Profit Leak 6 – Is Your Business Strategy Causing Lost Opportunities?
A Good Business Strategy
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 – you should be able to grow faster than everyone else with a good business strategy, regardless of the economic climate. The key to a 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”. However, 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. Reach Your Ideal Customers
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. Take Control of Customer Acquisition Costs
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.
Improve Your Business Strategy for Opportunity & Growth
Profit Leak #1: Are You Losing Productivity on B and C Players?
Profit Leak #2: Is Poor Leadership Holding Your Company Back?
Profit Leak #3: Are You Too Focused on Tactics Rather Than Strategy?
Profit Leak #4: Are Vacant Positions Affecting Business Performance?
Profit Leak #5: Do You Have Retention Issues?
Profit Leak #6: Is Your Business Strategy Causing Lost Opportunities?
Profit Leak #7: Are Your Customer Attrition Rates Too High?
Profit Leak #8: Do You Know What Mistakes Are Costing Your Business?