How well do you know your core customer?
How Selling More To Your Core Customer Will Help Your Business Grow
You’re sitting in an Executive Team meeting. The conversation turns to your customers. What thoughts do you have in your head? And are these the same as everyone else’s? I bet they aren’t.
I ask this because I’ve been there. At Peer 1, we found ourselves with 13,400 customers. And when we met to discuss initiatives, we realised that when we talked about customers, we all meant something different.
I was thinking bigger, upmarket businesses. Ones with more complexity that would result in more margin and more growth. Others were thinking of the average customer that we served at $2000 per month. Others still were looking at it through the lens of ServerBeach – a company that we bought from Rackspace – whose value to their customers was measured in the amount of computing power they got to their dollar. None of these was wrong but there was no unity of approach. And no realisation of who our critical, core customers really were.
When we designed new products or services at Peer 1, we had no product marketing function. So there was no one in the team whose job it was to get under the skin of our core customer. Let alone understand what they needed and tailor our products accordingly. This is vital if you’re to have any chance of selling more to these high value, profitable customers.
So we decided to get crystal clear on the identity of our core customers. And then focused on how we could sell more to them. Here’s what I learned.
Understanding Cash Flow and the Power of One with Alan Miltz
Do you understand cash flow? As in, do you really understand your cash flow, or are you just saying yes because you know you ought to?
Alan Miltz, co-founder of Cash Flow Story and co-author of Scaling Up has made it his life mission to help business owners not just understand cash flow, but to use it to avoid growing broke.
Alan’s idea, The Power of One, is that if you incrementally changed your business by 1% or 1 day changes, how long would it take you to achieve your desired financial results? The Power of One, says Alan, is the code of your company.
Why 1? Because everything Alan has developed one common theme – to make the complex simple. He wants business leaders and their teams to learn to love the numbers.
“Revenue is vanity, Profit is Sanity and Cash is king.”
Why might you listen to Alan? Because he’s the chartered accountant who co-wrote Vern Harnish’s book – Scaling Up Rockefeller Habits 2.0.
In today’s episode Alan explains why you need a cash flow ladder for your products or customers. You need to know what the working capital and cash implications are of each dollar of revenue to that customer cohort or for that product. He also discusses the levers that the leadership team should be able to pull to improve cash flow.
To find out more, check out the links to www.cashflowstory.com where Alan’s software resides.
Guy Raz dives into the stories behind some of the world’s best known companies. How I Built This weaves a narrative journey about innovators, entrepreneurs and idealists—and the movements they built.
Rudeness at work is rampant, and it’s on the rise. Over the past 14 years we’ve polled thousands of workers about how they’re treated on the job, and 98% have reported experiencing uncivil behaviour. In 2011 half said they were treated rudely at least once a week—up from a quarter in 1998.
Studies show that rudeness among colleagues is reaching new heights—and causing far more harm than previously believed.
September 2021 was a bad month for manners. On the 21st, a woman pulled a gun on servers at a Philadelphia fast food restaurant when they asked her to order online. On the 16th, several women from Texas pummeled a hostess at a New York City family-style restaurant. A few days prior to that a Connecticut mother was investigated for slapping an elementary school bus driver and that same week, a California woman was charged with felony assault for attacking a SouthWest airlines flight attendant and dislodging some of her teeth.
Is there a secret formula for improving your life? For making something a viral hit? For deciding how long to stick with your current job, Netflix series, or even relationship?
This book is all about the equations that make our world go round. Ten of them, in fact. They are integral to everything from investment banking to betting companies and social media giants. And they can help you to increase your chance of success, guard against financial loss, live more healthily and see-through scaremongering. They are known only by mathematicians – until now.
With wit and clarity, mathematician David Sumpter shows that it isn’t the technical details which make these formulas so successful. It is the way they allow mathematicians to view problems from a different angle – a way of seeing the world that anyone can learn.
Empowering and illuminating, The Ten Equations that Rule the World shows how maths really can change your life.
In short, imagine a workplace culture where employees were absolutely obsessed with customer service.
The Service Culture Handbook is a step-by-step guide to help you develop a customer-focused culture in your company, department, or location. Whether you’re just beginning your journey, or have been working on culture for years, this handbook will prepare you to take the next step. You’ll receive actionable advice, straightforward exercises, and proven tools you can utilize immediately.
Learn the one thing that forms the foundation of every great culture. Discover what customer-focused companies do differently to engage their employees. And explore ways to strategically align every facet of your organization with outstanding service.
Creating and sustaining a customer-focused culture is a never-ending journey that takes hard work, dedication, and commitment. The Service Culture Handbook is an indispensable resource to help you and your employees stay headed in the right direction.
News From The Farm
Scaling Up Workshop, 18th November
Only TWO WEEKS LEFT for our next Scaling Up Workshop at Foundry Farm in The New Forest. If you find yourself thinking about how can you start making a difference in your organisation before Christmas, come and join Scaling Up coaches Dominic Monkhouse and Philip Rose for this half-day coaching session.
If you’re serious about growth, this is the ONE workshop you need to attend to get absolute clarity on the challenges confronting your business and how to overcome them to achieve stratospheric growth.
MEANINGFUL ACTION FOR MONDAY
Write better job ads that focus on what’s in it for your ideal candidate
Over the last couple of weeks, many of our clients have been struggling with recruitment. It’s their biggest challenge. So I go and look at their job ads, and almost all of them are awful. They look and read the same as everybody else’s.
The job title is boring and it’s not clear what’s in it for the ideal candidate. Remember – you need to capture that guy sitting on the sofa on a Sunday night with a glass of wine thinking: “I wonder if there’s anything out there”.?
The first paragraph of your job ad should be “what’s in it for you”, not “we’re an amazing company”. So, if you’re the CEO or you’re reading this, go search for your own company job ads, and you’d be amazed how awful they are.
Join Dominic Monkhouse and Bryony Thomas for a Live Webinar to dive into her book Watertight Marketing. They will be talking about all things business and marketing to give you the insight, energy, and passion you need for the rest of the year and next quarter.
Quote of the week
“The key is to set realistic customer expectations, and then not just meet them, but to exceed them – preferably in unexpected and helpful ways”Sir Richard Branson
Dominic offers business coaching and management development, strategy planning and organisational change, using tried and tested methods to launch your organisation onto an unparalleled growth trajectory. His programme is a function of his broad experience, his deep expertise and a proven process used by over 2,700 firms worldwide.