THE UNCERTAIN 15%: DISCPLINE #5 -NARROWCASTING THE CUSTOMER INTO SMALLER OFFERS - WILLIAM EASTMAN

Today's Show focuses on Part 2 of 3 on how to slice up a market in finer slices so you can Narrowcast Your Offer. Next week will cover (3) on How to Bundle Your Your Offer for increased sales and margins.

​PROFIT RADIO - "A Network of Entrepreneurs for Entrepreneurs"

Introduction
​We introduced the 5.15.80 Model at the beginning of the Season. It was a combination of research into small business performance and our practical experience from the last 2 decades. You could go to any area around the global with a market based economy and randomly select 1,000 companies, here is the distribution you would find: 5% or 50 companies that own their markets, 15% or 150 companies that are making money, and 80% or 800 companies that are barely surviving.

This series is about how to move from one level up and our concern in this series is the 15%, not how you get here which which is covered in the 80% series; the focus now is how to ACHIEVE market leadership and join the 5%.

LISTEN > ENGAGE > APPLY

Show Objectives
Today we continue Discipline 5 of the 9. As we covered in previous shows each discipline is presented in 3 parts. Today our focus is on how to take customer knowledge and make your offer finer or more narrow to better serve undermet or unmet needs.

Key Issues - Owner Perspective:

1. What should I do to refine what we are selling to customers that improves results and expand our offer?

What You Need to Know
Usage Segmentation

• ​What problems does your offer solve?
  • Don't aggregate - separate each solution as a potential product and/or service;
  • Don't aggregate - separate each customer of your customer as a potential product and/or service
• What problems does your offer fail to solve that is within your capabilities?
  • Don't aggregate - separate each problem as a potential product and/or service;
  • Don't aggregate - separate each customer of your customer as a potential product and/or service

What You Need to Do

1. Research what is working - does any of your current competitors or any other organization offer these solution?
   1. What are the features, level of quality, and price point for products and/or services you want to build?
   2. Two lists - what you are currently doing and what you are missing
2. Core Competence and Manufacturability
   1. Do you have the expertise to upgrade or produce a new product and/or service?
   2. How easy will it be for production and back office to make the changes?
3. Build a QFD (Quality Function Deployment) - a chart that matches customer based features with your technical requirements.
4. Analyze the size of the market.
   1. Selling to current customers - price at volume: breakeven and target profit contribution
   2. Selling to new customers like the current base - price at volume: breakeven and target profit contribution
5. Select a customer for beta test - do not build on spec, codevelop with somebody.
6. Decide which opportunities to start the design and development phases.​
7. What impact does this addition have on your Offer on branding, marketing, and selling?

Next Week - Part 3: Discipline 5 of 5.15.80: Bundle, Bundle, Bundle

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Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.