Ask an Expert: Don't lose sight of business basics

Date AddedAugust 30, 2009 11:40:01 PM

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By Steve Strauss for USA TODAYThere is so much conflicting advice out there - Watch your overhead! Advertise more. Advertise differently. Don't cut your marketing budget right now. Get into social networking, etc. Can I just say that I have been through several recessions and I am still around. What works? What has always worked? Provide a good service at a fair price. Be smart. React. Treat your people well. It's not really a secret. - Reggie
I like your old school thinking, and I appreciate your advice. In this high-tech, 24/7, always-tuned-in era, it is easy to get caught up in thinking that what is new and different must be better. I certainly fall into that trap sometimes, but indeed it is not always true.
The tried and true is tried and true for a reason.
Case in point: I was recently in New York with my wife, and for a treat we went to eat at the legendary Smith and Wollensky Steakhouse. It was a great restaurant for sure, don't get me wrong - but it was darn expensive. Was I heard to say, "The steak and service at our Outback Steakhouse at home is as good as this, and it sure is a lot more affordable"? You bet.
And the next time I went to that Outback I looked a little more closely. It was clearly a cut above, not only above other similar franchises, but most other restaurants, too. The service is top notch, friendly and efficient, the food is always excellent, and it is also almost always busy, which is not a small feat in this economy.
Not surprisingly, the man who greets every customer who comes in the door is the owner - Jason Bender. When I asked him what his secret was, why his business was succeeding in such a difficult time, his advice was decidedly old school:

· "It's all about your people" - whether its customers or employees, helping them helps you.

· "Make it local" - especially with a national franchise, but really with any business, Bender believes that contributing to local charities and participating in local community events creates connections which pay off for everybody.

· "Business is a marathon, not a sprint" - think long-term.

This idea, that old school business values, traditions and strategies, can still make a big difference in this e-world, makes a lot of sense. So often these days things like leveraging assets, social networking, e-commerce and branding are discussed so much that they may seem more important than traditional business factors like service, value, hard work, appreciation, courtesy and know-how.
But they are not.
As I drive around town, or speak around the country, it is shocking just how many empty storefronts there are out there right now. I am sure you are having the same experience. Some of these businesses were big, but most were small.
What did they do wrong? Of course this is a tough time for businesses; maybe they did nothing wrong. Maybe they just ended up with a bad lease or lost a big client, or what have you.
But let's also look at what those who are not only sticking around, but thriving, are doing right - folks like Outback's Jason Bender or the reader Reggie above.
They know that in order to succeed in any economy, but especially this one, you have to stick to the basics. Make sure the people with whom you work know how valuable they are. Treat them right. Offer exceptional service at a fair price. Create extra value. Be great at what you do.
Those things never get old.
Today's tip: And what would a column be without some new tricks, too? The greatest bookstore in the world is Powell's Books- it takes up a full city block, is three stories high, and new books sit right next to used books. It is a bibliophile's paradise. And even though they have a robust online presence, Amazon.com they are not (who is?) So what do they do? How do they compete with such a big competitor?
One way is a new version of an old school idea - they offer great service and added value. For example, Powells.com queries people when they sign up for their great online e-newsletter - what sort of books do they like? Do they like first editions, rare books, autographed books, or what? Whereas most of us send the same mass email or e-newsletter to our whole list, Powell's sends out highly targeted emails; emails that specifically would be of interest to specific customers. Powered by a company called Exact Target, Powell?s email campaigns boast open rates are almost 70% and their click-throughs are over 20%. Those are amazing numbers.
Exact Target also powers USA TODAY's e-mail newsletters.
So the tip is this: Drill down and find out what your customers are really interested in. Ask them. Then create emails around that, and use your subject line to get their attention. It works.
Ask an Expert appears Mondays. You can e-mail Steve Strauss at: sstrauss@mrallbiz.com.And you can click here to see previous columns. Steven D. Strauss is a lawyer, author and speaker who specializes in small business and entrepreneurship. His latest book is The Small Business Bible. You can sign up for his free newsletter, "Small Business Success Secrets!" at his website -www.mrallbiz.com.

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