Transcript No Slide Title
3 key secrets of market intelligence…
How to… 1. Pick more profitable customers, 2. Grow your biz…and, 3. Have a life!
Sault Ste. Marie Innovation Centre June 18 th , 2008 Presented by Donald Cooper, MBA
Secret #1: The 1 st customer you serve is you! Who are you now… and who do you commit to become? SAGE ADVICE
There’s no such thing as “Business Goals” …only the personal goals of the people who control the business.
1.
How
big
do I want to be...or must I be?
2.
How
good
do I want to be…or must I be?
3.
Am I a high end or mass market person?
4.
Love traveling …or sleep in my own bed? 5.
How much
$
do I need or want to make?
6.
How big a
difference
do I want to make?
Reality check: In case you hadn’t noticed, running a business today is challenging!
1.
More demanding customers.
2.
More & stronger competition.
3.
Shrinking margins.
4.
Increased complexity.
5.
More difficult to find and keep great staff!
But hey, every business is tough!
Profitability profile of a market with too many competitors:
Market can support 3 competitors…but there are 5
#1 - RO I of 15% to 20%.
#2 - RO I of 10% to 12%.
#3 - breaks even.
#4 and #5 - will lose money!
Lets face it…mediocrity is no longer an option!
If you’re trying to succeed in business by being mediocre, once your customers have been to Disney World…you’re doomed!
Key questions to ask…
1.
What, or who am I passionate about?
2.
What, or who am I an expert on?
3.
What are my values and standards?
4.
How do I handle stress? Am I emotionally resilient? 5.
What are my business management strengths and weaknesses? Will I be able to proactively manage the business?
What do you commit to become?
Create a clear and measurable statement of what you’re committed to become to be a profitable and responsible market leader in 3 to 5 years! …donaldcooper.com Free Articles B9.
There are actually 2 kinds of “future”:
#1.
The future that will happen...
-
population & demographics,
-
changing tastes & priorities,
-
invention & discovery,
-
political & economic changes,
-
new emerging nations,
-
war & terrorism.
?
?
?
#2.
The future that you commit to proactively create.
Secret #2: Choosing your profitable customer segment. SAGE ADVICE
Finding customers that you love this much!
Key questions to ask…
1.
With whom do I have a special relationship, unique understanding or powerful connection?
2.
Who’s serving them now and where are they falling short?
3.
Is the market that I’m looking at over-served?
4.
What will I offer that will be extraordinary?
5.
Will this be a financially & emotionally healthy business to be in 7 to 10 years from now?
Focusing on profitable customers:
We call John Cooper… He’s our ‘quiet’ guy!!
You can’t be an expert on everyone and you can’t make everyone happy…that’s why God invented Niche Marketing!
“I don’t know what the key to success is… but the key to failure is trying to please everyone.” …Bill Cosby
Every Feb 14 th they hold “the worlds largest nude wedding”
Dan the dangerous tree man:
Dan specializes in the difficult tree removal work that others won’t even attempt.
…and when you call Dan, it’s never about price!
DAN the dangerous tree man Expert tree removal Call (705) 689-2133
Niche marketing…
Sources of market intelligence info:
1.
Chamber of Commerce; 2.
Industry suppliers.
3.
Trade Associations.
4.
Hire students to do a market research.
5.
The internet.
6.
Yellow Pages.
7.
Get out and do your own homework.
Secret #3: Create, deliver & communicate compelling value. SAGE ADVICE
It’s not good enough to be “unique”… we must be
“COMPELLING”!
You must create
USP’s
Don’t fall into the “research trap”…
When we do research, Now, if you could just tell me what you’d like… we find out what people expect…then, when we deliver what they expect, we wonder they don’t go
“WOW”!
So, we do research, what we should do…but to find out that which we must
not
to find out
exceed!
Most businesses make the mistake of defining themselves by…
1.
The products or services they’ve always sold, 2.
How and where they’ve always done business.
…it’s all about them and it’s all about yesterday!
Redefine your business by how you HELP:
I sell mortgages!
OR … I help people to buy a home and to own that home, mortgage-free, as quickly, conveniently & inexpensively as possible.
Clarifying our “customer commitment”: 1) We’re in the business of helping 2) To
______________________________________________ ______________________________________________.
3) By
______________________________________________ ______________________________________________.
…better than our competitors.
Taking “understanding” to a whole new level!
When our target customers are buying or using what we sell…
1.
What are they trying to
do
?
2.
What do they want (or need) to
know
?
3.
How do they want to
feel
? …Alive & Well examples.
We need to create compelling BIG IDEAS!
A “BIG IDEA”…
•
Defines your Value,
•
“Grabs” your customers,
•
Focuses your team.
…Peregrine Lodge, Queen Charlotte Islands, B.C. … …Peregrine Guide, Stef Olcen, displays Peter Toigo Jr’s spectacular 72 lb. Chinook.
Your “BIG IDEA” must be…
1.
Compelling … it “grabs” your target customers.
2.
Unique …if it’s everywhere it’s not a BIG IDEA.
3.
Deliverable … promise & don’t deliver = bad idea.
4.
Profitable …losing money is not a BIG IDEA!
5.
Sustainable …what’s its life expectancy?
Businesses built around a “Big Idea”:
1.
Lenscrafters
“Eyeglasses in an hour!”
2.
Dell Computers
“We sell direct to you!”
3.
M & M Meats
“Hundreds of meal ideas …just one aisle!”
4.
ING Direct
No branches, higher interest.
Engine rebuilder rethinks what customers really want and changes business model:
1.
Average shop has an owner and 4 machinists. Pays staff $44,000 and himself $50,000.
2.
One guy changed his business model… • Enlarged his shop. Carries rebuilt inventory.
Rebuilds 4 or 5 at a time = economy of scale.
• Delivers rebuilt engines and cylinder heads immediately. Garages turn jobs over quickly and customers get vehicle back in 3 days not 7- 8 days.
…
Engine rebuilder changes business model to thrive in shrinking market:
3.
He added mechanics to his staff and now does the entire engine replacement job in just two days…local garage makes $300 for making a phone call.
4.
With 14 staff, he now has an asst. manager and can take vacations with family. 5.
He makes $140,000 and has built a profitable and saleable biz.
We are what we communicate!
Everything we do communicates:
Advertising problem or fundamental marketing problem? “Advertising is creative bragging!”
What compelling … 1) Functional, 2) Emotional and, 3) Financial Value …are you delivering that’s worth bragging about?
…the Average North American is exposed to 8000 ad messages per week.
When you’re delivering compelling Value… compelling communication is easy!
The power of having well understood target customers and a clear brand message & personality:
The power of proactive communication:
1.
Baskin Robbins ice cream cakes.
2.
Pizzeria calls customers to ask for the order.
3.
Companies book my 1-day Mgt. Seminar for their customers.
4.
Liberty Mutual coaches clients on how to reduce workplace injuries and illness. 5.
Coppertone offers UV skin photo and personalized suncare profile.
Knowing our customers as individuals:
Name & address, Preferred method of payment, Phone, fax, e-mail, Complaints & problems.
Purchase history, Special needs & preferences, Lifestyle & interests, Significant dates,
Finally … “Thank you” for joining me today…and I look forward to chatting with many of you this afternoon. …and a promise of ongoing help
.
SAGE ADVICE
A promise of on-going help!
Free “booster shots”!
• • • • Monthly E tips on how to… sell more, manage smarter, grow your bottom line…and, have a life!
So…
For your business, For your customers, For your bottom ordinary life…
What’s possible?
and…