Winning customers amid tough competition
Winning customers amid tough competition
Agus Wismoyo, Consultant, Accenture
A company specializing in manufacturing consumer goods struck
trouble when its sales rapidly declined. The company made every
effort to reverse the situation and boost sales, but to no avail.
Last year, instead of increasing its revenue, total sales
decreased by 10 percent; this quarter they were down by a further
2.5 percent. So what happened? The company's top managers soon
realized the gravity of the situation and decided to investigate.
The results indicated that the problem was that the company
couldn't meet deadlines. Delays in delivering consumer goods to
hypermarkets and other distribution channels caused the company
to loose potential customers.
Nowadays, Chief Executive Officers, managers and executive
directors all over the world devote hours of their time to
sourcing information to assist them in "winning the competition",
or winning the hearts of their customers.
During the last decade, companies' orientations have changed
from selling products to selling satisfaction. The company's
chance of being able to satisfy their customers ultimately lies
in the quality of the products they deliver. Deliverables are the
right product, provided at the right time, at the right price.
These three essential elements may significantly alter a
company's life cycle.
A company who can't deliver their services at the right time
will be abandoned by their customers. Losing time is both
inefficient and a waste of money.
Early delivery can also cause major problems. An early
delivery may mean goods arrive but there is no room to store
them; or that the newly arrived goods crowd space that should be
left free for other deliveries. This may produce extra inventory.
costs. Also, most company's like to avoid keeping their goods in
the warehouse for a prolonged period.
Products from China, Cambodia and Vietnam are known for their
low prices. In certain categories, these products win the
competition as they are so cheap. However Japanese or European
products are more widely trusted for their quality and
durability. Thus, price is relative. So, how do we measure what
something is worth? The answer is to compare its level of quality
with other products. If a company can manufacture a product of
equal quality with its competitor's product but sell it at a
lower cost, we can say this product is cheaper.
And customers will always be ruthless in seeking cheap
products or services. Developing relationships with customers
themselves is no less important, a concept that has spread all
over the world. "Customer Relationship Management" has become the
catch-cry for top level managers.
A company should constantly identify and introduce new and
innovative means of communicating with their customers. This will
maximize sales by turning customers into loyal buyers.