As a business owner, your job is to understand your customer's problem deeply, even more than they might themselves. Your role is to keep their needs top of mind and as a focal point in your own business, so you can serve them better than your competitors. You can do this, even with a small budget.
Here are three things you can do to ensure you can grow your business while focusing on the right customers.
1. Create solutions for your best customers
One thing the most successful companies do well - think Amazon, Apple, Zappos - is have a deep knowing about their customers. They consistently find new ways to develop new products and revenue streams that serve those customers at a superior level.
Entrepreneurs and founders can all talk directly to their target audience, look at forums where they are sharing their pain points and ideal solutions. Knowing your current and potential customers by understanding their pain points in their own voice is highly valuable and will ensure you can create solutions that standout.
Some common you can use to do this include:
Review relevant forums and groups
Conduct short and timely surveys to current customers
In-depth interviews with current and past clients
Contextual Observation of how they use your products
Monitor your marketing analytics and metrics for insights
2. Develop and nurture loyal customer relationships
Most businesses start to think transactionally when they have to make payroll, ensure cash flow and manage a growing operation. As much as cash flow is essential to keeping things running smoothly, customers are the true lifeblood of your business. Without happy customers your business will not last.
This is the reason developing customer loyalty is so important to long-term growth and sustainability. It costs more to acquire new customers than to secure repeat purchases.This makes the case for you to ensure they are happy and willing to recommend you without reservations.
According to copywriter and author Perry Marshall, who wrote 80/20 Sales & Marketing, the well-known 80/20 rule (the Pareto Principle) also applies to customers and revenues. He suggests that 20% of customers are responsible for 80% of your sales.
Customer relationship management tools and marketing analytics are essential in identifying those individuals you can incentivize, and learn how to attract and retain more of these ideal clients.
Marshall also explains in his book that about 20% — of your customers are actually costing you, in terms of the time and energy spent servicing their needs. Likely these individuals are not the best fit for using your products and should be referred elsewhere when possible.
In order to set up your business for scale, focusing on the right customers and nurturing those relationships over time is essential for growth and scale.
3. Advocate for a cause to dominate your industry
Leading brands give back to their communities. They all show a vested interest by developing and leading in arts, charity or sports. Think of companies such as MetLife, Prudential, JP Morgan Chase. They own concert arenas, sporting complexes and convention centers. These investments provide a return in marketing awareness, brand affinity and community or industry influence.
Not only does this support of local or artistic causes and organization show leadership, it also builds relationships that matter for growth and influence.
As a growing company, while you don’t have to invest millions. Donating a percentage of your income, time or other resources to support a cause can also lead to strong returns in relationships and revenues. Choose brands that support a mission close to the purpose or story of your business or services.
In the book Corporate Culture And Performance, John Kotter and James Heskett show that over a decade-long period, purposeful, value-driven companies outperform their counterparts in stock price by a factor of 12. When a clear purpose is present, leaders in those organizations can better engage and motivate employees, and bring affinity that engages socially aware customers and secure partnerships. As customers becoming more values-driven, businesses need to show awareness and affinity to relevant brands to differentiate their voice.
It is becoming more critical that modern leaders have a clear purpose and a way for potential customers and employees to see and engage with your purpose and mission. Advocating for a cause is one great way to do this for your brand while building customer affinity and loyalty.
Paying close attention to customer pain points, serving them with solutions they want, incentivizing their engagement and loyalty, and giving back to common causes and communities are three key ways that you can demonstrate why your business is different in a way that matters to your customers. This will help you drive growth and repeat sales. The best part is that this only requires simple and low cost tools that you likely already access. Now you can use them in new ways.
If you would like to learn more simple and accessible strategies to grow and scale your business with products that customers love, buy and rave about so you can grow sustainably. Go schedule a private consultation here.