Building Better Relationships with Your Customers

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StrategyDriven Customer Relationship Management Article |Customer Relationships|Building Better Relationships with Your CustomersIn the modern world, relationships are more important but more complicated than ever. Social media means that we form relationships with people that we’ve never met. It means that we feel connected to our favourite celebrities and brands, even without contact. Communication is available in many different forms, and it’s easier than ever before to get in touch with people.

But it is fast-moving. Our social media feeds are changing at lightning speed, our email inboxes are filling up daily, and even though it’s easier than ever to send a message, it’s often harder to convey meaning without face to face contact and easier to be overwhelmed and miss things entirely. It’s easier than ever to talk, but it’s also easier to be misunderstood and harder to hear.

This can make it very hard for businesses. Today’s consumers expect relationships with the people that they shop with. They don’t just want to be able to make an easy purchase. They want communication, relationships, advice and responses. They want to be able to ask a question at any time of day and get an immediate reply.

For a smaller business without a large team to help, this can prove tricky. You might be wondering How Connected Are You As A Business? In this modern world connectivity is everything, and building relationships with your customers is more important than ever. Here are some ways that you can begin to improve these relationships.

Make Sure It Is Easy For Them to Get In Touch

Everyone uses social media to communicate today, right? Well, actually no. If your target market is primary people in their teens and twenties, they might, but even then, chances are they are using newer platforms like TikTok instead of good old Facebook. If your customers are older, they might still prefer to speak to you over the phone. Every now and then you may even receive a letter.

It’s impossible to know how people prefer to communicate. You can do your research, but even within demographics, the results can vary wildly. The best thing that you can do is give people options. Make sure contact details like your phone number, email, address and social media channels are clearly displayed on your website, but also in any offline marketing materials and on invoices. A simple contact form online can also be hugely effective. Make it as easy as possible by giving your customers options, and make sure you respond to all types of communication, not just those that you prefer to use.

Always Follow-Up

Follow-ups are important. Generally, customers won’t get in touch if there’s a problem, and they are even less likely to get in touch if they are happy with products or services. They walk away from your store, or checkout online and you never hear from them again.

Have a business policy to follow up sales, enquiries and other communications within a certain time. This can just be a quick email or call to make sure everything is going well and to ask if there’s anything that you can help with. This not only boosts relationships, but it also gives you a perfect opportunity to ask for feedback and a chance to make further sales.

Make Customer Service a Priority

Customer service is the most crucial ingredient when it comes to building positive relationships with your customers. It should be something that you insist upon from your staff, and that you spend time training in. Go the extra mile for customers when you can, greet them warmly in-store and take the time to get to know them. Customers should always leave your store happy, with something positive to take away, even if they don’t make a purchase.

Online, customer service is just as important. An easy to use website, fast transactions, easy to find information and clear policies go a long way. Clear communication, fast replies, and a personal touch, with a handwritten note with purchases, or a personal thank you online can also help.

Value Honesty Above All Else

Honesty is so essential when it comes to building relationships and offering excellent customer service. If something is wrong, or a delivery is going to be late; If you can’t deliver the product or service that has been ordered, or changes need to be made, you need to be honest about it.

It can be tempting to hide away when something is wrong, out of fear of letting people down, or conflict. But, most of the time, people would much rather know the truth, and they’ll respect you more for being honest with them. You are more likely to damage future relationships by lying, or not saying anything at all. As soon as you know that there’s a problem, think of ways to make it better, get in touch with your customers and offer them some alternative options. Being proactive like this can even turn a negative into a positive.

Be Realistic

Being realistic is a big part of being honest. You should always aim to under-promise and over-deliver. It’s much better than the other way around. Don’t promise to deliver the next day if it’s not feasible. Don’t offer great deals if you can’t keep it up. Give your customers realistic expectations and set yourself realistic goals, and it will be easier to keep everyone happy.

Ask for Feedback

You can’t keep everyone happy all of the time. Your customers won’t always want the same from you, and you would drive yourself mad, trying to give absolutely everyone what they want. But, knowing what they want is a great start. Ask them. Ask your customers what you are doing well, what you could improve, how they feel about your relationship, how they like to communicate and other basic questions. You can do this on social media, with an email survey, with poles and even face to face.

Appreciate Them

Asking them for feedback is a great way to make them feel valued and appreciated. Another is simply saying thank you. Loyalty schemes can be another way to boost relationships and acknowledge loyalty.

3 Consumer Trends on the Rise in 2020

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StrategyDrivenConsumers can be picky, but there are some trends from years past that are still on the rise in 2020. While there are plenty to choose from, the three on this list are seeing big profits that don’t look like they’ll be on the decline anytime soon. So check out these three products that are likely to be everywhere this year.

CBD Products

The cannabis market has become a big industry. Now that CBD has been reclassified as a Schedule 5 drug, it’s legal to sell it to consumers and can most commonly be found in a health food or e-cigarette store. This development came after CBD as revealed to have properties that stopped seizures associated with Epilepsy. Now, it’s used to treat many different things, from muscle aches to anxiety. Due to its versatility, CBD is estimated to bring in $20 billion in profits by 2024.

Plant-Based Meat Alternatives 

Meatless protein options are gaining in popularity, and not just with people who identify as vegetarian. In fact, only 7% of people who consume meat alternatives say they’re vegetarians. The biggest shift in the alternative protein market was the switch from a need-based market to a want-based market. More people want protein options so they can cut back on eating meat, even just a few days per week. This shift may have come as a result of a more eco-minded consumer trend that’s predicted to increase in the coming decade.

Wireless Speakers

Portable speakers have been popular since they came on the scene in the 1980s, so it’s no surprise that Bluetooth and other wireless speaker types are on the rise. This industry is estimated to generate close to $32 billion by 2023. The success of Bluetooth speakers can also be attributed to their affordability. These powerful little devices start around $10 each, making them a great purchase for holiday gift exchanges at the office or tokens of appreciation. On the other hand, audiophiles can purchase high-quality portable speakers, too, offering a broad market for the product.

Predicting Consumer Trends

There is no such thing as a sure thing, but if you watch the trends, you can try to foresee how consumers will behave in the coming year. Doing so helps companies and individuals decide where to place their investments. Of course, there are a lot of consumer trends out there, so do your research on a product before making a purchase.

The 6 Biggest Time Wasters in Every Business: What’s Holding You Back From Reaching Success?

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StrategyDriven Managing Your Business Article |Biggest Time Wasters|The 6 Biggest Time Wasters in Every Business: What's Holding You Back From Reaching Success?Entrepreneurs have to make every moment count if they hope to succeed in the world of business. Building a new company from the ground up can be exciting, but it also frequently proves to be an all-consuming task.

Waste even a bit too much time while leading a young company and crucial duties can end up being neglected. Find ways of addressing the following six common issues and you will have more time to focus on the business-related details that matter the most.

1. Bookkeeping and Accounting

Every business needs to maintain accurate books and have access to informative accounting reports and insightful analysis. Unfortunately, many small-business owners end up wasting time trying to stay on top of related duties that they are not well-equipped to handle.

Accounting Firms are inevitably better-positioned than entrepreneurs to take charge of these all-important financial activities. Because they are much more efficient than part-timers, professional bookkeepers and accountants tend to offer highly cost-effective services.

Not needing to worry about issues like payroll, accounts payable, and tax preparation will allow a business owner to adopt a more commanding, supportive style of leadership. Even when hiring full-time accounting help cannot be justified, on-demand assistance is always available.

2. Email

Hundreds of billions of emails are sent every day, but many of them have relatively little to say. Many a modern entrepreneur starts each working day by spending an hour or even more filtering through a packed inbox.

While there will always some emails that need to be read carefully, thought about, and acknowledged, these tend to be fairly rare. Small-business owners who learn to quickly assess whether given messages merit much attention will free up time for more important activities.

3. Overly Demanding Customers

Many entrepreneurs subscribe, at least superficially, to the idea that the “customer is always right.” A focus on customer satisfaction, in fact, is a valuable asset for almost every kind of business.

Some customers, though, are simply too demanding and unreasonable to be worth devoting time to at all. Entrepreneurs who learn to identify and deal with difficult customers effectively will spare themselves many headaches in addition to saving time.

4. Micromanagement

Hiring a first employee or even adding to a growing team is often a sign that a business is on the right track. Becoming an effective, efficient manager, though, does not always come naturally to entrepreneurs.

One problem many small-business owners face is a compelling need to exert too much control. Try to specify and direct employees’ activities too precisely and time will inevitably be wasted.

In fact, workers who struggle under the burden of micromanagement tend to be less productive, creating a twofold cost. Entrepreneurs who learn to give their employees some breathing room will have more time to spare and become better leaders, as well.

5. Vendor Churn

It always takes time and effort to find a new supplier or other type of partner. Become too quick to switch to a new vendor at the slightest sign of trouble and the wasted time will add up. Business owners should never feel that their vendors are holding them hostage, but accepting an occasional, honest mistake is normally the best policy.

6. Meetings

Some large companies have become infamous for making unproductive meetings central parts of the workweek. Unfortunately, even a fair number of relatively small businesses fall into this trap, often with ostensibly good intentions. Meetings can be useful but should always be designed to repay the investment of time required to hold them.

A Proven Way to Build a More Successful Business

Many small companies end up being held back because of time being wasted by the owner. Avoid the six especially common time-wasters above and you will have a better chance of leading your own business to success.

How Close Are We to Developing Plant-Based Meat?

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StrategyDriven Editorial Perspective Article |Plant-Based Meat|How Close Are We to Developing Plant-Based Meat?Eating plant-based meat isn’t just about being vegan. If you take the visitor and exhibitor data from Global Table, it will show a diverse set of tastes for each group. Health and food variety play a big role in the rise of plant-based meat. But is it here to stay? And how far along is the food industry with producing a suitable replacement?

It’s Already Here

Several companies have gone headfirst into the plant-based meat industry. This isn’t a flash in the pan, and led to a strong showing in new food innovations. The rush to create the perfect product happened around the same time that being healthy became profitable. Instead of making something that only appeals to a specific group of people, companies realized that plant-based meat can be an addition, or an actual replacement to real meat. There is still a long way to go in finding the right balance between healthy and tasty. While consumers are breaking down doors to get the Impossible Whopper, it is still considered a small minority (and star) of the entire plant-based meat industry. The B2B media campaign by PPR&C highlights some of the best features of pushing plant-based meat. Get to know more about plant protein and its benefits.

Branding Is Everything

The Impossible Whopper had a great marketing push due to its whopper roots. It already started on third base, while every other plant-based meat product had to start on first. This is the biggest challenge in the food industry for any non-established brand that wants to leave their mark.

Grocery store brands that have been selling plant-based meat products for years. After fighting for shelf space with meat products, brands began to be displayed side by side with their meat-based competitors. That made a big difference in certain areas where marketing a plant-based meat product doesn’t really stand out. Now, when you shop for meat, plant-based meat products are displayed in the same row. For the normal shopper mentality, this makes the difference between a buy or a pass. Without a large social media or marketing push, it is easy to miss some of the better choices in a store isle.

Pricing

Global leaders in the industry understand that pricing is the biggest roadblock to the mass acceptance of plant-based meat products. Healthy food has always been more expensive than regular food. When fast food chains add plant-based meat to their menu, it doesn’t suffer from a price hike. This makes it an attractive option to have with a diet soda. When shoppers go into a store or online website to find a similar fix, they are met with inconsistent pricing. This is confusing, but there are several reasons for this.

Plant-based meat brands uses natural, high quality ingredients. It is no different than the price hike issued on organic vegetables and produce. The other reason has to do with store placement, which once again, requires smart placement with regular meat. Companies that spend more for natural ingredients don’t get a discount on shelving space, so the price is sometimes passed onto the consumer.

Pricing woes can be avoided by buying from a plant-based meat website, or getting on a compatible food subscription plan. The awareness raised by the Global Table event touched on some of these issues, and offered some great alternative selling methods for new and existing companies.

Wrap Up

This is the best time to try plant-based meat and similar products. They work well together, and should fit the palate of a casual eater or hardcore foodie. Look past the normal options if you want to try something a little bit different, yet familiar.

Today’s Battle for Data – in the Wind and the Cloud

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StrategyDriven Organizational Performance Measures Article | Today’s Battle for Data - in the Wind and the Cloud | Big DataData is the new currency and often the point of strategic control in many industries. Companies are attempting to control data in order to monetize what the data can do for them. Take this example from windmill technology as an illustration:

Windmill technology has dramatically improved over the past few decades. For example, GE has developed blades and rotors that sense the wind direction and adjust a windmill’s tilt/shift in order to optimize its ability to catch the wind. In addition, many windmill “farms” optimize the way they work together since one windmill’s direction and tilt affects the downwind performance of all other windmills. Because a group of windmills operating together is more efficient than individual windmills operating separately, when one windmill fails, the efficiency of the entire farm can be adversely affected.

Industry leaders, including GE and Siemens, have developed their own optimization and monitoring services that use the data coming off the windmills to remotely monitor performance and proactively do repairs to maximize windmill uptime. However, the market for windmills is fragmented with a few large players and a series of smaller players — many of whom are lower-cost manufacturers from Asia and don’t have the scale and/or capabilities to develop and maintain such services.

In response to GE and Siemens’ control of this space, a few ingenious companies are in the process of installing – for free – sensors in both new and existing windmills. These sensors monitor motor vibration and temperature so that they can predict motor failure before it happens. The data are broadcast to the cloud in real time and predictive failure analytics are conducted on the data. Once a motor’s spec goes out of tolerance zones, a team is dispatched to repair the motor before it fails – not only to maximize the “up time” of the windmill, but also to provide peak efficiency for the entire farm.

This enables the smaller players to compete effectively with the larger firms. For example, for smaller Chinese manufacturers trying to compete with GE and Siemens, being able to provide this service is often the difference between making the sale and losing it.

So, how do you make money installing sensors for free? The key is owning exclusive access to the data generated via the sensors and leveraging it by selling higher-margin maintenance contracts back to windmill manufacturers (for newly built windmills) and to farm owners (for retrofitted, existing windmills).

The smaller players are more than willing to allow the sensors to be installed to grant access to the data and pay for higher margin maintenance since they can’t efficiently do this themselves (due to their size and scale). Meanwhile, they gain the ability to compete with the GE and Siemens of the world on services while simultaneously maintaining their cost advantages. In addition, they can eliminate downtime risk via offloading this to its sensor supplier. Therefore, it’s a win-win arrangement for both parties.

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Indeed, this is the modern-day equivalent of the “give away the razor and sell the razor blade” story. Today, the razor equivalent (the sensors) is only of value because of the system’s necessity to interoperate and the ability to monitor it remotely via the cloud and predict failure before it happens. In today’s world, it’s often beneficial to give away the hardware but own the data.

As you design a way to monetize your data-collection system, keep these key principals in mind:

  1. Benefit.The offering needs to provide a clear benefit to both you and your customer.
  2. Incentive.The giving away of the hardware to access the data can’t be for the purpose of simply selling the data to a third party. Rather, access to the data has to enable you to provide better service at a higher price point than rivals. Your unique access to the data makes it so that your customers want to buy from you since, even at a higher price point, you save them money, time and/or resources.
  3. Don’t negotiate the “back end” on the “front end.”In the windmill example, had sensor manufacturers attempted to require maintenance contracts before installing the sensors, they’d likely have received substantial pushback for anything that cost them more. However, once the sensors were in place, the added benefit or performance-based maintenance was clear.

About the Author

StrategyDriven Expert Contributor | Dr. William PutsisDr. William Putsis is a Professor of Marketing, Economics and Business Strategy at the University of North Carolina-Chapel Hill, and a Faculty Fellow for Executive Programs at Yale University. He is also president and CEO of Chestnut Hill Associates, a strategy consulting firm, and founder of the software company, CADEO Economics, which automates his data modeling-based strategy development processes. His new book is The Carrot and the Stick: Leveraging Strategic Control for Growth (Rotman-UTP Publishing, Feb. 3, 2020). Learn more at www.putsis.com or www.chestnuthillconsulting.com.