customer
preference vs.
market differentiation
Businesses wage war with their counterparts in an attempt to convince or convert the market to their business
proposition, claiming they are each distinct and different from
one another. And for some internally-focused reason that difference
is the basis for making them a better choice. Nothing will change
this for American advertising loves a good fight. But it ignores
a critical principle, "the greatest profit is found in keeping
the customer you already have.
"Why do companies spend millions of dollars to get business
but do almost nothing about keeping the business they have? Why
is it examples of good service are so rare they become topics of
conversation? Why is it the best offers are
made
to new-business prospects? An
attempt
to address this issue seems to have contributed to the increase
in "brand" advertising. But branding remains primarily,
a high-cost validation of a users choice — not a pure persuasive
instrument directed
at converting. One only has has to ask "What can
this process do to retain clients, or make them loyal?" The
answer is a resounding "not much." I don't believe
there's anything that makes me regret doing business with someone
more than
seeing an offer for new customers that is half the price I paid
yesterday. Should you use any long-distance provider as an example,
there doesn't appear to be much value in keeping my business until
I'm gone. Then I'm worth $25 and the better rates I should have
had in the first place.
Wouldn't it be great if all the people with whom we do business
said "We really appreciate your business and because you
continue to use us, we're going to give you (fill-in the most
attractive
offer here). Growing a business isn't about being different,
it's about "creating preference. Preference in its most
basic form means your client prefers doing business with you.
They enjoy the "process" of working with you. Their
perception is, "This person understands my needs." Eventually
this perception and preference translates into loyalty which
in a very
"non-magical" way becomes long-term profitability! Whether
you are a bank, computer service's firm or a mechanic -- your
focus
must be on short-term and long-term positive customer
experiences. Customer experiences such as...
- their perception of how easy it is to do business with you (should be easy, easy, easy),
- how well their goals are being met...
- listening to their needs (are you busy building products for the most common of denominators into which you squeeze clients instead of some flexible product offering clients view as a responsive, service-oriented, I-really-want-your-business action that keeps them coming back?)
Certainly these aren't the only issues. But the key issue remains a true "service" organization isn't going to make a perceptual difference in the lives of its customers unless it begins putting "service" back into the "business" equation. Service is to business what the golden rule is to society... "Do unto others..."
What a Client Relationship is Not!
There seems to be a huge movement to gain more and more knowledge
of the customer... "CRM." Customer Relationship Management
has exploded on the marketspace like some god-sent, viral, "end-all-of-your
client problems" solution. But data is not a relationship.
Relationships aren't managed, they are nurtured. Yes, you now "know" the
client as much as humanly and technologically possible. But are you
servicing them in a way that meets the emotional needs of a business
relationship? Are you connecting? This connection is the key to an
on-going relationship.
The Truth
At the heart of our future is this simple truth... we must service
the customer in a way that makes him/her "prefer" us as
vendor of choice. We must be capable of looking into the eyes of our
customers and, without blinking, say we can make a difference in their
business lives. Do this and competition is the guy sending his resume
to you.
contact us
You can email me at jeff@visualstrategies.com.