This is part 4 of 4 blogs which will cover the different customer value propositions that a company can use to compete in the market place.
Warren Buffet, when looking at companies to invest in, requires a ‘competitive moat’ around that business. That moat makes it hard for competition to take shots at the castle. In the world of strategy, that moat could be considered a blue ocean strategy where your company is in the middle of the ocean and no company can touch you. Some people may consider this to be “the promise land” or the “Meca” of business. In many cases, this moat is developed by offering great customer relations. Of the 4 ways to compete, strong customer relations is the hardest to defeat.
If you make a mistake, your relationship with your customer can be your saving grace. Many people appreciate good customer service and are willing to pay a premium to receive that service. In following this type of competition, you are able to set up your brand to be a main point of contact when your consumer has a question. It is a relationship that constantly needs to be nourished and improved up. One major false step or a sense of betrayal, consumers may take a ‘break’ from the company.
Apple is a company that has the reputation of having strong customer relations. Even though the latest iPhones, in the minds of some experts, are just catching up to Samsung, there are people that line that up for days to get the new iPhone. Apple is able to make people understand that they make technology easy to use for the average person. That is their connection to their consumer.
When you think about excellent customer service on a consistent basis, who do you think about? Is there a company you always find yourself buying from?
Have a productive week.
Kevin MacDonald is a Business Consultant at L6S Business Consulting Inc (www.L6SBC.ca). L6S offers services in management consulting, Controller and CFO contracting, and lean management with either project work or teaching/mentoring of staff. Kevin has his CMA accounting designation along with a Black Belt in Lean Six Sigma.
Kevin is active in the community by volunteering for the South Edmonton Business Association, the Fringe Festival, Goodwill Industries of Alberta and donates blood at the Canadian Blood Services.