Thursday, October 20, 2011

Don't Listen to Your Customers!

Now, you have never heard me say "Don't Listen to Your Customers," but as I was reading an article today I couldn't help think how accurate it was. According to Rich Kash, the chairman and founder of the Cambridge Group and co-author of How Companies Win, "If you wait to ask your customer what they need, you are already too late because they are telling your competitor the same thing they told you. You're at parity."

Further, he says "Companies should instead employ more precise tools, such as "demand profit pools," which organize customers into groups based on the "demand they want to satisfy, on the ‘why' behind the decisions they make and on the profitability they represent."

Now---this is a cool idea that nonprofits can 100% take advantage of. So, let's take this great article and think about how we could leverage this for nonprofit success.

This year as you go to strategic planning, divide your teams into two groups that will focus on those we serve and those that support us. Set up demand pools based on those groups rather than the organization as a whole. Then think about the demand you need to satisfy for each group, and the why behind the decisions they make.

For example-
In the those we serve group, think about:
- Why do the people we serve come to us?
- Why do they choose us over XYZ org?

In the those who support us group, think about:
- Why do people give to us?
- Why do they repeat give to us?
- What's in it for them?

Then we can think about the profitability each group represents.

Take-away: This year as you start your planning, don't wait for your customer/donor to tell you what they need, start thinking about what they need and delivering it before they even ask!

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