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All about customers
The document outlines customer lifecycle principles and emphasizes understanding customer needs to build lasting relationships. It shares a real-life example of a parts supplier's journey to becoming a full-scale manufacturer, highlighting the importance of solving customers' primary issues and providing exceptional service. The key lessons include the significance of customer engagement, identifying hidden customer segments, and focusing on long-term growth through customer experience and iterative innovation.
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All about customers
- 1. All About Customers GoaStartup Launchpad Vivek Naik viveknaik@viveknaik.net +91-897 526 7129
- 2. About Me • Over10 years experience in manufacturing industries involved in producing consumer products, construction hardware, auto parts. • Have worked in various positions from supervisor to Vice President • Currently working as consultant and coach for business owners and startups • Passionate about learning the art and science of startups http://www.linkedin.com/in/viveknaik http://goastartuplaunchpad.in
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- 5. It all startswith knowing your customer!
- 6. Let me tellyou a real life story…
- 7. It is ajourney of parts supplier who went to become a full scale manufacturer of his own products…
- 8. In the beginning Numberof Employees: One Product/Service : Driver Seats to freight companies Sales representative for a big seat manufacturing company
- 9. Selling seats totop 10 freight companies provided good insight about their operation, challenges and also got to interact with their people at all levels… KNOWING
- 10. Customers needed seats,but they wanted to save money by extending the life of their seats Discovery
- 11. This knowledge leadto first attempt at manufacturing… Rebuilt Existing Seats for a local Customer GETTING
- 12. Lessons Learned • Builda platform where you can interact with your customers – You can interact with customers without selling anything too – You can have a blog, organize events, join groups – Our goal : to open a dialogue with future customers http://goastartuplaunchpad.in
- 13. Lessons Learned • Findout what the customer want beyond their need and provide it to them – In the story customers just needed a seat but actually they wanted not to spend too much money buying new one every time – Want is always a stronger motivator then need http://goastartuplaunchpad.in
- 14. Lessons Learned • Customersdon’t always know what they want! • Don’t wait for perfect solution, provide the minimum viable product that will solve your customers biggest issue and then iterate – The perfect solution in this case would have been a robustly designed seat with long life – Rebuilding old seat was technically less challenging yet it extended the life of the seat at very small cost http://goastartuplaunchpad.in
- 15. Lessons Learned • Don’ttry to solve all the problems of all the customers – Don’t loose your focus – Focus on biggest issue of the customer of who is willing to try your solution and pay for it – for this to happen the customer must desperately want the solution, he has suffered the problem for considerable amount of time with minimal or no success and has the budget http://goastartuplaunchpad.in
- 16. Continuing the Story Sellinga product or service once is easy but to make your customers to buy on repeated basis is challenging
- 17. So they startedoffering an experience that was different than the major seat suppliers
- 18. The new companywas perceived as friendly neighbor whom you can call to solve your problems
- 19. They realized that peopledid not only buy because of the products but also because of the experience that came along with it …. KEEPING
- 20. There was nolong waiting time, not too many people to deal with, getting the seat was just a phone call away… If the customer had a problem, somebody visited them in person to find the solution
- 21. Lessons Learned • Thereare many opportunities to help your customers on their buying, usage, and maintenance processes of the products • Buying experience and support during the lifecycle of the product is a big part that many companies neglect and can be your leverage against your competitors • Human touch, goes a long way when maintaining relationship http://goastartuplaunchpad.in
- 22. Lessons Learned • Don’tsee yourself as only person who sells a product , but as partner of your customer who solves their issues • Metrics related to Quality, Delivery and cost needs to be measured and managed to provide value to the customer • Customer focused philosophies like lean helps to align internal processes, people and products to the need of the customer • Understand the funnel, feed the funnel http://goastartuplaunchpad.in
- 23. Continuing the Story Numberof Employees: 8 -10 Product/Service : Driver Seats and seat parts to freight companies Seat Rebuilder , and parts supplier
- 24. Good relations andservice helped to keep steady flow of orders …..
- 25. But you canonly sell so many rebuilt seats ….. Cost of the company increases: as salaries , material cost and other costs increase every year…..
- 26. So how dothey stay profitable in the future…..
- 27. They realized youhave to grow to survive… GROWING
- 28. One avenue forgrowth was to find new customers Finding new customers has its own cost and it takes lot of time
- 29. Other way wasto sell more products to the existing customers
- 30. • New seatswere designed for vehicles like lift trucks used by the freight companies • Rebuild kits were sold to remote locations who could not participate in rebuild program • Replacement and repair kits were developed • There was a failed attempt to design a advanced new driver seat
- 31. Surprisingly there wasa steady flow of new customers who were referred by the existing customers…. This helped the company to enter into other industries - Bottling companies - Package delivery - Passenger bus
- 32. Lessons Learned • Findother applications where your customers can use your product or service • It is easier and faster to grow by selling more to your existing customers than finding new ones ( Though you have to find new customers) • Next place to grow is finding industry similar to your current customers http://goastartuplaunchpad.in
- 33. Lessons Learned • Helpingyour customers grow can help you grow • Do not grow faster than what your process and people can handle • Find ways to fully penetrate the existing customer segments • Tip the funnel, make your customers your brand ambassadors http://goastartuplaunchpad.in
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- 35. Back to theBeginning • After growing your customers we need to revisit the first part of the cycle : knowing • This time we want to know what different type of customers are hidden within our existing customers which are not fully satisfied • The iterate the whole process http://goastartuplaunchpad.in
- 36. Another Story of Telephonecompany, grows from just providing phone service to internet provider After knowing what different customers it served they realize there are certain customers who want a more reliable and high speed internet connection So they launch a product with high price tag which provides high speed internet connection with dedicated line
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