Domino Theory's Marketing Blog

Reboot Your Business in 7 Steps

Posted by jon yoffie

Reboot. You know what it means. It means my g*ddam PC isn't working and I have to restart it losing all the work I haven't yet saved. Now I get to start all over from square one. The only good thing that comes from it is that now my PC is working again and I can get back to work.

I got to thinking about "reboot" not because my computer is acting up, though it does far more than it should, but because the term "reboot" is all over today's newspaper. It is being used to describe how DC Comics, publishers of Superman, Batman, and 50+ other comic book titles, is restarting all its story lines. The comic book company that invented superheroes with the creation of Superman and Batman in the 1930's (and for whom I worked for several years in the early 1990's) is resetting all of its 52 continuing series. They start anew today.

Ballsy or stupid? In my estimation, ballsy.

The reality is that the folks at DC Comics have seen their market dwindling. Interest in comic books, and particularly their comic books, is down. Licensing opportunities for new movies and products have decreased accordingly. Management had a decision to make, either write a plan based on a shrinking business or make a move sure to upset many of its existing customers and reboot with the goal of returning to growth.

When's the last time you looked at areas of your company that could use a reboot? Chances are that in the midst this Great Recession there are areas of your business that would benefit from a fresh start. Here are the 7 steps that will guide your process.

Let go. The old saying that you can't get to second base with your foot still on first is never more true than when you start this process. Are you willing to break from the present to build a path to a new future? Anything short of that and you're talking tweaks. Be clear on which path you're choosing.

Set clear objectives. Where will you be when you've succeeded in your reboot? How will you measure progress?

Share your vision. And accept input from all of your stakeholders. Seek out the naysayers and listen to their concerns. You need buy-in, even from those coming along reluctantly.

Expect pain. Things will get worse before they get better. Count on it. You can't fix your golf swing without your game going in the tank along the way and the same is true of your business. Be prepared for the turmoil that change will cause and don't let it stop your progress. This is a natural progression.

Tap your leaders. Let others in the organization help to make your case. Avoid making your reboot a top-down mandate by allowing for leaders at all levels of the organization to help drive it. Your rank and file are the people who will hear the concerns and fears of those who just don't like change. Empower them to coach and counsel. Create a feedback loop and make sure all voices are heard and responded to.

Set milestones. Change will come incrementally. Set measurable goals against time. Celebrate as you hit them. Continue to measure progress against your schedule. Share the success across the organization.

Don't back down. A reboot takes guts. Trust your instincts and see it through. You've written your plan and set your goals. Don't let hiccups or unforeseen problems along the way derail you. Stay focused on the final outcome. Once you hit the reboot key, there is no turning back.

Along the way, keep on eye on our old superhero friends at DC Comics. If you see them with more and better movies, TV shows, and other products and a general increased visibility, you'll know they stuck to their plan!

 

Tags: Communications, plan, Business, strategic, Honest, Smarter, Internal, Uncategorized

What's Your Customer Retention Plan?

Posted by jon yoffie

I'm a bit of wine geek. I think it comes from being a northern Californian and having been in or near wine country much of my life. Like my fellow wine geeks among you, I have my a list of wines and wineries that make up my favorites  and go-to wines, but I am always on the lookout for something new to try.

Dave, who runs the local wine shop knows this. There's not an occasion that I walk into his shop when he doesn't point out to me that a new vintage of one my favorites has arrived and he has set a few bottles aside. "Let me go grab them for you," he'll say, "and while you're waiting, have a taste of this new wine I just got in, you're going to love it!"

These simple techniques have made me a loyal and regular customer of Dave's. He has spent the time to understand what I like, he makes me feel important by setting aside wine, "just for me," and he knows I'm curious about new wines so he makes sure he has something around for me to try.

Dave knows that a regular customer like me will buy multiple bottles on many occasions making me a more valuable customer than a walk-in who buys one and perhaps never returns. He spends significant time and energy to make sure that the value and experience he offers me exceeds anything I would typically get if I were to walk into a shop where no one knows me. In return, Dave not only gets a repeat customer, but one who willfully sends friends and acquaintances to Dave's shop.

How are you working to retain your best customers? If you measure the total lifetime value of your best customers, you'll realize that a customer retention program should be a top priority.

A good customer retention program will have these elements:

  1. A customer database. By keeping track of your customers you'll learn their buying habits and needs and be better able to serve them pro-actively. You will also be able to measure their value to your company over time.

  2. Regular communication. No matter how good a customer you think they are, you should expect that your competition is courting them. Make sure you stay front and center. Use newsletters, e-mail, and phone calls to keep customers up to date on new products and services and to pro-actively address any problems. Where appropriate, in-person visits are even better. Make sure you solicit feedback to ensure your business is meeting expectations. Don't reach out only when you have something new to sell, make the success of their business a key piece of yours.

  3. Rewards for loyalty. Depending on your business, use frequent purchase programs and coupons for repeat customers. Explore discounts based on volume purchasing or other value-add services. Provide white papers or special research that will help your customer improve their business. Even a small gesture will make an impression and let your customers know that you will continue to work hard to earn their business.

  4. An acceptance that complaints are an opportunity to learn. Most customers will never complain - even if they are unhappy. View complaints as an opportunity to show your customers that you are committed to customer service. View complaints as an opportunity to improve your products and service.

  5. Barriers to exit. Making it difficult for your customers to leave can be a strong retention tool and can even enhance customer satisfaction provided your tactics are ethical and not sleazy. Use exit penalties in contracts, product upgrades, and customized solutions. However, be sure that you don't become callous with these tactics or you risk alienating your customers and scaring away new ones.

  6. Promotion materials that recognize your customers. Case studies, white papers and testimonials are a great way to highlight your customers. Let the spotlight shine on them. Not only will they appreciate the exposure you provide, but they will likely share it with potential new customers that would also benefit from your products and services.


Research shows that you will spend 5x more to acquire a new customer than you will to retain and satisfy an existing one. A 5% reduction in customer turnover can result in a 25%-125% increase in profits depending on the industry. The #1 reason customers change vendors is due to a perceived attitude of indifference on the part of the service provider.

While you're pondering how you will implement your customer retention plan, I think I'll run down to Dave's wine shop to see what goodies he has for me this week!


Tags: leads, Communications, plan, word-of-mouth, strategic, customers, advocates, Uncategorized

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