A Lesson On How To Kill Your Brand

Is Your Company Doing What It's Known For?

Not too long ago HP was branded as a technical innovation leader - not by itself, but by its customers.  Its tailored products were expertly aimed at a well-defined target market [not all things to all users]. Prior to 1990 I always marveled at the strong affinity that  customers had with the HP brand.  I learned this from my experience competing directly with HP while working for Texas Instruments and Tektronix.  HP customers were passionate about HP and willing to engage in verbal battles defending HP.  I remember how HP's RPN scientific calculator language created vociferous arguments between HP customers and TI's customers who preferred TI's AOS calculator language.  HP's engineering workstation was the market leader.  HP minicomputers owned the manufacturing automation marketplace. HP OpenView was the leader in IT systems management.

HP always competed on value, never on price.  It's prices were always higher, but perceived value was too. The new HP tries to blend the old HP with its acquisitions - Digital Equipment, Compaq, and others.  Now HP competes on price and tries to sell to everyone.  I don't think HP has that passionate brand appeal of days prior to the 90's.

I'm disappointed to be greeted with a commodityish home page when I visit www.hp.com.  I'm sure Mr. Hewlett and Mr. Packard would feel the same way I feel.

Focus On Most Valuable Customers In A Challenging Economy

Focus during this challenging economy by asking "What's A Most Valuable Customer Worth"?

MVCs, the core of your business, have a high lifetime value and unrealized potential. MVC traits:

1. They award you most of their business through repeat high margin sales
2. They buy during economic downturns
3. They are easy to do business with and readily self serve themselves
4. Because you are well positioned within their organization, they tell you what you need to do to win - no guesswork.
5. They provide collaborative assistance in designing new products and services 
6. Being in your customer portfolio enhances your stature because of their reputation
7. They refer you to new potential MVCs

Do you know who are your MVCs? Do you have enough of them?

Do you know who are your Most Growable Customers (MGCs) who can be developed into MVCs?

I believe that you should strive for MVCs + MGCs to comprise 80% of your customer base.

I also believe that your field sales reps should be managing only MVPs and MGCs. If they're investing time with second tier customers (STCs) or below zero customers (BZs), you have too many sales reps. Instead, your inside and online sales processes should manage STCs and your marketing process should nurture leads to sales ready status.