June 28, 2012
Accounting & Taxation, Financial Strategy, Improve Cashflow
Are you giving your customers what they want, or what they need? Is the customer always right?
For those that haven’t heard it before, I will quote Henry Ford; “If I’d given my customers what they wanted, I’d have given them a faster horse”.
So the question becomes, “are you giving your customers what they want, or what they need“?
In my mind there are only three ways to grow your business:
- Get new people to sell to (More customers)
- Sell more to your current customers (Higher sales per transaction)
- Get your customers to buy more often ( More purchases per customer)
All of these ways to grow your business are based on your customers, so that means that your focus needs to be on demand, not supply. And what I mean by that, is that it’s not about what can you can provide, it’s about what your customer needs.
My challenge to you is this – if you are only giving your customer what they want, you will find it very difficult to seriously grow your business.
So, how do you know where the demand is in your industry? To find out simply answer the following question:
What do you know about the needs of your most profitable customers that your competitors don’t know?
Let’s break it down into four smaller questions:
- Who are your most profitable customers?
- What do they need? (Not want)
- How do I differentiate my products or services to satisfy this need?
- How can I get my team on board to satisfy these needs?
Let me give you an example very close to my heart. Imagine you are an accounting business. What do your customers want? If you answer the question with ‘tax returns’, then you’d be 100% correct. Most customers come to accountants because they WANT their tax returns done.
However, the team at May Partners has found (after some serious questioning, probing, investigating etc) that most businesses NEED;
- Strategies to grow their business
- Improved profit
- Better control of cashflow
- Reduced taxes
- Protection of their assets
- More time
- Improvements with their team
- A succession plan for their business
Consequently, we have now developed products and services to serve these very needs. What does this mean for our business? More customers, higher transactions per sale, and more transactions per customer. It absolutely means this, but way above and beyond, it means a much happier and better served customer.
If you want to grow your business begin by determining what your clients NEED…