Customer Manufacturing Group
In This Issue



 

 

 
 
Business Growth 
Growth is something most companies strive to achieve.

However, growth means different things to different people.

This paper looks at the whole idea of what is meant by growth and how to achieve it in middle market companies. 
 
 

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Customer Manufacturing Update
January 2016

Dear Mitchell,

 

Here is your January Customer Manufacturing Update and Happy New Year. 

This month's article is about growing your business. Growth is something most companies strive to achieve. However, growth means different things to different people. This paper looks at the whole idea of what is meant by growth and how to achieve it in middle market companies.

Your Help Is Appreciated 

Many of you have a copy of one or more of our three books: It's Not Rocket Science; The Secret To Selling More; and Value Acceleration.

 

We would really appreciate you posting a review of any of these books on Amazon.com for us. To make it easy each title above is linked to the appropriate page on Amazon.com

 

Thank you in advance for your help. 

 

Pricing For Profit    

Substantial research and evidence exists to show that people are irrational about prices ... and predictably irrational. Another study, this time in the hospitality industry, demonstrates this fact. Cornell University did a research study on menu pricing in restaurants. The key findings of the study include: https://valueacceleration.files.wordpress.com/2014/07/restaurant.jpg

"The researchers cite a case where the names of restaurant menu items were changed to make them more exotic: The seafood filet, for example, became "succulent Italian seafood filet," and red beans and rice became "Cajun red beans and rice."

Sales of these renamed items with descriptions rose by 28% and were rated as tastier, even though the recipes before and after were identical. What's more, diners were also willing to spend an average of 12% more for a menu item with a fancy name."

The researchers found other interesting correlations as well. The point for all is that price is highly controllable by you and it is likely you are under-pricing your goods or services. Further, some simple actions on your part could gain you higher prices, increased sales and more profit, while leaving your customers happier. Sounds like a win-win to us.
 
How Can You Call Yourself A CMO? 

The title of Chief Marketing Officer is controversial. Some who hold it think it is insufficient. Others who hold it are really just the Chief Marketing Communications Officer (CMCO).

People who hold the position often state that the position gets no respect and up until recently the average tenure of the CMO was less than two years.

We are however, always amazed at what others write about CMOs in all seriousness. One we found is an article entitled "Customer Service Is Your CMO's Blind Spot." The article cites three key areas within customer service that he has found are deficient in many CMOs.

We have no reason to disbelieve him, we are just stunned that anyone who seriously considers themselves to be the Chief Marketing Officer (as opposed to the Chief Marketing Communications Officer) would be blind-sided by any of these ... ever.

He notes meetings he has attended where the CMO and the head of customer service are just finally meeting for the first time. How can that possibly be true unless one of them just joined the company in the last week?

He talks about how customer service has to deliver on the brand. Duh, how can a competent CMO not know that, and not make sure that is happening? Really, CMOs don't already know this? If that's true, no wonder the position gets little
respect in the C-Suite.

Process Observations On Cab Lines  
 
Some airports in the US have long cab lines. Las Vegas and JFK come to mind. In Las Vegas the line exists simply because so many people fly in and need cabs that the capacity to fill them is the constraint. The same is true at JFK. Turns out Newark, NJ (EWR) also has a cab line but for a different reason.

In Las Vegas, the goal of the cab dispatcher is to get people into cabs as fast as possible so visitors are not frustrated by the wait and to get visitors to their hotels so they can start stimulating the Vegas economy. In JFK I'm not sure the goal is to minimize frustration, but they do seem focused on getting people into cabs.

At EWR, the goal of the dispatchers seems to be to prove they are in charge. Their process slows down the cab line, frustrating both the cab drivers and the passengers, but does assure that the dispatcher is in charge.

Every process is perfectly constructed to produce the results it does. If you are not getting the results you want from your process, we recommend you look at the process first, not the people. Though at EWR and the cab dispatch process, we may have found an exception to the rule.

Free Reading Guide

If you have a copy of our book Value Acceleration, you can download a free reading guide to help you and your team get the most from the book. (And btw, the book is also available in a Kindle edition.)

We appreciate your feedback to help improve these

Updates. If there are others you feel would benefit from this issue, use the Forward email link just below on the left.

 

Sincerely,

 

MGSig

Mitchell Goozé

 

Customer Manufacturing Group, Inc.

www.customermfg.com 

Customer Manufacturing Group, 1900 Wyatt Drive, #11, Santa Clara, CA 95054
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