Every business in the world operates in an
evolving marketplace. Evolution of these markets is driven by an infinite
number of factors, not the least of which is the evolving tastes and needs of
our customers. The ultimate goal for any business should be the establishment
of a profitable customer base which is stable, predictable and can be relied
upon to provide consistent revenue for years to come. Imagine knowing that your
business can count on revenue of “X” for the next 5 years? How would that
impact your business? How would that
change your life?
To win a customer for life, your business
must offer a solution to a problem. Your target customer’s problem should be
ongoing (best case scenario for your business), and they must never lose
confidence in your solution and your ability to solve their problem. The theory is
simple, and yet infinitely complex. Consider the following buckets when
building your business strategy:
- The benefit of your solution must outweigh its cost. You must also communicate the value of your solution to your customer; if your customer is not aware of everything that you do for them, it will be easier for them to replace you.
- Your customer must like your solution and your company. When you are likeable, a competitor who successfully replicates your product will still need to break the bond between you and your customer. However, if your customer doesn’t like you, the minute that they have a viable alternative to your solution, they will seek it.
- You cannot solve every problem your customer has. Build your solution around a problem that will support your business objectives. Choose the problem you will solve carefully:
o
A dynamic problem will require
a dynamic solution. This means higher costs for ongoing development of
solutions, higher costs for deployment of solutions, and, due to lack of
experience with a new problem, a higher risk of not solving your customer’s
problem perfectly.
o
A static problem is easier to
solve, easier to ensure customer satisfaction, and easier to forecast potential
for the future. Be aware, however, that a static problem makes it easier for
new competition to enter your marketplace and will drive down the price for
your solution.
- You must prove your solution to be trustworthy. It would be wonderful to never make a mistake, but it is also impossible. As a result, it is critical to build into your strategy a plan for how to treat your customers when problems arise. One of the most powerful ways to build customer loyalty is to do such an impressive job fixing anything that goes wrong, no customer will ever doubt your brand’s credibility or your company’s integrity.
o
This is also the most powerful
way to gain a referral, strengthen your bond with your customer, and create a
barrier to entry for your competition.
- You must be able to support the delivery of your solution.
o
Whatever the medium for
transmission of your solution, having the best people, technology, customer
service, processes, and infrastructure etc to support your solution will be
critical. Without excellence in the foundation of your business, there will be
no stability to support your solution.
- You must evolve your service proposition. What you offer today will become the standard your customer expects from you tomorrow. You need to find new ways to exceed their expectations.
- Treat your employees like they are employees for life. They will respond with the same way when they are servicing your customers.
Regardless of the stage of your business,
you will be well served to (re)consider each of these buckets. Test your
strategies against these basic principles and keep your strategies simple so
that execution is a foregone conclusion. Maintaining focus on these
fundamentals will ensure that your business remains optimized and your
customers remain yours, for life.
