Most sustainable business models are perpetuated by the sale and delivery of products and services that generate significant financial and/or operational returns for our customers. Some of us may be fortunate enough to provide “exclusive” product/service offerings that make it difficult for our customers to defect to the competition, because little or no competition exists… yet. Most of us, however, are on the other end of the spectrum in that we provide deliverables that are valuable, and sometimes essential, but the customer has choices. Regardless of in which camp we find ourselves, all of us must successfully address the issue of how to best leverage our market offerings to sustain important customer relationships (i.e. generate deep customer loyalty) if our companies are to experience long-term financial health. In his book, Raving Fans: A Revolutionary Approach To Customer Service, Ken Blanchard emphasizes the importance of serving customers in a manner that turns them into long-term advocates.
In recent years, OOBE has crafted a suite of 3-step progressions to help our company visualize how to materially elevate our performance across all disciplines and processes. What we have discovered is that the path to maturity and improved performance in all disciplines—and especially within the customer care area— follows a progression of “React. Respond. Anticipate”.
The most elemental and unrehearsed response to market/customer needs is to react. Something unexpected (usually negative) happens upon us and we are suddenly under pressure to deliver a solution to the customer—quickly. It may be that the customer urgently needs an answer to a question, a product for an unexpected requirement, or a lower price to justify placement of an order. The problem with reacting is that we are caught off guard, and many times the speed with which we must assemble and deliver a solution compromises the quality of our output and puts us in the position of delivering a marginal, or worse, wrong, solution to the customer.
The next level of performance demands responsiveness. Responsiveness sounds good—for example—“We provide responsive customer service!” Being responsive, rather than reactive, injects structure into our solution creation and delivery process and provides us a better chance of adequately addressing the customer’s requirement(s) with our deliverables. Somewhat tongue-in-cheek, my perspective is that the only difference between react and respond is a little bit of time, thought, and prayer! The problem with being responsive is, somebody else discovered/identified the need and enlightened me. Usually that somebody is one of our customers, which puts them in the position of appearing to know more about market needs and customer requirements than we do, and yet we are supposed to be the experts and leaders within our field. Maybe not.
The most elevated level of customer leadership on our behalf exhibits itself when we demonstrate the ability to anticipate. Most of us can recognize prevailing needs and opportunities within our markets and customer base, but how many of us can effectively answer the question, “What is it that my customers will be craving 2 – 3 years from now?” Fashion provides a good subject to illustrate this point. Many individuals can recognize good style. Some of us may even be a little ahead of the curve in that we have an affinity for styles that may just be emerging this year, but next year are all the rage. However, there is a big difference between those individuals that possess the ability to recognize and select style, and those individuals that create style. Individuals that create style are rare. They have the unique ability to project where the market is headed, to anticipate the styles that customers will find desirable and attractive, and to create silhouettes and designs that are ultimately converted into apparel that flies off the shelves.
The generation of long-term customer loyalty that results in market leadership and a sustainable business model is largely dependent upon our ability to anticipate where our markets and customers are headed. Product lifecycles are so short these days that in many cases (not all), the lion’s share of the market proceeds and rewards go to those companies that provide the first legitimate solution that addresses heretofore unrecognized or emerging market/customer requirements. If our early and exclusive entries that address new business opportunities are reliable and are “fit for their intended purpose”, then we have the chance to take home much, if not most, of the prize money.
I encourage you to buy into the paradigm of anticipation. Think ahead for your customer. It’s not as easy as it sounds. Understanding and applying “The Principle of the Crooked Wire” will help you in this process. But we’ll cover that topic next time.
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