Archive for January, 2011

It’s all about them…

After the purpose of the business has been established there will be a common theme: clients. Learning how to run a business that focuses on a client’s (or prospective clients’) needs and expectations is a key component of success.

This is especially true in the service industry. Don’t get me wrong, retailers and product peddlers need to  be designing and offering wares that are desirable to their target market – but truthfully, if a consumer runs out of toilet paper it isn’t the client care that gets them rushing back to the grocery store.
When they need more toilet paper, they need more toilet paper.

On the service side, though, it is the quality of the client care that most often creates customer loyalty and a positive brand image. In the service industry, the business owner can’t wait for the client to pursue more service – running a business that way unnecessarily increases the risk that the client will look elsewhere for the attention they deserve.

Understanding the need to commit to providing a quality client care experience isn’t usually the problem – instead the challenge seems to be implementing a consistent communication plan that focuses on the client’s needs while keeping your services top of mind.

Some tips for creating a realistic communication plan:

Segment your Business

Not all clients need to receive the same level of customer care. We all know who are best clients are – where there is the most potential for repeat business, who sends the most referrals, who we enjoy working with. These “A” clients need the most attention – and understanding your book of business is vital to the growth of your business.

Set a Realistic Schedule

The best strategy is to always deliver what you’ve promised. Over-committing and then under-delivering sets the wrong tone for any enterprise. Therefore, mapping out a schedule that is realistic – determining how much contact, and what type of contact, is needed with each client segment – sets the framework for success.

Assign Responsibilities

You don’t have to do everything! Use your team, use template/customizable marketing resources available, use technology. Take the pressure off of yourself and share the load with your staff (if you have one), strategic partners, or invest a little at a marketing resource firm who can provide you with some ghost-written materials that add value to your client relationships.

Keep Track

Plug your plan into your calendar – or go one step further and purchase some client management software that will remind you of who you need to call, or email, or visit. This way keeping in contact with your clients becomes part of your routine – not an added pressure.

 Finally, never risk annoying your clients. Make sure that whatever you are contacting them about adds value and speaks to their needs. The content of the contact, as well as the frequency and method used should be pleasing to your client and enhance your relationship.

Remember – it’s all about them.

2011
01/31
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Buying into Business Purpose

I read a fascinating article in the Harvard Business Review – and it emphasizes the vital importance of understanding the purpose of your business.

John Mackey, cofounder and co-CEO of Whole Foods (a high-end organic grocery store), sat down with the Harvard Business Review to speak about the necessity of setting a business apart by defining its unique value. The article is called “What is it that only I can do?” and its worth a read – despite its 7 pages.

In a nutshell, Mackey has 3 key points concerning Business Purpose that are worth considering.

1. Determining the purpose of your business is vital to its success.

When Mackey was asked: “If you’re talking to somebody who is starting a company or trying to grow one, do you have any pearls of wisdom?” his answer? Determine the purpose of your business. He specifically mentions that the purpose shouldn’t be “trying to maximize profits as a very good long-term strategy for a business. It doesn’t inspire the people who work for you. It doesn’t lead to that higher creativity.”

2. A business purpose needs to evolve.

To quote Mackey :”The interesting thing about our purpose is that it has continued to evolve. As a company grows, its purpose grows with it.”

Mackey uses an example from Whole Foods where they took their purpose – of being good citizens in the communities where they do business – and letting it evolve to also being good citizens in the developing nations they trade with. The willingness to expand their business purpose resulted in the creation of a foundation that now does microlending to small businesses in 23 countries.

Finally…

3. A business purpose doesn’t need to last forever.

I found this statement to be freeing. Isn’t it wonderful to think that it isn’t necessary to draft a business purpose in stone? Sometimes, for me at least, there is too much pressure in trying to articulate all of my ideas in one statement. Mackey not only agrees, but asserts that the willingness of Whole Foods’ executives to allow their business purpose to develop and evolve overtime has been a key factor to their success.

Knowing why your business exists will bleed into every area of your enterprise. A clear sense of purpose will most certainly affect the tone of your marketing and communication, but it will also factor into your financial planning, your human resource policies, and your daily processes. Perhaps most importantly it will govern your client experience at all points in the sales cycle – and properly executed can measurably contribute to referral and recurrent business.

It seems to be working for Whole Foods…

2011
01/18
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For Entrepreneurs
Planning
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Mission Statement or Business Purpose?

Business Purpose or Mission Statement - which do you build first?

Until relatively recently it was considered to be a best practice to begin any good marketing plan with the creation of a well-drafted mission statement. The mission statement would succinctly state these three basic components:

  1. The definition of the business.
    Essentially, “definition of the business” articulates the benefit of the organization to the consumer. It describes the need that your business meets.
  2. What sets the business apart.
    Often referred to as a business’ “unique value” this part of the mission statement expands into not only what the business does, but how they do it better than the competition and how it will ultimately impact the life of the client/consumer.
  3. Where the business is going.
    The word “mission” itself has a certain aspirational quality to it. This is the part of statement that speaks about where the business wants to be (leading in sales, increasing awareness of unique services, etc.) in a defined period of time.  This part of the statement should be quantifiable (ie. In 5 years, or increase sales by 20%, etc.)

As I mentioned, though, recently the trend seems to be leaning towards a preference to begin planning by drafting a “Business Purpose”.

The Business Purpose is being touted as the foundation from which the mission and/or vision statement is built because it not only defines the business and its unique offering, but it also takes into consideration the core beliefs and values that the business wants to commit to over the long haul. One could argue that while the mission and vision needs more frequent revisions, the Business Purpose – when written effectively and thoughtfully – can last indefinitely.

This is a trend I can get on board with.

Maybe my willingness stems from an inherent cynicism towards mission statements. In my experience these heavily-deliberated-upon statements seldom drive any of the decision making or strategizing within an organization. In contrast, taking the time to sit down – either alone or with key employees/partners – and articulate the values and purpose of an organization to make them the key drivers in decision making seems to be an essential part of the planning process.

And with the Business Purpose as a starting point, perhaps the mission statement would be a little more useful.

So – which comes first? The Business Purpose or the Mission Statement? Before you decide, we should figure out the specific components of a Business Purpose…stay tuned!

2011
01/05
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Planning
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