DON'T BE
FOCUSED
In
this crowded and competitive market, we all realise that looking after
our customers is important. Not that we are doing that very well mind
you. I
was reading an American study the other day where over 80 per cent
of those surveyed said customer service was an important factor in
their decision
to buy, but 41 per cent said they were not getting the service they
expected.
Really successful companies know that even if they were delivering excellent
customer service, it would not be enough. These companies understand that customers
are not important to their business, they are their business. These companies
are not customer focused, they are customer driven.
Customer focused companies spend a lot of time understanding their customers.
However, what these companies focus on is finding out what service their customers
expect, and how satisfied their customers are with their products and services.
Customer focused companies think about their products and services and, because
of this, they use the information they gain from their customers to find better
ways to sell their offerings to new customers.
Customer driven companies, on the other hand, put their customers at the centre
of their universe. These companies strive to see the world through their customers’ eyes
and their research is directed at understanding the problems their customers
have, how much these problems bother them, and which ones they are prepared
to pay to have solved. Thus they end up under-standing, not just what their
customers want, but what their customers are prepared to pay for. But most
importantly, customer driven companies use this information to change the way
they run their businesses. What they learn from their customers is used to
develop new products and services, new ways of communicating with their customers
and new distribution channels. Sometimes they even change the way they are
structured, just so they can make it easier for their customers to do business
with them.
But why should you worry about whether you are customer focused or customer
driven? Most companies have one large area of vulnerability they are not aware
of and that is their existing customers. Most of us spend our time and other
resources prospecting for new customers which, of course, is becoming increasingly
difficult - and increasingly expensive - in a mature and saturated market.
Meanwhile, our existing customers, who might have been doing business with
us for several years, are sitting back asking, ‘What have you done for me lately?’ Most
businesses lose 50% of their customers over five years. Reduce this by as little
as 5% and you could double your profits. Even a 2% reduction has the same effect
as cutting costs by 10%.
In this dynamic world you cannot afford to ignore your existing customers.
Their needs are changing everyday and that means they need different things
from you. You cannot keep giving them what you have always given them and expect
that they will stay with you. Your customers don’t need a new marketing strategy
or sales promotion from you. They need new solutions to their problems, and
they need to be able to do business with you in new ways. If you don’t respond
to these needs, they are likely to think about going elsewhere.
Besides, your competitors are probably trying to poach them even as we speak.
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