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Let Customers Shape Profitable Products

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1. Forward
2. In the News
   1. Share of Customer Builds Stronger Companies
   2. Use Outside Influences to Shape Your Products
   3. Where Wealth Builders Go For Customers
3. Strategic Relations Tip for Today
   Discuss Project Challenges in Periodic Meetings
4. Shameless Self Promotion

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Forward

In this issue, you will learn about selecting the right customers, focus on relationship growth, and develop products they desire. It is not enough to have products to offer, but you must have customer buy at a profit.

No company can read minds, if you want to serve your customers needs, you will need to hunt out these buyers and ask them what they want. This is why I ask you, what limiting your ability to meet key business objectives?

Let me know what challenges you face in business, and get a special report, plus I will use your comments to shape the content of this newsletter. Just reply to this newsletter and include the word "feedback" in the subject.

Sincerely,

Justin Hitt
Strategic Relations Consultant, Author & Speaker
https://iunctura.com/

In the News

Share of Customer Builds Stronger Companies

When you understand your customer, you can develop products they will buy, instead of developing products you think they need. In this strategy of customer share marketing you create a customer relationship first, then create product that solves the problems they face.

In traditional business, often a company develops a product then goes into production before performing any market tests. Successful companies who are interested in building strategic relationships actually identify and literally sell the product before it is completely developed.

How can you do this? Simply understand the needs and desires of a definable cluster of customers large enough to be profitable to deliver a product or service. While this is a complex description, it covers several important points:

• Understand the needs and desires-- it does little to know what a group of customers needs, it is more important to know what they desire and are willing to pay for. Businesses need many things, but if their not willing to buy them, you are not going to make much money.
• Definable cluster of customers-- it has to be easy to pick your buyers out of a crowd, and it must be even easier to let them know what you have to offer. Focusing on a smaller niche of profitable customers is the most effective use of your money.
• Large enough to be profitable-- you could make a lot of money manufacturing mining equipment for the moon, but with so few buyers it might not be worth the risk. Choose an audience were a relatively small market share could produce the financial returns you desire.
• Profitably deliver a product or service-- Now that you have defined a market niche large enough to support your entry, you must ask yourself can you profitably deliver what it is they desire. If you cannot manufacture or do not have the expertise necessary you must know where to get it.

The better you understand your target customer, the easier it is to offer something they will buy. In fact, with enough understanding you can customize other people’s products to solve problems for that market.

Choose a share of customer over a particular product or service and you will go further to create strong business relationships. Be known for your ability to solve problems in that industry and can adapt to changes in the business environment.

© 2003 Justin Hitt, All rights reserved.
/ strategic-business | growing-products /

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Use Outside Influences to Shape Your Products

Why should you let outsiders to dictate the products or services you provide? Unless they are buyers, they really do not have say. However, what if these individuals could become buyers of something similar to what you offer.

Often outside groups will lobby to change what you sell. Global Exchange forces Starbucks to sell "fair trade" coffee, but what do you think would happen if caught this interest before the protests. By understanding your customer bases concerns, you can turn protests into profits.

If Starbucks saw this desire for fair-trade coffee�they could have become the big company that opens doors for quality specialty coffees. Marketing efforts could have included demonstrating how the sale of such coffee promotes free trade, actually bringing more of the world to every outlet.

Look for under represented but profitable groups of buyers you are not yet serving. Find those who match the demographics similar to your existing customers. Perhaps these individuals purchase premium versions of your product, or perform customization to product that represent possible factor features.

Organizations with strong business relationships look at their products with another person�s perspective. They watch closely for future business trends while increasing their understanding of customers. This growing prospective opens new markets, introduces partnership opportunities, and improves the value of your products over time.

Abstracted from "Take a holistic prospective to your business" available on-line to subscribers of Applying Strategic Relations and the Strategic Relations Journal.

Where Wealth Builders Go For Customers

If anyone knows were to find more income it is going to be Global Private Banking, and according to a recent study by PricewaterhouseCoopers, 85% of respondents are planning to pursue clients that are more affluent.

According to an article in Gulf News, this means tough competition for high-wealth managers. With such a large percentage of service providers pursuing a small but top-tier group of customers, how does a company stay ahead? The same thing is happening in your industry, everyone seems to be fighting over the same ideal customers.

To secure a better breed of customer you must:

1. Understand your prospects needs and wants.
2. Orient your products around those wants.
3. Know what these prospects are willing to pay for.
4. Create a comprehensive client profile outlining key characteristics.
5. Define your retention process to retain valued clients.
6. Design a means of monitoring valued clients progress.
7. Invest in relationships for client benefit as much as profits.
8. Focus on few products that best serve this niche.
9. Know what types of clients are most profitable for you to serve.

Do not expect your most desirable customers to know who you are, but do expect your top customers to be willing to share details about what will serve them better. Leverage your existing relationships in this manner to gather the tools you need earn more of the same.

© 2003 Justin Hitt, All rights reserved.

Have you seen a news story that I may find interesting as it pertains to executive relationships? Does your company have a story about results with strategic relations? I'd like to hear about it. Email me at feedback-newsletter