Things have changed.
There I said…things have changed in business and we may never see them the way they used to be. I know many a sales person, and business owner, who yearn (quite vocally) for the good old days of a few years back. Times when they had more business than they could handle and customers paid prices without a question.
A time when customers found you…you didn’t need to find them. The business flowed through their doors and cash registers with ease. We could afford to let a few small things, like service (note hint of sarcasm) slip through the cracks because….well, there was enough new business to not care.
Yes folks…times have changed.
Building your business in this new economy is about both a return to solid foundational business values and new ideas. A re-connection with your customer and commitment to providing more value than they are paying for. It’s an opportunity for you as a business owner to re-build quality so that once again customers will praise your product and service evangelically and you may reap the benefits of the highest form of marketing. Word of Mouth referrals.
How do you do that? By paying attention to what you have.
The idea of 1000 true fans
The theory of 1000 true fans is rooted in the music industry and essentially states that any band can be supported financially on 1000 true fans. These are the fans that will buy every product a band offered, attend as many shows as humanly possible, tell everyone they know about he band and ultimately be there in defense of every decision the band makes creatively.
What if your business had 1000 true fans? Customers who believed in your values and product so wholeheartedly that they would always support you. It takes a lot of work and time to build those fans, but once they are nurtured…they never leave.
What makes a true fan? Recognition and reward. You need to know who these people are and design marketing programs that reach out and engage them. You may only have one in the beginning, but if you engage that one, they will tell others. If you take it a step further and identify the customers who could be True Fans, then you are pro-actively working to build your business. Which leads into the next portion…
Segmenting your database
Not all customers are created equals. They all have varying levels of needs, wants and desires. If you try to hard to converting everyone at the same time, you may find yourself waste time, money and other resources. Instead develop standards that hep you to create layers in your database. Each layer should be focused on a certain level of product use. Your goal becomes converting existing customers up through your layers with an ultimate goal of making them a true fan.
Each layer of customers should also have it’s own marketing strategies that gently educate them and steer them toward the next level of engagement. You have to take the time to think through this process of education and transition. You have to ensure that you are able to clearly recognize when a customer has moved form one layer to the next and then reward them for doing so….consistently.
In this process you’ll likely find you’ll need new technologies or processes which means you’ll have to change and try something new.
Managing risk and trying new things
A major component of a successful business in the new economy is going to be the combination of new technology with old strategies. Using Twitter to enhance customer service, using Evernote to capture and execute ideas, using Groupons to offer discounts and FourSquare to promote your location. Those are just a few examples of the new tech that may have an impact.
Adopting them is risky. You have to learn something new and potentially lose an old strategy….and there is no guarantee it will work. You have to believe again and get excited about growth and challenge. You need to re-learn how to weigh out risk and reward so that you can effectively move forward. I’d say that this section is especially important because it is about character…not a simple how to strategy. The ability to risk is a character trait, that not everyone has. Do you?
So the question becomes…are you ready for change?