The G Point


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The G Point

  1. 1. The G Point • How to Turn Your Business into a Growth Machine
  2. 2. Growth 1.Want it 2.Frustration AaaarrrrghAaaarrrrgh!!
  3. 3. Here’s the ultimate lack of growth • Carbon paper • Typewriters • CRT tubes • Cassette tapes • Walkman • Payphones • Film processing • VHS tapes and players
  4. 4. Growth Machines
  5. 5. What do they do differently? • What is your business? • What is marketing and how do you relate to your market? • How close are you to your customers? • How do you manage change?
  6. 6. The G Point • Answering these three questions, they had a flash of great understanding. • They reached their G Point – and knew how to drive the growth of their companies.
  7. 7. ITW Shakeproof • The year is 1926 • They had purchased the patent for the twisted tooth lockwasher • An applications engineer is off to Detroit
  8. 8. What does he see? • A sorry man sitting at a bench putting one lockwasher on one screw, again and again • A worker on the miraculous production line fastening trim onto the dashboard • A puddle of screws and lockwashers on the ground by his feet
  9. 9. On the train back to Chicago • An epiphany – • The SEMS is born
  10. 10. What’s in it for their customers? • Re-purpose the poor guy on the bench? • Eliminate wasted screws and washers dropped on the line? • Cheaper than buying the two parts separately?
  11. 11. Wrong!
  12. 12. What does ITW Shakeproof provide? • You have to understand your customer if you are to understand what you do. • Your understanding of your customer is the foundation of your relationship.
  13. 13. Defining their business • ITW Shakeproof provides their customers better ways to assemble their products.
  14. 14. One more thought… • What happened to the poor company that used to supply the screws?
  15. 15. Tess Plastics • $27.5 mm • Injection molder of customer plastic components • Impersonal marketing • Slooooowing growth • “They value us for our precision.”
  16. 16. Customer’s viewpoint… •HUH?
  17. 17. What the customers said… • Precision just is not critical • Short-run parts, routine • Tess is easy to work with • Reasonable price • Absolutely reliable
  18. 18. What the customers value • Get the little, routine stuff off my desk so I can concentrate on what’s important
  19. 19. What Tess really sells • Time • Time to focus on challenges • Time to focus on what will move my career
  20. 20. What’s Tess’ business? • Precision? • Career enhancement?
  21. 21. • Your basic marketing goal is to create and nurture customer relationships.
  22. 22. • Your business is defined by your customer
  23. 23. • Growth Machines do not “make something.” • They build relationships by helping their customers accomplish something.
  24. 24. Smacked upside the head
  25. 25. GE Medical • Leader in x-ray technology • Until Siemens introduced the CT Scan OUCH!
  26. 26. Jack Welch’d • New president • They built their own CT machine • Introduced the next technology – MRI • Back on top
  27. 27. But not done yet … • Developed “Customer Panels” • Learned what was the challenge of their customers • Innovated new products to meet the challenges • All based on the customer panels
  28. 28. GE Healthcare • Leads in most diagnostic equipment – EEG, EKG, etc. • Purchased the leader in diagnostic pharmaceuticals • Define their business as helping the doctor diagnose • And it’s all based on the knowledge they continually seek through their panels
  29. 29. Life was not good • Management had focused on selling company – and then withdrawn it from the market • Competition was introducing new, exciting products • Morale was terrible • Growth had come to a stop
  30. 30. Refocused on the customer • Developed panels of architects, athletic directors • With their direction, refined current products and began a steady stream of new product introductions • Morale, growth and excitement all took off $30MM $40mm $50mm
  31. 31. • You will not realize results from customer input unless you have already established a relationship of nurturing trust. • Growth Machines help their customers accomplish their goals. • Then customers help Growth Machines accomplish theirs.
  32. 32. • Growth Machines have intimate understanding of their customers’ goals and challenges.
  33. 33. Staying close… • S&C sells switches and fuses for use in the distribution of electricity. • Their sales personnel are engineers working side by side with the engineers of the electrical utilities • Together they are planning systems up to 20 years out
  34. 34. Frustrating their competitors • And with this knowledge, S&C is engineering their next generation of products; testing them; tooling them; having them ready on the shelf • When GE or Siemens introduces a new product, S&C is ready to launch the next generation. They are always one generation ahead.
  35. 35. • Growth Machines celebrate change. • Change in the market presents the opportunity to obsolete your competition. • Drive change, don’t fight change.
  36. 36. Three Key Points • The goal of marketing is to create and nurture customer relationships based on customer needs • You must have intimate knowledge of your customer, their values, their aspirations, and their challenges. • You need to celebrate change.
  37. 37. So what’s the G Point? • When your fully internalize these three points you’ll experience an understanding of what really drives your business. That’s reaching your G Point. • You’ll know how to turn your company into a Growth Machine.
  38. 38. Getting to Your G Point 1. Commit to a true marketing relationship – Count customers, not sales – Value relationships, not transactions – Fall out of love with your product 1. Gain and maintain an intimate understanding of your customer – In-depth research – Continuous learning – Values, aspirations and challenges
  39. 39. Getting to Your G Point 3. Celebrate Change – Look for change in your markets – Look for change among your customers – Look for change in your technology 3. Reach your G Point and Grow – Continually refine your products and services – Create new products and services to excite your customers
  40. 40. Questions?
  41. 41. Insight Direction • Jack Trytten • President • Insight Direction, Inc. • 200 E. Delaware Pl. • Suite 14C • Chicago, IL 60611 • (312) 944-1754