Some business owners view their business as a 3-legged stool….the product/service they provide, their customers and their business team. When all three are working well in a way that produces sufficient gross revenue to derive a profit (after expenses and salaries) the business is deemed profitable. This business may even be able to reinvest profits back into the business to patch holes, expand capabilities, or perhaps to attract more customers.
In fact, many business owners are able to ably provision a service, and build or manage a team.
However, one area that even experienced business owners (or senior managers) still struggle with occasionally is the customer acquisition -> customer retention cycle. Depending on your customer retention rate, you may be losing clients faster than adding new ones – and this can be an expensive way to keep your gross revenue and gross profit lines afloat.
If you’ve not spent sufficient time to ensure your current clients are immovably reliant on your business that may the one of the “next” items to address. Focusing on the best fit between your customers and your products/services is a key factor in the success of your business.
Some things to consider as you work towards the best match are:
- What problem(s) do you help your customers solve?
- How does your solution make their lives easier or better?
- When do they need your products or services?
These three questions will help you hone in on what situations in your customers life trigger a need for your products and the impact of your services on that situation.