January 29, 2010
Traditional business planning methods have issues; they’re all screwed up.
The second question to answer in the Strategic Game Plan creation process is which customers should you serve.
Choose customer groups that have the capability to generate the growth you are expecting. You may have the products and services they want, but if they don’t have the latent potential to meet your HOW BIG objectives, you shouldn’t be chasing them.
If you do, they will suck up your precious resources with little return. you will surely fall short of your growth goals..
HOW BIG should determine WHO to SERVE.
There’s no such thing as a bad customer; its just that some are better than others.
Examine the customer groups that you currently do business with. Can they deliver to your new revenue expectations? Are their market characteristics appropriate to give you the growth you want? Apart from demand factors, what about the competitive environment - is it intense or are there opportunities to enhance your market position?
And how “fast and easy” are they to engage and close? Remember, a 24-month plan period needs a relatively short selling cycle. You can’t afford to take 18 months closing a deal with any customer.
Carefully evaluate your options and choose the customer segments that can deliver you BOTH the growth you need as well as leverage the competencies of your organization.
1. Customer groups in which your customer share position is low. If you currently have a small percentage of their total business you have a good growth potential.
2. Customers that are currently growing in the double digits and where you have an advantage over others.
3. Geographically defined segments which have easy access at relatively low cost.
4. High lifetime value customer groups where investments will provide healthy returns.
5. Customer groups that have been loyal to you.
6. Segments where your competitive position is strong and where your advantage is clearly defined.
7. Choose the MINIMUM number of customer groups that will generate the revenue you want. The more you choose, the more diluted your efforts are likely to be. Choose the “critical few” groups rather then the “possible many”.
What do you do with customer groups you currently serve but can’t serve your growth needs? Be prepared to walk away from them. You have to let them go in favor of focusing on the few choice segments that will provide the revenue growth you need.
A client’s feedback: “Roy led us through the development of our Strategic Game Plan using his practical BE DiFFERENT Practices. The 2-Day experience for me and my Leadership Team was amazing! We not only created a Strategy that will take us on an exciting journey, we had fun and learned a lot about business at the same time. We decided to stay with Roy to help us execute out new SGP and keep us on track. A great investment and I would definitely recommend it to others who are looking for a way to break away from the pack.” — Carolyn Douglas, Founder, Intranet Connections, North Vancouver BC
- Posted 1.29.10 at 01:53 pm by Roy Osing
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