Many companies now tend to focus more on revenue and higher profits than look for ways to gain the most loyalty in the local market. In this situation, the real needs of the client go by the wayside. Small businesses are no longer interested in the needs of customers.
We must always remember that even a small company can help an ordinary consumer to realize their immediate goals from each transaction. This makes regular customers, friendly to the service offered on the market. Although the desires and needs of people are individual, it is advisable to highlight the most attractive segments. Therefore, the choice of marketing tactics becomes important.
What is Customer Focus?
Before considering the choice of a marketing strategy to increase profits, we will define customer focus.
This is a set of measures implemented by the company to support its sales and improve the quality of service by personnel when considering consumer demand in order to meet the main priorities of customers.
Marketing strategies that are able to express customer focus may include:
- development of a quality product that is valuable to consumers;
- prompt and respectful attitude to complaints and requests of customers;
- sensitive response to the problems of the target market as a whole.
Choosing a Sales Strategy to Increase Profits
In classic marketing, two main strategies are described: Pull and Push. Very often, companies use them at the same time, complementing each other’s advantages.
Pull Strategy, is that the business creates strong incentives for the final consumer to make a purchase. Marketing is focused on “pushing” a product to a customer.
Push Strategy or strategy of retraction pursues the goal of satisfying the needs of the client. Marketing aims to engage the buyer in the transaction.
Small business owners can use both basic options to achieve their goals. First, they can create innovative products, and then find ways to generate demand among consumers. For example, a company can promote a new product for which there is no really high demand, creating it through a series of attractive advertisements.
The second option is to identify customer needs and then implement products that meet these needs. The latter approach can be called a “customer-oriented marketing model”, because it is based on consumer demand, on “pulling” the product into the market, and not on pushing the product to consumers.
Components of an Effective Marketing Strategy
Effective sales strategies for small businesses – this is primarily a business that focuses on the unique needs of customers in a carefully selected segment. Focusing on customer demand allows small enterprises to compete effectively even with large competitors.
Focus on Repeat Sales
Focusing on satisfying customer needs, and not just that the deal can increase the company’s profits. When customers are happy, they will buy regularly. Customer loyalty and their repeated purchases lead to an increase in profit per customer, as well as to lower costs due to the constant need to spend money in the pursuit of new customers. Loyal customers will recommend your business to their acquaintances, friends, and relatives. In other words, focusing on customer satisfaction can be a smart financial investment.
Your main goal should be to meet the needs of your customers at a fair price. This can be achieved through a thorough study of the target consumer. This stage is carried out before the development of a new product begins. Determine what consumer needs are not being met by your competitors, and design your service in such a way as to fill a free niche in the market. Use your advertising budget to explain to customers how your product meets their needs. After they take advantage of your service, offer quality customer support so that they know how you value their loyalty. You will need to regularly update your product line so that your company’s offers keep pace with changing customer needs.
Your employees play a vital role in a customer-centric strategy. For example, your customers prefer to contact only one person from the organization, which means that the quality of customer service depends on the actions of just one person. Any company specialist who does not share the client’s values jeopardizes the general business strategy of the company.
Stages of Building a Customer-oriented Strategy
Each company must go through four stages before it begins to implement a consumer-oriented marketing strategy.
Customer Identification and Segmentation
Effective sales strategies require customer segmentation into specific groups. Not all customers are the same; different segments will have different needs. The more accurately marketers can identify target segments in which companies will profitably sell their services, the better they will be able to differentiate their advertising messages in order to convey the unique benefits of the service to the target audience.
Examining Customer Needs and Preferences
The more a business knows about its customers, their needs and preferences, the more successful its sales strategies will be. While small business owners certainly have a lot of information in terms of their products and services and why they are great, customer interests are often different, and sometimes unexpected. Spending time to find out as much useful information about clients as possible: what they know, what they value and what their preferences for communication are; marketers will be able to build effective sales strategies.
Customer engagement will not be one-time. Businesses need to build relationships with customers so that they keep coming back and bring new customers interested in the company’s services. Building relationships requires attention to contacts with customers at all stages of development: from the first point of contact, when there is little interest or no interest at all, to future re-sales. This is a more expensive acquisition for the business, which will certainly pay off significantly.
Ability to Resume Service and Continuous Improvement
Despite efforts, errors can happen and sometimes customers may not be satisfied. Effective customer-centric sales strategies should include the ability to resume service delivery to guarantee recessions. If errors occur at the time of the provision of services, procedures should be provided for the quick and effective elimination of defects. In addition, it is advisable for enterprises to constantly be interested in the opinions of customers whether they are satisfied with the quality of service and how to improve the company’s services. This is becoming the basis for long-term success.
The risk of underestimating your customers can be a big disadvantage of any marketing strategy. Owners and managers of enterprises must remember the rapidly changing world in which people often change their behaviour and adjust the need for their next purchase. If there are more informed customers, small businesses should be flexible in using a customer-oriented strategy, being able to quickly update it.