Build Your Tribe

Do you want to get more clients?

Are you finding it hard? Are you meeting lots of people and generating lots of leads through your online and offline networks? Are you meeting with people who are expressing an interest in what you do? And are you then finding that very few of them are converting, and those that do are taking a long time to do so?

If so, the fault is not with them – it is with you!

Don’t try to appeal to a massive audience and hope that a few will fall out when you need them, it won’t provide you with a sustainable and growing business.

Much better to build a tribe.

Know who the people you want to attract, the ones that share your beliefs, ideas and perspectives. These are the ones who “get” you, and are already on the same journey as you.

So be clear on what you stand for, and what you don’t, and make your messages strong, clear and appealing to those who want to stand along you. Make them part of your tribe!

What are you going to do to build your tribe and your business? Tell me in the comments section below.

To view or download a PDF version of this blog click here

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

The Only 2 Ways of Making Money

Is the whole greater than the sum of the parts anymore?

by Andrew Cooke, Growth & Profit Solutions

When we look at some of the changes brought about by changes in technology we find that it has effectively, and literally, taken products, institutions and industries apart. In essence it has unbundled them. Unbundling is the process of taking something and breaking it down to its constituent parts so they can be sold and acquired separately rather than just as part of the whole.

Music is a good example. It used to be that if you liked a band’s new song you could buy it on a 45 record. The song you wanted was on the ‘A’ side and on the ‘B’ side would be another song – usually not worth listening to. If you wanted the one song, you had to buy the other. When the band released its next album you would have to buy the LP record or CD, this effectively bundled all the tracks together whether you wanted them or not. More recently we had the development of companies such as Napster which enabled you to download individual songs – unbundling what was previously bundled together. This has gone further with streaming through Spotify and similar companies, where you can choose what you want and play it immediately.

This process of bundling and unbundling has affected every industry, and it is an on-going dynamic.

Low-cost airlines allow you to book your seat, and have unbundled all the other offerings allowing you to select what you want. So, if you want, you pay for seats with extra leg-room, for headsets, for in-flight entertainment, for food, for drinks, for luggage, for pillows, for blankets. Michael Leary, CEO of Ryanair based in Dublin, once joked (?) about charging people to use the toilet on flights.

Other companies have gone the other way, from having a series of different offerings that were purchasable independently of each other, to being bundled together. For example, Microsoft sells its desktop products as a bundle in Microsoft Office at a significant discount to the price if you bought the same set of products separately.

We tend to cycle through a time of bundling and unbundling our offerings depending on our product portfolio, the level of competition, and changes in customer needs, technology, the industry and the general business environment.

Look at your products and services and ask yourself are there other ways you can make them available to your customers?  Can you unbundle all these things and sell them separately successfully? Or can you bring all the things you sell separately and bundle them together and sell that successfully?

Aristotle said that the whole is greater than the sum of its parts, but he may not be right for much longer.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Customers – Market Reach or Market Gravity?

The Only 2 Ways to Reach Your Customers

by Andrew Cooke, Growth & Profit Solutions

There are two ways to market to and gain customers, and two ways only.

Either you reach out to them, or they are attracted to you. One way you try to “push” them to come to you, the other way you attract them to you and your offerings and they “pull” themselves in. These two ways are at opposite ends of the spectrum

So what does this mean for you?

Market Reach Out

Many businesses try to acquire new business and new clients by going out and trying to find them – especially newer businesses and those who are in commodity markets. Typically this includes advertising, promotional activities and a lot of “telling” – proudly telling your prospective customers what you do.

This method involves a lot of effort and a relatively low return. You have to kiss a lot of frogs to find a prince, and often the princes that you do find are only there for the short-term before they hop off to your competitors. This is a costly and risky exercise where your resources, time and investment are used inefficiently and effectively,

As time goes on, you build up history and credibility, and you get smarter and more focused on what you do for your clients rather than what you do for yourself. You also begin to market yourselves using more targeted, interactive approaches that are relevant, of interest and of value to your customers – here you are listening to your customers. Ways to create gravity include, but are not limited to, testimonials, press coverage, articles in trade journals and magazines, speaking, referrals etcetera.

Market Gravity

As the awareness of your work, your reputation and your relevance to your prospective client increases so the dynamic begins to change. Rather than you having to seek out clients they begin to come to you. Your cost of acquisition of clients is lower, they are less price-sensitive as they see the value you can help them realise, and you get a better quality of client with whom you can develop long-term opportunities.

As such, your revenue and profit opportunities improve and you can become more selective both in terms of with whom you work and what kind of work you do. You are more strongly differentiated from your competitors, and prospects want you. Your business growth begins to accelerate with less effort.

How are you attracting your clients? Are you reaching out and trying to pull them in, or are you creating the ‘gravity’ so that they come to you? If you don’t build your own ‘market gravity’ no-one else will – so start work on it today!

What has worked or not worked for you? Share your knowledge, share the wealth!

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Peter Drucker on Marketing

Peter DruckerLong ago Peter Drucker, the father of business consulting, made a very profound observation that has been lost in the sands of time:

Because the purpose of business is to create a customer, the business enterprise has two – and only two – basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”

Today, when top management is surveyed, their priorities in order are finance, sales, production, management, legal and people. Missing from the list: marketing and innovation. When one considers the trouble that many of our icons have run into in recent years, it is not easy to surmise that Drucker’s advice would have perhaps helped management to avoid the problems they face today.

Ironically, David Packard of Hewlett-Packard fame once observed that “marketing is too important to be left to the marketing people.” But as the years rolled on, rather than learn about marketing and innovation, executives started to search for role models instead of marketing models.

Tom Peters probably gave this trend a giant boost with the very successful book he co-authored, In Search of Excellence. Excellence, as defined in that book, didn’t equal longevity, however, as many of the role models offered there have since foundered. In retrospect, a better title for the book might have been In Search of Strategy.

A popular method-by-example book has been Built to Last by James Collins and Jerry Porras. In it, they write glowingly about “Big Hairy Audacious Goals” that turned the likes of Boeing, Wal-Mart Stores, General Electric, IBM and others into the successful giants they have become.

The companies that the authors of Built to Last suggest for emulation were founded from 1812 (Citicorp) to 1945 (Wal-Mart). These firms didn’t have to deal with the intense competition in today’s global economy. While there is much you can learn from their success, they had the luxury of growing up when business life was a lot simpler. As a result, these role models are not very useful for companies today.

There is a growing legion of competitors coming at new businesses from every corner of the globe. Technologies are ever changing. The pace of change is faster. It is increasingly difficult for CEOs to digest the flood of information out there and make the right choices.

But a CEO can have a future.

The trick to surviving out there is not to stare at the balance sheet but simply to know where you must go to find success in a market. That’s because no one can follow you (the board, your managers, your employees) if you don’t know where you’re headed.

How do you find the proper direction? To become a great strategist, you have to put your mind in the mud of the marketplace. You have to find your inspiration down at the front, in the ebb and flow of the great marketing battles taking place in the mind of the prospect. Here is a four-step process to pursue:

Step 1: Make Sense in the Context

Arguments are never made in a vacuum. There are always surrounding competitors trying to make arguments of their own. Your message has to make sense in the context of the category. It has to start with what the marketplace has heard and registered from your competition.

What you really want to get is a quick snapshot of the perceptions that exist in the mind, not deep thoughts.

What you’re after are the perceptual strengths and weaknesses of you and your competitors as they exist in the minds of the target group of customers.

Step 2: Find the Differentiating Idea

To be different is to be not the same. To be unique is to be one of its kinds.

So you’re looking for something that separates you from your competitors. The secret to this understands that your difference does not have to be product related.

Consider a horse. Yes, horses are quickly differentiated by their type. There are racehorses, jumpers, ranch horses, wild horses and on and on. But racehorses can be differentiated by breeding, by performance, by stable, by the trainer and so forth.

Step 3: Have the Credentials

There are many ways to set your company or product apart. Let’s just say the trick is to find that difference and then use it to set up a benefit for your customer.

To build a logical argument for your difference, you must have the credentials to support your differentiating idea, to make it real and believable.

If you have a product difference, then you should be able to demonstrate that difference. The demonstration, in turn, becomes your credentials. If you have a leak-proof valve, then you should be able to have a direct comparison with valves that can leak.

Claims of difference without proof are really just claims. For example, a “wide-track” Pontiac must be wider than other cars. British Airways as the “world’s favorite airline” should fly more people than any other airline. Coca-Cola as the “real thing” has to have invented colas.

You can’t differentiate with smoke and mirrors. Consumers are skeptical. They’re thinking, “Oh yeah, Mr. Advertiser? Prove it!” You must be able to support your argument.

It’s not exactly like being in a court of law. It’s more like being in the court of public opinion, especially with the rise of social media.

Step 4: Communicate Your Difference

Just as you can’t keep your light under a basket, you can’t keep your difference under wraps.

If you build a differentiated product, the world will not automatically beat a path to your door. Better products don’t win. Better perceptions tend to be the winners. The truth will not win out unless it has some help along the way.

Every aspect of your communications should reflect your difference. Your advertising. Your brochures. Your web site. Your sales presentations.

The folks who work for or with you don’t need mystical answers on “How do I unlock my true potential?” The question they need answering is, “What makes this company different?”

That answer gives them something to latch onto, and run with.

To view or download a PDF version of this blog click here

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.