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The Five Levels of Customer Focus

iStock_000019257535XSmallOne of the Holy Icons of marketing is the concept of customer focus. It’s almost always used to signify a good thing, and something that is self-evident – that doesn’t require a lot of explanation. Of course, in reality things are a little more shades-of-grey.

Here, then, is a guide for distinguishing between Five Levels of Customer Focus.

1. Target Identification. Also known as the customer focus of a vulture. At this level, customer focus generally means follow the smoke to the fire, find the decision-maker as fast as you can, screen out the low-probability leads. In short, find that target so you can zero in on the bullseye.

2. Target Optimization.  At this level, customer focus means to find the ideal overlap between the customer’s need and your product. Find that need and feed it; find that pain point and pressure it; get the customer slavering for a solution, and pitch your product as the Filler of (that) Need.

3. Target Outreach. Reach out and touch someone the buyer. Get along with them, be friendly. Teach them how to buy, how to sell your product internally, how to be your ally within the customer company. Because that way you get higher share of wallet, higher ROI for the seller, better KPIs. Mo’ money for you, big picture.

4. Target Development.  Customer focus at this level means adding perspective to the customer’s view of their own business, challenging their belief systems, jointly developing product needs for the future and metrics to manage them by. You get longer client retention, lower sales costs, higher ROI for you both.

5. Post-Target Focus.  Get rid of the “target” metaphor entirely. Don’t see customers mainly as sources of profit; they are not means to your end – they too are ends. They are people and organizations with whom you spend time, helping to make them better. By this view, sales and profits are  byproducts – not the goal itself.

This taxonomy is of course arbitrary. You may have one of your own you like better, and that’s fine. In this particular view of things, things get better as you move from 1 to 5.

What do I mean by “better?”  Thanks for asking.

a. The seller’s profit goes up as you move up the scale. This is counter to the knee-jerk reaction that you make more money by being more rapacious.  You don’t, not in anything but the shortest of time-frames and the narrowest view of reputation.

b. The buyer’s profit goes up as well as you move up the scale. At level 1, one plus one equals two (actually less, because rapacious behavior leads to long-term system breakdown). As you move higher, efficiencies go up, effectiveness goes up, trust goes up, and so forth.

c. Economic utility gets maximized. Not only do seller and buyer each make more money, but the total benefit of the system is increased as you move up the scale. Costs go down, quality goes up, employment goes up, suppliers succeed, and so forth.

d. Social utility goes up too – not just economics. The world is generally happier when people get along than when they don’t. Suspicion and pessimism are unfortunate traits in business; trust and optimism are not only their own rewards, but are self-fulfilling prophecies.

Where do you and your business fit on the Customer Focus spectrum?

 

Trust-based Selling

The goal of most selling is to make the sale. The goal of trust-based selling is to help the customer; the sale is an outcome, not a goal.

In trust-based selling, the right time to mention price is when it is useful to the customer to know it.

In trust-based selling, you don’t “handle objections” – you jointly explore the fit of the solution.

In trust-based selling, hard-sell is not a sin – wrong-sell is.

In trust-based selling, the acid test is whether or not you’d refer the customer to a competitor – if the competitor has the better solution.

In trust-based selling, a sale transaction is just an event along the path of a relationship.

In trust-based selling, the default mode of presentation is transparency.

In trust-based selling, the time-frame is lifetime. Assume that you will meet this customer again, along with his or her customers, cousins, bosses and Facebook friends, and that every interaction is evident to all of them instantly. That’s your reputation.

Trust-based selling relies on the proposition that people return good for good, and bad for bad. If you treat a customer respectfully and with trust, and they happen to need what you are selling, the natural response is to buy it from you.

That proposition is not only an ethical template – it is a business model.

Trust-based Selling: McGraw-Hill, also available in Kindle and CD-ROM format. It’s a good book.