Condoms in DRC – Defining customer value and language – back to basics in marketing and sales

A central business problem (and opportunity – these usually come in pairs) is to figure out who your customers are, what they value and how they talk about what they value.

A key concept FAB – Features and Benefits. Companies reflexively think about their products and services in terms of features. This is especially true of technically based ones – software, internet, medical, etc. Customers on the other hand buy Benefits. And most crucial to the concept of Benefits is that the customer decides what they are. Value is defined by the customer……

A classic example from the world of Web marketing is: people do not search for inexpensive airline tickets, they search for cheap tickets.

So, to round out this little rap, we need to understand who our customers are, what they value, and how they talk about that value.

Amy Lockwood

Amy Lockwood

Here is a link to a TED video I stumbled on that illustrates some of these principles: Amy Lockwood: Selling condoms in the Congo

Planes Change. Values Don’t – No Sloganeering

Plane change. Values don't United Airlines

Recently I was on an commercial air flight and was greeted by a bit of corporate sloganeering that accompanied by meal (yes, you guessed correctly that I was on an international flight). The napkin shouted out in bold blue text, “Planes change. Values don’t. Your priorities will always be ours.Continue reading

More on Why Business Plans Fail – part two – the connection to customers

In the preceding post about key causes for business plans to fail, we discussed the lack of a robust process to convert strategy into tactics, to convert the plans into the day-to-day work of the organization. This posting will take up another major failure mode. That is the failure to have a compelling customer perceived value proposition and the corollary failures to understand markets and customers more generally. Continue reading

A Silent Client Is Not Necessarily a Happy Client

Are You Holding Silent Clients in Contempt?

Do you think that a client who patiently waits for you to get work done for them without complaining is a happy client? In a world with lots of squeaky wheels and more demands than can be met, we treat the silent client with some contempt. In practice we may let their work slip further and further behind. Our thought processes seem to say, “Well, if they think this is important or urgent, they will let me know.” But this is willfully ignoring the facts about silent clients.

Beware-Silent-CustomerMany people do not like confrontation or conflict. They avoid complaining, or even appearing to be demanding. But, they are not necessarily happy with your service and they do not forget. Few people are masochists. The next time they need your services they will very likely be off to another provider who they hope will be more responsive and honest with them.

Now You Have Lost a Client and Finding the Replacement is Ten Times the Cost of Keeping One You Have Continue reading

Why Should You Develop a Business Plan for Going Concern, How to Do It, and How Do You Convert the Plan Into Action?

Why Should You Develop a Business Plan?

For every startup the development of a business plan is a  required first step. It is so obvious – business schools have course on writing the business plan and it is impossible to get funding without one. Teams coalesce around the labor. So, every startup has a business plan.

For the going concern, the ones that are now three or so more years old, the business plan (also called strategic plan -really the same thing) is forgotten, only stumbled on when a move forces someone to pick it up and wonder, “Should I just relegate this to the dumpster?”

This is not a good situation. A business without a plan is like a boat sitting in a pond just waiting to sink to the bottom for nature to compost it. Or, if it has the fate to be afloat in a stream, it will be carried along willy-nilly until it bumps into a stone or dead branch or reaches the ocean where nature will also send it to the big composter.

Every business exists in a world that is changing and filled with opportunities and threats. Your business plan is your set of oars to provide the means to pull in the direction you want to go in, to avoid the rocks. You might even row to shore and portage around the falls, to move to an entirely new river.

But, many people, even accepting the wisdom of having a plan, find it a painful exercise, all too easily avoided. This may be driven by the idea that a business plan involves dozens of pages of writing, lots of spreadsheets with numbers they really don’t believe (sometimes don’t understand). Business plans, strategic plans, these are just the exercises one does in business schools. Or it may be the folk wisdom that business plans are not a useful part of managing and they always end up on the shelf or hidden in a file cabinet only dusted off for display when in search of a bank loan.

However, shift your thinking to view the process of building a plan as a value in and of itself, and adopt a simpler more flexible business plan model you will find that building that set of oars for your little boat is fun and productive. Continue reading

The 6 New Management Imperatives by Bruce Temkin – comments

Bruce Temkin has published a free book on his blog ((experiencematters.wordpress.com)), The 6 New Management six management imperatives bruce tempkinImperatives – Leadership Skills for a Radically Changed Business Environment. Mr. Temkin sets out to define a “new set of skills” for managers. These are the 6 new imperatives:

  1. Invest in culture as a corporate asset
  2. Make listening an enterprisewide (sic) skill
  3. Turn innovation into a continuous process
  4. Provide a clear and compelling purpose
  5. Extend and enhance the digital fabric
  6. Practice good social citizenship

Lists like this one are very popular. I have been known to make lists of key practices and the like. But for the practicing manager lists are frequently tough to integrate into day-to-day work. Mr. Temkin’s six imperatives falls into this problem category. Overall, the six imperatives are reasonable enough as they stand. But I want to take a closer look at each and then suggest a more global approach. Continue reading