With our economy improving, your customers should be buying more of what you sell. What, they’re not? Then this is an indicator that you may need to update your strategy – and quickly.
Two key warning signs of a weak strategy are flat or declining sales and poor gross margins. In other words, your customers are not your promoters and they are not willing to pay your prices. Often your product or service has become commoditized and your customers move to whoever has the cheapest prices.
If this is your situation, now is the time change your game plan. Your company’s marketing strategy is a key component to overall strategy, and that’s where your focus should be.
1. Review the classic four Ps of marketing: Product, Place, Price, and Promotion. Each P is an opportunity to differentiate your company. Can you fix your problems by focusing on a different P? Netflix lost many customers by changing Pricing. It recovered by offering more original programming – Product.
2. A second approach is to consider 4Es of marketing as Ogilvy and Mather defines them – Experience, Everyplace, Exchange, Evangelism. We are all experiencing a significant transformation in customer behavior. Our customers have more choices than ever before and they can real-time price compare. So your company should look for ways to stand out. The customer experience buying and using your product is a critical.
Your next step? You and your leadership team must meet on a regular schedule to talk and debate until you get it right for your company. Your strategy is not a once-a-year thing. It is an every day thing!
And the outcome? Customers will increase and your sales will flow. And your new problem will be keeping up with new business.
Contact me for help in changing your game plan.