Tool Box
Issue No. 11 - June/July 2003
Who Are Your Customers?
by Bill Anschutz
The question seems almost too simple to be taken seriously, but a lack of clear understanding of actual and potential customers, is a major reason for failure.
Those businesses and organizations that have not clearly identified who their customers are, cannot provide a clear focus for their business. Their lack of focus also makes room for other counterproductive agendas, waste and internal conflicts.
Some businesses and organizations do not recognise that they have customers. Some think that patients, students, constituents, patrons, clients, members, partners, audiences and staff are different to customers. Seeing them as customers will create more productive relationships. Others are obsessed with the technical sophistication of their products and services and have never thought much about who may want the benefits that the product or service offers.
Defining customers and customer focus is about understanding and clarifying the reason for the organization to exist.
Customers buy product or service benefits, warm feelings and solutions to problems. Who then needs or wants your product or service benefits, warm feelings or solutions to problems?
A simple review of current and past customer names, locations, goods or services purchased or distributed, sales value and frequency of repeat business, will provide a starting profile.
The other equally important analysis is to determine what happened when a potential customer called or visited and left without finding what they wanted, or being able to negotiate a purchase. (Lost sale analysis). Both need to be measured, in a manner appropriate to the size and type of business.
Some simple profiling and market analysis can provide a more factual basis for understanding what needs to be done to keep your organization on course.
Consider the costs of generating an inquiry, telephone call, visit, or any other type of contact,
Add the operating cost of busines...
