Achieving Business Excellence with John Spence

How To Get More Customers

Small-Business-Owner-Regrets-and-DifficultiesRecently I’ve had several friends who own small businesses ask me how to get more customers. Since this is an issue that nearly every small business owner struggles with I decided to grab an article I wrote several years ago about “How to Win in a Local Market,” and updated with some new ideas and suggestions.

1. Figure out exactly who your key target customers are – the part of the market you want to own. The best way to do this is to look at your current customer base and identify the customers that you absolutely love, the ones that are easy to deal with, really like your products and services a lot, see value what you offer, are glad to pay the full price – the ones you wish you had lots and lots of more customers exactly like them. Then take the time to write down everything you can possibly think of that clearly identifies this specific target group or groups of customers. What is their age range? What kind of car do they drive? What do they buy from you now? What is their education level? Where do they get their information – magazines, TV shows, social media platforms, and websites? What groups do they belong to? What are their hobbies? Do they have kids? What sort of jobs do they have? (if you run a B2B company you’d want to learn everything you can about their business, who there customers are, how they are positioning their business in the market and who are their top competitors).The more you can understand about your specific target market and what motivates them – the better job you can do of serving them and capturing more customers just like them.

2. Another great way to understand what motivates your target audience – is to ask them! Again, identify a group of your very best current customers then send them a brief survey with these questions:

• What, specifically, are the top three or four reasons you chose to do business with us?

• How did you find out about our business?

• Is there anything we could do to improve your experience in doing business with our company?

You might want to add a few other questions, but the goal is to look over all of the replies and see if there is a clear pattern. If there is (and there almost always is), the answer to question number one is your brand. Your customers have just told you exactly why they buy from you, which is likely the reason that other customers like them would buy from you too, so make this the main focus of all of your advertising and marketing. The answer to question number two tells you where to invest your advertising and marketing dollars – these are the places where your target customers are looking to find out about businesses like yours. Question number three tells you exactly what you need to go back and fix right away to increase the loyalty and engagement of your current and future customers. This is extremely powerful information and unfortunately very few businesses ever take the time to actually ask their best current customers why they are customers and what they could do to increase their loyalty. It is always been one of my top business mantras: Whoever owns the voice of the customer owns the marketplace. Take this to heart!

3. Once you get all this information back, create a very detailed “Ideal Customer Profile” to help you understand and stay focused on the people who will make your business successful. Clearly describe exactly who your target customers are, why they do business with you, how they found out about you, and what you can do to continuously delight and surprise them – and then make sure everybody in your company understands that critical information and uses it to guide their daily actions and behaviors when interacting with your customers — and you use it to build your business and branding strategies.

4. Determine who your top competitors will be for those specific target customers, who is already servicing them right now? Then study those top competitors to deeply understand how they position themselves – what services they offer – what promises they make – what sort of value proposition they are currently bringing to the marketplace that is, for some important reason, winning over the customers that you want to win way from them!

5. Figure out how to clearly differentiate yourself from your competitors in a way that will raise the bar and recalibrate the customer’s expectations, and be sure that the way you differentiate yourself is of true value to your customer, as defined by the customer, not by you. Understand this: All effective strategy is just Valued Differentiation multiplied by Disciplined Execution. In other words, to win in the marketplace you must offer something that is unique, exciting and compelling – that is differentiated from all of your competitor’s offerings, hopefully in a way that is defendable so it is not easy to copy – that your customers truly value and are willing to pay money for… and then you must execute on that flawlessly each and every day for each and every customer. It’s a fairly simple and straightforward idea that is exceedingly hard to do successfully. This will be one of your biggest challenges in gaining new customers and running a sustainably successful business.

6. Create strategic alliances with people who, by the nature of the business they are in, can become wonderful sources of referrals to you. You want to get as many people like this on your team as possible… but you especially want to identify the top four or five “Opinion Leaders” who are the most influential sources of referrals for you so that you can get these very important individuals on your team and creating a constant stream of high-quality, targeted referrals that represent your Ideal Customer Profile. The best way to do this is typically to define the people who have the same general customer base as you and that you feel do an absolutely fantastic job at delivering something to these target customers – that is not in competition with what you do – or even better is a complement to what you do. For example, if you are an expert in building high quality pools, you can easily partner with many of the local builders in your area. If you make custom clothing, partner with your local dry cleaners and high-end shoe dealers. If you own an accounting firm, you want to be connected with the top bankers and financial advisors in your area. If you owned a boat dealership that sells high-end boats – partner with a local Mercedes-Benz dealer. These sort of symbiotic relationships with people who are highly connected to your target customers is priceless.

7. Also determine people that are in your direct area of competition – but that you do not want to compete against, and try to form strategic alliances with them so you can work together and be in co-opition instead of competition. For example, you own a great Italian restaurant but there is a fantastic Chinese restaurant on the other side of town, why not share gift certificates to share customers. No one is going to eat Italian or Chinese every single time they go out, so rather than competing, why not share the top customers and help each other be more successful. This is why you often see five or six furniture shops or restaurants in the same mall, they are all attracting more customers to their “destination” and thereby everybody gets more business. Can you do this with some of your friendly competitors?

8. Identify your key “Moments Of Truth” — the handful of key things that absolutely have to go right in order for you to be able to meet and exceed your customer’s expectation —  and create processes to make sure that they are delivered flawlessly — flawlessly – – – every single time. For example, although there are hundreds of interactions every time you go out to have a meal, pretty much every restaurant on the face of the word only has 4 moments of truth:

• Food quality

• Service quality

• Price / value

• Cleanliness

If a restaurant does lots and lots of other things right but messes up any one of these four items badly, they will go out of business. On the flip side, if they do these four things exceedingly well every single time, customers will overlook failures in a few other minor places. So here is the BIG question: What are the moments of truth for your business? The three, four or five things that you must do exceedingly well in order to create highly satisfied, loyal and engaged customers. Figure out those key moments of truth and make sure that everybody in your company works tirelessly to deliver them perfectly all of the time. (This is one of the most powerful business success ideas I know – if you can determine what your key moments of truth are and deliver them flawlessly you will build a strong foundation for a highly successful and profitable company. Make sure you work on this).

9. Position yourself as an expert, trusted advisor, partner and peer to your customers by continuously delivering them REAL value. If you are in a B2B Sales, add real value and assistance to your customers by helping to make them look really good and delivering massive value to their customers. The key idea here is the only person that can decide what is valuable… is the customer. It does not matter what you think is cool, exciting, fun, unique or valuable – it only matters what the customer thinks. So invest the time and energy necessary to get as close to your customers you possibly can and thoroughly understand exactly why they think that what you offer is special, unique, differentiated and valuable to them.

10. Be sure that every single time you do a superior job – and your customers tell you that you are fantastic – follow up instantly with a request for referrals. If they say “You’re awesome, thank you, thank you, thank you”… tell them that the very best way they can thank you is to tell 10 other people about how fantastic you are and recommend that they do business with you. Positive word-of-mouth referrals, are the single most valuable advertising/marketing vehicle there is on the face of the earth. A significant amount of new research indicates that 43% to 78% (that is basically half to three-quarters) of all purchasing decisions today are made by referral – word-of-mouth, social media, texting, email – people ask their friends and colleagues who they should do business with and basically “crowd source” even major purchasing decisions. You can pay hundreds of thousands of dollars to buy ads in every magazine in the world – but a handful of strong personal referrals from key opinion leaders will drive much more business than those as ever could. (By the way you still need to market and advertise – but word-of-mouth referrals, especially through social media, is incredibly powerful and will only get more so).

11. Keep close to your best customers. Check in with them regularly – talk with them – ask questions and LISTEN. Learn everything you can about why your best customers are loyal, and make sure you give them what they want, while them, delight them and consistently exceed their expectations (just slightly – you do not want to erode your profit margin by delivering more value than the customer actually wants). Then gently began to ask these fanatical “customer evangelists” to help you spread the word about how great your business is. If they love you and the products and services you deliver, they will be happy to tell their friends, family and colleagues about how awesome your business is. Turning your best customers into your marketing department is an incredibly powerful strategy, because no matter how good your advertising and marketing is, people will immediately believe their friends recommendations far above even your very best ad. Happy customers who tell everyone they know about how great you are can completely change the future of your business. This is another area you should focus on intently.

**I think this is a good place to make important point: For most of you reading this article the future success of your business will depend very, very, very heavily on the quality of the people that you can get, grow and keep on your team. Great products with terrible customer service = bankruptcy. Hire the best talent you can, train them constantly, treat them fairly, pay them fairly (10% above or below what they would make to do the same job at another company) and empower them to go out and take care superb of your customers. Here is an extremely important point: The customer’s experience one never exceed the employee’s experience. 

“Hire top talent – create a winning culture that engages and empowers them – focus them intently on delivering superior customer service – then hold them accountable for executing on your moments of truth every single day for every single customer.”

12. Become a student of every other business you interact with. What are they doing well that you can adapt to your business? What are they doing poorly that you want to make sure you’re not doing to your customers? Every time you buy something, go out to dinner, order something online, interact with a vendor – it should be a lesson on things that you can steal and apply in your business – or things to avoid at all costs in your business.

13. Track everything I just told you about. Don’t go on instinct or gut feelings, collect data and facts on what is working and what is not – as measured by customer satisfaction scores, profitability and other key metrics. It does not matter what you “think” is working, it only matters if your target customers think is valuable and are willing to pay money for!

14. Once you figure out what works best for you – what truly leads to gaining real market share and significantly increasing profitability – focus like crazy on that area and get better and better at it every day.

15. Lastly, never stop doing everything on this list. Markets exchange, new competitors enter the market, customer’s requirements change – and you have to be able to change with them. Things move really, really fast so agility, adaptability, continuous improvement and ALWAYS listening to your customers is essential to the long-term success of your business. What makes customer’s super happy today, might very well make them very angry next month – so you have to stay on the very cutting edge by knowing more about your customers and your market than anyone else you compete against. Although extremely difficult to do – this is not optional!

I hope you found some of these ideas helpful and that you will share them with anyone you can think of in your network that you feel would find value in them too.

As always, I look forward to your feedback, ideas, comments and suggestions. Thanks so much — John

Do You Really Want To Be The Best In The World?

Business tips and helpDuring the past 20 years I have done hundreds of strategic planning retreats and often times when crafting a vision statement my clients will decide that they should set their BHAG (Big Hairy Audacious Goal) to become number one in the world in their field. This sounds really nice, and for a very few organizations it is attainable, but most organizations will never, ever be number one in the world at what they do. And to me, that is absolutely fine.

Yes, you just heard a guy who teaches excellence for living say that it is perfectly acceptable to be slightly above average. The hard truth is, it is insanely difficult to become the world leader at just about anything. It takes massive amounts of work, huge sacrifice, incredible focus and a truckload of grit and persistence. Just take a look at anyone who has achieved the top slot in the world at what they do and you will see someone who has dedicated their entire life to the attainment of true excellence in their field.

A great example that has been used a lot lately is the United States Navy SEALs. I have seen countless articles in recent months about SEAL discipline, SEAL leadership, SEAL dedication and all of the other factors it takes to be an elite Special Operations soldier. Here’s the deal, the reason they call these people “elite” is because very, very, very few people are willing to pay the price necessary to become a Navy SEAL… and the same goes for an organization that wants to become, as one of my clients said in their vision statement, “The intergalactic expert on_______.”

Now don’t get me wrong, I think excellence is, well, excellent. I think that every organization should strive to be the very best they can be. But I also think running an above average business, that is highly profitable, takes great care of their employees, delivers real value to their customers and contributes to their community – is just as excellent.

So don’t stress so much. You don’t have to be the biggest or best in the world, you just need to run a good, solid and sustainably successful business. That is a major accomplishment in and of itself, so be very proud of it.

What are your thoughts?

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Business Success Made Simple

8D9xPlllM2WzeTfM4McZ-Tl72eJkfbmt4t8yenImKBU8NzMXDbey6A_oozMjJETcFor nearly a decade I’ve been jumping up and down at almost every seminar I teach shouting, “Whoever owns the voice of the customer – owns the marketplace.” Yet I am still absolutely flabbergasted by how few companies truly do even an average job of listening to the people who pay all the bills – their customers. Because I’ve built my entire career around making complex things simple, here are four very simple questions to ask as many of your customers as possible:

 

  1. What are the top THREE reasons you do business with our company?

If you ask lots and lots of your customers this question, and a clear pattern emerges, they have just told you your value proposition and given you incredible insight into how to build your brand. I will quickly use myself as an example; I asked several dozen of my top clients around the world specifically why they hired me and the answer came back exceedingly clear,

 “John, we don’t know any other speaker who reads and studies as much as you do, you been reading more than 100 business books a year for 20 years, teaching for some of the top companies and business schools in the world and you are a top 100 business thought leader  – you are a complete freak for learning about business. You’ve also been the owner or CEO of 10 companies, and was the CEO of a Rockefeller foundation at the age of 26, so this is not just about theory – you actually know what it’s like when you’re having a hard time making payroll. Lastly, is easy to see that you are deeply interested in and knowledgeable about business, every time you present you are focused and passionate about what you’re teaching– and because of those three things we always get a high ROI when we engage you.”

So my brand isResearch + Real-Life + Passion = ROI

I challenge you to do the same thing with your customers, ask a large number of your best customers specifically why they chose to do business with you and they will give you information that will be invaluable in your marketing and branding going forward.

 

  1. What do we do that frustrates you? What would you like us to start doing, stop doing or do differently in order to make it easier to do business with us?

Again, if you ask a significant number of your top clients this question there will likely be a clear pattern and then it’s very simple: immediately change the stuff they want you to change if at all possible. Be warned, if you ask this question and do not heed their advice it would be worse than never asking the question at all, so you have to be prepared to make the changes they suggest.

 

  1. What would we need to do to earn more/all of your business?

When you get quality feedback on this question you have essentially been given your growth strategy directly from your customers. It has been my experience in working with dozens of clients on this exercise that your top customers will give you the same three or four answers, which should then be turned into key strategic objectives. I cannot possibly think of a better way to grow your business then ask the people who are already spending money with you specifically what you would need to do to get them to give you more money. Yes, it is just that simple.

 

  1. What would we do that would cause you to fire us immediately?

Typically you get several very clear and straightforward answers here around breach of confidentiality, unprofessional behavior, substandard work, missed deadlines, scope creep and things of that nature. Once you collect these answers make a list of the pattern and then make sure that everyone in your business understands that they must never do any of these things!

 

You can change the questions around a little in order to match your industry and your customers, but at the end of the day if you’ll just pick up the phone and call a handful of your best customers and ask them questions like the ones above, you will be overwhelmed by the quality and value of the answers you get and how significantly this information can impact your business. I know this suggestion is so obvious and simple as to almost be offensive, but I can also tell you that less than 10% of businesses ever do this exercise. So get on the phone or send out a survey and let me know how things turn out for you – I very much look forward to your feedback!

Five Fundamentals of Business Success

I just taught a series of business success seminars to about 300 entrepreneurs in Amsterdam and wanted to send a super special “Thank You” video to my hosts and the attendees on what I felt were a few of the MOST important things to focus on in order to run a highly successful organization. Once I finished the video I thought the information was so powerful that I decided to post it here on my blog for all of my followers to benefit from. I truly hope you find this video of great value and I challenge you to take at least one or two key ideas and begin implementing them right away.

I hope you will share this video with anyone you feel would find value in the ideas I shared — thanks, John


Free eBook Link for Building and Sustaining a Winning Culture by John Spence

The Most Important Thing In Business

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I was talking to a good friend of mine, Bob Fetterman, who is the manager of the performing arts center at our local college, when he turned me and said, “In one word, what is the most important thing in business?”

I thought about it for just a few seconds and then confidently answer, “Talent.” Bob looked back at me and said, “It’s the same in the theater.”

The truth of the matter is it’s the same in just about every organization. If you’ve done a truly good job of finding highly talented people you have built the foundation for a sustainably successful organization. Because no matter what’s wrong in your business; if you have great people they can figure out a way to fix it. On the other side of the coin, no matter what’s wrong in your business, if you have bad people they will make it worse.

In the class I teach on strategy at Wharton I tell my students that we are entering an era where there is very little opportunity to create sustainable competitive advantage. Your competitor can copy your products, they can put a location right across the street, they can spend ten times what you do on marketing, they can drop their price, they can offer free shipping, they can do lots of different things to try to win in the marketplace, but if you have superior talent, your people will figure out how to win against the competition. To me, two of the only sustainable competitive advantages left to most businesses are:

The quality of the people that you can get, grow and keep on your team

 

The relationships they create with your customers

 

Which means that talent acquisition, talent development and talent retention should be a major strategic imperative in your business. In addition, you will need to create a winning culture of highly engaged, satisfied and loyal employees who are fanatical about delivering only the highest quality products and services and having only superior customer relationships and will tolerate nothing less.

Years ago I had lunch with a gentleman who built his business from one acre on the edge of a dairy farm, to a multibillion-dollar enterprise and I asked him what he felt the most important thing in running a successful business, he didn’t hesitate, he looked at me and said, “John, you can kid yourself about a lot of things in business but at the end of the day it’s always people, people, people.”

 

If you have 5 seconds I would deeply appreciate your vote as a top small business influencer…


Free eBook Link for Building and Sustaining a Winning Culture by John Spence

How to Attract Top Talent to Your Company

 

It has long been one of my core themes:

The success of your business is directly tied to the quality of the talent you can get, grow and keep on your team.

Think about this carefully, it’s a simple but extremely important business idea. If you agree with me, then you should be approaching talent acquisition, talent developemtn and talent retention as a key strategic objective in your company. Here is a video that outlines the six most important things that top talent looks for in the company where they work. I hope you find this helpful and that you share with your network – thanks so much – John


Free eBook Link for Building and Sustaining a Winning Culture by John Spence

Some Ideas on Creativity and Failure

Last week I got an e-mail from one of my most treasured friends and professional colleagues, Hirofumi Leung – or as everybody calls him: Hiro.  I met Hiro years ago when he was just graduating college and told me he was about to start a sushi restaurant in the most expensive building in our town.  I was extremely skeptical that this “kid” would ever follow through on his wild scheme, but am happy to report that nearly 10 years later his restaurant: “Dragonfly Sushi & Sake Company” has won numerous awards and he has become one of the most respected restaurateurs in this area of Florida.  I have enjoyed a long relationship as a mentor and friend to Hiro and he often asks me for input, suggestions and ideas.  Here is the e-mail that I received from him asking for some help in preparing for an upcoming talk he had been asked to give on creativity in entrepreneurship... Continue reading “Some Ideas on Creativity and Failure” »