The way to differentiate from your competitors is to quantify the top three answers they might provide you. For example, for on-time delivery, a quantification may be “we have a 99% on-time delivery while our competitor’s delivery time is only 90%.” Once the quantification is determined, then these reasons can be used to build your brand for essentially free.
Business Optimization – 80|20 Customer Gold Program TM
A methodical strategic development of a proactive customer service can yield large revenue growth from your existing customer base. The “80/20 Customer Gold Program TM” works. I have used it many times to increase revenue performance by 110% to 300%.
What is a typical response to close a conversation with a customer? “Thanks for the order and have a good day.” How many conversations, emails, invoices, or contact’s with customers, do you have in a month as a whole company? Most companies have hundreds or thousands of touch points.
Learn more in my book about Business Valuation Principles. Understand the 80/20 Customer Gold Program TM, and how it can help you increase your revenue performance. https://successbiznow.com/books/business-valuation-principles-by-dale-richards/
With the correct methodology, a company can build their brand significantly for very low cost.
How can you use the 80/20 principle to PROACTIVELY increase your revenue by 10% – 200%?
First, you must find out who the top 20% of the customers are. Take your customer sales data for the last two or three years and download this data to a spreadsheet. Once it is downloaded sort from highest revenue to lowest. (You should also look at customer by margin.) Add a column for cumulative percent on the side of the revenue sort. Sum each row until you reach 80% of the total revenue. Now you know the top customers.
If you complete this analysis over several years you can also discover top customers’ revenue and margin trends. It might be a surprise that some customers that were in the top a few ago may not even be on the list. This is an opportunity to visit them and discover why they left and invite them to return.
Once the top 20% or “80/20 Customer Gold Program”TM customers are determined then a methodical program can be designed to build relationships with key people within the organization. What company roles or positions would you want to build a relationship with? Chief Executive Officer (CEOs), executive officers, purchasing agent, accounts payable, project director, sales department, etc. Now strategically have a corresponding department person in your company build a relationship with them. How do you find out what these people like or enjoy? Meet or talk with them to get to know them better. This process will build a proactive vs. reactive customer relationship.
Amy Johnson, Skyline Scaffolding, Sacramento, California attended Dale’s Vistage Presentation and wants to conduct the 80/20 analysis to increase sales. The attendees learned key business concepts from Dale Richards’ presentation on Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically.
Learn more about Business Valuation Principles by Dale S Richards http://a.co/cVsYyNNhttp://successbiznow.com/books/business-valuation-principles-by-dale-richards/