Most companies are in such a hurry to make money or attract new clients that they miss some of the fundamentals. There is a story that when Vince Lombardi took over as the head coach for the Green Bay Packers he joined the team on the practice field for the first time. As he watched the players going through their drills it was sloppy and less than impressive. He called the team into a huddle and holding up a football said, “Let’s get back to basics. This is a football, those are field markers and I am the coach.” Setting a course to remind ourselves of what is needed to become successful in business or in live is a decision to evaluate your processes regularly. In working with many businesses over the years I have identified six common traits of companies and owners that cause them to lose business. To neglect these issues is to carry a bucket with a large leak and be surprised where the water went upon reaching your destination.
Reason #1 – Neglect of current customers. In fact, when research has been done of consumers and asked why they chose to change from one provider to another, they identified many of the organic reasons such as death, moving, a family/friend entering the field of business. But 68%, the largest single reason? They felt the company didn’t care. What are you doing to maintain a positive relationship with your clients?
Reason #2 – Competition. Companies often view those who provide the same service or product as inferior to their own offerings without seriously taking into consideration the realities of their competition. Evaluate your competition as to how you differ but also consider what they are doing well. Is it price, convenience, quality, personality or what? Then make adaptations to address your findings in order to stay in the game. To say you are better because you care or offer a personal touch is valuable. But don’t all businesses make similar claims?
Reason #3 – Capacity. Often we are driven to building a business but are not really prepared for success. In this sense a company can lose business to competition, but you should never lose it because you are unable to fulfill orders. It doesn’t matter if you sell things or provide services, when an order comes in your process for fulfillment should be clean, smooth and timely. Taking too long in the mind of your prospect to meet a request is a knife in the heart of your business. While they might buy the first order, they will not return.
Reason #4 – Poorly Organized. Companies who lack adequate structure to support their vision will crumble under its own weight. This means orders are lost, follow up is impossible, there is no strategic plan for building the business and worst of all the company is stuck in a reaction mode. Energy is expended running back and forth rather in development. Manage your data, form alliances with other business owners to which you can share opportunities and have a plan for each day, week, month and year.
Reason #5 – Lack of Follow Up. Similar to the some of the reasons for loss of business this comes right to the heart of the matter with quality control and creating a repeating sales environment. Companies in such a hurry to find new leads and new prospects overlook the treasure chest provided by past clients. Imagine your children only talking to you when they want something and ignore you the rest of the year. That is a dysfunctional relationship and the same is true in business. Are the only time you reach out to your customers is when you want to sell the something? Once you address this issue you should keep in touch with your past clients and offer them opportunities to engage with you both from a profit and personal stand point.
Reason #6 – Too Slow to Meet Expectations. We are in a business environment where speed is everything. After all the internet provides instant answers, easy of ordering and simplicity of payment. Rather than complain about the internet for which you can do very little about, consider how you can streamline your process and make it fast. You may need to reduce choices or offer the fast moving types in a different format. Find the way to make it happen so your customer isn’t saying I should just get it online.
Embrace and evaluate how you match up to these challenges. Do you have a strategic plan that helps keep these issues in the forefront? Do you evaluate your strategy and adapt to the environment? All six of these reasons can be developed more fully even if they are implemented currently.
