Business mentor: Engaging with customers can turn the tide

Q: I'm embarrassed to say we have lost our focus on our customers and are, therefore, losing about 10 per cent market share to a competitor every year. We must do something about this as it is affecting staff morale as well as the bottom line. Could you give us a fresh insight as to how to view the customer so we don't just do more of what our competitors are doing?


A: Leading customer relations mentor John Lees replies:

The art of customer relations is constantly changing.

When considering customer relations, think first about the following:

* The relationship of service performance to the firm's economic results.

* How to be "connected" to your customers beyond just doing transactions with them.

* How to engage in "centre field" marketing or the art of contribution.

* How to influence and lead customers in detailed and general ways.

* How to create unity inside your company, rather than have people operating as units.

* Understanding the difference between attention "to" the customer and achieving benefits "for" the customer.

One key area outlined above is moving your organisation's thinking from distribution to contribution.

Just about everybody is involved in some form of distribution, be they distributing products or providing services.

Businesses have to be good at that in order to be noticed by the market, to take a reasonable share of that market and to keep their customers.

But to grow and develop your customer relationships, your firm must get involved in "contribution".

Contribution is not expected by customers but it is needed to grow the relationship with them.

It's a question of understanding that the greatest need of a customer is not simply products, because they can access these quite easily through all manner of distribution networks.

Contribution looks deeper into the nature of the problem or need that a customer has and creates myriad ways to meet or solve these issues.

That's contribution on a service/sales level. On a more general or corporate level, examples of contribution could be: introducing management systems for sales teams to use, sales and service systems, staff-training programmes, or the creation of a marketing association that customers could belong to, which would provide benefits in terms of education and information.

The effects of such actions are increased staff productivity, leading to more sales. Ultimately, your company would be the preferred supplier and not just involved in distribution.

In essence, distribution is the flow of product through a market and contribution is an improved performance with the product in a market.

Basically, if all you do is give customers what they want, then you're involved in distribution. If you begin to find out what they need then you're involved in contribution.

This is valuable because often customers can't diagnose their own needs for your products and services - they only know what they want.

If there's a better way of doing it, they often don't know unless another customer tells them.* For more information, visit Knowledge Gym

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