Do you know who your customers are… really?

I worked with entrepreneurs yesterday at the I3M Event: Igniting Innovation in Michigan, sponsored by the Detroit radio station and CBS affiliate, WWJ.950. It was an excellent event. And since I have a high regard for stewardship, I try to give back to the local community in which I live. So there you have it.

And the most provocative question I asked, resulting in a jaw-dropping silence, was “Who are your customers?” Because marketing and selling and engineering to anyone and everyone is complete chaos, regardless of whether you are an entrepreneur or not.

However, as I told these talented entrepreneurs, there are so many mature businesses who have succeeded to the $2.5M gross annual revenue mark (and even to the $90M mark) who are undisciplined in terms of their marketing and sales program.

Now, you and your company are not going to turn down a “gift” project that seems to fall from the sky. However, when and if that happens, do you ask yourself what redeeming traits you and your company have that contributed to being awarded that project?  Because this new customer didn’t choose you or your company simply because you were the prettiest face. They researched your company, trust me on that one. The Internet provides a great deal of business intelligence that is available to everyone. And Owners are making sure they know with whom they are doing business.

There tends to be a difference between who you and your company does business with and who you and your company are best suited to work with. And your ability to define your target market (the folks you could do your best work for and cultivate) becomes critical to sustaining growth in this economy.

There also tends to be a difference between diversifying your customer base and having an open-door, y’all come policy to business development.  The latter typically results in having lots and lots of customers who tie up your engineering and production time with lots and lots of walk-in or scheduled small-scale projects that need to be slotted in between the larger-scale, longer term, more profitable projects. And these smaller projects can make up as much as 50-75% of your revenue stream in a heartbeat.

Does this sound like your company?

Diversifying your customer base is a disciplined approach based on analysis of your customer base and your deliverables. When’s the last time you or your company undertook this type of analysis?  When I asked my entrepreneurs, and even business owners of matured companies, again there was silence. And I don’t think I was asking such a  difficult question. But it’s the one area that so many businesses “don’t have time for” because they are busy meeting meeting payroll or creating three-year strategic plans.

Yup, it’s the end of Q3 2010. Wow. And how time flies.

It may be a good time to revisit who you are working for and where your marketing and engineering efforts are focused.  This exercise just may round out your perspective.

Think about it.

What types of professional meetings do you attend?

Hmmmm.  Perhaps the more relevant question is WHY do you attend the professional meetings that you attend.

We all realize that continuing engineering education is an important aspect of how we grow professionally.  How many of us take full advantage of continuing our education? Let’s face it, none of us has all the answers to all the questions, even if we are at the top of our game and a noted thought leader in our particular field.

So what type of meetings do you attend during the course of the year? And how often do you color outside the lines and go to meetings simply because they have interesting-sounding material that may, or may not, be related to your engineering field?

Do you only attend meetings that your company will pay for? So how’s that going? Many companies are cutting back on funding for employees to attend meetings, including training meetings.  Some folks have a budgetary cap on spending: once you reach it, you can elect to self-finance your attendance at subsequent meetings.

Then there are webinars and e-meetings. Some companies are looking into replacing the annual meetings (you know, the “y’all come” jamboree meeting where everyone converges in some city) with e-meetings as well.  This type of approach sure beats the one where only the top producers’ air fare and hotel are paid by the company and the rest of the troops have to pay to play. At least everyone can get the same education in an e-meeting, which becomes affordable and accessible.  OK, so an e-meeting doesn’t hold a candle to the social aspects of attending “the” meeting – if that’s really what you are into.

There are local and national trade shows as well. If you don’t feel that these shows are a source of continuing education, think again. They are pure Voice of the Customer experiences. Yes, these shows, like IMTS, are expensive to attend if you have a booth and are transporting machinery to exhibit. However, these meetings can be the basis of some great collaborative discussions if you ask good questions of attendees instead of feeling like you need to hawk your wares.  Let’s face it, selling is listening instead of talking. You’ve probably read enough of my blog posts to get that message loud and clear.

There are monthly dinner or breakfast professional meetings which typically are on your own dime.  The value of these meetings can vary depending on the type of organization and energy the local chapter applies to these meetings. Also, these meetings can end up being attended by a homogeneous group (e.g., everyone is an engineering or hi-tech consultant) which results in preaching to a choir – and a competitive one at that.

Then there are those “one of” opportunities where you attend a meeting that you hear about purely because it is on a subject you’ve always wanted to know more about. These little gems are high-value meetings because they make the best use of your time. You are interested and engaged.  Colleges, training centers, SCORE chapters and even the local business clubs have these types of meetings. You just have to look in the newspaper or online to discover them.

Perhaps friends and colleagues from the same or rival companies have created informal monthly breakfast / lunch meetings to talk “stuff” and collaborate for a change, instead of compete.  These types of meetings can really be thought-provoking.  Many folks in this setting will pool resources to bring in a guest speaker from time to time.

Of course then there are the certification and re-certification courses.  And I hope your company funds your attendance at this type of training.  However, if this context is your only means of broadening your educational horizons, I strongly suggest that you look at some additional formats which are discussed in this post.

The bottom line is that your time is valuable… to you. And while your company many not necessarily be in a position to underwrite all the meetings, webinars, seminars and training sessions that you would like to attend, it IS important to evaluate how you spend your time and which meetings provide the greatest value to you, professionally and personally.

You know, you can say “no” to attending one meeting in deference to attending another meeting that, perhaps, is off the traditional meeting grid of your higher ups. You just need to understand why certain meetings are more valuable, practical and just plain useful to you as you advance your career.

Because when you learn something at these meetings, you take it back to the workplace and strengthen the contributions you make to your team and your organization. And you just plain become better at what you do.

Some interesting food for thought.  So which meeting are you attending next, and why?

If you were a stock, would your customers invest in you?

OK, I don’t want to hear about the stock market or investing in stocks vs. mutual funds vs. bonds vs. money market accounts vs. just stashing cash under your mattress (which has its appeal from time to time).

You know what I’m getting at here.

We ask our customers to put their trust and confidence in us daily. At least that’s what we should be doing.  And we need to be earning that trust and confidence on a daily basis.  And, news flash here, folks: if this isn’t your primary strategy in providing value to yourself, your customers and your company, then you need to rethink your engineering career path.

When you think of the business environment in which you work, constantly responding to the peaks and valleys of the global economy, you are the mainstay for providing consistent service quality delivery on behalf of your customers. Your customers are experiencing the same fluctuations in their business environment, having to dodge and parry in response to the curves the market is throwing at them.  They invest in you: as the physical embodiment of the value that your engineering, service or manufacturing company, or brand, represents. Now that’s a loaded sentence.  And a big professional responsibility.

Keep this thought on your mental back-burner the next time you are working with your existing customers: every time they work with you, you must reinforce and reward their choice for contracting with your company. And these are not easy choices in this economy. With skepticism rampant and confidence going up and down with the markets, you’re a lighthouse for them on turbulent seas.

Whether you are a Boomer, Gen X or Gen Y, there are no fast-tracks to managing client relationships. And these client relationships are basically like your own business-engineering portfolio.  They are slow to win and need constant attention to develop.  You can never assume a client relationship will be permanent or that either you or your company is a “given” for upcoming projects.  Business acquisition and client relationship management are investments of your time as well as your client’s time as well as your company’s time. After all, your employer has invested in you as well, in terms of salary, benefits, materials, training, etc.. Yes, you are an important investment for your company, regardless of the current role you play in their organization. Providing a return on investment rewards your company for having chosen you as an employee.

Maximizing your growth potential within the parameters of your job allows you to provide value to yourself, your company and your organization.  As I’ve discussed before, coloring within the lines and simply “doing your job” and hiding in “cubicle mentality” is not sufficient. That’s the status-quo.

Increasing your value involves growing your areas of expertise within your organization, learning more about the dollars and cents of how your company operates, and determining whether your interests and skill sets allow you to enhance the value of non-technical work teams within your organization.

And, quite frankly, why wouldn’t you be interested in expanding your breadth and depth within your current organization?  You can maximize what you bring to the table as well,  which has positive ramifications for what you bring to your clients’ tables in return.

The next time you have a conversation with your clients – or are asked by the sales guys to participate in a business development discussion – think of yourself as an additional stock option that just has been added to the client acquisition portfolio. With that being the case, how do you see your role? Will your perception change how you participate in these discussions?

How do your actions translate into the investment clients make in your company… and in working with you?

Think about it.

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