Size Doesn't Matter, Intent Does!

Usually there are books written about large successful organizations that have spent the big bucks in customer acquisition, branding and marketing and even bigger bucks in retention, often eating into the very initial investments made to acquire customers. There is a snob value in associating and writing about large organizations. Fortunately in India, small and medium businesses (SMB) reflect the pulse of the economy, not the large ones. The large ones are flirting partners for FIIs and FPOs at best and a tool for the elite and the suave to radiate through interpersonal shenanigans.

In large organizations budgets for Sales and for Marketing are independent. Sales is "Cost" and Marketing is "Investment" - whatever that means! Smaller organizations cannot afford to do that so they take a "Customer Journey View" and every penny spent is an investment- how much effort did it take me to acquire the customer,serve the customer, retain the customer and what would it cost me if I lost a customer. Interestingly many smaller organizations, in principle, have managed to establish "Demand Driven Supply Chain" without the support of large ERP investments. They have versions of it. Cost in SMBs, unlike in large organizations, is not just a $ value but the emotional attachment in the journey. In smaller organizations, #EQ has significant weightage because often, it is one person who wears multiple hats across the value stream- customer acquisition to collection. When I was in SMB, I used to often get involved in procurement and production planning decisions along with share of wallet chit chats.

Some may argue that most of the cost in the sales process is sunk cost but SMBs look at every cost as an "opportunity cost". Value Maximization is the core mantra - Could that money have been used to reduce debt or be reinvested in R&D etc? Having said that and having closely interacted with the SMB community, I learned something very critical about how to nurture and grow a kinder company and keep developing a brand in tandem, that employees are proud of. SMBs do not have the wherewithal to host mega events serving exotic food like "smoked loch fyne salmon, beetroot, horseradish" and in exotic locations to keep their business growing. They follow some fundamental principles that keep customer churns low and retain the best employees. They 

Invex - Time and energy is spent on developing a personal connection with the customers and suppliers. For manufacturing companies, the suppliers are the lifeline but for IT services companies, they are a cost. It's called Congruity not schmoozing! 

Trivia: Why is a pay pack in an IT services company called "Cost to Company"?

Enlighten - They do not perform song and dance to impress the customers, they teach the customer a thing or two and seek knowledge in return. Its called Reciprocity! 

Resolve - Large organizations have a structured process to select fall guys. In smaller organization, the owners/proprietors are the fall guys and the stakes are high. The proprietor is viewed as, what in Biblical reference will be, "Noah". The savior! The entire task force is resolved to solve the customer problem keeping in mind that the big guy is the only guy who will not get paid if "ageing report" is not closely monitored or if there is customer #attrition. In large organization, the big guys paid bonuses and ESOPS even when the company is bleeding and the ground force is living by the day. There is no "resolve" to solve anybody else's problem. Its called "Agency Cost"

Retain - Arrogance precedes empathy and large organizations can easily write off an irate customer. In large organizations, a customer is in opportunity for sales bonus. The selfish one upmanship culture in large organizations provide an ecosystem to nurture such skills . SMBs invest time, money and emotions on employee well being. Attrition to SMBs is not BAU, it's a reputation risk, a personal loss. The big guy takes it as a personal failure when a key employee exits because he/she is emotionally invested in the person. He/she is not just an employee number.

 There is really no large organization that is born large. Like humans they grow over time. Unfortunately most large companies forget the foundational values that got them there in the first place and thus fumble and falter. Sometimes it's worth parking the egos and looking at smaller organizations for best practices. Large does not necessitate good or vice versa! Keep an open mind.