 |
RESEARCH | |
| Customer
Relations By Julie Stewart. Massey University, New Zealand. Introduction The business of farming in New Zealand comprises the sale of produce, primarily meat and wool and to a lesser extent the sale of genes (predominantly rams and bulls). The emphasis on sire sales for any ram and bull breeder will depend on whether this activity is the principal income earner or secondary to the core business of primary production. This issue of Breeding Matters will be most relevant to those for whom selling sires is the fundamental business activity although many of the points can be applied to other aspects involved in the management of the farm business. The Product In the sales process, it is essential that products intended for sale are worthy of the time, expense and effort required to sell them. Most 'high tech' options such as AI and 'low tech' strategies like Performance Recording are aimed at ensuring the worthiness of your product by increasing either its quality or quantity or both. Such advancements are a means to the end of increasing (or decreasing) designated traits with the intention of making animals more marketable (saleable). The ram-buyer or bull-buyer may be more interested in the quantity aspects whereas for the stud breeders improving quality is a perennial theme. Unlike the commercial farmer who may look to more short term goals and activities to generate profits, the objectives of the 'gene seller' are necessarily long term, requiring a high level of commitment and a specialised approach to marketing. In the final analysis no amount of time, effort or impressive genetic trends will guarantee success without buyers (customers) for the product. The Ram and Bull- buying Customer A customer is simply a buyer or a purchaser. Many business owners still think if you wait long enough, and if you don't already have them, you'll eventually find customers...or better still they'll find you. Unfortunately this is not the case, and strange as it may sound, customers are not found, they are created. Your customers are not an interruption to your work, they are the purpose of it and the job of 'customer creation' (what marketing is all about) is one of the toughest in the business. It is also one that is most often neglected. Patrick Hogan, owner of Cambridge Thoroughbred Stud, home of 'Sir Tristram', told us that customer relations were the most important aspect of his stud business. 'No customer relations...no business, it's as simple as that'. The stud stock buyer of the'90's is more discerning and sophisticated than ever before, and in today's farming climate where the word survival not profit often prevails, many farmers are aiming to minimise risk while achieving returns from their farming operations. In short it's tough out there and the demand is for livestock that will deliver the greatest returns and remain profitable despite fluctuations in marketing and production circumstances. Farmers (like most customers these days) want guaranteed value for money and are looking to buy the genes that will best suit their individual environment. Identify Your Customers Unfortunately customers don't just happen along and your association with them like most enduring relationships, takes time to establish. One of the important steps in building a rapport with your customers is knowing something about the number and type you already have. If you haven't already done so, make a list of your existing customers and rank them according to how much they spend with you. In addition, you should also record the following information:
One of the keys to successful business is having a lot of 'good' customers. There is a principle known as the 80/20 rule which states that 80% of sales (and profits) are generated by 20% of customers. If this is true in your case, you should be doing all you can to keep the loyal customers you already have and to upgrade as many of your lower volume buyers into this category. Schemes implemented by some airlines such as the allocation of mileage points for 'frequent fliers' are aimed at just this. The same is true of discount cards, the Foodtown card for instance, which offer lower prices to regular shoppers. It is a lot easier and less expensive to keep the customers you have than it is to find new ones. As the relationship with a customer develops, profits will come from several sources: repeat purchasing, greater amounts spent and referrals resulting from word of mouth, which incidentally is one of the most powerful marketing tools you have. Remember that your customers are the most important people to walk onto your farm and never forget that they are not dependent on you, you are dependent on them. Marketing and Market Research for the Ram and Bull Breeder Many people reject marketing and market research strategies, stalwartly claiming that all that stuff is just academic. However marketing and market research is little more than a way of finding out who your customers are and what it is they want. Most of the common marketing strategies are designed to establish and strengthen buyer/seller relations. How you go about this is entirely up to you but it is always worth remembering that the more successful ploys are those that are the most personal. Farmers are no different from any other consumer, being influenced by the same range of motivational and psychological factors that affect the choice any product. Although for the ram-buyer or bull-buyer, objective information such as BV's contribute to the decision-making process, subjective criteria may be equally as influential. Some of the more common methods and media are:
Service At every opportunity, breeders should concentrate on instilling a sense of trust and confidence in their customers and the old adage 'buyer beware' should have no place in our modern breeding industry. Each breeder should provide (and buyers demand) written guarantees for traits such as feet and fertility and try whenever possible to help customers match the appropriate genes with their farming conditions. In the marketing process, service (guarantees and after-sale follow-up) is at least as important as sales. It is up to the individual breeder how far they want to go with their approach to service. One prominent beef cattle breeder offers to pay the value of those pregnancies the bull failed to produce (in this case $100 per cow not pregnant) an insurance similar to the live foal guarantee offered by Bloodstock breeders in the racing industry. Information At every step in the sales cycle, breeders should provide customers with value-added information as part of every product and service beginning with the initial contact, maintained by regular communication and followed by the provision of after-sales service. This may include specific information relating to the animals being offered for sale as well as a mission statement about personal breeding objectives and general management philosophies. The prospective buyer is then able to assess the compatibility of their own objectives and the suitability of individual animals. Breeding information may include BV's as an aid to selection and a statement about the criteria used in the choice of sires and replacement females. Management information may refer to policies regarding the use of anthelmintics and ultrasound scanning. Summary Above all the breeder/buyer relationship should be an ongoing one and although efforts to establish links can be more concentrated at sale times, it is important that customers be contacted on an ongoing basis. Regular newsletters are useful although some breeders like to go an extra step, holding open days and other promotional events. As a closing note, don't be satisfied with satisfaction. Don't try and provide a 'one-size-fits-all' approach but rather treat each customer as an individual with specific needs and expectations and hopefully you will be rewarded with repurchases and continuing loyalty. Customers
|
|
