In teaching a course on entrepreneurship and creating a business plan, some “flip thinking” happened. In the discussion of ,”Who is your customer?”, the class hijacked the process and turned it on their employee base.
In explaining how 20% of your customers will generate 80% of your sales, and how you need to understand the various demographic niches of your customers, one business owner described his customers in beautiful detail only to lament the fact that not all his employees understood how to meet their needs as well as he does. The common complaint of how hard it is to find good employees came next. The class had an ‘AHA’ moment. They realized the following truths that apply to both customers and employees.
Freedom to explore new ideas
1) 20% of your employees will generate 80% of your results
2) Invest one on one time with the 20% and use mass communication for 80%. Spend 80% of YOUR time with your 20%.
3) Study the demographics of your top employees and develop strategies to reach that niche.
4) Communicate the benefits of your organization first and not features to your target employee.
5) Stay in touch with your employees even when they are not in busy season to let them know you value the relationship.
The cost of prospecting for customers and replacing existing customers is the most expensive and frustrating part of sales and marketing. The value of a lifetime customer analysis drives this home. Likewise the process of recruiting and replacing employees is expensive and frustrating. So maybe if you treat your employee recruitment and retention process the same way you do your sales and marketing you can gain a few more lifetime 20% employees.
What a fun class!