Entrepreneur: Know Your Customer Better to be Successful

If you don’t know your customer, then you don’t have your priorities set for your business. In other words, you don’t know your business. Knowing your customer better must be ranked to the top of your priority list if you want to be successful in your business.

know_your_customerIt is not just you. Many business owners, including online businesses, tend to believe that they know their customers. They don’t do any analytical work to actually make the conclusion. They just guess. To be successful in business, you must avoid making decisions with you gut instincts. Yes gut instincts may work but if you couple that with pragmatic analysis of your customers, then you will make the best decision.

Why should you know your customer better?

Respond to their needs

How could you respond to your customer’s need if you don’t know what they want? If you don’t respond to their need then they are going to move on to someone else that can provide them with what they are looking for. Especially for an online business, this is very important because a typical customer will have multiple options with a click of a mouse. Therefore, it is very easy for them to move on from you to someone else.

Respond to your sales pattern

You may have products or affiliate programs that aren’t selling as much as they should. If you don’t do your homework to find out who is buying and what sort of products or services they are buying from you, how could you really decide on adding new products and services? There may be one product that is making you good income for you but if you don’t know who is buying that product, you can’t really make an effort to target the same group of audience to further enhance the sales.

Stop Chasing for New Ones

Many people spend time chasing new customers because they don’t know how to retain the ones they get everyday. This is a huge problem. Why would you spend money and time chasing new customers when you can simply make small changes within your existing website or business to grow your dedicated customer base? It is very simple to make adjustments to the customer’s needs and retain a visitor when they come to your site than to chase for new ones.

So the above points provide a quick summary of why you should get to know your customers but how do you get to know your customers? Well there are many ways to get to know your customers. You can do this by asking your customers to complete a survey, an interview or a feedback form. You can also use traffic analytical tools or hire an outside market research firm to do the work for you. There are many options available for you, especially if you are an online business. Online businesses can take advantage of existing automated tools to track the visitors and their activities.

Once you get to know your customers, you can make necessary adjustments by testing few different scenarios to retain your customers. You may have read my post, testing is crucial to maximize the profits, which explained why you may be missing out on opportunities to make more money with existing customers. Test it again and again to make sure you are hitting the right target and that you are making the most of your business.

The goal here is to understand your customer better so you can fulfill their needs and make them loyal to your business. This way you can avoid chasing for new customers all the time to make your business profitable. Your loyal customers will refer many other loyal customers to you. Therefore, by satisfying your customers, your business will grow on its own.

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{ 2 comments… read them below or add one }

A. Lymon August 24, 2009 at 7:28 pm

Very informative and helpful article !

Dale Callahan January 1, 2010 at 10:17 am

It still amazes me how many businesses – even larger ones – miss this. The market tends to be self correcting – even if you release a the wrong product or service – if you listen to the customer and respond you can change it to make it a hit. Not too long ago I had my customers BEGGING me for a product – and I just kept saying we were not going to offer it – outside of our scope. Finally I wised up and listened. That new requested product has been our biggest seller ever since.
.-= Dale Callahan´s last blog ..What kind of business should I start? =-.

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