Finding new customers – not as easy as it used to be

So in a prior post I mentioned that today’s consumers are exposed to about 5000 messages a day.  Add to that the human brain has a built in filter that blocks out all non-essential information and you have a tough job ahead of you when it comes to finding new customers.

In our report, the second top issue facing Ontario’s businesses is business development, or finding new customers.

The owners we spoke with said:

1. I’m facing more competition than ever before

2. I’m being forced to compete more and more on price

3. My marketing and advertising are not providing consistent returns

4. It’s harder to stand out and get someone’s attention

5. I don’t know what’s working and what isn’t. There are too many choices – which one’s are the right one’s

6. My phone has stopped ringing and my order takers need to learn how to sell

.

Through this report and over my 19 years of experience, I’ve learned that there are too many “me too” companies out there.  To many companies that deliver the bare minimum and no wow factor.  This combined with the over saturation of messages means you have to give first before you can win the business.

The CEO’s we spoke with that were the most successful at finding new customers, even in the middle of the toughest recession since 1929, gave value first.

They gave information away freely. They went the extra mile with their service.  They stayed open a little longer. They delivered a litter further. And they gave more than all of their competitors. They wanted the business more.

.

We’re not talking about slashing prices.  That’s easy to do. Anyone can lower their prices.  But it’s not a long term strategy, unless your strategy is to go out of business.  What these successful companies did, is give more value.  A lower price is not value.  Getting more for your money is.

.

They knew that giving a little extra.  Caring a little more and being real about it, would get customers talking.  My favourite author Scott Stratten says in his book unmarketing that “people spread awesome”.  They don’t spread average or boring or me too.  So if you make small improvements across all of your customer touch points people will notice.  They will notice and talk about it because when you add up all of these improvements you’ll be noticeably better than everyone else.

.

The sad news is that we’ve become a society of settlers.  We take what we get and say oh well I guess that’s all there is.  NO!  Your business can be different.  You can do more.  You can be awesome.

Finding and keeping great people

In our recent study by far the number one challenge of the CEO’s we spoke with was finding and keeping great people.  Most of them said that the recession did allow them to cut some “dead wood”, but that they also had to work at keeping their best people.

Of the companies that were doing the best, we found that they had one major thing in common.  They had everyone in the business involved in creating and executing the vision of the company.  It wasn’t a top down mentality. It was circular – it came from everyone.

This made a huge difference in the way people felt about the company. They felt like their contributions mattered.  They mattered more than just doing their jobs, they felt part of the big picture and because they were part of it’s creation, they felt compelled and responsible to see that vision come to life.

This type of culture is very attractive to great people.  They thrive in this environment and usually over achieve.

And the best part is, its easy to d.  It doesn’t cost anything to get your people involved and contributing.

When the recession hit, the companies that had been already doing this, we’re in a good position and didn’t feel the crush nearly as much.  The firms we spoke with that didn’t have this in place, but embraced it early on also came out of the recession in good shape.  However, some of the companies we spoke with waited too long and are still trying to recover.

So at the end of the day the moral to story is, get all of your people involved in the creation and execution of your corporate vision.  People are what gives a company it’s life, not your products and services.  When you engage your staff and have real and open dialogue and let them feel part of where the company is going they will surprise you and you’re company will be that much better for it. And great people will find you irresistible.

Top 5 issues facing businesses today

My partner and I recently completed a report where we interviewed over 50 CEO’s about what they did and are doing to keep their companies profitable despite the economy.

The report is free and can be found here.

We were also interviewed for a TV show that you can see here.

Over the next few days I’ll dive into each of the five issues in more detail. But the biggest revelation was not what the 5 issues were, rather that they are common to all companies no matter what your size or industry, and no matter what the economy is doing and that if you get these right, it takes care of almost everything else.

This quote is a doozy

I love quotes. I found this one today and wanted to share it.

“Never give up on a dream just because of the time it will take to accomplish it. The time will pass anyway.”
-  Earl Nightingale

Would you know if you lost “A” customer?

Last night I was working with a team from an insurance company.  During our discussions I asked “how many customers do you have”.  They said “I think we have about 3700 policies, so that probably about 1700-1900 customers.”  I asked “do you know this for sure?”, they said “no.”

Next I asked “do you know the top 20% of your customers?”, again the answer was no.

We tend to spend most of our time and money trying to find new customers. This can be an expensive and time devouring endeavour.  It can take up to 12 contacts to get a prospects attention.

I suggest you take a look at the customers you already have first.  They can be a great source of additional sales.

The first step is to categorize them.  I suggest a simple segmentation of A/B/C.

“A” customers are your best customers. They usually account for about 20% of your customers, but they generate about 70-80% of your revenue
“B” customers represent about 60% of your customers and they account for about 15-20% of revenue.
“C” customers represent about 20% of your customers and probably less than 5% of your revenue. They are also more than likely your least profitable. They also tend to complain the most and eat up a lot of time

The next step is to ensure that everyone in the company knows who your “A” customers are.  Losing one of these customers could be worth 10 of your B & C customers and could even mean layoffs.

Some of your B accounts have potential. Hidden amongst them are A’s in waiting.  You need to nurture them and grow them into A’s. But be careful, because there are also some B’s that are just C’s in disguise.

“C” accounts can be troublesome.  Some of them may even be costing you money.  Do a careful analysis of each C account because you might have to fire a few.

I suggest you do an analysis of your accounts quarterly.  Establish a criteria for what is an “A” account, what is a “B” and “C”.  Ensure your people know this as well.

Finding new customers is always a big part of growing a business, but we have to remember to keep and grow the ones we’ve already worked so hard to get.