It’s human nature and business nature to want to over-deliver and exceed your customers’
And of course, we behave this way because “smart” customers know which buttons to push to increase our anxiety and make us do whatever it takes to “make them happy.” And then there are the customers who aren’t really trying to manipulate the system or take advantage of vendors, but simply wake up every day with filet mignon tastes but only have Filet O’Fish budgets (nothing against delicious Filet O’Fish sandwiches or our dear clients at #McDonalds)!
The Business Acumen challenges of trying to deliver filet mignon to customers who have Filet O’Fish budgets include:
Hard Choices and Tips
Hopefully you never find yourself in a position like this because you have developed, and are executing, a clear strategy and not over-delivering without capturing the value that you deserve. If you do, here are three tips that you can leverage to try to solve this critical challenge:
Proactively Identify and Target Key Customers that Match Your Value Proposition
If your strategy is selling innovative, leading products, then aggressively find prospects and customers who both appreciate the value you provide and are willing to pay for that value. There is a discipline that must transcend the entire organization and cut across all the functions in alignment. Structures, measurement, and compensation must also match so you are avoiding situations such as just paying sales professionals on top line revenue without any consideration of margin.
Aggressively Take Wasted Cost (not Good Cost) Out of Your System
Wasted costs go right against margin and profit. You need to aggressively look for ways to continually improve and continually find methods of more operational efficiencies. Every penny saved is a penny that drops down to the bottom line.
Learn to fire your Bad Customers
Customers who will always have filet of mignon taste and demand premium service, but don’t have the ability to pay anything more than Filet O’Fish prices may be a customer that you want to part ways with. Sometimes that will hurt up front but may be the best thing you can do for your sales territory or business over the long term.