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.

References;

Factors Influencing Demand

A Demand and Supply Graph

Demand and Supply Graph

Factors Influencing Demand

This article serves to supplement the article Influences for Supply and Demand, that I wrote a while ago. For a more general overview of supply and demand, I suggest visiting there first.

Demand has many factors that influence a market, such as;-

  • Changes to the prices to substitute products, such as cheaper products available online or at discount stores could reduce the sales of a premium product or product range.
  • Changes to the availability of complementary goods or changes in the price of complementary goods, such as two large luxury opposing ice cream companies.
  • Disruptions to the supply chain of competitors, such that their prices or other aspects change.
  • The incomes of customers could rise, causing customers to choose superior or premium products, similarly, they could fall and choose less or inferior products, Especially prominent for Elastic products or Luxury Items.
  • Advertising could increase consumer interest or make the product more noticeable to customers or potential customers.
  • Branding or PR could be used more prominently or advertised.
    • Recently companies have opted for using social marketing or guerilla marketing, as it can be more successful or noticeable since ad-blockers and the fall of cable TV and TV Advertising have made it harder to reach consumers.
  • Advertising or Branding of other competitors products could also potentially boost your own profits, especially if the product is generic or seasonal.
  • Changes to consumer incomes.

The demand for a product or service may also depend on the demographics of the product, if it is aimed at older people and the area is a student town, finding customers may be more difficult than other locations.

External Shocks, such as the economy or new technologies that make the product or service obsolete could also negatively affect the products demand if a business fails to innovate or adapt to change.