Create A (possibly the) Competitive Advantage

Published: IPA Bulletin - July/August 2009

"It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change." - Charles Darwin

It was a revelation of sorts. Here was a traditional graphic arts supplier who did not have much cutting edge technology, was experiencing fierce pricing pressures, and was on a short lifeline while at the bank. Important to note is that key personnel were anxious and publicly willing to do whatever would keep current customers and their jobs as well as encourage two sales reps to bring in new business, which was urgently needed.

We began the weekly Business Development Team's group discussion with the question. "What type of information about your customers, if it were consistently developed and attended, would make you more valuable as well as the preferred supplier?"

My opinion is that the supplier who implements - on a disciplined basis - the process of acquiring and using pertinent customer information creates a competitive edge and barrier to which the customer's personnel will not only be grateful but also will defend when the occasion presents itself! Examine the following list - which is only a beginning - of "Buyer Opportunities." and then ask the question and accept the challenge: "Why haven't we done this, and how soon can we get this process in motion?'

Opportunities for Additional Information

When to contact/not contact: Most buyers have preferred times to work with suppliers, as well as time that is predictably set aside to attend to administrative stuff. Buyers will tell you that it is the rare supplier who asks, "When's the best time to call, return a call, and to not call?"

Who to contact/not contact: Most customer organizations are political in nature. As a supplier, we tend to learn whom we should contact - and not to contact - after we have contacted someone our buyer would prefer (sometimes strongly) we didn't.

Who and how to contact on weekends, at night, and holidays: Most of us face this issue - after we've needed to contact the customer with a question. Not being able to contact the buyer, we run the gauntlet of risk by having to either set work aside or select the "best guess," which is sometimes wrong! For all the "number crunchers" who read this article, a question to ask as you experience the value of how to contact a major account is "How many minutes of time and disappointed customers can we save by obtaining this information upfront?"

Preferred communication medium for quotes, daily job status reports, delivery schedule confirmations, invoices, and other important information: Believe it or not, not all buyers prefer email, and we have proven more than once that different communications' content call for different communications' media - at the same buyer! When we ask a client's CSR staff, "Do we provide customers with daily job status reports?" the answer we most often hear is, "If the customer asks for it." Why does the buyer have to ask for information if our central objective is to provide the buyer with differentiated, perceived value? Daily job status reports might be requested by the buyer by fax. That same buyer might prefer the quotes are verbal and then confirmed by email. Delivery schedule reports might be preferred by fax, and invoices might be preferred by email within 24-48 hours of a signed delivery receipt. Given different communications' content and buyer preferences, shouldn't out goal be to uncover additional opportunities to delivery additional value as well as differentiate our company to the buyer? We can't (and shouldn't) prejudge the preferred medium of communication for each content opportunity. Ask clients how they prefer to receive communications.

Special proofing instructions, and notifications: Many proofs need to be reviewed by more than one person. Yet, too many suppliers send proofs out without so much as a last minute email to the buyer stating, "The proof is on its way." Buyers often need to coordinate the review of proofs by multiple key personnel; yet, suppliers tend to want "lightening" turnarounds of proofs - sometimes only an hour or two is allotted - to meet a requested delivery schedule. This industry pattern of no commitment upfront of when to expect the proof or that a proof is on its way is an insult to both the buyer's intelligence and the supplier's sense of courtesy. Additionally, how many buyers really want more than one proof to facilitate multiple reviews by key personnel but have decided the hassle just isn't worth it? We don't know if we don't ask!

Special packing/labeling/delivery instructions: We once worked with a client whose delivery person was invited to more client Christmas parties than their sales reps. Investigation revealed that he had documented each customer's delivery and labeling preferences and refused to take anything from the bindery that wasn't packed and labeled correctly. (And, yes, the bindery didn't care for his 'performance standards.") When we conducted a customer survey, his name was mentioned more in returned surveys than any one sales rep or CSR! Customers (including warehouse receiving personnel, receptionists, and even security guards) have delivery preferences. This is an opportunity for someone to capture.

Anniversary dates: From the buyer's personal dates (e.g., wedding, birthday, previous promotions, and dates of employment) to the date of the first purchase order or invoice, there are dates that deserve to be acknowledged by a caring supplier. Additionally communicating - in writing - how much your buyer's company has bought over the last seven years and how grateful you and your suppliers are for the opportunities your buyer's company has provided will not only be "passed-around" to others in the customer's organization but also chances are the note might be framed and hung on the buyer's office wall!

What previous suppliers couldn't get right: There's always an answer to "What errors and miscues did suppliers, who are no longer here, never quite correct?" You can be sure your buyer's organization will be checking to see if the error (whatever it is) is repeated and to determine if they have chosen a smart, caring supplier or if they've mistakenly chosen another supplier who "can't get the step correct." Wouldn't you prefer to learn that insidious detail upfront - to be placed as part of "instructions" on the job jacket - rather than "after the fact?"

Previous errors not to be repeated: We've all heard the cry of pain, "I can't believe we did that again!" The only way I know to create insurance that previous errors don't repeat themselves is to document them in a customer profile format (hard copy or electronic) as a future and continuous reminder. Skip this step at your peril! Customers tend not to tolerate suppliers would repeat the same errors or who don't get complete information upfront.

Customer responses of what needs to be improved: A smart sales rep or CSR should ask targeted customers, with some frequency, "Would you help us by telling us what we need to improve (on this project) for the next time?" Positioned as a positive response, most buyers will give you something extra to work with, recognizing you aren't the type of supplier who accepts that "good enough is good enough" and that you aren't taking the buyer's preference for your organization for granted!

What should be improved next time: Suppliers often learn from producing a project something that can be improved next time. However, too often that information doesn't get documented to the buyer, and even worse, doesn't get documented by the supplier internally for follow-up. Only if you are passionate about seizing opportunities to improve what your customer receives is there a chance that "continuous improvement" is what you've known for and which separates you - in your buyer's mind - from your competition. 

Overs/Unders: I have heard the arguments with every twist imaginable, "They won't buy overs." Well, is there no use for overs? What does the marketing department send to prospective subscribers? Is your customer cutting the production run quantity in expectation of receiving overs? Does the distribution list change after the order (often it does!)? Did a promotion produce better than expected results so that more promotion pieces are needed? Bottom line: you don't know if your customer can possibly use overs unless you call and ask! Recommendation: find out which customers want to be called and asked, and then do it.

Invoice detail and format preferred: Different customers prefer different levels of detail and organization of invoice information. Why not make the good folks in the customers' accounts payable department prefer to handle your paperwork; and by comparison, make your competitor's paperwork look like something from a third world country. I believe in winning, and that sometimes means doing a better - even superior job - with the most mundane activities!

How samples should be managed: Some customers want samples, some don't; but those who do can be counted on to have preferences as to how those samples are packaged, labeled for future reference, and when they are to arrive. Of course, we probably won't know that type of "competitive edge information" unless we ask, confirm, and document what we hear!

What not to discuss: Sometimes our buyers have difficult issues they are struggling to personally manage. It may relate to a family situation; it may relate to a work or professional issue. When you learn of such a difficult issue that causes awkward and even difficult discussion moments with your buyer, document that information for the benefit of others in your organization as well as for your buyer.

Desirable work we're not receiving: Do we know the work that the buyer has not made available to us or which we've not yet been successful in winning? Do we know the additional opportunities we can still earn? Speaking personally, I want everyone on my team knowledgeable about the opportunities with our major customers that we're quietly, stealthily pursuing. And my experience and opinion is that most buyers want suppliers who are in pursuit of additional business and who know the way to win that work is to perform at higher levels.

Budget opportunities/issues: Many institutional buyers operate on quarterly budgets; additionally, many organizations - large and small - operate with project budgets. Where these conditions exist, they should be noted and followed-up. For instance, quarterly budgets provide opportunities to invoice in advance of work being produced in order for the customer to not lose their budget money. Additionally, work, such as predictably needed materials, can be ordered before they're needed. If a project has a budget, that information can be most helpful to your estimator for winning the project. However, most buyers need to be promoted by a knowledgeable supplier, who asks, "Would it be helpful for us to call you toward the end of each quarter to make sure that no quarterly budgeted funds are lost?"

Work we can request when needed: Some suppliers have earned what I call IOUs from preferred customers. These special customer-supplier relationships need to be nurtured by the supplier in an ongoing basis (sometimes referred to as "nurturing relationship equity"). We need to ask favors, if we've earned the right to ask.

Trade shows attended: If you have a major account in a certain type of business, would you want to become a supplier to a group of such customers? If yes, then there are few opportunities to obtain new business like a major trade show that a preferred customer attends.

Key suppliers: Suppliers of preferred customers tend to want to do business with other suppliers of their preferred customers. In other words, we need to learn who the major suppliers are of our preferred target customers since these major suppliers often represent additional major account opportunities.

Additional services: The more services we can wrap around a project we supply, the more attractive we are to the buyer because the buyer can often expect to accomplish more in less time and often at a lower price. Opportunity? Ask, at almost every opportunity, to quote on the additional services as a "single package," and not as separate, standalone quotes. This strategy tends to help the buyer see the opportunity for one supplier versus multiple suppliers!

Differentiated Value for a Competitive Edge

If you question the veracity of this beginning list of suggestions for creating a competitive advantage, mentally go over to the corner of your office, put on your "Customers' Opinions and Votes" mental hat, and ask, "How would my customers vote on this type of information system being created - information that provides target accounts and buyers with more value per cost, requires less of their time, and allows them to accomplish more (and most probably provides you with additional business opportunities)?

This isn't magic and it doesn't require you to buy a major piece of equipment or new technology. However, such a strategy does provide you and your customers with opportunities for providing additional, personalized value, which ultimately represents a differentiated competitive advantage.

However, I don't have a fantasy that every reader of this column will seize this opportunity to create more differentiated value for their customers in the name of their own organization. In today's extreme market environment, I'm all too frequently reminded of a cliche, attributed to Mark Twain, that seems to capture or at least describe one of our human shortcomings as business owners and leaders: "Progress I'm in favor of, it's change I'm against."

Change in your organization - to be more than the idea of the month - must start at the top if you want to remain viable to your most important business activity - serving, retaining, and creating customers!

Finally, if you implement this program, your cultural and performance quality will be noticeable to your preferred customers. Don't be surprised when one of these preferred customers ask, "Could you train our other suppliers in what you do and how you do it?"