By Charles Alvarez , Contributor, the Price of Business Show. * Sponsored
For many of the business owners we talk to that are being challenges by their marketing results, we ask them what seems to be an easy question: Why do you customers buy from you? One would think that this is an easy question for business owners to answer and most do. However, what we find is that the aswer they believe is true as to why their customers buy from them is often very different from the actual reason their customers buy from them.
Fortune 500 companies like Proctor and Gamble, Apple, and Google, spend millions of dollars and countless hours trying to understand why their customer buy from them and why some choose to buy from their competitors. Large companies such as these cannot afford to loose track of why their customers buy from them or why the market may buy from their competitors. The simple truth is that no business can afford to not understand why their customers buy from them and why others buy from their competition.
Now, the simply truth is that we do not need to spend millions of dollars and countless hours investigating why customers buy from us. As a matter of fact, you may only need to spend a few dollars and a little bit of time finding out why your customers buy from you by applying the 80/20 rule. The 80/20 rule, when it comes to this blog, specifies that 80% of the revenue in your company is made up of 20% of your customers. For example, if you have 200 customers, the 80/20 rule says that 80% of your revenue comes from about 40 of your customers.
So, if you have 200 customers, I believe I just saved you quite a bit of expense and time. The reason the large publically traded companies spend so much time and money is because they serve a larger population so there is more to survey. For your company, by simply identifying who your top customers are and asking them why they buy from you will go a long way in determining why your customers buy from you.
Once you understand why they choose you versus your competitors, then it is a matter of crafting a message that resonates with your target market based on the survey results you receive from your top customers. This plays right into the principle of first find out what your market wants – and then give it to them.
So, what are you going to do to truly understand what your target wants out of your product or service?
Sponsored by the Price of Business, on Bloomberg’s home in Houston, TX