ADVOCATE COLUMN 2nd WEEK APRIL 2013

ADVOCATE COLUMN 2nd WEEK APRIL 2013 In March, Radio Live organised a presentation by their business commentator Andrew Paterson and New Zealand Institute of Economic Research economist Shamubeel Eaqub. What could have easily turned out to be a quick once over of New Zealand’s economic landscape was in fact a valuable insight into what is currently influencing Northland businesses and what lessons can be learnt from those businesses that have continued to grow during the Global Financial Crisis. Along with outlining Northland’s current performance when compared to the national average, the presenters highlighted Whangarei’s favourable geographic proximity to Auckland and the opportunities that this will present in the future as pressure for growth within Auckland continues to impact on the quality of life of its residents. Our competitive advantage within some sectors-agriculture in particular- was also identified as a potential positive. The main lessons to be taken from the presentation were about what growing businesses were doing to continue their growth and competitive advantage. Much of what these successful businesses are doing should not in itself be a surprise, what is interesting is that this behaviour is seen as differentiating them from their competitors. It was hard to leave this presentation without thinking that surely all businesses should have been doing these things regardless of the economic environment that they operate in. One thing these business builders were doing was being incredibly focussed on customer acquisition and retention. No surprises here you would think. How they have gone about this however may cause some of us to re-think what we offer to the market. These companies are ensuring that their product or service offers an authentic, tangible value rather than perceived, intangible value. For this to happen this value must be sustainable, meaningful and is a net benefit to society. Often lack of demand is a key concern to businesses responding to our business confidence survey. What these findings have shown is that it is essential that businesses understand their market and critically examine what value they are offering to their customers. Investing in technology makes it easier to understand your market and to create communities of shared values. Conversely improved technology also means business needs to be responsive to customer expectations and ensure that they are met or exceeded. Finally for all this to come together requires investment in staff as they will ultimately be the people who ensure the success of a customer focussed business.