Are Your Customers Really Being Difficult?
In today’s blog post on her blog Valeria Maltoni lists the “Top 10 Reasons Why Your Customers are Being Difficult” and on my comment that I prefer to look at the “customers” more like “client” she replied something that provoked my post. This is what Valeria wrote:
“@Toddy - however, interestingly, many businesses are set up to have transactions, keep moving people through the funnel or pipeline. This might be fodder for another post as things are changing rapidly especially in types of businesses that are evolving.”
This brought up the question how may businesses are set up to have transactions or keep moving people through the pipeline? And is this the right business model? The only one I can think of is the grocery business and even that one can lose customers if it just uses the conveyor model.
Let me give you an example. Imagine you have few choices of grocery stores to go – let’s say Whole Foods, Safeway, QFC and Trader Joe’s. How do you choose which one to go to? Here are few criteria you most probably use:
- Closest location
- Assortment
- Quality (Organic food:))
- Price
- Brand preference
Let’s say that you are a snob and the brand preference is the most important for you. Than the financial crisis comes and you cannot pay anymore the triple price for organic food in Whole Foods and you settle on the low price (for the same organic product) in Trader Joe’s. Once the crisis passes then you go back to Whole Foods and everybody is happy – you saved money during crisis, Whole Foods got you back and Trader Joe’s made few transactions with you. This is typical for pipeline businesses – they don’t care who comes in and who goes out as long as they can sell you something. As Valeria wrote, many businesses are set up that way – they consider their success by the number of transactions, and this is the most important for them.
But what if?… What if for example Whole Foods finds a way to keep you as their customer during tough time. What if they provide you with some incentive so you receive part of your money back – whether it is a cashback, or discount coupons, or rewards card, or link to Upromise account. There are many options they can choose from. The key is they know what are you looking for.
I know that it is easier said than done. You may say: “How are they supposed to capture the feedback? Stick surveys to the apples?” Not really! But if you give me an apple I will be glad to fill in five-minute-survey for you:) Knowing me, and you, and the guy staying next to you in line they will know what they can do to keep us in their lines and not move to their competitors’. We call it “feedback loop” but the loop is not closed until the business reacts on the feedback.
I think the point here is not whether your customers have been difficult; the point is whether you know your customers and whether you adapt your business according to your customers’ needs. Here are the two questions you need to answer:
- Is your company transaction oriented or customer oriented?
- Which one will position you better in the long term?
