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.

Business Owners Fit the 80/20 Rule

Pareto's Rule 

Applies To Business Owners

 

 

 20% Have These Characteristics

• Their communication style establishes trust, honesty and dependability
• They follow through on their commitments
• They're not distracted because they behave like CEOs rather than employees
• They don't flinch when an unexpected situation occurs
  
• They have courage to take advantage of defining moments
  
• Positive change trumps the status quo
• They look for opportunities to expand comfort zones - personal and company 
• They build an action culture of great execution
• They build processes that encourage the right actions

Earn The Right To Charge The Price You Want

Premium Prices Are Not An Entitlement

If the best-in-class company in your category charges a prestige or premium price, this doesn't entitle you to position your price near the rim of their price umbrella unless you can match their brand reputation for an excellent customer experience - before, during and after the sale - including the value derived from their products and services.

If you don't exceed the NetPromoter Score acid test of being told that you consistently deliver total satisfaction and can prove it by the frequency referrals you receive, your price is probably too high.

Easiest Time To Improve Is When Things Are Going Well

Don't Miss the Opportunity To Raise the Bar During Good Times

Have you noticed when things aren't going so well your peripheral vision shrinks and you don't pay attention to opportunities for improvement?

With this in mind, shouldn't we make every effort to improve when things are going well?  More discretionary funds become available. Higher confidence levels are evident throughout the organization. There tends to be less risk avoidance and more willingness to expand comfort zones. Positive attitudes begin to take over.

Continue to raise the bar and elevate to the next level of something, whether it be customer experience, profitability, marketing process, team participation levels, efficiency ...

The Top 20% Are looking to Raise The Bar At All Times

Even when their economy isn't doing well

What Is The Role Of Sales Commissions In Your Company?

If I Were a Customer and You Were a Sales Rep

Here's How I'd Like You to be Paid

How do you feel when the person with whom you are dealing will earn a commission or win a trip when you buy from them?

• Does anyone other than the sales rep win?  Do you win? Does their company win?
  
• Do they understand your needs and interests?
• Will they traverse your buying cycle so that you can do things at your pace?
• Will they be concerned about your experience after the sale?
• How do you know what's behind their recommendation?  Is it truly your best interests, or an internal SPIF, or selling what's in stock, or inventory liquidation, etc.?  Do they need this sale in order to make quota?

I'd prefer to know that the sales rep is being compensated based on my level of satisfaction.  Companies need to take a fresh look at their sales compensation schemes.  They need to be designed so that when their company wins, the sales rep becomes eligible to win.

Cheap Doesn't Mean Low Price

Use Your Words Wisely

Cheap Doesn't Mean Low Price

It's like finger nails scraping a blackboard when I hear someone say that their product is cheaper, or that they are looking to buy something that is cheaper.

Do they really mean that?  Cheap translates to "poor quality", not better value.

If a quality product happens to be available at a lower price, wouldn't it be better to say that it's less expensive or more economical?

With this as the backdrop, can someone tell me what they'd rather buy or sell that is "cheaper" than the alternative?

"Like" Doesn't Really Mean "Like" on Facebook

Awareness expands when you click Like on a Facebook page.  Your community automatically sees everything you Like.

But, does Like lose its meaning when a company says "Like and be eligible to win something"?  [I guess you can't blame people who Like your offer if they stand to get something in return.]

As a marketer, I refrain from baiting people to Like my article, or product or website, etc.  Otherwise, how would I know how many people really Like my product or service or article, etc.?