The Most Important Element in Any Business (It’s Not About Making Profit)
Stop for a moment and ask yourself this question…
“What is the purpose of my business?”
Most individuals would say, “To make a profit.” Personally, I feel that is the wrong answer. It’s part of the answer, but not the answer. Profits are a result or an outcome of what we do and they only tell us if our business strategy and execution are viable.
Peter Drucker stated that…
“Concentrating on the belief that creating profits as a purpose is not only wrong, but could very well be harmful.“
He felt that it causes a business to make bad decisions and lose sight of those things that delight customers. He also added, “There is only one valid definition of business purpose: To create a customer.”
The ultimate objective of a business is to satisfy customer needs and wants at a sustainable profit. The sustainable profit part is critical.
Customers are the ultimate assets for any profit-making company.
They really provide all of a company’s real value. Unfortunately, customers are one of the few aspects of a business that are not managed as an investment. We must always keep in mind that we must profitably provide a better solution for our customers than our competition.
There is an old saying, “A good salesman can sell anything once.”
The trick is getting them to buy again and again. The reason I say this is because marketing gets translated most of the time into simply persuading someone to try something for the first time. Companies are constantly trying to change someone’s attitude or behavior.
Today’s customers buy competing products from multiple companies with seemingly no real loyalty. Therefore, the most important element in profits is designing ways to have your customers allocate a larger share of their wallets to you.
In my Marketing Tips of the Week, and also this blog, I try to help you accomplish that.
In essence, the primary goal of marketing must be the creation of loyal, long-term customers out of first-time or occasional buyers.
Accomplishing this requires a clear and precise understanding of what makes customers want to be loyal. Gathering and understanding customer needs is the job of marketing. Review my Marketing Tips of the Week that help you to accomplish this.
If you have any additional ideas to build loyalty, please comment.
Well, that’s it for this issue. Next time I’ll write about another solution to problems you might be having and how to reverse them…
If you need step-by-step instructions on how to implement this and other ideas I give on creating customers, just visit Build Your Business Fast Academy and sign up for my one-on-one coaching program.
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