Saturday, November 17, 2018

6 Steps To Providing Exceptional Customer Experiences

happy-customersFor decades, efforts to satisfy customers have been built around demographics – capitalizing on race, ethnicity, gender, income, and other attributes. Today, in this age of pervasive social media and two-way communication, the focus needs to get beyond demographics into personalities. Customer personalities define customer experience, and sets what they love, and what they hate.

Even businesses with highly specialized market segments will find it more effective and simpler to focus on who customers are as people, rather than the “what” of their demographic attributes. Customers today expect highly personalized and exceptional experiences to stay loyal and become advocates, rather than just conventionally “satisfied.” Satisfied is far from memorable.

The challenge for every entrepreneur and every business is to understand the pragmatics of identifying and reacting to what their customers love and what they hate. I found some excellent guidance on the specifics in the classic book, “What Customers Crave,” by Nicholas J. Webb. As a popular strategist in the areas of customer experience design and innovation, Webb knows.

He outlines six key steps in your journey from yesterday’s customer service to today’s required delivery of exceptional customer experiences:

  1. Define the whole customer experience versus service. Traditional customer service, focused on fixing bad transactions, is too little, too late. The total customer experience includes identifying with your company culture, the shopping experience, the customer-facing team and social media interaction, as well as resolution of any transaction glitches.

  2. Add the extra mile to make the experience exceptional. There is no one set of exceptional experiences that will work for all customers. That’s where you must know the personalities of your customers, to know what they love and what they hate. Ideally, you need to convince each customer that you have personalized the experience just for them.

  3. Display real customer value feedback versus value claims. Customers react poorly when they hear your value claims for them, and see more value to you (bottled water in your hotel room at a high price as a “convenience” to you). Customer value statements must come from customer feedback to other customers, rather than from your marketing.

  4. Build blended digital and non-digital experiences. Some businesses excel in customer-facing people, but have poor digital interfaces for feedback, shopping, or communication. Others have delivery silos, where one fragmented deficiency can override all other positives. Integrate and blend all elements of your customer experience.

  5. Train customer-facing team to collaborate with customers. Internal training and policies are not adequate to create great customer experiences. Employees must learn to develop relationships with real customers, and engage these customers to understand what each customer expects, and how to get customers to engage other customers.

  6. Assure exceptional commitment within your customer-facing team. Commitment means signing up willingly, showing up mentally, standing up for the customer, and never ever giving up. To get this, you need to find the best people for each role, give them the latitude to do their job, and reward them publicly and privately for achieving results.

Many business leaders still believe that exceptional experiences cost too much, and reduce profit margins and growth. In fact, just the opposite is true today, since more and more customers expect good feedback from others before they consider you, and decline to return if they don’t get a great first experience. The result is that an average business can spiral quickly into the ground.

If you are looking for a lasting competitive advantage, I recommend that you follow the steps outlined here to create experiences that your customers crave. It’s not only good for your business, but it will add meaning and joy to your customers, and will also enhance your personal satisfaction and well-being. That’s a win-win-win opportunity you can’t afford to miss.

Marty Zwilling

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Friday, November 16, 2018

5 Tips For Making Your Whole Team A Marketing Machine

marketing-teamAs the rate of change continues to increase in business and technology, the more I’m convinced that marketing is the primary key to success for a new venture. Yet I find that many technical founders don’t feel they need it at all, or at best point to one person on the team who is marketing. I believe the real challenge is make your whole team a marketing machine.

That doesn’t mean that everyone needs to participate in creating the typical marketing hype, or needs to face the press on a regular basis. It does mean that everyone on the team, from you the founder to your most introverted developer, needs to really understand and believe in the product and strategy, and when asked, doesn’t hesitate to be an advocate for you and the business.

For example, as a member of an angel investment group, I sometimes do some “due diligence” on promising startups looking for funding. A common part of this process is to visit with members of the team to check team dynamics, skill level, and commitment. Unfortunately, I often find team members who are not believers, or have a different view of the customer. The result is no deal.

Thus you need to understand how quickly anyone on your team can be the key to attracting a new set of customers, or the reason that critical partners, vendors, investors, or customers walk away. Fortunately, I’ve found that it isn’t really that hard to make every member of your team a marketer for your new venture, by focusing on the following priorities every day:

  1. Build a culture of trust, confidence, and pride in your business. This has to start with selecting the right partners, and hiring people who believe in you and your business. Too many founders, strapped for cash or time, make poor team selections, assuming they can fix the problem later. Your team is your business, and you can’t sell without them.

    Team members who feel they have a voice and a strategic role are happy and proud to be advocates for your business. You need them not only to close business, but also to keep internal productivity and motivation high, and to use their own social media and friends to spread the word. It helps to celebrate small wins, together and often.

  2. Encourage and require outside engagement and feedback. You set the tone when you schedule and hold regular “all-hands meetings” to provide updates on progress and recognize participation of others in outside events. It helps to provide everyone with business cards, a current copy of investor presentations, and strategy details.

    I find that startups who do this are much more likely to stay ahead of the game, by proactive innovation, keeping up with customer trends, and being viewed as a leader in their community. In this days of pervasive communication, this is powerful marketing.

  3. Facilitate participation in industry conferences and networking. Team members need your support in keeping up with peers outside the company, and related industry developments. Their relationships with industry experts and even competitors can be a key marketing boost to your brand and business, or a disaster if not done positively.

    Thus, when you participate in trade shows and conferences, staff the booth from development and other organizations, as well as marketing. Make sure all team members are included or considered for standards organizations and customer briefings, so they know what is going on and have opportunities for relationships with real customers.

  4. Provide cross-functional mentoring and coaching. I have found that even the most dedicated developer can benefit from a formal opportunity to talk to your key marketing guru, and vice versa. Everyone learns from these sessions, and your business will benefit from the input. Another approach is putting people on temporary assignments for growth.

    These sessions also facilitate career advancement, with a better understanding of the skills and experience required to move into marketing or finance. Everyone loves a no-risk approach to testing their ability to advance into new areas of the business.

  5. Recognize and reward “marketing” efforts and results. Team members who see others outside the marketing staff rewarded for their efforts will be motivated to participate. Opportunities include anyone bringing in a new customer, sharing the load in a social media campaign, or representing the company for a good social cause.

    All this doesn’t require a large increase in the marketing budget, since peer and public recognition by you is often more important than money. In addition, the opportunity to work on social and environmental causes of personal interest generates great loyalty.

The most effective teams are the ones who feel a common responsibility for the success of the business, and are willing to reach out and contribute to all elements of the business. This develops leaders at all levels, and these emergent leaders are not hesitant to take ownership when they see business growth opportunities, thus multiplying your impact and marketing.

Marty Zwilling

*** First published on CayenneConsulting on 11/05/2018 ***

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Wednesday, November 14, 2018

7 Skills Every Startup Team Needs To Get Things Done

getting-things-doneIsn’t it amazing that some people you know always seem to be working hard, but never seem to get anything done? As an entrepreneur, you need to avoid partnering with these people, or hiring them into your startup. The challenge is to find people who get things done, as well as work hard. LinkedIn profiles and resumes still focus too much on responsibilities rather than results.

The best entrepreneurs never confuse motion with results. It’s easy to find people in every organization rushing around from one meeting to the next, often working overtime to generate more work for themselves and other people, but rarely taking the action to close an issue or contract. We all need more people around us who make every motion mean something.

So how do you recognize those few people on your team who are getting things done, or even recognize ahead of time those who have that potential? Such people are different, but are not necessarily the smartest or the most skilled. But they do seem to have some common characteristics and approaches that you can look for:

  1. Possess street smarts, as well as skills and experience. People like this quickly figure out how businesses really work, and how to resolve the challenges in their business. They have a special ability to cut through the confusion, dodge any head-on collisions, and negotiate compromises leading to required actions and resolution.

  2. Able to avoid or navigate the politics of the organization. Understanding politics is not the same as being a politician, or using political clout. People who get things done don’t worry about building their own image, but they are politically astute enough find alternate routes around the political and power bastions.

  3. Recognize what it takes to get power leverage, but don’t blatantly use it. The key is to be open and listen to recommendations from those who have to be moved, and find a way to create win-win situations, rather than win-lose. They get things done by using their power to get recognition for key players, rather than for themselves.

  4. Maintain a laser focus on narrowing the scope, rather than expanding it. This means effective negotiating to eliminate sidetracks, combat opinions with facts, and finding the glass half-full, not half-empty. It requires being able to accurately assess the position of others, find some common ground, and snapping people back to reality.

  5. Able to negotiate agreements without committing to future paybacks. People who get things done are driven by an insatiable desire to make progress and help others. They are not looking to build a cache of favors or special attention, and are not willing to make deals that compromise the solutions and can come back to haunt them.

  6. See every problem as an opportunity to innovate, rather than a chance to fail. Obstacles are seen as innovative and creative challenges, not barriers. All the reasons something can’t be done are replaced by better ways to get it done, quicker and at less cost. Nothing is immutable, even the culture of the organization or the business.

  7. Able to balance the paradoxes of highly effective leaders. People who know how to get things done can be analytical as well as intuitive, aggressive or patient as required, and confident and humble at the same time. They instinctively know when and how to escalate issues to the right level, without stubbornly entrenching their position.

To get things done more effectively, people need to really think about each element of their work before they make a move. By culture and habit, many of us expect most of our daily work and personal activities to be pre-defined, and we just go through the paces (the way it’s always been done). We need to practice overt thinking about desired outcomes, to make them a reality.

If your desired outcome is to move up in the organization, or just to get more satisfaction from your daily efforts, now is the time focus on the attributes listed above, and emulate the people on your team who get things done. If you are the entrepreneur or executive in the organization, make sure you are the role model in execution and in hiring. That’s the only way to win in the long run.

Marty Zwilling

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Monday, November 12, 2018

5 Strategy Realities For Running Your Small Business

whiteboard-strategyAs an advisor and mentor for many startups and small business founders, following my initial career in big business, I realize that the key strategies to achieve success in small businesses are often different from those that make larger businesses successful. The primary difference is the amount of time you have to spend working in the business versus on the business.

Small business owners have to do both, and split their time carefully between the two. Big business executives have the luxury of spending all their time working on the business, while delegating the operational tasks to other people and processes already in place to handle these. Continuing to micromanage both as your business grows is the downfall of many entrepreneurs.

I found this challenge and others outlined well in a new book, “Running Your Small Business Like a Pro,” by Andrew Frazier, who also brings many years of working with big and small companies. He recommends some key techniques, learned by both of us the hard way, that every small business owner can and must deploy to achieve long-term sustainability and growth:

  1. Must be more creative and flexible to compete effectively. With a tiny organization, small businesses can make decisions quickly, allowing them to respond quickly to customer input and changes. Sharing the same space also facilitates creativity. Big companies become divided up into silos, and often fail to collaborate or communicate.

    For example, in the sales silo of my former organization, it was common to point to marketing or development as the source of a sales issue, but communication across to these organizations took forever, and agreeing on a common solution was difficult.

  2. Must learn to grow beyond initial traction and survival. As a small business owner and entrepreneur, you may relish the flexibility and the challenge of getting that first traction and customer recognition. But continued growth requires a focus on staffing, more collaboration, and formalizing processes to meet the rising transaction volume.

    I was recently an advisor to a very smart entrepreneur who insisted on getting personally involved in closing every sale, as well as every new feature development. The result was a growth plateau, as well as entrepreneur health and family balance challenges. He refused to begin working primarily on the business, rather than primarily in it.

  3. Small businesses need to create automated processes. A successful business has many components, including sales, marketing, finance, and operations, and these need automated interaction rules and leaders, so that you don’t have to the glue. If you find yourself getting calls at all hours on the same issues, the business is running you.

    One solution here is to hire help rather than helpers. Helpers do only what you tell them, whereas true help comes from people who know more than you in their specific area, such as sales or finance. You can delegate to them, and you learn from them over time.

  4. Find a coach who has a holistic view of all elements. Big companies are in a position to benefit from experts or consultants who focus on a given function. Small businesses, on the other hand, more often need advisors on the overall strategy, funding, and the integration of individual components. The solution here is more likely peers than experts.

    For example, there are several entrepreneur community networks, like EO and TiE, which offer education, mentorship, and peer networking for new business owners in the early growth stage of their business. Match your advisors with your business stage.

  5. Surround yourself with people with complementary skills. As a small business owner, you have a broad range of responsibilities, and none of us can be experts in all. Therefore, it important to find people who can fill in the gaps we have, perhaps in finance or marketing. In big business, you can use multiple people with more skill depth.

    Too many entrepreneurs I know tend to hire people like themselves, to provide the positive feedback they crave, but can’t help them fill in skill gaps. Of course, all of us need to continually be in learn mode, as the business world in changing around us.

Going forward, the economy and competition will continue to become more challenging for small business owners, and hopefully your small company will grow into the ranks of the larger successful ones. Thus the more you learn about and use the right strategies at every level, the better prepared you will be to rise above the crowd now, and in the future.

Marty Zwilling

*** First published on Inc.com on 10/29/2018 ***

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Sunday, November 11, 2018

Shortcuts For Simplifying How To Think, Act, and Lead

How-to-think-act-leadThe cost of entry to the entrepreneur lifestyle is at an all-time low, but the challenge of winning and success is at an all-time high. Anyone can build a new web site, or publish a smartphone app for a few thousand dollars, but getting market penetration requires a lot more. Customers have come to expect disruptive change, so yet another social network is not the way to get traction.

As an angel investor, I quickly look behind the idea or solution, to gauge the mindset and the leadership capabilities of the entrepreneur. That’s why the book, “The Leader’s Mindset: How to Win In The Age Of Disruption,” resonated strongly with me. It was written by Terence Mauri, who has worked extensively with Sir Richard Branson and the London Business School.

Mauri offers some practical, actionable advice for entrepreneurs who want to develop a leader’s mindset, on how to spread the right message to potential customers, as well as investors. He outlines three shortcuts for simplifying how we think, how we act, and ultimately how we lead, which I have paraphrased and amplified here:

  1. Expand your mindset to think better by a factor of ten. Most entrepreneurs think about how they can improve cost or usability by ten or twenty percent. When was the last time you set a challenge for your team that pushed all of you to deliver more than you thought was humanly possible? People who shape the future, like Steve Jobs, do this.

  2. Push your mindset to tackle the seemingly insurmountable. A bold mindset excels at speed, creativity, and decisive action. Entrepreneurs in this category are real risk takers, such as Elon Musk. He recommends imagining creative solutions to a problem to “cut through the noise and focus on the signal.” Take a hard look at SpaceX or HyperLoop.

  3. Develop a learn-fast mindset to seek the latest and the future. Those who proactively seek knowledge and learn fast build knowledge pools and tap into the wisdom of mentors and industry leaders to raise their game. For them, adapting and stretching their limits is the norm. They learn from their mistakes, and collaborate with well-connected people.

Leadership on ideas is a start, but entrepreneurial leadership requires the ability to deliver on the new reality as well. The best entrepreneurs relish the opportunity to overcome the personal and team obstacles that come with every team contemplating disruptive change, including the following:

  • Fear of failure, fear of the unknown, procrastination, and doubt. All these fears can cause flight-fight, freeze behaviors, or a hasty retreat from dreams, goals, and plans for disruptive change. Fear keeps your mindset locked in a state of helplessness and will stop you from reaching your goals.
  • Constrained by talent shortages and lack of commitment. A key requirement for every disruptive entrepreneur is to fuel the organization’s growth by attracting and nurturing the best and most committed talent. The best leaders find a team and every individual unique strength to do great work and make a difference beyond chasing profit.
  • Dragged down by excuses, inertia, and negative energy. A top priority of all entrepreneur leaders is to avoid falling victim to “somebody else’s problem (SEP).” Lack of accountability is a mindset that is diametrically opposed to the required leader’s mindset. Don’t let this contamination infect you, your team, or your disruptive venture.

Overall, the leader’s mindset begins with zero compromise on purpose. It demands that you believe in what you are doing from the heart, and that your contribution is essential to the future world you envision. This must be matched with the intellectual courage to change business models multiple times to remain viable, based on real-time feedback from the market.

Becoming an entrepreneur is easy, but winning is still tough. Do you have the leader’s mindset required to compete and win?

Marty Zwilling

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Saturday, November 10, 2018

Early Adopters Are Not Enough To Assure Your Success

crossing-the-chasmEvery technical entrepreneur is an early adopter of technology, so naturally they build things with people like themselves in mind. Unfortunately, for most solution markets, early adopters represent only 10 to 15 percent of the total opportunity, so it’s easy to get mislead on the real requirements of mainstream customers. Psychologists call this the confirmation bias. I call it failing by early adopters.

The good news is that early adopters are never reluctant to sign up as beta customers and will provide you early feedback on product quality. The bad news is that they are not a good test of basic usability and ease of operation, which are always a key to the much larger market of regular customers. Consider the long market acceptance struggle of digital wallets and home automation.

Listening too much to early adopters often leads to an expensive death spiral, since these users will request more and more features, more precise control of the technology, and more interoperability, all of which increase the complexity of the product, and decrease the usability for the average customer. The result is a bigger and bigger chasm to cross to your real market.

Many in the business world has heard of the old bestseller by Geoffrey A. Moore, “Crossing the Chasm,” but most entrepreneurs don’t realize how much it relates to them. In fact, it’s all about understanding the differences between early adopters and mainstream customers, and managing your own marketing and development efforts to cross this deadly chasm.

Here are the critical points that you must understand for optimal product management and marketing to maximize results from early adopters, as well as maximize your opportunity from the mainstream later adopters as well:

  1. Collect feedback across the total range of customers. Early adopters may be the most vocal, and easy to sign up, but your technology assessment panel must include customers from the early majority, late majority, and even technology laggards. These last three groups usually comprise up to 85 percent of your real market.

  2. Usability features are as important as function. Features you designed for non-technical users, including wizards for setup, dashboards for overview operation, and simple buttons for complex processes, will get little or no feedback from early adopters. They will request and be more vocal about technically tricky and elegant features.

  3. Eliminate interface complexity and clutter. Early adopters are not intimidated by dense user interfaces, with more options to control the technology, and the flexibility to do almost anything. Regular users like to see more white space, and are more impressed with the Amazon patented one-click-buy button, to complete a purchase in one click.

  4. Balance your focus on engineering elegance. Many technical entrepreneurs continue to “tune” the system, and add new parameters for users to worry about, simply because they can. At some point, this becomes compulsive engineering, and the tradeoffs in time to market, cost, and user friendliness move the product out of the intended market.

  5. Early adopters are cool, so you need them to kick-start word-of-mouth. You certainly can’t afford to ignore early adopters, or antagonize them. They are your early opinion leaders, so they are required to build the image that the rest will follow. The challenge is to attract them with an innovative solution built on great technology, while still keeping it usable, timely, and cost effective for the rest of us.

Early adopters are a critical but small market segment that must be treated with respect. They can be your best evangelists or your biggest critics at that critical point when you are crossing the chasm to the larger mainstream customer segment.

But don’t ever be become complacent due to excitement and passion from your early adopters. You still need the same reaction from your other market segments, and an appropriate marketing strategy for scaling the business into other segments. Ten percent of even a large opportunity can still leave you in the valley of death, rather than the pinnacle of success.

Marty Zwilling

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Friday, November 9, 2018

8 Keys To Market Delivery Of Innovative Technologies

Samsung-virtual-reality-innovationSince I am a techie at heart, I always get excited when founders pitch their new innovation as “disruptive,” meaning that it is so unique that it will create a new market and disrupt the existing value network, displacing established products and markets. Unfortunately, I have learned that investors and customers are wary that big changes will take a long time, and cost more money.

Therefore I always recommend to entrepreneurs that they use the term cautiously, but I never discourage their focus on disruptive innovation. In fact, in the greater scheme of things, it’s the best way to gain a real competitive advantage, and maximize economic value. Linear thinking is a good way get started as an entrepreneur, but paradigm shifts are the route to a big legacy.

As examples, everyone should be able to relate to Steve Jobs with the iPhone, Mark Zuckerberg with Facebook, and Elon Musk with Tesla. These didn’t happen by following the conventional paths of entrepreneurism. In my experience, you need to follow some best-of-breed guidelines that will keep you ahead of the crowd, and improve your odds of success in making the big step:

  1. Focus first on solving a real customer problem. Business success always relates to how effectively you satisfy customer needs. Big technology breakthroughs don’t always correlate directly to the mind of customers, so your challenge is the translation. Investors and customers want to see how these become a positive value proposition for all parties.

  2. Take advantage of big data and modern design tools. Passion is a good start, but there is no substitute these days for real data and powerful tools to confirm the value and quality of specific features and customer trends. Your goal is to minimize the delivery cycle, and reduce the number of pivots required to find the sweet spot of your market.

  3. Find a way to highlight elements of social responsibility. New markets are often found as a result of culture changes, new economic realities, and emerging geographies. People want to help build a sustainable environment, and improve the well-being of others. Make that a way to bridge a big technology change to customers and employees.

  4. Assemble a team willing to think and act outside the box. A new technology usually needs a business model that is also a paradigm shift. Make sure your whole team is willing to take risks and explore new options on pricing, marketing, and manufacturing. Your challenge is to provide the visionary leadership to stay ahead of the pack.

  5. Exploit disruptive opportunities all along the value chain. Key elements of the value chain include distribution, suppliers, sales channels, and reliance on coopetition. New technologies often allow innovative marketplace entrants to eliminate whole stages of the value chain, for example dramatically reducing capital and infrastructure costs.

  6. Continually expand your team competency into new areas. Nokia had a deep competency in cell phone technology, and owned a major share of the market, but they were slow to expand into the software and accessories of smartphones. As a result, Apple was able to leapfrog their lead, and Nokia was never able to recover.

  7. Plan on disrupting yourself before competitors do. Cash cows can be your downfall in this rapidly changing world. You need to constantly attack your own existing business model, and plan to replace it before customers start looking at better alternatives, and competitors leapfrog your solutions. It’s hard to recover from a hemorrhaging business.

  8. Look around the corner for the next real breakthrough. A single disruptive technology is not enough to assure your long-term success. You need visionary leadership, as well as a culture and process for finding the next big step, recruiting the people, incenting them, and training them to make it happen.

Linear non-disruptive thinking may be the way to get started as an entrepreneur, but it won’t get you the big success or the legacy that you crave. Your challenge is to think big, communicate effectively to avoid scaring customers and investors, and follow the best of breed guidelines to deliver on a timely and ongoing basis. It’s a lot more fun than a random walk based on a dream.

Marty Zwilling

*** First published on CayenneConsulting on 10/25/2018 ***

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