With all the negativity in the country at the moment, there is a positive that is emerging – a public and consumer consciousness and activism that is denouncing greed and egoism, demanding answers and insisting on delivery and value.
We are entitled to ask why taxpayers’ money is being spent on enriching the political elite, while the destitute see no change in their daily lives. And consumers have the right to be up in arms when Eskom senior executives are awarded bonuses at a time when the country’s power supply is in crisis.
As a business owner, your customers have the same rights and attitude towards your company. Why should you be enriched when you don’t deliver the value to your clients?
When you are chasing short term bottom line targets, it’s hard to turn away income, but remember, greed is the enemy of a sustainable strategy.
A world of abundance
The first thing to remember is that there is a lot of business out there. We need to rid ourselves of the scarcity mindset, and we need to acknowledge that our customers have a voice and a choice. Competition is healthy and should be welcomed as it is often the catalyst to improve performance, find difference and deliver brilliance. You need to constantly prove to your customers that they made the right decision to do business with you.
The carrot and the stick
While it is good business practice to lock clients into contracts, it is shortsighted to employ a retention strategy based on a contractual obligation to do business with you. Rather than focusing on terms, conditions and consequences, focus on your service experience and product offering to ensure that your clients stay with you because they choose to, not because they are forced to.
Value in the short term leads to loyalty in the long term
Value is what your customer is prepared to pay for a product, without feeling ripped off. Yes, you want to charge the most you possibly can, but not at the expense of leaving a bad taste in your customer’s mouth. By charging a reasonable price for your product or service, and demonstrating the value, your chances of repeat business and referrals are much greater. Offering a discount or a free product or service to sort out an issue or complaint can also go a long way towards retaining the customer for future business.
Acquisition cost vs life time value
Sometimes you need to spend money to make money. You need to see marketing as an investment rather than an expense. It is a valuable exercise to work out what your average customer will spend with you in a lifetime, and once you determine this income, the cost that you spend to acquire and service the client will become more palatable.
Ego and ethics
The one factor that you can control and fiercely protect is your reputation. The decisions you make need to sit well within your conscience and you need to sleep well at night knowing that your actions and behaviours are ethical. There are currently numerous examples around us at the moment that prove that self-interest can get in the way of a winning strategy.
It’s time to take a long hard look at yourself. Could your clients point fingers at you for being shortsighted, greedy and egotistical? Have confidence in what you offer. Embrace competition. Think long term. Be proud of the decisions you make. And sleep well at night knowing your strategy is sustainable.
I’m off for a weekend away with my wife! Have a great weekend everyone!
Regards,
Greg
