How two similar services provide very different assistance, and what it says about marketplace distinction

Standing near the Apple Store's Genius Bar the other day, an overwhelming thought whacked me upside the head:  just listen to what these people are talking to the Customer Service people about.

Those conversations were in striking contrast to what I've heard many times at Best Buy stores, where the Geek Squad resides.  While I am an admitted Apple and Mac diehard enthusiast, I promise to be fair and keep the story aligned with the facts.

Four times in my life I've had the Geek Squad out to my house; not for me, but for my wife's desktop and laptop computers.  Each and every time it was for a problem:  viruses, poor connectivity, software glitch, etc.  Nothing seemed to work right, and finally the computer would freeze up.

Back when I didn't know any better and also owned a PC (unapologetic shot over the bow at Gateway and HP, whose hardware I still have in dusty boxes in the basement), my treks to Best Buy were for similar operating problems.  Each visit either resulted in the problem not getting fixed, or the problem got worse.

That's why I bought my Mac laptop six years ago, and it's chugging along just fine.

I recently decided to hang out near the computer Customer Service area at three local Best Buys, caused by my Apple Store visit and to determine if things had changed in the PC world.  I wish I could tell you it had - really - just like I wish I could report that American car companies have finally caught the Quality bug.  It's just not to be.

The Apple Store's customers were chipper, happily carrying on conversations with young technicians who could speak expertly while not talking over anyone's head.  They discussed transferring data from an old Mac to a new one, how to properly use I-tunes and the trendy new apps, and how to maximize their Mac experience.  The Genius Bar folks were not only geniuses, they were also friendly, sociable, and understood consultative selling very well.  They were presentable and fun.

Conversely, virtually ever conversation I heard at the Best Buys were along the lines of:  broken PCs, crashing, viruses, locked up/frozen, can't get the software to work, need more spyware installed, etc.  A few customers became angry, requesting a manager's presence in an attempt to get satisfaction.

Even the physical layouts tell a story.  Apple's Genius Bar area literally resembles a bar - stools and a counter where your personal "bartender" serves you.  This configuration connotes some serious Feng Shui.  By design, Apple puts you in a "service" type environment.

Best Buy?  There's a hole in the wall where one of those Whack-a-mole heads might appear occasionally.  You set your broken computer up there and hope that somebody sees you.  And this is the truth:  only one of four workers I saw actually smiled behind those counters.  That tells a completely different story that I'll bet you can guess.  Anyway, the customer has to stand, sometimes for a long while, although there were some chairs set off to the side.  

At the Apple Store you watch everything that happens to your unit right before your eyes. At Best Buy, it often goes behind the curtain where the mystical and magical Oz performs surgery.

Are the PC's operating problems Best Buy's fault?  Probably not, since their technicians have to be conversant with multiple PC lines.  The blame goes to those pesky PCs.  But - just my opinion - their technicians were nowhere near the quality of the Apple Store's people, and their department design screamed "Please don't watch!  This is really secret stuff we're doing to your stuff."  

Competitive Advantage?  Marketplace Distinction?  Category of One?  Uneven the playing field?  Differentiation?  Domination?

Apple knows what business their in, and it's not computers or cell phones.  Try Customer Experience, world-class service to support their world-class products, and image. Everything is geared around the customer's delight - not what the competition is doing.  

It's always better to innovate than evolve.

Two similar services used for very different purposes.  You make the choice.

The Crazy Uncle in the Corner: The extinction of salespeople as we know them

I have a good friend and colleague who skillfully uses axioms, terms, and phrases to get his points across to people.  So today I'm shamefully stealing one of his best:  The Crazy Uncle in the Corner.  He uses this term to connote "topics we don't really want to admit or talk about due to their sensitive nature - no matter how much good might result in discussing them."  

Therefore it's often better to just keep the Crazy Uncle in the Corner and ignore him.  This is somewhat analogous to The Abilene Paradox parable:  Ignore the obvious warning signs at your own risk and peril.

I am predicting today, July 14, 2009 that within the next decade salespeople - as they are currently defined and used - will become extinct.  

For all of you doubting Thomas's out there, I made a similar prediction in the late 1980s:  that the Teamsters and UAW would also become extinct by 2010.  I came close.  Both memberships are down over 75% since 1980.  Why?  There is simply no need for them.  They deliver no value.  The same job can be done as well or better by non-union workers.  Proof:  Toyota, Honda, BMW, Nissan, and other automobile companies make very high quality cars right here in the USA, with non-union labor.  And trucking companies like FedEx Freight and Southeastern Freight Lines have shown that non-union trucking workers can perform work at the same high level as their Teamster counterparts.  FedEx Freight and SEFL are both industry darlings.  Customers love them.

To be clear, I am not saying that non-union labor is a Competitive Advantage. It is not - all by itself.  Many companies have gone out of business with non-union labor, though non-union labor was not the cause of their demise. Rather, some (or much) union labor simply does not add value and can be done without.  There's certainly no Competitive Advantage in it.

I've been taking a formal survey - both of my own observations and others - detailing exactly what it is that most salespeople do, regardless of industry.  Go ahead, take the survey.  Please choose, from the following choices, what salespeople actually do - including those who work for you, serve you, or simply those you know well:

1. Order taker
2. Technician (high level of hands-on Product Knowledge; they measure, design, etc.)
3. Problem Resolution Agent (not problem solvers in terms of solving customer's needs, but rather one who skillfully navigates her own company to resolve customer issues caused by her own firm; you know who I mean:  they solve the 11th hour crises)
4. Customer Service Representative (processing tasks and making sure customers are taken care of.  Remember, Customer Experience is totally different:  that means stirring such emotion with customers that a strong personal connection occurs, a real identification with the company where fierce loyalty and high repetitive business results)
5. Business Development (with a high degree of success, can take business from the competition, and can consistently penetrate existing accounts, growing the business by farming the existing fertile ground)

My current survey shows that 96% of salespeople can be categorized as 1-4 above, or some combination of 1-4.  Surprising?  Not to me.  After 27 years and 36,000 hours spent in the Sales and Marketing vocation, I've watched it day in and day out, much to the detriment of many businesses.  That's why I say that unless under perfect circumstances, Sales Training is a gargantuan waste of money.  You can't teach a whale how to bowl.

And the truth is that those first four functions outlined above are quickly being repositioned as roles that can be more inexpensively handled by means other than a "salesperson."   Smart, progressive companies are way ahead of the curve on this issue.

Pretenders are being exposed in this downturn; salespeople who are classic 1-4. And their companies are suffering because of it.  What these well-intending people should really be are ... Account Managers.  Account Managers manage all of the peripheral customer "stuff" but are not responsible for revenue growth.  Pay them an acceptable salary, admitting they are administrative help.  

Real Business Development, on the other hand - slaying the sales dragon, so to speak - go ahead and pay them handsomely under whatever compensation system best fits your company.  I just happen to like the following model:   Fair Salary + Fair Commission + Quarterly and Annual Bonus.  Pay them well because they are one of the primary reasons for your top line revenue.

Real Salespeople sell.  As Jeffrey Fox says, They Bring RAIN.  They expertly translate the company's Competitive Advantage and Value Proposition into the customer's terms, creating a compelling bridge - and subsequent marriage - between Customer Needs and Vendor Value.  They understand the proven methods of Sales Process and Consultative Selling, and perform year in and year out.  They're hard to find - like great CEOs - but they do exist.  I know about ten of them personally - but that's all (out of over 300).

If you're a salesperson who's classic 1-4, either learn, perform, become an Account Manager, or get out of the way.  

If you're a business owner or top executive, and are interested in your company's survival, heed this advice.  It could save your enterprise.

Growing market share: What B2B can learn from Retail

In the retail consumer sales model (CPG - Consumer Packaged Goods) - think Procter and Gamble or Kelloggs - marketing takes on a much heavier responsibility (vs. B2B) because there is not a traditional sales organization acting as its sales arm.  Sales must be generated from perceived and real value. CPG companies invest heavily in R&D as one way of maintaining that competitive edge.

If you still have your head in the sand regarding the extreme ROI associated with effective marketing, consider that Pepsi does in fact regularly beat Coke in blind taste tests.  But, when each brand is known to tasters, Coke wins handily every time.  That is the power of marketing and branding done well.  One product may actually be better than another, but then someone like Coke comes along and unevens the playing field with stellar marketing.

Coke has a 42.7% U.S. cola market share vs. 30.8% for Pepsi (Beverage Digest's 2008 report). Coke sports a 53% world-wide market share of all cola sales. Now that's market domination.

Moral of the story:  if you have something that is truly better (and each of you think you do), that alone does not guarantee success.  And, as I'm fond of saying, just because you may be doing well does not mean that your company isn't vulnerable.

A product or service in the retail environment must be able to stand on its own two feet, independent of a sales force.  It must have a Competitive Advantage, some marketplace distinction that can be effectively exploited, driving a target market to it.  Pulling vs. pushing.

Does it make sense, then, to generally disregard consistent innovation of product, service, operations, fulfillment, and other critical company success factors in the name of delegating revenue growth to an unarmed and generally under performing sales force?  Will that model really provide you with the much-needed sales opportunities necessary to fill the current pipeline?

Think about it:  virtually every business I know (not all) is experiencing a 20-40% (or more) decline in business for 2009.  Logically, that means that while the overall available market share pie has certainly shrunk for most industries (available, potential revenue for each of us to secure), most salespeople and their respective employers have seen parallel drops in sales dollars. 

Why?  Because the majority of sales efforts have been powerless to grow their business in this economic downturn.  They have maintained the same level of relative market share, their performance simply riding with the ebb and flow of respective market tides.

Impossible to do, you say, to grow business in these tough times?  Consider Netflix, Hyundai, and SureWest Communications, who have bucked the curve nationally.  Each has experienced enviable growth within their industry.  For local proof, consider Meers Marketing (+75% 2009), Archer Technologies LLC (+60% in 2008, +92% Q1 2009), and The Mutual Fund Store  (+87% 2006-2008).  Each has successfully grown their market share, adopting an attitude of "I choose not to participate in this recession" and getting down to the important task of identifying what customers really want and need, and which solutions will satisfy those needs.

It can be done.  But how?

What's needed is a paradigm shift in how two very different important revenue growth strategies are valued - one old, one new.  The traditional model of delegating revenue growth to a sales organization is old and outdated, and is highly ineffective for a multitude of reasons (see my new book, "8 Reasons Why Sales Organizations Fail - and what to do about it").

Conversely, creating real Competitive Advantage - and learning new methods of how to successfully exploit it - is gaining great favor.  How cool is it when customers call you, wanting to know more about what you do, and how you can help them?

If it makes so much sense, why haven't all business owners latched onto this concept?  Because it's hard to accomplish, takes time, and costs some money to do correctly - and tight budgets and (many) demanding Boards and shareholders are not that far-sighted, no matter how profitable or proven a long-term strategy it is.  It's also a bit of right brain thinking, not the strength of non-creative CEOs and COOs.

But since this is a matter of survival, authentic dialogue is required.  Don't shoot the messenger.  Warren Buffet has been saying for years that he only invests in companies who have successfully created "competitive moats" around their companies, i.e. marketplace distinction.  I'll let his 30-year track record speak for itself.

It would do you well to heed this advice.  Arie De Geus once said, "Your ability to learn faster than your competition is your only sustainable Competitive Advantage."  In other words, it's best not to wait.

What will you begin doing today to differentiate your company and start winning the market share fight that you're already in the midst of?

Answer: Immobility. Question: What happens when many business leaders struggle to increase revenue?

There are 17,000 small to mid-size businesses in the Kansas City area.  While I haven't met all of them - yet - I've had the pleasure of speaking with many. One of the most distressing trends I see is that very few are doing anything about their revenue woes.  In fact, I personally know of 13 companies at the moment (annual revenues between $15-100 million) who are doing nothing about positively affecting their economic engine.  I also know of four who had rebuffed me earlier this year who are now out of business.

Their revenue growth plan?  To wait out the bad times and hope for the best.

Why in the world are they defaulting to that?  The answers are all over the board, and I'll share some of them below.  But if you ask me to boil it down to one common denominator, it is exactly what Al and Laura Ries describe in their best-selling book "War in the Boardroom:  Why Left-Brain Management and Right-Brain Marketing Don't See Eye to Eye - and What to do About It."

Nothing happens inside a company - nothing is approved - unless top management blesses it. That's a fact.  And if it can't fit on a spreadsheet, or can't be empirically proven with data, then what often happens is classic Left-Brain thinking:  the idea (or strategy) is dismissed.  No matter that their precious data and spreadsheets depict events that have happened in the past, there is very little discussion - if any - about the future, exactly which strategy will pull their company out of the mess their in.

As a former mentor was fond of saying:  You can't expense your way to profitability.  You must grow.

No matter how many successful examples exist of how creating real Competitive Advantage, and the communication of that advantage via effective marketing, results in market domination at a maximum - and double-digit profitable growth at a minimum - most business leaders reject it as a viable revenue growth strategy.

Ask them what the alternative is, and there's a blank stare usually followed by, "Well, the markets are coming back," or, "We're retraining the sales force (like it's their fault all of a sudden)," or, "We've cut back everywhere we can (huh?)."

Again:  IF YOU SILO - DELEGATE - YOUR REVENUE GROWTH TO ANY GROUP IN YOUR ORGANIZATION OTHER THAN TOP MANAGEMENT - CHANCES ARE GREAT THAT YOU WILL FAIL.

General Motors proved this.  If they had approached Quality as Dr. Deming taught the Japanese, and had not given away the farm to the UAW, that whole mess could have been avoided.  Instead, Waggoner and the rest paid lip service. You reap what you sow.

This particular post is meant to help business owners grow their top line revenue, so ask yourself how you measure up to the causes I've identified at the root of "immobility" (relative to taking action to grow the business):

• Revenue growth (achieving Competitive Advantage, marketing, sales, etc.) is not their area of expertise.  To be more accurate, to most its "theory," something magical that occurs by itself when times are good, but is the sales organization's fault when times are bad.

• Top Management is so immersed working "in" the business because tough times have required it, that they're not spending much time working "on" the business.

• They've never had to focus on revenue growth before, so they literally don't know where to begin.

• Because 95% (that number is accurate) of salespeople are Technicians, Customer Service people, Product Knowledge informants, or Customer Problem Resolution agents - and not skilled at Business Development - they can't grow the business though they're often tasked with the responsibility.  Said another way, they're being exposed in this bad economy.  Of course, if their company had achieved true Competitive Advantage, they'd have something to sell.

• Risk Averse and Fear of the Unknown.  If the top people can't touch it, feel it, or smell it, then it can't be real.  And they're not about to do anything that isn't a "sure thing" while cash is tight.  Investing in anything right now had better be backed up by a strong ROI business plan.  (NOTE:  while strong methodology and analysis exists in creating marketplace distinction and the critical marketing of that distinction, for many it is still too ambiguous to put any stock into.  Yet, Apple, Coca-Cola, Nike, and millions of small and mid-size businesses are successful every day using this strategy to create "Categories of One."  They win while others hang "For Sale" signs on their buildings.)

• A firm belief - based on a multitude of economic indicators including The Wall Street Journal and other leading media sources (yes, they're trusting of the media) - that if they hold on long enough, everything will just get better.

Look folks, your total marketplace pie may be smaller, but what's your current share of that market?  You're in a market share fight, so fight!  Don't just sit there!  Now is exactly the time to position your business for marketplace distinction.  That is what creates prospect and customer buzz, and that buzz drives people and their dollars to your doorstep.  

The alternative is sameness - slugging it out on an even playing field, using Price as swords.  Is that what you really want, to become (or continue being) a commodity?

What strategic decisions are you making today about forcing your company's revenue growth?

Know Thyself: the key to succeeding in today's tough marketplace

I spent four days last weekend in Syracuse, New York attending my 30th (!) high school reunion.  While a wonderful time was had by all, I was sure to schedule some alone time with a good friend who wouldn't mind visiting many of our old haunts.

It evolved into a case study to see which businesses had survived since 1979, and which had disappeared.  I knew before we even started our drive around town that the next question I would ask is, "Why?"  Why would people patronize certain establishments more than others, especially over a 30 year (or greater) time period?

First there was the Midas Muffler shop on South Salina St., site of my first car repair experience in 1978 (the 71' Dodge Polara's growl was keeping neighbors awake at night).  Then came Arctic Island across from Meachem Field, where the Valley Field Days were held every summer.  Arctic Island was the place to get the best ice cream in town, and where I got hooked on baseball cards as a youth.

But the place that held the most memories, brought the most joy, and created the greatest anticipation was Johnny's Pizza, a small shop tucked into the corner of Julian Plaza in the Nottingham/Drumlins area.

My friend Dave and I had just finished touring the old high school (OK, we "invited" ourselves in for a look around) when he said, "You hungry?  Want some Johnny's Pizza?"  I said, "That place is still around?  Let's go!"

In a driving rain (seems like it's always raining or snowing in my home town) we drove straight to Johnny's, telling tales from back in the day.  When we arrived, it was like time stood still.  Nothing had changed.  Not the storefront, the feel, the smells of baked dough and Italian spices.

Now my business periscope went up.  How in the world did this place survive? Horrible location, tucked back in a small cluster of stores well off East Colvin Street.  Its industry was pizza, for gosh sakes, that has seen more competition down through the years than, oh - I don't know - shoes and cars?  I mean, how do you make friggin' pizza distinct?  (there's a hint hidden inside that question, folks)

One of the first things we noticed upon entering was that the joint was fairly busy for a dark, rainy Saturday afternoon.  Good sign.  Next, there had been an expansion since I'd eaten there three decades ago.  Another good sign.  But how?  More importantly, why?

The service was average, though pleasant (strange coincidence:  the cashier was a young cousin of one of our classmates back for the reunion.  Small world, indeed).  The pizza was off the charts, just like I'd remembered.  A television showed a Luke Wilson/Jackie Chan movie, and a couple of families watched while eating.  Empty pizza boxes lined a nearby corner.

Nothing special.

Until we noticed the walls.  There it was, Johnny's Competitive Advantage, their true marketplace distinction.  The one thing that Pizza Hut, Dominos, Little Caesars, and Papa Johns could never duplicate.  Not in a million years. On the walls was the story of Johnny Pace, who in 1965 at the tender age of 14 began making pizza at Suburban Park, a family amusement park located in Manlius, NY, just outside of Syracuse.

Dave and I are both children of the 60s and 70s, and Suburban Park was like Mecca for area kids at that time.  The emotional bond is fierce for us both.  

Johnny's Suburban Park jacket hung proudly in the middle, its seams fraying with age.  There were countless pictures of the Laff House, Tilt-a-Whirl, and arcade.  One particular photo showed the entrance to the park - complete with a giant smiling clown face smack in the middle of the elevated marquee - an icon if there ever was one.  Dave was also taken aback by the small prize tickets displayed, those little rewards that would kick out of a machine after you'd done well at Skee Ball.

There are letters everywhere, taped on the walls, from locals and people like me - once local but now drawn back one more time - that spin stories of their fondest Johnny's memories.  And because Syracuse University is so close to the shop, there's an entire section reserved for our Orange heroes.

Johnny's Pizza has a soul.  Pizza is merely the vehicle, what they sell.  But it's not what Johnny's DOES for its customers.  What it does is take you down memory lane, passed from generation to generation.  And they know it.  It's by design.  The place smells of an archive.  They've done so well that an offshoot has expanded into various parts of the country (see the previous link).  But the original Johnny's continues to chug along near the intersection of E. Colvin St. and Nottingham Rd., providing a beacon for those of us who just can't forget.

This pizzeria was a bonafide legend from our youth, the Original, in a time when sameness has become the norm.  I advise companies on a daily basis to identify that which compels customers to do business with you, to Know Thyself.  This is not something that business owners and company executives can guess at, though they often try with dismal results. Determining the critical factors as to why customers buy - or why they might buy from you - is a science that is best handled by outside experts who specialize in this field.

Your secret weapon in any economy is to tap into the emotional buying triggers of your target market.  Johnny's does it by sharing its history, its origins, its very reason for being.  I will guarantee you that parents my age brought their children to Johnny's, telling the stories about tasty pizza and Suburban Park, watching the television in the corner, and creating a whole new generation of fans.  It's an experience to go to Johnny's.  An event.

What's your company's story?  Why do customers choose you?  What causes them to go elsewhere?  As I'm found of saying, the question isn't whether or not you're doing well.  The question is:  Are you vulnerable?  

Try this on for size:  if you think what you currently sell - software, real estate, services, hard goods - is why customers choose you, you are sadly mistaken. People still buy emotionally, and they're looking for something different, something that satisfies an emotional need.

According to Sales and Marketing magazine (2008 study), only 16% of salespeople achieve 90% or more of their quotas.  That means 84% of salespeople are underperforming.  That fits the Pareto Principle perfect - the 80/20 rule.

If you're relying on a sales force to drive your top line revenue, you're spinning your wheels.  Don't get me wrong.  Hire the best salespeople you can find - though most companies do a poor job of this as evidenced by the high churn rates at most companies - and train, support, and develop them well.

But in the end, it is your Competitive Advantage that will deliver your company to the promised land.  And not many companies that I've run into even discuss this critical strategic subject at weekly or monthly meetings.  You must "discover" what it is that makes you unique, that unevens the playing field, that causes customers to rave about you (or write about you in their blogs).

Get to Know Thyself, and turbo charge your top line revenue.

What's the most common area to concentrate on when creating real Competitive Advantage?

Welcome back, long-timers, and hello newbies.  We're shifting gears, so put your seat belts on. These tough times require speed ...

Enough with the education and academia, already.  If the definition - and benefits of - Competitive Advantage are not yet clear to you as the most effective core revenue growth strategy in existence, after all this time and all the explanations, we may have to send you back to read previous posts.  It's all right there.  Bon appetit.  

It's now time to provide you with strong examples of marketplace distinction - real companies who create real space between them and their competition and thrive with enviable, profitable revenue growth.  Of primary importance to you will be how they do it.

We'll do this over the next three or four Hamsters.

While today's (June 12) "On Competitive Advantage" Kansas City Business Journal column does highlight one local company amidst the recipe for success - Archer Technologies LLC - there is no way, no how that I'm going to give up the next column's highlighted company.  So mark July 10 on your calendars.  I promise you it will be worth the wait.  The in depth analysis that reveals how this firm continues to dominate their target audience is, well, special.

As for today?  Let's start here - Michael Porter wrote in his acclaimed, 1985 book "Competitive Advantage:  Creating and Sustaining Superior Performance," a company can only succeed by focusing on just one of three areas -

• Price
• Product 
• Service

Not many can compete on Price, nor would you want to unless your name is Wal-Mart.  That brings us to Product.  The obvious company who exploits this success factor is Apple.  They simply answered a consumer nation who asked, "Why do all PCs have to look the same?  Can we please have some fashion sense for our computers?"  While they were at it they made the devices easier to use, too.  And, of course, they took a look at the Sony Walkman and said, "We can do better."  The phenomenally successful iPod was born.

The hard truth is, though, that most products are the same.  Sure, there may be some differentiating features amongst the sameness, but very few companies redefine a product segment to the degree that it unevens the playing field, causing a market frenzy that beats a path to their door.

By their very nature, most companies are not very innovative.  Trust me.  After 25 years in sales, I've worked with over 1,000 companies.  Most leaders are risk averse, and innovation is not even on the weekly managers meeting agenda.

That leaves us with Service.  I know - no surprise.  But what does that really mean?  OK, no lecturing this time - but trust me once more.  High Quality and excellent customer service are expected these days.  They do nothing to set you apart, especially because most business owners and executives believe that their company's Quality and Service is a lot better than it actually is.

So let's talk about Customer Experience.  Yes, there is a difference.  Let me hit you right between the eyes:  how many times each month does top management meet to answer this question ... "How easy do we make it for our customers to do business with us?"

Crickets.

Have you ever heard of a company called Zappos?  The following is a true story:

A woman's mother was dying, and she wanted her to be comfortable during her last months. She bought seven pairs of shoes from Zappos, the online shoe store.  When the daughter received the shoes, only two pairs fit her mom.  She called Zappos to learn what the return policy was.  The answer was a required 15 day window.

During the next week, things got busy, she forgot to return the shoes, and sadly her mother passed away.

So Zappos did what any company would do.  Since they hadn't yet received the return from the daughter (they log those types of things, technology at its best) - and it was getting close to the 15 day deadline - Zappos called the woman to see if everything was all right.

The woman explained about her mother passing, and that she couldn't get to the UPS facility to arrange shipping.  Not a problem, said Zappos.  They called UPS, arranged for the return, and all went well.

Amazing, but the story doesn't end there.  About a week after the shoes were returned, the woman came home one day - approximately three days since her mother's burial.  On the front porch stood a large vase of white flowers, arranged beautifully.

The gift was from Zappos, expressing their condolences for the woman's loss.

Moral of the story, in case you missed it:  While a B2C example, this had nothing to do with sales training or some other manipulative corporate program.  Zappos has created a culture of deep caring for their customers.  It's no schtick.  I checked it out.  They encourage it, look for these types of opportunities simply because it's the right thing to do, and oh yeah - they also know that doing business in this manner will do more for customer loyalty and profitable revenue growth than all the advertising in the world.

Price?  Zappos ain't cheap, though they're not excessive, either.  Product?  Please.  I've got 37 places to buy shoes within five miles of my house.  

Service?  Customer Experience?  Company Culture?  Priceless, as they say.

There's a reason why we don't see more of this type of behavior at most companies, even though the rewards are exponential.  Anyone care to take a guess?  I teach it at my workshops.

'Nuff said.  What's your Competitive Advantage?  Always remember:  the question is not whether or not you're doing well.  The question is ... are you vulnerable?

Space: The Final Frontier (Star Trek, anyone?)

The blockbuster movie season has begun, and there's no bigger movie at the moment than J.J. Abrams' "Star Trek."  J.J. knew he had the unenviable task of attempting to resurrect an old franchise - updating it for today's young adults - yet still somehow satisfying the diehards who grew up with the show.

That older group, admittedly, would include me.  My brother's name is Scotty.  No joke.

Well, Abrams did it!  The movie is a wild success.  J.J. decided to innovate vs. imitating, emulating, and replicating someone else's vision (Best Practices, Going Back to the Basics - sound familiar?).  He has been rewarded handsomely for creating Space between him and his competition, realizing that it is profitable, top line revenue growth that drives the, ahem, Enterprise.

Yes, I'm going to boldly go where no man has gone before in this post:  drawing Competitive Advantage similarities to Star Trek's "space" theme.  Set your phasers on stun, and watch out for Tribbles ...

How much space exists between you and your competition?  

As a C-level executive or business owner, this is your responsibility and goal.  The size of that space creates the kind of marketplace distinction that inspires the passion that results in extreme customer loyalty.  

Buyers will always find a point of distinction … even if it’s only price.  And price knows no brand.

That critical, differentiated space shrinks as you emulate other’s Best Practices, or Go Back to the Basics.  There’s a reason why billionaire investor Warren Buffet analyzes a company’s Competitive Advantage to gauge whether or not he will invest in them.  

Owning marketplace distinction is catnip to investors.

Rather than engage with prospects and customers to bring their voice into your strategic plans and  processes, we often find ourselves competing with our competitors.  That creates evolution – small, incremental advancements that will do very little to set you apart.

Peter Drucker said it best:  while customer research was far more difficult to perform than market research, it was much more important.

Dynamic change is delivering new types of competition.  If your customers have become bored with you, then the end is nearer than one might think.  Familiarity breeds complacency.  There are dangers in doing "business as usual."  

Innovation rules the day (and correlates directly to meaningful revenue growth).

Revenue growth cannot be silo’d or its responsibility delegated to the sales organization.  That’s an old paradigm, and it doesn’t work.  Growing the business demands daily C-level attention, involvement, and sincere support since it is profitable, top line revenue that drives the enterprise.  

The matter of achieving true Competitive Advantage, as the company’s core revenue growth strategy, should dominate top management’s calendar.  This would be considered working on the business, which delivers greater ROI than working in the business.

To be clear, Competitive Advantage is not tired cliches about your business, is not determined by you (it's determined by your customers), and is the primary reason why someone decides to buy from you.  It is the only thing you are really in control of.

Only one strategy achieves all of the following:

•  Being freed from Price-based competition
•  Potential for a double-digit revenue increase within six months
•  Closes more deals, resulting in higher conversion ratios 
•  Margin protection and potentially margin increases
•  Compensation for an average sales force
•  Attracts investors
•  Marketplace Distinction, creating a Category of One

Which growth strategy will you stake your reputation and company’s survival?  

Sales Training?  I can assure you that your customer's don't hold that in high regard.

Be bold, going where most businesses do not - as Captain Kirk used to say - and gain marketplace distinction and all of the rewards that come with it.

Create Space, just as J.J. Abrams did figuratively in the movie Star Trek, and also literally - -  distancing himself from his competition.