Growing and Measuring Growth

Just Tell Me Where It Hurts…

In sales and marketing circles you will hear a lot of advice about finding a prospective customer’s “pain point.” A pain point is the when and the why, the reason customers choose you: the point at which they realize you offer the solution to their need (their “pain”). I choose Lowe’s when I have a home improvement need because they’re comprehensive, generally helpful, and nearby; I choose a nail when I want to hang a picture because it’s simple, cheap, and readily available. The Mexican restaurant I choose most frequently, I patronize (when I’m hungry!) because it has the good fortune to be quite near to me, but mainly because my daughter, who rules our roost, loves their food and the fish they keep in a tank in the dining area. I’d bet they wouldn’t guess at least two of those pain points (Upscale Mexican restaurants satisfying small dictators? Fish tanks?). They’ve (probably accidentally) solved my pain points. This can be planned.

Today’s Experience Design case study: A friend is a loosely associated stakeholder in a local pub. They’ve got growth issues, as in they aren’t getting enough. My friend knows this and has been knocking around some ideas about how to pull in more patrons. We talked briefly about a somewhat gimmicky idea he’s had (it might have some merit), and then I asked the question not everyone is ready to hear: How about the basics?

How About the Basics?

My friend is one of many with an interest in the pub. I gave him a few thinking-points to go back to his group with, including most of the questions below. Try these to start your strategic thinking:

  • What is the growth plan for the business? In other words, how do you know you’re not reaching your target, and how will you know when you are?
  • What’s the overall Vision? Why are you in this business, doing it this way?
  • Do you know why current customers choose you? (This is their “pain point.”)
  • What is current business like (in terms of numbers, typical order, time in store, etc.)? Do you have regulars (fans), or once-and-done guests?
  • (This pub has a fairly captive stream of actual foot-traffic, actively NOT choosing them, so also) Have you asked about the habits of prospective guests who are not coming in? (Why are you not their solution to the pain?)
  • Do you patronize the pub when you’re nearby?
  • What’s your Internet presence like? (I did my homework–theirs is distinctly uninformative and uninviting.)
  • Are your signage and entry drawing people in?
  • What’s the atmosphere like (interiors, fellow patrons, noise level)?
  • Is your menu clear and inviting? Do guests have to guess at or hunt for information?
  • Have you anonymously evaluated the service?
  • How’s the food (the drinks, and the wait)?
  • Have you interviewed the bartender, the chef, and your servers to get their opinions of what is and is not working? Remember, these internal stakeholders may be much more in tune than office staff to the problems and the potential of your business–they interact with customers every day!
  • Before throwing good money at gimmicks, what efforts are you currently making in publicizing the business? What sort of return do you see on these efforts?
  • Have you devoted enough effort to the research and strategic planning that will tell you whether an (expensive) gimmick is the right step for the pub?

I invited my friend to suggest VisionPoints if they’d like help working on growing their business. Will I hear from them? Sometimes prospects are not yet ready to listen to your message. (Just like the patrons they want to draw in to the pub!) Their pain is not yet acute enough to see the need for an outside solution.

What would you add to this list? What basic points should owners and managers evaluate to discover the holes in their current Customer Experience? How do you find and resolve the “pain points” of your current and prospective customers?

Grow and be well,

Kelly Erickson


P.S. Still thinking about gimmicks? Don’t miss Seth Godin’s take on transforming gimmicks by adding customer value.

ROI: Can You Really Measure the Power of Experience Design?

This is part eight of 13 in the Experience Design 101 series. For links to all the articles in this series, click here.

 67 % of all consumer decisions are primarily influenced by word of mouth (McKinsey, via Buzz Canuck blog) (See Part 1 of this series)

 69 % of small business owners involved key friends and partners extensively in developing and marketing their products and services (National Federation of Independent Business) (See Part 2 of this series)

 94 % of the top 50 Inc. 5000 Fastest Growing Private Companies in America 2007 have been in business less than 10 years (Inc. online) (See Part 3 of this series)

 well over 100 % increase in interest in Experience Design over the past 3 years (as measured by Internet search frequency) (Google Trends, which does not yet give exact numbers) (See Part 4 of this series)

 6 % of the top 50 Entrepreneur Hot 100 Fastest Growing New Businesses in America 2007 have a Vision Statement on their company website (Entrepreneur online) (See Part 5 of this series)

 28 % of Internet users click on the first organic result that comes up in a search for their term (University of Utah) (See Part 6 of this series)

 48 % of small business owners still do not have a website (National Federation of Independent Business) (See Part 7 of this series)

Can you measure the power of Experience Design? Lots of marketers don’t want to do it, citing “brand equity,” “goodwill,” “share of mind,” and “raising your profile.” Don’t fall for this. What you want to know is, Will we make more money?

If you are willing to control for variables you can measure the Return on Investment of Experience Design, and you and your design firm will benefit from the scrutiny. (It helps to have definite implementation dates for the stages of your design, rather than a trickle of smaller changes.) If you already keep a close eye on your books, watch these key metrics to see the impact of Experience Design:

Top line:

Number of leads generated

Quality of leads

Time from lead to sale

Acquisition rate

Average number of contacts needed to close sale

Total sales revenue

Average dollar amount of sales

Customer satisfaction, loyalty, repeat business

Referrals

 

Internet/ Lead gathering:

Clickthroughs from email campaign or other advertising

Homepage visits

Average number of pages visited

Average time on site

Leads per (thousand) visits

Sales per (thousand) leads

 

Bottom line:

Cost per lead, cost per sale

Employee turnover, productivity, attendance, satisfaction

 

(See Part 4 of this series for definitions of these and other key terms.)

If you don’t already track these numbers, stop and immediately implement a system for tracking number of leads, close rates, and costs in your traditional and online lead generation. There are many relational databases designed to automate this tracking for you. You’ll save time, eliminate guesswork, and be able to quickly spot strengths and weaknesses in your marketing and sales efforts.

Measure these numbers at three and six months after implementation of your new Experience Design plan. It may take time to see the improvements, but many firms can start seeing improvements even sooner.

Grow and be well,

Kelly Erickson

 

Next up in the series: Part Nine: Firm growth (not) guaranteed

P.S. If you’re enjoying the Maximum Customer Experience Blog, subscribe today (at top left) and get updates delivered by email or RSS. It’s easy and it’s free!

Overpromise

Go ahead, do it. Everybody else is underpromising.

Overpromise, and still overdeliver. Delight your customers.

I don’t want you to create “close enough” customer experience, or even exactly-as-expected experience.

Focus, research, design, and create Maximum Customer Experience. It’s what firms experiencing maximum growth have in common.

Overpromise, and overdeliver. If you really orient your mindset to it, starting today, it will change the way you do business.

Grow and be well,

Kelly Erickson