for official COVID-19 information. Dismiss

Vitalis Holdings 2020 #BusinessChallenge

#BusinessChallenge – Week 4

Last week we ended the STRATEGY theme. Hopefully, by now you have started to allocate your resources in your business to the areas that you will get the biggest return from.

This week, we commence with the theme CUSTOMERS and challenge you to think differently about your customers and you handle them.

#BusinessChallenge Customers

An unwanted need

I have heard many entrepreneurs say that “a customer is an unwanted need” or “if I didn’t need my customers, I would not have any” and so on. Whenever I hear an entrepreneur say this, I cringe.

Yes, I agree that customers can sometimes be difficult and frustrating to work with, but I see it this way. A customer that knows what they want and that is unforgiving until they receive what they expected, is actually the perfect customer.

Option 1. You could spend 2 hours explaining the benefits of your product or service to a client. Thereafter try and convince them that they are making the right decision for another hour. Only for them to have buyer’s remorse and return the product or cancel the service.

Option 2. You could rather have a customer who knows exactly what they want. They immediately understand how your product or service will benefit them and they are willing to use you, provided you deliver what you promise!

I choose Option 2 every single time as these customers will become your best promotors.

Not all customers were created equally

Your customers are not equally important. Never believe that!

I know, I know, its a rather bold statement to make but it’s true. Once you classify your customers according to the lists below, you will realise that some customers are not worth keeping. You really are better off without some customers.

Divide your customers according to the following lists for each financial year or 6 months or whichever period you wish to measure:

  • The Turnover that the customer has generated for you
  • The Profit that the customer has generated for you
  • The Costs you incur to service the customer
  • The Number of Staff you employ to specifically service the customer
  • Is it a Recurring customer or a Once-off customer
  • The Problems which arose while serving the customer
  • The customer’s Attitude towards your staff
  • Any other measure which might be unique to your business or industry or which you might think is useful.

Once you have finished with this classification, you will see some interesting things pop out at you. You might be surprised at who your most valuable clients are!

More on this next week!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to top