Presentation on theme: "How to… 1. Pick more profitable customers, 2. Grow your biz…and, 3. Have a life! Presented by Donald Cooper, MBA Sault Ste. Marie Innovation Centre June."— Presentation transcript:
How to… 1. Pick more profitable customers, 2. Grow your biz…and, 3. Have a life! Presented by Donald Cooper, MBA Sault Ste. Marie Innovation Centre June 18 th, 2008 June 18 th, 2008 3 key secrets of market intelligence…
Secret #1: The 1 st customer you serve is you! Who are you now… and who do you commit to become? SAGEADVICE
Theres 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 hadnt 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!
#1 - ROI of 15% to 20%. #1 - ROI of 15% to 20%. #2 - ROI of 10% to 12%. #2 - ROI of 10% to 12%. #3 - breaks even. #3 - breaks even. #4 and #5 - will lose money! #4 and #5 - will lose money! Profitability profile of a market with too many competitors: Market can support 3 competitors…but there are 5
Lets face it…mediocrity is no longer an option! If youre trying to succeed in business by being mediocre, once your customers have been to Disney World…youre 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 youre committed to become to be a profitable and responsible market leader in 3 to 5 years! OUR VISION 1.____________________ 2.____________________ 3.____________________ 4.____________________ 5.____________________ 6.____________________ …donaldcooper.com Free Articles B9.
There are actually 2 kinds of future: ? ? ? #1. The future that will happen... - population & demographics, - population & demographics, - changing tastes & priorities, - changing tastes & priorities, - invention & discovery, - invention & discovery, - political & economic changes, - political & economic changes, - new emerging nations, - new emerging nations, - war & terrorism. - war & terrorism. #2. The future that you commit to proactively create.
Secret #2: Choosing your profitable customer segment. SAGEADVICE
Key questions to ask… 1. With whom do I have a special relationship, unique understanding or powerful connection? 2. Whos serving them now and where are they falling short? 3. Is the market that Im 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… Hes our quiet guy!!
You cant be an expert on everyone and you cant make everyone happy…thats why God invented Niche Marketing! Niche marketing I dont know what the key to success is… but the key to failure is trying to please everyone. …Bill Cosby
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Dan the dangerous tree man: DAN the dangerous tree man Call (705) 689-2133 Expert tree removal Dan specializes in the difficult tree removal work that others wont even attempt. …and when you call Dan, its never about price!
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.
You must create USPs Its not good enough to be unique… we must be COMPELLING! CPDs
Dont fall into the research trap… When we do research, we find out what people expect…then, when we deliver what they expect, we wonder they dont go Now, if you could just tell me what youd like… WOW! So, we do research, not to find out what we should do…but to find out that which we must exceed!
Most businesses make the mistake of defining themselves by… 1.The products or services theyve always sold, 2.How and where theyve always done business. …its all about them and its 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: (whom 1) Were in the business of helping _________ ______________________________________________. …better than our competitors. 2) To ________________________________________ ______________________________________________ ______________________________________________. (do what) 3) By ________________________________________ ______________________________________________ ______________________________________________. (doing what specific things for them) including where)
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.
…Peregrine Lodge, Queen Charlotte Islands, B.C. … …Peregrine Guide, Stef Olcen, displays Peter Toigo Jrs spectacular 72 lb. Chinook. A BIG IDEA… Defines your Value, Grabs your customers, Focuses your team. We need to create compelling BIG IDEAS! …Peregrine Lodge, Queen Charlotte Islands, B.C. … …Peregrine Guide, Stef Olcen, displays Peter Toigo Jrs spectacular 72 lb. Chinook.
Your BIG IDEA must be… 1.Compelling …it grabs your target customers. 2.Unique …if its everywhere its not a BIG IDEA. 3.Deliverable … promise & dont deliver = bad idea. 4.Profitable …losing money is not a BIG IDEA! 5.Sustainable …whats its life expectancy?
Businesses built around a Big Idea: 1. Lenscrafters 2. Dell Computers 3. M & M Meats 4. ING Direct No branches, higher interest. We sell direct to you! Hundreds of meal ideas …just one aisle! Eyeglasses in an hour!
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. Enlarged his shop. Carries rebuilt inventory. Rebuilds 4 or 5 at a time = economy of scale. 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. Delivers rebuilt engines and cylinder heads immediately. Garages turn jobs over quickly and customers get vehicle back in 3 days not 7- 8 days. …
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. Engine rebuilder changes business model to thrive in shrinking market:
What compelling… 1) Functional, 2) Emotional and, 3) Financial Value …are you delivering thats worth bragging about? Advertising problem or fundamental marketing problem? Advertising is creative bragging! …the Average North American is exposed to 8000 ad messages per week.
When youre 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, Name & address, Phone, fax, e-mail, Phone, fax, e-mail, Purchase history, Purchase history, Special needs & preferences, Special needs & preferences, Lifestyle & interests, Lifestyle & interests, Significant dates, Significant dates, Preferred method of payment, Preferred method of payment, Complaints & problems. Complaints & problems.
Finally… Thank you for joining me today…and I look forward to chatting with many of you this afternoon. SAGEADVICE …and a promise of ongoing help.
Free booster shots! Monthly E-tips on how to… IDEAS A promise of on-going help! sell more, sell more, manage smarter, manage smarter, grow your bottom line…and, grow your bottom line…and, have a life! have a life!
So… For your business, For your business, For your customers, For your customers, For your bottom ordinary life… For your bottom ordinary life… Whats possible? and… whats next? Whats possible? and… whats next?