Many times we limit our opportunities to grow our business or organization by not looking outside of the perimeter of our present customer base. Too often we focus on the type of potential customer we have sold to in the past or the ones who belong to our competitors and ignore the noncustomers. We try to play the game of a cheaper price, better service or better quality.
In their book Blue Ocean Strategy, authors W. Chan Kim and Renee Mauborgne, give the example of how the company Callaway Golf created a huge demand for their products by looking at people who did not play the game of golf.
A Lesson from Callaway GolfHere is what Callaway Golf did. They surveyed sports enthusiasts and members of country clubs and asked them why they avoided playing the game of golf. Their answer was stunningly simple.It was too hard and frustrating for a novice to try and hit a little white golf ball with the small head of a golf club. People did not want to take hours and hours to learn and practice how to get good at this sport.
Once Callaway understood this revelation they moved into action to create a new demand for its’ products. What they did is they created the Big Bertha Golf Club. This club had a large head that made it much easier to hit the golf ball and to drive it a greater distance. Big Bertha not only turned noncustomers into customers, it also won over its’ existing golf customers to upgrade to the new drivers that Callaway had created. They wanted to improve their game and saw Big Bertha as the way to do it instantly.
Take a PollWho are some of the groups of people who are not using your products or services? How can you learn why they don’t use your products or services?
• Focus groups
• On-line surveys
• One on one conversations
• Ask your employees what they think
Once you learn what it is, you can change, add, or modify your products or services to meet the needs of your potential customer base. Then use the TMET formula:
T-test
E-evaluate
M-measure the results
T-tweak the product or service until it works
So, if you want to grow your business, follow the strategy of Callaway Golf. Look to your noncustomers for the answer. You might be pleasantly surprised by the results.
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www.businessworkforce.comTom Borg is president of Tom Borg Consulting, LLC. He is a business consultant, speaker, coach and author. He helps companies and organization become more profitable by increasing their value and lowering their costs through the professional development of their managers and employees.
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