3.2 The Elements of the Customer’s Influence on a Business
In this section we will discuss in detail the motors that the customer starts in the life of a business. We will see how the client’s behaviors and perceptions change a business inside and outside, too. The insides of a business are represented by the management and the employees. The outsides of a business expand to the brand, marketing plan and financial decisions.
Impact on a Company’s Business Strategy
In the present vocabulary of business, the strategy of a company translates into strategic management. Strategic management is the accumulation of major goals and chosen initiatives based on resources and the internal and external conditions in which the company competes against other companies – the market. The goals and initiatives are formulated by top management according to the decisions of the owner of the company. Basically, the strategy of a business can be defined as the tactics used for becoming powerful in the market.
However, no matter how well-developed the financial plan is, if it isn’t focused on customer reaction, it will not be successful. An efficient strategy focuses on why it pleases the clients; in this way it can boost its strengths and reduce the weak points. Additionally, a good strategy is planned around the services that the company is really good at delivering. Hence it is crucial to know your specialization quite well and to innovate on it. Companies that excel at customer service are also companies that are experts in their field. When building up a strategy, a company has to look at the bigger picture. Companies have to be aware that when deciding on a strategy, they rule out other strategies. Of course, a strategy cannot contain all possible factors; however, it should refer to them. Is your company’s strategy ruling something out? Is it covering everything the best it can?
Business specialists advise companies to also pay attention to the things they usually refuse or omit. What exactly do they refuse? Can it be turned into an opportunity?
How does a company’s strategy depend on its customers?
Clients give clear feedback on all what you do. Whatever your company sends to them, it comes back, sometimes with more power. That refers to positive as well as negative experience. At the other end of each business strategy are the customers. They are the receivers, the judges, and the promoters of your business. These are the three main roles that customers play in business.
The strategy of a business is implemented through the company’s services for the buyers. The strategy has effects on the customers, which circles back to the company. For example, a good strategy in present times is to have a website that client can access to learn about the company and its services. This strategy has the following benefits for the client: instant access to services, unlimited communication with the company, detailed information and price-awareness.
Let’s say the customer accesses a service and is satisfied by it. He positively judges the company for its fast and efficient service. Afterwards, the customer plays the role of the promoter by offering a good review or talks about the company to other people who might in turn become clients. If you receive positive reactions from your clients, your strategy is efficient. In addition, the strategy of the company will prove efficient because sales will go up. However, the positive reaction to the strategy of the company has to exist for long periods of time, in a sort of stable line. Fluctuations in customers’ reactions mean fluctuations in sales, and fluctuations in sales mean an unstable position in the market.