Start-up Sutra #27: Own the Customer Relationship

I like to walk.

Walking allows me to "check-off" multiple daily objectives in one fell swoop including moving my body, simply being by myself, catching up on my go-to podcast The Prof G Show, or connecting with others.

Frequently these walks are with friends... giving us an opportunity to share, listen, and tunnel into some challenge one of us is facing. 58.7% (approximately) of the time - discussions during these walks are business-related. (For more on the value of Peer Support - please check out Sutra #89.)

In one recent walk - a close friend shared a recent interesting curve ball thrown at him. In a nutshell - a worthy AND much larger competitor had 1) opened an office in his turf but more concerning 2) created a new business line copied directly from his unique playbook. Without question - the move was an intentional and full-frontal attack.

Walking around Denver's historic Wash(ington) Park, we explored response strategies. While turning the northeast corner of the Park - old memories began to arise of a very similar past experience back in my 1.0 days. (Cue flashback effect).

During my previous Start-up, our firm focused on Enterprise Software... specifically SAP. Competition was fierce. The field was crowded. Nonetheless across most of the ecosystem, partners cheered for each other wishing all success in an "rising tides raises all ships" mentality. It was very much a coop-petition. (In fact - I consider several of my most worthy competitors both friends and mentors to this day.)

However over the years, we did encounter some hostile vendors mercilessly focused on staking their claim on off-limit customers. Ain't gonna lie... not all players competed honorably. A handful brought cannons to the knife fight.

Specifically, there was one powerful and intimidating Senior Account Executive from the Mothership - who we shall call Cruella De Vil - notorious for throwing my company under the bus, bad-mouthing us to anyone who'd listen, and always looking for opportunities to get us kicked out of the client... ALL while presenting a fa?ade of collaboration.

How do I know this?

The customer told me.

In fact, the only time NIMBL ever became important to her was when we were an impediment to one of her sales. Literally but once a year, her holiday-time "Howya doing Yash?" outreach somehow always seemed to coincide with the fiscal yearend.

Like clockwork, come December when software discounts are its highest (and in turn - the customer's incentive to buy) - I would receive that awkward phone call looking for me to "put in a good word" to our mutual client attempting to influence her sale. I always took her call and politely told her I was unable to assist. Her yearly response was a thinly-veiled threat warning me of her influence with our shared customer and the potential ramifications. Needless to say, this didn't help our "partnership." (By the way... my name is pronounced Yosh not Yash.)

Regardless of her influence and muscle, I was not afraid of her threats and/or "potential ramifications." Why you ask? Because we had developed such a trusted bond - one built over many years - we owned the customer relationship. Outside forces - including Cruella - simply could not impact our client partnership.

As the saying goes - the customer is always right. Therefore, the customer ultimately controls what, how, when, and for the purposes of this Sutra - WHO they choose to work with. Regardless of what competition exists, how they are behaving, the weapons they bring to the battle, etc. NONE OF THIS MATTERS.

If you have earned and own the coveted customer relationship - the customer will choose YOU with whom to partner.

Understanding this fundamental start-up tenant provides focus for you as a founder and quiets any noise from external forces including (especially) any competition.

Talking through my experience with the Queen of Dalmatians together provided some space for my friend to pause and reflect.

After walking a bit more in silence, he began to share some of his own examples of strong customer bonds. Discussing this very real and often scary scenario helped us both remember the criticality of building unshakable customer relationships - partnerships - even a Ms. De Vil - can't disrupt.

As we turned south along Downing at the top of the park, a tired owner was feverishly attempting to navigate the onslaught of runners, walkers, and bikers by an adorable Dalmatian puppy. A sign? Will let you decide... but I have my opinion... of course.

As always - would love to hear your thoughts/comments and shared experiences re: your customer stories.

[Disclaimer: I do not remotely profess to embody this sutra (please see my Startup Sutras original post for more background); practice this sutra as much as I should; and/or be any role model. Like all ideals, I strive as much as the next to practice as much as possible.