Wednesday, December 10, 2008

CCI -- Customer Composite Index

If you are going to succeed on the web, be it as a manufacturer, retailer, dealer / distributor, consultant, coach or whatever, it is essential that you identify, as specifically as you possibly can, who your prospective customers are. This is the foundation upon which Target Marketing is based.

An easy way to tackle this problem is through the development of a Customer Composite Index (CCI). Your CCI is a detailed list of characteristics that very specifically and succinctly defines your customers. Ask yourself the following questions: who, what, where, when, how and why.

An example of some of these types of questions are; who are our customers, what do they do, where do they live, (in the case of consumer products)? Or, where are they located (in the case of businesses)? Does their location have any significance to the product or service I’m offering? Does how they live have any bearing? What business are they in – product, service, specialty, commodity? What’s their annual income or revenue? How many employees do they have?

Additionally, are there customer personality or lifestyle traits that are important to your business? And, who are their customers? This is especially important, because if you understand their customer’s needs, you truly know what makes them tick! What are their interests and hobbies? I am sure you can come up with many more relevant questions that will help you to define your CCI. The point is, if you know who your customers are, by virtue of your CCI, then you know what you are looking for in a new customer.

If you have trouble with this exercise, visit an existing customer (or five) and ask them these questions. This gives you the opportunity to kill two birds with one stone. 1) You will meet with them and get some face-time, for a very legitimate reason. Which means you can continue to build your relationship. 2) In your questioning, you will inevitably communicate your concern through your interest in understanding your customer better. You never know, you may just uncover an unmet need or two that you can convert into a sale!

“No” – The Most Critical Word in your Vocabulary
Get comfortable with saying “No.” It is the most important word in your small business vocabulary. One of the predominant issues that small businesses face, due largely to the absence of a CCI, is their inability to say “No” to a prospect or customer when they should.

Here’s how it works; they (small business) have a sales opportunity but it’s really not what they do. But, the customers or prospect trusts them, perhaps due to a pre-existing relationship. And that prospect or customer really needs whatever “it” is. Rather than saying, “I’m sorry, we don’t do that. But, I’d be happy to help you find someone who does.” Or, “I know exactly who to point you to, let me make a phone call...” The small business decides that there’s an opportunity to make a quick buck, and “it” really isn’t that far-afield…

Well, I think you probably know the rest of the story (thank you Paul Harvey). The small business takes the job and ends up scrambling (i.e., jumping through hoops) to get it done. They don’t really understand what they are doing so the quality isn’t there. They won’t deliver on time and they spent too much money building or delivering “it.”

Net, net…
Net result? A big looser! Not only did they alienate everyone within their own their small business, they lost money on the job, (they would know this if they kept track of such things). And most egregious of all, they broke the trust of a customer who may very well tell all her friends and neighbors about what a pathetic job the small business did her.

I wish I could say this doesn’t happen very often but I can pretty much guarantee if you are reading this you have either been involved in such a debacle, been on the receiveing end or, you know of one first hand. Solution? Do what you do best and forget the rest! Your customers, your employees and your banker will love you for it!

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