Building Customer Value
One thing about customers is that they have memories and will remember you regardless if you remember them. Therefore, how you treat your customers is going to affect your future profitability. The more impatient a company to achieve results, the more likely they are to take some action that will destroy customer behavior.The value of a company results from the future accumulation of “free cash flow.” You just can’t go the bank and borrow more customers. There are only so many customers to go around so it is critical to take of your existing customers in a positive fashion because they will likely represent the source of additional cash flow. Your customers will come back multiple times if they are satisfied and will also recommend you to other potential customer. This will have a multiplying effect of helping your business build customer value.
Your customers are your most valuable asset and resource. Therefore, it is imperative for you to create the most possible value from the customers and prospects available to you. The constraint on your profitability is going to be the limited supply of customers. In tough economic times you need to reorient your thinking and reorient your company. The real secret to building business value is to build customer value. Remember, the good guys win in the long run.
In our next post we will share some real life examples of how the good guys win.