continued from...Build Relationships. Not Your Ego.
In my last post, I gave you the story about the reasons why most businesses small & large are failing. Firstly I'd like to take you back to the Australian multinational chain and the reason after so many years is rapidly losing market share. In this post I will refer the enterprise as company x. Feel free to join the dots
Company x has been operational for 91 years and is Australian household name. It generated 2.45 billion dollars last financial year and currently represents 39% of total market share. Their rival, company y (as I will refer to it) has passed their competition as has a 33.5% market share. Company x is currently going through a rapid shift its in day to day operations to try and improve their sliding profits, customer retention and staff loyalty. This is in a 10 year strategic operational plan for the company.
Here's why I think (in my opinion, with having inside knowledge of its operations), is losing market share rapidly, customer satisfaction & staff loyalty.
For over 91 years, company x has had one thing in mind. The largest supplier of good & services in Australia. A household name. One in every suburb. And even though they have achieved this in colourful fashion, it has now become apparent and with the market changing, their core values are no longer aligned with what the customers (you & me) want as a consumer. Their number 1 priority was making money.
I believe their outcomes today are the result of the last 10 years of mis-management and wrong key leadership directives. They (Management & Leadership body) are only now seeing the impact on their decisions made all those years ago. They are investing huge amounts of capital to claw back customer confidence, staff loyalty and of course customer satisfaction. Of course this just a snapshot. It covers all their operations across all their business interests.
So the crux of this story...I hear you ask is? What should be the focus of all business owners, managers whether they are large or small, country or city, online or mobile, local or international?
Is simply this...look after your customers as they are who pays your bills, they are the ones that will refer you onto their friends. Build meaningful relationships with your customers and that of your venders, your suppliers, your team & so on. Make them feel special, valued & important. Put the needs of your customers first. It's NOT about you.
Build your customers, and they will build your business
So what are your Core Values in your business? What can you do for your customers?