Archives for November 2010

How to Become an Expert in Your Customer’s Eyes

One of the founders of this website (www.likechapaa.com) is a trained accountant. When we started Like Chapaa, it was very much (and still is) a for-profit venture. Along with wanting to help people, we wanted to make money with this site. Now, none of us was what you call a “computer” or “Internet”, or even “business” expert. But we believed in ourselves and we believed that we know how to do things with computers and the Internet that make business sense. The problem was how to convince people – our customers – that we really did know our stuff.

Are you faced with this problem? How do you become an expert in your customer’s eyes? How do you become the person the customer most wants to work with? How do you then increase prices 300% (which we have done) and still have customers wanting to work with you?

I mean, think about it. Would you hire a boring old accountant to do your website or even just improve it? Would you hire an accountant for anything other than accounting? That’s the kind of challenge that we faced. No one knew us as experts. Now, it didn’t matter how many times we looked in the mirror and called ourselves experts. We still were not getting any respect, let alone money in the bank. And it drove us crazy.

(For the record, I would personally not hire an accountant for anything but accounting!)

Interestingly, that is precisely why Like Chapaa was born. We thought that the easiest, fastest way to convince the world that we knew what we talked about was to start a site and write about the content of our brains. We started Like Chapaa to show the world what we knew. So yeah, we started pole pole but surely. We wrote articles. We used to get 7 visitors a day but we continued writing articles. Day after day, week after week. It was hard, extremely hard – and we had few, if any, successes right away.

Then it all changed. We suddenly started getting emails and calls. Emails and calls from people who wanted us to work on their websites, their Internet strategy, their projects, and so on. We had planned for this, but the success of our little plan shocks even us.

A lot of people struggle with marketing their business, and we did too. But we figured we could either go nuts calling people and walking the hard roads of Nairobi, or we could sit at our computers and write an article. And have a customer call. (Ooh, I did like the sound of that phone ringing). That is the power of the Internet, if you ask me.

Information is expertise – just ask any author; any consultant; any trainer. Just ask us.

The thing is, anyone can do this. You do not need any special qualifications; all you need is creativity, imagination and time. You have all three so go for it!

If you need any help you can always hire us to help you, you know?

Interesting Kenyan Sites #15

Rupu.co.ke – this is a group marketing tool that features heavily discounted deals for products and services from various industries. It is yet another Kenyan “deals” website made in the mould of Groupon. Though the site lacks somewhat in content, I find it to be very well designed and the people behind it seem to have a solid plan on social media marketing. Kudos and good luck to them.

GotIssuez this is a place where you can rant and rate issues that affect you. It is a nice idea, eh? If Safaricom, or KPLC, or anyone elses pisses you off, you can talk about it at gotissuez. Really nice idea and well executed, so far. I only displike the design a little bit.

50-50
Elma – we wrote about Elma a while back. While I really like what Elma promises to offer, I don’t really like their website. The design is okay, but I feel they can (and should) have put more effort into making the site more interactive. They are, after all, collecting people’s views – they should have made all of the user-generated content available online (right now they only display a selection of the latest ‘wishes’). I feel that their objectives may have been better served with a more interactive and ‘social’ experience (and this could easily be achievable by making all the user ‘wishes’ available and enabling people to comment on them. Still, good effort.

Flops
KwaSwa – these guys are web designers offering to make you a site for Kshs 7,500/-. However, I find their own website to be a little lacking. For instance, this page is currently inexistent even though it is a prominent link on their site. I would also argue that since they are web designers, their site should more visually appealing.

Churchill.co.ke – I presume this is Churchill’s (the comedian) website. It is currently down and has been down for a while. Somebody isn’t taking care of the site…

Churchill Kenya fail

Churchill fail (click for larger image)

What is Elma?

I’m sure some of you have seen an advertisement in the Daily Nation for www.elma.bz. Are any of you, dear readers, wondering what Elma is?

Elma is a mobile /online payment gateway for Kenya, done by Craft Silicon in conjuction with some selected banks. The service is almost ready to launch (it is undergoing final testing).

Reportedly, it is a mobile application (that you download) that would allow you to shop and make payments (cable TV, power & water etc) from your mobile phone, using your elma account which would be linked to your bank account(s). It should also allow you to top up your M-PESA account from your bank account (but not the other way), pay school fees, make donations (to charity for example) etc.

Source: Skunkworks Kenya.

Is this the local payment system we’ve all been waiting?

How to Increase Your Revenues By Reducing The Number of Customers

“Would you Cut the Number of Customers you have in Half if You Could Increase Your Revenue?”

On the surface, it seems like a strange question. As a business, more clients is always better than less clients (or so you think). But you have to remember where this question is coming from. What if you could successfully create a business in which you make the most money possible with the least amount of effort (and the headaches that go with it)?

The High Maintenance Client
Don’t get me wrong – you always want a lot of clients and it’s a good problem to have. However, you ideally want the best type of client. The high maintenance client is the WORST type of client because they take up all your time with calls, e-mails, fighting over bills, etc. The time you spend working with the client costs you more money than you ever make from that client.

The problem with high-maintenance clients is that they are very hard to identify. But the fact is that the more clients you have, the more high-maintenance clients, and the more headaches you have to deal with.

Double Your Prices and Lose 40% of Your Clients – Awesome!
This is one of the keys to creating a business in which you make the most money possible with the least amount of effort. Maximize the revenues from each client and if that means losing a lot of clients, you are ahead. Take a closer look at that statement.

Let’s say that you were charging your 50 clients Kshs 1,000 per month, so you were making Kshs 50,000 per month.

Now, let’s say that you doubled your price to Kshs 2,000 per month and because of that you lost 40%, or 20, clients. You still have 30 clients, paying Kshs 2,000 per month or Kshs 60,000 per month.

You lost 20 clients, which means less operations, less support, and less administration, etc. but you gained Kshs 10,000 per month! And that’s not just Kshs 10,000 total. With the reduced overhead and operational expenses, you probably gained even more than that in profits.

Even if you lost 60% of your clients and now made just Kshs 40,000 per month, but you reduced expenses by Kshs 10,000, you’re still ahead. You have more time and resources to commit to those activities that will bring you more money.

But before you just send out a letter to all our clients saying that you are doubling their prices, there are some things you should be aware of.

How and When to Raise Prices

  • Don’t Raise Prices in a Commodity Business. This strategy does not work if you have a commodity type business. If someone can go to your neighbor and get the same product for half the price, you will lose most of your customers. This only works if you have a niche product or service that is differentiated from what other companies offer.
  • Don’t Raise Prices on Existing Clients. The way that you can implement this strategy is on new clients. You will piss off a lot of existing clients if you raise their prices all of a sudden and it’s not worth it. But when you start marketing and selling to new clients, raise the prices on them. They do not know the old price so they will not be pissed off and while your conversion rates will be lower, you will see more revenues and less headaches in the long run.
  • Get Clients First. One of the first mistakes that we ran into when we tried to implement this strategy is that we did it on a new product that we were offering. It was a type of marketing website and while it was a good niche product that wasn’t commodity based, we had no idea what the market would bear. Looking back, we should have just started selling it very cheaply and then once we got some momentum, we would have raised the price to what we think the market would bear.

How to Succeed in Business in Kenya

“Our greatest weakness is giving up. The most certain way to succeed is to try just one more time.” – Thomas Edison

I had the priviledge of hearing Joanne Mwangi, whose company, Professional Marketing Services, was voted the best of the top 100 SMEs in East Africa. Joanne spoke at length about entrepreneurship and how to start/run your own business. Here’s some nuggets of information shared by her:

First, the most important thing about starting your own business is that you have to choose the right type of business to start. Your choice needs to be:

  1. Something that you are very, very good at
  2. Something that you love
  3. Something that can make you real money

Do not copy what others are doing. Joanne gave an example of the ‘phenomenon’ that a few years back it was it was almost a “fashion trend” for people to go to Dubai to buy things and come sell them in Kenya. Most people who did this did it only because they heard that it would make them a lot of money. Starting a business by trying to copy someone’s success is not a good idea.

Think Big. let your dream be as big as possible. if you think small, you will find that there’s an upper limit to the amount of success that you can enjoy.

Other pieces of advice:

  • Do not give up until you have been running your business for at least 18 months
  • Hire right
  • Take intelligent risks
  • Accept failure and move on
  • Never stop learning
  • If you help others, it almost always comes back. Therefore, share your experience and advice with others and train and mentor others if you can.
  • Pay yourself a salary. A real salary.
  • Pay your taxes!
  • Embrace God in everythign you do.

Stop Whining!

There are a lot of legitimate reasons for being unemployed right now. However, if you are a recent or soon-to-be graduate you should really stop whining. Just because you got a degree does not qualify you to be employed. Sorry that nobody told you, but it takes a lot of work outside the classroom to get a job.

Many industries are hiring. There are plenty of jobs out there. Do the work to find them. Figure out what it takes to stand out and seem more qualified. Sending your resume in doesn’t count for a damn thing. Complaining and whining endlessly counts for even less.

Interesting Kenyan Sites #14

Umba.co.ke – Umba.co.ke is a website where you can purchase furniture online. It is also an example of an exceptionally well designed Kenyan website. Most Kenyan online shops are, quite honestly, poorly designed. Umba.co.ke is different, the design is very well done and gives one the confidence to make purchases online. Good job!

SokoPal – this is another Kenyan Groupon clone. I do not particularly like the site’s design but there is no doubt about the fact that a lot of thought was put into making this website – and it shows. The site is very well done and serves its purpose perfectly. Kudos to the guys behind this – may they find great success in their business.

Flops
Zuqka – Zuqka is a portal site for weekend entertainment around Nairobi, but with a social networking component as well (video, audio and blogs). It’s a cross-medium service too, marrying newspaper with the web. I used to think a lot of Zuqka. It strikes me as a service that should be a smashing hit as it is backed by the Nation Media Group. Therefore, I was quite surprised when a reader pointed out that Zuqka has degenerated into a “lonely spam farm”. Have a look at the comments on these pages:

Goodness, it is quite shocking that the people behind Zuqka have let this happen. Your website can fail for many reasons but with spam-fighting tools like Akismet available for free, it is unacceptable to have your site succumb to spam like Zuqka has. The fact that the Nation Media Group is involved in Zuqka makes this all the more shameful. Bah!

Infested Zuqka - a picture of zuqka.com infested by spam

Infested Zuqka (click for larger image)

Posta.co.ke – well, the official website of the Postal Corporation of Kenya is pretty well designed if you ask me. But it does not seem to be very well taken care of. For instance, this page is chock full of adverts for viagra and other sex-related pharmaceutical products. Clearly, Posta Kenya has a spam issue that no one knows about (or that no one cares about enough to fix).

Rumbaa – I generally hear good things about Rumbaa – a Kenyan photography site. But over the last week I have not (not even once) managed to get the site to load up properly. The images seem to be perpetually broken AND Google warns you that some of the pages of Rumbaa.com may “harm your computer”. Someone do something!