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Take a SWOT at all your key customers

Written by: Todd Youngblood

Article Overview: There is a reason some concepts stand the test of time. They work! The notion of analyzing customer strengths, weaknesses, opportunities and threats is one of those concepts you can't afford to ignore.

Take a SWOT at all your key customers

The logic underlying SWOT analysis is so obvious that it's often easy to lose sight of its power and value. The newest, least experienced sales rep in an organization can easily grasp what a sales manager means by a customer's Strengths, Weaknesses, Opportunities and Threats; and it's not very difficult to actually identify them. It's also not very difficult to engage customer personnel in discussing them. In fact, they tend to love it.

Since a firm grasp on a customer's SWOTs establishes you as someone truly interested in improving business processes and performance, it can dramatically improve your odds of closing deals. So here's a quick review:

• Strengths are business processes at which your customer truly excels. Remember that these aren't necessarily the strengths listed on their website. Don't take their word for it. They might be kidding themselves. Challenge them; make them explain it to you. Always steer the conversation to position your products and services as things that can help them exploit their true strengths.
• Weaknesses are business processes, at which your customer is average or below average. They're typically not too hard to identify, but discussing them could be a delicate matter. Be diplomatic! One good way to point out weaknesses is to talk to your customer's customers and get their perspective. Ask your customer about how those folks might have come to hold that opinion. And again, remember to position your products and services as things that can help address their limitations.
• Opportunities are situations out in the marketplace, tailor-made to require use of your customers' products and services. I've always been amazed that as an outsider, I've been able to identify opportunities that my customer's employees just don't see. It's a simple matter of having a different perspective. By definition you as a sales rep, are an outsider, and therefore can't help but think outside the proverbial box. Don't worry if this doesn't produce immediate results for you. Your reward will come in its own good time.
• Threats are situations out in the marketplace that can cause real trouble for your customer. As with opportunities, you as an outsider are frequently able to discern a threat more quickly and easily. Again, your reward will probably come later, but it'll be worth the wait.

In all my years of selling I have never come across a simpler, more effective tool for creating and sustaining meaningful dialogue with my customers. Have you taken a SWOT at your best customer this week?

Related Articles
  Use Creativity when Generating a SWOT
  How To Use A SWOT Analysis To Improve Your Business
  Don't SWAG Your SWOT!
  SWOT Analysis Tips
  To SWOT or not to SWOT?

Article Tags: business processes, delicate matter, different perspective, experienced sales, li li, logic, marketplace, odds, outsider, sales rep, simple matter, strengths weaknesses, swots, tailor, true strengths, ul



Related Forum Posts
Re: What makes a good business plan? - The SWOT analysis should be taken care of. I prefer using business plan software template myself and clients
Re: Marketing to Wealthy Consumers - Hi Russell - lots of great ideas so far! I haven't seen talk about referrals yet though. It's the most powerful way to reach more wealthy consumers if you already have an established base. I'm assuming that your customers may be repeat clients but there is a long time period between purchases (they don't come every month for a new item). Have you tried any referral programs for existing customers or thought of a way to stay in touch with your customers on a regular basis so at least they keep your company top of mind?
Re: Is A Business Plan A Waste Of Time? - [quote="Kevin":dzvusovb]... However, after reading some of Martin Lindstrom's "Buyology: Truth and Lies About Why We Buy"... I'm beginning to think that all business plans and traditional market research (i.e. using focus groups, surveys, etc.) are a total waste of time. No joke, I'm serious. Lindstrom says "That's because, just like market research, economic modeling is based on the premise that people behave in a predictably rational way", but "Most of the brain is dominated by automatic processes, rather than deliberate thinking. A lot of what happens in the brain is emotional, not cognitive." ("Buyology" pg 28). Basically, consumers will tell you one thing, and do simply do another with their unconscious minds.[/quote:dzvusovb] Please explain more. I get your point, but STRONGLY disagree with your generalized statement that bplans and traditional market research are a total waste of time. Statements such as this without sufficient evidence are dangerous to potential young entrepreneurs who might trust your opinion. The business owner who does their own business plan will find that it is not a waste of time. Think about the probable benefits from completing just one component of market research in a business plan: A comparative analysis of your competition. A wealth of information critical to planning your survival will be gained from a well organized SWOT of your competitors and their products/services. (SWOT analysis is certainly not limited to plotting logical decisions. Emotion can be factored in the analysis.) You know as well as I do that it has been understood for a while now that most buying decisions are emotional and nearly devoid of logical decision making. Many sources say that focus groups are an inefficient use of resources. Your conclusion that [quote="Kevin":dzvusovb]I'm beginning to think that all business plans and traditional market research (i.e. using focus groups, surveys, etc.) are a total waste of time. No joke, I'm serious.[/quote:dzvusovb] because focus groups are found to be inefficient is wrong. Your logic is faulty. You must qualify your statement more.
Firing your customers - We all work so hard to bring on new customers and generate new revenue but sometimes certain customers are just too difficult to deal with and can be a drain on your time, energy, and resources. Have you had to fire a customer for bad behavior?
Re: Hi I'm new here - BIG WELCOME TO THE FORUM. I love it when someone other than Japanese is learning JAPANESE KAIZEN philosophy. And it's funny how Malaysian and Japanese are gathering at a Canadian entreprenuers forum. I've only worked for three companies in US after college, all Fortune 500. But they all care about shareholders and not so much about customers. They say they do, but not really from what I know as customer service and they nickle and dime from their customers feeling the pressure from their shareholders to make every quarter big. Companies here do many things to their customers simply "because they can". Sorry to get sidetrack as usual. Sayonara, Takuya


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