The Donald Cooper Corporation Newsletter
Volume 2, Issue 2 - February 2003
 Greetings ! This month's Newsletter focuses on simple but effective ways to redefine and reinvent your business to increase sales, market share and profitability.
1. The "Four Currencies" in your customer's lives:(time to read this article is about 90 seconds)
Many businesses, large and small, make the mistake of believing that their customers have only one “currency’ in their lives, which is money, so they can think of only one way to compete, which is to cut their price. “Price” is very important but when you realize that most people actually have four “currencies" in their lives, there are hundreds of ways to compete that aren’t cutting your price.
What exactly is a “currency”? A “currency” is anything of value to your customers that they don’t have enough of. And on this planet, in our society, at this time, there are four things that we don’t have enough of…four “currencies". They are...
1) Money,
2) Time,
3) Feeling Safe (physically & emotionally safe)…and,
4) Feeling Special.
People are prepared to spend more money to save time, or to feel more safe, or more special. Think about your own life. People are even prepared to take time and to spend a lot of money to not feel safe, in order to feel special...which is the only explanation I have for bungee jumping!
For example, a $16,000 car will pretty much get us everywhere we want to go, on time. But perhaps it doesn’t make us feel safe enough, or special enough.
If we have an alarm system in our home, we've spent a lot of money to feel more safe. If we have beautiful crown moldings in our living room, we’ve spent a lot of money for what? Crown moldings don’t save us time and they offer no increased safety (they don’t actually hold the ceiling up)…but they do look beautiful and make us feel special!
When we’re choosing an investment advisor or travel agent we’re looking for someone who will deliver all four “currencies”. Someone who will make us money, or save us money, who will save us time and make us feel both safe and special.
Consider the relative importance of each of the “4 Currencies” when we choose a life mate.
Think about the car you drive, where you live, all of your possessions and the relationships that you’ve entered into in both your business and your personal life and identify exactly what mix of Money, Time, Feeling Safe and Feeling Special influenced your decisions. Then, think about how you can use these “4 Currencies” to build compelling value-added relationships with your target customers. How can you save them money, save them time, and make them feel more safe and more special?
2. Take “ownership” of something…three ways to become a more profitable market leader!
(time to read this article is about 2 -1/2 minutes)
To be a profitable market leader you must “own” something that your customers want…and that your competitors don’t have. There are basically three things that you can “own”…
1) First, you can “own” exclusive and compelling products, services or locations. If what you sell, or how and where you sell it, is exclusive and compelling, you don’t have to worry so much about the price you charge, how your business looks or about building customer relationships. You’ve got it, they want it and there’s no place else that they can get it!
Velcro is a great example of owning an exclusive and compelling product. When Velcro was invented and patented in the early 1950’s there was nothing else like it. It was expensive, it came in limited sizes and colours and they weren’t the easiest people to deal with. They didn’t have to be; they “owned” the product…until the patent ran out and everything changed!
You can also be a powerful market leader by “owning” an exclusive and compelling service. I’ve worn eyeglasses for 50 years. Back then, I waited three to four weeks for my glasses because the lens grinding lab was in some far away city. Then, Lenscrafters reinvented the dispensing of eyeglasses by putting lens grinding equipment right in each store and delivering eyeglasses in an hour. They “owned” an exclusive and compelling service that made them the market leader in all of North America…until their competitors copied the idea.
You can also “own” an exclusive and compelling location. Last week I was speaking for a client at Disney’s Boardwalk Hotel in Orlando. A croissant in their bakery was $2.85 US (that’s about $4.25 Cdn) but you’re on Disney property and they’re the only game in town.
So, the first way to become a more profitable market leader is to "own" exclusive and compelling products, services or locations. Looking at your business and your competitors, realistically, can you create and maintain this powerful competitive advantage?
2) Second, you can “own” the lowest price. But if you want to be profitable, you’d better also be the lowest cost operator in your market. Wal-Mart has become the world’s largest retailer by delivering on their promise of everyday low prices and by mastering the art of buying, distributing and selling merchandise more efficiently than their competitors.
Southwest Airlines offers low fares and makes money. In fact, it’s the only airline making money these days. How do they do it? First of all, they operate only one kind of aircraft, which significantly reduces their cost for maintenance, parts and training.
Then, they mastered the art of the quick turnaround. Other airlines take 40 minutes to get a plane emptied out, cleaned, fueled, loaded and back in the air. Southwest does it in 20 minutes which means that they run their airline with 35 fewer aircraft than their competition, to do the same amount of business. Imagine the hundreds of millions of dollars in savings on 35 fewer aircraft to buy, staff and maintain!
Looking at your business and your competitors, realistically can you profitably “own” and maintain the low price / low cost position in your market?
3) The third thing that you can “own” is the relationship with your target customers. You do this by, first, understanding them, as a group and as individuals and then by continually delivering more help, more ideas, more service and a more positive experience than your competitors.
Years ago, as a retailer of ladies fashions in Markham, Ontario we “owned” our customers by understanding what life was really like for them and then having the creativity and the courage to deliver a number of relationship-building "things" that no one else had done.
We offered a choice of seven free beverages when every other clothing store had a sign on their door saying, “No food or beverages!”. We invited customers to, “Please take as many items in the change room as you wish!” Our change rooms were 16 sq. feet each with four hooks, a stool to sit down on, a shelf for your purse and eyeglasses, and a mirror. Why a mirror in each change room? Because we believed that there are certain decisions that a woman has the right to make in the privacy of her own change room!
We provided electric reclining massage chairs for husbands, a pirate ship play area for kids and our washrooms included change tables with three sizes of free diapers, diaper wipes and cream. Nobody had ever done any of this. It blew people away and thousands of women drove up to three hours to shop in our store. That’s customer “ownership”!
So, there it is…three things that you can “own” to be a profitable market leader. If you don’t “own” something that your competitors don’t…you’re a commodity! What will you do to take "ownership" of something that your customers want and that your competitors don't have?
3. Our "Gold Nugget" for February:
(time to read this section, about 70 seconds)
It’s February and we’re in the middle of the coldest winter in 25 years! We need something magical to break the spell of winter. So, our Gold Nugget for this month is one of the most magical people you’ll ever meet…Rick Rossini, The Magical Motivator!
If you’re looking for an absolutely superb combination of entertainment, education and motivation for a product launch, sales meeting, awards presentation, promotion or special event, Rossini (yes, that is his real name) is the guy for you! Rick has been an entertainer, magician, professional speaker, writer, corporate communicator, consultant and producer for over 30 years.
Rossini has created unique ways to make full sized cars, vans and hundreds of other new products “appear out of thin air” for clients like Chrysler, Ford, Bayer, Seagram’s and Hilton Hotels! He has created illusions that float a person in mid-air, surrounded by 18,000 onlookers and he has made Canada’s 50 Top CEO’s magically appear at an Awards Gala!
He has created exciting and effective ways to train and communicate for companies like IBM, Nortel, Johnson & Johnson, Kodak and CIBC.
His amazing “Unleash the Magic” presentation has inspired and energized the United Way, Amnesty International, the International Special Olympics and educational institutions worldwide!
Now, here’s the bonus!! Rick is an incredibly nice guy to work with, he is the master of possibilities, he brings ideas to the table…and he’s affordable!
You can contact Rick at rossini@rossinimagic.com. His website is www.magicalmotivator.com where you can also subscribe to his free monthly E-Newsletter, “Magical Motivations”.
4. Two simple approaches to growing your business:
(time to read this article, about 90 seconds )
The sheer simplicity of these two approaches to growing your business may lead you to believe that they’re not powerful, or even useful…but they’ve helped many of our clients to increase sales and profitability. Each “approach” involves only two steps. Here they are, along with examples to trigger your creativity…
#1…The WHAT / WHO approach:
Step 1: State WHAT you do to help people. For example, a manufacturer of fishing tackle boxes would say that they’re in the business of helping North American fishermen to keep their hundreds of lures organized and easily accessible.
Step 2: Ask yourself, “WHO else might need that kind of help?” Using the example of fishing tackle boxes, ask first, in what other parts of the world might there be fishermen who have the same need?
Then, to further open you up to business-growing possibilities, ask WHO else has a need to organize large quantities of small parts, or items, in an easy-to-carry container? The answer includes appliance and electronics repair people who do outcalls, artists who carry large numbers of small paint tubes into the field and freelance models and makeup artists who carry hundreds of small tubes of cosmetic “stuff” with them from job to job. In fact, one fishing tackle box company did go through this exercise and now produces a number of their boxes in bright fashion colours specifically for the makeup artist / model market.
#2…The WHO / WHAT approach:
Step 1: State WHO you help. For example, MacDonald’s said, “We help hungry people who want quick, convenient food for lunch or dinner.”
Step 2: Then ask, “WHAT other help might these same people need in any way related to what we do for them?” By asking this question it became clear that those same people might also need a quick, convenient breakfasts, which has now become huge business for Macdonald’s.
Another example of the WHO / WHAT approach…Gillette started making razors and blades back in 1903 but it was many years later before they realized that they could further grow their business by offering the same customers a quality shave cream that would enhance the shaving experience.
For years State Farm sold insurance only but have now reinvented themselves using the WHO / WHAT approach by adding a full range of investment and financial planning services. H&R Block, long famous for preparing personal income tax returns, has now also added financial planning products and services using the WHO / WHAT approach.
How can you use the “WHO / WHAT” and the “WHAT / WHO” approaches to increase your sales and profitability?
5. Bits and Pieces:
(time to read this section, about 1minute)
A) Here’s a simple but profound thought that reminds us that learning, thinking and growing are, indeed, a process!
“A conclusion is simply wherever you were when you decided to stop thinking!”
B) Last Fall, while speaking in beautiful Kananaskis, an hour outside Calgary, I met one of Canada’s most successful financial planners. Dan Loney, of Loney Financial, is knowledgeable, passionate and very organized. Here’s one of his secrets that could inspire you to proactively WOW your customers and prospects…
When Dan has a lunch meeting with a client or prospect he makes a few brief notes about the key issues discussed. As soon as the meeting is over he calls his Assistant who has on her computer a template of an email follow-up letter. Dan dictates to her the specifics of the conversation and his recommendations as to what action the person should take, which his Assistant inserts into the template. The email is sent out immediately so that it’s already on the client or prospect’s computer when they arrive back at their office 15 minutes after leaving Dan at the restaurant...and it blows them away!
What simple but powerful thing could you do to demonstrate your sense of urgency and commitment to your customers and prospects?
6. Four steps to reinventing your business!
(time to read this article, about 2 minutes)
Here’s a simple 4-step process that will help you to rethink and reinvent your business.
Step #1 Awareness:
Awareness that some part of your business isn’t “right” yet. You're not yet where you want to be, or must be, to be a profitable market leader.
Perhaps your products aren’t the best they could be, or you're falling short in delivering the customer experience that you’ve promised. Perhaps you've not created the internal business environment that will make your staff most effective. Perhaps you’re falling short in planning and budgeting, control and accountability or follow-up. Your shortfall could be in technology, systems or communication. It could be that you’ve not yet met your commitments to your community to reduce pollution or waste.
Are you aware of the specific areas in your business that aren't “right” yet? Can you list them and prioritize them? Without “awareness”, there will be no improvement. But “awareness” alone will get you nowhere! Which brings us to…
Step #2 Dissatisfaction & Commitment:
While awareness is important, it must be accompanied by dissatisfaction and a commitment to fix it. Complacency is deadly!
Years ago my Father had a Jaguar XJ6 with the world’s most unreliable windshield wipers, which he thought a bit odd given that it rains most of the time where Jaguars are made. By chance, Father met the Chairman of Jaguar at some big shot business event and when he mentioned that he was a Jag owner the Chairman enquired, “And how do you like your Jaguar?” Not wanting to miss an opportunity to go right to the top with his problem, Father told Sir Reginald about his huge frustration with the wipers. To which the Chairman of Jaguar offhandedly replied, “Oh Jack, we don’t seem to have that quite right yet, do we!”
The Chairman was aware of the problem but there appeared to be no passionate dissatisfaction or commitment to fix it! Are you passionately committed to fixing the things that need fixing in your business?
Step #3 Analysis, Creativity and Decision:
Here’s where the real work starts. For each problem or shortfall in your business that you're committed to fixing, ask the following...
1) What’s the real root cause of this problem?
2) Who else in our company has valuable input that we should be listening to?
3) Who are the outside experts on this?
4) What are other successful businesses doing about this problem? Let’s not try to “reinvent the wheel here”!
5) What are some of the most creative solutions? What’s possible? What does an amazing solution look like?
6) What are the costs? What are the benefits?
Then, get to a decision in a reasonable time. There’s more money lost through indecision than by wrong decision.
Step #4 Getting it done!
Sadly, this is where so many businesses drop the ball…the discipline to get it done! And the problem is usually about communication and accountability.
Getting it done starts with communicating to everyone involved exactly what the problem is, why it's a problem, and specifically who will do what, by when, to fix it. Then make people accountable. Make sure they accept responsibility for the agreed outcomes and deadlines. Follow up, measure progress and results, celebrate and acknowledge success...and impose consequences for non-performance.
How can you use these four powerful steps to improve and grow your business?
7. Chuckles & Hugs!
(time to read this section, about 70 seconds)
We all need chuckles & hugs! Here’s a “hug” kind of a story kindly passed on by the wonderful Barbara Bell of O&Y Enterprises.
The Cracked Pot
A water bearer in India had two large pots, each hung on the ends of a pole which he carried across his neck. One of the pots had a crack in it, while the other pot was perfect and always delivered a full portion of water. At the end of the long walk from the stream to the house, the cracked pot arrived only half full. For two years this process went on daily, with the bearer delivering only one and a half pots full of water to his house.
Of course, the perfect pot was proud of its accomplishments, perfect for which it was made. But the poor cracked pot was ashamed of its own imperfection, and miserable that it was able to accomplish only half of what it had been made to do.
After two years of what it perceived to be bitter failure, the pot spoke to the water bearer one day by the stream. "I am ashamed of myself, and I want to apologize to you. I have been able to deliver only half my load because this crack in my side causes water to leak out all the way back to your house. Because of my flaws, you have to do all of this work, and you don't get full value from your efforts," the pot said.
The bearer said to the pot, "Did you notice that there were flowers only on your side of the path, but not on the other pot's side? That's because I have always known about your flaw, and I planted flower seeds on your side of the path, and every day while we walk back, you've watered them. For two years I have been able to pick these beautiful flowers to decorate the table. Without you being just the way you are, there would not be this beauty to grace our house!"
Moral: Each of us has our own unique flaws. We're all cracked pots. But it's the cracks and flaws we each have that make our lives together so very interesting and rewarding. Just take each person for who they are, and look for the good in them.
Remember to appreciate all the different people in your life! Blessings to all my crackpot friends.
8. That’s it for this month!
“Thank you” for your ongoing feedback and suggestions! Last week I chatted with two more business owners who have used our process of Human Marketing to completely redefine and reinvent their businesses. We love hearing about your successes!
One last thing…don’t forget that our FREE 34-page, fill-in-the-blanks “7 Steps To Business Success” Implementation Guide is available on our website. Hundreds of businesses around the world have used it to redefine and reinvent themselves with real bottom-line results! You have only to email the amazing Sharen Skene here at our office. She’ll tell you how to access this tool.
Kindest regards,
Donald Cooper, MBA
Certified Speaking Professional
Preview a Video Clip of Donald in action!
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