Last week, I shared 5 ways (out of select 10) to push towards profitability and growth. Startups are fueled by ambition, passion and audacity – they shrivel up and die if stagnant and cash flow negative. Though our focus areas might be building tangible/intangible value at the cost of healthy finances at the start, the right priorities at the right time are a must. It’s all about money in the end.
Perceived Indifference & Prices are key reasons for customers to jump ship.
Pricing strategy involves adjusting your prices to accommodate healthy margins. Making money is your right. If customers run away looking at prices, it means they don’t value your offering enough, and that should ring alarm bells. Offer more value than what you charge, in form of service experience and benefits. Customers seek a certain relationship with your organization and might not always be forthright about it. If they perceive indifference towards them, you leave them with no compelling reason to stay with you. No one likes receiving the cold shoulder, being ignored and not being heard. Give all your customers your full attention and be a good listener. They will reward you with their loyalty and evangelism, which is priceless!
The speed at which the quote is delivered helps.
This is because delay creates doubts about the reliability of the supplier to deliver on time. Being prompt is a trait that is always admired. Your eagerness and enthusiasm to serve is well appreciated and wins over customer loyalty. There is no place for misplaced pride here, and being laid back is not something we want to showcase. The speed of delivery is seen to be directly proportional to your competence and sincerity. No one wants to be associated with a lazy, careless ‘brand’, and you do not want to be ‘that guy’.
“Why were we selected?”
In today’s age, attention and permission are priceless. Gone are the days of push marketing. Customers have options, hold leverage and are generous with preferences if we are good humans. Understand why you have been selected to serve them. Not because they don’t have an option, not because you do everything right but because you have one chance to win them over and they feel you deserve it. Take it for granted and under deliver- they might not take you seriously next time. It is a privilege to receive their attention for a few minutes, use them well!
Ask what we can offer to reduce their perception of buying risk.
As they give you an opportunity to serve them by offering their precious time (and even better, money), they are taking a huge risk. They are trusting you and hoping you will not disappoint. This perception of buying risk remains a chasm that we entrepreneurs need to cross. Sandwich sellers might showcase how hygienic their practices are, delivery companies might showcase how they are careful with a customer’s possessions.
At my kiddo Hammer and Mop, we focused on showcasing credibility (customer testimonials) and communicating ‘productized’ services aimed at minimizing uncertainty (by designing a Cleanup Blueprint, which explained the entire process thus answering most of the questions well in advance). This was based on the feedback we received and (wait for it) the feedback we read between the lines. Apart from faster horses, our customers need a motor vehicle too and that’s where our ingenuity lies. Am I not right, entrepreneur geniuses? 🙂
Who is the customer?
In one of the popular Harvard Business Review articles, I happened to come across a concept which defined certain stakeholders as ‘customers’ we need to pay equal (if not more) attention to. To put it simply, we ought to focus on our employees (non paying customers) as much as our paying customers for the long term benefit of our company. Employees are crucial for growth and profits, they are essential components of the machine we have built. Having them on your side and understanding that there is no ‘other side’ is crucial. Ensure their happiness, their motivation levels and toss that ego in the waste basket.
Shut your mouth and listen to your team. Shut your mind and let them grow. Provide direction, not orders. Offer guidance; don’t push it down their throats. Create a culture of experiential learning and create opportunities of playgrounds within playgrounds. No one likes being an ‘employee’, everyone seeks to be a part of the game. They have their strengths and can do their job WAY better than you can. Respect it, and progress will happen. Do NOT be outspoken, be likeable and ensure diplomacy. It is all about people, after all.
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Your feedback is crucial. Do write in, please 🙂 Thanks!
asha chaudhry
nice points covered sushrut.
just one thing i’d like to mention – i’m a huge believer that EMPLOYEE COMES FIRST. and love the way you’ve put it across, “No one likes being an ‘employee’, everyone seeks to be a part of the game. They have their strengths and can do their job WAY better than you can. Respect it, and progress will happen.”
BUT
i don’t agree with “Do NOT be outspoken, be likeable and ensure diplomacy.”
sushrut – you can still be likeable if you are transparent, honest, candid in the most constructive way ever. i think founders need to be nurturing and lead by example rather than being diplomatic. give a patient hearing and be open to the other side. but do present your side as well. being outspoken doesn’t necessarily mean writing off everyone else’s POV or being rude. it means calling a spade a spade. it means appreciating & applauding every achievement. it means criticizing when something goes terribly wrong, yet doing it constructively so everyone learns from their mistakes and ensures it doesn’t get repeated.
if you inspire and treat people with respect, you will be likeable. being likeable just because you’re diplomatic, to me, doesn’t resonate.
just my point of view! yes – i am outspoken and not very diplomatic at all; so i guess that’s why i reacted to this point!
🙂
keep sharing – it helps!!