admin | The Age of the Customer – by Jim Blasingame

Use the power of storytelling to grow your business

March 19, 2014 12:58 pm , admin

Cogito ergo sum. French philosopher Rene Descartes proposed this idea in 1637, which translates to “I think, therefore I am.” Certainly the power of abstract thought is what separates humans from other animals.

Anthropologists now believe Homo sapiens succeeded, unlike other members of the genus Homo, Neanderthals and Cro-Magnon for example, because our brains had a greater capacity for speech and language. Today Descartes might have modified his philosophy to “I think and speak, therefore I am.”

In “Wealth of Nations,” Adam Smith proposed the written word as one of the three great human inventions. But long before humans were writing we were telling stories. And these stories – told, memorized and retold over millennia – became the headwaters of human development. We humans love to tell stories almost as much as we love to listen to them.

Another thing that’s older than writing is the marketplace. Long before Madison Avenue ad copy, merchants were verbalizing the value and benefits of their wares. Surely early business storytelling was the origin of modern selling skills.

In 1965, Intel’s co-founder Gordon Moore made an observation that became Moore’s Law: “Computer processing power doubles every two years.” But in his 1982 watershed book “Megatrends,” futurist John Naisbitt posed this paradoxical prophecy: “The more high tech we create, the more high touch we will want.”

So what does all of this mean? It means that in a time of rapidly compounding technology generations, the most successful businesses will consistently deliver high touch to customers with one of our oldest traits – the telling of a story. Here is Blasingame’s Three Cs of Business Storytelling:

Connect – Use stories to connect with prospects and convert them into customers.

Convey – Use stories to convey your expertise, relevance, humanity and values.

Create – Use stories to create customer memories that compel them to come back.

Storytelling is humanity in words. And since small businesses are the face and voice of humanity in the marketplace, we have a great advantage in the Age of the Customer. No market sector can execute the Three Cs of Business Storytelling to evoke powerful human feelings more than small businesses.

And regardless of how they’re delivered, stories don’t have to be long. I just told you five different ones in the first half of this article.

The Holy Grail of storytelling is when someone else tells your business’s story to others.

Posted in: Business Ownership, Networking

It’s The Age of the Customer—the rules have changed

March 17, 2014 8:00 am , admin

For 10,000 years, customers refined their search for products and services down to a couple of semi-finalist sellers based almost entirely on the classic competitive value proposition: price, product, availability, service, etc. I’ve termed this period the Age of the Seller.

That was a nice trip down memory lane, wasn’t it?

The new, prime differentiator today is no longer the competitive model, but rather a customer’s appraisal of how relevant a seller is to them, often before they even know if a seller is competitive. So does this mean that sellers no longer have to be competitive?

Not at all—no one will pay you more for less. But consider three new marketplace truths:

With value now presumed, customers expect to find what they want, at a price they want to pay, from many sellers.
Before a seller’s competitive position has even been established, they are being ruled in or out by customers.
Differentiating by customers based on relevance is happening before prospective sellers even know the customer exists.

That last point is perhaps the most breathtakingly disruptive development in the shift from the Age of the Seller to what I’ve named The Age of the Customer®.

So what do you have to do to prove your relevance in order to be among the last to be considered and hopefully anointed as the Chosen One? Here are three important Age of the Customer relevance practices:

Technology matters. Your online capability must match the expectations of your profile customers, such as having a mobile-optimized website.
Contribute first, contract second. Now confident of acquiring value, customers are increasingly seeking and collecting trusted advisors and experts in their quest for relevance before they make a purchase decision.
Connect with credentials. Use new media to establish relevance credentials and connect with prospects and customers.

In his book Megatrends, John Naisbitt prophesied, “The more high-tech we have, the more high-touch we will want.” Here are three high-touch Age of the Seller practices still relevant in the new Age.

Remember the customer’s name and use it—often.
Make eye-contact and smile—early and often.
Be grateful and say “thank you”—a lot.

Find success in The Age of the Customer by doing the following absolutely in this order: be relevant, be useful, and then be competitive.

Your greatest danger is not being uncompetitive, but being irrelevant.

Posted in: Age of the Customer, Customer Care

Entrepreneurial patience = Success

March 14, 2014 8:00 am , admin

If you were to identify synonyms for the word entrepreneur, you would come up with things like, risk-taker, industrious, visionary, perhaps even capitalist. But one word that is definitely NOT synonymous with entrepreneur is patient.

It simply is not in an entrepreneur’s DNA to wait for the world to bring him or her things. Entrepreneurs bring things to the world.

But having said this, entrepreneurs who enjoy long-term success have learned entrepreneurial patience. Even the most impatient entrepreneurial farmer understands that a corn harvest doesn’t take place until after the seeds are planted, the plants nurtured and a certain amount of time has passed.

Having entrepreneurial patience means knowing the difference between wasting time and energy and investing time and energy. Successful entrepreneurs are impatient about steps in a process — getting the seed, planting the seed, cultivating the plants, etc. — but not about accomplishing the ultimate goal of harvesting the result of the process.

One of the most prominent guarantees of failure in business is not understanding the simple wisdom of Renaissance author and father of deductive reasoning, Sir Francis Bacon, who said, “In all negotiations of difficulty, a man may not look to sow and reap at once; but must prepare business and so ripen it by degrees.”

When you see someone trying to “sow and reap at once,” you’re witnessing failure waiting to happen. The only thing left to be determined is whether this failure will become a valuable lesson in entrepreneurial patience, or a bitter experience.

Whether in the field or in the marketplace, all endeavors are subject to natural laws, like the time it takes for a seed, or a project, to germinate and produce fruit. Successful entrepreneurs understand this and have learned how to employ their impatience prudently, as leverage for success.

Impatience is often synonymous with failure; entrepreneurial patience is usually synonymous with success.

Posted in: Entrepreneurship

Do you prefer achievement or success?

March 12, 2014 8:00 am , admin

What’s the difference between success and achieve? Webster is unable to define either word without the other.

If there’s no difference, why don’t we use achieve more to describe wealth, fame, status, credentials, etc.? Perhaps it’s because success is a noun and achieve is a verb, and nouns are handier than verbs.

But grammar isn’t the only reason success is more popular. Even achievement, the noun cousin of achieve, isn’t as preferred when describing accomplishment.

Perhaps early on, success just had better PR than achievement. Today success is synonymous with celebrating at the finish line, holding the trophy or the check, while achievement has more of a work and effort connotation. But don’t you have more memories of the journey of work and effort toward your goals than of the high fives at the end?

Legendary actress, Helen Hayes (1900-1993), said, “Always strive for achievement; forget about success.” But are there benefits to focusing more on the virtues of achievement? My friend, Dr. Gene Griessman says there are.

In his audiotape, “The Path to High Achievement,” Griessman identifies common characteristics of high achievement and how they’re in evidence long before anyone flourishes a checkered flag. Here are five of those characteristics, each followed by my thoughts.

1. The power of self-knowledge.
Knowing your strengths and weaknesses may be the most important characteristic to seeking excellence. High achievers regularly critique themselves and make adjustments.

2. Time consciousness.
Like soybeans or gold, time is a commodity. And although not traded in any market, any billionaire will tell you that time is more precious than gold. High achievers don’t waste time.

3. Persistence.
Stick-to-itiveness is a real word and a handy noun coined in 1884, meaning dogged perseverance. High achievers personify stick-to-itiveness.

4. The power of decision.
Indecision is the Kryptonite of achievement. History has shown that an army with a poor battle plan boldly executed can defeat a greater force tentatively deployed.

5. Learn from mistakes.
No one likes failure, but high achievers recognize the value of setbacks and actually leverage them in the quest for excellence. Failure is the abiding harness mate of achievement, and high-achievers expect to always be hitched to both.

No one lives their life in the winner’s circle. Strive for success, but focus on achievement.

Posted in: Entrepreneurship, Future Thinking

There is no handshake in “the cloud”

March 10, 2014 8:00 am , admin

“In the clouds” is an aviation term pilots use to describe flight conditions. Or you might have heard this term in a parent’s lament about where their teenager’s head is. Recently, it has found a place in the marketplace vernacular.

“Cloud computing” is the availability of incremental processing power that resides on an application provider’s servers, instead of your hard drive. For example, community-building technology resides “in the cloud,” like the social media platforms that have taken popular culture and the marketplace by storm—no pun intended.

But while cloud computing is another example of technology increasing business efficiencies and leverage, like all other high-tech tools, it still has not replicated one of the most elemental components of humanity—the handshake. There is no handshake in the cloud.

Successful businesses have learned how to profit from the speed and efficiencies of e-tools, including cloud computing. And those who initially discounted the notion of successful virtual relationships over the World Wide Web have been proven wrong. By now, most of us have met a prospect, delivered a proposal, closed a deal, delivered as promised, and maintained that relationship—perhaps for years—using nothing more than the virtual connection resources at our fingertips. But sometimes, there just is no substitute for face-to-face. Consider this story:

After a successful four-year relationship between a small business and a Fortune 100 business where all contact had been virtual, the small business owner wanted to deliver a proposal with a new idea for their relationship. The customer said, “Sure, I’ll take a look; just email it like the last one.”

But having never met the customer in-person, plus knowing the importance of this proposal to his business this entrepreneur asked for a meeting. “If you think it’s worth your time and expense, sure,” the customer agreed. The meeting was set, conducted, and the new sale was made, after which the customer said “I’m glad you came to see me. I probably wouldn’t have made this commitment without your presentation.”

This story is true—that was my customer and my sale.

As you leverage and profit from all of the efficient high-tech customer connection tools at the speed of light, don’t forget that the best choice might not always be found in the cloud. In the Age of the Customer it’s still a best practice to invest the time and resources to meet customers face-to-face, shake their hand, look them in the eye, ask them for their business, and especially to thank them.

There is no handshake in the cloud.

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Be sure to check out my latest segment from The Small Business Advocate Show below. I talk about how to balance using the power and productivity of cloud computing with getting in face-to-face with customers when the time is right.

Why there is no handshake in “the cloud”

Posted in: Cloud Computing

Are you prepared for a business interruption?

March 7, 2014 8:00 am , admin

It’s doubtful that American small businesses have ever been impacted by as many potential business interruption events as we’ve seen in the past 20 years: beginning with the Oklahoma City bombing, the events of 9-11, and now the Boston bombings; hurricanes like Katrina and Sandy; tornados like those that wiped out Joplin, MO, and Hackleberg, AL, and many floods.

Recently we asked our online audience if they were financially prepared for an interruption with this question: “Could your business handle the financial impact of a business interruption?” Almost one-fifth said they, “… have cash and business interruption insurance if we need it,” and a little more than one-third reported they had “…cash and credit if we need it.” The other half admitted, “We would be hurting if it lasted more than a few days.”

There are three kinds of interruption preparation to focus on: operational, financial and digital. Here are examples of how to manage all three:

Operational
What would you do if your building became unavailable to you or your customers?

Use laptops that allow key employees to work and connect remotely, both internally and with customers. And make sure they have high-speed Internet connections at home.
Identify and become proficient with cloud-based applications that serve as an alternative for any installed programs that may be lost.

Financial
A significant part of the working capital of most small businesses is from cash flow. What would happen if your cash flow was interrupted?

Purchase a “business interruption” rider on your property and casualty policy to pay you cash upon the acceptance of a claim. Read the fine print; all policies are not created equal.
Maintain a close working relationship with your banker so you won’t have to introduce yourself to the person you might ask for a disaster loan.

Digital
Small businesses are increasingly using digital assets more and physical assets less. Are you prepared to protect your data as diligently as you do your building, equipment and inventory?

Assign one person to be in charge of keeping all computers enabled with a proven firewall and anti-malware program, and keep them current.
Regularly copy critical data from your hard drives and store it offsite. Better yet, backup your date with one of the cloud-based backup and recovery firms. Search for “online data backup.”

Business interruption – it’s a matter of when, not if.

Posted in: Future Thinking

Seeking the essence of entrepreneurship

March 5, 2014 8:00 am , admin

Ever wonder what makes an entrepreneur decide when to take a risk? Examples of entrepreneurial risk-taking range from the calculated to the fool-hardy.

You’ll never hear me minimize doing due diligence on your entrepreneurial dream. Indeed, an entrepreneur’s hunch without some foundation is like a belt without belt loops. Still, there will come a time when an entrepreneur must take action without all the answers.

And in the not knowing, but going forward anyway, we find the quark of entrepreneurship and the paradoxical twin emotions, apprehension and exhilaration.

These emotions presage possibility: Might be good, might not be; might be successful, might be a train wreck. And contemplating either possibility produces the headrush entrepreneurs get the moment they risk what they know for what they might learn.

The best way to manage these emotions is a two-step process. First, believe in your own ability to take the next step. This confidence comes from gaining knowledge and experience, plus the perspectives of others – like a mentor – who have already been where you want to go.

If you’re having difficulty finding this confidence perhaps your subconscious is sending a message that you have more work to do before you take that next step. But if your credentials and preparation are reasonable and you’re still lacking confidence, perhaps it’s time to risk what you know for what you might learn. And that leads us to the second step, which is about faith.

Faith is defined as a belief in something unseen. You must have faith in yourself to handle future plans. You must have faith that your plans will be flexible enough to deal with the unknown. And you must also have faith in one more thing which may surprise you – serendipity.

My friend, Jim Ballard, author of “Mind Like Water,” says serendipity is “a meaningful coincidence.” Jim thinks the more we expect serendipity the more of it we will find. I think business serendipity is good fortune that happens when you show up in the marketplace with your plan, preparation and faith – every day.

Always research the risk you’re taking, believe in yourself and what you’re creating, and have faith that something good will come from your commitment. But when you take the next risk, be prepared for the possibility that what you get for your efforts might not be what you expect, and for the possibility that this is a good thing.

Expect serendipity whenever you risk what you know for what you might learn.

Posted in: Management

What is a blog and why should small business care?

March 3, 2014 3:59 pm , admin

At this point in The Age of the Customer, many people would think that defining a blog is an elementary task tantamount to explaining the wheel.

But here in the real world, where Main Street small businesses live, some folks actually still have un-Tweeted thoughts. Consequently, since a blog for most small businesses is at once a powerful yet under-used customer connection tool, perhaps a little background and illumination would be beneficial.

Describing his online journaling, early Internet adopter Jorn Barger first coined the term “weblog” in 1997. As the practice became more widespread, the inevitable contraction, “blog,” made speaking about it handier and spawned at least two more new terms, “to blog” and “blogging.”

As blogging grew, innovators hastened to create new tools to make it easier to record and distribute ideas in the emerging—wait for it—blogosphere. Today blog readers can receive new posts over multiple platforms, plus begin commenting threads with the blogger and other recipients who have a point of view or question about the topic of the blog post.

Back to that “powerful but under-used” thing: Small business owners must appreciate the power of these three facts:

Small business owners are experts on what they sell, how it’s used, the industry, etc.
Customers want access to what experts know.
Increasingly, customers expect a closer connection to experts.

Alas, even though blogs deliver all of this, we still hear two whiney blogging excuses:

Excuse 1: “I’m not a good writer.”

Truth: Research shows customers prefer the thoughts and benefit from the experience and wisdom of the non-professional writer they know—that’s you—than those of a smart alec wordsmith like me.

Excuse 2: “Don’t have time.”

Truth: Once your blog platform is set up (you won’t believe how easy it is), new posts and responding to customer comments takes minutes a week. Remember, a blog post doesn’t have to be an article.

Practically speaking, a blog can be better than a website because your posts can be added more easily, making your expertise more compelling. And here’s the blogging goose’s golden egg: Blogging about what you know delivers your authentic expertise, which helps you build online communities where you connect with current and future customers in a way that’s increasingly more relevant to them than your website.

Don’t worry; you still need your beautiful website.

Start your blog this week and let the relevance begin.

Posted in: Online Content

Integrity has no need of rules

March 1, 2014 8:00 am , , admin

While talking with an attorney friend of mine, our topic of discussion was about professional behavior in the marketplace. She reminded me that attorneys have very specific ethical and professional standards that are published, plus a well developed monitoring organization, complete with sanctioning authority.

The story is quite similar for CPA’s, architects, medical doctors, or any securities representative such as stock brokers, financial planners, etc. Much of the behavioral track these professionals run on is pretty well spelled out for them. Not that the members of these groups need to be led or coerced into good professional behavior. It’s just that, when in doubt, they have published guidelines with which to refer.

Small business owners operate in the same marketplace as the so-called professionals. Indeed, they are often our clients and customers. We serve the same businesses and consumers as other professionals, plus we enter into similar relationships, contracts and agreements. And we often find ourselves perched precariously on the same horns-of-a-dilemma as other professionals. But here’s the difference: The Universal Small Business Code of Professional Conduct and Ethics doesn’t exist.

Small business owners, like all humans, ultimately behave according to their own moral compass, sense of fair play and inclination to deal in good faith. When we find ourselves in a quandary over how to respond to a difficult situation with a customer that is in the gray area of a contract, we’re on our own. When we are faced with an ethical issue that would challenge King Solomon, there is no sanctioning body or support group to dial up, or to whom we can email a “scenario.”

There are many ancient codes small business owners can turn to for behavioral guidance in the marketplace, such as the last three of the Ten Commandments. But in terms of a handy guide, I think philosopher and 1957 Nobel Prize winner for literature, Albert Camus, may have given us the best ethical vector when he wrote, “Integrity has no need of rules.”

Wise small business owners know that life is much simpler, and exceedingly more rewarding, when we just do the right thing.

Posted in: Business Ownership, Management

Don’t just manage change – lead it!

February 27, 2014 8:00 am , , admin

“There is a time for everything, and a season for every purpose under heaven.”

On its face, this well-known King Solomon wisdom, from the 3rd chapter of Ecclesiastes, delivers hopeful encouragement. But implicit in this passage is a somewhat hidden, and often troublesome paradox: A time for everything also implies nothing can be forever, and therefore, change is inevitable.

In the abstract, we accept the reality of change, but in practice we regard it like the medicine we know we need, but don’t want to take. And knowing change is inevitable doesn’t make the pill any sweeter.

In the marketplace, it was challenging enough to implement a change when we had the expectation of not having to do it again anytime soon. But in the 21st century, the bitter pill of change has acquired an unfortunate new characteristic: a frighteningly short duration.

Organizations that enjoy consistent success will make change an abiding element in their business model, rather than an intrusion to “the way we’ve always done things.” They’ll create a culture and environment where change can occur whenever necessary, without creating a casualty list.

Rick Maurer, author of “Beyond the Wall of Resistance,” conducted a survey of organizations that have implemented change. He identified four things they did to create a culture compatible with change.

Make a strong case.
Maurer found that “when change was successful, 95% of the stakeholders saw a compelling need to change.” Change must be accompanied by evidence of its importance. If you can’t make the case, perhaps it’s not the right thing to do — yet.
Establish the vision.
Maurer’s research indicates 71% of successful changes happened “when people understood the vision of the project.” Stakeholders should see the long-term benefits of change.
Sustain the changes.
The primary reason for failure, Maurer found, was “inability to sustain the change.” Sustaining change isn’t a sprint; it’s a marathon that must endure pressure from many sources and may be the greatest test of leadership.
Anticipate maintenance.
Successful managers recognize that it’s not in the nature of change to be self-perpetuating.