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Contestants on NBC’s “Fear Factor” must decide
if they have the guts and determination to face their most primal
fears. While we may not want to admit it, we all have a fear of
one kind or another: fear of height, commitment, or maybe the dark.
Businesses are no exception. Fear of change and fear of competition
often top the list. However, both of these “fear factors”
can be motivators for a business; that is, if they are faced with
certainty and knowledge.
How can a business remain determined in the face of a changing
environment or increased competition? Knowing the market and being
a step ahead of the competition is the best way. Companies who regularly
solicit input from customers, vendors, employees, and prospects
are armed with information that will empower them to overcome adversity.
These companies become proactive rather than reactive.
Some fears are justified. A competitor may enter the market with
a new technology, producing the same (or a better) quality product
while offering it at a substantially lower price and higher profit
margin. This would be a reality-based fear for many high-tech companies.
However, some fears are unsubstantiated. A company may fear that
sales will be eroded by a competitor who is cutting margins to attract
customers. In reality, internal miscommunication and logistical
snafus may be causing customers to defect to the competition –
not for a better price, but for better service.
Such was the case with a national medical equipment supplier. Research
among lost customers revealed that account representatives were
not following up on issues and were shipping incomplete orders.
Logistical problems were segmented by zip code to pinpoint exactly
where shipping errors occurred, and the company was able to significantly
decrease the incidence of customer churn and win back lost accounts.
A company that faces its fears is empowered to move forward with
confidence. While it may not be wise to challenge employees with
bug sandwiches at the next board meeting, digging for information
well beyond the comfort zone can be a very good idea. ‡
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Is
Fear a Factor in your business?