In my first Fleet Squadron, VFA-192, the World Famous Golden Dragons, back in 1992 (not to date myself too bad), I had an instructor and friend, "Otter" McNease, who always used to say, "Don't get cocky, your only as good as your next (carrier) landing."
Back then, I used to laugh at him. But that was because I really didn't get it.
In youth, you are SO worried about building a reputation, that you forget that you need to create your future. What Otter was trying to tell me was that your value to the world doesn't come from what you've done, but what you can and will do in the future.
Unfortunately, many people spend their entire lives and never learn this very powerful lesson. The world around us is changing - we must look forward if we want to provide value in it.
That's not to say that your past - your reputation - does provide some indication of what you can do in the future, but like they say on all the Investment Ads, "Past performance is no guarantee for future returns."
So, stop resting on your laurels. You may have been great yesterday, and good today, but if you are NOT "actively trying" to be better tomorrow, then you are most likely not going to be. And if you aren't trying to be better tomorrow, why should I believe that you have any more value to me.
Last night, there was a race between Ashton Kutcher (@aplusk) and CNN (@CNNbrk) each trying to be the first to a Million followers on Twitter. Ashton Kutcher won, but that doesn't matter. Truth is, neither up to this point warrants that kind of glorification - they haven't provided the secret to life or answered the all important question, "Did Lee Harvey Oswald act alone?" But they created a fanfare and it has paid off for both of them.
Problem is, if they can't deliver on their promise - the implied promise of adding value to their follower's lives - then it won't do any good. And their followership will fall off. Remember, it has little to do with what they have said, and everything to do with what they are going to say.
Remember this little life lesson, the next time you start to believe your Headlines. It's not what you did yesterday, but what you can do tomorrow that provides real value in today's world.
Showing posts with label Value. Show all posts
Showing posts with label Value. Show all posts
Friday, April 17, 2009
Wednesday, April 1, 2009
Your Customers Are Looking For More Than Cheap Prices
I had an great Twitter conversation yesterday with a good friend, JaWar (yes, that's his name) about a great topic - customer loyalty and price.
When Businesses don't service their clients with excellence, someone else will. Price isn't always the deciding factor. So, how do you prove this to new business owners who attempt to be the low price leader?
Answer: YOU SHOW THEM!
When it comes right down to it, building a strong base of great customers has little to do with price - and every thing to do with how you and your employees treat your customers each and every day. And surveys show that as long as you are competitive, price is rarely the reason your customers leave your business.
In fact as it turns out, the number one reason your most valued customers stay or leave your business (nearly 2/3 of all customers) is based on how you treat them - whether or not they feel that their business matters to you at all.
Unfortunately, because most business owners think "their clients" are different than every one else's, I show them the truth. You see, one of the first things that I have my clients do early in the Business Coaching process is "conduct a survey" - to find out what their customers are thinking. But, I'm not talking about your usual customer satisfaction / retention survey. Rather than just finding out what all of their customers are saying, we focus on breaking down their customers into three groups:
- Bad Customers that are the bane of their existence,
- Good Customers that come and go, but have no real loyalty, and
- Great customers that are raving fans and cheerleaders.
And then determining what separates the three groups.
The key to the survey is that you can not directly ask the obvious question - "are you happy with my business and my prices?" That will skew the data. It's more important to have them divulge their overall satisfaction with the business and then determine what factors most influence their decisions.
And in everyone of these surveys, one thing stands out, price is not a break-out issue - Customer Service is.
The numbers bear it out, all three groups of customers (bad, good, and great) are, at best, moderately satisfied with price. And there are no indications that lowering prices will have any bearing on customer loyalty.
So, although lower prices may draw you more customers in the short term, you won't gain any more in the long term. Instead the only thing you will do is decrease your profit margin.
Rather than focusing on price, instead offer value. Offer something to your customers that they can't get anywhere else - your service. And make it the best you can. And know that by doing this and making your customers feel appreciated, you are more likely to turn your good customers into great ones while at the same time, keep your great customers coming back for more - while bringing all of their friends and family.
When Businesses don't service their clients with excellence, someone else will. Price isn't always the deciding factor. So, how do you prove this to new business owners who attempt to be the low price leader?
Answer: YOU SHOW THEM!
When it comes right down to it, building a strong base of great customers has little to do with price - and every thing to do with how you and your employees treat your customers each and every day. And surveys show that as long as you are competitive, price is rarely the reason your customers leave your business.
In fact as it turns out, the number one reason your most valued customers stay or leave your business (nearly 2/3 of all customers) is based on how you treat them - whether or not they feel that their business matters to you at all.
Unfortunately, because most business owners think "their clients" are different than every one else's, I show them the truth. You see, one of the first things that I have my clients do early in the Business Coaching process is "conduct a survey" - to find out what their customers are thinking. But, I'm not talking about your usual customer satisfaction / retention survey. Rather than just finding out what all of their customers are saying, we focus on breaking down their customers into three groups:
- Bad Customers that are the bane of their existence,
- Good Customers that come and go, but have no real loyalty, and
- Great customers that are raving fans and cheerleaders.
And then determining what separates the three groups.
The key to the survey is that you can not directly ask the obvious question - "are you happy with my business and my prices?" That will skew the data. It's more important to have them divulge their overall satisfaction with the business and then determine what factors most influence their decisions.
And in everyone of these surveys, one thing stands out, price is not a break-out issue - Customer Service is.
The numbers bear it out, all three groups of customers (bad, good, and great) are, at best, moderately satisfied with price. And there are no indications that lowering prices will have any bearing on customer loyalty.
So, although lower prices may draw you more customers in the short term, you won't gain any more in the long term. Instead the only thing you will do is decrease your profit margin.
Rather than focusing on price, instead offer value. Offer something to your customers that they can't get anywhere else - your service. And make it the best you can. And know that by doing this and making your customers feel appreciated, you are more likely to turn your good customers into great ones while at the same time, keep your great customers coming back for more - while bringing all of their friends and family.
Sunday, March 1, 2009
Taking Control and Making It Work!
In spite of his industry averaging a 20% decline in sales because of the recession, one of my clients is actually setting out this year to achieve a 25% increase over last years gross revenue numbers. Is he crazy thinking such a thing could happen? Some think so.
I don't! He would only be crazy if he did the same things, took the same actions that he did last year, and thought he would still reach his goals.
But he's NOT! He's taking control and making it work.
In fact, he is taking such big steps to make his goals come true, there is a chance that he could do 50% better (or even more) than last year - that is if he keeps his focus and continues to push himself out of his comfort zone.
However, in spite of the "lofty" goals, what he's doing isn't magical. And it will probably sound simple to many of you - but the key is what he's doing, but instead that he is doing it. He's not waiting for the market to turn or for someone else to come in and save his business. Hes taking control and making it work, because you can't count on either of those two things happening anytime soon.
His strategy is simple - develop a consistent product that generates repeat clients, while leveraging inexpensive measurable marketing methodologies to attract new customers into the fold. To make this happen, he's broken down his strategy into three definable action areas:
- Go aggressively after B2B (Business to Business) clients - Realizing the stability of B2B revenue, my client is focusing considerable effort on this phase of his business. It was part of his business that had been very lucrative for his him in the past. However, because of a lack of well defined systems, management of this effort was insane - often causing him sleepless nights countless headaches. But now, he has committed to putting together both operational systems to keep his services consistent and sales systems to gather more of reliable clients and begin gathering market share (while others are retracting).
It's a bold plan, but he is beginning to see the benefits of his efforts -getting more and more B2B clients signing up for his services. Meanwhile, with his new operational sytems in place, the management of the service is becoming easier and easier.
- Do everything he can to keep his existing clients happy and returning for more business - Again, focused on leveraging the stability of income from keeping his existing customers happy, my client has stepped up his commitment to seek out and understand their needs and concerns. He's now going well beyond just providing a service, but also providing VALUE beyond their expectations. And again, it's paying off, as repeat B2C sales are up as well as referrals and the numbers of unsolicited testimonials.
- Attempting to get new B2C (Business to Customer) clients while leveraging less costly marketing methodologies that have very measurable results. Recognizing the cost and unreliability of his past marketing methods, my client is beginning to get smarter about attracting new clients to his business. Simply stated, he's taking more control into his own hands and making it work.
In the past, he would handed it off his marketing to other agencies and trust that they had his best interests in mind. That was costly and very unreliable. But now, he is learning how to do much of the work himself. In addition, when either time is limited or real expertise is needed, he is being more proactive with the teams he contracts out to. He is aggressively holding those that are supporting him accountable to produce what they say they will produce.
All three of these methods may seem common sense to some of you. But I ask you, how are YOU taking different actions this year to achieve your goals? How are YOU taking control of your business's destiny instead of "hoping" things will get better?
What is your strategy for improving your bottom line in the coming year.
How are YOU taking control and making it work?
I don't! He would only be crazy if he did the same things, took the same actions that he did last year, and thought he would still reach his goals.
But he's NOT! He's taking control and making it work.
In fact, he is taking such big steps to make his goals come true, there is a chance that he could do 50% better (or even more) than last year - that is if he keeps his focus and continues to push himself out of his comfort zone.
However, in spite of the "lofty" goals, what he's doing isn't magical. And it will probably sound simple to many of you - but the key is what he's doing, but instead that he is doing it. He's not waiting for the market to turn or for someone else to come in and save his business. Hes taking control and making it work, because you can't count on either of those two things happening anytime soon.
His strategy is simple - develop a consistent product that generates repeat clients, while leveraging inexpensive measurable marketing methodologies to attract new customers into the fold. To make this happen, he's broken down his strategy into three definable action areas:
- Go aggressively after B2B (Business to Business) clients - Realizing the stability of B2B revenue, my client is focusing considerable effort on this phase of his business. It was part of his business that had been very lucrative for his him in the past. However, because of a lack of well defined systems, management of this effort was insane - often causing him sleepless nights countless headaches. But now, he has committed to putting together both operational systems to keep his services consistent and sales systems to gather more of reliable clients and begin gathering market share (while others are retracting).
It's a bold plan, but he is beginning to see the benefits of his efforts -getting more and more B2B clients signing up for his services. Meanwhile, with his new operational sytems in place, the management of the service is becoming easier and easier.
- Do everything he can to keep his existing clients happy and returning for more business - Again, focused on leveraging the stability of income from keeping his existing customers happy, my client has stepped up his commitment to seek out and understand their needs and concerns. He's now going well beyond just providing a service, but also providing VALUE beyond their expectations. And again, it's paying off, as repeat B2C sales are up as well as referrals and the numbers of unsolicited testimonials.
- Attempting to get new B2C (Business to Customer) clients while leveraging less costly marketing methodologies that have very measurable results. Recognizing the cost and unreliability of his past marketing methods, my client is beginning to get smarter about attracting new clients to his business. Simply stated, he's taking more control into his own hands and making it work.
In the past, he would handed it off his marketing to other agencies and trust that they had his best interests in mind. That was costly and very unreliable. But now, he is learning how to do much of the work himself. In addition, when either time is limited or real expertise is needed, he is being more proactive with the teams he contracts out to. He is aggressively holding those that are supporting him accountable to produce what they say they will produce.
All three of these methods may seem common sense to some of you. But I ask you, how are YOU taking different actions this year to achieve your goals? How are YOU taking control of your business's destiny instead of "hoping" things will get better?
What is your strategy for improving your bottom line in the coming year.
How are YOU taking control and making it work?
Monday, February 16, 2009
Learn an Important Finance Lesson From a Child
There are lessons to be learned from all around us. Even today, I managed to relearn a very important lesson from my 7-year old son, Turner. And believe it or not, this lesson is one that everyone could learn from - whether for their business or the personal life.
Both my kids get an allowance for helping their Mom around the house. Normally, it's $2 / wk. But if they help out a lot, and go that extra mile, their Mom gives them an extra dollar. It's not a lot, but they are slowly starting to understand the value of money.
Just the other day, my son, was elated, as he counted the money he had saved. It turns out, there was over $30 in his bank. And even though, he had been very patient to save that much money, he knows that $30 has considerable buying power (for a 7-year old) and that money was burning a hole through his pocket. So off to the store they went.
It wasn't long, before he had found something that he "had to have" for only $20. What a bargain - he could get what he wanted and still have money to put back in his bank. Truly a win-win in anyone's mind.
Funny thing was that the lines at the store were long, and they had to go to another store, so my son, decided that he would just get it at the other store.
And what a great decision it was to wait. When Turner and his Mom got to the second store, he was overjoyed to find the exact same product on sale - for 50% off. That's right, my son, suddenly learned the power of shopping around - not from a book, in a classroom, or through a boring lecture from Dad, but from real life experience. By being a little patient, and investing a little time, he was going to get his new item now for just $10. What a thrill, he could buy three of them if he wanted.
But the lesson doesn't end there. You see, as Turner carried the item up to the cash register, beaming with his new found savings, he suddenly had a flash of "grown-up" insight - yet so simple only a child could recognize it. While walking up to pay, he suddenly realized that he didn't really need the object of his desire. He'd lived without up to this point and quite honestly he decided he could continue to do without it.
So when all was said and done, my 7-year old, learned his first real life lesson on value. At a very young age, he was able to see that money has value, and it can get you what you want - if you use it wisely. But more important, he learned that even having the ability to buy something, doesn't necessarily make it something that you truly want . . . or need. And that if you aren't careful, an unwise purchase today, could cost you what you truly want or need in the future.
Take a lesson from Turner, I know I did.
Both my kids get an allowance for helping their Mom around the house. Normally, it's $2 / wk. But if they help out a lot, and go that extra mile, their Mom gives them an extra dollar. It's not a lot, but they are slowly starting to understand the value of money.
Just the other day, my son, was elated, as he counted the money he had saved. It turns out, there was over $30 in his bank. And even though, he had been very patient to save that much money, he knows that $30 has considerable buying power (for a 7-year old) and that money was burning a hole through his pocket. So off to the store they went.
It wasn't long, before he had found something that he "had to have" for only $20. What a bargain - he could get what he wanted and still have money to put back in his bank. Truly a win-win in anyone's mind.
Funny thing was that the lines at the store were long, and they had to go to another store, so my son, decided that he would just get it at the other store.
And what a great decision it was to wait. When Turner and his Mom got to the second store, he was overjoyed to find the exact same product on sale - for 50% off. That's right, my son, suddenly learned the power of shopping around - not from a book, in a classroom, or through a boring lecture from Dad, but from real life experience. By being a little patient, and investing a little time, he was going to get his new item now for just $10. What a thrill, he could buy three of them if he wanted.
But the lesson doesn't end there. You see, as Turner carried the item up to the cash register, beaming with his new found savings, he suddenly had a flash of "grown-up" insight - yet so simple only a child could recognize it. While walking up to pay, he suddenly realized that he didn't really need the object of his desire. He'd lived without up to this point and quite honestly he decided he could continue to do without it.
So when all was said and done, my 7-year old, learned his first real life lesson on value. At a very young age, he was able to see that money has value, and it can get you what you want - if you use it wisely. But more important, he learned that even having the ability to buy something, doesn't necessarily make it something that you truly want . . . or need. And that if you aren't careful, an unwise purchase today, could cost you what you truly want or need in the future.
Take a lesson from Turner, I know I did.
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