By M. Isi Eromosele

It is imperative that companies move from a product-making focus to a customer-owning focus. Company employees need to constantly think customer.

Customer must be viewed by companies as financial assets that need to be effectively managed and maximized like any other asset. High value customers can be considered appreciating assets. They are the company’s most important assets, even though their real value is not reflected in the firm’s books.

Having appreciation for the value of this very important asset could lead companies to redesign their total marketing program toward capturing more customer share and customer lifetime value through their product or services, portfolio and branding strategies. The importance of customer thinking to the success of a firm must not be underestimated.

The purpose of a company is to create customers. As such, businesses have two essential functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Customers are the most important visitors to companies. They are not dependent on the companies. The companies are dependent on them.

A company’s challenge is to retain its customers longer than it retains its products. It must watch the market life-cycle and the customer life cycle more than the product life cycle.

If a company is not customer driven, its products or services would not be either. Incredibly, most companies spend most of their marketing effort trying to acquire new customers, rather than retaining and growing business from their present customers.

On average, companies spend 70 per cent of their marketing budgets trying to attract new customers, while 90 per cent of their revenues come from present customers. It is a fact that companies lose money on their new customers during the first few years.

By concentrating on the acquisition of new customers and neglecting present customers, many companies experience high customer attrition rates of between 10 and 30 per cent a year. Consequently, they waste even more money on a never-ending effort to attract new customers or win back former customers to replace lost ones.

It is no longer enough to simply satisfy your customers. Companies will always lose some satisfied customers. These customers switch to your competitors because they crave for even more satisfaction. It is imperative that your company deliver more satisfaction than your competitors.

Exceptional companies create delighted customers. They create fans who will stay with them for the long term. Companies that endeavor to make steady inroads in gaining mind share and heart share will inevitably make gains in market share and profitability.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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