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Marketing: Fit the approach to your desired customer
Monday, August 13th, 2007

The other day, a potential customer called my family’s business, The Illahe Lodge. After we talked about the lodge which has 12 guest rooms (with bathrooms), a large dining room, and a large living room, the potential customer wanted to know if we have a website.
Instead of relying on websites, The Illahe Lodge has always relied on its greatest asset… Its customers. Over the years, they have talked about their experiences and this has led to repeat and referral business for us. Through the customers, the lodge has received some publicity - Sunset did an article about hiking the Rogue River Trail and the lodge was mentioned in a book about fly fishing vacations.
Customers come to the lodge for many reasons - fishing, hiking, sightseeing, bonding with their families, connecting with their history, experiencing a simpler time, to hang out with my family, and getting away from it all.
It is easier to work with customers that we know. One customer always wants dinner at 7 P.M. Other customers have specific food preferences. Because we know these things, we are able to provide the customers with experiences that are better aligned with what they are seeking.
Another customer wants to come here just to hang out with my father. Being a helpful sort, I’ve suggested that he simply rent the lodge or that he pay for the privilege of working at the lodge. Not sure if that will happen, but…
Anyway, what I tell my consulting clients is that, rather than mass marketing for the sake of mass marketing, use the marketing approach that is most likely to attract the customers that you are seeking. Is that what you are doing?

Posted in Business Acumen, Marketing, Negotiations | No Comments »



Relationship Tip: Manage Emotions
Tuesday, July 24th, 2007

When trying to encourage people to contribute their ideas to team meetings, it is important to manage emotions.

When emotions go unmanaged, people who might disagree tend to fall silent.  If people who disagree remain silent, we lose the benefit of their wisdom.  Mistakes are made.  Issues are overlooked. 

By managing our emotions (and helping others manage theirs), we create more inclusive and participative teams.  In many cases, this approach helps people work together.

What steps can be taken to manage emotions?

Recognize when emotions are likely to be high and have a plan for dealing with the emotions, if they arise.  By preparing for the discussion and having a plan for dealing with emotion, we are better prepared to deal with emotional situations when they arise.

Separate views from the individual.  By focusing on the substantive issues rather than making personal comments, people are better able to participate in substantive discussions.

Genuinely care about everyone’s success.  If people know that we are committed to their success, they are less likely to feel personally attacked.  Reserving judgment, understanding what the other people are saying, and diffusing tension are three ways of doing this.

What does this mean for your business?  How do you want to deal with conflict?

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Posted in Achieving Goals, Business Acumen, Negotiations, Solving Problems, Team Building | No Comments »



Relationship Tip: Be a Trusted Advisor
Thursday, July 19th, 2007

Often, consultants are people who tell clients how to do things that the consultants have never done.  This is a recipe for a bad business relationship.  What can be done?

When people help clients solve problems they have faced, they:

Can provide better advice

Set their clients up for success

Bring a greater understanding of issues that may arise

Have greater ability to anticipate and suggest solutions for issues that the clients may encounter

Are more trustworthy and more credibility

Can help people look at the issues from a fresh perspective

In business, each of us should strive to be a trusted advisor.  Steps that can be taken to become a trused advisor include:  

Obtaining real world experience before providing business advice on a topic

Focusing on issues that matter to us

Asking intelligent questions and sharing relevant information

Looking at the issue from different perspectives

Being a student of the issue, rather than experts on it

Think about it. 

Does it make sense? 

If so, what does it mean for you as far as your current focus and activities?  What does it suggest you should do now?

Are you a trusted advisor for your business contacts?

Posted in Business Acumen, Customers, Negotiations, Solving Problems | No Comments »



Relationship Tip: Focus on Factors You Can Control
Saturday, July 14th, 2007

Suppliers try to force customers to change.  Customers try to force suppliers to change.  

Trying to change someone else leads to:

Conflict 

Frustration for the parties

Backlash from the party pressured to change

Resentment and abandonment of the relationship

Instead of trying to change someone else, focus on factors that are within your control.  This can be done by:

Changing perspectives

Accepting the other party’s right to control itself

Exploring the issues that led the other party to take the action it can

Asking the other party to take specific action and explaining why you are asking

Talking about the issue and seeking options that address all parties’ concerns and needs

Agreeing to disagree on the issue and, then, making the best decision you can based on the facts as they currently exist

Finding and implementing workarounds that do not require change by the other parties to the relationship

What results can these approaches generate for you?  

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Posted in Business Tips, Negotiations, Solving Problems | 1 Comment »



Value: What matters to your customer?
Friday, July 13th, 2007

One of the buzz words in business is “value proposition.”  How many times do people ask, “what is your value proposition?” 

Before defining a value proposition, it is very helpful to think about what your customers value.  In other words, what matters and has value to customers?

Typically, customers find value in having the solutions to their actual problem provided in a way that makes sense at a reasonable price.  Speaking from a procurement perspective, customers often value: 

Tailoring of the solution to their environment so that customers can roll the solution out and, like a piece in a jigsaw puzzle, it just fits snuggly into place without gaps or overlaps.

Quality of the processes and deliverable solution so that the project is relatively painless - the process is smooth, conflict is minimal and quickly resolved, administration of the contract is easy for the parties to do, and the results meet the business needs. 

Responsiveness to the customer’s needs is often valued.  From project to project and customer to customer, the responsiveness that the customer needs can vary a great deal.

Some people try to sell customers on a solution to a situation that the customers do not perceive as a problem.  This involves multiple layers of selling.  Customers have to be sold on the idea that they have a problem.  Then, customers have to be sold on the importance of resolving that problem.  The third thing that customers have to be sold on is that the specific problem is more important than whatever the funding would have otherwise been used to correct.  Finally, after all that, customers have to be sold on a supplier’s suitability.  Wouldn’t it make more sense to find out what the customer perceives as the problem, understand why the customer needs to resolve it, explore the customer’s budget, and save the selling for the end when it is necessary to help the customer understand the supplier’s qualifications?

Reasonable prices.  Price is a double-edged sword.  If a supplier is perceived to undercharge on price, the supplier is likely to be eliminated based on quality concerns.  In other words, the customer is uncertain if the supplier can meet the customer’s needs.  In contrast, if the supplier is perceived to overcharge on price, the customer tries to negotiate price (often with inadequate information) or walks away because the price is too high.

By understanding what matters to customers, suppliers can tailor their offering to reflect what customers value.  At the end of the day, this is the most compelling value proposition of all.  How do you get there from here? 

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Negotiation Scenarios: Disparity of Bargaining Power
Thursday, July 12th, 2007

Suppose that Sam Supplier is with a small firm that is providing products and services to a large customer.  In this situation, Sam’s firm and the large customer are likely to have differences in their relative bargaining power.

Often, small firms are so anxious to win business, especially from large companies that they are likely to agree to provisions that can cause challenges for them. At times, the customers pressure the small firms to do more. In many cases though, the small firms pressure themselves to do so.

Whenever there is a difference in bargaining power, it is a good idea to talk about the small firm’s ability to meet the big customer’s needs. 

Think about what this scenario means for your business.  Specifically, consider questions like:

How could disparity of bargaining power arise for your business?

Are there certain signs that would lead you to think there is a disparity in bargaining power?

If the parties have disparity in bargaining power, what are some steps that you might take to deal with the issues?

What are some communication techniques that might help you identify and deal with disparity in the parties’ bargaining power?

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What should we do now where Iraq is concerned?
Thursday, July 12th, 2007

Many people - including those in the US - had strong misgivings about the wisdom of invading Iraq.  The planning was grossly inadequate.  The US appetite for sustained conflict was questionable.  But, our president made the decision to invade Iraq and our representaties supported that decision.

That is old news.  Fast forward to today.  Regrettably, the technology for uninvading Iraq does not exist.  We have to live with our actions up to this point.  And, we are responsible for the consequences of our decisions.  

In our government by pollster, we have seen a lot of polls about our support for the war in Iraq.  Americans oppose the war and are tired of seeing Americans killed and maimed.  We would rather see the money spent elsewhere.  We are concerned with the lack of progress.

All that said, what options exist for us today?  We could leave Iraq.  We might stay the course.  We might invite dialogue with countries in the region.  We might even engage in dialogue with terrorists.  Maybe, there are options for growing our influence quickly.  Potentially, there are other options that I don’t see. 

What other options exist?

Which options are best for Iraq, the US, other countries, and the world?

Once these options are identified, let’s come up with a plan that is based on factors within our control, rather than expecting Iraq or other countries to act in a certain manner.

Food for thought:

What is going to happen if we withdraw from Iraq today, as many are asking the government to do? 

Do you see it as realistic to expect the fledgling government of Iraq to solve the problem? 

 What strategy is going to leave us better off tomorrow than we are today as it relates to Iraq and international politics? 

Think about what can be learned from this situation for future decisions to intervene in or invade other countries.  What does this mean for our business decisions? 

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