This just caught my attention and was so blatantly against where we are today I just had to write about it. The article was in Fox Business-Small Business section, “Never Turn Down a Paying Customer.” Just because it comes from a major name in news reporting doesn’t make it the right thing to do…just someone’s perspective. But beyond the title, the real comment that got me was…
“The latest feel-good advice making the rounds is that you should be highly selective about the business you are willing to do and the clients you want to engage with. After all, if you’ve got to focus – and we can all agree that you do – why not focus on the kind of work you want to do and the kind of people you want to work with? Seems to make sense, doesn’t it? It does … if you don’t mind living hand-to-mouth for the rest of your life.”
How do you, as a customer/client feel about this? Let’s take a look at this from both a customer and company perspective.
As a customer…do you want to be treated as if the company doesn’t care about you specifically? Your needs, wants, desires, and even more importantly, the experience they would offer to you? Is being treated the same as anyone else who has cash in their wallet feel “personalized” to you? And what about the marketing messaging…how likely are you to grab onto a marketing message if they aren’t specifically talking to you? In a world of more and more speed, noise, and choices, are you going to do all the work to find this company rather than be specifically dialed into what they can do to help you?
As a company…do you feel it is a waste of time to identify the “ideal customer/client” and then find ways to serve them better than anyone else? What have been your results from “shotgun marketing” over the past 5 years…blasting out one general message and seeing who it attracts? How has the return been going on your direct mail pieces that are sent out to everyone in a geographic area (that might even be a bit of targeting)? When customers buy from you, because they have cash, do you treat them all the same? If you only had $100 to spend, do you feel it is better to spend it on the segment of your customers that are perfect fits for your product/service or simply buy the most reaches you can into the general market?
I don’t disagree that if someone shows up with cash you don’t consider selling them your product or service. But there are many more ramifications even if this was a good model. So let’s say you have thousands of customers, scattered in different segments, locations, and other criteria. How will you service these or support their individual needs. You would need an incredible investment in your support departments just to handle all the “one off” issues and requests. Just getting cash from anyone that has it is a commodity. You throw it out there, price it cheaper than anyone else and open the cash drawer and watch it flow in. That works for commodity products.
I wonder if some of the most successful companies in the world ignore a strategy that identifies the specific needs/wants/desires of their ideal audience. Do you think IBM (I am an ex-IBMer as well), Starbucks, Nordstrom, Zappos, Southwest Air, Alaska Air, Amazon, just to name a few, don’t have an “ideal customer segment(s)” where they build their marketing, support, and experience around? Do you think they use a “one-size fits all” approach to creating their customer experience and product selection?
And one final note…I could go on much longer…is about Word-of-Mouth. How many “one-size fits all” companies do you know that people talk about today…in person or on social channels? As long as you have the lowest price commodity product, someone might share this information…until someone beats you on price or other terms. Short of that, no one will talk about you. Customers talk about how special they were treated…and they were treated this way because they are one of the ideal segments the company is oriented around. They talk about the awesome experience they had because the company is geared up to deliver this experience to this segment of customers…not everyone. Sorry if I burst your bubble, but these successful companies might not be right for you and that’s OK, there is another company out there that is designed for what you want…they are customized and personalized around you…the customer. And that’s what you want and expect today. I don’t think they are living “hand to mouth” today!
So if you have cash burning a hole in your wallet…think about where you are going to spend it. I somehow think it will be with a company that “speaks to you” and delivers an “awesome experience” to you and “supports you” rather than “we take cash from anyone.” Would love to hear your thoughts…
