How to…1. Pick more profitable customers, 2. Grow your biz…and,3. Have a life!

                                              

Presented by Donald Cooper,Presented by Donald Cooper, MBAMBA

Sault Ste. Marie Innovation CentreSault Ste. Marie Innovation Centre June 18June 18thth, 2008, 2008

3 key secrets of market intelligence… 3 key secrets of market intelligence…

Secret #1: The 1st customer you serve

is you! Who are you now… and who do you commit to become?

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There’s no such thing as “Business Goals” …only the personal goals of the people who control the business.

There’s no such thing as “Business Goals” …only the personal goals of the people who control the business.

1.1. How How big big do I want to be...or do I want to be...or mustmust I be? I be?

2.2. How How goodgood do I want to be…or do I want to be…or mustmust I be? I be?

3.3. Am I a Am I a high end high end or or mass market mass market person?person?

4.4. Love Love travelingtraveling…or sleep in my own bed? …or sleep in my own bed?

5.5. How much How much $$ do I need or want to make?do I need or want to make?

6.6. How big a How big a differencedifference do I want to make? do I want to make?

Reality checkReality check: : In case you hadn’t noticed, In case you hadn’t noticed, running a business today is challenging!running a business today is challenging!

1.1. More demanding customers.More demanding customers.

2.2. More & stronger competition.More & stronger competition.

3.3. Shrinking margins.Shrinking margins.

4.4. Increased complexity.Increased complexity.

5.5. More difficult to find and keep More difficult to find and keep great staff! great staff!

But hey, every business is tough!But hey, every business is tough!

#1 - RO#1 - ROII of 15% to 20%. of 15% to 20%.

#2 - RO#2 - ROII of 10% to 12%. of 10% to 12%.

#3 - breaks even.#3 - breaks even.

#4 #4 andand #5 - will lose money! #5 - will lose money!

Profitability profile of a market with too Profitability profile of a market with too many competitors:many competitors:

Market can support 3 competitors…but there are 5

Lets face it…mediocrity is no longer an option!If you’re trying to succeed in business by being mediocre, once your customers have been to Disney World…you’re doomed!

Key questions to ask…Key questions to ask…

1.1. What, or who am I passionate about?What, or who am I passionate about?

2.2. What, or who am I an expert on?What, or who am I an expert on?

3.3. What are my values and standards?What are my values and standards?

4.4. How do I handle stress? Am I emotionally How do I handle stress? Am I emotionally resilient? resilient?

5.5. What are my business management strengths What are my business management strengths and weaknesses? Will I be able to proactively and weaknesses? Will I be able to proactively manage the business? manage the business?

What do you commit to become?What do you commit to become?Create a clear and measurable Create a clear and measurable statement of what you’re committed statement of what you’re committed to become to be a to become to be a profitable and profitable and responsible responsible market leader market leader in 3 to 5 years! in 3 to 5 years!

OUR VISION1. ____________________2. ____________________3. ____________________4. ____________________5. ____________________6. ____________________……donaldcooper.com Free Articles B9.donaldcooper.com Free Articles B9.

There are actually 2 kinds of “future”:There are actually 2 kinds of “future”:

??????

#1.#1. The future that will happen...The future that will happen... -- population & demographics, population & demographics,

-- changing tastes & priorities, changing tastes & priorities,

- - invention & discovery,invention & discovery,

-- political & economic changes,political & economic changes,

-- new emerging nations,new emerging nations,

-- war & terrorism.war & terrorism.

#2.#2. The future that you commit The future that you commit to proactively create.to proactively create.

Secret #2: Choosing your profitable

customer segment.

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Finding customers that you love this much!

Key questions to ask…Key questions to ask…

1.1. With whom do I have a special relationship, With whom do I have a special relationship, unique understanding or powerful connection?unique understanding or powerful connection?

2.2. Who’s serving them now and where are they Who’s serving them now and where are they falling short?falling short?

3.3. Is the market that I’m looking at over-served?Is the market that I’m looking at over-served?

4.4. What will I offer that will be extraordinary?What will I offer that will be extraordinary?

5.5. Will this be a financially & emotionally healthy Will this be a financially & emotionally healthy business to be in 7 to 10 years from now?business to be in 7 to 10 years from now?

Focusing on profitable customers: Focusing on profitable customers:

We call John Cooper…He’s our ‘quiet’ guy!!

You can’t be an expert on everyone and you can’t make everyone happy…that’s why God invented Niche Marketing!

You can’t be an expert on everyone and you can’t make everyone happy…that’s why God invented Niche Marketing!

Niche

marketing““I don’t know what the I don’t know what the key to success is… key to success is… but the key to failure is but the key to failure is trying to please everyone.”trying to please everyone.”

……Bill CosbyBill Cosby

Every Feb 14Every Feb 14thth they hold “the they hold “the worlds largest nude wedding”worlds largest nude wedding”

Dan the dangerous tree man:Dan the dangerous tree man:

DAN the dangerous tree man

Call (705) 689-2133

Expert tree removalExpert tree removal

Dan specializes in the difficult tree removal Dan specializes in the difficult tree removal work that others won’t even attempt.work that others won’t even attempt.

……and when you call and when you call Dan, it’s never about Dan, it’s never about price!price!

Niche marketing…

Sources of market intelligence info:Sources of market intelligence info:

1.1. Chamber of Commerce;Chamber of Commerce;

2.2. Industry suppliers.Industry suppliers.

3.3. Trade Associations.Trade Associations.

4.4. Hire students to do a market research.Hire students to do a market research.

5.5. The internet.The internet.

6.6. Yellow Pages.Yellow Pages.

7.7. Get out and do your own homework.Get out and do your own homework.

Secret #3: Create, deliver & communicate

compelling value.

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You must create USP’s

It’s not good enough to be “unique”… It’s not good enough to be “unique”… we must be we must be “COMPELLING”!“COMPELLING”!

CPD’s

Don’t fall into the “research trap”…Don’t fall into the “research trap”…When we do research, When we do research, we find out what people we find out what people expect…then, when we expect…then, when we deliver what they expect, deliver what they expect, we wonder they don’t gowe wonder they don’t go

Now, if you could just tell me what you’d like…

““WOW”!WOW”!

So, we do research, So, we do research, notnot to find out to find out what we should do…but to find out what we should do…but to find out that which we must that which we must exceed!exceed!

Most businesses make the mistake of Most businesses make the mistake of defining themselves by… defining themselves by…

1.1. The products or services The products or services they’ve always sold,they’ve always sold,

2.2. How and where they’ve How and where they’ve always done business.always done business.

……it’s all about them and it’s all about yesterday!it’s all about them and it’s all about yesterday!

Redefine your business by how you Redefine your business by how you HELPHELP::

I sell mortgages! OROR……

I help people to buy a home I help people to buy a home and to own that home, and to own that home, mortgage-free, mortgage-free, as quickly, as quickly, conveniently conveniently & inexpensively & inexpensively as possible. as possible.

Clarifying our “customer commitment”:

(whom(whom1) We’re in the business of helping _______________________________________________________.

…better than our competitors.

2) To ____________________________________________________________________________________________________________________________________.

(do what)(do what)

3) By ____________________________________________________________________________________________________________________________________.

(doing what specific things for them)(doing what specific things for them)

including “where”)including “where”)

Taking “understanding” to a whole new Taking “understanding” to a whole new level!level!When our target customers are buying or When our target customers are buying or using what we sell…using what we sell…

1.1. What are they trying to What are they trying to dodo??

2.2. What do they want (or need) to What do they want (or need) to knowknow??

3.3. How do they want to How do they want to feelfeel? ?

……Alive & Well examples.Alive & Well examples.

…Peregrine Lodge, Queen Charlotte Islands, B.C. … …Peregrine Guide, Stef Olcen, displays Peter Toigo Jr’s spectacular 72 lb. Chinook.

A “BIG IDEA”…•Defines your Value,

•“Grabs” your customers,

•Focuses your team.

We need to create compelling BIG IDEAS!

…Peregrine Lodge, Queen Charlotte Islands, B.C. … …Peregrine Guide, Stef Olcen, displays Peter Toigo Jr’s spectacular 72 lb. Chinook.

Your “BIG IDEA” must be… Your “BIG IDEA” must be…

1.1. CompellingCompelling……it “grabs” your target customers.it “grabs” your target customers.

2.2. UniqueUnique…if it’s everywhere it’s …if it’s everywhere it’s notnot a BIG IDEA. a BIG IDEA.

3.3. DeliverableDeliverable……promise & don’t deliver = bad idea.promise & don’t deliver = bad idea.

4.4. ProfitableProfitable…losing money is …losing money is notnot a BIG IDEA! a BIG IDEA!

5.5. SustainableSustainable…what’s its life expectancy?…what’s its life expectancy?

Businesses built around a “Big Idea”:Businesses built around a “Big Idea”:

1.1. LenscraftersLenscrafters

2.2. Dell ComputersDell Computers

3.3. M & M MeatsM & M Meats

4.4. ING DirectING Direct No branches, higher interest.No branches, higher interest.

““We sell direct to you!”We sell direct to you!”

““Hundreds of meal ideas …Hundreds of meal ideas …just one aisle!”just one aisle!”

““Eyeglasses in Eyeglasses in an hour!”an hour!”

Engine rebuilder rethinks what customers Engine rebuilder rethinks what customers really want and changes business model:really want and changes business model:

1.1. Average shop has an owner and 4 machinists. Average shop has an owner and 4 machinists. Pays staff $44,000 and himself $50,000.Pays staff $44,000 and himself $50,000.

2.2. One guy changed his business model… One guy changed his business model… • Enlarged his shop. Carries rebuilt inventory.Enlarged his shop. Carries rebuilt inventory. Rebuilds 4 or 5 at a time = economy of scale.Rebuilds 4 or 5 at a time = economy of scale.

• Delivers rebuilt engines and cylinder heads Delivers rebuilt engines and cylinder heads immediately.immediately. Garages turn jobs over quickly Garages turn jobs over quickly and customers get vehicle back in 3 days and customers get vehicle back in 3 days not 7- 8 days. not 7- 8 days. ……

3.3. He added mechanics to his staff and now He added mechanics to his staff and now does the entire engine replacement job in just does the entire engine replacement job in just two days…local garage makes $300 for two days…local garage makes $300 for making a phone call.making a phone call.

4.4. With 14 staff, he now has an asst. manager With 14 staff, he now has an asst. manager and can take vacations with family. and can take vacations with family.

5.5. He makes $140,000 and He makes $140,000 and has built a profitable has built a profitable and saleable biz.and saleable biz.

Engine rebuilder changes business model Engine rebuilder changes business model to thrive in shrinking market:to thrive in shrinking market:

We are what we communicate!

Everything we do communicates: Everything we do communicates:

What What compellingcompelling……1)1) Functional, Functional, 2)2) Emotional and, Emotional and,3)3) Financial Value Financial Value……are you delivering that’s worth bragging are you delivering that’s worth bragging about?about?

Advertising problem Advertising problem oror fundamental fundamental marketing problem? marketing problem? Advertising problem Advertising problem oror fundamental fundamental marketing problem? marketing problem?

“Advertising is creative bragging!”“Advertising is creative bragging!”

……the Average North American is exposed to 8000 ad messages per week.the Average North American is exposed to 8000 ad messages per week.

When you’re When you’re delivering delivering compelling compelling Value… Value…

compelling compelling communication communication is easy!is easy!

The power of having well understood target customers and a clear brand message & personality:

The power of proactive communication: The power of proactive communication: 1.1. Baskin Robbins ice cream cakes.Baskin Robbins ice cream cakes.

2.2. Pizzeria calls customers to ask for the order.Pizzeria calls customers to ask for the order.

3.3. Companies book my 1-day Mgt. Seminar for Companies book my 1-day Mgt. Seminar for their customers.their customers.

4.4. Liberty Mutual coaches clients on how to Liberty Mutual coaches clients on how to reduce workplace injuries and illness. reduce workplace injuries and illness.

5.5. Coppertone offers UV skin photo and Coppertone offers UV skin photo and personalized suncare profile.personalized suncare profile.

Knowing our customers as individuals:Knowing our customers as individuals: Name & address,Name & address,

Phone, fax, e-mail,Phone, fax, e-mail,

Purchase history,Purchase history,

Special needs & Special needs & preferences, preferences,

Lifestyle & interests,Lifestyle & interests,

Significant dates,Significant dates,

Preferred method of Preferred method of payment,payment,

Complaints & problems.Complaints & problems.

Finally…“Thank you” for joining me

today…and I look forward to chatting with many of you this afternoon.

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…and a promise of ongoing help.

Free “booster shots”Free “booster shots”!!

Monthly E-tips on how to…Monthly E-tips on how to…ID

EASIDEAS

A promise of on-going help!A promise of on-going help!A promise of on-going help!A promise of on-going help!

• sell more,sell more,

• manage smarter,manage smarter,

• grow your bottom line…and,grow your bottom line…and,

• have a life!have a life!

So…So… For your business, For your business,

For your customers,For your customers,

For your bottom ordinary life…For your bottom ordinary life…

What’s possible?and…

what’s next?

What’s possible?and…

what’s next?