Companies tend to focus too much on their product or service, forgetting to listen to what customers are telling them. This often results in declining revenue and profit.
The goal of any business is to make money, but that objective is easier to reach when we listen to customers and know and understand their needs. The best way to do this is by listening to what they tell us. More often than not, in the course of a conversation, a customer will divulge information that is vital to our overall success.
Consider three areas related to customers:
* Individuals have needs: Individuals and families are looking to fulfill basic human needs with products and services that will improve their lives. Wise business executives listen to their customers. Executives understand exactly what people want, when they want it and what they will pay for it. They spend a significant part of the week visiting with customers, so they can respond with superior solutions.
I suggest that a business owner also invite all employees to regularly visit with customers, regardless of their assignments. With this collective knowledge, the entire company will be informed and united in what it takes to attract, engage and retain loyal customers.
* What do customers think of the competition?: Customers have choices when buying a product. Experienced shoppers commonly look at various choices. Your company's product may be just one of many options.
I believe we can benefit from listening to our customers' opinions about their level of satisfaction with competing products. What we hear might provide us with information critical to helping us deliver better solutions.
* Future customer needs: An ability to know or predict what the customer will need is critical. The late Steve Jobs was not only incredibly effective at understanding what people want, but also at innovating and providing a product to meet the needs customers didn't even know they would have. This unique ability was a huge contributing factor to his success.
Consider our appetites for Apple devices, from the Nano to the iPhone to the iPad to the anticipated iTV. Jobs not only knew the current needs and wants of people, but he also possessed the uncanny ability to foresee future wishes.
What should we learn from Jobs? We should not be comfortable with current solutions. We should look to the future and do our best to anticipate where we might take our customers with innovative solutions.
In summary, all great and successful company leaders have a clear understanding of their customers. It is the basis of why a company exists. It's the foundation of an organization's vision and strategy. Customers, if we listen to them, will tell us all we need to know to develop the right products and services to grow a viable business.
We will succeed as business executives if we spend 10 hours a week or more visiting with potential and current customers. We need to learn what they're thinking and make sure we deliver exactly what they want for a price they will pay.
It's really that simple.
Most great businesses, large and small, follow this model today. They talk to customers constantly, always taking note of any changes in thought or behavior.
Alan Hall is founder and chairman of Grow Utah, a not-for-profit entity with a mission of stimulating economic development through entrepreneurship. Portions of this article appeared in the Deseret News in October.
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