on your industry and interests – so you don't have to waste time searching. Cost: Free

Evernote - I admit, until January of this year I was one of those people who still jotted down notes and ideas on paper. One of my resolutions for 2012 was to organize all my thoughts via Evernote, and now I'm addicted. I have it open all the time on my computer, and the iPhone mobile app is a breeze to use whenever I'm on the road and see or think of something I want to follow up on later. Side benefit: I can clip recipes from the Web and have the ingredients list on my iPhone when I'm at the store. Cost: Free for basic version

Join.me - Virtual meeting providers like WebEx and GoToMeeting certainly offer lots of bells and whistles (with price points that show it), but there are others out there that offer similar features – for the cool price of free. With Join.me, viewers just have to type in your code onto the Join.me home page for instant access to your screen, no app for them to download required. Cost: Free for basic version

Instagram and Postagram - Think Instagram is just for hipsters? Think again. The ability for someone to follow, comment or share photos in your Instagram gallery is another way for people to engage with your content – especially if Instagram's artsy aesthetic reflects your brand. And with Postagram, you can send those cool photos in postcard form – a blend of old-school and new, and another great opportunity to get in front of customers in a pleasantly surprising way. Cost: Free for Instagram, 99 cents per Postagram postcard

Granted, there are countless tools that I've tried out and for various reasons, and they just keep comin'. Just like a good pair of jeans, you might need to do some shopping around to find the ones that truly are a great fit for you.

What business tools are in your everyday arsenal, and how have they improved your life?

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5 Ways You Are Turning Your Customers Away

laura — Mon, 27 Feb 2012 20:51:09 +0000

Column by Janine Popick, Inc.com "Girl Power Female CEOs" February 27, 2012

Are you losing customers without even knowing it? Make sure your business and employees aren't suffering from these easy setbacks.

Take a look at your business and see if any of these pitfalls could be turning your customers away:

1. Employee Chatter
How many times have you walked into a store and you hear employees talking to each other about their shifts, the fact that they hate working today, or how they can’t wait to get off work to go clubbing tonight? It happens more often than you think and it might be happening right within your walls. Your customers want a pleasant and positive experience with your business, whether they’re on the phone with your sales team or in your store or office. Let your employees know how important it is for them to focus on the customers and save the idle chit-chat for when customers aren’t around.

2. Phone Tree Hell
Have you ever called your own business phone number to see what the customer experience is like? I do it all the time. If your phone tree has lots of branches and your customers or prospects can’t get someone to talk to in a quick and easy fashion, you could have lost them forever. Don’t greet your customers on the phone with the “Please listen to the following as our menu has changed” message. That takes a solid five seconds that a customer could be in touch with you faster. Also, assess what most of the calls coming in are concerning. If they’re usually about a specific topic, then that should be the “Press one for … ” option. If you’re selling out of a specific product or you have an issue that your customers might be experiencing, you can set that to be the first thing callers hear. Don’t be afraid to change your phone tree.

3. Mobile Mania
Have you ever had to wait for someone to get off his/her mobile device before helping you? Think of a customer coming into your business and experiencing the same. It’s maddening. I’ve literally been at a restaurant and waited for 10 minutes before I was asked if I wanted a menu simply because the wait staff was updating Facebook. And it doesn’t only happen at retail locations; it happens in the office environment, too.

At my small business marketing company, VerticalResponse, our employees used to always have their laptops on or type away on their mobile devices during meetings. It was terrible and had to be curbed; no matter how good you are at multi-tasking, you’re going to miss something important if you’re typing away. It shows a lack of respect for your customers or co-workers and it says to them that whatever's happening on your phone or laptop is more important than everyone else’s time. And time is money. Make sure your employees put customers first, before texting and Facebook, and if they want to do those things, then it should be during their breaks.

4. Inconsistencies
If you’re a customer and you like to frequent a particular business, you expect a certain level of performance that you’ve grown accustomed to, whether it be a website that works properly or the quality of a meal at a restaurant. If you think you have the best pizza in New York, it better be the best pizza every single time you serve it. If your customer service is outstanding, all of your customers need to experience that outstanding service each and every time. Remember that your repeat customers are telling your new prospects about their experience, so make sure it’s always the same stellar experience.

5. Welcome! (Or Not?)
Have you ever walked into an office building and had no one pay attention to you? Or ever shopped at a store and no one asked if you needed help? My husband walked into a local store, shopped for an item for about 10 minutes and none of the four employees (who weren’t busy) asked if he needed help. He then brought his purchase to the counter and gave the check-out person his credit card. The entire transaction happened without a word. Really? The Gap makes it someone’s job to welcome people into the store. Restaurants have hosts that greet you and get you seated. Offices should have some way of knowing when a visitor has arrived. Make sure you and your people are smiling and welcoming newcomers into your place of business; you never know who they might be.

These five things may sound very simple to avoid, but they could be happening right under your nose!

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The Customer Is Not Always Right

laura — Wed, 22 Feb 2012 21:22:15 +0000

Column by Janine Popick, Inc.com "Girl Power Female CEOs" February 22, 2012

In some rare cases it may become necessary to fire a customer that disrespects your team. In those cases, show your team that you have their backs.

I know some of you who just read this headline are clutching your proverbial pearls, especially if you’re in the business of serving customers. And really, we’re all in the business of serving our customers, so I don’t really believe this headline, either … for the most part. Let me explain.

I love listening to everything our customers say about our self-service online marketing tools, including new features they want and changes they want to see. It only helps my business. I try to instill in everyone that works here at VerticalResponse that going above and beyond with our customers is important.

Since a big part of what we do is helping small businesses create and send e-mail marketing campaigns, there are a few essential things we must deliver on in order to have happy customers: 1) Ensure that our website and online tools are up and running fast for the thousands of people who use them everyday; 2) Ensure that our customers know how to use our features; and 3) Most importantly, ensure their e-mail campaigns are delivered to their subscribers’ inboxes. We work day and night so that all this is running smoothly during a customer’s experience with VerticalResponse.

But every now and then, someone’s experience isn’t perfect, through no fault of ours. We once had a customer who we worked diligently with to make sure he was going about his e-mail marketing campaigns in the proper way. We cleaned his lists, made sure he was sending e-mail only to those who requested it, and kept a close eye on people who were complaining that they were getting e-mails when they didn’t request them. Repeatedly, this customer disrespected our requests and kept attempting to send questionable e-mail to questionable recipients. (I’m sure you’ve all gotten e-mails in your inbox like this.) So inevitably, we had to ask him to leave our services.

That’s right, we “fired” a customer.

Here’s a note from this customer, “Gloomsale” (name changed to protect the guilty), to our very hard-working e-mail delivery group:

As CEO, I have a $7-fig salary and well connected … You don't. My time is valuable, yours, less so. Different levels. … Should I blog and rant about this all over the web and stamp my CEO on everything? Would that get VR more customers or less?? Be smart, don't F w/ my time.

Some of you might think it’s never appropriate to call a customer out. But in this case, I did, and I don’t think he was prepared for it since I haven’t heard from him or seen anything published about us as he promised. I politely e-mailed him back and told him that we didn’t agree with his e-mail practices and that our team went above and beyond to help him, but he didn’t reciprocate our goodwill. And I reiterated that we just wouldn’t be able to make it work with his business.

Why did I do it?

This customer was abusing our service after we tried to work with him for months
My team works hard and they don’t need to be belittled by someone who touts that he has a seven-figure salary
My employees need to know that I've got their backs

I think that our team did the right thing by continuing to be polite to this customer and kill him with kindness. But they gave me the opportunity to decide, as the business owner, if I wanted to have a say in this exchange. I can guarantee you that my team was pretty excited that I took the opportunity to stick up for them and the company. No business needs to be abused by the customer. They’re not always right.

Do you have an experience where your customer wasn’t right? Did you call them out? If not, why?

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Articles & Reports

4 Reasons Business Partnerships Fail

laura — Mon, 13 Feb 2012 21:40:12 +0000

Column by Janine Popick, Inc.com "Girl Power Female CEOs" February13, 2012

Keep your eyes open for these red flags; they could make a partnership go off the rails.

For a business to succeed, you may need to look to partnerships in order to grow. You may want to offer another service to your customers, or another business might want to offer your services to their customers because it’s not a core competency of theirs. Either way, stars need to align, customers need to be happy and both parties need to take it seriously if any partnership is going to succeed.

But what happens when a partnership fails? You never enter into a partnership with this in mind, but it could happen and there are myriad reasons why things don’t work out. So keep your eyes wide open for a few red flags that might make a partnership go off the rails.

1. Mismanagement of Expectations. When you go into a partnership with another party, set your expectations for what success will look like upfront. This way, if you or your partner starts to see that the number of sales isn’t up to snuff, or the number of new customers you thought you’d drive is looking low, you can reassess and make necessary changes.

2. Teams Change. I can’t tell you how many partnerships we’ve done in my 11 years at VerticalResponse where, over time, you feel like you’re re-introducing yourselves and your teams to each other because of turnover. Make sure you keep in contact with your partners on a regular basis. Weekly check-ins or reports work really well to make sure you’re both top of mind with each other; plus, you might find that you’ve got ideas to make it even better.

3. Company Direction Changes. Keep tabs on what’s going on with your partner and their company by subscribing to their blog and getting a feed of their press releases. Keeping up to date on what’s happening with their business prepares you for any sudden changes that may occur.

4. No Skin in the Game. Does your partner need what you offer to succeed or vice versa? With partnerships, you generally want both parties to get something out of the deal. So if you put your money where both of your mouths are, chances of success are much greater. You may want to put a monthly sales minimum out there so that if your partner’s customer(s) aren’t going to generate enough sales, they should pay you a minimum. This way, they’ll be thinking more about how to make the partnership a success.

Partnerships can really work, but they have to be cared for. One more thing: Having a contract in place is a great idea. This way, if the partnership doesn’t work out for any reason, you or your partner can point to a piece of paper and call it quits. Have an “out” clause that says you can get out of the partnership if explicit expectations are not met. Neither of you want to be part of a partnership that isn’t working out; after all, time is money and cutting your loss and moving on might be just what you need.

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Articles & Reports