What reasons do you give your customers to return ?
Talking to a businessman last week, he made a remark common at the moment – “it’s all about value these days”. By that, I think he meant that customers have become far more price conscious, indeed, it’s all that his customers are interested in. I’m not naive, customers have become more price conscious but surely it has always been about value and price is not the only game in town. You have only got to look at all the different types of car on the road to know that price isn’t everything.
Value is an equation – VALUE = PRICE x PERCEIVED BENEFIT.
Let me name two at different ends of the price spectrum – Asda/Wal-mart & Waitrose. Both grew in a tough 2009 UK food retail environment and both look at the value equation in very different ways.
So how can this help you ?
The point is that when business gets tough very often you don’t need a new strategy, to slash your prices, build a brand, get “out the box thinking” or obsess about beingÂ unique and different. The answer normally lies closer to home.
Understand the customer, what matters most to them and execute it excellently. There is no point in being different if the customer doesn’t care.
That’s the rub – many businesses have great plans but poor execution and it’s execution that counts. An average plan well executed will always beat a fantastic plan poorly executed.
So what to do ? Ask yourself a few straight questions:-
What is it that my customers value most ? Many businesses simply don’t know the answer to this question or make big assumptions about it. Knowing the answer and acting on it can give you a big advantage.
When was the last time you asked them ? Everything your business does should add value to its customers. If it doesn’t, stop doing it. Keeping in contact with your customer will give you strong insight.
When does my business interact with my customers and how do I fare at each point ? Each point is both an opportunity to shine and disappoint. Doing it wrong anywhere can make all the difference to the sale.
Do you obsess about Customer Service ? The best businesses do. How often is this a topic in your organisation ? If it’s not, it needs to go up the agenda.
One of the best books on this topic is “Simply Better” by Patrick Barwise & Sean Meehan. It’s one of the most sensible down-to-earth business books you can buy. I highly recommend it.
If you want to understand more about how you can make a difference for your customers and your profit call me today on (086-393-5437) or writing to me at firstname.lastname@example.org