Ten Common Mistakes That Destroy Value
1. Lack of a Clear Strategy: Many companies are not clear on what exactly they want to achieve, who it is they want to sell to, what needs they are filling, and how exactly they are meeting these needs. The result: lots of activity but little progress. 2. Not knowing why customers buy from them: A business can go a long time without ever bothering with this question and then something changes and nothing seems to work anymore. Without understanding this, a company is really flying blind. 3. Not knowing their key customers well: Generally a small percentage â€“ perhaps 20% - of the customers account for 80% of the profits. Do you know who these customers are? Do you have a strategy to delight them? 4. Lack of empathy for the customer: Companies spend a fortune trying to attract customers, and then they make it hard for people to do business with them. Do you make it easy? 5. Limiting Growth Opportunities: Because companies do not fully understand their Customers, they do not sell all the other things that they need or use, that could make life easier for the Customer. 6. Ineffective Marketing: The old adage: â€œHalf the marketing spending is wasted...â€? is true. Systematically capturing customer data and preferences to understand what works and why is the answer. 7. Not Optimizing Assets: Many key assets like brands, people, relationships, production and service capabilities, are under-utilized. 8. Undisciplined Approach: Testing, measuring, and adapting are the keys to continuous improvement. Deming had it right. 9. Inward Looking: Most companies focus on what they want to do. However the customer can only be understood by looking through her eyes. 10. Inconsistent Leadership: Without a consistency of approach, a clarity of direction, and a resoluteness of purpose, all that is left is frustration, demoralization, and poor results.