Monthly Archives: October 2023

Business Strategy, Survival Strategies , , , , , Leave a comment

Smart Choices and Good Decisions

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When you face a big decision whose outcome may significantly impact your business or life, what steps do you take, what routine do you follow, to help yourself do the right thing? Big decisions, especially, involve consequences and their after-effect can reverberate over the long-term. The decisions you make, delay, or avoid shape the path of your personal and/or professional life and for that reason, the ability to make effective decisions is a survival skill.

Business owners and leaders are called upon to make many decisions; most are routine, and some are high stakes, positioned to have significant impact on the direction and/or fate of the venture. It is therefore worthwhile to do whatever possible to develop skills and practices that support your decision-making proficiency. Below are practices that, unlike the whims of fortune, are within your control and can guide you along the path to decision-making success.

1. See the big picture

As you get ready to make the decision, be clear about what you expect the preferred outcome will mean for you and/or the business. Good decisions require awareness; the decision-making process fares best when you are attentive to the context in which it will be made, meaning key internal and external factors that can assist or impede your ability to choose the right path. Influencing factors are likely to include the competitive and economic climate in which your venture operates and in larger organizations, the level of support that stakeholders have for the initiative you are trying to advance.

2. Review desired outcomes

“Begin with the end in mind,” advises Stephen Covey, author of the phenomenal bestselling book The 7 Habits of Highly Effective People (1989). Your decision-making process has a better chance of seeing a happy ending when the decision is motivated by a realistic purpose that you can clearly articulate and defend. It is essential that you understand what you want to achieve and why. It is also useful to decide the criteria you’ll use to define success. Before you commit to a decision, create a mental picture of what your company (or life) will look like once that proposed choice is in place—in the near term and 12 months later.

3. Consider different perspectives

Escape the trap of your inherent biases and invite different opinions to the decision-making. Start with the obvious—stakeholders and end-users who will live with the outcomes, along with those who will implement the decision. If you have a team, include its members in the process, for they surely bring to the table expertise and experiences that will enrich your understanding of the big picture, as well as factors that could influence its outcome. The unique viewpoints and wisdom of your team could possibly show you that don’t know what you don’t know!

4. Leverage relevant data and technology

In today’s digital age, there is every reason to turn to technology-supplied data to provide trustworthy insights that are grounded in objective information to guide your business decisions. Data-driven decisions are usually the most successful. You may have a history of making good decisions based on what your gut tells you, but you’ll be better served to allow (relevant) numbers to validate the power of your intuition.

There are numerous analytic values readily available to provide snapshots of company performance that decision-makers need to see. Your decision may benefit from a review and analysis of the number of qualified leads per month, industry benchmarks, annual sales of your products and services and/or the average dollar amount of new contracts signed per quarter.

5. Avoid analysis paralysis

While good data is essential, as is objective thinking and keeping the purpose of the decision in mind, it’s also important to realize when you have sufficient facts and figures to commit to a choice. It often makes sense to set a reasonable time frame for gathering information, and once you have enough in hand to make an informed choice, move forward.

Trust your judgment and remember that in most cases, all the information you’d like to have will not be available; nearly every decision is haunted by unknown factors. Boost your confidence by creating conditions that will promote effective decision-making when you align your decision with the vision, mission, guiding principles (values) and brand of your organization.

6. Overcome fear of failure

Risk is a factor in every decision because results are not always predictable. Along with good information, luck, timing and intuition are often credited with a decision’s success or failure. All leaders understand that unfortunately, not every decision will lead to a favorable outcome.

Instead of fearing failure, embrace it as a valuable learning experience when it occurs. Do a postmortem and analyze what went wrong; identify the root causes and determine how you can avoid similar pitfalls in the future. When the experience is applied correctly, failure strengthens resourcefulness and resilience and over time will eventually enhance your decision-making skills. A decision gone wrong is embarrassing and disappointing but push yourself to make lemonade from the lemons. You might find a way to fail-up!

7. Practice decision-making consistency

Consistency in decision-making is key to building trust and credibility among your team. If your choices waver based on mood or circumstance, it can create confusion and erode confidence. But you may instead find it helpful to revisit the same, or similar, criteria that were used for a decision whose outcome was especially positive.

If the approach you took, factors you considered and certain friends and mentors you consulted led to a successful outcome previously, those factors, adjusted to fit the question at hand, might be successfully applied to future decisions. Why not experiment? When you’re next faced with a big decision, apply some or all of the criteria you used to approach the question, choose and study the data and seek input from friends or family who have a history of giving you wise advice?

You may discover that it’s useful to evaluate, say, three to five qualifying questions first, then another three to five questions that are customized for your decision? A decision-making protocol that considers the same factors each time will bring objectivity, standardization and reliability to your priorities and judgment and help you avoid getting swept up in the emotional reactions of either reckless enthusiasm or panic.

8. Hone intuition through experience

Decision-making is often considered both an art and a science. It’s a competency that goes beyond algorithms and spreadsheets — it’s about accepting risk and seeking wisdom from data, lived experience, good advice and intuition. Furthermore, learning to recognize when it might be the most advantageous time to make a certain decision is another plus—- when you have the luxury of choosing the time to act, that is.

By adopting a big-picture perspective, leveraging diverse viewpoints and integrating data-driven insights, you will improve your decision-making skills. As you gain experience, your subconscious mind will develop a sense of pattern recognition, meaning you’ll remember what works and so you’ll do it again. Use this intuitive sense to guide you when data is unavailable or inconclusive.

Thanks for reading,

Kim

Image: Chess Grandmaster Pontus Carlsson (Colombia born, represents Sweden)) vs. International Master Espen Lie of Norway (R) in Malaga Spain, 2008

Professional Development , , Leave a comment

Emotional Intelligence: The Foundation of Leadership Ability

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Emotional Intelligence is the capacity to recognize and respect not only how you feel, but also how those with whom you interact feel. Emotional Intelligence also helps you to manage your emotions effectively, both in your inner life and in your relationships. Alternately known as EQ and often portrayed as a qualitative, subjective yin (female) counterpart to the data-driven, measurable and objective yang (masculine) IQ, EI entails more than displaying empathy and being kind, or “sensitive.”

Ongoing research has presented credible evidence that supports EI as a different, but nevertheless valid and beneficial, form of human intelligence. Psychologists, organizational development specialists and leadership development coaches recognize EI as a core life skill that promotes one’s ability to deliver excellent performances, particularly in the domain of leadership. There is no absolutist blueprint, or model, that codifies EI, but there are variations on a standard theme that have been developed primarily by psychologists and organizational behavior specialists. I recently discovered the work of Emotional Intelligence researchers Daniel Goleman and Richard Boyatzis.

Goleman has written extensively on the topic of EI. He is co-director of the Consortium for Research on Emotional Intelligence in Organizations at Rutgers University in Newark, NJ and he is the author of Building Blocks of Emotional Intelligence (2017) a 12-primer set on each of the EI competencies that he co-discovered. He also offers training on those competencies through an online learning platform. Boyatzis is a professor in the departments of Organizational Behavior, Psychology and Cognitive Science at the Weatherhead School of Management at Case Western Reserve University in Cleveland, OH and he’s been recognized as a Distinguished University Professor there. He is a co-founder of the Coaching Research Lab and co-author of Helping People Change (2019). According to Goleman and Boyatzis those who aspire to become exceptional leaders will need to develop a balance of strengths across the suite of EI competencies. When that is achieved, outstanding business results will follow.

Goleman and Boyatzis see as EI consisting of four domains—Self-Awareness, Self-Management, Social Awareness and Relationship Management—and connected to each domain are 12 EI competencies. When you’ve mastered the domains and the competencies associated with each category, you will possess capabilities that allow you to be an adept at team player or a practitioner of inspirational leadership, as the situation requires. Below is a capsule view of the domains and the related competencies.

Self-Awareness

This domain refers to the ability to read and understand your emotions as well as recognize their impact on others. In short, self-awareness is a basic understanding of how we feel and why we feel that way. The more we are aware of our feelings, the easier it becomes to manage our feelings and control how we might respond to others.

Those who have nurtured their EI capabilities achieve objectivity through the self-awareness that this form of intelligence develops. Leaders who have developed a high level of EI promote productive and motivated workplaces that give all workers equal opportunities to shine.

  • Emotional self-awareness: I know what I am doing and why
  • Accurate self-assessment: I am cognizant of my beliefs and mental models
  • Self-confidence: I am aware of my abilities, including strengths and weaknesses. I trust my judgment and have a sense of control in my life. I set realistic expectations and goals, communicate assertively and can handle criticism.

Self-management

Also known as self-regulation, this domain can be defined as the ability to manage one’s actions, thoughts and feelings in flexible way, in order to produce the desired results. Optimal self-management contributes to a sense of well-being, a sense of self-efficacy or confidence and a sense of connection to others. You are able to control impulsive feelings and behaviors, express your emotions in healthy ways, take initiative, follow through on commitments and adapt to changing circumstances.

  • Emotional Self-Control: You are able to keep potentially disruptive emotions and impulses in check and maintain your effectiveness under stressful or hostile conditions.
  • Achievement Orientation: You intend to meet or exceed a standard of excellence. You seek ways to do things better and improve outcome. You reasonably challenging goals and take calculated risks.
  • Positive Outlook: You are able to see the positive qualities and characteristics in people, situations, and events. You persist in pursuing goals, despite obstacles and setbacks.
  • Adaptability: You have the flexibility to handle change and juggle multiple demands, as you adapt your ideas or approaches to new and unexpected circumstances.

Social Awareness

Social Awareness is the ability to accurately notice the emotions of others and “read” situations appropriately. It is about sensing what other people are thinking and feeling, to be able to take their perspective using your capacity for empathy. Those adept in the qualities of this domain are able to read another person’s face, voice, body language and other verbal or nonverbal cues that communicate emotion and help direct us as to how we should speak and otherwise interact with that individual.

  • Empathy: The ability to sense others’ feelings and perspectives, take an active interest in their concerns and recognize cues about what others may feel and think. Goleman further describes empathy as the cognitive and emotional processes that bind people together in various kinds of relationships that permit sharing experiences as well as understanding of others.
  • Organizational Awareness: The ability to read a group’s emotional currents and power relationships, identifying influencers, networks, and organizational dynamics.

Relationship Management

This domain pulls together and integrates the other three domains and creates the final product, relationship management. Relationship management can be used to influence those around us and guide or encourage them to make good decisions. You can sense other’s reactions to situations and then fine-tune a response to move the interaction in a positive direction.

Relationship management proficiency also addresses teamwork and other collaborations.
You’ve learned to use the skills acquired in the other domains to steer the group toward
the goal. Furthermore, proficiency in relationship management promotes the ability to effectively manage conflict. Those who become particularly adept in this area can see that conflict is forming and take steps to move others away from this and toward more positive interactions. Effective Listening skills and empathy are essential to deal with these difficult conversations.

  • Influence: The ability to have a positive impact on others, to persuade and convince others in order to gain their support.
  • Coach and Mentor: The ability to foster the long-term learning or development of others by giving feedback, guidance, and support.
  • Conflict Management: The ability to help others through emotional or tense situations, tactfully bringing disagreements into the open and finding solutions all can endorse.
  • Inspirational Leadership: The ability to inspire and guide individuals and groups towards a meaningful vision of excellence, and to bring out the best in others.
  • Teamwork: The ability to work with others towards a shared goal; participating actively, sharing responsibility and rewards, and contributing to the capability of the team.

You can evaluate and improve your EI skills. Goleman and Boyatzkis recommend a 360-degree assessment, to receive systematic, objective observations of your behavior by people who work with you. Incidentally, EI has been found to not correlate well with IQ or personality traits, but the two values are the best predictors of a leader’s effectiveness, actual business performance, engagement, professional and personal satisfaction. A 360-degree assessment tool that uses ratings generated by you and those who know you well can reveal your EI current strengths and suggest where your EI needs improvement. To best improve your weak spots, find a leadership development expert to coach you.

Thanks for reading,

Kim

Image: Philadelphia Flyers coach John Tortorella

Administrative , , Leave a comment

Should You Outsource? Think It Through.

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I’ll wager that the biggest obstacle Freelancers and small business owners face is limited time. There are so many responsibilities you must manage in order to keep the show on the road. Now look at the bright side—if you’ve got lots to do, it means that your business is growing and has the potential to grow even more. Your stumbling block is, most likely, that you have a small team (maybe just yourself) and you struggle to get your arms around a list of important decisions to make and other responsibilities that demand your attention. You may also have deadlines looming`.

You always assumed, but the point has now been emphatically made, that productivity is a key ingredient in the recipe for success. It’s imperative that you have the focus and ingenuity to develop goals and objectives that will promote your mission and then create and execute strategies and action plans that bring your plans to life. If you’re overwhelmed and stressed by an unmanageable to-do list, you’ll be unable to perform at peak efficiency. Circumstances will force you to make a change because at some point, every business owner must address the challenge of how to get the work done— on time, on budget and in ways that deliver a rewarding customer experience.

Spoiler alert—all potential solutions, including the choice of keeping the status quo (and eroding both the success you’ve created and your health), require that you spend money. The good new is, if you’ve objectively assessed your situation and determined how to efficiently handle your responsibilities, you will be positioned to increase productivity and business revenue.

Weighing your options

The process begins by confirming the tasks that must get done, acknowledging if anyone other than yourself can be reasonably expected to successfully perform certain tasks and documenting the number of days in a typical week you face a backlog of work. If you frequently work more than 50 hours per week, that indicates you’d benefit from bringing in help. If you frequently work more than 60 hours per week, that indicates you’d benefit from a full-time or part-time employee (W-2 tax form). If your need of assistance is more intermittent, for example, during the last week of the month or one or two afternoons a week, outsourcing (1099NEC tax form) is your best solution.

Make an honest assessment of your time, abilities, preferences and money. Furthermore, once you’ve decided which tasks are unsuitable for you, own the tasks that can be most effectively done by you. For example, it will likely be for the best that anytime the face of your brand must be represented, you, business owner, should be present. However, a number of office-based functions can be effectively handled by a savvy outsourced professional. An outsourced marketing expert will be able to suggest goals, objectives and strategies to jump-start growth in ways that the business owner may not immediately envision. A bookkeeper who has experience working with small or mid-size companies will not only bring the entity’s accounts up to a high standard of detail and accuracy but can also advise on issues such as cash-flow problems.

Accept that it may be too expensive for you to perform certain tasks if it diminishes your pursuit of billable hours. In general, if a certain task takes you or your team too long to do, it probably makes sense to outsource the function, especially if it’s something that must be done on a regular basis. Furthermore, if a task is highly specialized, it may make sense to outsource it to someone who spends their time immersed in that particular function and has a real expertise.

Consider outsourcing functions when:

  • You don’t have the ability to adequately perform the task
  • You have the ability to do the work, but dislike doing it
  • You have the ability to do the task, but the time needed to get it done is unacceptable (maybe because it’s specialized and you and your team lack the expertise)
  • You’ve realized how much billable time you’re losing by performing tasks that you could pay someone else to do (for less than your own billable rate).

Enable outsourcing success

Establish goals and define expectations for this new role in your organization, so that you can create a good experience for yourself, your team and the specialist(s) you bring in to provide outsourced services. It will be very useful to include in your productivity improvement journey an outsourced Human Relations professional who specializes in job analysis. This individual will discuss and confirm your recommendations of tasks that might be successfully outsourced and responsibilities that will be best handled by you, or current staff. Your outsourced HR adviser can also develop job specs, review and discuss your performance objectives and suggest the compensation you should offer to whom you’d like to hire.

Benefits of outsourced talent:

  • Cost: When you outsource certain tasks or services, you don’t have to pay the same wages as you would if you hired an in-house employee. Hiring outsourced talent is a way to manage fixed operating expenses as you nurture business growth. Furthermore, outsourced talent does not come with costs associated with in-house employees, such as taxes, insurance, holiday and vacation pay and other workplace expenses.
  • Efficiency: By outsourcing, you can free-up yourself and your team to focus on more important aspects of your business. This allows you to be more productive and get more done in less time.
  • Talent: Outsourcing is an attractive option when you need specialized skills or expertise only on an intermittent or short-term basis. Outsourcing gives you on-demand access to talent that would be impractical to permanently hire.
  • Scalability: If you have access to a larger pool of talent and resources, your business can scale up quickly without incurring the expenses associated with hiring W-2 employees or configuring additional office space, or even additional equipment rental fees. Chances are, your outsourced experts work remotely.

How to choose the right provider

When looking for the right expert to handle those functions you’ve decided to outsource, consider the provider’s specific industry experience. Choose providers who have excellent references and communicate well. When outsourcing critical functions or handling sensitive information, data security and confidentiality are of paramount importance. Assess the outsourcing partner’s security protocols, compliance with industry standards and measures to protect intellectual property. Evaluate their data protection policies, employee training, and physical and digital security measures to ensure the safety and integrity of your confidential information. Cultural fit and values alignment between your organization and the outsourced specialist are often overlooked but can significantly impact the success of the working relationship. Consider factors such as work ethics, corporate culture and shared values to ensure a smooth integration and collaboration.

Frequently outsourced functions:

  • Accounting and bookkeeping: Outsourcing accounting and bookkeeping services can not only save time, but also ensure that business cash is well-managed. You will be grateful when, for example, cash-flow is efficiently managed and you can make better business decisions. Moreover, you’ll be relieved to know that the business complies with tax regulations.
  • Human resources: Outsourced HR services can provide cost-effective solutions should you need to hire additional employees and decide whether the new hires should be brought in as employees or outsourced specialists. Your HR specialist can also create the job specs and refine your organization’s new customer or new hire on-boarding process, to ensure that all paperwork is present and written correctly and see to it that you present a seamless experience that reflects well on your brand.
  • Payroll: Outsourcing payroll services will save time and money by eliminating the need to close books or run reports after every payroll cycle. Regarding new hires and contractors, your outsourced payroll expert will ensure that all tax forms are sent in the on-boarding materials and that information to guarantee timely payment is included and signed by both parties.
  • Information technology: Outsourcing IT services can be beneficial for small businesses that need access to technical expertise without the overhead costs associated with hiring in-house IT staff. You must have a network that consistently delivers peak efficiency. Seamless and reliable IT performance is a necessity.
  • Customer support: Outsourcing customer support services can help your organization provide better customer service without having to hire additional staff or invest in expensive technology solutions that may not deliver the relationship-building personal touch that your organization needs.
  • Legal services: Outsourcing legal services can be a cost-effective way for small businesses to gain access to legal expertise without the onerous expense of paying to add the salary of an in-house attorney or law firm to your payroll. Depending on your needs, it may be smart to negotiate a retainer fee, if legal advice is a regular requirement. Otherwise, contact a business, patent, employment, or other attorney on an as-needed basis.
  • Marketing: Outsourced marketing services can be beneficial when you need help creating and executing marketing strategies, running campaigns and tracking results. Your outsourced marketing expert will introduce marketing automation to your company, or will optimize the automation system you have in place. This specialist will also maintain your social media accounts and ensure timely responses to comments and questions.
  • Web design and development: Outsourcing website design and development services can bring a level of design and technical expertise to your website that you and your team do not possess, even if coding skills are available in-house. Your inbound marketing and marketing automation depend heavily on an attractively, intuitively designed site that downloads quickly and operates efficiently. Your website designer may also provide technical support services that keep your site up and running, as noted above.
  • Virtual assistance: Virtual assistants provide administrative support services for tasks that may include scheduling appointments, managing emails, making travel arrangements and more–allowing small business owners to focus on running their business instead of getting bogged down with mundane tasks. Many virtual assistants offer specialist digital and social media marketing services, helping you attract new customers and some offer specialized accounting and bookkeeping services.

Thanks for reading,

Kim

Image: Stephen Root as Milton Waddams in Office Space (1999), directed by Mike Judge

Sales , , , Leave a comment

Stir Up Your Sales Strategy

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Because you have set up shop as an independent business owner, consistently generating sales of your product or service is central to your existence. Whether your company’s revenue is derived mostly from the sales of long-standing customers or from new arrivals (some of whom are referred by long-standing customers, I hope) and whether your economic landscape is brimming with opportunity or undermined by difficulty, the presence of a sales strategy that consistently produces revenue for your enterprise is a matter of survival. The performance of your sales strategy is not a phenomenon that you can leave to serendipity. It’s a vital sign that deserves your constant attention. Should sales become sluggish, or on the other hand unexpectedly vigorous, you’d better know why it’s happening. If the significant movement in your sales trend is anything other than a seasonal variation, it will be incumbent upon you to diagnose the situation and fix it.

As we’ve explored in this column over the past several months, B2B selling encompasses several factors. It’s a lot to keep your eye on, but that’s the nature of the beast:

  • A robust inbound marketing funnel that invites prospects to explore and consider your products and services
  • Communicating the perceived value of your products or services
  • Asking smart questions that invite prospects to share information that confirms what s/he hopes to achieve when using your category of product or service.

Building a robust sales engine that helps your entity survive the inevitable economic downturns is required of every business owner. Understanding your ideal customer, recognizing which Key Performance Index metrics are relevant, meaning you follow the numbers that reflect an accurate picture of business operations and diversifying the sales channels you use, all with the goal of increasing sales volume, are the primary components of a resilient sales strategy.

Even the invincible iPhone has a sales strategy because there is no product that “sells itself.” Develop and implement a successful sales strategy and you enable your business to not only survive economic challenges but also be positioned for growth and long-term success.

Define your ideal customer

To successfully navigate through business adversity, a deep understanding of your ideal customer will be your guide. You need to know who they are and why they buy from you, instead of a competitor. Along with basic demographic info, you should also comprehend customer pain points, i.e., buying motivations, plus the usual challenges they face and what they hope to achieve once their preferred solution is enacted.

As you discuss the needs of your prospects and the particulars of the project you’ve been hired to do, as well as other conversations you may have with the customer, you’ll be able to conduct in-depth research, gather feedback and eventually get a picture of your ideal customer and what matters most when your category of product or service is used. You research will enable you to create a buyer persona, a sophisticated reference document that identifies and describes your ideal customer, his/her motivations and behaviors.

By understanding your customers well, you can tailor your sales approach to address their specific needs. This not only enhances your value proposition but also establishes trust and credibility. When customers feel heard and understood, they are more likely to choose your products or services, even during challenging economic conditions.

Define and recognize success

A robust sales process relies on clear and measurable metrics. Key Performance Indicators (KPIs) are the metrics that become your compass, a roadmap of the numeric indicators of company performance. If business softens, following a data-driven approach to bring about a recovery is the best defense.

Identify and define KPIs that align with your sales objectives. These may include the sales conversion rate, number of new customers, number of returning customers, average invoice amount and sales cycle length. Regularly monitor and analyze these metrics to identify trends and areas for improvement. By having a data-driven sales process, you can quickly adjust strategies and tactics to respond to changing market conditions.

Identify new sales channels

Relying too heavily on a single sales channel can leave your business vulnerable during economic downturns. To build resilience, diversify your sales efforts by locating additional channels. Investigate both online and offline avenues that align with your target audience and industry.

So if you primarily sell products at pop-up venues, consider expanding into e-commerce and/or strategic partnerships with local stores. Diversification not only expands your reach but also spreads the risk. When one channel faces challenges, others can continue to generate revenue, helping your business weather downturns more effectively.

Utilize technology and automation

In an unpredictable business environment, leveraging digital tools becomes essential for sales resilience. Integrate customer relationship management (CRM) systems to gain insights into customer behaviors and preferences. These platforms enable your sales team to fine-tune your customer outreach activities, prioritize leads and enhance customer interactions. Additionally, consider automating routine tasks such as email follow-ups. Marketing automation not only ensures that every customer request receives a response in a timely and appropriate fashion, but also allows you to concentrate on building relationships that lead to generating revenue.

Finally, because your B2B prospects are not always available for either video or telephone meetings, it’s also wise to invest in virtual communication tools. Platforms for videoconferencing and virtual demos ensure continuous engagement with clients, bridging any physical gaps. By embracing digital transformation, your business is better positioned to navigate economic uncertainties efficiently.

Thanks for reading,

Kim

Image: © Wang Huazhong / China Daily. Shoppers browse for bowls at the Barkhor Shopping Mall in the Kham region of Lhasa in eastern Tibet.

Business Strategy , , , , , , Leave a comment

What Creating Value Means Now

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https://neilpatel.com/blog/create-value-in-b2b-markets/

When providing B2B products and services is the focus of your business, it has always been necessary to create, demonstrate value as a means to attract and retain customers. Perceived value, often delivered as convenience, simplicity or cost saving, is a time-honored motivating factor in this sector. Of course you understand this basic calculus but like everything else, as business conditions, technological advancements, shifts in population, or the cost of living are impacted by various factors, then how value is perceived will also evolve. To complicate matters, you can also throw in the question of how value can be not only created, but also maintained and expanded. To dive into this subject, I turned to marketing savant Neil Patel.

As I knew he would, Neil Patel provides a practical explanation of how the potentially confusing matter of B2B value might best be approached and delivered when instability is the order of the day. To start, he segments customer buying behavior into five areas and labels them as “particularly important for B2B markets since these customers are keenly aware of and interested in anything that gives them an edge or adds to their success”.

  • Response – The knowledge that someone understands your problem and is ready to solve it
  • Service – The ability to clearly spell out the details while eliminating all of the risk (or perceived risk). Can also affect the credibility and trustworthiness of the company depending on how well they handle service-related needs.
  • Quality – A consistent formula that results in well-made products or services that help the customer achieve their goal(s)
  • Price – An assigned value that’s clear, practical and competitive
  • Time – The product or service is dependable, has a sensible learning curve, demonstrates clear return on investment in a shorter period

Having identified factors that were identified as decisive in both his corporate practice, which includes global players such as Amazon, Intuit and Microsoft, as well as the work he does with much smaller B2B entities, he discovered an uncomfortable truth—B2B customers aren’t going to tell you what they want. In fact, they may not immediately recognize, or are unable to describe, the value that will activate their Buy Now button. Your prospects cannot paint a picture of what they’re really looking for and that makes it very difficult for you to offer reasonable solutions that might be evaluated. But the good news is that Patel recognizes that the five decisive factors that govern perceived B2B value can be measured and they can be impacted and improved.

You Are More than Your Product or Service

All of these things add to the core value of the product and/or service, making it so much more. Companies that fail to demonstrate the benefits of these things in ways that customers can understand and appreciate will find themselves hard-pressed to justify the value of their product – particularly where price is concerned.

Notice that there’s one (very important) factor I’ve left out of the value puzzle – trust. Trust supersedes all of the other motivations in this list – however, it’s not something that can be outwardly measured. If you don’t have the customer’s attention, you can build up all of the other facets as much as you like, and you’ll get absolutely nowhere with them. But building trust centers on ensuring that you have the rest of the factors presented in a way that’s relatable, understandable and most importantly, actionable.

All that will happen only when the five critical factors are in place and leading you to create value thar customers will recognize, when they see it.

All of these things add to the core value of the product, making it so much more. Companies that fail to demonstrate the benefits of these things in ways that customers can understand and appreciate will find themselves hard-pressed to justify the value of their product – particularly where price is concerned.

So Why Is So Much of “Creating Value” Focused on the Price?

A lot of discussions about creating value center on price – but this perspective is misleading at best. The truth is, all of the other four facets of value-building: response, time, quality and service, make it possible to justify the price. If the customer isn’t on board with any one of them, you’ll have a hard time closing the sale.

Competing on price alone is a race to the bottom for B2B companies

So how to you make sure that the customer doesn’t simply hinge on price? Follow these steps:

Discover What the Customer is Willing to Pay For

Notice I didn’t say “discover what the customer is willing to pay”. You can uncover a great deal about what a customer values by simply talking to them. They’ll make it abundantly clear if you ask the right questions, especially where previous vendors are concerned. Everything from technical support and training to white-label options is on the table here, and when you find a collection of things that’s high on their priority list, you can:

Hit All the Right Buttons

B2B buying decisions are rarely made by one person. You’ll need to have the whole C-suite, marketing, sales and other executive members of the team on board – and all of them value different things. Don’t hesitate to demonstrate how your product or service can affect a priority of the marketing department, save hours of time for sales and otherwise provide demonstrable ROI to the C-suite. With this in mind, perhaps most importantly, you should:

Sell the Results, Not the Features

Don’t just tell them about the benefits, let them envision the outcomes for themselves. Always remember that the first use of your product or service is in your customer’s mind. When you can communicate the ROI they get in real, measurable ways – whether that return is in profits, time saved or anything else the customer values, you’ll have their attention and most likely their name on the client roster.

Never Stop Improving

Finally, even if you’ve created a fine-tuned money-printing Value Machine, your work is still not done. Even though you’re not competing purely on price, if a competitor can demonstrate that they provide similar (or superior) benefits at a lower price, you’ll find yourself on the defense. In order to continually outperform the competition, it pays to have a finger on the pulse of not only trends within your industry, but trends within your customers’ industries as well.

Thanks for reading,

Kim

Image: Work crew drilling through solid rock to create the Panama Canal, Panama, 1906 (Everett Historical)