Dec 19 2011
Leave a comment
Leadership, Strategy

Increase your productivity to rival Santa’s

Recently I contacted two joiners. One seems to run his business very efficiently using, among other things, a website, mobile and email. Then I contacted a joiner who has a mobile but no email or even computer. Apparently his wife runs the back office and she “deals with all this”. His very detailed quote was hand written, posted and any client changes had to be mailed or faxed back.

A friend of mine is running a business where he needs to quote based on a building’s exterior. He provides quotes for business or residential, and pretty much across New Zealand. Customers don’t expect to have to wait too long for a quote either.

For him to go to each site and provide a measure and quote would take a lot of time and be very costly. So for years he has been using Google Maps. Within a few minutes he can see the height, shape, accessibility, and estimate the area of the building. Sure beats going to the site which would take him away from spending time working on the business.

That’s not to say my friend isn’t out and about. He very much is and while doing so he’s running his business from the cloud. He runs his office and field staff from anywhere in the country. It’s a brilliant way to run a business.

Undoubtedly each business is different and no solution is going to be the same for everyone. The thing is knowing what you’re best at and also the best options to run your business. Then you can consider the solutions available including getting your back office or an external party to do the work.  Alternatively be more involved yourself. You might want to consider asking someone like Oxwich Consulting to advise you.

Maybe, you too have come across people at either end of the technology spectrum. Just because they don’t make full use of technology doesn’t mean they are inept. It might just mean no one has yet produced a product that’s right for them.

Get Classie has just released new software that is designed to help manage dance schools. Sure beats doing it with paper and pencil!

So think about how you can use technology to improve your productivity to rival the man in the North Pole.

Go 2 Market principle: technology adds value to your business. It may not be you that uses it but life can sure be a lot sweeter with utilising what’s available.

Tagged
Dec 12 2011
Leave a comment
Customer

Love it or hate it, it’s reality

I’m not talking about those reality TV programmes we love to hate, but customer perception. Because, love it or hate it, what customers perceive is the reality they live by.

Why does a customer buy this product or service when another one is better suited. It’s to do with their perception. Sometimes they might not be aware of other choices, sometimes the benefits that other products/services can offer might not be communicated well enough, sometimes it’ll be habit, lethargy, comfort, or sometimes it’ll be just plain irrational.

As marketers, the last reason is the most frustrating to us, whereas the other reasons can be more easily addressed. Changing people’s perceptions of your product/service is an exciting challenge. Here are some ideas on how to go about it:

  • Talk to your staff and help them understand the journey you’re embarking on and why
  • Understand why prospective customers prefer someone else’s product/service over yours – that’ll guide you on what actions to take
  • If your product/service has benefit/s that are important to people buying competing products/services then you need to consider changing your communication to change perception
  • Trial ways to shake customers out of their lethargic buying habits of buying your competitor’s product e.g. offer samples, demonstrations, review the communication channels you’re using, bundle up with other more popular products to get more uptake, find and work with key influencers e.g. store people, reviewers, writers, specifiers, tradespeople, celebs (who could just be well known people in your area)
  • Lastly don’t put at risk your unique selling proposition, i.e. what makes your product different to your competitors – unless doing so is going to be a game changer.

Changing perceptions isn’t easy, and it can seem like swimming against the tide. That’s where your determination and passion for your product/service will be needed. Impart some of your passion for your product in ways that will change people’s reality.

Sometimes a legacy of poor performance, or superior performance from a competitor, will make the journey a long one. But be persistent and consistent to your objective of changing perception. It may take time but it will happen.

Go 2 Market principle: perceptions can be turned around. Work at it consciously and openly with your staff and others who can help.

Tagged , , ,
Nov 24 2011
Leave a comment
Business ideas, Customer, Strategy, Value proposition

Making a good idea great

After some first hand experience, including a 54 hour startup weekend, I’m now clearer than ever about what it takes to make a good idea great. I suspect you all know the answer. It’s in marketing textbooks, talked about all the time, and should be part of what we do, but so often don’t. I’m talking about the need to validate your idea with your target market.

As marketers we should be delivering a product or service that responds to what the customer wants. Too often the idea comes from ‘the top’, is what ‘group think’ suggests, or is the ‘flavour of the day’.

Where’s the customer in any of this? More often than not the customer is represented by …. (fill in your own words based on your experience). Too often it’s too easy to rush the product/service, offer, or just as often only hear what we want to hear. How many times have you seen research interpreted to suit the outcome desired by the client/product champion?

The mobile space is a case in point. There seems to be lots of companies feeling the need to develop a mobile app. Smartphones are a growing market for sure. But you would have to be sure that your target customer is part of the 18% of mobile users whose phone is a smartphone. Even if so, is the app you’d like to produce something they want, and are willing to pay for, or even if free, use?

Research indicates that most popular mobile destinations are news and information, weather reports, social networking, search and maps. Does your idea fit into one of these categories? If not then consumer testing is even more critical.

Confirming the risk of developing an app is this article that might help with your broader online strategy: Some very quotable comments from the article and discussion include: “Building your own app is not the only way to reach your consumers”, “No one wants to download an ad”, “Build ‘em and they will come”.

So back to testing against your target market. There’s some off the shelf research that’s a good starting point e.g. the latest TNS Digital Life Study, but your customers are your customers. So validate your idea with them. If you have a broad range of customers then target your research into the segment/s that matter most.

Go 2 Market principle: what will make a good idea great is customer demand. So who better to ask about meeting that demand than the customer!

Tagged , , , , ,
Nov 16 2011
Leave a comment
Brand, Business ideas, Customer, Profit

Who copied my idea?

I’ve already blogged about being a flexible thinker and starting to take a different perspective. Here’s another article that writes in general about the same topic (don’t be put off by ‘startup’ being in the title): Why You Should Embrace Opposing Views at Your Startup

The point is, whether it’s your sector or a different one, don’t dismiss ideas that deliver to customer need. In fact go looking for what your competitors and others are doing, and consider why and how they’re doing it. You may copy the idea (staying clear of intellectual property issues) or adapt. When it’s incorporated as part of your total offering no one is likely to know or care.

As an example, a useful business trend right now is to suggest other products or services that align with a purchase. They might either be complementary, or popular with other people that have bought the same product. This isn’t anything new, rather returning to good old personalised customer focus. Technology is the enabler for this now. For example, Air New Zealand sent me an email with some accommodation, rental car/campervan suggestions based on a booking I’ve made with them. They also included some non-sales information about our destination too. To me their approach is unobtrusive, easy and practical.

Fashion items including clothes, books and music all provide an opportunity for adding more benefit (and sales). But there’s many more businesses that could do the same surely, e.g energy companies selling energy efficient products; florists providing a service to manage all your special occasions; motor vehicle dealers arranging insurance; sports stores that suggest complementary items, to name a few. Think of it as: ‘what problem can I help solve for my customer?’

I’d suggest you want to understand what emotion is being stirred up in users when a different approach is being used and replicate the good stuff. Also ensure it’s aligned with your brand and customer needs.

Of course you have to try and find this stuff. Talking to your customers is always the best bet. Try to do it yourself, but otherwise engage with partners that are interested in your success. Customers will know what your competition are doing.

Go 2 Market principle:  don’t be precious. Adapt others ideas to help create your success.

Tagged , , , , ,
Nov 09 2011
Leave a comment
Brand, Sales, Strategy

Why not, everyone’s doing it

Seems to me that everyone is doing it, brand extensions, that is. Caterpillar footwear, Jeep clothing, Amazon tablets, State Insurance roadside assistance, Vogel’s cereal, Air New Zealand taxis.

So can your brand also be extended to products or services that aren’t its reason for being?

In my last blog I talked about focus on your target market. So this topic seems a natural followon, or extension if you like.

There are lots of good examples where consumers will buy an additional product from a brand they trust. Your brand’s credibility and also the perceived link between product extensions are all important. Summed up by this article on what are the limits of your brand’s relationship with its target consumer, and what will your consumer allow you to do.

The power of the brand can be impressive. Even for older brands e.g Pan Am, an airline brand of yesteryear, is today selling travel merchandise.

However, don’t underestimate the challenge with jumping into a brand extension. Firstly, has the rationale for the brand extension been thought through, and does it support the strategic direction. Second, you need a viable product or service that adds value to consumers you’re focused on. Then you need to ensure it doesn’t detract from your current brand equity either by its introduction or by you losing focus on your main activity.

There are a number of brands that haven’t been extended e.g Toyota. They arguably had consumer permission to sell up market cars but didn’t have the credibility so it developed the Lexus brand. What about Coca Cola? It sells a vast variety of drinks, but very few have the Coke brand name. So brand extensions are not always the answer, and indeed need to be very carefully considered and managed.

Final thoughts from the CE of Starbucks, Howard Schultz: “consumer-based business is changing so significantly that you just can’t embrace the status quo”. They are really trying to push the envelope according to Starbucks Coffee Marketing.

Go 2 Market principle: understand well your brand equity, customer perceptions of a brand extension, and how to deliver an extension that strengthens your brand.

Tagged , , ,
← Older posts
Follow

Get every new post delivered to your Inbox.