How Do You Define a Customer?
Can you define the word customer? What does it mean to be a customer for your business?
Do you consider customers as people who just buy your
products or services? Are there different types of customers? If you cannot
answer these questions, then how in the world can you develop customer loyalty?
Over the years, I have come to define customers as:
"Individuals engaged in transactions for mutual benefit or gain."
In this way, the definition extends beyond paying customers - to people who
conduct transactions that result in some benefit or gain.
Much is written about both external customers (clients) and internal
customers (employees) especially with the 21st century business focus on
customer loyalty through improved customer service. Research continues to
reveal that companies with high levels of loyal customers experience far
greater growth both in sales and profits.
Over the years from my corporate to my consulting experiences, I have come
to identify customers whether internal or external as one of these 3 types:
Explorers - These individuals, as clients, buy what you sell, explore to buy
more and are the sources for innovation. Employees who are explorers do
their job with focus and then explore to see how they can help others.
Explorers are loyal and will rave about your business to everyone they meet.
Vacationers - As clients, they patronize your business, but will travel next
door if the price is better. Vacationers as employees will do their work,
but can be easily distracted. They will hardly ever go beyond what they are
supposed to do. Whether the vacationers are clients or employees, their
loyalty can be quickly switched to your competition.
Prisoners - Now, these folks truly do not want to be in your business.
Possibly, your business is geographically close to them or you are the only
distributor for a specific product or service. Given a choice, they
would not purchase from you even if you gave it to them for free. And when
they do purchase from you they make incredible demands. If they are
employees, prisoners barely do their work and are constantly complaining.
Prisoners have no loyalty and will quickly share their displeasure with 6 to
10 other individuals.
Customer Service Coaching Tip: Take action by looking at your customers both
external and internal. Identify any prisoners and determine how you can fire
them even if they are paying customers. Then set goals within your
customer loyalty growth action plan to begin to convert a percentage of your
vacationers into explorers. Track the results from that action plan. You
should realize both an increase in profitability and a decrease in operating
costs.
About the Author
