The Right Formula For Grabbing Market Share in a tight economy

The Right Formula For Grabbing Market Share in a tight economy.

In these challenging economic times, the attached approach for grabbing market share is certainly worthy of consideration.

An excerpt from the opening paragraph of the attached article states “When most people see the symbol CO₂ they think of the acidic oxide. According to many sources, CO₂ in concentrations of 7% to 10% can cause dizziness, headache, visual and hearing dysfunction, and unconsciousness within a few minutes to an hour.”

The authors of the article took a slightly different spin on the properties of CO₂. “C=02. This business formula signals that Chaos equals Opportunity to the second power. What better time for a company to grab market share than when there is a sense that their competition is on their heels. Strong, well positioned brands are always looking for an opportunity to grab their share of the market – there has never been a better time than now!”

Much of the news today is consumed with bleak economic data.  Many companies are going inward, cutting CapEx, laying people off, cutting “discretionary” spending and waiting for the economic downturn to pass.  This is a certain formula for disaster and an express ticket to the dead pool.  What is most important today is to use these times to not cut expenses and staff indiscriminately, but rather to put everything under the microscope to cut those things that never really made sense, but made their way into your operating budgets when you were flush with cash and your investments were returning healthy returns.  Everything else must stay and be used for you to create a battle plan that will ensure you are victorious over your competition.

We are in a period of economic correction people!  This is a natural business cycle, which, at the moment may feel like a free fall from 30 thousand feet.  I do not wish to minimize the severity of this economic downturn, but this is not a time to forget what made your company a world class brand or a company on its way to greater things.  You must continue to invest in the important things that will make your customer continue to choose you over the competition.  You must continue to be strategic and to innovate.  You must put even more emphasis on doing the things that are required to win the minds and hearts of your customers, with a focus on doing things better, faster and cheaper.  This is a time to leverage the data assets you have.  Use the data to drive the insights which will help you to devise the best possible battle plans to gain share.  You must exploit every weakness of your competition and strengthen your most important assets.  If you data suggests you should be trying some new things to gain share, by all means test.  Test often, using this time to strengthen your position.  If you fail, fail quickly and learn.  Get yourself back on course and positioned for a stronger market position.

Be smart, be bold, be strategic, but most importantly, be the things that are most important to your customers.  Don’t forget about your guiding principals, your mission statement and your key points of differentiation.  If you see your competition pulling back, don’t follow their lead, go grab share and make certain you give your new customers what your competition could not or would not deliver.  It is not about slashing prices, it is about providing value.  Value is a multi-dimensional equation that encompasses price, product, promotion, assortment, service, trust and a open two-way communication with your customers.

If you are on the service side, spend more time with your customers to better understand their pain points.  What do you need to do to re-invent yourself to be responsive to how your clients are changing their business.  Are they looking to outsource more services, are they looking for better technology that reduces costs and cycle time, etc.  These will serve as signals to where their heads are and if they get the concept of C = O x 2.  This is a time to be a value added strategic partner more than ever.  Companies can fire vendors, but they are less likely to fire value added business partners that provide a strategic differentiation to the competition that translates to increased revenue, margin and ROI.  If you have clients who do not get C=O2, which I am sure you do, take the time to explain it to them.  Help to minimize their fears.

We are in these turbulent times for the balance of 2009 and most likely the first half of 2010 so strap on your seat belts and pull them tight as it will be a bumpy ride, but it is not the end of the rode.  Those who see opportunity to the second power in this chaotic time will come out on top, stronger than those who make cost cutting their primary objective in hopes of just weathering the storm.

Take the challenge, thrive on chaos and find your opportunity to the second power  C = O x 2

A Customer For All Seasons

There are many marketers today who are concerned about slowed revenue growth, or even shrinking revenues, as well as fleeting customers. What can you do to truly recession proof your business… Listen To Your Customers. I have often been bewildered by how many marketers will rally their teams in a war room to strategize on how to increase revenues, acquire new customers, gain greater revenues per customer, by adding a new feature or function, price changes, new ads, etc., but they often neglect the most important part of the equation: talking with and listening to their customers before making changes. It is o.k. to develop concepts from an inside out perspective, but they must be market tested or vetted by those who pay for the salaries and overhead of our companies – The Customer.

A critical customer segment, Mavens, as defined in Malcolm Gladwell’s The Tipping Point, are twice as likely to talk to others about their experiences with our brands. Not only are they twice as likely, but they tend to have very developed social networks that listen to them, trusting in their opinions. It is critical to fully understand and respond to the opinions of your Mavens in advance as they can play a significant role in the successes and failures of our brands. A good practice for all marketers to embrace on a daily basis is to ensure their products and services appeal to people’s aspirations and their dreams. As marketers, we must inspire prospects and consumers alike as we move them from awareness to trial and hopefully loyal customers.

When trying to decide what the next new product or service is you should be focusing on developing, I would suggest trying not to be one of the many “me to” products and services that exist today, unless you have a unique hook that can gain you share. A better approach, however, is to focus on creating products and services that are game changers, that can be tomorrows market leaders not followers. Don’t be afraid to think big, break the rules, challenge the current conventions within your industry and kill some “sacred cows”. Develop your products and services from the point of view of the customer. What latent need is not being met efficiently today. How many times have you thought, “boy I wish I had thought of that, it is so obvious”. Focus on differentiating yourself. As you think about your business, focus your product development on the needs and wants of your current Mavens and those you would like to attract to become Mavens. If you haven’t done so in the past, begin to spend a disproportionate amount of time focusing on keeping these key individuals happy. You can do this by providing them with exceptional service and the products they are demanding. Do not attempt to do this by sitting in an ivory tower, speculating on where your next share gains can come from, but go to the source, the Mavens, for your answers. It is also important to always be extremely respectful of their time and privacy. That said, you still must not forget to solicit feedback from them whenever possible, preferably before undertaking actions that might affect their future experiences with your brand. Always avoid, at all costs, going to market with new products and/or services without first engaging with your customers (those who pay) and, if appropriate, their end users (those who use). Establishing a simple customer feedback loop or echo chamber, before implementation or product launch is an essential element to maximize the chances of success .

If you can follow these simply rules and make it part of your operating disciplines, you are assured of having better success at keeping your custommers through all seasons, as well as attracting new ones.