March 17, 2012
A critical component of creating your strategy is to determine WHO do you want to SERVE?
This represents a key decision as it defines the turf you intend to compete on and where you will allocate your scarce resources.
Rather than flog products to a mass market, you narrow your opportunity down to smaller groups of customers where you have competencies that stand-out from your competition.
The primary objective is to maximize the percentage of the target customer’s business you hold as opposed to the portion of a mass market you possess with the products you sell.
If you have, say, 30% customer share, you have work to do; a significant growth opportunity exists. Understand customer secrets, create high value offerings and provide them as tangible benefit of the deep intimate relationships you seek to build with them.
If, on the other hand, you hold 80% customer share, watch your back! You represent a growth opportunity for others and they will be targeting you to gain advantage. Your action plan? Focus on deepening the relationships you have with these customers. Build barriers to customer exit by providing unsurpassed value.
At the end of the day, its all about FOCUS. You don’t have the luxury of unlimited resources to chase a mass market.
Select the customers who represent the highest potential opportunity for your organization, learn their innermost needs and desires and create holistic Offers for them that provide relevant and compelling value.
And, measure customer share continuously as the dash board measure of your success.
- Posted 3.17.12 at 09:18 am by Roy Osing
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