A,
B, C, D…
We all remember that little ditty from elementary school. September
brings an end to summer and a return to a more “normal” schedule
for most of us. The days get shorter and the pace of life returns
to a more “regular” pattern.
I have noticed that this time of year expectations shift. Customers
and employees are more focused. Our suppliers get a little more
aggressive and internally, we start gearing up for the sprint
to the end of the year. In short, we are going back to basics.
But what of your business practices? Are you returning to the
basics for that?
The economy is on everyone’s mind. The signals are mixed about
capacity, inventories, employment, corporate earnings and the
stock market.
Most business analysts are saying we have reached a bottom and
capital spending will improve soon, igniting a renewal of our
growing global economic expansion.
With consumer and business confidence lower than it has been for
some years, some companies have switched their focus from market
expansion to cost cutting as their primary goal. If the top line
is slowing, cutting the expense side is one way to maintain profits.
What are the other ways? Building your business basics at a time
when your competition is cutting costs can create excellent growth
opportunities. Here are a few of the basics that are so often
ignored: E, F, G…
Find
out what customers want. In a commodities-driven business
like cheese, price seems to be what customers want. But there
are other important needs as well. Service, reliability, consistency,
dependability. Each of these attributes comes with a cost. Guessing
what your customers want without really asking them is a mistake.
Simple market research, even telephone surveys, can produce astonishing
results.
Establish a clear Unique Selling Proposition (USP). Determine
what you do that is singular to your company. Standing out in
your uniqueness will cause gravitation to your exceptional business
practices. If customers have needs that are not being met elsewhere,
projecting your USP across the marketplace will act like a flare,
lighting the sky for prospects. H, I, J, K…
Improve your customer service systems. Order entry, A/R, shipping
and voicemail offer opportunities to gain customer loyalty and
keep the pressure off of your margins. These basics of business
are so basic that most companies simply ignore their impact on
customers. I listen to complaints everyday from business people
about services that they use. Our culture has lowered its expectations
of service even among business! Set the bar high, offer incentives
for results and reinforce the benefits for employees to deliver.
Sell
benefits not features and advantages. Customers don’t
buy half-inch drill bits because they are made with tungsten tips.
Customers buy half-inch drill bits because they want consistent
half-inch holes. The attributes of a product are its features.
(Packed in Cyrovac.) The advantages of a product are what make
it better. (Insures freshness for your customer.) The benefits
create buying behavior. (No loss due to mold.) Re-look at your
point of sale sheets, your company brochures, your website, your
show materials, even your letterhead and business cards. Are you
“selling” benefits with these marketing tools? So often these
materials are designed from the inside-out. What do we want to
tell rather than what do our customers want? L, M, N,
O, P…
Use
your database wisely. One of the biggest hidden assets
of a company is its internal database. Who are your current customers?
Who have you lost? Who have you lost recently? Who are your prospects?
What market segments are you missing? Identify and target different
forms of communication for these “segments” within your list.
Faxing a holiday schedule to current customers is perfectly acceptable.
Try doing that to a prospect and you risk alienation. Postcard
reminders or “stay in touch” cards to prospects is an economical
way to keep “Top of Mind”. Nothing can save the day like an exit
call from a company executive. If a customer has quit you, a phone
call from the president to find out why can save lost business.
Educate your customers. If you think education is expensive, try
affording ignorance. Reinforce your quality, service and systems
to customers with real information, not saccharin-coated “claims”.
The words: quality, service and value mean nothing today. These
are standard buzzwords spoken by every company every day. What
else would a company say? Our products are lousy; we don’t return
your calls and are prices are too damn high! Find legitimate ways
to offer compelling reasons for your customers to stay.
Cutting back at the price of losing market position will not be
worth the short-term gains when the economy rebounds.
Excite
and inspire your current customers. Everyone knows that
it is cheaper to sell more products to existing customers rather
than going out and finding new customers. Okay, so what specifically
do you do to make that benchmark a reality? Offering exciting
reasons for customers to enthusiastically use your product creates
a winning attitude for all involved. Few things stir up customers
more than great promotions given to new customers only. Your credit
card company offers 2.9 percent loans to prospects all the time.
What rate do they charge you? Q, R, S, T, U, V…
It is fall. Elementary school is open and teaching the three R’s.
Now is the time for business to do the same.
Stay focused on the strategy of building business through offensive
goals, not cost cutting tactics, to gain small defensive strengths.
The economy is tight right now. Cutting back at the price of losing
market position will not be worth the short-term gains when the
economy rebounds. We may not see 5 percent growth in GNP for many
years.
But a healthy and manageable 2-3 percent is closer than many economists
are touting.
It takes guts to stay the course for the long run. Keeping centered
on the basics is simply elementary. W, X, Y and Z.