By focusing on a specific group of customers, business leaders can add to revenue and profits.
An nationally-known business strategist argues that this approach can focus an organization and build sales while reducing costs associated with the marketing effort.
“A $uper $weet $pot is not a niche. A $uper $weet $pot is a total concept designed to serve a specific group of customers with products or services that satisfy their requirements,” explains Robert Gordman, author of Secrets of the $uper $weet $pot: Building Sustained, Profitable Growth.
“Every element of a $uper $weet $pot, including the products or services the company sells, the hiring of employees, and creation of effective advertising, works together to create a total business model.," Gordman argues.
“The magic for a company happens when management builds its business around a $uper $weet $pot that offers the right merchandise or services, and it is not going heads up against direct competitors,” Gordman continues.
“The end result? A healthy company with loyal customers who will provide sustained, profitable growth for the future.”
In his book, Gordman details the techniques he has used as a business executive and consultant to help companies build $uper $weet $pots.
Foremost is the concept that management must leverage its company’s strengths to create a customer-relevant position in the marketplace.
For instance, if a retail company’s strength is selling upscale quality merchandise then its $uper $weet $pot should be built around that attribute. Or if a manufacturing company can provide low-cost mass production of parts it should build its $uper $weet $pot around that strength.
Whether starting a business from scratch or building up sales and profits in an existing company, management needs a strategic plan. Creating a strategic plan is not just for big businesses.
Even sole proprietors or the owners of businesses with just a handful of employees should take the time to put together a rational plan that will guide their decisions to sustained, profitable growth.
If everyone in the organization is making decisions using the same plan, more right decisions will be made the first time.
- Identifying a $uper $weet $pot built on the strengths of the company. Determine what the company does best and then do more of it. For instance, a manufacturer who is good at small production runs at a fair price could specialize in short runs of parts. A videographer who is very creative could make a name for himself as a producer of high-end video extravaganzas.
- Knowing who the company’s Core and Must-Have Customers are. Core Customers are a company’s most loyal customers, the ones who are willing to pay a fair price for products or services. Must-Have Customers are people who are very similar to the best customers, but they currently do business with the competition. It’s important to know the attributes of Core Customers so management can look for these same characteristics in Must-Have Customers
- Knowing how to keep customers satisfied so they remain loyal. Go beyond simply satisfying customers and create undying loyalty by understanding customers’ rules. When management knows what its customer want they are able to provide it and the customer will remain loyal to the company. And loyalty translates into increased sales and profits.
- Carefully select the right person for each position. A company needs people who have the skills and talents that support the company’s $uper $weet $pot. Must-Have Employees need to be a natural fit with the company’s strategy. If the strategy is based on great customer service, only hire people who personally believe the customer comes first. If the strategy revolves around lowest possible price, hire people who love to work efficiently.
- Communicating effectively with Core and Must-Have Customers. Increased sales don’t necessarily translate into increased profits. Management needs to analyze the effectiveness of the company’s communications and advertising, and determine whether the investment is giving an appropriate return. Efficient communications means the message customers want to hear is going to Core and Must-Have Customers, the people the company wants to do business with. Advertising that increases a company’s share of mind, but doesn’t produce measurable bottom-line results should be eliminated.
- Conducting a Must-Have Audit. Putting together a strategic plan isn’t something that is done just once. It’s a constantly evolving process, and the Must-Have Audit is designed to keep management’s insights fresh and the company always ahead of the competition. A yearly Must-Have Audit will show if the $uper $weet $pot is protecting the company against the competition, if products or services are keeping Core Customers satisfied and loyal and attracting Must-Have Customers, if the right employees have been hired for each position, and communications are effective at reaching Core and Must-Have Customers.
For more information, visit www.gordmangroup.com