I used to work at a marketing company where everything seemed great—the company, the owner, and the values we were supposed to uphold. We were told to prioritize our clients, considering them as partners, with their success translating to our success. However, during my two years there, I never witnessed any senior leaders truly embodying this philosophy. Despite the rhetoric, actions didn’t align with the words, leaving me questioning the sincerity of our client-first approach.
We know that for our businesses to do well, we need to focus on how our products or services help our customers. But sometimes, as we start getting successful and making money, we forget about our customers. It’s tempting to only think about making more money. Growing our business is important, but we shouldn’t forget about what our customers need and want.
In this blog, I’ll discuss the importance of understanding your customers and their needs. Plus, at the end of the blog, I will share a very important business tip that could be valuable for your business.
You can either jump directly to the tip or you can read the full blog post to truly understand the reasons behind it.
Low-Value Product, Customers, Insecurities, and Sales
In the business world, the quickest path to success often involves creating low-value products. Why? Because they are inexpensive to produce and effortless to sell. Exploit customer insecurities to drive sales for these low-value products you’ve developed.
Image © Red Granite Pictures
You might be familiar with the classic scene in movies and TV shows where the interviewer or businessman asks the interviewee, ‘Sell this pen to me.’ While these portrayals can make selling a pen seem charming, the reality is often quite different—more like trickery. I sometimes find myself disliking what certain salespeople do. Some are truly skilled at their craft, convincing people to buy pens they don’t even need. It can reach an extreme, with salespeople selling pens to individuals who not only lack a need for them but also lack the hands to hold the pen. Here, I have used a pen as a metaphor for a product or service.
I believe engaging in such practices is not just unethical but also verges on being criminal. It’s like creating a false demand or fostering a sense of insecurity to push your product or service onto people. Sadly, many business models and products seem to thrive by exploiting the insecurities and vulnerabilities of innocent individuals. No one seems willing to be honest with their customers, admitting that they might not actually need the product, the product quality is not that good, or that they’re paying excessively high prices.
Image © Metro Goldwyn Mayer
Let me share an example to illustrate what I’m saying. We’re all familiar with fashion and luxury brands. Essentially, they’re not selling anything inherently premium; rather, they often acquire exclusive rights to a particular material. This material, on its own, may not be exceptionally costly. However, when they put it into an end product, slap on a fancy logo, and place it in an upscale store, suddenly it looks expensive. They then sell the product with a shocking 700-900% markup. The ability to charge such a premium price comes from the brand name and the insecurities of their target customers.
People’s insecurity often stems from the desire to fit into the social circles of the rich and wealthy, projecting an image of greater wealth than they actually possess. Luxury brands capitalize on this insecurity successfully. This business model is so effective that many companies overlook ethics and other considerations when chasing the bottom line.
The Best Business Tip for Young Entrepreneurs
Prioritize Customer Satisfaction: Deliver Beyond Their Expectations
As a young entrepreneur, I constantly ponder the importance of putting customers first, and I believe you should do the same—even before launching your business. Wondering why? Well, let me break it down for you.
Let’s delve into an example to grasp this concept better. Imagine you walk into a shoe shop with specific criteria: a good-looking shoe with a quality build, all within a certain budget. There are two shops, A and B. At shop A, you find nothing to your liking, so you move on to shop B. There, you express your needs to the salesperson, and they assure you they have the perfect shoe. You happily purchase it, only to find it breaks after a few days of use. When you return to shop B with your complaint, you’re told there’s no warranty, leaving you stuck with a faulty product.
In this scenario, the salesperson in shop B misled you to make a sale, offering a product that didn’t meet your requirements. Unfortunately, this deceptive practice is happening worldwide, where products are sold to people without delivering the promised benefits or fulfilling their intended purpose.
Let me share a real-life example from my experience as a project manager in a previous workplace. I was in charge of the agency’s website projects, collaborating with the development team to meet client requirements. The website creation service was honest — clients got what they wanted at the agreed-upon price.
However, the agency fell short in areas like SEO, Marketing, and Social Media. Despite positioning itself as an expert, the reality was different. The agency often relied on hit-and-run or trial-and-error tactics. While some initiatives succeeded by sheer luck, about 90% of them failed. Even in the face of repeated failures and charging prices that didn’t match the outcomes, the agency persisted in unethical practices. Their intense focus on the bottom line led them to present themselves as experts in SEO and Digital Marketing, providing services to clients with poor or no outcomes.
Why Some Companies Succeed Despite Unethical Practices: Understanding the Reasons Behind Their Profitability
Back in college, I noticed a busy food stall where many people were eating. Despite usually avoiding outside food, I was so hungry that day that I decided to give it a try. However, after the first bite, I regretted spending money on tasteless and possibly unhealthy food. That experience made me realize something important—while I wouldn’t eat there again and wouldn’t recommend it to my friends, my opinion didn’t really impact the stall’s success.
I forgot that not everyone shares my preferences. The regular customers at the stall were genuinely hungry, lacked tasty homemade options, and had gotten used to the food’s taste. The prices weren’t too high, and the crowd at the stall created a perception of popularity and demand. Essentially, the stall was catering to people who were really hungry, couldn’t afford fancier options, and didn’t have the luxury of enjoying tasty and healthy homemade food, which is often healthier and tastier than outside alternatives.
The agency where I used to work excelled in creating websites, apps, and blogs tailored to client requirements. However, they faced challenges in marketing and SEO. Despite these limitations, the agency attracted clients like me—hungry for food and not knowing much about the stall’s reputation. Unfortunately, the agency couldn’t consistently deliver the expected results in terms of leads for marketing or increased website traffic for SEO to all its clients. When clients didn’t see the anticipated outcomes, they canceled contracts. Surprisingly, this didn’t impact the agency much, as there were always new clients coming in, just like the ones before.
I believe hard work, the luck of the business owner and the naivety of customers/clients play significant roles in the success of such companies. While you might not subscribe to this belief, I think luck has a crucial influence on both the success and failure of things.
Run a Successful Business
Understanding your product or service and its benefits to customers is crucial. If you’re not genuinely convinced of its goodness or value, it’s worth rethinking. Choose offerings that genuinely add value to your customers. While focusing solely on the bottom line might bring short-term gains, it won’t build a lasting reputation or brand. If luck takes a turn, there might be no saving your business from doom.
So, always prioritize your customers and focus on the benefits your product or service brings them. Make this your top priority and go the extra mile by delivering more than you committed. For instance, if you offer quality products, back them up with a warranty. Deliver the product or service beyond your client’s expectations. By adopting this approach, you can create a business that your clients will remember, talk about, and recommend. If everything falls into place, you’ll witness the success and reputation you’ve always dreamed of.
Bonus Tips from Business Legends
Closing thoughts
So, if you religiously follow the tip or tips mentioned in the blog and create a product or service that truly helps your customers’ demands or needs—not only that but goes one step further and provides more than what they expected—then, believe me, the sky’s the limit for your business. All I can say is, work hard and best of luck for your business.
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