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When you study the college textbooks for the definition of a business, you are likely to find something like “an organization which produces a profit by meeting the needs of customers.” Too often that emphasis on the customer becomes more lip service than a true focus in the company. We emphasize managing inventories, hiring employees, getting the product and service out, and keeping up with bookkeeping. In all of this, the focus on the customer often gets lost.
If the goal is to grow company revenues and profits, the focus simply must be on customers. The dollars you want to see at the top of your income statement (revenues) and at the bottom of that same financial report (your profits) are currently sitting in the pockets, wallets, and bank accounts of your customers. The key is to focus on those customers such that we convince them to take the money out of their wallets and put it into your company bank account.
It is human nature to live our lives from our own perspective; growing a business often means being able to put ourselves into the shoes of others. One of the best definitions of “marketing” I’ve ever heard was “the ability to look at your company through the eyes of the customer.” In doing so, we are able to structure a company well poised to capitalize on the opportunities presented by the market.
“But don’t all companies put an emphasis on their customers?” Sara, the owner of a local flower shop, says as she listens to my consulting rant about the emphasis on customers.
In my opinion, when asked, every company will say they are focused on their customers and can show illustrations where they have put the customer on a pedestal and solved their problems. But there are degrees of focus in this area and most companies can greatly improve.
For instance, Sara probably knows that she has different types of customers in her business. She may sell to women who are decorating their homes, to men who are buying gifts for their wives or mothers, and customers dealing with a special occasion, such as a party or a wedding. While she has an understanding of these different customer segments, growth opportunities can be found by studying each of those customer segments at a much deeper level.
When we consider Sara’s situation and the different types of customers mentioned, it is easy to see that those different customers have a different perspective and different driving factors which help them select the flower shop they want to do business with. How well Sara knows each individual customer segment - and the motives, hopes, fears, and needs of each – and how well she caters to those drivers will have a huge impact on customer outcomes. As well, it dictates the growth of her business.
So what would I suggest for Sara? First, orient her own management style around a deeper understanding of her customer segments. Likely, this would entail writing down the customer types as part of a strategic plan and researching and answering some very key questions about each segment, including things like:
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“What is going on in the lives of her customers?
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“Specifically, what do they hope to accomplish from the purchase?”
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“What five things could be done to make the purchase more convenient or comfortable for the customer?”
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“What are four fears or concerns each of those customers might have and how do you address them in advance?”
By taking this information to a deeper level, Sara will be better prepared to manage her business effectively for growth. The pursuit of this knowledge should be ongoing. Once she has this knowledge at her fingertips, she can spread that information throughout her organization and her employees. Armed with this, the company is able to “focus on growth customers” and build the business. Grow your profits by growing your intimate knowledge of customers.
Curt Clinkinbeard is the Director of the Kansas University Small Business Development Center and is the author of HYPERGROW YOUR BUSINESS and CUSTOMER PILLARS. He can be reached at curt@strivecoaching.com.
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