Proactive Profits
This segment will help your business to be more proactive and more profitable.
Phil’s Profit Points™ in Brief:
Businesses are either reactive order-takers or proactive value providers.
Order-takers: high volume and efficiency, low relationship.
Proactive value providers: ask questions, higher relationship.
Customers want both.
I was driving home from a meeting in Yorkton last weekend and visited the local Tim Hortons for lunch. Antonio, the assistant manager, was working on the till. “How are you?” he beamed, enthusiastically. Caught a little off guard by his energy, “I’m fine” I replied. “Are you a father?” he asked. “Uh, yes” I replied. “Happy Father’s Day!” he said. Shocked but smiling, I determined right there and then that Antonio has never, and will never, work for Air Canada.
“Antonio, I’m hungry, what do you recommend?” I asked. “How about a turkey bacon club on a jalapeno bagel?” he suggested. I never would have ordered that in a million years, so I said “sure.” The sandwich was excellent.
This is how a typical order-taking, fast-food place can become a proactive value provider. Antonio’s conversation didn’t cost anything extra. And, it enhanced my customer experience. This isn’t typical of order-takers.
A good order-taker thrives on efficiencies and high transaction volume. For example, most drive-thru coffee shops or fast food places take customers’ orders and dole out coffee and fries, usually in under two minutes per transaction. In fact, I’ve conducted experiments and determined that it’s faster to go through a McDonalds drive-thru at lunch time than it is to go and stand in line in the restaurant.
Compared to reactive order takers, proactive value providers are, unfortunately, few and far between. I’m not talking about the hair stylist that out-books you for your next haircut. They’re just scheduled order-takers. Proactive value providers are not telemarketers or pushy salespeople. These are just organized and proactive order-takers.
The best proactive value providers are people that you probably already deal with, that you have a trusting relationship with, and that could provide more value and services to you if they ASKED QUESTIONS, made suggestions, gave advice, and helped you to be, feel, do or look better, personally or in business.
It all starts with a question to learn more about your needs, wants and goals. It does not start with “Can I help you?” In the business-to-business world, there are lots of proactive order takers but fewer proactive value providers. If you let your customer dictate what they buy and when, then you’re an order taker, regardless of how fancy your suit is.
If you fix break-downs, then you’re an order taker. If you prevent breakdowns, and maximize uptime and production and profits, then you’re a proactive value provider.
If you deal with purchasing, you’re probably an order taker. If you deal with the president, owner, or head of operations, then, hopefully, you’re suggesting ideas on how they can improve their business. You are then a proactive value provider.
Other businesses that shouldn’t be order-takers often become one, even when it isn’t in the company’s best interest. My plumber could make more money by servicing our furnace and air conditioner every year, but he waits for us to call. The yard guy missed a month of work (and revenue) this spring, because he waited for us to call.
Spending time with your customers, asking them intelligent questions and building your relationship with them will help you and your business to become more proactive and more valuable. It’s all about strategy and how you train your front-line people so that their actions are aligned with helping your customers to achieve a great outcome, even if they’re just buying a sandwich.
Tough Questions
What percentage of your revenues and profits come from proactive sales vs. reactive sales?
From the Piggy Bank
Reactive order takers try to maximize the transaction value. Proactive value providers focus on the lifetime value of their customers.
Have a profitable week!
