Zappos, for those of you who haven’t heard of it (I hadn’t), is an online retailer with a reputation for world class customer service. It started out selling only shoes but has since branched into lots of other stuff as well. It went from a startup to $1 billion in sales within 10 years. Anyway,
Culture, smulture . . . who needs it?
Brand and culture. Two sides of the same coin. Your brand is the outside world’s perception of who you are. The only question is, is that perception the one you have intentionally put in place and nurtured, or is it the one your market has bestowed on you by default. Likewise, your culture is how
Time to audit your products/services?
Last time, we talked about the importance of knowing profitability by customer, but what about the products and/or services you sell? Do you know which lines of business are the most profitable and which are the least? You may think you know where your profits are coming from, but do you really? Are you sure?
Time to audit your customers?
Do you know which of your customers are profitable for you and which are not? Yeah, if you look for them, you’ll probably find a few (hopefully only a few) that really aren’t contributing anything to your bottom line. So how do you identify them? And once you identify them, what can you do about
“Increased productivity comes from continually identifying areas where you can achieve 80 percent of your results from 20 percent of your efforts.”
Vilfredo Pareto was an early twentieth century Italian economist who gave us the 80/20 rule. We hear it most commonly used in reference to sales . . . 80 percent of your business comes from 20 percent of your customers. But the mistake we often make is to spend too much time trying to get
“No one likes to be sold; everyone likes to buy.”
Professional sales people get a bad rap. Sales is an honorable profession, but it has been sullied by poor practitioners of the craft . . . sales people who are determined to make the sale regardless of the needs and wants of the customer. We’ve all run into pushy sales people who are clearly more
“The purpose of your organization is to meet customer needs. That’s the game. Profits are the score.”
That’s obvious, isn’t it? Well, it should be, but we often behave as though our customers must meet our needs. Think about it. Do you impose deadlines on your customers to make life easier for you? Are your pricing schemes aimed at getting customers to buy the way you want them to buy rather than
“If you listen closely enough, your customers will explain your business to you.”
Your customers don’t have to do business with you. They have many suppliers from which to choose, but they have chosen you. Why? What is it about the product or service you offer that brings you customers and keeps them? You think you know why your customers have chosen to do business with you, but
