Customer Focus in Business

Understanding that a customer has needs when using a good or service can allow a business to identify marketable opportunities for increasing profitability or maximizing revenues. For a large portion of customer focus, its about communication.


Small Breakdown of developing customer focus.

A customer focused approach can be adopted by many aspects of a business, such as;

  • Sales
  • Management
  • Location
  • Customer Service
  • Marketing
  • Growth and Extensibility

Many customers will have different needs and goals and there are many aspects to a business that may need to change to adopt a customer-first approach, but the payoff is;

  • High Customer Retention
  • Long Term Commitment
  • Greater Profitability
  • Greater Customer Satisfaction

However, adopting such an approach may also have some negative business consequences;

  • Increased Spending
  • Increased Overheads
  • Increased After-Sales spending
  • Immediate responses and on-site negotiation
  • Lower Profitability
  • Harder Automation or lack there-of

Providing a Customer-Focused Approach to Sales

Giving the customer what they want is paramount to ensuring a customer-focused approach. Customers usually can appreciate a hands-off approach to getting things done and are usually willing to pay extra for it. Providing a service that is better than the competition or providing greater pre-sales support increases, for example, through online-chat or in-person representation allows the business to increase their potential to close a sale and provide the customer greater satisfaction in their choice.

There are many ways to provide a custom approach to sales;

  • Offer a product that is superior to competition – If your business is able to deliver a product better than the rest, you can capitalize on its potential to increase the customer’s satisfaction.
  • Use Marketing that drives the customer toward package solutions – providing a complete service, rather than a means to an end will allow for greater satisfaction, and as a by-product greater opportunities for increased added value.
  • Guide the customer – Inform the customer of any regulations or licensing that they may need, arrange to set that up for them as part of the service.
  • Offer tertiary products that complement their purchase.
  • Provide Pre-Sales service to ensure the customer is satisfied through demonstration or information.
  • Understand the customer’s stated clear needs and objectives to provide a product they would be satisfied with.
  • Know when the customer is ready to talk, and when they aren’t.
  • Exceed the customer’s expectations.
  • Develop relationships that the customer values.
  • Offer solutions to suit the needs and concerns that the customer may have before purchase.
  • Don’t be passive. Engage with the customer
  • Ensure customers receive what they ask for and gauge success

Offering a way for the customer to reflect their satisfaction, through survey or metrics will allow a business to identify where they achieve, exceed or disappoint the expectations of the customer.

Providing a Customer-Focused Approach to Management

A large part of Customer Focus for management staff and management, in general, is providing proper training for staff to fulfill the needs of the customer above and beyond their expectations,

  • Management shouldn’t be a roadblock between the customer and the sales staff. Provide a framework that can be followed such as a budget or develop routine customer stories.
  • Provide training to ensure the sales staff know what isn’t allowed.
  • Use appropriate means of communication, don’t push for sales.
  • Have measures in place to prevent abuse, A case study about continental found on average the lowest value customers whose flights were delayed were receiving the highest compensation.
  • Know your market segment and the needs of the customers, if a customer does not care about your values as a business, you need to change to be competitive.
  • Provide staff with a view to the customers’ interests and an incentive to stick to it.
  • What is the best way to collect customers’ responses and respond to issues?
  • Coordinate your teams as a group with clear ground rules and goals but don’t alienate the customer

Providing a Customer-Focused Approach to Location

When a customer wants a product or service, they may be willing to pay more than the going rate for convenience, more-so due to the new market for app-based food deliveries and same-day online shopping. Having the customer see your storefront when they need to is a perfect situation for both parties.

Many businesses also opt to help the local community and sponsor community projects.

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Business Processes Re-engineering

When a business grows and adapts it often requires a lot of overhauls, both physically and digitally. Processes that previously worked or were effective for purpose are no longer so. Because of this a business will re-engineer part of its business processes to adapt.

Reasons Why a Business May Adapt its Processes

A business may change the way it functions for many reasons,

  • The business is expanding and it’s old process needs to handle the additional capacity or machinery.
  • The function the old system used to serve has been superseded or removed from the business process as it is no longer required.
  • The business is being merged or acquired by another and duplicate processes need to be removed or increased and vice versa.
  • The process currently being used is not dynamic enough to be useful anymore or is causing issues.
  • A process is failing or is not always effective.
  • The current process has too many avoidable errors.

Reasons Why a Process May Need Changing

A business may change it’s processes for many reasons, such as ; –

  • Improve the speed of operation.
  • Improve the customization or dynamic of a process.
  • Improve the continuity or compatibility to connect the process to other processes.
  • As a reaction to changing legislation, laws or consumer complaints.
  • Improve the efficiency of a process.
  • Improve the operating cost of a process.
  • Improve the output or capacity of a process.
  • Improve the working capital investment in a process.
  • Improve quality of a product.
  • Change the product.

Re-engineering a process not only requires identifying a change but enacting that change can take a lot of steps to complete, especially for products in areas that are heavily reliant on compliance and conformity, such as electrical appliances or medial tools.

Improving Efficiency Caveats

Changing a business process can be risky and should have appropriate risk analysis in place where processes are crucial to the business process or jobs.

Many businesses re-engineer their processes simply to ensure that their product or products match demand. Overhauling business processes may not be financially viable if the number of defects or failing products outweighs the cost of replacing the machinery or software process.

Improving the speed of a process may make the process faster but the business may also want to change the system implemented, such as using a batch process system where the job can be completed as part of a ‘batch’. Having many batches however can lead to greater working capital on complex components or products and can mean that if there is a problem with one then it is likely that the whole batch is also going to fail. Batch processing can also make quality control and quality assurance much harder and more expensive to enact.