We often think that being middle of the road reduces business risk. It feels safe. Offering many things to many different markets seems like it’s the best way to go. “You never know who might buy what we offer,” we say. Or “We can’t put all of our eggs into one basket.”
But from your customer’s perspective, playing it safe makes them not notice you. You blend right into the background noise. And then we mistake not being noticed as an awareness problem. So we ramp up marketing. Hire more sales people. Go to more tradeshows.
But customers don’t like to be marketed at. (Plus it rarely works anymore.) They want you to care about THEM. To understand their particular pains that get in the way of their particular goals. For you to understand their industry and their role better than anyone else. To help them like no one else can. And that requires an insane amount of focus–the exact opposite of middle of the road.
To get out of the middle of the road, ask:
1. Which customer segment and/or product category has the highest margins?
2. Why are margins higher? (Ask your sales people and then verify with customers.)
3. What would be the profit impact of selling just 10% more to this segment. How about 20%?
If the numbers excite you, then make focus a strategic priority. Get a team together, create a plan and get into action.
If you or your team often find it hard to get into action, send me a note and I can show you how to get going.
Do you have a Big Strategy?
Our three-minute Big Strategy Assessment is designed to get you thinking. To get your team talking. To begin to answer the question “How do we create better growth?” Take it here and get the conversation going.