I frequently speak with retailers about the challenges they face in growing their business in a highly competitive, consolidating market in which customer loyalty appears to be declining. Ag retailing has a successful history as a service culture.

However, I believe many of the customer management problems facing retailers result from most surviving retailers implementing the same strategy of operational excellence and agronomic know-how. Because growers perceive there are few differences among retailers in critical areas that drive decision making, it is clearly time to explore new strategies and learn new business skills. Failure to adapt your business approach as the market evolves almost guarantees next year's results will look similar to this year's.

A service culture does not necessarily mean the customer's business problems are being addressed. Among AgKnowlogy's clients there is a growing emphasis on becoming goal focused and having sales staff be more accountable for sales results. We believe the gap between the business results you want to achieve, and the total of the goals you have set with individual customers is Hope. If the goals you have set with customers don't add up to your company target, Hope is your business strategy.

I call the process of using customer knowledge to increase sales, profits and loyalty in a planned, goal-based manner, Customer Asset Management. The diagram on the next page shows a Customer Asset Management Plan you might use in your business.

In our work with ag retailers, AgKnowlogy recommends developing SMART goals. A SMART goal is: Specific, Measurable, Achievable, Results focused and Time bound. An example is to increase your Share of Inputs (SOI) in fertilizer from 55 to 60% with a specific customer during the next crop year.

SMART goals help you ask two questions that will differentiate you from your competition. These questions will fuel your growth by providing both strategic and tactical direction to your business. The first question is, “Where am I today in terms of being your best supplier?” The second question is, “What will it take for me to earn more of your business?”

Notice in my SMART goal I know my benchmark (that is, 55% SOI in fertilizer). During the call I communicate this knowledge to the customer as part of the process of determining how to earn more of his business. Thinking from a customer perspective, would you not agree you have no basis for asking for more business if you don't know what share of the business you have today? This takes us back to customer profiling. If you have not profiled your customers, and can't accurately measure the percent of the business you have, how do you plan to earn more?

Asking a customer “What will it take for me to earn more of your business?” focuses your attention on discovering the gaps in how well you understand his business problems, and whether the solutions you offer address his pain. AgKnowlogy clients refer to these questions as the Report Card Review. During this review, your job is to listen, ask high-value questions that help the customer clarify his business problems, and understand the impact of not solving these problems.

When our clients first schedule a Report Card Review with customers, the answer to the question “what could we do…” is often two hours long. Yes, some of the answer is “lower your price,” but there is always good information our clients can use to update their understanding of the customer's pain and how they could modify their business practices to better address the customer's pain.

Working hard is not a business plan, and hope is not a strategy. If you want to move your business forward, get committed to SMART goals in order to manage customers as assets. I recommend telling your customers what your goals for them are. As part of the process of earning more of their business, consider starting an annual Report Card Review with high-potential customers. A key focus of this review is improving your understanding of what the customer's critical needs are and how you can work to develop solutions that address these problems.

Bill Keogh is the owner of AgKnowlogy Inc., a company that helps retailers use customer information to reach their potential sales, loyalty and profits. To reach him, send an e-mail to info@agknowlogy.com, call 905/868-9953, or visit www.agknowlogy.com.

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