Business Optimization for Customers
Is there unique one type of customers for a business? It is impossible. Every business has different customers or buyers. There are no businesses in which all customers will be the same. Each behavior, needs, and desires will not be the same… Here is how you can make business optimization for customers.
It is normal for you to try to satisfy all the different customers for their business. But, is it possible? Big businesses have big resources to make this possible? But what about small businesses? Do they have the resources for such ventures? They may not have resources, but they have flexibility and shifty entrepreneurs who are so far away from the spiral of large bureaucratic companies!
In the following part of this post are given some ideas on how to combat this phenomenon and how we can be able to satisfy many different persons with different needs. I call this a business optimization for customers.
1. Segment Constantly
Good customer segmentation which is constantly monitored and updated will give you an excellent picture of the existing differences in your customers. These differences will require different, specific and personalized offers. Optimize your offer to respond to their needs.
2. RFM Formula for Business Optimization
RFM formula is an acronym from the initial letters:
- Recency – Timeframe between orders?
- Frequency – How many orders they make?
- Monetary Value – What is the value of their orders expressed in money?
Using this tool you will be able to know which customers are more important and which need more attention. This will enable you to optimize your business.
3. Portfolio Approach
The portfolio approach to manage customers helps you to simply divide them into four quadrants based on the potential (future) and current (present) value of a customer. With this tool, you will know very which quadrant is most important and how to react and to optimize your business for all quadrants. In some of the next post, I will explain more of this approach.
4. Understand Real Customers’ Needs
Nobody is your customer only because it wants to be. Everyone has some problem that tries to solve within your business. One of the reasons why businesses fail is inadequate understanding of their customers’ needs.
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If you have enough understanding of your customers’ needs, you can be able to make business optimization for customers.
More details on how to understand the needs you can find in the 10 Steps to Better Understand Customers Needs.
5. Simply Ask Your Customers What They Want!
Sometimes the simplest way to optimization is to ask your customers about:
- Are they satisfied?
- What makes them more satisfied?
- How can you improve your offer according to their needs?
Questions may be in the form of a survey, or simply ask them after each sale. You can use your business blog or website to ask this type of questions.
6. Social Networks
Many, if not all of your potential and current customers are on one, two or more social networks where they share different experiences, problems, and needs inside their networks. Be there, and follow what’s happening and where you can give advice or help give it to them. Here you can find their needs, their different experiences, desires… All of that is valuable for your optimization.
These are some tools you can use to optimize your business. However, it is not the final list. You can use everything that can make your business better optimized. Know everything is up to your creativity.
