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7 July 2023

Does your back end match your front

Does your back end match your front - The Value Engine

Does your back end match your frontโ“โ“โ“

If you’re set on growing your business to give you the freedom and rewards you deserve, you gotta ask this one.

Ok, tell me more…

๐—Ÿ๐—ฒ๐˜’๐˜€ ๐˜€๐˜๐—ฎ๐—ฟ๐˜ ๐—ต๐—ฒ๐—ฟ๐—ฒ >>


Who’s your perfect customer?

What is their big need or problem?

How can I satisfy that need again and again, repeatedly?

How can I do this better than anyone else and for less?

The key is making sure your customers’ big need, your solution and your delivery model are in sync.

Let’s unwrap this with some examples:

๐Ÿ’ก๐Ÿ’ก ๐—Ÿ๐—ถ๐—ฑ๐—น ๐—ฎ๐—ป๐—ฑ ๐—”๐—น๐—ฑ๐—ถ

These guys are after value-focused customers who need more for less – the satisfy that need by having smaller stores, turning stock fast and therefore, having the lowest operating costs in the sector.

๐—–๐˜‚๐˜€๐˜๐—ผ๐—บ๐—ฒ๐—ฟ๐˜€’ ๐—•๐—ถ๐—ด ๐—ก๐—ฒ๐—ฒ๐—ฑ = low-cost groceries
๐—ง๐—ต๐—ฒ๐—ถ๐—ฟ ๐—ข๐—ฝ๐—ฒ๐—ฟ๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐—ฎ๐—น ๐—”๐—ฑ๐˜ƒ๐—ฎ๐—ป๐˜๐—ฎ๐—ด๐—ฒ = Having stores with lower operating costs

๐Ÿ’ก๐Ÿ’ก ๐——๐˜†๐˜€๐—ผ๐—ป

Dyson makes more innovative products that do the job better – how? By investing ยฃยฃยฃ in R&D, creating better solutions and protecting their intellectual property.

๐—–๐˜‚๐˜€๐˜๐—ผ๐—บ๐—ฒ๐—ฟ๐˜€’ ๐—•๐—ถ๐—ด ๐—ก๐—ฒ๐—ฒ๐—ฑ = A cleverer solution which works better
๐—ง๐—ต๐—ฒ๐—ถ๐—ฟ ๐—ข๐—ฝ๐—ฒ๐—ฟ๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐—ฎ๐—น ๐—”๐—ฑ๐˜ƒ๐—ฎ๐—ป๐˜๐—ฎ๐—ด๐—ฒ = Excellent R&D and good IP, so their products work better

Ok, that’s the theory; simple, what goes wrong in practice?

Here are the two pitfalls I see most:

โ›”๏ธ ๐—ฃ๐—ถ๐˜๐—ณ๐—ฎ๐—น๐—น ๐—ข๐—ป๐—ฒ โ›”๏ธ Trying to serve lots of customers and do lots of things

Do this and you end up being the vanilla choice and usually get stuck with higher-than-necessary operating costs as you’re trying to satisfy lots of significant needs, which means lots of capabilities and that’s expensive, leading to weak margins and so-so sales.

๐Ÿ’ก๐Ÿ’ก The solution – get hyperfocused on who your serve, the value you create and how you do this profitably.

โ›”๏ธ ๐—ฃ๐—ถ๐˜๐—ณ๐—ฎ๐—น๐—น ๐—ง๐˜„๐—ผ โ›”๏ธ Focus on what you do and not the customers’ big need

Argh, this is so easy to do and happens constantly. You focus solely on what you do, be that printing, digital marketing, or architecture, and because you’re not focused on the customers’ needs, you risk creating the wrong solution or competing on price.

This is the norm out there and it’s understandable, do let this sit, and get clear on who your serve, and the value you bring. Then optimise your business around delivering that repeatedly and profitably.

๐Ÿ’ก๐Ÿ’ก The solution – Start with the customer and work backwards, talk to them, discover their unmet needs and solve them.

Feeling a bit overwhelmed – yep, I get it, but time focused getting your head around this one is well spent, and it’s much easier than it first sounds.

Give me a shout if you’d like to chat and get a few thought starters.

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