“Starting A New Business. Introducing A New Product. Keep Your Eyes Wide Open”
The validity of your business’ product or services, the strategy undertaken, and proof of market comes with customer feedback and sales which is illustrated in my interview with Frank Benintendo. He along with Ernie Symanski founded “The Ultimate Crumb” (https://theultimatecrumb.com) introducing an innovative bakery product offering. Frank stated that “You truly don’t know what the customer’s perception and acceptance will be when you are developing your product.”
His is a valuable reality-based observation as American entrepreneurship has been trending upward as more people form their own businesses and introduce new services or products. Much of this originated from the pandemic as people began to take a deep dive evaluating their current employment situation and considered an alternative direction. Those that took the entrepreneurial pathway developed business plans: defined their customer, projected sales, assessed market demand and the strategies to reach their customer.
With the latest data from the U.S. Bureau of Labor Statistics (BLS) indicating that about 1 in 5 U.S. businesses fail within their first year of operation, your customer validation of your plan and products is essential. Here are some of Frank’s insights for those preparing to take the plunge:
- Direct Customer Interaction: Frank emphasized how much he learned through direct interaction with the customer through in-store sampling. He found that customers became more engaged when they learned he was the founder of the product and not a store employee pushing a new product.
- Clear Messaging: Frank explained The Ultimate Crumb is just that, “only the crumb.” But their original box packaging and product displays didn’t clearly convey that based on the customer feedback. They modified the tagline to “Just the Crumbs” and are testing response. “Remember they are not looking for your product. You need to make them stop to read the message and learn what the product is.”
- Customer Awareness: Your product or service may have demand but there is a lack customer awareness. Frank mentioned “our crumbs received high marks on taste
but certain store locations sold better than others” making placement critical. - Shelf vs Display:You stand out quicker to the consumer in a floor display rather than being on a shelf in the sea of other products particularly when launching a new product. This requires store approval.
- Build Manager Relationships:Get to know the store managers. Having a new product, they can help with product location and how its moving.
- Selling Direct:When selling direct visit, the store at least once a week to make sure your product is displayed properly and there is enough product. An empty shelf or display can result in losing placement. Shelf and display floor space is a valued commodity, closely allocated by the retailer.
- Turns and Traction:Turns of sales on your product is so important. Keep a close watch on how many products are being sold in a one-week time. The quicker the turn, the better you are in gaining traction and to stay in the store.
- All Stores Are Not Created Equal:If you are in more than one store in the same chain always monitor the sell rate in each store. Gain important insights to determine why the slow selling stores are not doing as well as the better selling stores.
- Have Your Eyes Wide Open: Be prepared to allocate a great deal of time and effort when introducing a new product and starting a new business. It’s a multifaceted endeavor. You are managing the store relations, customer, distribution, inventory, sales, marketing, and communications.
“Experience a Solopreneur and Small Business Ecosystem”
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A fun way to directly experience the solopreneur and small business ecosystem? Visit one of the local farmers and street markets in your area. I enjoy browsing and chatting with the vendors offering a range of products including art, jewelry, gourmet food, gift ideas, holistic and baked goods. Many are niche products that serve particular customer needs. What stands out for me is the instructive and idea generating opportunities for the new entrepreneur and established business owner to see sales, marketing, promotional and distribution practices in action.
- Direct selling and engaging customers to stop at their stand and make a purchase with the essential opportunity for direct customer feedback
- Merchants ready with their product value statements aka “elevator speeches” indicating the value and uniqueness they offer customers
- Product displays and samples to attract customers
- Point of purchase signage and print materials
- Vendors with brick and mortar locations using street market exposure to grow their customer following
- Potential for customer contact email lists
- Merchant accounts to ease credit card payment processing
“Facing the Future 2023 Conference Presentation”
I was delighted that my workshop proposal was selected by The Boggs Center for Developmental Disabilities Rutgers Robert Wood Johnson Medical School, and NJAPSE to present at their co-sponsored “Facing the Future 2023 Conference Exploring Opportunities in Employment ”. I delivered “Business Engagement & Job Development Sales Practices: Effectively Servicing the Employer”.
It was wonderful to experience the drive and dedication of conference attendees.The presentation benefited executive team members, directors, business services representatives and employees working with employers who are using their agency for employment and training services and to fill job openings at their businesses.
Session learning outcomes included best business engagement strategies and practices. Participants also left the presentation with an understanding of my needs-based sales model designed to help increase success to gain new customers and to better retain current customers. All this to contribute to the effectiveness of their work to grow visibility and utilization of their services among employers in their area. Attendees participated in “action item” exercises for immediate application of learning back at work.
“Keep Customers: Consistently Meet Their Expectations”
Jeff Bezo’s quote “Your brand is what people say about you when you’re not in the room” reminded me of an insightful conversation I had with a restaurant owner about the longevity and success of his business.
Being a long time customer, I mentioned to him that meals have been consistently great and that my favorites tasted the same as they did twenty years ago. I noted that tables were full and customers waited in line to get into the restaurant throughout both the bad and good economic times. His response: he stressed the importance of maintaining the service, quality and price that their customer expected. He provided me with a specific example,
“We were planning to offer a lamb dish special. To get the quality our customers expected, we would have needed to charge above our typical price point for the entrée. We could have offered the entrée within our price range, but the quality would have been below our customer’s standards. So we didn’t offer it at all.”
This told me a lot about how him and how he runs his business. He clearly knew his brand, his customers and was committed to established quality standards. My take-aways:
- Understand who you are – your brand and value offered – “why you exist”
- Live the brand promise: consistently deliver what you promised to customers
- Know who your customers are and what they want
- Establish customer experience standards and have all employees familiar with them
- Customers will remain customers when they value their relationship with you – by you consistently working to understand and address their needs
“Optimizing the Customer Experience”
I was thrilled to be invited to deliver a presentation for CareerSource Suncoast at their Employee Retreat & Talent Development Day.
My session “Exceptional Service: Enhancing the Customer Experience” stressed the importance of optimizing the customer experience throughout the various touchpoints with their organization. Those interactions define who you are in the mind of the customer, which can be a determining factor in them becoming or remaining a customer with you.
The presentation cited research that found that customers who experience greater value throughout their experience can improve both product use and loyalty.
Employees learned concepts and participated in exercises as a framework to spark ideas and to rethink current customer experience practices for potential improvement opportunities.