This column is a compilation of thoughts, ideas, and courses of action suggested by business owners and senior business leaders. They come from discussions on specific topics that occurred over the last six months.
Q. Where will the next piece of business come from?
A. This question reflects uncertainty as to direction. To determine direction begin with a strategic focus, specifically on target markets. Understand who buys from you, and why. The best source of this information is your historical sales. Identify who has bought from you in the past, and why they did so. That will help define the types of customers who have the highest probability of buying from you in the future. Once you have a strategic focus, define the tactics for how you reach them (see the next question).
Q. Our marketing and advertising efforts are just not attracting enough interest and generating enough leads. How do we improve lead generation?
A. Begin by not assuming your marketing message is correct. Do not assume you understand how and why prospects buy from you. Ask them directly why they buy from you. Customers will tell you what your value is to them. That information forms the core of your marketing message.
Once you confirm a strong message, examine how you deliver that message. Do you connect directly with targeted customers and prospects? Is your message clear in the value it communicates? Does it cite successes? Does it stir emotions? Does it motivate action? All of these elements are part of your marketing message and delivery – clarity, value offered, and motivation to action.
The specific tactics you use to deliver the message depend on the target customers you want to reach and how they receive information. Advertising, online marketing, event marketing, direct marketing, and relationship marketing are some examples of approaches to explore.
Q. We increasingly compete on price alone, and have to make more and more price concessions. How can we get out of this cycle?
A. There are three possible symptoms underlying this problem. One, the focus might be on the wrong types of customers. Two, there may not be a differentiated value that commands higher, value-based pricing. Or, if there is differentiated value and the customer focus is correct, the skills of the sales force may not be adequate enough to ask for and to receive the price you deserve. The first two symptoms indicate more foundational issues that are greater concerns.
Q. We are losing a lot of competitive bids, and we want to specifically know why.
A. Begin answering this by looking inside, then going outside. On the inside, conduct a “lost sale” review. Assemble the team that worked on the bid, and go through the entire process. The goal is not to lay blame. Doing that, or even intimating that that may occur will shut down the candor and honesty needed in the analysis. Rather, focus on the facts and the process to uncover issues, trends or symptoms that underscore why the loss occurred. If there are personnel issues, deal with them directly in one-on-one discussions.
Go outside the organization and get direct feedback from customers. Ask them their views on the competition and how you compare in relation to competitors. If possible, speak directly with the company that did not select you and ask them for direct and honest feedback.
Ken Cook is managing director of Peer to Peer Advisors, an organization that facilitates business leaders helping each other. You can reach him at kcook@peertopeeradvisors.com.
