If you’re planning to develop new products and services, you should test them with your customers with just as much care and attention as a new business going to market for the first time.
One way of finding new customers for your products and services is by increasing awareness in your local area. Read through this article to find out how you can attract new cusotmers
Permit me to take you through a random muse on customer management and the kind of relationship you should have with them.
I will be introducing you to two renowned models that you may have come across.
But first let me make these assumptions upon which the first framework/model is built upon:
1. Not all customers are profitable
2. Your business shouldn’t be set up to satisfy everyone
3. A loyal customer is not necessarily a profitable customer and vice versa
4. Your resources as a business is finite. Thus, it makes a business sense to primarily focus on those that are both loyal and profitable
Now to the first model
This model, which was developed by Reinartz and Kumar is called the Customer Relationship Groups. It helps you to classify your customers into 4 major groups as shown above.
The model also helps you to effectively build a relationship with the Right Customer or pivotal customer.
There are two major variables that are used to classify your customers:
Each of this variable could be high or low. Thus, a customer with a high potential to bring in revenue and/or increase your profitability but with a resultant low loyalty is called:
Butterflies make you money but aren’t loyal.
have low profitability and low loyalty
have high loyalty and they are loyal to your brand but they bring in low revenue.
Lastly
have the potential to make you high revenue and they are also loyal to your brand.
Now every organisation has these different types of customers. It could be even related to your employees.
How do you manage each of them ? How do you ensure that your finite resources are effectively and efficiently met?
How do you achieve synergistic effect?
The model below will help answer this in synopsis.
This is the stakeholder’s analysis model that was primarily introduced by Mendelow to classify and manage your various stakeholders.
A stakeholder meaning anyone with a conceivable interest in your business e.g, shareholders, staff, suppliers, customers etc.
2. Strangers = monitor (exert minimum effort)
3. Barnacles = keep informed through your marketing efforts or various customer touch points
4. True friends = manage closely. They are your golden eggs.
End of random musing.
This is Nokia 3310
the first ever mobile phone device I personally owned. The product was launched in 2000 and as a matter of fact it was one of the most iconic and cash cow products of Nokia Plc selling over 126 million units.
Nokia and Motorola, were the dominant players in the mobile phone industry in the early years of the 21st century.
Apple however, only launched its first ever iPhone in 2007 and ever since then they joined their arch-rival Samsung to dominate the smartphone industry leaving the two former giants way behind.
Among the multifarious reasons that have been cited one tend to be a common denominator:
Apple and Samsung understands this message hence why they tend to release a new version of their existing products every 6–9 months on average to the extent that we now have an over supply of excellent products in the market. The customers are spoilt with choices.
Like Nokia 3310, if you don’t constantly seek to improve on your personal brand in line what what your target audience (employers, customers) need, you will be replaced by those who can.
Seek to constantly reflect, project, adapt and readapt your offerings in line with the needs of your audience