Profit Leak 6 – Is Your Business Strategy Causing Lost Opportunities?
A key way to measure strategy effectiveness is sales growth. Is your revenue growing faster than the market? While there are exceptions to all general rules, if you have a good strategy you should be able to grow faster than everyone else, regardless of the economic climate. The key to good strategy is to not just talk about it, but to implement it. Are you spending enough time examining whether your company’s strategy is “better”? And “better” can either mean having a new plan, or that you execute a commonly used strategy better than anyone else.
Differentiate Yourself from Competition
In most industries it is more and more challenging to be “unique”, but it is still not as hard as you might think to be perceived as ”unusual”. Does your business have an “unusual offering” that differentiates your product and services from those offered by your competition? I’ve deliberately chosen to use the word “unusual” instead of “unique”. For example, everyone in the fast food industry knows they are supposed to deliver consistent quality in food, fast, and yet most don’t. How many times have you gone to a fast food restaurant and felt that it was not fast? Of the many fast-food leaders, the best record for speedy service belongs to McDonald’s. And when it comes to customer service, Nordstrom has been able to set themselves apart from competitors who claim high-quality service as their differentiator.
Two Reasons to Differentiate Yourself From Competition
The concept of configuring an unusual offering, one that differentiates you from your competition, is essential for two reasons: 1) the better able you are to distinguish your company from your competitor (“unusual offering”), the easier it becomes to appeal to your target customer; and 2) the more people you try to please by adding features, benefits and services, the higher your cost structure becomes and the less you stand out to your ideal target customer. If your customer acquisition cost is too high, or the time it takes to acquire more customers is too long, your business has not distinguished itself from the competition.
Marketing When and How
Have you confused having an “unusual offering” with changing your marketing materials? A common mistake many owners make is to create their marketing before they really develop an “unusual offering.” Worse, some develop an “unusual offering” on paper that they cannot back up through operations. It should work in reverse. Once you develop and master your unusual offering, customers will easily agree to choose you over your competition. Then you can create marketing campaigns that make it easy for people to notice you, and have salespeople that can convert the core customers as they walk into the sales process.
If you are interested in addressing your “profit leaks,” let’s schedule a time to further discuss your business and how we might work together to patch up your leaky bucket. Call us for a FREE consultation 1.877.692.6211.