Prepared for: Simply Better Performance Website – Article Series
19 October 2011
The Things That Get Forgotten By Small Businesses, aka What Big Businesses Don’t Want To Talk about
SMEs are under the hammer.
Last week’s MYOB Business Monitor, which showed 40% of SMEs lost revenue over the past year, with average falls a massive 27%, (http://www.smartcompany.com.au/sales/20111031-ten-quick-sales-and-marketing-wins-for-smes.html?utm_source=SmartCompany&utm_campaign=e3e3932c10-Monday_31_October_2011&utm_medium=email). In the lead-up to Christmas, there are fears the records monthly insolvency figures we’ve seen throughout 2011 will persist throughout next year.
It looks like where some businesses are prospering and making the most of it, others will go out of business because they don’t adapt quickly enough.
Process Underpins Marketing
Too often businesses can start forgetting about the people who keep them in business – the core customer base. They start focusing on more of a general approach and forget those dedicated few who have kept them in business.
Once an understanding of who is the customer is and what they want, then process becomes the key driver to deliver what they want.
SMEs need to focus on customers who are more likely to spend than anyone else – the ones that pay a good price, are cheap to acquire, and create the least amount of hassle.
It is at this point that Marketing as a discipline comes into its own with questions such as: “Are your efforts focusing on your core customer? If you are losing difficult unprofitable clients your business will be better without them? If you are losing core customers you should be worried”.
Believe it or not, process plays a role here as well in understanding who those profitable customers are and how to keep them. All the steps required to deliver what they want is process. Simply put all work (including Marketing) is a process and all processes can be “studied” and made better.
The end result is Simply Better Performance.