Archives for November 2006

How many business owners or top managers can quickly articulate the competitive advantages that set their company apart from the competition?  In Jaynie L. Smith's experience as a consultant, not many!  In fact, in her research, only 2 out of 1,000 C.E.O.'s could do so.  Is it any wonder that so many manufacturers and retailers believe that consumers will only make purchases based on low prices?  Perhaps, this is why we have a fast “race to the bottom” on pricing and rapidly dwindling profit margins.  But this does not have to be the case.

“Creating Competitive Advantage” offers many powerful and practical strategies and exercises to help you to identify and articulate clear, compelling reasons why existing customers should continue to do business with you and why potential customers should choose you instead of your competitors.  In her workshops, the author asks owners and employees to come up with a list of competitive advantages that are:

Objective – not subjective

Quantifiable – not arbitrary

Are not already claimed by your competition

Are not cliches – always be specific!

So, for example – instead of saying, “We provide quality products,” say, “Last year, less than half of 1 percent of our customers returned one of our products.” (If your product is as good as you say, you won't have a lot of returns.  Quantify your results and the results that your customers report and then – let all your current and potential customers know about it – this becomes your competitive advantage.

The best possible summary of the book – and the reasons why you should run out to get and read this book – is listed on the cover jacket.  “The Five Fatal Flaws of Most Companies:”

1) They don't have a competitive advantage, but they think they do.

2) They have a competitive advantage but don't know what it is – so they lower prices instead.

3) They know what their competitive advantage is but neglect to tell clients about it.

4) They mistake “strengths” for competitive advantages.

5) They don't concentrate on competitive advantages when making strategic and operational decisions.

I really like this book.  The author goes to great length to detail specific results from some of the many companies she has worked with – the results are nothing less than spectacular and in many cases, it was the company's employees (front line staff) who identified the clear advantages.  Throughout the book, Jaynie Smith constantly stresses the need to use quantifiable research and specific benefits – that will matter to your customers.

Of course, if your company has a clear competitive advantage internal or external) your competitors will try to copy it.  So, you must be constantly searching for new clear-cut advantages to stay ahead of your competition – and be sure to tell your customers what you are offering and why it matters to them.  Don't make the 5 fatal flaws!

Once your company has defined their competitive advantage(s) be sure to tell everyone in your company what they are.  Train your staff around your competitive advantage – turn each employee into a first-rate salesperson.  When they believe in your advantage they will enthusiastically tell everyone “why they should do business with your firm rather than with somebody else.”

Any business who wants to learn how to compete rather than constantly lower prices needs to buy this book and put these strategies into practice – today!  Before your competitors do so.

The author maintains a very useful website with a Discover your competitive advantage” interactive worksheet.  Fill it out – the results are quite revealing.  Learn how much money you may be losing by not identifying and articulating your competitive advantage.

I would jump at the opportunity to have an afternoon conversation with the managing director and head of advertising / brand management at Citigroup Global Wealth Management.  Especially if I knew that his father wrote the original direct subscriber letters for Playboy Magazine – from the “bunny's perspective!”  How much would I pay for that opportunity?  A lot! 

However, all we have to pay is $18.95 (or less) to have that conversation with Steve Cone when we buy his book, “Steal These Ideas! Marketing Secrets That Will Make You a Star.”

Steve Cone is opinionated.  He knows what works and what doesn't – and he tells you why.  He writes in a very engaging, conversational style.  He speaks from personal experience – the campaigns that he has worked on; and from an historical perspective.  Some of his comments about “Tag lines” or slogans are very amusing: e.g. from JP Morgan Chase – “The Right Relationship is everything.” (Am I using a dating service?)

We live in an over-communicated society.  The first challenge for any business or service is to get noticed – and to create some excitement.  However, once you get noticed too many art directors sabotage your efforts – they use fonts that make it difficult to read (sans serif; white reverse type.)  Too many ads fail because they do not give the consumer a compelling call to action – the reason to STOP everything now and order the product or service.

Steve Cone writes extensively on how to develop an effective “Tag Line” for your business.  He neatly integrates this with “building your brand” and creating your “unique selling proposition.”  For Cone, marketing successfully is all about simple ideas brilliantly executed that reinforce your brand message.

Of special note is the chapter on creating effective brochures.  Six great suggestions:

1) Put a picture of a person on the brochure along with one-or-two-line highlights of the contents within.

2) Summarize the key takeaways of the brochure in bold and easy-to-read copy.

3) Tell readers what you want them to do – on every page.

4) Regularly use a question & answer format withing your brochures. (Great suggestion!)

5) Have a real contact name and return address prominently displayed.

6) Potential readers will make split-second decisions about whether to read or toss it.

And Chapter 12 – “The Three Most Important Customer Lessons You Will Ever Learn,” is priceless.  This chapter provides more wisdom, insight and practical tactics that most MBA programs!  The lessons are:

1) People renew the way they are acquired.  (Think about PBS renewal campaigns.)

2) The most critical time in a new customer's relationship with your business is the first week after her initial purchase. (Amen!)

3) Forget complicated clusters and demographics. (There are only 5 basic customer groups.)

This book is a quick read – and one that you will often return to for ideas and inspiration.  The premise is – there are no new ideas.  Learn how to adapt proven tactics to improve your company's marketing.  The secret is how well you execute these ideas!