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Customers and Competition; Love them or Hate them?
| Guest post by: Nicholas Fraser |
Article Overview: Love them; Hate them; Customers or Competition that is? Well the obvious answer would seem to be that we should always love our customers and hate our competition. But is that right? We know the phrase that the customer is always right but there are times when businesses, their owners and managers need to challenge that ethos. The key objective of any business should be to deliver value to the shareholders however that is measured.
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Free Download - Understanding the market By Nicholas Fraser |
Customers and Competition; Love them or Hate them?
Customers and Competition; Love them or Hate them?
Love them; Hate them; Customers or Competition that is? Well
the obvious answer would seem to be that we should always love our customers
and hate our competition. But is that right?
We know the phrase that the
customer is always right but there are times when businesses, their owners and
managers need to challenge that ethos. The key objective of any business should
be to deliver value to the shareholders however that is measured. Many leading
books on customer service would suggest that focusing on the customer’s needs
and requirements and creating value for them will result in generating value
for the shareholders. But in these hard times of dog eat dog one has to be very
careful not to give too much away; to be focused on delivering just the right
amount of service that will deliver profit to the provider and value to the
consumer.
Many times I see businesses in
desperate trouble because they have lost the focus on this key issue. Only
today I met with an MD who was over delivering service to a customer who did
not value what was being provided. Even worse the customer was not paying in
good time (owing him some £100K) and disputing any slight glitch or problem. Customers
like that can destroy rather than grow. Customers need to work in partnership
with their suppliers and understand the mutual benefit of supporting each other
in these times. Suppliers need to focus on building up trust and relationships
to show that both parties benefit with care and consideration. One of my
clients who supplied major retailers decided to stop supplying one well known
brand retailer for just that reason. Too many issues; too many disputes; too
many problems over payment. The balance had been lost and so the right decision
was to focus on those customers who did value what was being delivered. In my
past I well remember delivering services to two companies. My team would move
heaven and earth for one of them and put the latter to the back of the queue.
And that was because the latter company treated my company and my staff like
dirt. So always value your suppliers because you will lose out in the end.
Now what about competition? Well
we hate them don’t we? Big mistake! Competition can help us in many ways. For a
start they are creating opportunities by opening up the market with their sales
and marketing activity. And in your own sales and marketing it might be
tempting to focus on the things that the competitor does not do well. In other
words patting yourself on the back on how good you are. But the reality is what
they do well is exactly what should focus on. What they do well is just why
they are winning business from you and what you need to improve or emulate to
ensure you succeed. If they are not as good as you in any area then they will
fail won’t they? If they rely on price then you can be sure you are biting them
hard and so ensure you make them charge as little as possible to get any
business. Unless of course they have some advantage over you in the costs of
sale? If that is the case look at your production and supply line to ensure you
are competitive.
Therefore you should see the competition
as your friend. They should guide you to where the opportunities are. Not necessarily
on whom they are selling to but who they are not selling to. Use them as your
guide to the gaps in the market that are waiting for you to fill.
In summary you should really the love the customer and
your competition. So much that you really want to understand them and make the
right decisions for your business.
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About the Author: Nicholas Fraser RSS for Nicholas's articles - Visit Nicholas's website He is currently splitting his time with running a new software startup Newera Controls - an exciting Energy Management and Control application and is in the process of raising Venture Capital to launch it worldwide. Click here to visit Nicholas's website   Are you drowning or swimming Knowing When to Sell Whats the worst word in Business FAILURE Surviving the downturn and coming out of it stronger Communication Respect and Trust |
Related Forum Posts
Re: Two Useful Books To Help You Focus On The CLIENT
- Hi David,
To add to your thread, I'd like to recommend Jonathan Tisch's "Chocolates On The Pillow Aren't Enough: Reinventing The Customer Experience".
Tisch's book includes content on "Welcoming Customers", "The New Art of Customization", "The Challenges of Customer Diversity" and "Offering Something Extra to Your Customers" to name a few.
Re: Congratultations to GT!
- Hi GT,
Competition is great and i know I wouldn't be here without it, but it is not the main reason for posting and participating. But I admit, it is the trigger I need to get some work done.
If there is none, i create one for myself and try to make it.
First prize is ice cream.
Re: Quote of the Day - Oprah
- Love it - thanks GT!
Re: Quote of the Day - "Failure is a word I don't accept." - Joh
- Love that one - thanks GT!
How to Do Great Marketing with (Amost) No Money
- I've given this presentation to CEOs many times. Now i can share it with you. But I cannot because I do not yet have 20 posts.
Jeff Ogden, President
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