Customer Jujitsu: Leveraging Customer Needs for Strategic Imperatives

28 10 2014

I am a New York Yankees fan and grew up with Mickey Mantle, Whitey Ford, and the incomparable Yogi Berra.  Now, many people think that Yogi is known for his Aflac commercials, yet many don’t recognize that he is the holder of the record for a player who won the most World Series (10) and who has the most hits (71).  Yogi is also famous for his statements of the obvious.  The one that strikes a business cord is depicted in the following diagram.  Yogi said, “if you see a fork in the road, take it!!”

If youi see a fork in the road
Another business person very conscious of the competitive environment sees what the competitor offers and chases after solutions to outdo the competition.   After all, if a company can outdo the competition on items such as features, benefits, and technology, wouldn’t that company achieve share gains?   Maybe, although features and benefits and even pricing by themselves will not necessarily win customers or their loyalty.Normally, a business executive sets strategies in one of three directions, or combinations of the three.  These degrees of freedom include: competitor, competencies of the company, and customers.    Unfortunately, many business people, especially those who are driven by sales, “pivot” or change direction so rapidly as if they are taking Yogi’s advice literally.    It is not always advantageous to do so.  A new technology based on what R&D has discovered may be immediately thought of as the way to certain riches.  Remember that the greatest inventions have created some of the largest companies with rewards reaped by the business and executives.

A third, however, thinks about the customer and satisfying his/her needs.  This is a customer intimate or customer focused philosophy and if done right is the essence  of customer Jujitsu.   It may not work all the time for various reasons, yet I believe that there is a higher probability of success in sustaining profitable revenue growth by leveraging the knowledge and preference of the customers.   You engender trust and build relationships and isn’t that the fundamental platform of good business?

Over time, in these newsletters and blogs we will cover various aspects of technology and competition and how we can grow profitable revenue through each of these elements separately or in combination.   It all starts with the customer, however, and we want to share some tools to understand the customers’ needs and drivers which can be leveraged for developing strategic initiatives as well as tactical plans.   We call this attribute, Customer Jujitsu, because you, the business person, can leverage the understanding of the customers to refine and augment your business strategy.  It seems simple but the tools and discipline needed are keys to success.

Here are some of the tools ranging from simple to more complex.

  1. Pulse surveys. Normally for the B2B market, these are simple questions asked of the customer on a regular basis to find out how things are going?   This is different from a sales call and the agenda is strictly to understand how well your company is doing in various areas to help the customer succeed.  It results in building better communications and trust.  If you ask enough customers, you can get a good perspective on how well your company is doing.
  2. Bounce back cards/online surveys/follow-up calls. These are effective in understanding a specific transaction.   Through the data you gather, you can discern trends and issues that might arise.   You might be able to notice a trend but generally this information is not used to set the strategic agenda for the company.  As we say, it is necessary information but not sufficient.
  3. Customer surveys via tools such as Survey Monkey. This is a great, simple on-line tool and very inexpensive (or free) to ask questions to customers on a sampled and regular basis.  There is a wide variety of questions that can be posed and the output can be graphically displayed.  If the surveys are performed, say quarterly, companies can see trends in certain areas.  Those negative trends can be corrected via functional or business strategies and those positive trends can be highlighted in marketing and business material.
  4. Mystery shopping. This can be performed for both business companies but normally performed for consumer oriented companies.   Either a third party or the marketing department performs mystery shopping, acting as a real customer in buying your products.  These mystery shoppers can “shop” your stores (online or brick and mortar), your customer service, and operations departments to find out problem areas vs. your own standards or vs. the competition.
  5. Customer Satisfaction Studies. This is probably the most complicated way to get information from customers and it takes time to set up the right questions as part of a continual program.  Yet the information obtained is very valuable.  If done correctly, the business person can get a feel for items that are IMPORTANT to a customer as well as how well the company has PERFORMED.  Those areas in which the company has performed well and are important to the customer can be leveraged as part of the company’s brand.  Those areas which are important to the customer yet performance has been lacking, form the basis of a strategic initiative for the company.

Having gathered the information is part of the equation as they say.  The information must be shared and discussed – particularly at the executive ranks – to see if there is something missing in your strategy, your development work, your distribution, customer service, training, price plans, logistics and similar items.   The ultimate goals are twofold:  First, and most importantly, to find out the temperature of the customer (i.e. customer satisfaction), and whether the customer will buy your products or services again and whether the customer will refer you to a colleague or business acquaintance (the ultimate question).  Second, if customer satisfaction isn’t where management believes it should be and the company is underperforming in areas important to the customer,  then management’s responsibility is to determine what is required to improve satisfaction – and the most cost-effective means of getting there.  This could include the development of new products, or process improvements and even the potential for partnerships, mergers or acquisitions.

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