This is another article on how to be a successful entrepreneur. I love everything that Brian Tracy writes. And as you know I am strong believer in owning your own business. So, I bring you this great article by Brian Tracy.
Every business starts and ends with the customer. Customer acquisition is probably your single highest cost. Its buried in marketing, in sales, and other things. But the reality is that getting a customer is expensive. Here are a couple of ideas for what to focus on to keep the hard earned customer.
The customer demands the very highest quality for the very lowest price. This seems simple except that many companies try to violate this law on their way to the bankruptcy courts. The customer is very smart. The customer will always act to satisfy the greatest possible number of his or her needs in making any particular buying decision. Only companies that cater to the customer’s relentless insistence on even higher levels of quality at even lower prices are successful in the marketplace.
Quality is What the Customer Says it is
Only the customer can define quality. Sometimes even the customer cannot define it clearly, but the customer will vote for quality by the way she spends her dollars. And more than 80 percent of buying decisions today are either made or strongly influenced by women.
Quality Includes Both the Product and Service
Quality also includes the way that it is sold, delivered, and maintained. The customer’s definition of quality includes all of the activities associated with the purchase, ownership, and use of the item. Prices in a quality restaurant are not based only on the fact that good food is served on a plate. A first-class restaurant, one that commands above-average prices and can earn above-average profits, also services the food in an atmosphere of comfort and enjoyment that people are willing to pay more for. Can you imagine a waiter in a nice restaurant slapping the plate down on the table and just walking away? Even a simple product can be sold and served with a cheerfulness and courtesy, thereby increasing its perceived value.
Profitability in Direct Proportion to Quality Ranking
What this means is that if a research firm was to go into your marketplace and conduct an honest, objective survey amongst the customers for what you sell, it could develop a quality ranking for your company in terms of how it compares to your competitors. A major reason that companies that are seen as high-quality companies are more profitable is because of the deep need that customers have for security or safety in their purchase decision. Better quality is associated in the customers’ minds with greater safety and predictability. The perception of better quality reduces the feeling of uncertainty or risk in making the buying decision. It makes it easier to buy.
Action Exercise
Determine your quality ranking in your industry. Use objective polling if you can. Use your intuition if you must. But be absolutely honest with yourself. Ask your staff and colleagues where they would rank your company on a scale from one to ten among your competitors, as well.
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