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.