It’s natural. We like to hear good things, not bad. We like to hear that someone knows and likes us. If they don’t, well maybe we’re not in such a hurry to hear those. But we should.
Having worked with many business leaders over the years I have seen this behavior all too often. When we help a client collect customer and market feedback, leaders want to be protected from hearing uncomfortable truths. In fact, more than once I’ve had business leaders ask us not to ask specific questions. More often than not, they are motivated by the fear that the data might not be positive. C’mon people, really? My typical response is to ask them consider if not asking a question makes the issue not exist? Just because you don’t ask is a customer is happy, can you infer that they are. Of course not. If you neglect to ask someone in your target market how aware they are of your brand does that mean they are keenly aware of it? Of course not. A difficult issue may or may not exist; you simply don’t know about it. You can’t then pursue changes and improvements.
As a leader I propose that you pursue a culture of openness. Knowing the truth (no matter how difficult to hear) is a much better approach/stance. Here’s where to look.
Customer Relationships
Is there anything more important than keeping your finger on the pulse of your customer relationships? I think not. And yet companies often avoid some of the most critical elements of those relationships. We’re fearful of what people will say.
Honestly it’s like any other human relationship. It may be on solid ground or not. And sometimes even if we suspect things are not quite healthy we’re afraid to ask. But it’s always better to know. Then we can deal with any problems or issues. We can pinpoint areas of particular importance to customers and perhaps where our performance is struggling. We can put a plan in place to make things better.
Yes, sometimes that means bringing the relationship to an end. For a business, this might be a customer or client that is not squarely in our target market and/or is not a profitable customer. It’s better to know that status of these relationships, so we can make intelligent, conscious decisions about next steps to take. Not knowing leaves us (blissfully, I guess) in the dark – which could be a costly lack of knowledge.
Brand Awareness
We like to think everyone (at least everyone that should) knows about us. News-flash! It may or may not be true. We live in a bubble sometimes. We are so engrossed in our own companies, so tied up in our day-to-day that it’s hard to imagine anyone NOT knowing about our great company that can bring so much value to our target customers. But, alas, it’s often true. And we need to know about that. Having accurate information about awareness (and perceptions) of our brand will help us adjust to assess our existing marketing and promotional strategies and budgets – and make changes accordingly. Not knowing? Well, we’ll just keep making assumptions that things are working and that everyone loves us. Do yourself a favor, research this all-important issue. Carefully identify your target market and ask them what they know of your brand and what opinions they have about it. Know if there’s a gap (and there almost always is) between what they know and perceive and what we’d like them to know and perceive. Implement changes to bridge that gap.
Financial Condition
It’s easy to let this one get away from you. As your day-to-day business operation gets busy, looking at the details of your financial results may fall by the wayside. After all, it feels like things are busy and money’s coming it. The problem? You may be running smack into a cash crunch. Be careful. As I’ve stated before on this blog, cash is truly king. I’ve seen cases where companies feel that things are going well. The company is growing, money is coming in the door, and new customers keep showing up. Sounds idyllic, huh And it can be. Or our seemingly positive financial condition can be deteriorating right under our noses.
How can that be? Providing products, services, and/or customer support to customers may be costing more than they are bringing in. Marketing, sales and other administrative costs may be growing too fast and squeezing our financial condition. Trust me. There are plenty of ways to run out of dollars when you feel like things are going well. It’s key to have reporting and measures in place that get to the heart of your true financial position – and watch them carefully.
Employee Relations
Every now and again we can just sense that something’s wrong when it comes to employees. Water cooler gossip. Disagreements. Rule-bending or breaking. Missed deadlines. Increasing turnover. Customer service quality drops. Product and service quality suffers. There are tons and tons of signs. An experienced exec can begin to sense these things. And sometimes we like to turn the other way and pretend (or hope?) that nothing’s wrong. We tell ourselves that we are reading too much into a situation. And since an unhappy employee team is just about the last thing we want, we try to ignore what we know in our gut is a problem.
Good leaders will tackle these issues head-on. In today’s competitive world you don’t have the luxury of ignoring employee issues. They typically get worse. As uncomfortable as it may be jumping on the issue proactively and understanding it is usually the best way to go.
Sometimes it’s hard to tell the difference between a big issue and a less consequential issue. But digging deeper into these concerns you will be able to understand them better and be able to know which category your issue(s) falls into. The one thing you can’t is ignore it and hope it doesn’t exist or that is goes away. Don’t fall into that trap. Proactively wade into areas where you suspect employees are struggling.
Competition
Is the competitive landscape in your industry shifting. Are new competitors popping? Are customers noting frustration with elements of your products or service that no longer meet their needs? Does your product/service mix feel stale? Have competitors caught up with you or begun to offer options and functionality that you simply don’t. Have the needs of the consumer changed? Make sure you remain on top of your competitive environment. Ignoring existing or potential challengers until it’s too late can leave you in a difficult position.
Products/Services
Finally, I wanted to highlight the issue of products and services and whether they are still meeting the needs of your target customers. If it’s been awhile since you launched your product/service line(s), step back and look at them. Don’t assume that they still serve the needs of customers as they always have. Don’t assume what you think are important functions are also important to customers or potential customers. Find out. Ask customers. (Duh!) Ask salespeople what they are hearing. Ask customer service people what they are hearing. and then do something about it.
Most likely your list will be longer than you want to or are able to tackle immediately. Nope. You can’t do everything at once. So prioritization is in order. Deal with those issues that are most critical. And along the way communicate with customers. Tell them what you are working on and why. Even (gasp!) let them help design, test, and redesign changes.
So what do you do about all of this. It’s a lot to think about. The key is to ensure that you have processes in place that measure the different aspects of your business in a clear, open, and honest way. You have to foster a culture of inquiry and openness within your company. Let everyone know that it’s better to know the truth than to ignore potentially significant issues that can and will pull your company down. You want to hear what’s truly going on. It’s always better to know the truth, so you can plan and manage important challenges that may (and WILL) come your way. The health of your company may depend on it.
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Being a business’s leader is never easy. I’d love to help you investigate what’s important, measure it, and design a plan to tackle any issues. Please feel free to reach out and get in touch and let’s explore how I can help you and your business succeed. No pressure. Just an informal discussion to explore some ideas. You can reach me at (713) 907-8429 or BCohen@IDiscoverConsulting.com.
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