Identifying Growth Strategy by Understanding Your Number One Priority
Written by admin on April 19, 2017
Most business owners look at their business as a lecture and not a conversation. In other words, most business owners operate as if they are at a radio station spinning records with no way to tell what the customer wants to hear. Business owners need to learn how to connect with their client and learn about where they are, where they have been and most importantly, where are they going. Business needs to be a series of interactions to assess the perceived value of your product and the effectiveness of your strategy.
When was the last time you pulled up your client database and reached out to your client? No, scratch that, not just your client, your ideal client. When was the last time you got to know them and really tried to understand what it is that you do for them? Most business owners are more focused on what they think they do for their customers and never really look to see what their impact really is.You have to identify one of the key tools for identifying impact, communication with your customer or client.
Nathan Furr and Paul Ahlstrom said it best in their book, Nail It, Then Scale It. “Which would you rather do — talk to customers now and find out you were wrong or talk to customers a year and thousands of dollars down the road and still find out you were wrong?” Most business owners don’t do their homework. Their homework gets done for them and pushed down the road. In the end, the results are the results. You either operate in concert with your clients’ needs and wants, or you pay the price and learn about it later.
Time to Work It
Let’s look at another industry so that we can see the issue from another angle. 95% of all gyms in the US fail. Why? Research suggests that obesity is out of control. Exercise is the number 1 combatant to obesity followed up closely by proper nutrition. If that is the case, then why aren’t gym memberships through the roof? If there is a solution to a problem that is an epidemic, why don’t we have it licked? Because, most gym owners are in the wrong business. They think they are in the business of exercise and the truth is, that only serves a small population and market segment. Look at the success of Planet Fitness. They chose to focus on those individuals who have many times felt left out. Most people don’t enjoy exercise any more than they like to go to the dentist and get their teeth cleaned. In other words, there is no perceived value from their client.
I worked with a business owner who was successful in creating one of the largest and most successful gyms in his state. I asked him how he did it. He said that his data of his ideal client showed that they were ready to move onto another program or method of exercise about every 18 months. When they reached this time frame, he had to have something new, challenging and unique for them to move into or he risked losing them to another program. So he developed his entire business around the client and their needs. He grew with his clients and in a way that allowed him to be focused around their needs. Growth for the sake of growth is a bad idea.
How long does your client stay with you on average? Why do they leave? What are they looking for when they move on? Gartner Group research suggests that Companies that prioritize the customer experience generate 60% higher profits than their competitors. Go figure, a customer who believes that you take them….the customer…as their highest priority is much more likely to spend money. What an interesting concept. With 281 million pages featuring “customer service” ranking on Google, you would think we would see this as obvious.