IntoTheMinds has the skills to strengthen the sustainability of your company. With our expertise in customer satisfaction and loyalty, profitability analysis and marketing strategy, we can help you make your business stronger and less dependent as a result of crises.
Why do companies not succeed?
27%+26% = 53% of SMEs go bankrupt due to a lack of alignment with their market.
50% of SMEs go bankrupt in their first 4 years of existence, 75% in their first 7 years.
Finally, 27% of bankruptcies are caused solely by a lack of alignment between the SME and its environment.
Experts agree on the origins of SME’s bankruptcies. They are due either to a lack of alignment with their environment or to financial deficiencies.
Work carried out at the University of Liège (Belgium) showed that they were distributed relatively evenly. Neglecting alignment with one’s environment is, therefore tantamount to precipitating the failure of one’s products/services and accelerating the company’s financial decline.
“60% of bankruptcies could be avoided through better preliminary marketing analysis”
Gerard E. Hills. University of Chicago (USA)
Raymond W. Laforge. University of Louisville (USA)
By paying more attention to the preliminary marketing of its products (the study of customer needs, study of the competitive environment), Hills and LaForge estimate that 60% of bankruptcies could be avoided. The importance of the marketing component remains underestimated by entrepreneurs who focus their attention on commercial and financial aspects while sometimes neglecting objective criticism of the marketing qualities of their product/service. Yet a study based on the opinions of 14 venture capital firms that have financed and guided nearly 200 SMEs reveals that the importance of marketing was rated at 6.7 on a 7-point scale.
One of our specialities is to estimate the degree of alignment of your products and services with market demand and the needs of your customers. Trend studies, among other things, allow us to provide you with the most up-to-date information on the future of your market.
We also use a range of qualitative (some owners) and quantitative methods to detect potential sources of failure.
IntoTheMinds can help you at all stages of the life cycle of a product or service, even at the earliest stages. A more or less exhaustive analysis, depending on the case, allows us to quickly outline the potential for improvement. These are translated into concrete actions that our customers implement, with or without our help, to reposition their product/service.
Effects of loyalty on profitability
The importance of “building customer loyalty” has long penetrated all levels of society. Even the smallest SMEs are now trying to retain their customers in different ways. If the interest of loyalty is apparent, the means of generating it are much less so. Loyalty cards and other promotional actions are only tricks.
Traditional “loyalty” programmes, based on cards giving access to discounts or free products, represent a financial drain for SMEs. The example on the right shows how a program offering the 11th free product can reduce your profit by 50%. Only a 20% increase in sales will allow you to return to your initial level of profitability.
The history of loyalty is to be found in the satisfaction rate, emotional attachment to the brand and quality of service. All this is part of the customer experience.
IntoTheMinds intervenes by analysing;
- your product profitability and cost structure
- the state of customer loyalty
Our primary objective is to preserve profitability and increase profits without resorting to tricks (temporary promotions, gifts, and so on).
We act on levers that allow definitive changes: customer satisfaction, improvement of service quality, brand identification strategy.