Tuesday, December 1, 2015

Categorise your customers for great service and sales


Ukwala Supermarket on Tom Mboya Street in Nairobi. PHOTO | FILE
Ukwala Supermarket on Tom Mboya Street in Nairobi. PHOTO | FILE 
By SRIRAM BHARATAM
The purpose of business is to create and keep customers. Businesses love or lose customers; simple. No need for emphasis.
Some customers are demanding, some are understanding, some happy, some unhappy. You will find such everywhere, but they are not what is the subject of the write-up. Take a look at the four key categories of customers and find where your product lies.

Progressive customers: “If you want to sell more to these customers, you better know why they buy.” These are always looking to buy advanced solutions or capability, not necessarily the latest.
They have a specific problem, an idea or a need they want solved at any cost. They are forward-looking, willing to take the risk, can pay a premium, provided the value is right. In many cases, they would want to make changes or modifications to meet the need.
They are not to be confused with the demanding customers who just want things the way they want and whenever they want. The progressives are willing to walk the path with you.
As long as you give them the confidence and comfort that you know what they want and you have it.
In fact, mostly younger generations of family owned and run businesses belong to this category because they have seen the challenges that their organisation has gone through and a lot of them have the fire in the belly to change things.
They are meticulous in identification and evaluation of the solution and prospecting of the vendor.
So if you come across one, then grab them. That is why consultants are such a huge hit when it comes to progressive customers. The buying decision in this category is usually made by senior managers or the ownership.
Long-term buyers
Relationship customers: “Your customer does not care how much you know until they know how much you care.” The relationship customers are always looking for a reliable, accepted product with attention to service.
They are not looking for the most innovative or advanced product or service, but are looking at stability, consistent supply, quality, service... a stable partner. They usually make large and complex decisions, meaning they are long-term buyers.
They either further process your product or use them in their product and so want to maintain and ensure the consistency. They don’t have to go looking for another supplier every now and then.
They have extremely good product knowledge, as in they know what they want to the lowest detail and specifications.
This category is not very demanding as long as they know you are there to sort them out. They are more frequently found in traditional businesses, for example, manufacturing etc
If you got such customers, keep them safe as they can give you long-term, sustained revenue. One customer well taken care of could be more valuable than Sh1 million worth of advertising.
These customers do not expect you to be perfect, they just expect you to fix things when they go wrong. So, handle their service with care. If they see that things go wrong too often, then they look out for alternatives. The buying decision in this category is usually made by middle managers.
Enterprising customers: “Nothing is so contagious as their enthusiasm.” The enterprising customers are bubbling with energy to get something unique.
They are looking for innovative, exclusive, custom-made designs, sometimes for personal use and in other times they are exploring with a unique concept and need solutions.
If things work well, these unique concepts are money-spinners. Often, solutions for such customers need you to be technologically savvy and entrepreneurial, otherwise you may find it difficult to manage their expectations.
They may not have prior experience of having bought such products or such solutions, but know what they want, which may not be in finer detail but they are willing to listen to you if you have the technical capability.
A few such customers can keep your life busy and active as they make sure they get attention. At the same time they can be good.
The buying decision in this category is usually made by entrepreneurs themselves or senior visionaries in the businesses.
Standard product
Competitive customers: “The customer experience is the next competitive battleground.” The competitive customers have fair expectations, they want a standard product, at a competitive price.
Once they have established that you have them, they are hassle-free customers. They make quick decisions to buy and stay longer with you.
These customers do not look for any customisation since they need little help in making the purchasing decision, so you do not need to have a great deal of selling expertise.
At the same time the switch over from your product to another is not difficult unless you have a compelling reason for the customer to stick with you. It pays to give them the best.
The buying decision here is usually by the purchasing and administrative section.
Sriram is the founder and chief mentor of Kuza Biashara Limited that coaches youth and SME owners in Africa. He chairs Entrepreneurs’ Organisation for Africa. @Sbharatam or  sri@kuzabiashara.co.ke.

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