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Entrepreneurs who share their business advice have each had their own unique journey to building a successful business. They’re all different. Some come from backgrounds of wealth and influential connections. Others have built empires from scratch. So, what makes sense for one business leader may not work at all for someone else. Don’t take the business advice as gospel to be followed word-for-word. Rather, use it as a tool to inform big decisions and major strategic business moves. That said, listening to those who clawed their way from the very bottom to build massively successful businesses just makes sense.
For the last three weeks, we’ve looked at pieces of advice billionaires have shared. Here are a few more sage words of wisdom. Use what makes sense.
8. “Be obsessed with your customers. Understand their needs better than they understand them themselves.” — Bill Gates
In a world where competition is fiercer than ever, businesses must go beyond simply selling products or services. As self-made billionaire Michael Bloomberg put it, “You need to be passionate, enthusiastic, and genuinely interested in helping your customers.” The most successful companies become obsessed with their customers. This obsession, known as customer-centricity, is the key to long-term success.
What Does Customer-Centricity Mean?
Customer-centricity is more than just smiling, being polite and delivering a functional product. It’s even more than just delivering excellent customer service. It’s about putting the customer at the heart of everything a business does. What does that entail?
a. Listen to customers.
That means truly paying attention to what customers are saying, both explicitly and implicitly. It involves gathering feedback through surveys, social media, and one-on-one interactions. It means approaching customers in a variety of ways to ask “how did we do?” Or “how can we do better?” To soar, a business needs to go beyond just hearing what customers say and truly understand their underlying needs and desires. As SpaceX founder and self-made billionaire Elon Musk put it, “Selling is not pushing. It’s not persuading. It’s listening.”
b. Be genuinely interested in solving customers’ problems.
Customer-centric businesses are not just interested in selling products or services. They are invested in solving customers’ problems. This requires a deep understanding of customers’ pain points and a commitment to developing solutions that truly address their needs. As media mogul and self-made billionaire Oprah Winfrey once said, “In sales, this means understanding your customer and having the courage to present your solution.”
For example, if long lines are a pain point for shoppers, stores need to offer more and better ways for customers to make their purchases. If attending a closing is a pain point for a homebuyer, the title company needs to provide mobile Closers. And if clients have trouble attending a conference during a particularly busy month, the organization should also stream the live sessions so registrants can still get most of the information shared, even if they miss out on the networking.
c. Know and understand customers on a granular level.
Customer-centric businesses collect and manage information about their customers on a granular level. This includes demographic data, purchase history, preferences, and behaviors. This data should not just be warehoused but also be infused into and reflected in product development, service offerings, sales efforts, and marketing campaigns. By understanding their customers on an individual basis, businesses can deliver highly-bespoke offerings and information that meet specific needs and preferences. It rejects the one-size-fits-all approach and embraces a “have it your way” mentality.
Instead of focusing on sales, businesses should focus on customers. Being good is not good enough. Companies need to prioritize understanding and fulfilling the needs of customers. That means not just solving their problems, but also making them feel special and important. To do that, knowing customers individually as well as collectively is key. And, in today’s competitive landscape, being customer-centric is not just a nice-to-have, it’s a necessity. It is the one way that businesses can differentiate themselves from and surpass the competition. Customer-centricity leads to greater customer satisfaction. When businesses truly understand their customers’ needs and provide solutions that address those needs, customers are more likely to be satisfied and loyal. This can lead to increased repeat business, referrals, and positive word-of-mouth.
Customer-centricity also drives innovation. By listening to customers and understanding their needs, businesses can identify new opportunities for product development and service improvement. This can help businesses stay ahead of the competition and remain relevant in a rapidly changing market.
And, customer-centricity strengthens brand loyalty. When customers feel valued and understood, they are more likely to develop a strong emotional connection with a brand. This loyalty can make it difficult for competitors to win over customers.
By listening to customers’ needs, being genuinely interested in solving their problems, and knowing and understanding them on a granular level, businesses can build strong relationships, drive innovation, and create a competitive advantage. And that takes us to the next piece of sage advice from billionaires.
9. “The most meaningful way to differentiate your company from your competitors — and the best way to put distance between you and the crowd — is to do an outstanding job with information. How you gather, manage and use information will determine whether you win or lose.” — Bill Gates
Having started his business from scratch with little or no resources, Gates knows the power of information. His advice is for companies to gather as much information as possible not only about the industry and competitors but also about the company itself and its customers. But gathering information is not enough. That information must then be used to improve operations, drive sales and turn customers into raving fans. What does that look like in reality?
a. Collect Data
The first step to leveraging information is to gather as much data as possible. This includes data about the industry, competitors, the business itself, and most importantly, customers. By understanding the broader market trends and the actions of competitors, businesses can identify opportunities and potential threats.
b. Gather data about the business
Internal data is equally valuable. Businesses can collect data on their operations, performance, and customer interactions. This information can be used to identify areas for improvement, optimize processes, and measure the effectiveness of marketing campaigns. As Peter Sondergaard once said, “Information is the oil of the 21st century, and analytics is the combustion engine”.
c. Amass customer data
The most valuable data for businesses is often the data they collect about their customers. This includes demographic information, purchase history, preferences, and behaviors. By understanding customers on a granular level, businesses can tailor their offerings and communications to meet specific needs and preferences. As Carly Fiorina, former executive of Hewlett-Packard Co. said, “The goal is to turn data into information, and information into insight.”
Leveraging Data for Success
Once data is collected, it must be stored and analyzed effectively. Rutherford D. Rogers put it aptly, “We are drowning in information and starving for knowledge.” Thus, to convert data into information and information into insights requires the use of appropriate tools and technologies, such as data warehouses, data mining software, and business intelligence platforms. There are countless ways businesses can leverage data to gain a competitive advantage. For example:
- Personalized Marketing: By analyzing customer data, businesses can create highly targeted marketing campaigns that are more likely to resonate with individual customers.
- Product Development: Customer feedback and market trends can be used to inform product development decisions and ensure that products meet customer needs.
- Customer Service: Data can be used to identify and address customer pain points, improve customer service experiences, and increase customer satisfaction.
- Operational Efficiency: By analyzing data on operations, businesses can identify inefficiencies and optimize processes to reduce costs and improve productivity.
Many successful businesses have leveraged data to achieve remarkable results. For example, Amazon has used data to revolutionize the retail industry by providing personalized recommendations and efficient delivery. Netflix has used data to understand customer preferences and create original content that has captivated millions of viewers.
Turning Customers into Raving Fans
Data can also be used to turn customers into raving fans. By understanding customer preferences and providing exceptional service, businesses can build strong relationships and loyalty. This can lead to increased repeat business, referrals, and positive word-of-mouth. As Tony Hsieh said, “Customer service should not be a department. It should be the entire company.”
Billionaires Get It
There are over 2,700 billionaires in the world today – over 700 in the U.S. alone. These men and women have a lot they can teach. But they aren’t all the same. There are marked differences between many of them. Some like keeping things simple, while others enjoy complex systems. Some are extravagant, while others are notoriously frugal. Some are highly focused in one type of work while others dabble in a variety of industries.
But they do all share certain things in common. No matter what field they’re in, most exhibit an insatiable appetite for knowledge and information, especially about their customers. They are all customer-driven and data-savvy. They know that in a complex world, customers and information are what drive success. They get it. And, for a businessperson or investor, there’s arguably no better group of people whose advice to hear and emulate.
Stay tuned ‘til next week when we will wrap up the top pieces of advice shared by billionaires for potential future ones. Don’t miss it.
Quote of the Week
“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”
Sam Walton
© 2024, Keren Peters-Atkinson. All rights reserved.
The post To Succeed, Do as the Billionaires Do, Part 4 first appeared on Monday Mornings with Madison.