Current Affairs - Written by admin on Saturday, August 9, 2008 8:20 - 1 Comment

Why Customer Focus Differentiates

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>> by Ray Miller

Discover the benefits of customer focus and the link with customer loyalty and profitability..

Has this ever happened to you? You’re in a hurry. You want to complete your business and the person serving you is preoccupied with something other than serving you. Then when you are served, you might get an insincere apology for the delay followed by the completion of your transaction. If asked to describe this experience you would likely respond “That’s typical” or “It’s nothing more and probably a little less than I expected.”

Welcome to the world of the average consumer.

Most people will probably tell you that good service is just common sense. They would also invariably say “For something so common, it sure is hard to find!” Edward R. Murrow said it very well: “What is obscure, we eventually see. What is obvious usually takes a little longer.”

Research from a litany of reliable sources tells us that the primary reason that customers switch their loyalty from one company to another, in the range of 40% to 68%, is because of a perceived attitude of indifference on the part of the service provider. Sure, some leave because of price, or product quality, or other personal reasons; but the vast majority leave because of Poor Service.

These days, customers are really in the driver’s seat. The options and choices of similar products at similar prices at similar quality levels are greater than ever.

Advances in technology, reductions in production time and access to global distribution mean that products and services can be duplicated and customized faster than ever before. And your customers know this!

Consumers have more choices than ever before. This creates an interesting challenge. How do you create value when customers today are not seeing much difference in the choices they are offered?

Customers tend to look at value from four perspectives:

  • the Price of the product or service,
  • the Quality of the product or service,
  • the degree of Innovation offered by the product and
  • the Service provided to customers.

The quality of products continues to improve universally and competitors have developed the ability to duplicate even the most complex of those products. Innovation attracts younger consumers but no sooner do we see one innovation, than someone else comes along and clones it plus adds a few more bells and whistles.

Read more at Return on Behavior Magazine by TeleFaction



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Heinz
Oct 29, 2008 12:57

Agreed … with consumers! Do you (still) see this also with customers in the B-t-B (in particular I’m talking about the capital equipment industry)?

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