What? The Purpose of Business Is Satisfied Customers?
“The conventional definition (of business): “an organization that makes a profit,” says (Peter) Drucker, “is not just wrong but irrelevant. Profit-making is not the purpose of management decisions, but a test of whether they work.” “There is only one valid definition of business purpose – namely to create a customer.” “The result of a business is a satisfied customer.”
This customer focus is found more and more in business literature, making headway against the traditional sales approach of “interruption” marketing, controlling the sales call and overcoming objections. I won’t say that the internet has led the charge in this change of attitude, but it has certainly played a large role in demonstrating that a customer-focused approach is required these days. Marketing media is ubiquitous, causing more and more of us to tune out. So discovering customer needs and meeting them is essential. Finding a powerful and interesting way to convey this all can be tricky, though.
It’s harder and harder to distinguish yourself in the marketplace and increasingly difficult to get people to pay attention. Becoming a resource for potential buyers is one way to be heard. Having people seek you out because they trust and value your opinions seems the ideal way to position yourself. With creating customers, and satisfied ones at that, as the central focus of your business, it is a natural progression to build business through relationships and positive word-of-mouth.
It is easy to get distracted by objectives and loose site of the ultimate goal. Satisfied customers as your holy grail affects every aspect of your business, from customer acquisition, to product/service delivery, to customer service and follow up.
Drucker’s quotes can be controversial and should stimulate thought and conversation. Maybe even push us into a chicken and egg argument. But the point of it all is that by focusing on satisfied customers, you may have taken the biggest step toward profit.
October 13th, 2009 at 9:14 pm
Hi Emile,
Nothing personal, it’s just business.
Remember the last time you heard that? Was it in the context that someone was getting the screws put to them?
This blog is an excellent topic. Tim Sales is one of my favorite business mentors. He says, “Simply put, ‘business’ is making someone’s life better. That’s all business will ever be. The further away a business gets from making its customer’s lives better, the less successful that business will be.”
I could not express my own opinion any more clearly.
Thanks for provoking good thinking, Emile.
October 14th, 2009 at 5:38 am
The old “It’s just business” is one of the weakest excuses a leader can offer. It came into vogue as a line in the Godfather. I guess some think it’s cool to model ourselves after soulless criminals, the worst of our society.
Great quote. I’m adding it to my library. Thanks for the great comment.