Most companies start with outstanding customer value propositions. But as time passes, and customers change, the once-upon-a-time on-target value propositions become out of date. Soon customers become dissatisfied because vendors don’t seem to understand their current needs. They begin to believe they’ve outgrown their vendors and start to look for new answers to their problems.
This isn’t true of every company. Some companies make staying close to their customers and understanding their changing needs a top priority. These companies use a process to check themselves and ensure that they’re constantly staying on top of changing customer priorities. The process starts by asking several questions:
1. Who is your customer? What do they do? What are their challenges?
2. Have your clients aged? Have their needs changed?
3. What is your customers’ cost structure in this economy? Do your bells and whistles deliver the value they did in boom times?
4. Is your customer using technology to do some of your core offerings?
5. How well do you truly know your customers? How often do you visit your customers?
If you don’t know the answers to these questions, then it’s time to get back to basics. Here are a few steps to get you going.
Step 1: Get to know your customer again.
Recently, our company found that many of the people with closest ties to our clients were starting to retire. We put together a customer visit “blitz” to visit all our existing customers and prospects within our existing accounts. We made sure they knew who we were and what we did, but most of all, we listened. We inquired about new challenges and took time to learn how we could understand the root of their problems.
The point is, if you want to understand your customer’s changing needs, don’t just visit the people you are familiar with — get out on the front lines with the people doing the core work and buying new products or services. Find out what your customer’s requirements are for timing, cost and quality. Really listen to your customers so that you can understand their goals and the obstacles that prevent them from reaching those goals.
Step 2: Re-center yourself in your customer’s new world.
After listening to your customer, develop a new value proposition. We realized that our customer’s budget constraints were far more severe than we originally thought. Our customer had no choice — they had to do more for less. We had to figure out a way to whittle down what wasn’t essential and find ways to add real value through technology, resourcing, and efficiencies.
Step 3: Change.
Ouch, yes — change. Your staff will be entrenched in the way they do things, or the products you offer, but change will be imperative. Without it, you risk losing your business over time.
Put your staff in a room and present your “new” client’s needs to them. Ask them, “If we had to start over today, how would we support this type of a client?” You may need to develop high-level processes, add resources or create a realistic profit-loss statement. Then, ask your management team to look at how that differs from where you are today. Create strategies that will allow you to execute and deliver your new value proposition.
Present your customer’s “new” need. Create a new value proposition. Go back to answering your customer’s requirements of time, cost, quality, and peace of mind. The result will be a path to change that’s been developed by your people in a non-threatening, problem-solving way. And best of all, it will be in sync with your client’s needs.
Victoria Tifft is founder and CEO of Clinical Research Management, a full-service contract research organization that offers early to late-stage clinical research services to the biotechnology and pharmaceutical industries. She can be reached at [email protected] Clinical Research Management Director of Business Development, Lori Gipp, assisted in the writing of this article.