Distrust is a friction to the relationship that must be overcome before the customer considers entering into a value exchange. Allaying the perceived risk and creating a beneficial relationship requires leadership to put the customer first and relay the supplier’s essential needs to customers.
A customer segment of leeches is often found inside a company’s customer base. These creatures consume more resources than they pay for. To avoid these relationships and avoid later confrontations such as the “firing” of a customer, a supplier can take steps to position their own priorities that must be met in order to have successful relationships as a matter of policy. Gaining acceptance from the customer to respect the supplier’s priorities may prove difficult if the supplier is in a position of weakness. Conversely, the supplier should seek to be in a leadership position along a given dimension with customers. A leading vision from the supplier may take the form of technology, thought, cost or intimacy leadership.
The essence of personal or firm-wide leadership is built on the unique resources and capabilities of the firm. At some companies, decades of innovative product development is the basis for a technology leadership position. At other firms, a strategy of operational excellence to provide the lowest cost offering provides the basis of leadership. And for new start-ups, often focus is the path forward. A solution that is tailored for a specific niche can give a leg-up to a new firm.
It is essential to market a unique position in the marketplace. This is the essence of brand equity and it lays the groundwork for creating customer relationships.
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