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Growing Your Business In A Hyper Competitive Market
The document discusses strategies for growing a business in a competitive market, emphasizing the importance of understanding customer needs and differentiating business offerings. It outlines three primary competitive models—operational leadership, product leadership, and customer intimacy—and encourages companies to adopt one focus to drive their success. Additionally, it highlights the importance of market intelligence, customer relationships, and effective sales management to enhance business performance.
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Growing Your Business In A Hyper Competitive Market
- 1. Growing Your BusinessInA Hyper-Competitive MarketPrepared for TEANA16 July 2011
- 2. Simplicity Partners“We arean elite team of practitioners who make businesses sustainable.”Our Mission:
- 3. To be thepremier business growth firm
- 4. To provide thebest value in the marketplace
- 5. To create andshare a culture of learningProfit/ PractitionerDrives Our Economic EngineOur HedgehogWe Can Be The Best In The World At Helping Companies Work Efficiently and EffectivelyWe Have A Passion For Making Things Work Right
- 6. A Well ManagedBusinessGoalsDirectionFeedbackObjectivesObjectivesObjectivesAction/ BehaviorAction/ BehaviorAction/ BehaviorAction/ BehaviorAction/ Behavior
- 7.
- 8. Know Your ProspectiveCustomer wellGrowing Your Business In A Hyper-Competitive Market
- 9. We Did OurHomework on TEANA83 member companiesRepresents elite expediting firmsSelect invitation and vetting3 units – 350Small revenue to VERY large
- 10. I Bet YouKnow ThisSome things helpRevenue up 28% YOYRevenue/mile up 15%Historically strong load demandNet fleet size down 14% since 2007CSA driving out some competitorsOthers don’tFuel continues to be a headacheHigher fixed investment needed for efficiencyAs many as 400,000 fewer drivers by 2012Changing DOT rulesFMCSA compliance
- 11. But Do YouKnow This?
- 22. What Does ThisMean To You?You’ve positioned in a segment which will pay better rates for better serviceVolume expectations are flat to up 10%Your customers aren’t worried about your industryYou’ve got to tell your story
- 23. How Does YourBusiness Compete?Growing Your Business In A Hyper-Competitive Market
- 24. The 45 SecondMBA in MarketingThree ways your company can compete1Best total cost = Operational LeadershipBest product = Product LeadershipBest total solution= Customer IntimacyWorld class organizations choose one to drive their businessWhich model describes your company?1. Treacy and Weirsema: The Discipline of Market Leaders. 1997, Perseus.
- 25. Marketing Vs. SalesTheACCH ModelMathematical approach to business developmentMethodical system to increase salesLets you differentiate between relationship building and sales resultsNow focus on the sale!
- 26. {CustomerValueDriving Force ForCustomerTo BuyCustomerBenefits ZoneofPossibleAgreementPriceDriving Force For SupplierTo SellSupplierProfitCostSource: Frank Cespedes, Harvard University. November 2008, YPO MI WestMaximizing Pricing and Value
- 27. Success and FailureSuccess:SolutionMarketing SolutionProgram and Resources OpportunitiesTransaction Marketing TransactionProgram and Resources OpportunitiesFailure:Solution Marketing SolutionProgram and Resources OpportunitiesTransaction Marketing TransactionProgram and Resources OpportunitiesSource: Frank Cespedes, Harvard University. November 2008, YPO MI West
- 28. Total Customer Benefits:How Is Value Delivered? Roles of Product, Sales, Services, Other? (example)Acquisition Costs +Usage Costs =Total Customer CostPossession Costs +7. Interest cost8. Storage cost9. Quality control10. Taxes and insurance11. Shrinkage and obsolescence12. General internal handling costs1. Price2. Paperwork cost3. Shopping time4. Expediting cost5. Cost of mistakes in order6. Pre-purchase product evaluation costs13. Field defects14. Training cost15. User labor cost16. Product longevity17. Replacement costs18. Disposal costsSource: Frank Cespedes, Harvard University. November 2008, YPO MI West
- 29. Total Customer Benefits:How Is Value Delivered? Roles of Product, Sales, Services, Other? (example)Acquisition Costs +Usage Costs =Total Customer CostPossession Costs +7. Interest cost8. Storage cost9. Quality control10. Taxes and insurance11. Shrinkage and obsolescence12. General internal handling costs1. Price2. Paperwork cost3. Shopping time4. Expediting cost5. Cost of mistakes in order6. Pre-purchase product evaluation costs13. Field defects14. Training cost15. User labor cost16. Product longevity17. Replacement costs18. Disposal costsSource: Frank Cespedes, Harvard University. November 2008, YPO MI West
- 30. Increasing Your SalesVolumeGrowing Your Business In A Hyper-Competitive Market
- 31. Pick How YouLeadExpediters enjoy a luxury most carriers do not: the customer’s sense of urgency.The value derived from the last minute save, recovery, or ease of use allows the expediter to claim each of the three options for market leadership.Where the balance of freight companies are forced to compete on the basis of price (Operational Leadership) you have the option to choose your own path.Does your team agree with your understanding of the firm’s position?“House Carrier #1”Freight carrier of choice for hundreds of manufacturersEmbraced low prices, beating the market in salesHow they did itTied all activities back to total useful time on roadAutomated maintenance plans to reduce unplanned downtimeGPS update of unit locations to reduce unplanned delaysLinked electronic logbooks, safety, and HR to identify and eliminate bad drivers
- 32. Listen to YourCustomersAnswer this: how different is your coverage map than anyone else’s? Beyond that, how much does your customer care about your coverage map?Understanding the specific companywide, departmental, and individual needs of your customer/prospect can help you sell more, for more money.Does your firm complete regular, methodical market intelligence gathering?If so, does it drive your service offering?The Sanair story$9 million niche provider to aerospaceThe go-to for Honeywell suppliersHow they did itListened to needs of buy deckKept reasonable pricesConstantly found sources for parts customers don’t needStrong customer connection through consistent outbound callsOwnership “rounds” with key customers
- 33. Completely Ignore YourCustomersSometimes your current customers don’t know what they’re going to need. Other times, your current customers needs don’t correlate with the broader market space.In either case, the competitive company develops an alternative model that supports the “other” market opportunities.Caution: failure to differentiate between the two can lead to failure in both!The Rapid Response storyRoughly $0 revenue in 2003$26 million 2004How they did itLogistics, technology assistedIgnored “current” ask for lower pricesFocused on future need: guaranteed availabilityHigh price, customer intimacy modelPeople-centric approachIncreased profit for carriers
- 34. Un – Sell!Becomingcomfortable with the Un – Sell can seem a bit daunting.Why would you want to waste your time - or your sales team’s time – by specifically not asking for the order?The problem we all face is that decision makers and gatekeepers have been conditioned to ignore the sales pitch.At the same time, people want to be heard. We want to matter. And we want to connect with a compelling story.The “Customer X” story$11mm expediterConsignee control was destroying revenue streamHow they did itUtilized focus group Un – Sell Invited 6 target prospects to participate15 minute pitch, 3 hour dinnerInvolved prospect’s senior leadership in development of market position and messageResponded with new prospect-defined sales model100% invitation to pitch
- 35. Managing Your SalesTeamGrowing Your Business In A Hyper-Competitive Market
- 36. A Tale ofTwo Sales GuysCharlie, the FinderSets aggressive goalsCommunicates progressAsks for field supportWorks with ops to improveConsistently beats expectationsBob, the MinderAccepts your targetsA black holeHides “His” customersLets ops figure it outConsistently tells you why he missed expectations
- 37. Who’s Vacation WillYou Fund?Put Bob into work-out!90 day program of measured activitySuccessful adherence to plan will generate significant new volumeMeasures are irrefutableOutcome speaks for itself
- 38. Your Methodical ApproachFocuson behaviors and activities firstMonitor and measure outputTie outcomes to outputsEvery able bodied salesperson will succeed!
- 39. Begin With AnnualExpectations
- 40. Break It IntoQuarterly Activities
- 41. Then Drive MonthlyActivities
- 42. The Big Finish!GrowingYour Business In A Hyper-Competitive Market
- 43. In SummaryDetermine yourmarket leadership positionListen to your customers’ needsListen to the marketplace for new directionUn-sell your way into new opportunitiesManage your sales forceLet us know your story!
- 44. That’s The Presentation:Whatshould we discuss?Growing Your Business In A Hyper-Competitive Market
- 45. Contact Charlie FrederickFor More Information:[email protected] (M)616.635.2920 (O)Growing Your Business In A Hyper-Competitive Market