If you don’t already understand that your business is customer driven and that it all starts and ends with the customer, then you need to read this. I am going into ten concepts that will help you define who your favorite customer is and what makes them tick. The fact that they all start with “C” as in customer should not be lost on you.
1. Commonality
You need to understand what specific elements they have in common – their demographics (age, sex, race, marital status, household size, occupation, income level, religion, education) individual consumers or companies (type), their geographics (distance, urban/suburban, rural) their psychographics (lifestyle choices, attitudes and behaviors that influence buying habits) and their quantity.
2. Congregation
What causes them to get together. Do they share similar characteristics (women shop differently than men, weekday shoppers buy differently that weekend shoppers, different ethnic group may have different product preference interests (Latinos choose different colors than Caucasians).
3. Communication
What key words and phrases they use to describe their pain and how they think your product or service will relieve that pain. When you communicate with them thes are the words and phrases you will use to relate your product to their point of pain.
3. Clarification
Clarify the specific problem they are trying to address and if they need one or more of your products to do so. Exactly what product mix they need and exactly how will your product or service make their pain disappear.
4. Countenance
Are they buying your product to save face? Do they really need your product, is it optional, or even more so is it considered a luxury item? This also determines how much they will spend on the purchase.
5. Cost
What are the factors that influence their decision to buy: price, quality, warranty, service, color, size, weight? Are discounts and terms important to them?
6. Compromise
Is the buyer the same as the user? Who makes the decision, how many levels of approval does the purchase have to go through and how long will it take to get a decision.
7. Consistency
Is their buying period tied to a season or a specific time of the month or week. How often will they buy the item? How often will they be using the goods/services they buy? This helps you to pick out repeat buyers and understand their buying frequency.
8. Credit
Do your customers pay in cash or by credit card. Will they want to pay in installments and will they want to put advances on a purchase and have you place the item on hold.
9. Contact
You need to have specific employees responsible for regular customer contact because customers always need and treasure follow-up servicing.
10. Competition
How do they compare your products to your competitors’? Do they consider your products unique and not available elsewhere. Does your competitor’s product fit the customers’ model for fitness and use.
Remember that it all starts and ends with the customer. If you don’t understand your customer and relate to him/her you will not be in business very long.
