Earlier this year I interviewed Rashid Kotwal from Revealed Resources. His speciality is creating strategies to attract, convert and retain high value clients; that top 4% which give you 64% for your business.
Recently Rashid wrote a very useful article on “two major mistakes” that may be costing you business. I thought you might find them valuable. I did.
Take it away Rashid.
Would you keep using a leaky bucket? Of course not. You'd either fix it or buy a new one.
The equivalent in businesses is throwing more money at lead generation and not converting prospects into clients.
The two errors are:
• Not thinking from your customer's viewpoint, and
• Not articulating your value in terms that are meaningful to them.
Human behaviour has not changed in millennia.
Some of the best marketing advice was written 100 years ago.
Obvious Adams was first published in the Saturday Evening Post in April 1916. Written by Robert R. Updegraff, it's the story of an Advertising Man who became a legend by, you guessed it… coming up with "obvious" solutions. Here's one.
Think from your customer's point of view.
What is it they want? What will make them choose you over your competition? Explain things from their point of view, not yours.
A classic mistake we see day in and day out, is glossing over how you produce your results. You have a lot of expertise, but as a prospect I'd never know it because you never tell me.
The only way to differentiate yourself is to explain the value you provide. Explain in great detail how you get your results and what they mean in real terms for your clients.
Don't assume your customers know all this. They don't. What's obvious to you because you do it day in and day out is not obvious to them. And yes, it is about blowing your own trumpet.
Milwaukee based Schlitz became one of world's largest brewers for decades due to explaining the process by which they made beer.
Frankly, the fundamentals of brewing are the same for every manufacturer. However, Schlitz told their patrons…
"We Double the Cost of Our Brewing to Give You Pure Beer. We spend a fortune on cleanliness. We wash every bottle 4 times, clean every tub, boiling vat, pipe and pump every time we use it…"
The ad goes on explaining how the beer is filtered, fermented, bottled and inspected. And that you don't pay any extra for all this attention to detail.
Quality is not an abstract concept. Schlitz took great pains to explain what quality meant in terms their drinkers would find important and relate to.
Schlitz was smart enough to understand who they were advertising to. Many organisations would have thought, "Well this is obvious – every brewer does this".
And many of their competitors may well have laughed at their ads.
But at the same time none of their competitors followed their lead. And even if they had done, Schlitz was first – which is an unbeatable advantage.
This principle applies to any industry.
Here's an example from a client in the construction industry. They have two types of prospects. Architects who recommend them and end clients who commission the projects.
When we started together they believed price was a big factor in winning or losing a job. We set out to prove otherwise.
People buy based on perceived value. Will I get value for the money I spend? The best way of figuring out what value you provide is to ask your clients.
By extensively interviewing their clients we found their buying criteria hinged on three things.
Everything else was superfluous.
No one bought on price alone and most avoided lowest price vendors knowing they'd get stung later on.
Armed with this knowledge straight from the horse's mouth, we created marketing material that explained exactly how the organisation ensured each of those criteria were met in nitty gritty detail. We used examples of past projects in the same vein to illustrate the point.
But it doesn't stop there. Knowing what your clients are looking for means you can quickly and effectively close more business (sell) by tailoring solutions to their exact requirements.
However, many businesses operate on two assumptions that are often never tested and end up costing them dearly.
The first is assuming their clients know and fully understand the value they get for their money. The second is assuming what they themselves believe is valuable to their clients is actually the case.
Having worked with businesses in 40+ industries ranging from single person operations to multi-nationals, I can tell you many are completely wrong on both counts.
What you think you're doing for your clients and what they truly value can be poles apart. And if that's the case you spend more and more effort and money promoting aspects which don't advance sales, rather than spending your effort in areas which will.
Maybe that's the case in your business?
There's only one way to find out for sure. Ask your clients. Or better yet, get us to do it for you. As expert, completely independent interviewers your clients will tell us the truth and give you insights as to where you can improve and sell more.
Using our fresh eyes on your business will also help you find "obvious" business improvement solutions you may have missed because you're too close and mired in the day to day activities.
Interested? Call us on 0414-913-334 for more information, or go to www.revealedresources.com.
There are a number of useful takeaways here for you:
My earlier interviews with Rashid may be found here:
When clients approach me for coaching, so often, they are not getting the clients they need, the right clients. Eight times out of ten this comes down to not knowing what is working, and what is not working, and why it is not working.
For more than 28 years I’ve been helping small business owners plug the profit leaks in their business and restoring their cash flows by assisting them understand where there profits really come from, where they’re leaving money on the table, and where their sales are costing them profits.
If you would like to discuss with me how you might do that, book a Strategy Consult here.
© Copyright 2017 Adam Gordon, The Profits Leak Detective
Some profit losses are pretty obvious - so you fix them.
BUT, what if you don't know profits are leaking, cash out the door?
Possible leaks could be anywhere.
Are there some clues or symptoms that are tell-tales?