Working Hard is Not a Business Plan

Many ag retailers are experiencing tight margins and declining customer loyalty resulting from deep changes within the industry.  The need to differentiate themselves from competitors while creating real value for customers is urgent.  In the past ag retailers and grain companies have differentiated themselves through operational competence and technical knowledge.  Today most surviving agribusinesses are effectively implementing these strategies. 

Everywhere you look imitation is prevalent.   What one retailer innovates, others copy and the tide raises all boats.  As more customers see similarities among their retailers, they do business with those who most effectively meet their needs or offer the best price.  If the market or customer needs have changed sufficiently, we need a better plan, not greater effort.

Creating a Sustainable Competitive Advantage

Leading companies in all sectors are realizing a sustainable competitive advantage is only possible by delivering a consistently superior customer experience that improves loyalty and profitability.  Achieving this superior customer experience is more difficult than it might seem however. 

In 2005, Bain & Company surveyed 362 companies and found that 80 percent believed they delivered "superior experience" to their customers.  When they asked customers from these companies about their own perceptions, only 8 percent of companies were rated as delivering a superior experience.  This Experience Gap sets up a perfect storm of potential defections because management can’t focus on problems they can’t identify and quantify. 

AgKnowlogy works with leading agribusiness to help them improve customer loyalty and sales performance through our AIM sales performance software, Customer Experience Monitor and Solution Selling for Agriculture.

Managers at progressive organizations tell AgKnowlogy they need to evolve from a service and operational focus toward a high performance, customer centric sales culture.  Some issues we hear are:

• Increase forecasting accuracy to optimize early orders and inventory control.
• Profile and quantify opportunities with high potential customers and prospects.
• Create actionable customer segments to support targeted selling.
• Use customer knowledge to effectively target the needs of customers and prospects.
• Identify and repair gaps in service delivery that create barriers to customer loyalty.
• Become more goal focused and accountable for results.
• Achieve a 360° view across a customer’s business for more effective account management.
• Increase selling skills, for more predictable sales results.
• Provide easy to use, easy to access sales reports for field staff.