Part 7 of What a Go-To Does Differently: Adapts

This is the seventh installment of a multi-part series to talk about what a Go-To does differently from the me-too pack:

Now what?

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A Go-To Constantly Adjusts and Adapts

The world is continuously changing, and a Go-To keeps an eye on the horizon to constantly adapt to market conditions, evolving customer needs, and other factors that impact a company, like the economy, politics, regulatory policy, technology and so on. It even reinvents itself, when necessary.

A Go-To maintains humility and a healthy paranoia. I remember being in meetings with the senior leadership at Accenture when it was flying high with record growth and profits, and you’d have thought from the conversation that the company was on the verge of going out of business. The executives in the room understood that Accenture’s fortunes, like those of any company, could turn on a dime. The team took the same earnest attitude toward its strategic planning activity as a struggling startup does.

A Go-To also understands that, regardless of how unique its current offerings are, it will face competition. The market will invariably begin to fill up with me-toos going for a slice of that pie, so the Go-To must watch its back and work to stay ahead of the pack.

Technology companies, in particular, can’t stand still for three seconds before a competitor pops up or market conditions change. Oracle started as the only relational database company, but of course competitors came along, followed by new technologies. Though Oracle, by far, still maintains a solid leadership position in that space with nearly 50% market share, it is no longer the same company. It has built on its strengths to broaden into many technology and software solution areas, including numerous specialty niches, such as inventory management for communications service providers.

As of this writing, Apple, Google and Microsoft are the world’s three most valuable brands according to Forbes, but you’d never know it from the healthy paranoia pulsing throughout the headquarters of all three. None look the same as they did in the early days, and they all know that their offerings could become obsolete at any moment. They are always working intently on their next innovations.

A Go-To understands this: Companies that don’t change or don’t change fast enough often perish. As Andy Grove put it in his book, Only the Paranoid Survive:

…the person who is the star of a previous era is often the last one to adapt to change, the last one to yield to logic of a strategic inflection point and tends to fall harder than most.”

In recent years, some stalwarts within their markets, like IBM, have suffered for not embracing the trend toward cloud computing quickly enough. Over the next decade, it will be companies that don’t embrace the Internet of Things trend.

To really bring this point home, consider the S&P 500 Index. According to an Innosight 2012 study summarized in the briefing, “Creative Destruction Whips Through Corporate America,” an S&P company is replaced every other week; and whereas companies in 1958 stayed on the index an average of 61 years, today the average tenure is just 18 years. In the decade leading up to the study, over half of the companies had been replaced.

What This Means for You

Whether you are part of a large company or a startup, be sure you are constantly monitoring market changes and trends on the horizon and then analyzing how they might impact you. Look at what you need to do to adapt. The “Creative Destruction” paper I referenced above offers some pointed advice applicable to any company and talks about how P&G is doing it successfully, and I’ll be sharing additional tips in forthcoming posts.

Subscribe to the blog and stay tuned for some tactical how-to guidance.

Part 6 of What a Go-To Does Differently: Results

This is the sixth installment of a multi-part series to talk about what a Go-To does differently from the me-too pack. Remember that a Go-To is the market leader – the first name to come to mind when folks in the market think about a particular business problem and who can fix it.

The next thing a Go-To does differently profoundly affects customers.

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A Go-To Sells and Delivers Results, Not Products or Services

When you are pitching your offerings, it’s not enough to talk about the problem and what should be done about it – a Go-To also actively solves the problem for customers and delivers a result.

  • A Go-To provides, not just a product or a service, but the complete solution required to give the customer a business outcome.
  • A Go-To leads the customer on a journey and measures success in terms of business results delivered.
  • A Go-To’s sales activity is not transactional and “lead” oriented – it’s long-term relationship and account oriented.
  • A Go-To seeks to be the customer’s trusted business partner and has the customer’s long-term interests at the center of what it does.
  • A Go-To approaches the market with a set of targets it sees itself as best suited to serve and cultivates a presence among those targets – it builds a community of believers in its point of view and approach to solving the problem.

If you in need of a meal, Target will sell you the pieces – food, plates, utensils, etc. – and send you on your way.  A fine restaurant will sell you a complete, satisfying dining experience. Taking that several steps further, the Go-To local restaurant will do this and be a gathering place for birds of a feather, know your name, know your food sensitivities, make a custom dish at your request and send you special offers.

The most important dimension of this is that a Go-To doesn’t market a laundry list of generic services or talk in terms of “capabilities” the way most service providers do. It doesn’t sell functions and features the way most product companies do. Instead, it sells impact. The best ones offer a very specific, and sometimes even quantified, value proposition. It talks in terms of specific business outcomes – e.g., how much more quickly, less expensively or more profitably you’ll achieve your business goals and at what cost. A Go-To already understands your business problem and walks in with a prescription for solving it. A Go-To doesn’t answer your question of “What do you do?” with “What do you need?”

If customer dissatisfaction is a problem, would you rather buy software (or software as a service) that will track customer dissatisfaction, or would you rather buy an offering that says, “We’ll increase the net promoter score of your unhappiest customers by __% within six months”?

Would you rather buy from a public relations (PR) firm that charges a monthly retainer to execute a nebulous publicity program or one that says, “We’ll charge you $XX to achieve 100% aided awareness and 60% unaided awareness among your top __ prospects within the next year”?

If part of a large company, would you rather buy from a firm that says, “For a set fee of $__ thousand, we’ll review the bills you are receiving from your communications service provider and let you know if/when they are overcharging you,” OR would you rather buy from the company that says, “We are confident that your communications service provider is over billing you by at least __%, but don’t pay us a dime unless we find something. If we do, split the savings with us.”?

Side Benefit: Results Orientation Will Lower Your Costs

Because it is so focused, a Go-To is able to do all of this through efficient, behind-the-curtain operational excellence. It has a low cost of delivery relative to someone doing the same thing on a one-off basis through tools, processes and, technology. A Go-To hires and trains people focused on its area of expertise who can jump in and immediately add value. And it has a “trusted partner offering superior results” value system and culture.

Unlike retailers in the mid-1990s who jumped into the online channel as a side business, Amazon made the online channel its only business, initially focusing just on books. In fact, its operation was so efficient that, rather than create their own online channels, companies like Toys R Us, Target, Sears Canada, and Lacoste contracted with Amazon to run their retail websites. Another major key to Amazon’s success is its fulfillment operation, which reduces its shipping, inventory and other operating costs. Wired Magazine once called it, “the world’s most nimble infrastructure for the transfer of things….”

This fascinating video shows just how efficient their operation is, using robotics and analytics to fulfill an order with barely any human involvement.

 

What This Means for You

Use the above as a checklist. Where is your company currently falling short, and how can you redefine your offerings to be outcomes oriented rather than selling capabilities or mere products? Is there anything you can do to quantify your value proposition? Are you currently transactional, or do you take a longer-term view of your customers’ businesses and play a more ongoing, impactful role? And what can you do to create community among your customers – what can you do to build a following among them and between them?

If you’re struggling, there is more on this topic to come. Subscribe to the blog and stay tuned for some tactical how-to guidance.

More on the Advantages of Being the Go-To

I recently posted twelve reasons it’s better to be the Go-To than a me-too and then four examples of Go-To brands. Here’s just a bit more on they advantages of being the differentiated Go-To.

The greatest advantage is that you compete less on price, if at all.  In fact, you can usually command much higher prices than the competition, because you offer a unique approach and can promise stellar results. The buyer considers the benefits you offer to far outweigh your cost.

Another big advantage is that you are no longer part of the pack – you stand out. You are the first name that comes to mind when the buyer has a particular problem. And that buyer often will proactively seek you out, particularly when time is of the essence (as in the case of C. C. Myers when the freeway melted).

Often selling costs for a Go-To are much lower, because you’re not starting from ground zero in a sales situation. Your reputation precedes you, so you don’t have to work as hard as a lesser-known competitor to establish your credibility. You don’t have to prove yourself as much. You can cut right to the customer’s situation at hand and how you can help.

As the Go-To in a particular field, you wield great power and influence in the marketplace. You aren’t just part of the fabric of the industry, you sit at the top of the pyramid. You help set the direction of the industry. You have a vision others want to follow. As the Go-To, you are in a position to fundamentally alter the direction of the market.

Doesn’t all of this sound much better than scraping for business as a me-too and being pushed to cut your price?

Infographic: Four Go-To Brands That “Own” Their Markets

This is a follow-up to my previous post and infographic, “Twelve Reasons It’s Better to Be the Go-To Than a Me-Too.” As it illustrates, achieving market dominance as the differentiated Go-To in one’s market offers lots of advantages. I thought it would be fun to provide a follow-up with some well-known names that people in tech can relate to, though there are many, many more out there. Though all of these serve a variety of markets now, they all started with a laser focus on one core offering, establishing market leadership before branching into other areas. Once again, enjoy and share. Better yet, send me your own examples of Go-To companies.

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Strategic Marketing Infographic: 12 Reasons It’s Better to Be the Go-To Than a Me-Too

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Market dominance simply means becoming the Go-To brand for a particular market need and being so superior at solving that market problem that you are able to command premium prices, work with premium customers, and hire premium people. Any company, no matter its size, can pursue it.  Your goal is to get people to seek you out and have them so firmly believe in your ability to make a unique contribution that they will pay you whatever it takes.

The alternative is to be a me-too that has to scrape for business and compete on price.

There are at least twelve reasons it’s better to be the Go-To, and I’m sure you can think of even more. Enjoy the infographic and pass it along…

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Who’s On First?

I’m about to recommend an article. Marketers and designers: Print it and bring it to your meetings with each other.

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The other day I was interviewing a creative director and, once again, felt like I was part of an Abbott and Costello “Who’s on First” comedy routine.

It seems that whenever marketers, designers and even operations executives and VCs start throwing buzzwords around, like “branding” and “identity,” we get each other completely twisted up. Our lexicons contain the same words, but we use them to mean very different things. One of my biggest peeves is the way “brand” as a term gets abused and confused. We think we’re in sync when we aren’t. And we think we aren’t in sync when we are. That’s why I was excited to run across this fabulous article on the Creative Market blog, “Designing a Brand Identity.” It offers a very simple, clear explanation of the distinctions between “brand” and “identity,” for example. From now on, I’m going to distribute this before meetings to make sure we’re all on the same page and speaking the same language. Check it out. You may find it useful.

Creative Market Blog Identity article screenshot

 

What a Book in Gestation Looks Like

This is what a book in gestation looks like. 🙂

Book in Gestation - studio wall

All the walls of my writing studio look like this. What you don’t see is the massive expanse of tabletop space covered in research files and a stack of reference books.

After having to put it down for five years to tend to my kids, I’ve recently resumed work on my book. Thank goodness. Because every other day, I find myself wishing I could hand it to the person I’m speaking with and say, “Just read the book, and then come back if you still want help fixing your problem.”

Here’s the working title with a preliminary cover design:

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Would love your feedback. Does this sound like a book you’d want to read? Why? Why not? Add your comments.

It is a how-to book that will explain the Apollo Method for Market Dominance, a strategic marketing framework for how you go about differentiating yourself as the sought-after leader in your field. A key piece is selling full-on solutions to problems, not just piecemeal products or services. But that’s only the beginning.

It’s mostly for B2B companies that have trouble differentiating, esp. if they sell intangibles, software as a service, professional services, technology solutions, etc. It can apply in a consumer setting as well.

I think I’ll start posting chapter material here at some point for comments and suggestions, so subscribe to the blog for alerts, if you’d like to get first dibs.