One of the primary tenets of Advantexe’s Business Acumen training programs is that in order to be
successful, a business must choose an aspirational value proposition for its customers and be the best at it in its market. There are only three different types of aspirational value propositions; Product Leadership (best product), Operational Excellence (lowest price), or Customer Intimacy (best customer relationships).
In choosing an aspirational value proposition, you must then align that proposition through execution which means operational decisions.
And there will always be very hard choices. Do we invest in more R&D or do we invest in more customer service training? The aspirational value proposition MUST be the guide to making the decision. If you want to be the product leader, you must prioritize R&D over customer service as a great product will sort of “sell itself” and shouldn’t have a lot of technical and service needs. Of course, it must be a great product even to have this conversation.
Which brings me to dinner last night…I am in Melbourne, Florida, also known as the “Space Coast.” We are working with one of our defense industry clients on a high-potential business acumen program. This is our 16th year with this client and it is one of our longest-standing relationships. Having come here for many years, you get to know the really great local restaurants, and many years ago I found a place called Sands on the Beach. Sands on the Beach is a little dive bar beach place right out of the movies. The drinks and food are exceptional!
Because of COVID, we have been delivering our business acumen programs virtually, but this time we are back live and in person. So, it’s been a while since my last trip to Sands on the Beach. I was so excited to have a couple of my favorite dishes but to my dismay, one of them, the homemade shrimp marinara, was no longer on the menu! The waiter saw my disappointment and then shared that the chef would make it for special customers and since I haven’t been there for a while they would make it for me. From scratch!
WOW!
And it was amazing. Knowing it would take some time to make, the chef made a homemade spicy garlic marina in a skillet and then threw in the fresh shrimp for about 7 minutes until cooked. He then topped it with some real parmesan cheese, put it under the broiler, and plated it. Served with chips, it was outstanding!
Great Service has No Incremental Cost
I thanked our waiter and the chef profusely. They went above and beyond the call of duty and when I was speaking with the waiter he said something profound, “There is no extra cost to treating our customers well.”
How true!
No matter what your strategy is, going above and beyond for your customers in pursuit of the execution of your strategy doesn’t impact the Cost of Goods Sold (COGS), Operating Expenses, or any other costs.
It is something every single business leader should remember every day.
3 Things You and Your Teams Can Do Today
This experience got me thinking about learning lessons. Here are 3 things you and your teams can do today to increase your customer’s experience with you at absolutely no incremental cost:
Be Active Listeners
- Train your team to actively listen to customers without interrupting, acknowledging their concerns with phrases like "I understand" or "Let me help you with that."
- Demonstrating empathy and attentiveness builds trust and improves customer satisfaction.
Customize Interactions
- Understand your customer’s business and their needs and even if it is an “off-the-shelf” solution, tailor your interactions and language in a way that makes the customer feel special.
- A personal touch makes customers feel valued and respected, building stronger relationships.
Be Humble
- Don’t take yourself and your solution too seriously. Simply saying "Thank you for your business" or "We appreciate your feedback" can leave a positive impression on customers.
- Humility reinforces customer loyalty and enhances their overall experience.
In summary, strategic thinking about the value proposition and how customers appreciate the value proposition is an important part of business acumen. Going above and beyond for customers when there is no incremental cost should be part of every business’ culture. I hope you will use these insights and tools to make your business even better.
