Developing a competitive advantage based solely on product quality and/or innovation is very difficult. And sustaining it is very expensive. You will also find that there is more price parity today than ever before. Very few companies can compete for long using price as a differentiating factor. By shifting your emphasis to service quality(a.k.a. Customer Focus), you will find the greatest room for differentiation.
For most companies, customer loyalty is the key to future profitability and growth. Corporate newsletters, national periodicals, and most executive speeches are peppered with a litany of examples demonstrating the relationship between customer loyalty and profitability. In almost every market we've learned that retained customers: - Are less expensive to serve because they know their role in the process. - Tend to lower marketing costs. - Often purchase more over time. - Are open to purchasing new and different products as they are offered.
Clearly, customers value service and whether they get good service or not, they expect it. If they don't receive service at a level that meets their expectations, they will go elsewhere until they find it. Whether the economy is on the down swing or the upswing, no one can afford to lose customers.
Many companies still deliver lousy, inept, shoddy service and even more deliver only average service.
Simply stated:
Companies who differentiate themselves through their service have a competitive advantage.
There is a tremendous opportunity here for any company who wants to grow and prosper. Create customer focus in your company and differentiate yourself from your competition. You will be amazed at your return on investment.
Ray Miller is President of Cantrain Development Corporation, a Training and Consulting firm specializing in Customer Focus, Service Improvement, Leadership and fully customized training solutions. He is co-author of the book That's Customer Focus.
You can get more information about That's Customer Focus by visiting our websites.
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