How to Compete in Tough Times? Focus on the Customer.

Yesterday morning, I had the privilege of attending a presentation by Howard Hyden from The Center for Customer Focus. Howard spoke at the Centre Club to the CEO Council of Tampa Bay.

Howard’s energy and fervor were absolutely infectious. He had some terrific tough-love “Howard-isms” such as:

“The grass isn’t greener on the other side. It’s greener where you water it.” 

But, perhaps the phrase that summed up his talk best:

“Add Value or Stay Home!”

Regardless of which Howard-ism stuck in your mind most, Howard’s overriding message was clear: Stop focusing on the numbers and start focusing on the customer. In other words, dissecting the P&L week after week isn’t going to be the secret sauce for surviving the recession. Instead, focus on adding value by asking the customer what she wants.

Think you already know what the customer wants? Unless you mirror your customer demographic, you’re missing out on adding some serious value. Howard’s most stunning example came from a Midas Muffler shop. While the majority of its customers were women, a man designed the waiting room. You know the scene: burnt coffee, greasy fingerprints, 3-year-old editions of Car & Driver magazine and girlie calendars. A woman finally got a hold of the place and redesigned the waiting room, top to bottom. The room soon donned new curtains, toys for the kids, fresh issues of Better Homes & Gardens and flavored tea.

The result? A 43% increase in business.

The same customer-focused approach should be taken online. Are you focused on the promotion of the week or on improving that navigation that customers seem to trip on? Do you know what your customer needs when she arrives? Perhaps you can help her make a decision, find a product or teach her how to use the product she’s about the buy.

PWOM or NWOM? Howard spoke at length about Positive Word of Mouth (PWOM) and Negative Word of Mouth (NWOM). Once your site gets out of the user’s way and allows her to find what she needs, you’re headed straight to PWOM.

Make it easy for PWOM to spread:

• Include “Forward to a Friend” links on your site and product detail pages.
• Include Customer Reviews and testimonials.
• Build tools that make your site easy, informative and fun.
• Create and freshen content. Make sure your content is meaningful and engagingto your demographic. For example, just because your company cares about the new law regarding widget packaging, doesn’t mean it matters one bit to your visitor. A write-up on how the widget can solve their problem, however, will strike a cord.

Finally, the sure-fire way to add value to your web site? Ask your visitor.

Here’s where numbers can help in adding value. Reviewing high-level click-through rates and keyword volume can uncover some serious opportunities for improving your site. Listen to your visitors and you’ll see how small value-adds online can make for increased conversion.