Shift to Reach The Top
Investor's Business Daily - March 14, 2011
By Michael Mink
A firm running on all cylinders is a tough one to beat. Functioning at maximum efficiency means consistently evaluating areas for improvement. Consider these tips:
Embrace change. Companies that fail to do this when necessary can die, says Pamela Lockard, author of "Profiles in Marketing Excellence" and founder and CEO of DMN3, a marketing agency.
The convergence of traditional marketing with the onslaught of the Web means the consumer is now in charge. "If the consumer buys in a different way, you've got to look at the decision-making process and build your marketing programs around it," she told IBD.
One way: Develop easy-to-load mobile applications of your website, since more consumers are using smart phones to shop.
Measure initiatives. If you can't determine the results of ad dollars, don't spend the money, Lockard says. In the old days, marketing money could fly without firms knowing the tangible results for maybe six months. Now with the Web, she said, "you're learning results much more quickly. If what you're doing doesn't work, you can change gears immediately and not continue to waste money."
Provide information. Many companies try to convince customers they need to buy something. Continuing to do that will result in consumers paying less attention to you, Lockard says. Consumers don't want to be sold; they want to be educated on how your product or service will benefit them. "Consumers now gather and compare information. The more you can help them gather what they need to make a decision, the better off you are in your marketing," she said.
Focus. Lisa Hershman, co-author of "Faster, Cheaper, Better" and CEO of Hammer & Co., which builds clients' efficiency, says too many companies operate as if they run a collection of departments rather than one enterprise. She points to insurance firms. While sales departments want to make anyone a customer, underwriting units aim to reduce risk and aren't so keen on signing everyone.
It's also key to challenge assumptions. She says one firm showed quarterly delivery numbers meeting targets. A deeper look revealed delivery times varied, causing many customers to gripe. Rather than measure the split effectiveness of unit activities, companies should align everyone with their big picture.
Achieve balance. Too often corporate goals are expressed only in financial terms and lack a link with customer needs, Hershman says.
Determining what a customer wants doesn't necessarily align with the things he's willing to pay for. "Ask airline passengers what they want and they'll say roomier seats, more flights, better food and a host of other items. But their buying behavior suggests that they are actually driven by two real items — price and schedule," she said.
Refine processes. Do this by measuring efficiency and the human component before spending blindly on technology. "Do you know what happens when you automate a bad process? You get bad results faster," Hershman said.
Design work to meet the company's big picture. Next, determine who will perform what tasks. Then you're ready to enhance with technology. "This will also result in a savings of technology budget, as the process and results are tested and proved first," Hershman said.