I know a handful of companies that request feedback from customers only to do nothing with the data. At my company, TV Ears, I’ve found that such input is one of the most important elements on which to focus my attention. After all, you want to know what’s working and what isn’t, right? Successful companies capitalize on customer reviews as a way to determine what they are doing well and more importantly, what areas need improvement.
Over the years I’ve come to realize that whether you like it or not, you need to know what people are thinking. Now more than ever, it’s important to listen to what your customers say. If you don’t ask for feedback directly, it will pop up somewhere on the Internet and it’s not all going to be positive. So instead of taking the back seat and waiting for those comments to surface, be proactive and request it first. If you aren’t asking customers for their two cents or wonder what the value is in doing so, here are three reasons why reviews can be beneficial to your business:
Provide room for improvement or change
Of course you can’t make everyone happy and there will always be naysayers. Most of the time, however, folks that complain about something in particular have a valid reason for their dissatisfaction. Perhaps a customer is having a difficult time using a product. If that’s the case, that company may want to revisit the instructions provided in their associated packaging to ensure that the directions are easy to follow. Another individual may state that the purchased item didn’t fulfill their needs. This might shed light on an opportunity for the manufacturer to develop a different product that better fits their requirements.
Provide additional selling points
Often times sales representatives get caught up in their conversation scripts and forget to mention other pertinent information during their pitch. Reviews are a great way to provide a sales team with additional selling points to help attract and convince customers. For example, there is a misconception that our TV Ears products are only for older generations. While it’s the baby boomers that are most likely to use our offerings, it’s good to hear comments like:
“My daughter, who is 14, didn’t realize how much dialog she was missing until she used TV Ears. Now she’s hooked!”
Although young adults are not our prime targets, we would have never known that our products were helping other generations had this information not been made available. This is a great selling point to mention to adults with younger children.
Provide validation of your brand
Everyone loves a pat on the back or to hear customers are enjoying a product. That’s every company’s dream. For example, we’ve received numerous comments like the following declaring that our product has helped mend relationships:
“This has saved my marriage! My husband drove me nuts with the TV turned up loud. We usually watched things in different rooms. Since buying the TV Ears we can both watch a show together. BUY THEM!!!!!”
Instead of wondering if people enjoy your product or taking the one-off, out-of-context, Internet posted comments bashing your product as Gospel, take a proactive approach and request customer feedback. Hearing opinions straight from the horse’s mouth will contribute to a company’s success by allowing them to continue doing what they do well or informing them of any changes that may be needed.
If this year has taught many in business anything, it is how failure can reach out and grab even the most successful enterprise. Yes we all have been reminded that failure is a fact of life but we may have forgotten that failure is also part of the process.
That’s not to say that I don’t empathize with those who’ve lost their jobs and fortunes in the process. However, history clearly shows us that flourishing organizations and entrepreneurs come about only after graduating from the School of Hard Knocks.
Take my company,TV Ears, for instance. We’re an 11-year old company that became an “overnight” success several years after we opened our doors. We had our typical fits and starts in the beginning, including miscalculating production and distribution costs that required us to significantly lower initial sales expectations and shift our go-to-market strategy from direct retail to hearing health specialty stores until we could achieve workable economies of scale. Now we’re an Inc. 5,000 member and on the Deloitte Fast 500 list of technology companies. We’re certainly proud of our achievements that came with a lot of tenuous moments in the early stages.
Our company’s story isn’t by any means unique. My personal favorite is the renowned “Post-It” product by 3M, which was a botched batch of relatively weak adhesive developed by one of their lab employees in 1970. It wasn’t discarded though, but instead kept in storage until another employee found the solution useful for ensuring his bookmarks stayed in place in his church hymnal book. Offered to consumers in 1980, Post-It is still one of the company’s most popular offerings, but it took a failure and ten years to get it there.
So I’d implore my entrepreneurial colleagues to keep these things in mind when you’re looking at failure:
Perfection is a myth: The lofty ideas of creating the next wheel in a dark room are best left to fantasy and science fiction writers. Reality shows us otherwise. Take WD-40® for instance. In 1953, Rocket Chemical Company’s team of three scientists set out to develop a rust-prevention solvent. It took them several attempts to come up with the right formula. The name, WD-40, stands for Water Displacement perfected on the 40th try.
From the ashes, opportunities may arise: One man’s definition of focus may be another’s for “tunnel vision.” Somewhere between the two will lay opportunities. Most things don’t turn out as intended, but that doesn’t mean they may not be successful. When faced with such a situation, try looking at things from different perspectives to see if there’s an opportunity waiting to be discovered.
Ask for help: It may be a good idea to get others in the organization or trusted advisors to give their two cents. This takes some courage and trust, but the benefits in potentially uncovering ways to turn a failed initiative into a resounding success are significant.
I heard this phrase once: the smartest people in the world are the ones that know what they don’t know. That’s an important mindset to achieve in business. Failure will most certainly happen to us all on one level or another. The key is what one does when faced with it.
I can tell you from first hand experience that I’m a big fan for what good PR can do for a company in driving new customers, partners and investors. Often times, such initiatives can generate high returns when coordinated with a paid advertising campaign.. Good stories written by credible media outlets and bloggers can help an organization rise above the foray and show a clear difference from its competitors.
What’s more, the best PR can occur when the company plays only a small part in the piece.
This may sound contrary to traditional thinking, but it’s true. Just like word of mouth marketing, the best news articles may be ones where a customer, partner or “innocent bystander” takes center stage in the story and touts the organization’s product or service. This not only makes the story more relevant to the readers who relate more toward that individual then they do the organization, but can also be a more credible piece by being perceived as less “salesy.” While this type of story may take more effort to construct, the benefits are substantially greater.
So before you have your PR agency pitch another reporter, make sure you’ve got the following elements in place:
Line up some people who can talk: Get with your marketing, sales and customer service folks to work with your PR team to identify and solicit participation from top customers and partners that will speak for the record on how your product or service is adding value to them or solving a problem.
Frame the story as theirs, not yours: When pitching media, make sure your PR people are offering up a story about the individuals that will be speaking, with your company playing a secondary role. Trust me – your organization will get its due as the solution provider, but the human interest factor is the bigger selling point.
Be ready to act, and quickly: The nature of news means that PR folks will pitch for days and weeks, often times not getting a response until sometime much later from a frantic reporter who’s on a very short deadline. It’s important to make sure that when that occurs, you can get all the players in place in a matter of hours. It could mean the difference between landing a good, positive article and missing a big opportunity.
All of this is not to say that there won’t be times where your company can be the star, but selling a story idea that puts customers, partners and other stakeholders in the forefront will increase the chances of even greater PR buzz that will drive new business. In fact, this strategy could actually drive more traction than the standard “spray and pray” news release distribution tactic. Egos may have to be put in check in the process, but I assure you, you’ll get greater notoriety by spreading the love around.
I don’t know about you, but I’m getting really tired about the naysayers who are forewarning shoppers and retailers that the soon-to-be upcoming Christmas season is going to be one of the all-time slowest in recent memory.
I’m not saying they’re wrong, but I am saying that I don’t care what they think.
Are we not to believe that the only option for businesses this Fall is to lock the doors just before the Macy’s Thanksgiving Day Parade and not open up again until an NCAA Division I college football champion is declared in January? Well, count me out! I believe that buyers are out there. The difference is that they will look even harder for value then ever before.
In my opinion, that’s a good thing, because it requires entrepreneurs like us to build products and services that show a distinct benefit; not a passing fad. It also means that companies must convey these values in clear, concise and caring tones. So before you throw in the towel and cry in your egg nog, consider making some much-needed changes that will actually drive more sales this year. Start by honestly answering the following questions about your current strategy:
Are you too feature focused? Many product manufacturers and retailers love to talk about their newest gadget to the utmost technical detail. What can get lost in this discussion is what the actual benefit the widget brings. At my company, TV Ears, we continually update and enhance the technology for our headset products that allow people with hearing issues to listen to the TV better without blowing out others in the room. But instead of emphasizing that our products are comprised of the same electronic engineering that was used by U.S. Air Force pilots, we promote one simple but powerful value proposition – our headsets save marriages! Customers get that and, more importantly, they buy that. Are you too self-serving? I hate commercials that talk about how big the company is or how many awards they’ve won before they ever get to conveying more important points like how much they understand their customer’s pain and how their solution solves that. Remember – people resonate with companies and brands that they feel value them as individuals, not as numbers.
Are you too hard to deal with? Companies may have the best product in the market, but if it’s too difficult for customers to find and buy it, they’ll go elsewhere. Top product manufacturers and retailers are such because they understand that they’re responsible for the customer’s entire shopping experience – including before, during and after the actual sale.
The bottom line is this – retailers and product manufacturers need to stop complaining about the market and forecasts about the upcoming Holiday Season and figure out how to make their product or service more valuable and more of a necessity to their customers. Those that do that will find the end of 2009 to be a lucrative one for them.
Since launching my company, TV Ears, in 1998, I’ve found myself constantly examining what other businesses are and are not doing. For companies that are performing well, I’ve found that they not only offer a solid product or service, but they have a strategic plan with how they market the company. Although strategies vary depending on the company’s goals, it’s essential to pay attention to both online and offline marketing efforts.
What I find is that while concentrating in one of those areas and being successful is well and good, in order to achieve real success, you’ve got to flex those marketing muscles on all marketing fronts. Some of those areas might include: 1) Web sites, social media & Twitter! Oh, my! While the Internet is a great vehicle to get your message across and provide information about a company, it’s also an ideal space to create one-on-one conversations with customers. With the multitude of online tools out there, the Internet should be used to its fullest. Companies and customers of all kinds are on the Web making a presence in order to listen and respond to one another. Every company should be on the Internet to some degree and the more ways you’re able to infiltrate your message, be it your Web site, social media networks or other avenues, the better. Set up Google alerts for your company and competitors so you are always aware of what is being said, good or bad. The Internet is a great asset for marketing as well as for managing customer service.
2) Hi, my name is ___________. Contrary to what a lot of professionals believe, networking events can be extremely beneficial and provide an opportunity to meet folks who can help your business grow. Sure, the cocktails and appetizers are nice too, but it’s the relationships and advice I’ve taken away from these events that have helped my company expand. Whether it is from attending conferences, seminars, tradeshows or mixers, you’ll be amazed by the different people you meet along the way and how the awareness of your company or product will spread. 3) And the winner is… Most companies are oblivious to the fact that there are several awards they are eligible to be considered for each year. Not only is it a great feeling to be nominated for a category, but it also helps bring awareness to the business of the individual being spotlighted. Whether it is a small publication in town that holds a few annual awards each year or it is the Inc. Magazine’s Inc. 500/5000 list, get yourself into the competition. In addition, there are often specific categories that cater to employees such as HR Professionals of the Year, CTO of the Year and such. This is a perfect opportunity to showcase your organization’s strengths and that will reflect well on your company overall.
Businesses that are able to flex their marketing muscles with online and offline efforts will increase their brand awareness substantially. What’s more, many of these initiatives won’t break the bank. Companies that maintain a solid Internet presence participate at industry networking events and tradeshows and go after specific industry awards will discover that their biggest expense is time – not money. Nevertheless, folks that want to run a successful business will most likely need to ensure they are active on all fronts.
More than 20 years ago, Kevin Costner and the movie “Field of Dreams” gave us one of the all time great movie lines; “If you build it, they will come.” While that may be true in the movies, it couldn’t be more wrong for launching a new venture.
Successful entrepreneurs know this only too well. It’s not simply enough to build a better widget in order to be the next great Microsoft®. It’s about developing the right business that can get all stakeholders to embrace the company’s ideas and philosophy as their own. This goes beyond sales and more into generating buy-in from folks that can help an organization grow big and smart at the same time. So while building a better mousetrap along with a disruptive marketing strategy are crucial elements for a promising startup, companies will plateau much earlier than its industry unless it also does these three things well:
Find the right financial backers. Banks, venture capitalists and angel investors as well as friends, family and business acquaintances can be the life blood for a company in its early stages as they work to get a product out the door. However, money shouldn’t be the only thing they bring to the table. In fact, financial support could come in a number of ways; from in-kind or pro bono legal, accounting and operational help to introductions with people and institutions that could provide seed capital to get things going. In all cases, the critical element here is to find true partners who can support the organization beyond the actual hard dollars they may offer. They should also be willing and able to open doors to new sales, partners and other investors. Taking their money without such a commitment could do more harm than good in the long run.
Build the best executive team possible. Any investor will tell you that good ideas are a dime a dozen; many of them never seeing the light of day or a profitable return in large part due to the failings of the executive team in charge of starting up the company. There is no substitute or alternative for good leadership and solid execution, and not securing the right team will put the new organization at an even greater disadvantage than they already are. Attitude is just as important as experience here. I’ve seen a great number of companies retain an executive with a wealth of domain expertise, only to not meet expectations. Successful managers of an upstart firm must have a fire in their gut that can only be quenched by seeing the company realize its full potential.
Hire hungry people. Creating a culture that personifies aggressive, smart, team-oriented characteristics is key to getting things off the ground in the early stages. Clock-watchers need not apply or be hired, and instead, start-up firms must bring on folks for their “can-do” attitude and dedication to one another as much as for their technical skill sets. That kind of spirit will get an organization through the rough spots that will undoubtedly occur.
None of this is to say that a company can generate significant sales and returns for its shareholders simply by retaining good money and good people. Far from it – a marketable product that solves a pain point for customers must be present. However, a successful new venture must go beyond the product if it is to be more than a footnote in the chronicles of its industry.
I’m a big fan of the Francis Ford Coppola series. One of my most favorite lines is from the first film is delivered by Vito Corleone (played by Marlon Brando) when he teaches his lieutenants to “keep your friends close, but your enemies closer.”
Tough guy image aside, this also makes very good business sense.
Here’s why. Knowing what your competitors are doing before the market does can enable an organization to respond quicker and, potentially, get the upper hand. Conversely, what often kills most companies is a lack of foresight compounded by poor access to critical industry information. This can significantly impact product development, marketing, sales, operations and any other business strategy. More importantly, knowing where the industry is going and who is taking it there is an essential role business leaders must play.
Now all this doesn’t mean putting on a dark, three-piece suit and holding a classic mobster movie marathon viewing. However, it does require companies to start looking at how they conduct competitive analysis, and make it part of their regular routine. Here are some ways to do that without adding another expense line to the financial income statement:
Use the tools that Google gave you: Create news alerts; free services offered by leading search engines that will send automated emails when an article or new piece of Internet content appears based on specific keywords. Most executives and marketers set up one for their own company. It’s also a good way to keep tabs on rivals. Checking their website and related Internet properties on a regular basis wouldn’t hurt either.
Enlist the help of others: Customers, partners and third-party folks such as heads of trade or business organizations can be invaluable in providing information. Competitors undoubtedly are pursuing them,
and in doing so can give good insights into their sales process, promotion strategies, pricing and potentially even their product roadmap. Even a sliver of such knowledge can be of great help in staying ahead of the curve.
Just ask them: Seriously, this does work, particularly at industry trade shows and events put on by professional organizations where competitors often coexist. Most of these booths are manned by sales and marketing folks that are natural talkers. Engaging them in conversation can
bring about good solid information that would otherwise not be accessible.
It’s certainly understandable that entrepreneurs and executives can focus so much on internal matters that they forget to keep their eyes on the industry and competitive landscape. While there’s a possibility of become too distracted by paying too much attention to rivals, not checking up
on them periodically can be just as detrimental. Doing so is an essential part of a successful business strategy.
While many folks stand by the familiar saying “no news is good news,” I’ve learned that doesn’t necessarily hold true in the business world. While it implies that everything is running smoothly and nothing has changed, frequent communication is essential to running a successful business.
At my company, TV Ears (www.tvears.com), I’ve found that sharing information with employees on a regular basis not only increases productivity, but also leads to a happier work force. To ensure optimal communication, I’ve concentrated on three tactics:
Announce news internally
More often than not, when an organization launches a new product or hires an executive, employees learn of this through a press release on the Internet. I’ve seen this happen many times and it often leaves staff second guessing their value to the company. Announcing news internally is just as important as broadcasting it externally.
Staff members prefer to be kept in the loop on company developments, both small and large, and sharing such information internally makes them feel more respected. If you have a fairly large organization with numerous locations, consider setting up a company intranet where news can be shared or distribute a company-wide email before the public is informed. Employees will appreciate the effort put forth to ensure they’ve been brought up to speed. Having a system in place for information dissemination will also make certain that the news communicated is consistent throughout the organization.
Maintain annual performance reviews
While performance reviews may seem like a dreadful task, I cannot put enough emphasis on their importance. I’ve heard many folks admit that they are not provided with regular feedback which leaves them in limbo as to what actions can help them advance their careers. Performance reviews create the opportunity for managers to discuss with staff what they are doing well, what needs to be improved and the next steps in the career development path.
Dedicating time to communicate with employees individually will ensure there aren’t any misinterpretations regarding responsibilities and will motivate staff to continue putting forth their best effort.
Make yourself accessible
In order for staff members to feel comfortable in bringing ideas, suggestions or concerns to the table, managers need be approachable. After all, communication is a two-way process and I’ve learned that ideas stem from all levels within an organization. If managers are accessible and encourage staff to share their thoughts, both the business and employee will benefit.
It’s critical to communicate with staff members on a continuous basis. Efforts such as sharing company news internally, keeping up with performance reviews so employees can track their career progress, and maintaining a management that is accessible to staff are all good business practices that will lead to success for a business and contribute to morale.
Recently here in San Diego, a famous sports bar chain
located in prime spots around the city closed down, its stores gutted and
employees laid off. While perhaps a more common occurrence in these lean times,
I submit that the demise of this very well-known and once-popular business was
primarily the result of its management team’s inability to recognize changes in
their market.
Here are some reasons why I think this way. In the nearly
20 years that I frequented the chain, I never saw a change in its menu or décor
one bit. Moreover, while this company was unquestionably the local pioneer of
family-friendly sports dining in town when it opened, several competitors have
since come on the scene and are now flourishing, bringing with it stiffer
competition. I would venture to say that the chain’s executives never took
these nuances seriously enough.
Sensing Change
Market shifts are an interesting and guaranteed
phenomenon in business. They often occur without great fanfare or forewarning.
I’ve seen the same thing in our industry of television listening devices; with
the level of competition from also-rans growing significantly since we launched
our operations more than a decade ago. I believe part of the reasons for this
was a bi-product of our own success; we at TV Ears proved there was a lucrative
market to be had. Though I feel that these rival products on the whole are
inferior to ours, it does not mean that I simply discount the signs they show.
So before the next business executive scratches their head in wonderment of
their company’s misfortunes, I offer the following tips to help them recognize
when their market is changing:
- Respect competitors for the value they bring. Many
companies disregard new competitors as not worthy of concern. Though that may
in fact be the case, their presence can provide valuable information on
emerging market trends that must be addressed, particularly if these competitors
show traction for their price, feature or function differences in their product
over the incumbents.
- Recognize the potential in looking beyond the current
market. It’s not uncommon for a company to focus on a particular niche at the
expense of larger opportunities. While getting a “toe-hold” in the early stages
is important to gain interest, adoption and positive cash flow, disregarding
other potential customers in the process could prove hazardous to the
organizations’ overall future health. For instance, we knew early on that while
we initially targeted our assisted listening devices toward audiologists and
hearing health professionals, we would need to break into the retail market in
order to continue our growth. That’s exactly what we’ve done over the past 10
years; for we knew that if we didn’t satisfy that base, someone else would.
- Recognize potential market convergences. I’ve seen
instances when a company creates a new market with its product or service only
to have some multi-national firm sweep in later with a comparable offering at a
lower price and drive them out of business. Entrepreneurs can mitigate this
risk by protecting intellectual property while also focusing on innovation and
staying one step ahead of customer demands. If they’re successful at this
strategy, several things can happen; among them being that the “Big Boy” stops
competing with them altogether or makes an offer to acquire the upstart,
thinking it’s better to join them than beat them.
Avoid Complacency
They point in all of this is for an entrepreneur to act
like one everyday and treat each day as if it were their first day in business.
They should also never be satisfied with the current success of their product
or service, but instead continually strive to improve. Of course, organizations
should celebrate their achievements along the way as they are hard earned, but
nonetheless keep up with the changing environment by using the skills that made
them viable in the first place.
One of the most important lessons I’ve learned in life is that you don’t have to be at the head of the class to succeed. I consider myself a fairly intelligent business owner, and it’s not something I acquired in a classroom or from a textbook. Sure, my education has been useful in growing my
business, but it’s the lessons I’ve learned following school that have impacted me tremendously.These crucial,
real-life business experiences have been attained by learning the successes – and, more importantly, the mistakes of other entrepreneurs and then applying their ideas and successes to my company, TV Ears (www.tvears.com).
I’ve been fortunate enough to pick up bits and pieces of valuable information from folks who are much smarter and more seasoned than me. Learning from the best and brightest is the key to success and following these four steps will help you and your business in the long-run.
Building relationships. Relationship building is one of the most essential factors to focus on when owning your own business. It’s not just what you know, but also who you know. Developing connections with intelligent business folks gives you an opportunity to learn more, which can have a positive effect on your business. Remember to make new friends – and more importantly, smart ones.
Pick their brain. Asking questions is crucial to any learning process. When you’ve been presented with a golden opportunity to sit down and converse with an expert, take advantage of this. If someone is willing to give you their time and talk to you, use it wisely and come prepared with questions and get as much out of it as you can.
Incorporate. Getting valuable insights is not enough. Entrepreneurs who expect to succeed must figure out how to apply these lessons learned to their own business in order to thrive.
Be a mentor and educate others. As entrepreneurs we belong to an elite group of individuals that represent what is great about the free enterprise system and this country. When an entrepreneur succeeds, our country succeeds, and everyone is a little bit better off. As part of this important group it is our obligation to help each other. So when the opportunity to help comes upon you, resist the conventional thinking of getting ahead of everyone else, remember how you were helped along the way, and return the favor-its part of the process.
You don’t have to be the Valedictorian to run a successful company. The most important business lessons are available in the real-world and the key is to find influential and smart people to learn from. What’s more, getting these great ideas and insights can be achieved by reading their blogs, if a face-to-face encounter is not feasible. I’m extremely grateful to those entrepreneurs who have taught me how to walk the walk and talk the talk. I owe a great deal of my company’s success to them.
