Surviving Difficult Times...

If you don't know it yet -- your business is to succeed.

This was why we even went through growth initiatives. Yet
no matter how sharp one may be, in difficult times, having a
sustainable competitive advantage is not enough.

"Innovation is a necessary condition for business success --
but not a sufficient condition for business success."
~ Randall L. Tobias

What does one still need to do then?

Keep on inventing new advantages. Be proactive rather than
reactive. Find new ways to better serve your customers. Do
everything possible to exceed customers' expectations.

Realize that current traditional markets will not guarantee
sales, growth, and profit. They create new markets and new
channels. So, intensify your marketing efforts in terms of reach,
presence, and availability. Strongly consider the market space
-- and not just the market place.

See, satisfying and responding to customer needs are no longer
adequate. Anticipate what's really important to the customer.
Create business solutions and partnering such as unique
customer access, technical know-how, relationship networks,
and a loyal user community.

The ultimate goal is understanding customers' economic issues
and challenges. These allow you to anticipate rather than
respond to customer needs. From being just another supplier,
you become a key economic partner for your customer.

Create growth-based initiatives on traditional tools for
products, factories and personnel. Then create growth-based
initiatives on hidden assets by building long-term and win-win
relationships, competitive market position, and information.

"Business is often about killing your favorite children to allow
others to succeed." - John Harvey-Jones

In trying times specially, sacrifice is needed; and recognizing
the what's, how's and when's as early as possible would prove
crucial.

Do what it takes to outperform, outlast, and outwit your
competition. It is certainly better to be superior and ahead in
your chosen segments, industry, and product category...
not just to survive difficult times but always.

Take note...
"A ship in port is safe, but that's not what ships are built for."
~ Grace Murray Hopper

Growth Initiatives... Part III

"Commerce is the art of exploiting the need or desire someone
has for something." - Edmond de Goncourt

Consider McDonald's... see, aren't people tired of eating fries,
burgers, et cera? You answer. Yet how do they retain and
continue to attract customers? They "invent" new products
and "innovate" on existing ones then let packaging and
advertising do its magic. They protect their image despite
branches sprouting like mushrooms while continuously
emphasizing and training their people on customer service.
More so... they partner. In short, their think tanks
"relentlessly" -- think.

Now, growth has always been a target for entrepreneurial
souls but sustaining it has many times been perplexing.

Here are the rest of the steps toward growth...

• Manage your organization, bottoms-up, down, and across functional areas through teamwork, empowerment, and business partnering, instead of doing the usual management from the top then down the line.
• Create a single-minded approach. Multiple message approach doesn't usually work in effectively reaching fast the intended target audience.
• Think out of the box. Think differently. Think from a new perspective. Be novel and creative in marketing practices.
• Manage customer lifeline value through customer intimacy and relationship marketing by focusing on making a profit on each transaction.
• Integrate marketing communication tools into one message and one voice. It is better than planning each communication tool separately.
• Understand and meet customers' real needs and wants, not just selling the product.
• Market an experience, not just an assortment of goods or services. Notice bookstores, food outlets, and clothing stores include coffee bars, which would now and then feature lectures and performances.
• More than just exceed customers' expectations by satisfying, delighting, and surprising customers beyond the 4Ps of the marketing mix by satisfying customers' needs and wants.

"Once all the surviving contenders in a market can offer value,
the battle shifts to speed and innovation. To distinguish
themselves, companies must offer something unique."
~ Noel M. Tichy

Remember -- speed and innovation.

Oh, we all know that. Sure. Still if you simply rest on your
laurels, you would just be an "overnight" success. No need for
speeeeed and innooooovation then, just wait until your product
matures and declines. That's it. The story's finished.

Is that what you want? Of course not, you have even been
following this series, you realllly want a continuing saga.

However...

Realize that we could only make it if we not only deliver on our
promise, but deliver it with speed and precision; not only
produce a useful and attractive product, but incessantly
enhance on its features. When the dusts of battle has settled,
even a 1% "uniqueness" could spell victory, it's a fortress we
could build on.

Don't just smile there... make things happen!

Take note...
"Markets are not created by God, nature, or by economic
forces, but by businessmen." - Peter Drucker

Growth Initiatives... Part II

If you have been following my blogs, you want to grow; and
wanting growth is being ambitious... and being ambitious is
good. And why not, why are you in business anyway?
Or why do you work with a company you believe you could
well contribute and help you move forward?

Unlike evolution, growth is not a natural phenomenon --
it's initiated.

"The strategic challenge for the transnational corporation
is the simultaneous achievement of efficiency, flexible
responsiveness, and worldwide learning and innovation."
- Christopher A. Bartlett

In our previous article, we delved into a handful of steps that
would help bring in the bacon -- not just regularly but
incrementally.

Here now is the continuation of those measures...

• Form networking and alliances with other firms through "coopetition" and "collaboration".
• Instead of making the usual product, make customized products through "house branding", "private labels", or "exclusivity contracts".
• Benchmarking is determining who is the very best, who sets the standards, and what those standards are. In the marketing industry, benchmarking is very useful. If you do not know what the standards are, you can not compare yourself against them. You have to know where your competitors stand. When you have decided to benchmark, you get to know how to improve your products or services. You also get to determine what you have to do to achieve your marketing goals.
• Consider a paperless marketing environment. A paperless office makes paper redundant for routine tasks such as record-keeping and market reporting. Computerization can do the conversion of paper documents, photos, marketing plans, and other paper-based systems. The paperless work system has its advantages: productivity gains, costs savings, space saving, and easy sharing of information and it is environment friendly.
• The internet has paved the way for e-business. This refers to the application of internet technology, to streamline business processes. It is also advisable to market your products or services over the internet. Build an online presence where your company is showcased and detailed information provided. Use the internet to conduct payment, handle transaction details, and support automated customer inquiries.

"Small opportunities are often the beginning of great
enterprises." - Demosthenes

See, actually, most everything we want to do in this planet is
achievable by just using the common sense... including
business. But what makes that difference is fire -- to climb
and continuously climb mountains. This is why one's level of
courage and enthusiasm is what sets apart achievers from
regular performers; unfortunately, not many companies are
manned by "forward thinking" personalities and that explains
their fluctuation and eventual fold up.

To be that Leader, learn to spot potentials, in every form, and
cash in on them. After all, your business... is to grow.

Take note...
"There is no resting place for an enterprise in a competitive
economy." - Alfred P. Sloan, Jr.

Growth Initiatives...

You want to grow your business alright. You want to be that
Leader who made an organization a success. Of course. Then
you understand that paying attention to growth initiatives is
essential in building an institution.

"A company must be viewed not only as a portfolio of
products and services, but a portfolio of competencies as
well." - Gary Hamel

Consider these...

• Have an uncompromising commitment to providing your customers with only quality products and services.
• Focus on measured implementation and consistent quality.
• Clearly define roles, accountabilities, and timelines.
• Be creative in finding ways to better serve your partners and their customers.
• Build an effective strategic customer program that leans toward increasing revenues and uncovering emerging needs.
• Devise a systematic program for forward planning, deploying, and reviewing innovations.
• A platform for strategic and operational planning with partners includes the following: setting up joint objectives, performance improvement targets, and an action plan and timetable.
• Explore more ways to provide WOW services for target customers.
• In marketing, there is value in being first. New, improved, or newly designed products or services give you a better chance to be a market leader. But keep in mind that it is as important to be a better provider of products and services.
• Focus on the value chain not on the product. Consider today's intelligent value-seekers. Customers want more value for their money. They want MORE for LESS.
• Go into niche marketing not too much on mass marketing.
• Dominate a larger customer mind share not market share.

If you are in business just because you do not want to be an
employee; if you are in business only to earn a living -- then
you are really just an "ordinary employee" in disguise, so why
not just sell peanuts on the side walk? It's a challenge only
achievers could grasp... whether as an entrepreneur or a top
caliber employee.

An achiever is a dreamer... a dreamer who is not afraid to
dive; a diver who not afraid to swim; a swimmer who
understands risks, thinks of possibilities, and realizes that
courage is what really matters to achieve greatness.

Take note...
"Companies pay too much attention to the cost of doing
something. They should worry more about the cost of not
doing it." - Philip Kotler

Keeping Customers For Life... Part III

"All business, from potato chips to washing machines to jet
engines, is about selling to people." - Tom Peters

Those words is a fact that good marketers understand and thus,
develop strategies to reinforce preference for their brand,
product and service. Keeping customers in your stable now
boils down to analysis, planning and execution.

Yes, most have heard of loyalty programs but then, not all
realizes that its effectiveness really depend on the support of
management, the brains of its leaders and the hands of its
employees. More than just your product, you need a concerted
effort to constantly deliver a good impression to your
customers.

Understand that you do not have to wait for your customers
to tell you to serve them well and better than others to stay
long with you. You got to anticipate their needs and provide
your customers with easy steps for them to do repeat business
with you. These should be simple and cost-effective ways of
acknowledging valuable customers who seek and appreciate
emotional benefits from enhanced self-esteem, distinction, and
customer status.

"Once all the surviving contenders in a market can offer value,
the battle shifts to speed and innovation. To distinguish
themselves, companies must offer something unique."
~ Noel M. Tichy

Yet remember, more revenues from customers do not always
mean profit is better. Knowing who your most profitable
customers are and increasing their number will profitably
sustain your business. Customer satisfaction is for all your
customers. Customer loyalty is for your most profitable and
valuable customers. Therefore, be strategic in allocating your
resources in a way that will best serve and grow your highly
profitable and volume-generating customers.

Here are some tips...

Evaluate priorities and allocate resources accordingly based on
the following:

• How customers contribute to total profitability
• Significance of customers to the total business or in terms of their business size relative to the overall business
• Potential for future growth or any customer expansion plans

Evaluate overall cost of doing business with a customer to sustain
profitable relationships. Breakdown the cost of doing business
through the following:

• Discounts or payment terms extended to them
• Customer promotions

Other ad hoc or temporary support extended such as:

• Volume discounts
• Additional manpower
• Operational subsidies
• Administrative and selling costs

In the end, it is your reputation for doing business that will
carry you through... and keep your customers for life.

Take note...
"We don't know how to sell products based on performance.
Everything we sell, we sell on image." - Roberto Goizueta

Keeping Customers For Life... Part II

"When you are skinning your customers, you should leave
some skin on to grow so that you can skin them again."
- Nikita Khrushchev

This was quoted by the Observer (London) when Khrushchev
addressed British businessmen. Well, it may sound a bit harsh
specially for those who are racist but in a positive sense, it's
actually true. Look, we want to keep customers for life; but,
how could they keep coming back to us if we drain them?
Hence, we got to take care of our customers... sincerely. Let
them feel valued while continuously improving on our products.

Redesign, reshape and re-engineer product offerings, services,
and messages to individual customers. Design market offerings,
services, and prices that have more emphasis on customer
retention to rebuild a longer customer lifetime value.

Reduce the rate of customer defection by hiring only
knowledgeable and well-trained employees, if not those with
high learning ability and enthusiasm. Deliver total customer
satisfaction through better and faster services than
competition.

Enhance customer bonding by way of (a) frequency and
rewards program to customers who buy more often and in
substantial amounts and (b) individualizing and personalizing
customer relationships, turning customers into clients.

Build profitable customers through "share of wallet", cross
selling and up-selling... then you could capture a substantial
share of your customer's expense budget.

"If you love your customer to death, you can't go wrong."
- Graham Day

Provide special treatment to your most valued customers.
Treat them like they are the only customers alive on earth,
send them personalized birthday or wedding anniversary
greetings, small gift tokens, or invitations to special events,
concerts or shows.

Yet realize that looking after your customers is more than
satisfying them or filling their hearts -- it's helping them grow
their business. That is what "skinning and leaving some skin"
is all about!

Take a bank for example. Safekeeping is not the only reason
why people deposit their money but interests and other
financial services. See, they help each other. A bank grows
from its client's money and at the same time, so does the client
from the bank's expertise.

More so, at a different setting, once you have successfully built
that win-win relationship, it would be more easier and natural
to seek your customer's help and support in the design of new
products or in improving total customer service.

Lastly, again, customer satisfaction is for all your customers
but customer loyalty is for your most profitable and valuable
customers; so learn to identify and build on them.

Take note...
"Markets are not created by God, nature, or by economic
forces, but by businessmen." - Peter Drucker

Keeping Customers For Life...

In our previous articles, we talked about customer loyalty; and
for this one, we would continue to dig deeper into the world of
customers.

As we all know, trust is key in building and maintaining customer
loyalty; yet, would there now be room for complacency once trust
has been "firmly" established?

Wait. Established? Is there such a word? See, complacency is
never even a thought for those who wish enduring success. If
you allow such, you would certainly lose ground.

"There's no resting place for an enterprise in a competitive
economy." - Alfred P. Sloan, Jr.

Great business leaders never rest on their laurels. They think
continuously on finding ways to delight customers. They work
harder to build customer lifetime value.

Oh, what is this customer lifetime value again? It is a measure
of the value of a customer to your business. It is the potential
contribution of the customer to your business over a period of
time. It is the "answer" to the question of how much a customer
would spend for your product or service in the course of a life
time.

"He says, 'when I see a frown on a customer's face, I see
$50,000 about to walk out the door.' His good customers buy
about $100 worth of groceries a week. Over ten years, that
adds up roughly $50,000. We all agree that repeat trade is
the key to business success." - Tom Peters

Hence, when confronted with a difficult customer and you need
to be motivated, think about all the money that he could spend
with you in the course of a lifetime.

Remember, some customers can be difficult. They maybe
unhappy at something specific. Others maybe unsatisfied with
nearly everything. So, here then are some guidelines for dealing
with difficult customers...

• Do be clear, specific, and straight to the point.
• Do be prepared and organized. Anticipate and be proactive in answering inquiries.
• Do stick to business. Demanding customers are not interested in small talks.
• Do ask specific questions, i.e. "May I know what exactly is the problem with your Senior Citizens' Purchase Card, sir/ma'am?"
• Do provide a choice of options.
• Don't ramble, theorize, or engage in small talk. Get to the point.
• Don't be disorganized. Demanding customers don't have patience for incompetence.
• Don't leave any loose ends. Present to demanding customers an outright solution to their problems.
• Don't ignore the customer's presence or his anger.
• Don't put the blame on the customer or shift the blame to another office.
• Don't refer him to other offices without listening to and determining the problem which can be solved by your office.

As for angry customers...

• Recognize the presence of the customer by greeting him and making him feel comfortable.
• Listen attentively. Do not interrupt him while he is talking.
• Paraphrase the customer's concern to ensure proper understanding of the problem.
• Emphatize with the customer by saying, "I understand how you feel" or, "I can see your point."
• Offer to help, "How may I help you?"
• If the solution recommended by the customer is not possible, offer alternatives.
• If the solution is acceptable, apologize for the inconvenience of the customer.
• Keep your cool.

Take note...
"There is only one boss: the customer. And he can fire everybody
in the company, from chairman on down, simply by spending
his money somewhere else." - Sam Walton