Take care of your customers!
A Guide to Business Survival in Difficult Times… Part B
Difficult times. Yes, everyone who is involved in or employed by businesses agrees on that. Difficult times, indeed! But times that also have something to teach us. For both people and businesses, the rule is this: either you listen and learn, or you suffer and learn. Most people — the less prepared ones — fall into the second category. Either way, it is good to move forward using the tools we have each time. And perhaps the most valuable and precious tool is our experience. Let’s not underestimate it.
Courage, faith, and vision — together with focused action and commitment — are the ingredients for achieving our business goals. Our objective during this period is both survival and the creation of strong foundations for the future. The great challenge for all of us is to be the kind of individuals who can withstand economic turbulence and redefine their needs in a constructive and beneficial way.
We agreed in the previous article that this period is ideal for introspection, reassessment, and careful strategic expansion. We also agreed that every business has within its internal environment a wealth-creating engine that it barely knows or utilizes. We began to list the untapped internal sources for upgrading our business, starting with the need to focus on and create added value in our product or service. Continuing, we highlighted another source which, if used correctly, gives new vitality to the business: investing in high-quality human capital.
These two elements — the added value of our product or service combined with staffing the business with outstanding human capital — shield the company and increase the chances of improving turnover, as well as attracting the third vital element of any business: its customers. Today’s article will focus on the most important factor for its survival: the segment of the market that is willing to buy from you.
The Customer Base:
What is the profile of our customers and which segment of the market do we serve? What do our customers ask from us? What are their complaints? Do they trust us? Do they buy from us again? What connects us with our customers?
These are some questions you may have considered — or perhaps not. It is productive and useful to know our target market and its profile, because this allows us to determine what changes and improvements we need to make in order to shape a business image that attracts individuals or companies who want to buy from us. The more we observe, recognize, and define what our customers are asking for (beyond simply buying from us), the more successfully we will manage our customer relationships. It is always useful to remember that these relationships are two-way and are not measured solely in terms of financial gain.
Chris Duffy, a guru in customer relationship management, says:
“We must understand the following principles once and for all: Customers are:”
- the most important people for the business,
- independent of us, while we are dependent on them,
- people who communicate their needs and desires to us, therefore it is our responsibility to satisfy them,
- they are, in other words, life-blood donors for every business.»
Smart businesses, at this time, will demonstrate their commitment to their customers—a commitment that translates into an effort to delve deeper into and understand both their needs and their way of thinking. On the one hand, this period gives us the opportunity to readjust our existing strategy, enhancing our credibility—an attribute that is increasingly recognized in the modern business environment—and, on the other hand, to create a base of “loyal customers.”
Building this relationship of trust between us and a customer—a relationship that will endure over time—is not simply about talking to them about our product or service. Rather, it is about helping them see the value of our contribution to solving a problem they face, in the best possible way and at the most appropriate cost.
The creation of such a base of “loyal customers” can be systematized through a Customer Relationship Management (CRM) program. This program maintains detailed records of communications, contacts, and purchases between our business and our customers. It contributes to monitoring the quality of customer service, improving response times, organizing and recording communications, targeting prospective customers more effectively, managing collections, reducing operating costs, and more.
Another important service it provides is the generation of customer statistics which, when properly utilized, help us shape a more targeted sales strategy. The current conditions of economic downturn, where the profitability of many businesses that were thriving until recently is declining, make the use of new technologies imperative in order to achieve maximum results at minimal cost.
The Pareto “80/20” rule states that 80% of a company’s total revenue comes from just 20% of its customers, while only 20% comes from the remaining 80% of customers. By following the “80/20” rule, products and services can be offered that directly address the needs of our top 20% of customers. At the same time, it is important not to overlook the remaining 80% of the customer base, as at some point in the future they may move into the group of our “loyal customers.”
It is important to remember that, beyond new technologies—which undeniably help—we need to view our customers as partners: as people who help us produce, create, and succeed. Some practical tips we can follow are the following:
- The golden rule of good customer relationships (and not only) is to treat our customers the way we would like to be treated ourselves (as customers).
- It is important for our customers to feel a level of familiarity with our business that does not undermine respect for the product or service, our people, and the company as a whole.
- Furthermore, it is important to understand their needs and address them even before they ask.
- Something that is highly appreciated and adds significant value to our reputation in the market is offering our customers the best value and quality in our products and services at the best possible price (best value for money).
- It is wise to learn how to manage any complaints intelligently and productively.
- Είναι φρόνιμο να μάθουμε να διαχειριζόμαστε τυχόν παράπονα με έξυπνο και παραγωγικό τρόπο.
- Never, ever argue with our customer.
- It is important to listen carefully to and handle all issues that arise with prudence and professionalism—we can negotiate everything!
- We should remember that making the sale is not everything; what matters most is that the customer leaves satisfied and returns to us.
- And finally, we should set boundaries both in behavior and in demands. It is not always true that the customer is always right.
Courtesy, consistency in honoring agreements, a smile, and honesty are some of the key qualities through which customers connect with a business. Finally, we believe that the most important thing of all is never to take it for granted that a customer will remain a customer forever. Every day, we are tested on our credibility, our quality, and our position in the market.
