A Brighter Way
A Brighter Way
Just a few years ago there was Blockbuster store in virtually every community. Due to huge revenue losses, the company filed for bankruptcy last year. It ended up closing nearly 90 percent of its U.S. stores, but still couldn't recover. Blockbuster was eventually sold at auction.
Why did this once popular company fall so far? Because it took them too long to realize they needed to evolve beyond being just a bricks and mortar store – customer demands were changing and it was the competition, not Blockbuster, providing the solutions customers desired.
Businesses must evolve in order to survive. By taking a methodical, scientific approach, you can help guide your company through the changes it needs – before it's too late.
Your company can't become more competitive if you don't understand your strengths and weaknesses. To do this, talk to everyone – from your employees to current and prospective customers. You may also want to get input from your suppliers, referral sources and other key audiences such as government, regulatory or community leaders if your business works closely with them. And don't forget to look at what your competitors are doing, too.
Use focus groups, surveys and interviews to gather your data. Determine how these various audiences perceive your company, what your strengths are and in what areas you can improve. These groups will agree on some things, and have vastly different opinions in others.
The commonalities you uncover will represent your company's strengths and the strong perceptions your target audiences share. The areas of differences represent opportunities for your company to improve – in customer service, product offerings, marketing or other areas.
The information gathered may help you drop or develop a new product line, change or add a new customer base, develop a new marketing position or determine you need to make changes in your company's perception in the marketplace.
Draw conclusions from the data and then develop two lists. The first should contain those qualities that your audiences agree define your business. These are their perceptions of your company, the products you offer and the services you provide – as well as the experience they receive by interacting with your business. These are strengths that are at the core of what you do and should be at the foundation of your strategy.
The second list should contain areas for improvement that will allow your business to evolve to meet your changing marketplace. It should contain any opportunities to provide new products or services, ways to improve your customer service and even possible changes to the way you position your to your various target audiences.
Use these lists to redefine your business strategy to meet the changing needs of your marketplace. As you develop your plan, don't be afraid to test it on a few early adopters among your customer base. They'll let you know if the plan resonates with them – and their feedback can be valuable to fine-tuning the strategy.
You'll want to share your results with your employees early and often, and share your new strategy with them early in the evolution. Your employees can become part of the change and take an active role in providing the experience your customers and prospects receive. Not only that, but they can also be your "eyes and ears" in the marketplace, providing you with valuable insight, if encouraged to do so.
By gathering solid data, you'll be better prepared to develop a logical business strategy to help your business evolve and grow. But it doesn't stop with the plan. Continue to test and revise your strategy as conditions change. Evolution will help your company not only survive, but thrive.
This article originally appeared in Smart Business Magazine, December 2011 issue.
Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.
