July 13, 2016
Some people say “Opportunity comes knocking once or twice in a lifetime.” Well, that’s not actually true in my experience. So many times we’re in these situations when an opportunity comes across our desk or we’ll have a chance to connect with someone… or something will literally be staring us in the face. So many times we question the opportunity. So many times we have to think about it. And so many times we miss it. This is what I’ve learned about opportunity: it does comes knocking. And it actually comes knocking more times than most people would like to admit.. What I’ve experienced is that opportunity is literally in front of your face on a regular daily basis…over and over and over again. Opportunity comes in all shapes and sizes. There’s no telling how many opportunities we’ve missed that could have dramatically changed the course of our lives and company fortunes.
Often it comes in the most camouflaged ways and you miss it because you’re looking for the big mountain instead of the small molehill that will turn into a mountain. Every tree started with a seed that was planted in the ground. And sometimes the opportunity is not big and bright and shiny. Sometimes it’s camouflaged but with some thinking and effort it shows itself off. Sometimes it’s camouflaged as a person within your industry, like a media rep or someone whose name you came across in a trade journal. But rather than reach out to them, you say “it’s more important to do this” or “what would this person think?” So my message is to pay attention to opportunity that’s in front of you all the time. Opportunity is abundant when you keep your eyes open and some of the biggest opportunities come disguised so being mindful and aware is critical in order not to miss out.
There are stories after stories of people who in their daily lives have seen or experienced something that made them think in ways they hadn’t before. Whether it’s how the first ATM machine was developed when a gentleman short on cash walked by a vending machine for chocolate bars and thought “why couldn’t machines like this dispense cash?” Or the case of a man and his dog returning home from a walk through the woods covered in cockleburs…you know, those little tiny burs that attach themselves to clothes and pet fur. After some thought and experimentation, he received the patent for his invention: Velcro®. Or when you or your marketing team capitalized on a customer’s need or desire and created a new marketing programs that allowed customers to see how your product helped solve that need for them. And they did it before your competitors even knew what hit em’. To be successful we need to understand as much as possible and constantly be adapting to a changing world.
Can you look back and say you’ve seized every opportunity that you’ve seen? Is it that you missed the opportunities altogether or that you knew they were there, but couldn’t take advantage of them at the moment? We all are in the same boat in that regard but either way, the result is the same…that ship sailed.
So, why do some people and companies see opportunities to market their products and services when so many others don’t? Here are a few reasons to consider as they apply to your business:
- Some organizations encourage people to be open to possibilities. They want people to “live in the moment.” It’s about having an open mind and being curious. Thinking about how successful marketing programs in other industries could be adapted for your business. Every industry has them, and they’re out there for the picking.
- Opportunities are sometimes born out of setbacks. Unfortunately, rather than see the setback as a learning experience and an opportunity to create something new and improved, the sting of disappointment lingers and higher-ups only point fingers rather than open new doors.
- Management procrastinates and hesitates until the window of opportunity closes. They don’t grab hold before the opportunity’s gone. It could be a wonderful co-branded marketing program or a sponsorship at a trade event or an opportunity to provide content to a media outlet where many prospects and customers will be able to read your thoughts. But overthinking or not being ready to pull the trigger happens and “poof”… gone! Only to find out that a competitor has jumped on that very same opportunity your company passed on.
- Not all opportunities are created equal. As the quote goes: “…it’s sometimes dressed up as work.” Which for some businesses means that’s more than they want to invest in. Last I looked, a great opportunity hasn’t dropped in too many laps where no effort was required. It’s about hunting the opportunity down. And about being willing to build up a sweat to work it.
- Follow through. Not being distracted with fleeting doubts and other surprises that pop up. It’s about doing the work that’s needed…till the end. How many times have you seen a marketing program put together that looks good and performs like it should…but ends too soon or not all the tasks are completed? Leads not passed on; sales people not given all they need to tie up the business; etc.? The follow-through and follow-up process lays an egg and internal people – and more importantly customers and prospects – are left with a sour taste.
So, when opportunities come knocking, and they do every day, help yourself and your company by having the right mindset to open the door and welcome them in.
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
June 14, 2016
Here’s something that I hear from business and marketing executives and, each time, I shake my head in disbelieve. Those words are “My customers aren’t asking for it.” Six words that are one of biggest marketing traps and why some organizations stop growing and lose customers to forward-thinking competitors. In 1967, no customer said “You know what. I wish some company would make a machine that uses microwaves to cook food faster!”…yet the microwave oven was developed. Or said in 2003, “Why can’t a company invent a magazine-sized device to surf the web?”…yet the iPad and other tablets are now the rage. And that’s the case the with the majority of new products, especially those that can help differentiate a business from competitors. Customers, meaning 99.999% of people, are not thinking like product developers, but that doesn’t for a nanosecond mean that when presented with a “WOW” product they won’t want it, tell their family and friends and their social media circles that they should get it as well.
“My customer isn’t asking for it” in essence says that your organization is one built on the idea that only after a number of customers come in asking for it, will you decide to create, utilize or stock the whatever-it-is. Which more times than not is after your competitors are already doing it. We would agree that’s not how an organization should act if the object is to grow. And one of the tenets of growing means that you are leading customers. You’re bringing new ideas and solutions to them that either enriches their lives or drives future sales to your business or has them see you in a different light. “My customer isn’t asking for it” also suggests that the organization is a follower, a “me-too” and not an organization that people think of when they’re looking at viable alternatives, that wonders why customers aren’t doing business with them as they did many years ago.
“My customer isn’t asking for it” defines your organization on so many levels both to your internal staff as well as to the outside world. It speaks to how you view what customer service means; how you want your brand to be defined and compared to competitors; whether you’re seen as a progressive leader or a reactive follower in your industry or marketplace; if you’re a company that embraces new ideas or is the epitome of the status quo.
“A lot of times, people don’t know what they want until you show it to them.” — Steve Jobs
So, was Steve Job’s right?
Well there’s certainly a number of organizations that say he isn’t. A lot of firms wouldn’t feel comfortable pressing forward with a new product offering or service feature without doing significant customer research to determine all aspects of consumer interest, purchase intent, etc. Think about the expenses, the manpower allocation, the buy-in from internal resources; and so on. Yes, there is much at stake. Any innovative company struggles with how much to listen to customers.
That said, there are many respected professionals who would say that, yes, he was right. There are hundreds and thousands of new products each year that find overwhelming customer acceptance with little or no consumer research being done. These companies are successful because they push boundaries and do the unexpected. They’re about anticipation, instinct, insights—and, ultimately, curiosity and experience. Going back to Apple, if customers were asked how they’d like to improve the music listening experience back in a day where CD players ruled, they likely couldn’t have envisioned the iPod.
Consumers can’t think in abstractions. They cannot envision a new concept. They can only compare against their current frame of reference. When you rely on consumer input, it is inevitable that they will tell you to do what other popular companies are doing. So you need to make the big leap for them. You need to provide them with a reason to buy, a reason to brag to their friends. Expect the “new-to-the-world” ideas to fall on deaf ears. Consumers will, however, change their tune when they can see, touch, and explore. So, do customers really know what they want?
“If I had asked people what they wanted, they would have said faster horses.” –Henry Ford
To avoid stepping in the “My customer isn’t asking for it” business trap, here are a few things to give thought to as you move forward:
- Start with understanding your customer better than you now do. Whenever our firm calls customers of our clients to gain insight about why they purchased a particular product or service and we then share it with our clients, I can tell you that in each and every instance, the client has said something along the lines of “Really, they said that?” Or, “I would never have guessed that’s why…” Or, “This is going to cause us to change how we do business.” Every. Single. Time.
- Successful, market-leading businesses hold a vision for their customers. These businesses use their unique insight into their customers’ day-to-day lives to see what tomorrow will look like and create the solutions that meet them at tomorrow and beyond. They understand that the customer is always changing. You have the opportunity to serve them as they change – or you can take a narrow-minded perspective and only sell to them that which you already have to sell.
- Understanding the business that you’re really in helps you to see what kind of products and services your customer would be receptive too, or even crazy about, beyond your current product and service offerings.
- Think about the sort of offerings that could have your customers react to emotionally.
- Seeing your current and prospective customers as people who desire new products and services… the kind that others aren’t offering, means that you see your company as a never being just part of the herd.
So maybe the next time the words “my customer isn’t asking for it” cross your lips, regroup and think for a moment what that might say about you and your organization. And then think about what if the competitor down the street said, “Hmm. That’s an interesting product. Let’s see if we can make something new happen for our customers. They might just love it!”
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
April 27, 2016
If you’ve ever watched a sporting event, you or someone else with you probably have said “they’re not trying to win…they’re just trying not to lose.” For me, there’s almost nothing more frustrating than seeing this approach take place, especially since it doesn’t need to be that way to succeed. And so is the case with oh-so-many companies who say one thing (i.e. we’re here to win) but act entirely differently. If you’ve spent any time in business meetings, from small companies to Fortune 100 as I have, you’ve heard gems like: “We’re not quite ready to take that step yet,” or “I just don’t know,” (reeking of indecisiveness) or my favorite “Let’s not go there just yet.” In short, these are all about the safe bet and not having the courage to step out and be different.
Speaking from experience, these verbal roadblocks are generally erected by people who have no involvement in the sales or marketing of the company. People who haven’t actually spoken to someone at the street-level (branch, store, dealership, etc.) in forever, and so what they “know” comes from what others may have told them or what they unfoundedly believe without any support. These folks aren’t in the business of finding and pursuing new growth opportunities. Instead they’re the “glass half empty types.”
What I don’t get is how CMO’s and other executives in the marketing department allow the idea of “playing it safe” to become part of how the company does business. Playing it safe means trying to figure out how to please all the people all of the time (and protect one’s own butt in the process). It’s what happened to companies we once knew as solid brands and money makers…Radio Shack, Borders, and others. They became complacent with disregard (maybe arrogance) to the changing marketplace. From office politics (i.e., give the boss what he wants) to running the same ad month after month after month. Wearing the clothing of “play it safe” doesn’t lead to standing out in a crowd. Nope, it’s more like being part of the herd. You’ve heard the old saying: “safe bets never bring in the big money.” You see it in Las Vegas. When the odds are low, there’s not much money to be made. When the odds are high…well, that’s when the payout is high. In business, it’s pretty much the same. If you play it safe you’ll probably make some money; but it’s those who are willing to venture out where the naysayers can’t be found who are more likely to come out on top again and again.
Let’s be clear, I’m not at all advocating throwing smarts and due diligence out the window. We’ve seen dumb risky moves played out day after day, from reckless over-expansion in a turbulent marketplace to not taking cover in a tornado and finding that person a county over. What we don’t see are news headlines that say, “Astonishingly risk-adverse solar panel company on verge of collapse.” Or, “Stunningly conservative business approach pushes technology company to the brink of failure.” Or “Manager retires after a run-of-the-mill career and regrets never having pushed the envelope to see what was possible.” The dangers of playing it safe aren’t immediate, evident, and spectacular. They’re not headline makers. They develop slowly over time and are almost impossible to pinpoint. This makes them more dangerous than the prominent screw-ups that get written about because they’re like a nail in a tire that causes a slow leak and you don’t readily notice it as you go about your business on a daily basis. You only come to realize what’s going on when stuck and you’re not really sure how it happened. The dangers of playing it safe are hidden, silent killers.
I’m convinced that too many people put too much energy into playing it safe. There’s a fear that they might do something that everyone won’t like and as a result they’ll possibly lose customers (when instead they should be putting as more energy into getting more customers). I get it…playing it safe, while dangerous in the long term, just feels better in the short term. And so people naturally gravitate towards playing it safe. But I’m here to tell you that’s wrong because it leads to boring marketing and, last I checked, boring leads to ignoring.
The reason boring is something you company should avoid like the plague is because you don’t see the underlying harm it causes. You never see the customers who don’t show up. You have no idea of the business that you’re not getting because your marketing isn’t memorable or passed along person-to-person. It’s not fascinating or captivating. Now it’s easy to convince yourself or others throughout the organization that the problem is there’s too much competition, or that prospects are focusing on something else or that people have a short attention span. And while maybe some of that is true, it’s just easier to point the finger at others or other reasons to explain the lack of success you’re having. So you see, playing it safe doesn’t keep you safe, and in fact, it’s the riskiest thing you can do.
I’ll leave you with a quote by the advertising legend, Bill Bernbach, who said: “The truth isn’t the truth until people believe you, and they can’t believe you if they don’t know what you’re saying, and they can’t know what you’re saying if they don’t listen to you, and they won’t listen to you if you’re not interesting, and you won’t be interesting until you say and do things imaginatively, originally, freshly.” To bring this home a bit more, insert that name of your company each time you come to the word “you.”
C’mon, life’s just too short to settle for “blah.” .
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
September 9, 2015
Do prospects have a clue who your company really is?
Over 55 years ago, specifically in 1958, a powerhouse publishing organization, McGraw-Hill, ran an ad in their magazines that became known as the “Man in the Chair” ad and you’ve probably come across it because it’s become iconic. The ad showed a stern faced, balding, middle-aged executive wearing a bowtie and a brown suit, sitting in an office chair, hands clasped together and looking intently at the reader as if the reader was a salesperson. To the left of his picture were a list of 7 very direct “I Don’t Know” assertions, followed by even more pointed question:
I don’t know who you are.
I don’t know your company.
I don’t know your company’s product.
I don’t know what your company stands for.
I don’t know your company’s customers.
I don’t know your company’s record.
I don’t know company’s reputation.
Now—what was it you wanted to sell me?
I think it would be safe to say that the importance of being able to addressed these questions are as important today as they were 1958. Crazy how things don’t change. These questions are timeless not just for B2B marketing, but all types of marketing and for all individuals responsible for communicating on behalf of their respective organizations. And one could probably argue that in today’s digital and social media world, it’s maybe even more powerful. (Click on the video at the bottom to see what I mean.) It remains a clear outline of fundamental sales and marketing questions every organization must be able to answer. How your people and marketing efforts address these seven “I don’t know’s” might very well determine if you get the new business…or not.
I don’t know who you are
When was the last time you made a major purchase without knowing anything about the company? Yeah, me too. Every sale requires a knowledge base or understanding with the brand or a person prior to a sales taking place. Now, however, salespeople spend less time on cold-calling, so that familiarity has to come from somewhere else. What is that “somewhere else” for your organization?
I don’t know your company
B2B buyer behavior has changed a lot… in even the past five years. The main change is that if a buyer needed to get information on a certain solution, they needed to go to the vendor. Now the buyer has lots of sources of information. In fact, the buyer probably doesn’t want to talk to the vendor because they’re the least credible source of information. So the buyer goes around and does all their research…without talking to a vendor as long as possible. Sales opportunities for a company may die depending on how easy it is for the buyer to find your info and say, “I’ve heard of you.” So the implication is that if you do any B2B marketing, you’re going to have to produce stuff or give them reasons to interact with you. And the only way you can do that is by producing really amazing, useful, relevant content that a prospect is happy to engage with, happy to consume and happy to share. How strong is your presence in the digital and social media space?
I don’t know your company’s product
Personal selling is still an important part of having people know something about you, but not in the way it used to be. Word-of-mouth was always important, and it’s ten times easier to get word-of-mouth advice today as a result of the all the online resources available. People want the information right away, and if it’s not available or where they think it should be, they’ll look somewhere else, and you won’t even know that they looked. Another prospective sale — which could have led to numerous repeat sales — goes to a competitor. Your making sure that product features and benefits are clearly known beforehand will be the difference between speaking to a prospect or not.
I don’t know what your company stands for
Whether you call it a USP or value proposition, without it, without a good one, you’re dead! If you can’t very quickly describe what makes you, your service or your company truly special in the eyes of the customer, don’t expect your customer to do it for you. By default, they’ll just put you on the shelf called “commodity,” and there you’ll stay. To have a lasting, profitable business with another business, building both brand awareness and credibility is job-one in B2B marketing. After all, it is much easier to open doors when the potential customer inside knows who you are, what you’re about and why you might be a better alternative than the next guy who knocks on the door.
I don’t know your company’s customers
In the past, referrals were personal, or references were checked personally. A Google search can find referrals quickly, especially the ones than you’d prefer not be found. In today’s world, the majority of prospective customers, both B2B and B2C, spend time researching online or through social media before they buy. They depend more than ever on word-of-mouth references from people who have used those brands or products – whether those references are in the form of anonymous reviews or client testimonials. Think Angie’s List, Buzzillions or Yelp. In fact, according to a the marketing group, ODM, about 90% of consumers trust the word of people they know and 70% of consumers trust the word of people they don’t know. Just look at how we shop online: one of the first things we do is check the customer rating number on the product. And then we typically read the actual customer reviews to see why someone gave that product 1 star and why others gave the same product 5.
I don’t know your company’s record
Letting prospects know your company’s track record is easier today than it used to be. There are channels upon channels – from your website to social media to e-newsletters and email blasts to press releases – that can be used to ensure that the message is delivered in a consistent manner. Buyers want to have some comfort in knowing that you’re a company with a record of achievement and innovation, a company that has won awards for products or service or operation, an organization that’s been around for a while, one who isn’t caught up in multiple lawsuits, etc.
I Don’t Know Your Company’s Reputation.
We’re talking about your company’s standing…status…character. Things that boil down to “can they trust you?” Will people find out that you do what you say you’ll do? Act with integrity? Do you come across as thought leaders in the industry? Is the company aligned with other organizations that have good reputations? You get the idea. Buyers cast verdicts on reputation with their pocketbooks, withholding business from companies they believe are ethically deficient and rewarding those with good reputations. And, it doesn’t take long for judgments to spread. Will prospects see a company that values its customers or a company that people have no problem calling out in social media?
Now, What Was It You Wanted To Sell Me?
The original “Man in the Chair” ad was published long before Twitter, blogs, discussion boards, web 2.0, etc. We’re in a new era. We’re all learning new ways to connect with prospects. But as things look like they have changed in the ways that we engage, inform and become known to our markets, the basic message behind the ad is just as relevant today as it ever was. Being visible to our prospects and winning credibility in word and deed is still critical. Today it takes new ways of thinking and new ways of engaging in our markets and conversations as well as reframing some of the old ways that we went about it before.
As we know, sales start before a salesperson makes contact. Times change, markets change, technologies and approaches change…but marketing fundamentals and human nature don’t. What would be said if the next sales conversation your company had, over the phone or even in person, was with the “the man in the chair?”
Click on the video and see a comparison of the original “Man in the Chair” with how that would play out in a modernized version for today’s world.
[youtube https://www.youtube.com/watch?v=9Y3DDqmGizc]
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
August 26, 2015
I met a woman at social event last weekend and turns out she’s the president of a well-known company here in Southern California. During our conversation, she said that right now, the company — and she specifically called out her Marketing Department – is probably not doing all that it could to stay ahead of the curve. We talked about all the different things that “staying ahead of the curve” might mean to an organization, from keeping the company positioned as a leader to keeping one’s eyes open for change before it happens and before it’s too late to implement innovations. In short, we agreed that getting ahead of the curve provided three primary benefits: it would take advantage of opportunities that otherwise might be missed; it would, as much as possible, stop calamities from happening; and it would allow the company to be better prepared for the future. I can’t imagine that any decision maker or Marketing Department, especially in this new world of business, wants to be seen as a victim of events, caught unaware and therefore scrambling from one initiative to another. Right?
Unfortunately, too many companies wait too long to begin the process of change and do so only when the writing is on the wall. Alternatively, the really successful companies, the one who people see as operating from a position of strength, change before they must. There is no denying that high performing companies sense the need for market changes early, and act accordingly.
So then, what are some things that a Marketing Department could do to stay ahead of the curve and in doing so give the organization a leg up from others.
Quitting Not Allowed
I’ve seen this on more than one occasion, and the successful companies know this to be the case, which is not to quit when everybody else does. That’s how you go from successful to crazy successful, and that’s how you dominate your industry no matter what it is. You develop or take on a great product that’s different, or you take an idea further. Dominate by putting out one idea after another after another… Dominate by not quitting. Dominate by trying, failing, trying again. Take your good ideas and make them better, take them further, show everybody how it’s done… get ahead the curve and stay well out ahead of the curve.
Don’t follow Others
In business, you always want to be ahead. Ahead of the competition…ahead of the trends…ahead of creative ideas. That said, staying ahead of the competition doesn’t always mean you need to worry about what they’re doing. Instead it’s better to do things to move your own business ahead rather than engaging your competitors in any sort of fight. It’s critical to know your competition, but don’t follow their every move or duplicate everything they try. Trust your instincts. Be original. Be different. Be creative. Do your own research, try new strategies and new product or service offerings that you believe in. While studying competitors can be shortcut to learning what works, it can also be a waste of time. At the same time, what’s working for you today will probably be imitated by your competitors tomorrow so it’s critical that you continue to innovate, invent, think differently, and stay ahead of the curve, including your own.
Let’s be Partners
Consider forming a strategic partnership with a noncompetitive business to grow market share and visibility. Brands are judged by the partners they keep so innovative partnerships can make brands seem cooler, more modern, more distinctive, more interesting, and more noteworthy. Innovative partnerships serve several strategic purposes such as enhancing the images of each, combining resources (financial and marketing) which result in synergistically higher levels of brand awareness for both. Not only will you have access to a completely new “Rolodex” of buyers, but you can share things like marketing, advertising, product development, sales, and branding.
Look Outward
Stay ahead of the curve by seeing what companies outside your industry are doing; understand how that idea or model might apply in your industry and be the first to apply it. Look internationally as well. How many times have you read about an interesting product that was launched in another country? Lots of times, right? In short, be curious and ask yourself why certain companies are now doing what they’re doing. Maybe they’re seeing something that you can use for your own business. And let’s not forget about just keeping your ears and eyes open as you go about your daily business. Don’t wear blinders as you live your life.
Flex with the Times
Flexible strategies based on customer need are more successful than sticking to a plan and holding course the whole way. Adapting plans to suit the market is an essential part of getting you closer to what really resonates with the consumer. That doesn’t mean that you’re so open-minded that your brains fall out, but rather that you at least consider what the market wants and how that could be something the organization should put resources against. If people want what you make in a different color, quantity or package, or provide your service in a different time frame or product bundle, the response can’t be “Oh, no. We just don’t do it that way.” Or, don’t be surprised when a competitor says “Sure. We can do that!” Also, stretch your mind to learn new skills and explore new approaches. Look for learning in post-project reviews, customer meetings, research and yes, even in mistakes. Think quickly and react decisively is critical to success of business, and its hallmark for staying ahead of the curve.
The course of business is rarely, rarely ever like a desert highway where things don’t change or if they do, you can see if from a mile away. Instead, the path of business in today’s new normal will continue to be more curvy than a mountain road. Instead of driving the curves, look to take a more aerial view. It’s amazing what you’ll be able to see down the road.
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
March 10, 2015
“What do you mean they’re no longer a client? Are you kidding me? When did that happen? Why did they leave? I can’t believe it!” Have you heard (or said) these words in the past few months or so?
Well, as we all know, clients come and clients go but the sad part about it is that more times than not it’s because we’ve lost track of them or taken them for granted.
Which brings me to the question that begs to be asked: “Why do customers leave?” Curiously, most business owners and managers have the exact wrong idea about why customers leave. Most people believe that customers leave because:
- They found a lower price.
- Their needs have changed.
(Drum roll please)…Wrong!
According to an in-depth study by the research firm CRMGuru, the reasons customers give for taking their “business down the road” are:
- Bad customer service: 74%
- Poor quality of product: 32%
- Pricing: 25%
- Functionality/Needs change: 15%
As you can see, when it comes to keeping your existing customers, customer service is three times more important than price–and five times more important than functionality. Which obviously means that if you want to keep the customers you’ve got, you should think about reversing priorities and pay more attention to customer service and quality – and, consequently, less attention to functionality and price. I fully realize that this runs contrary to 90% of what most people think is important, probably because price and functionality can play a large role in new customer acquisition.
Yet, many marketing plans are so focused on customer acquisition that they largely ignore customer retention. Even a tiny change in customer retention can have a large effect on long-term profitability and growth. This shouldn’t be underestimated. The easiest way to grow your customers is not to lose them. In fact, I recently read that 96 percent of dissatisfied customers don’t complain. They just take their business to one of your competitors, and the unfortunate thing is that you’ll never know why. And what’s worse, while they may not tell you what’s wrong, they will certainly tell plenty of others!
Want to get an edge over your competitors? With a little attention, your business can be one of those which can negate customer churn and improve profitability. Here’s a list of the five strategies (only limited by space) you can use to improve customer retention.
Keep them on your radar screen
So many companies do an excellent job of making the initial sale, then start chasing other prospects and in the process forget about their current customer…ignore may be the case as well…or they just get complacent. Gaining a new customer only begins when someone makes that initial purchase decision because there’s this thing called “buyer’s remorse.” To make sure that future referrals and repeat business materialize from this customer, it’s important to make sure that your customers’ fears are put to rest, and that you demonstrate by your actions that you really care and that they’ve made the right decision to deal with you. This can be accomplished by putting a plan in place to communicate with them, and sell to them again and again, constantly proving that your company was the right choice.
Build engaging relationships
With CRM programs all the rage, coupled with Big Data and predictive analytics providing marketers with in depth customer insights, the key to engagement is through personalization. In fact, as consumers ourselves, we expect and demand that companies personalize messaging and offers so they’re relevant to our wants and needs. You can do this by providing clients with offers that are personalized to them. Send them offers and information/content that they’ll like at the right time based on when they might need the product. Do some A/B testing in order to see what catches the attention of your customers. And, even recommend products to them. Offers, timing and product recommendations all show that you know and care about your clients.
Share useful content/information
Customers buy from people. They buy based on trust. Building trust with new customers is the key to getting them to buy in the first place. And maintaining and strengthening that trust is the key to keeping your customer over the long term, improving customer retention. In today’s marketplace, it’s not enough to have a wonderful product or service, you also have to help educate your customers on how they can use your product or service better. Content must abide by three criteria: it must be expected, valuable and relevant.
Give Back
Going back to your own personal experience for a minute, what is your impression of a company that, out-of-blue, gives you something you could use….for no cost. Not as an incentive or ulterior motive to purchase or do something else, but rather “just because.” It probably left you feeling good about the company, maybe even made you happy. Using the element of surprise to your advantage is a good thing because people naturally remember when something surprised them in a good way. You see, winning customers over starts with winning their thanks on individual terms. And while technology allows you to offer up this surprise to whatever scale you want, the fact is people remember acts of kindness when it feels personal.
Provide Exemplary Customer Service
When it comes to retaining customers, nothing’s more important than hands-on customer service. So let’s address a few different ways that customer service plays itself out. Critical to this is making sure that interactions that you have with the customer are quality interactions. Think about it: when you’re the customer, you expect the company that you’re dealing with to be courteous, willing and helpful, right? Also, make sure you’re dealing in the communications mode that your customer prefers. Although the majority of people prefer email, some like receiving calls or connections through social media channels. On that note, being proactive, or anticipating what the customer might need or addressing problems before they happen is always better than the alternative. This could be as simple as calling and asking if everything is OK before the client calls you to say something is not. Or letting them know that the product they recently bought is being redesigned and will look different or is going to be sold in bulk versus single-product purchases. And lastly, there’s nothing like hearing from the customers themselves. Some sort of a feedback system, such as a survey or speaking directly with your loyal customers, shows them that you really care about their recent experience with your company and will help identify any issues to address.
Regardless of what you’re selling, your long-term profitability is largely dependent upon your ability to keep current customers, compared to acquiring new ones. While you must always try things to attract new customers to your business, don’t take for granted those who are already in your camp and are supporting your business. Don’t forget, every now and then, to “dance with dem dat brung ya.”
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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com. You can also connect with Rolf on LinkedIn.
