High growth companies actively pursue “customer lock in” strategies

21/04/2015

Ambitious high growth entrepreneurs should spend at least 3 days of their official working week living in the customer’s world. Viewing the market place from the desk is extremely dangerous, being immersed within your industry and the needs of your customers provides real-time market intelligence. This helps to tailor propositions specifically to the wants and needs of your market place; it also supports new product and service development. Gazelle companies create a massive gap between them and their competitors because they deploy innovation and imagination to problems, this inspires and very often leads to development and evolution of propositions that the customer didn’t even know they wanted! They occupy uncontested space. Others will soon start to copy and replicate – your job is to stay one step ahead of the game.

High growth businesses we have studied stay close to their key stakeholders. More specifically, they spend time:

  • Looking at the factors that impact their customer’s performance – this provides opportunities to provide new solutions
  • Understanding their customers strategy – this facilitates a partnership working model
  • Looking at how they can help improve efficiencies, reduce costs and enhance performance.

Getting close to the market helps to drive what I term “customer lock in” – that phase of the supplier/customer relationship were there is a true partnership, mutual respect and a genuine win-win. Moving to lock in can absorb an enormous amount of time effort and energy, however the rewards can be big. It also makes it very difficult for competitors to move in and occupy your space. Being embedded means any new entrant would have to untangle lots of relationships, systems and processes to get a foothold.

A word of caution – never take relationships for granted and be aware of performance vs. KPIs. Customer complacency represents a real danger zone for businesses. Lock in delivers true competitive advantage.

 


Lock in with your customers

09/09/2014

Ambitious high growth entrepreneurs should spend at least 3 days of their official working week living in the customer’s world. Viewing the market place from the desk is extremely dangerous, being immersed within your industry and the needs of your customers provides real-time market intelligence. This helps to tailor propositions specifically to the wants and needs of your market place; it also supports new product and service development. Gazelle companies create a massive gap between them and their competitors because they deploy innovation and imagination to problems, this inspires and very often leads to development and evolution of propositions that the customer didn’t even know they wanted! They occupy uncontested space. Others will soon start to copy and replicate – your job is to stay one step ahead of the game.

High growth businesses we have studied stay close to their key stakeholders. More specifically, they spend time:

  • Looking at the factors that impact their customer’s performance – this provides opportunities to provide new solutions
  • Understanding their customers strategy – this facilitates a partnership working model
  • Looking at how they can help improve efficiencies, reduce costs and enhance performance.

Getting close to the market helps to drive what I term “customer lock in” – that phase of the supplier/customer relationship where there is a true partnership, mutual respect and a genuine win-win. Moving to lock in can absorb an enormous amount of time, mini-padlock-912519-meffort and energy, however the rewards can be big. It also makes it very difficult for competitors to move in and occupy your space. Being embedded means any new entrant would have to untangle lots of relationships, systems and processes to get a foothold. A word of caution – never take relationships for granted and be aware of performance vs. KPIs. Customer complacency represents a real danger zone for businesses. Lock in delivers true competitive advantage.


High Growth Entrepreneurs – Have you got an innovation department?

22/11/2011

Business incubators have become a common feature of public sector enterprise support in recent years; many of these establishments have proved to be highly effective in nurturing early stage entrepreneurs. They don’t just provide a desk and somewhere to turn up every morning, their added value comprises: a place to network, share ideas and collaborate. The really good ones offer mentoring and coaching, this is often what makes the real difference between success and me too performance. In many UK regions incubators have become a hot bed of exciting new businesses, the potential employers of graduate talent – Autonomy in Cambridge is a fantastic example.

This concept of incubation needs to feature prominently in the culture and mindset of winning businesses – any ambitious entrepreneurial company should have a “department” or function responsible for building a pipeline of new thinking that delivers potential new revenue streams or adds value to existing customer experiences. I don’t mean a department literally – it’s about having an organisational process that brings together thinkers, doers, sellers and controllers, one that not only develops new ideas but also implements the commercially viable nuggets which emerge from the process of discovery. The concept of incubation delivers a major thrust for gaining an edge in the market place.

It is my opinion that creative intelligence is the ultimate source of competitive advantage – high growth companies tend to be disproportionately more innovative than the rest of the SME population. They explore, embrace diversity, live in their customer’s world, experiment with new possibilities and avoid complacency by making creative thought a habit, not something they do once a fortnight on a Friday afternoon. It must form part of an organisations “soul”. My next few blogs will explore some simple yet highly effective ideas for embedding a culture of incubation.


High growth companies actively pursue “customer lock” in strategies

27/09/2011

Ambitious high growth entrepreneurs should spend at least 3 days of their official working week living in the customer’s world. Viewing the market place from the desk is extremely dangerous, being immersed within your industry and the needs of your customers provides real-time market intelligence. This helps to tailor propositions specifically to the wants and needs of your market place; it also supports new product and service development. Gazelles companies create a massive gap between them and their competitors because they deploy innovation and imagination to problems, this inspires and very often leads to development and evolution of propositions that the customer didn’t even know they wanted! They occupy uncontested space. Others will soon start to copy and replicate – your job is to stay one step ahead of the game.

High growth businesses we have studied stay close to their key stakeholders. More specifically, they spend time

  • Looking at the factors that impact their customer’s performance – this provides opportunities to provide new solutions
  • Understanding their customers strategy – this facilitates a partnership working model
  • Looking at how they can help improve efficiencies, reduce costs and enhance performance.

Getting close to the market helps to drive what I term “customer lock in” – that phase of the supplier/customer relationship were there is a true partnership, mutual respect and a genuine win-win. Moving to lock in can absorb an enormous amount of time effort and energy, however the rewards can be big. It also makes it very difficult for competitors to move in and occupy your space. Being embedded means any new entrant would have to untangle lots of relationships, systems and processes to get a foothold. A word of caution – never take relationships for granted and be aware of performance vs. KPIs. Customer complacency represents a real danger zone for businesses. Lock in delivers true competitive advantage.


High Growth Companies – “Sell the Love”

15/07/2011

Yesterday morning I spoke to a fantastic group of ambitious high growth SMEs. The theme was how do growth businesses embrace a winning approach to selling. My aim was to dispel some of the myths that go with this notoriously challenging dimension of business growth. Other key messages included, superior and sustained sales growth is achieved when there is clarity in the business model, strong team ethos, robust processes and systems linked to clearly differentiated propositions.

We also discussed what makes great selling at the coal face. When you love, believe in and are passionate about what you are offering it creates an energy and customers will very often tune into messages at an emotional level. If you don’t love what you are offering don’t expect the customer to.  Only last week my philosophy of selling from within was summed up wonderfully by a delegate at another event, she said “my best sales performances are when I get the opportunity to just talk about what we do and how we add value”. The era of the hard sell is over, the order of the day is building customer relationships through partnerships and collaboration. It is vital to embrace this mindset when you turn up to your customers. Dont let them think you are only there to flog them something.


The Power of the Brand

05/05/2011

I was sat in Costa Coffee on Oxford Road in Manchester this morning and it created an extremely thought-provoking experience. Having been in a meeting nearby, myself and colleague Heather, decided to go and have a brew to catch up on a few things that needed to be sorted for next week……..

Within the space of 5 minutes a queue of 30 people deep developed, an orderly line leading out on the street. With only two people serving – who I must admit were doing a fantastic job – an amazing buzz was maintained in the cafe, no one moaning or grumbling.  Many of these customers had been waiting for over 15 minutes for a take away coffee without complaint. Under normal circumstances most people would have walked out but they just waited with amazing patience.

Popular brands can withstand challenges because they act as a magnet to others and create a customer experience that breeds loyal followers. There was a spirit about the place that combined – great location, sound employees, quality product and a physical environment that pulled people through the door. At the end of the day those waiting could have gone 100 yards up the road and purchased their breakfast without the painful wait – but the power of the brand and the experience acted as a form of gravitational pull to Costa fans. I got the feeling that there was no other place to go when the reality was other options did exist.

A great customer experience is enhanced by a fantastic brand, a lesson for all growth wish entrepreneurs who want themselves and their business to stand out from the ground.