Before we start – no Sir Richard Branson doesn’t have an extra eye.
Like many other ‘pin-upreneurs’ admired around the world, Richard Branson understands the simple law established by Harvard quite some years ago.
That, by focusing on keeping your people happy, your customers will in turn be happy and you’ll enjoy exceptional business results.
People are an essential part of every business’ success.
But there is much more to it than a flow chart and a mantra on the wall. Successful leaders, like Branson, also understand the commercial outcomes that follow when you add 20/20/20 vision.
What Is 20/20/20 Vision?
Having a fresh perspective on your business comes from changing your view and challenging the norms. Put simply, if you could get (for little cost):
- 20% More customers
- 20% Better margins
- 20% Greater spend per customer
Ponder for a moment.
What would that mean for your business?
How Can You See In 20/20/20?
It starts with acute focus on your customer – not just on segmenting them, marketing to them and serving them – but truly understanding them and placing them at the heart of your business.
20% More customers
Many business instantly focus on acquisition, sales, boosting marketing and push advertising to get new customers. But, this usually leads to churn and pretty average results. Imagine a leaky bucket, with a tap pouring in and a hole in the bottom where it is running out. Who is flowing in and who is flowing out? And at what rate? Do you know?
Getting 20% more is better served by stopping the leak, building relationships, long-term advocacy and repeat patronage.
The key question – What is the level of advocacy and loyalty in your customer base?
20% Better margins
In the current business era, technology and finance hold the power in many businesses. In the search for efficiency, a lot of businesses focus on cutting costs, reducing headcount, marketing budgets and even product quality. While somewhat valid, they are also short-term strategies.
Delivering better margins is truly about efficiency + effectiveness – getting the most from your marketing spend, and most importantly, making operational changes and improvements to mirror what customers actually need. Being able to understand what is important along the customer journey helps to align what you do to what they (actually) need.
So, the question for better margins in your business – Do we truly understand the customer journey (end-to-end) and make it as easy for them?
20% Greater spend per customer
Jack the prices up 20%. Job done. Easy right? Wrong! Some might even think to unbundle an existing product to increase ‘choice’ (that’s a WHOLE other issue!) and sneak in an extra layer to two.
Obtaining an increased spend per customer is about changing your view on your customer relationship. If you see them as a ‘one-off’ or ‘one-and-done’, they will see you as that too and give their patronage appropriately. Make it special for them – an experience not just a transaction – and they will trust you more and spend more with you. Not only that, they help to drive greater advocacy, contributing to your 20% More Customers.
The question to ask here: Are we in it for the long-haul or just a one-night stand?
Would You Change Your View For 173% Performance?
In case you didn’t go for your calculator above, getting 20/20/20 vision could deliver 173% of what you have today. More than just ‘great in theory’, you can make this a reality by changing your view – to the customer view.
If the customer is truly the ultimate reason for your business’ existence, isn’t it time business leaders started to pay it proper attention?
We can think of 173 good reasons why you should!