We are exposed to an average of 3500 brands a day. Brand orientated businesses are twice as likely to succeed. 80% of businesses with a strong brand focus have operating profits almost twice as high as the sector average. We’re shifting from profit generation to value creation for all stakeholders and we’re now operating in a world that’s no longer based on the manufacture and trading of tangible products but the creation and delivery of intangible services.

Some of the worlds strongest brands today were not even a twinkle in their creators eyes twelve years ago; ipod, eBay, Google, Innocent Drinks, Big Brother, Harry Potter. We are entering a new culture of mobile usage, organic, downloadable entertainment, male grooming and social networks.

It means instead of messaging people how good we are, we need to involve them. Instead of promising we need to deliver, interactive replaces passive, look and feel is history, it’s actually about experience. And finally, instead of having an audience as customers you have a community of customers!

What on earth is going on? Your most significant question at the moment; is your business strategy designed for a static world or for a changing one? And is it changing in a fundamental way?

Somehow we need to get a grip and work out how to make the intangibles tangible!

Times are tough, the buzzword of the moment is recession and the strong economic climate looks like it’s taking a battering and for some time to come. Customer confidence is wobbling, cash is tight and we are all feeling more than a pinch. So its easy to take a knee jerk reaction and try to cut costs, yet perhaps thats the easy route and a route to nothing. So what are you going to do?

The best answer is before you do anything…….. ‘think.’ Here I offer some thoughts:

1. It’s a long haul - whilst there may be some quick hits you can implement, make sure you don’t cut costs too much, an anorexic business ain’t going to get you far in the long term. Being overstretched will only work for so long.

2. Understand what creates the true value in your business. Is it the staff? Is it employees? Is is your products? Is it your customers? Whoever provides the value, they are providing the profit and they need supporting it’s as simple as that.

3. Differentiate, differentiate, differentiate. Get to grips with why people buy from you, invest in marketing and sales tactics that communicate that and if you have creative thinkers…..these are the last people you get rid of in these tough times.

4. Lead your team through this period. Don’t make it tougher for your staff. Encourage, engage, motivate and inspire them to become better at what they do and more productive. If they are led with those words in mind they will come up with the solutions and make it easier for you. Keep morale high and don’t start slashing expenses, bonuses without doing it properly. Strong, clear communication is priceless.

5. Concentrate on customers even more. Identify your top 20% of customer performers ie: those contributing to profit, growth and cash and go visit them. The last thing you want to do is lose customers at this time because in the panic you forgot about them. Set targets for increased spend from these customers. If your top 20% of customers spend 10% more this next year, what difference would that make?

6. Do something now. Get on with it and don’t put it off…you don’t want it biting you on the bum in the next few months. Think, understand and prepare for the actions required. Don’t let decisions be forced on you and think long term solutions.

Looking back on these points, perhaps it’s timely reminder that tightening the old belt can sometimes be good for us!

I’ve just been to lunch in a small independent cafe, I try wherever I can to use small businesses for obvious reasons! What a pity, I don’t think I’ve had such a stressful experience getting served in such a long time.

Putting that to one side and whilst I waited an age for my elusive cappuccino, I noticed something interesting. Every time a waiter (there were several) interacted with a customer, their first word was sorry…..sorry to keep you waiting, sorry you haven’t been served yet, sorry your order is taking a while!

What a way to start a relationship with a customer and a new one in my case. Even if things are not right, and don’t get me wrong the ’sorry’ bit is a direct result of something going terribly wrong way up the customer process chain, try and think of starting the opening sentence with something a little more positive.

It’s an interesting thought that this cafes most used word was sorry, made me think what mine was and perhaps it might make you think of what your most used word is with customers. Whatever it is make sure its a positive, dynamic one!

The cafe in question, I give it 8 months!!!!

Been thinking over the weekend, aided by the bad weather and nothing else to do, what small businesses need to be concentrating on. It seems sensible to be throwing a lot of thought into the following:

1. In a crowded market place, build a sense of exclusivity or differentiation from the surrounding clutter.

2. Our prospects are tired, it’s a matter of turning their opinions and pre conceptions on their head. Period.

3. It strikes me that going against what your competition boasts is a good start.

4. Market your company’s characteristics, values and ideas rather than price.

5. Have conversations with your customers don’t just communicate.

6. Customers don’t compare products with products anymore, they compare the experience with the experience.

Just a couple of questions:

1. What two ideas have you created, developed, influenced, launched so far this year?

2. Are you making waves or simply bobbing along hoping for the best?

Answers on a postcard please…………………..!

I supply a lot of training to business support agencies funded by the government. I enjoy doing them and I meet some great people running businesses. Yesterday I got a letter from one of them, who will remain nameless, addressed to “Dear Valued Supplier.” It annoyed me…if I’m particularly valued why haven’t they addressed me by my name?

Fundamental mistake in marketing no business, if you are addressing a letter to someone never ever make it ambiguous. Be courteous and get straight to the point…Dear Ann, Hi Ann or whatever! It’s unbelievable that basic errors like this are being made.

Rant over…….!

I spent quite a bit of time in the car today which got me thinking (to pass the time.) What are some of the key questions we should be asking ourselves on a regular basis. You know the ones we avoid immediately as soon as they enter our head, or, the ones our staff possibly ask themselves each day. Anyway I came up with five:

1. How would your customers recognise you if you got rid of your company logo?

2. What if your best customer was about to go and do business elsewhere?

3. What if your exceptional reputation for customer service was based on just a couple members of your staff or team?

4. What else would you do at work if you had an extra hour a day?

5. Which customers should you be picking the phone up to tomorrow…. urgently?

I’m not saying what you come up with you might do, but hey it may get you thinking!!! What other questions should we be posing?

I recently had a holiday in the Canary Islands and very nice it was too! Everyday, well almost everyday, we caught the free shuttle bus from the hotel down to the beach and village (a short 1.5km) to do what your average holiday maker does on holiday. What was interesting was that the bus driver (on his own accord) gave out small boiled sweets to all the passengers both going out and coming back! Small gesture but huge feel good feel factor. He didn’t need to do. His motivation, to make people feel welcome to his island and so he could engage in conversation!

This just proves that great customer service can be so very, very simple or should I say we need to keep it simple. It’s those things that make a huge difference and engender loyalty to your product, service and brand.

Intrinsically motivating your customer – making them feel good about the purchase, gaining their trust and respect, understanding their values, over delivering, saying thanks and appealing to them is far more powerful than extrinsically motivating them - giving them materialistic rewards such as money off vouchers and buy one get one free. It’s essentially making your only differentiating factor price which, of course, is not sustainable.

Provide customers with great service, a few simple, low cost great surprises along the way (the sweets) and ensure any customer retention strategy has gaining customer trust and respect at it’s core. That’s what customer service should be about. Perhaps a little more creative thought required but isn’t that the point?

I recently had a great discussion with my delegates at a recent seminar I held. One of those challenging ones that shifts’ everyone’s thinking. As a group we talked about how we often fear customer rejection when, in fact, what we should really fear is customer indifference. A topic I’m inclined to get on my soapbox about!

In it’s most simplistic terms, there are two types of marketing…old school, traditional. It’s all about communications where we assume people are listening, we are comfortable telling the prospective customer, existing client, colleague, supplier how good we are. Commuication is all one way. Worst of all, your competitors are doing it too! And the practical examples of this; advertising in the local rag, glossy magazines, direct mail or dead tree media as it’s now called! Even basic websites are starting to fall into this category, where return on investment is disappearing quickly, if it ever existed at all?

The second is what I call conversational marketing, engaging with the market place, the customer. It’s about ideas generation, exploring future products and services together, provoking a positive, interactive reaction from customers whether old or new. Creating a marketing campaign that fires their imagination which in turn fires yours. Sounds far more vibrant, far more dynamic doesn’t it? Oh a little exciting too!

What do I mean by this? Well rather than allowing your customers indifference to your business being maintained, it’s about starting to think creatively about marketing campaigns that your customer finds appealing, where ideas not service are at the forefront. I’m talking about online marketing, viral marketing on the web, YouTube, a product/service with a true and I mean true differential advantage! Something where you revolutionise the customer experience in your industry! Or you package your offering in a new way like Radiohead did with their (only if your brand is well established) new album in late 2007, which allowed customers to chose what price they paid.

Radical stuff? Frightening? Uncomfortable? Expensive? Well, try this…imagine the way in which you have marketed in the past is denied to you. You can do anything with your previous budget. How would you engage in ‘marketing conversation’ with customers using non traditional marketing?