The term ‘customer’ (or ‘consumer’) is so commonly used nowadays that very few people still understand what it should really mean.
Like it or not, the customer is, and will always be, the MOST IMPORTANT part of any business. It doesn’t matter if you have rented an impressively furnished glass office, hired MBA employees and manufactured a beautiful product. If there are no customers buying the product or service you are selling, you have no business.
Now you know why they say ‘The Customer is the King.’
If the customer is the most important element of every business, what do you think should be the very first step every entrepreneur must take before they even open for business?
You are right. You must first identify your customer!
Who is the customer for that product or service business you plan to start? What does she want? How, where and when does she want it? What does she not like about the current product or service she’s using? Where does she live and work? How much can she afford for this product you are about to start selling? Will she be more sensitive to the price or the quality of your product?
The more accurate your answers are to these questions, the more successful and lucrative your business will become.
Understanding the customer means that you should ALWAYS look at your business from the perspective of the customers you are targeting. It doesn’t matter what your personal likes, tastes and preferences are, if customers don’t want or like what you are selling, they won’t buy it. And if they don’t buy it, your business WILL die!
A good example will be very useful here.
Hassan is an aspiring entrepreneur who wants to start an ice cream business. Fortunately for him, he has just found out (through this article) that he must identify and understand his target customers if he wants his business to be successful.
He thinks to himself: ‘Who is my customer?’
He does some basic market research and finds out the following:
*Who is Hassan’s customer?*
His customers are school children in his town who attend Nursery and Primary school, five days every week (Mondays to Fridays).
They close for the day in the hot afternoon and are always looking for something cold, tasty and refreshing to compensate for the thirst and heat.
Their current options are cold water and CocaCola.
While cold water is cheap and refreshing, the children want something tasty that they can relish.
On the other hand, CocaCola is tasty but is more expensive and just a few children can afford it.
Chocolate, vanilla and strawberry flavours are the childrens’ top three ice cream choices and they usually prefer them in small bowls so that they don’t melt away.
These children are also excited to buy ice cream from a friendly seller, and are very likely to remain loyal customers.
Bingo! Hassan has hit something!
By identifying his customer, Hassan has set himself up for success because he now knows exactly what to do in order to satisfy them.
Well satisfied customers always make a successful business.
The next day, just as the school gates open, Hassan is right there in front of the kids waving to them from his ice cream truck with a wide smile on his face.
You don’t need to be a prophet to predict that Hassan’s business will flourish and succeed as long as he continues to give his customers what they want, how they want it, where they want it and when they want it.
Lesson: Entrepreneurs, know thy customer!
Your customers are your bosses you must turn their likes into your likes so that you can really understand their preferences.
*Written By*: Justine Nyachieo
Business Man & Mentor
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