Do you really know your customers?
Customer satisfaction should be the focus of every organization.
The competitive strategy should be solidly based on the systematic design and delivery - of the value chain - of new solutions to customer problems.
Customer satisfaction is key to profit and continue to improve the value / benefits delivered to customers. It is through non-financial aspects, such as high level of satisfaction, timely deliveries and fewer claims, eg, that greater profitability is achieved. However, it is not enough just to satisfy, it is necessary to make money.
In order to achieve positive and sustainable financial results, it is indispensable to know deeply, who is and what needs and desires (often, without verbalizing) the client.
It sounds simple. However, it is remarkable how something "trivial" is, in real life, difficult to achieve.
Customers can seek from the same competitive offer different benefits. Some want to eventually solve a functional problem, others want a closer relationship with a supplier in order to get integrated solutions, others may want to approach "emotionally" a brand, others want the prestige to do business with a particular organization, among others.
The client's understanding depends on an abysmal and continuous internal effort. It is dependent on everyone; organizational strategy, leaders, employees, internal processes, and the value chain. Of course, also, the customers. They are increasingly eager to interact with a company / brand and often participate in value creation processes.
The organization must first simplify the client's effort to the maximum and inform everything in this direction.
However, it remains the "trivial" initiative to observe, listen - including silence, talk, feel, propose and deeply understand the expectations met and not met by customers.
The process of client intimacy should occur continuously, as both the needs and wants of the client change, as well as the resources and capabilities of an organization. Markets are increasingly hyper-competitive and mutant.
Companies, therefore, should have robust processes with regard to customers and, similarly, fully understand why they do not acquire their offer from non-customers. Points of pain exist on both sides.
Since different clients can look for different types of value, it is necessary to understand what each type of customer really wants and prioritize strategic actions aligned with such specifics.
Does your organization, for example, have a structured and efficient system for receiving complaints, criticisms, opportunities for improvement and / or praise from its customers? Is there a feedback process developed? Are any complaints dealt with proactively and resolved satisfactorily? It is known that often, failing satisfaction, if solved efficiently, can even increase and still serve as a boost for a more positive word of mouth.
Organizations need to formalize and implement processes that make it possible to periodically review if the satisfaction of their clients is actually being assured and achieved.
The "abysmal" internal effort requires regular review of all internal processes in order to ensure that they are contributing to customer satisfaction.
The organization's strategy and especially its key leaders have a duty to clearly communicate customer focus and satisfaction. Genuine listening to the customer is imperative to identify new skills and knowledge that will need to be acquired to create more value for customers.
Employees are those who, in fact, materialize and deliver strategies through effective processes. Are these aligned with the strategy? Are they motivated, trained and committed to customer satisfaction? Are they involved in the decision-making processes and realize that there is a "cause to fight" and at the same time benefit from it? Without this, there is no way to match the desires of the customers.
Obviously, everything is dependent on how the internal and external processes work - or not. Efficient companies periodically review their processes with the objective of certifying how well their processes are working and contributing to the achievement of the strategic objectives.
It is not enough to review, we must correct any problems and improve continuously.
An entire value chain needs to understand who the customers are - especially the most loyal - and why they prefer a product, service and / or experience. It is also necessary to know what are the differentials of the organization for certain customers and specific product lines, in addition to their distinctive capabilities.
The rhetoric about customer focus is big. What seems scarce are structured and efficient processes that systematically capture the full understanding of their present and future needs, desires, and expectations.
This acute understanding of the client makes organizations innovate in value, delivering benefits that go beyond functional utility, adding emotional, social, and self-actualization value.
It is vital to go beyond easy rhetoric. It is essential to address the key processes to meet and retain customers. These processes align strategies and people in the uninterrupted pursuit of what matters most: customer satisfaction - sustainable.
Only the focus and understanding of the different types of customers is that they will lead to the design and delivery of early and innovative solutions and the respective reach of greater financial profitability for the organization.
Customers crave greater interaction with their preferred brands. Organizations need the knowledge of customers to innovate and thrive.
Alex Pipkin, PhD
Intl.Business Consultant | Associate Professor at UNISINOS Business School | Board member
6 年Alex, as usual, provocative texts!!