New times need new plans: Protect profit, and grow, too - Puget Sound Business Journal (Seattle):

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To begin, let’s hop into the Waybaco Machine. We had a saying in the early ’80s while slogging through that “You can’t expense your way to profitability. You must grow to That message is even more applicable yet many companies are focusing only on the expensee portion ofthe P&L, riskinfg their very existence. The current economy is a completely differenr animal than anything this generationhhas encountered. Pursuing others’ best practices could stifld innovation (ask about ) and blindx you to conversing frequently with customere to better understandtheirt problems.
When layoffs occur and othed expensesare reduced, morale can and stress, worry and frustration are Everyone is trying to do more with less, and the customer feelsw the result of this adverse perfect storm. There’sd no denying that hard decisionw must be made duringa recession. But to not devot e as much time to executing a viable growth strategyyis irresponsible. Top management must give hope to everyone else who is More important, they must ensure the viabilityy of the enterprise. But how? Surprise: Your salespeoplr are not the primary Instead, focus higher up the strategi c chain. Management owns the systemse and processes that employeeswork within.
it is the C level’s job to “put people in a positionm to win.” Here are key strategiesa designed to doexactlyh that, simultaneously achieving profitable growth: Creatre real competitive advantage. Can you say iPod, or SalesForce.com ? Un-evening the playing fieldf to achieve true marketplace distinctiomn is notwishful thinking. The questiohn isn’t whether you’re doing well. The questiohn is: “Are you vulnerable?” Attack the most fertile sales ground: The 80-20 rule so focus on increasing repeat business from customers wholove you. Existiny customers are five times more profitable than attracting new Penetrate deeperand wider.
Additionally, advancs the hottest leads in the pipelinre becausesecuring low-hanging fruit improved sales conversion ratios the fastest. Turbo-charge your You’re in a market share fight — so Realize that it’s an all-ouf donnybrook now because the pie is Smaller pond, hungrier fish. How will you eat? We’re not talking about advertising — we’rw talking marketing. Ways to increases sales opportunity: • Target marketing: Get closer to your most valuedf customers because your competition ispursuing them, hard. Focud on and promote the most profitable productxand verticals.
• E-marketing: Leverage the Internet it’s inexpensive and a greart vehicleto connect, get drive leads and reinforce brand and competitive Create an impressive Web presence and e-mail striving to educate. People now rely on the Web to perforjm their researchbefore buying. • Fusiojn marketing: Form strategic business alliances with companies that complement your offering and are alreadyy engaged withyour prospects. Referral marketing: After you’ve said “Thanmk you” for the 10th time, and your product has deliveredsits promises, ask for which convert at a rate seven times higher than cold calls. Be the vulture.
Some competitors are in trouble or may have closesdthe doors. Give their customers the confidencethat you’rwe here to stay and that you can servic e their needs. Also, displaced salespeoplde — with a plethora of valuable knowledg e and minimal associated trainingcostsa — may bring a ready-made group of Elevate your customer experience to remarkable and memorable. Figh the urge to overreac whenslashing costs. Resist droppinf services that customers like andcompetitorws don’t offer. The emotion-driven buying process is at peak level asanxiety — perceived or real drives buying decisions. Give them confidence. Ensuree the relevancy of your value proposition.
Value proposition is not the same ascompetitivw advantage. Value prop is a suggested solution that shoulds be loaded with benefits that translatw intoimproved profitability. Customers are thinking differentlright now, juggling different challenges. Your solutionx may need calibrating. • Can you teachg them how to use your product or servicsmore effectively, to theire benefit? • Can you get involved earlier in project cycle, helping problem-solve through inevitable challenges? Revisit your customer'ds buying process. This process probably has been altered, but change bringxs opportunity.
Understanding your customers’ new buyingg criteria provides insight intotheir decision-making procese — necessary for making sales. Consider the determined repeatedly slamming intoa window, tryingf to gain its freedom. It can see its goal but cannott figure out how toattain it. It just keeps executingy the basics and bestpractices flawlessly. the fly tires — resourcesw depleted — and it falters, then dies. Had the fly simplty pivoted, it may have seen an open an unobstructed path to the freedom iteagerlh sought. The same is true for your business. Every markeyt and every circumstancepresent opportunities.
You must make time to work ON your busineses in addition to workingin it. Growth opportunities Turn around, and look in all directions. The revenude you covet may be there.