August 30, 2019 /
Comments Off on How Uber Eats almost destroyed a small business

How Uber Eats almost destroyed a small business

We have to be careful of the shiny new toy.

My local cafe has started doing Uber Eats deliveries.

Good for them!

Well….. not so fast.

The wait times jumped to 20 minutes and then 40 minutes.

My big cycling group worth $600-$700 per month has slowly moved to another cafe (despite many second chances).

We are (were) loyal for a number of reasons.

There’s a certain vista we were used to. There’s the food. There’s the way the the Norfolk Pine tree casts shade in summer mornings. There’s the familiarity of where we sit.

People buying online have less reason to be loyal. The emotion tugs are absent, and the business can evaporate.

All it takes is one change to an Uber Eats algorithm and it’s gone. What do you do? The shiny new object is so tempting?

The problem is that the cafe isn’t clear on its purpose. As consumers, we can feel that they are only there to squeeze money out of it. Profit is a result and consumers see straight through it.

The last section of this video explains how a small business can use purpose to inform them of what to do. Chase Uber Eats? Chase loyal customers? Or both?

July 12, 2019 /
Comments Off on Reading the customer’s mind, when they can’t

Reading the customer’s mind, when they can’t

If the customer doesn’t know why they made a decision, how are you supposed to help them make it?

There are three factors at play:

1) the rational brain (which isn’t really used that much)

2) emotional drivers (moods and feelings)

3) contextual drivers (we aren’t always the same person).

So how are we supposed to be empathetic? Somehow cruising down the Amalfi coast with gold chain dangling is relevant. The trick – don’t judge others based on your current contextual situation.

May 10, 2019 /
Comments Off on The purpose of surveys is not to measure service

The purpose of surveys is not to measure service

What’s the purpose of customer surveys?

If you think it’s to measure customer service you may want to re-consider.

Surveys measure what the customer thinks they thought.

Those thoughts can be wrong, and more importantly, they don’t measure what makes you money.

Customers are so easily swayed by a nice employee and nice environment. They may even be loyal to your product and give you unadulterated high scores.
But…..

  1. Was the promotion on display?
  2. Did the staff member go through a needs analysis?
  3. Did the staff member physically put the product in the customer’s hand?
  4. Did the staff member try to close a sale?
  5. Did the staff member try to up-sell?
  6. Did the staff member mention the loyalty program?
  7. Did the staff member take the customer’s details?
  8. Did the staff member follow up after the enquiry? (e.g. in car dealerships)

All these points are core drivers of profit and INVISIBLE to the customer. You will surely have your own list of profitable events in your company which are invisible to the customer, yet they’ll give you rave reviews even if you don’t do the activities.

April 23, 2019 /
Comments Off on 6 steps to move from price selling to brand selling

6 steps to move from price selling to brand selling

Chinese shoppers are renowned for their price sensitivity and intense negotiations. I spend a lot of time there, yet I’m constantly surprised at the pace of change.

Big changes are afoot. Consumer behaviour have caught up to the West in a matter of years and blown past us.

There has been an explosion of brand and luxury shopping in the past few years to coincide with the massive growth of electronic commerce. .

We’ve all seen the playbook. 

Price Value And Brand

Much maligned telecommunications manufacturer Huawei is the latest example. In recent years they have surpassed Ericsson and Nokia to become the world’s biggest telecom equipment supplier. Their phones have gone from the cheapest to compete with Apple and Samsung.

Consumerism starts with price, then moves to value and then brand. But selling value and brand are not as easy as it sounds.

Competing on price is simple (if you get the production right). Bang out a product and just suck in the small margins. But as you move along the value chain, different things happen.

  1. You need to stand out (this will happen automatically if you are selling on price)
  2. You need to be marketing (also not so tough when you sell on price)
  3. You need to be clear about the ‘value’ (value is defined around price when you are the cheapest)
  4. You need to be clear about the service (this is where it falls apart when you sell on price)
  5. You need to be clear about your positioning (when selling on price, you have an easily replicated position).
  6. You need to be clear about your purpose

Selling on price gets you as far as the third step. If you want to move away from price then you will fail at step 1, because you no longer stand out.

Each of these “needs” require a cohesive strategy, but where do you start?

So reverse the order

Start with Purpose and move back up the list. That’s right, start at the end.

Standing out will be an outcome, not a strategy.

When you are selling on price, purpose seems as far from reality one can imagine, but it will become your North Star.

  1. Purpose – be clear on your organisation’s purpose in this world (e.g. Google – make the world’s information freely available to all)
  2. Be clear about the positioning – How do you position the company in the customer’s mind around your purpose.
  3. Service proposition – How we will we execute our positioning around our purpose.
  4. Value – What value will we provide within the service around our positioning around our purpose.
  5. Marketing – How will we promote the value within the service around our positioning around our purpose.
  6. Stand out – This becomes an outcome rather than a step in the process.

The Chinese are moving from (cheap) price strategies to brand, as are the consumers. You should too, because your consumers probably have already moved.

#purpose #strategy #why

January 25, 2017 /
Comments Off on The difference between Mission and Vision

The difference between Mission and Vision

The difference between Mission and Purpose summarised in 1 minute.

Mission is a focusing statement about how the organisation operates now and into the future.

Purpose is a timeless statement of ‘why’ the organisation exists.