Watch, Look and Listen – Keeping an eye on competitor activity

Business operators need to be business savvy. You need to know your competitors and keep up to date with what they’re doing.

If you have prior knowledge about future opportunities or potential threats you’re in a much stronger market position because you decide your next move.

But if you fail to monitor the market you risk being left behind in the maelstrom and, worse, losing your market share and then spending years trying to regain it.

Following what your competitors are doing is essential. You need to constantly be on the look-out for changes in strategies, new developments, expansions, new products/services and so on. Add everything to your competitor files.

A lot of information is freely available through:

§  Newspaper cuttings

§  Advertisements

§  Brochures and direct mail campaigns

§  Information you hear from customers about your competitors

§  “Gossip” in the market place

Regularly review your competitor files. The market research you carried out for your business plan was just the beginning of your competitor intelligence. You need to constantly build on it so that you gather enough information to try to determine anything different or interesting on which a competitor may have embarked.

If you know they’re about to launch something new, you’re then in a good position to do something about it.

The important thing is to avoid being surprised by new developments. If you keep your ear to the ground on what’s happening in the marketplace, you can potentially counteract possible threats to your trade, or act quickly on forthcoming opportunities.

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Strategies for Marketing Success

There’s a subtle difference between marketing and selling.

If you ask enough people to buy something, someone ultimately will – at the right price. That’s selling. But by essentially ‘flogging something off’ you are not setting yourself up for long-term success – you’re not offering any after sales service, continuity of product lines or product knowledge.

Marketing, on the other hand, forces the small business operator to read the market very carefully. It involves a whole range of activities – from producing products that meet people’s needs; to making those products available; to telling potential customers about them.

Marketing is concerned with everything involved in the transfer of goods and services to your customer. It’s about working smarter, not harder, as long as you put the right strategies in place. Your marketing plan will need to include strategies on how your business will:

Answer the customer’s need

You need to be able to analyse customers’ needs on an ongoing basis – what they want and why they would want your product or service. You have to be flexible to head in another direction if you perceive customers’ needs have changed. Being successful is about answering the customer’s needs.

Demonstrate benefits

It’s been said that people never buy the product – they only buy the emotional benefit that comes from it. You need to keep in mind that you are selling the benefits of the product and not the features. It’s really important then to identify what purchasing benefits the customer is looking for.

Promote your competitive advantage

What can you offer that none of your competitors do, even the bigger brands? Think of what will give your business a competitive edge.

Promote your business image

Name and image of your business are very important. It is imperative that when someone thinks of your industry, they think of you first. Market exposure is important; you have to be seen.

Keep focused on the goal

Develop a clear vision of where you want to be in your business and keep focused. Keep learning – about your customers’ needs, your products, your industry. Never give up!
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Systems for Business – Where are They Needed?

Imagine two businesses – one with excellent systems in place, the other with none.

Imagine the differences! A business with good systems conjures images of efficiency, success and effective teams, while a business without systems simply spells disaster –inefficiency, customer frustration and possibly even falling profits.

Successful businesses put in place written procedures for all activities of the business. They are the backbone of efficiency, but they’re also important for customer servicing.

Customers appreciate receiving the same excellent service every time they do business with you. That’s only possible when systems and procedures are in place to ensure consistency across the board. If it’s written down, each staff member can complete a task in the same way as the staff member before them.

Detail is important. Don’t overlook the importance of creating procedures for:

§  telephone calls – how staff answer; how long the phone can ring before being answered; whether the telephone has priority over visitors, etc

§  telephone messages – recorded or personal messaging; time limits for returning messages, etc

§  facsimile messages – header sheets; follow-up phone calls, etc

§  correspondence in

§  correspondence out

You want anyone new to your team to be able to pick up a procedure manual and know what to do. Training is still required for new people, of course, but a written procedure ensures there is only one way of doing the task.

You’ll also need procedures for:

§  ordering and receiving stock and stocktakes

§  balancing of cash registers and banking

§  meetings with staff, staff appraisals

§  gross profit reports on trading activities weekly

§  daily writing up of cash books/computerised records

§  checking of creditors’ invoices

§  authorising of creditors’ invoices for payments

§  payroll records

§  time worked records for staff

§  payment of wages

§  PAYE

§  ACC

§  income tax

The above pertains to most businesses, but each business is unique and will need its own particular systems and procedures in place. Start now to streamline your business.

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View Complaints as Motivators for Change

Let’s be upfront about mistakes – we all make them!

When running a business we put systems in place to try and avoid them, but no business is perfect.

Your mistakes can often result in customer complaints. In fact, you’ll get complaints even when you didn’t make a mistake. That’s the nature of being in business – you can’t please everyone all of the time.

The important thing is how you deal with those complaints. If you hide them under the carpet and pretend not to hear, you’re going to annoy your customers. And annoyed customers go out of their way to tell others about your poor service.

Instead, front up to complaints and do something about them. Customers are generally reasonable if they see something is being done at the highest level. 

Positive for Business

Try to always view complaints as positive feedback for the business. Every complaint could potentially change the way something is done for the better. It’s good to keep the business on its toes and be open to change.

A complaint procedure system would look something like this and could be adapted as appropriate:

§  Complaint form – staff would offer the form to any customer who wants to make a complaint

§  Receipt letter - customer receives this within 48 hours of making the complaint, advising the matter is being investigated and that results will be reported back by a certain date

§  Investigation - a staff member not involved in the original dispute investigates the situation to work out what happened, and makes a recommendation to move forward

§  Report letter - customer receives this from the owner or managing director, explaining the situation and advising what the business intends to do about it

§  Follow-up phone call - a call from the managing director would show the business is really taking the complaint seriously

By taking responsibility for your mistakes, you’re showing the world you are doing something about them. This way you earn a lot more respect from your customers.
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