Thoughts and ideas for small business development and growth
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
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!