Published in: Printing Industries of America, Inc., Sales & Marketing Advisory, May 2000
Last month, Sid discussed the need for basing business decisions on the requirements of the customer. This is the second article in a series of two.
Introduction
Our ability to successfully generate new business and customer development – through elevation of our company's differentiation – ultimately depends on customization of our product and service programs for select customers. This customization is not merely acceptable images at competitive prices, delivered on time. That's a given, and it's expected. What might this customization of product and service programs to select customers look like – as it's practiced?
Some examples
A small but fast-growing commercial printer in a historically depressed textile town chooses to work primarily with customers who are willing to make a mutual commitment to him. He not only travels to customers' trade shows, but he stores their promotional products, maintains their customer mailing lists on his computers, and supports their advertising publications' business reply cards with follow-up calls, documented for customers' field sales managers. He also primarily works from pricing matrices for orders and alteration charges.
A prepress service bureau has created a "help-line" on software and file preparation that's available to its customers. The company also schedules and promotes weekend production for emergency turnaround work (much of it for commercial printers) and has installed a proofreader. None of these three services were in place two years ago – and new business is growing.
A forms printer guarantees 48-hour shipments to select customers who represent over 40 percent of its business. Standards of communication and execution have been created between its customers and its customer service personnel. This select group of customers must qualify through certain requirements to receive this type of service.
A flexo-label printer looked at both its local markets, which included scads of associations, and its customer lists – and with an outsider's prompting, realized that approximately 15 percent of its customer and prospect base and 10 percent of its potential suppliers needed new product development and testing. The wildest part of this picture is that the company president loves to innovate. Up to 15 percent of the company's total production is now committed to new product development, the largest source of new business.
A two-color commercial operation's owner is passionate about the environment. The company's monthly newsletter has at least 50 percent of its copy space committed to informing print buyers of better options and choices for the environment. Partly because of the company's recognized commitment to its values, it regularly receives more new business inquiries than it can accept. Revenue growth regularly exceeds 15 percent per year.
These companies are all different, but they are similar in one distinct quality: they've developed a set of sustained and evolving services, grounded in their target customers' changing needs and values. Ongoing information gathering – and pursuit of those needs and values – is an invisible but critical activity, directed from the top. Several of those organizations are known for documenting and reviewing any customer request that is not responded to in a positive manner.
Customization on the frontline
Would you believe that most bookkeeping departments are capable of turning out numerous invoicing formats? Yet, customers are seldom asked, "Which invoicing format best suits your needs?" Only a few companies track the number of credits and re-invoicing situations that develop. Fewer companies encourage their bookkeeping departments to personalize their services for each customer. (Pity the competitor rep who never quite figures out the foothold the current supplier's rep really has through the A/P department.) Important communications with customers' A/P personnel are promptly shared with key customer contact personnel, like account executives and customer service reps. At this company, the sales rep also offers assistance to customers' business planning by providing annual purchasing information – by product.
At another company, electronic prepress records how different customer service personnel organize their electronic files in a log and schedule educational sessions at customers' locations – for purposes of improving customers' software skills, use of their computer resources, and file preparation. Sessions are documented to not only key buyer personnel, but also lead customer contact personnel. This documentation contains what was discussed and improved and the expected value to the customer's organization – plus the value of the time invested, including driving costs to and from the customer. Ultimately, everyone wins.
At the same company, the estimating team tracks actual costs experienced versus what was estimated from the company's estimating standards. Variances are noted, by customer, for future reference, in order to purposefully win more profitable work. (This is sometimes referred to as activity-based costing.) Also, staff follow up with suppliers concerning "what they learned that would be useful" when that type of work reappears from that customer. This information is passed on to the account executives, who review "what was learned" with buyers – for placement of future work.
At the same company, delivery personnel recognize that they are the company's last (and often first) line of defense with customers. They each carry a "customer profile log." Customer personnel and their preferences of a wide range of issues are documented. Delivery personnel have the authority to return any shipment for repacking that does not meet customers' expectations. Feedback to company business development personnel includes, by design, observations concerning competitors, buyers' voiced frustrations, upcoming new projects, and opportunities for follow-up. Deliveries are phoned in to the production plant for immediate taxing or e-mailing delivery details, including who signed for the delivered items and what time the delivery was made. It is no small footnote that these delivery people are often invited to customers' holiday parties.
Also, at this company, customer service can profile which customers want daily job status and inventory updates, including whether the buyer prefers a fax or e-mail. Important information experienced by customer service reps and account executives is regularly gathered and committed to a customer database for ongoing utilization. Types of information documented includes anything that improves the customer's performance and/or elevates the supplier's uniqueness and value to the customer.
Further, account executives are required to read and file for future reference their customers' promotional literature and trade press articles. Customer business objectives and challenges are updated at least every six months. Senior management makes at least one yearly visit to key customers and prospects. And each target customer and prospect has a written business development plan that's updated and reviewed, quarterly or semi-annually, depending on the circumstances. There are few surprises, and if a prospect is not, "moving forward," it is reassigned.
Summary
The frequently asked question in our industry no longer is, "What do we do best?" All the buggy-whip suppliers should have taught us that question is not only irrelevant, it's potentially dangerous. Rather, we should all be asking, "What do our prospects and current customers need that we can engage – and positively affect?" Suppliers in this great industry who follow through from that last question can expect to succeed – because their customers want them to succeed. Others may simply watch and complain about the competition and unrelenting pricing pressures.
