(In movie trailer voice) In a world where business leaders struggle to find growth opportunities, one man dares to ask...
the seemingly-simple question that tips the first domino in a profit cascade:
"Who are our best customers?"
When I was asked to grow American Express' online gift card business, the answer to that question caused us to change the direction of the entire business.
And grow it exponentially.
At the time, we "knew" our core gift card customer was someone looking for a last-minute gift.
Can you picture that guy?
Out of breath from rushing- he saw 10 people carrying flowers and other gifts before the realization hit him: it's a special occasion!
(Caution: The above description is for illustrative purposes only. It is not intended as a gift recommendation, particularly in the context of wedding anniversaries.)
While that was true for people buying gift cards at retail outlets, it wasn't true for online. After researching it, our best customers turned out to be salespeople and sales managers who gave gift cards to their customers and employees.
Once we knew that, we rebuilt our entire online business to better address the needs of those customers.
We added bulk purchase options, a discounted shipping program, and new products with more relevant messages and business designs...
Those changes more than doubled the business in the first year.
It may seem like a simple question, but answering it requires deep insights and a thorough understanding of your customer base.
Review your client list, look for patterns, analyze the data, discuss with your team, and most importantly:
Ask your customers.
Their feedback can be crucial in understanding what makes them choose you over competitors and what else you could be doing to add more value for them.
We often focus so much on attracting new customers that we overlook our existing customers. They already believe in your product or service.
And they’re paying for it!
They have the potential to make a huge contribution to your growth.
Pause, reflect, and realign your strategies if they’re not focused enough on your top customers.
Who buys from you most and why? What did you learn about your customers that surprised you or led to growth?
Preconstruction Manager at Williams Company
1moLook at all that Yellow Iron. #SelfPerform Ross Beckman