Of Course I Know My Customer!
As business owners, we each have our own version of what defines a customer. It may be more obvious in a retail business than a professional services organization, but regardless, without customers we have no sales.
I began my career in computers, writing software so that people could access the data they needed to run their business. My customer was what we called the end-user. Now, at my golf course and restaurant, which are more traditional retail models, my customer is easily defined as either a golfer or someone who enjoys eating out — or both.
In our magazine, Edible Vancouver Island, things are a bit more complicated. It would appear on the surface that our customer is our audience; our readers. Without them, there would be no one to share our stories with. And for our editor, that is the case. For the sales team, publisher and the business overall, however, our customer is our advertiser. It is they who we depend on to generate revenue. And in turn, our readers are their customers.
Is Your Audience your Customer?
And how then, does your audience fit in?
Whether you publish a magazine or sell shoes, digital marketing is now an important part of any business strategy, and like it or not we all have an audience.
Your marketing strategy can include everything from a simple website to blog posts, electronic newsletters, Instagram, Twitter, Facebook, TikTok, Reels, Videos — enough to make your head spin! So many platforms that you could be using to reach people. But are they the right people? Are you reaching your customer? Your end-user?
It is easy to get caught up writing posts on social media, feeling that rush of dopamine when you see the little red hearts on your screen. But are you reaching the right audience? Are they buying more and impacting your bottom line?
In the business of magazine publishing, for example, can you use social media to reach both your readers and your advertisers? Or at the very least, does the impact that your digital marketing has on your audience translate to value for your advertisers and can you demonstrate that?
The Exciting New Customer Trap
We all know in theory that it is much easier, more cost efficient and more profitable to keep a good customer than to find a new one. Business 101. However, do we really walk the talk?
Are you paying attention to your current customers, and do you understand how and where you’re adding value? Sometimes it seems easier not to rock the boat — what if they aren’t actually happy? And new customers are so much more interesting! I myself am a self-proclaimed “hunter not a farmer”, always looking for the next big win. But not only will spending time understanding your current customers go a long way to maintaining your sales base, it will help you understand the value that your business provides so that you can sell it to new customers.
This is not about your sales rep or account manager doing their job. It is about YOU, as a business owner, understanding how your business is meeting your customer’s needs, strengthening relationships and building customer loyalty. This does not mean you need to connect with thousands of individuals – but having a basic understanding of who sees value in your product or service and why, will help you do better.
Often we find ourselves paying attention to the difficult customers, trying to please someone who may or may not be worth saving. How many times have you given a discount to someone who complains constantly, just to appease them. And how many times have you given a discount to the loyal customer who you never hear from?
I recommend that you pick a handful each week to connect with in person. Not just to say hello in passing, but to reach out as a business owner to have a real conversation.
How many customers do you currently have?
What defines a “current” customer – have they purchased this month? This year?
What makes a “good” customer?
How long have they been customers?
Do they also work with your competitors? Why?
How much have they spent with you over the past year? 3 years? 10 years?
Are they happy with your product or service? Your team? Your prices?
How many of them do you know personally?
In THEIR words, what value do you provide them?
Who do they know that might be interested in your product or service?
Do they speak kindly about your business? Why or Why not?
Can you use them in a testimonial?
Are there any customers that should be “retired”? Why?
How do you reward or thank your best customers?
In the end your business exists because you are providing value to someone else, and they in turn are willing to pay for your product or service. Once you become crystal clear on who your customers are, it becomes much easier to answer all of these questions. And of course success, happiness and world domination will follow!