Business can be quite tough. For every one successful company, there may be dozens, maybe hundreds, of failed companies that have been crushed by the market. The key is to be proactive, use common sense, and follow a few simple principles.
One of the most important tips is to focus on providing solutions, not selling products. Like it or not, customers are not looking for our brand. They have a problem and are simply looking for the solution that will best help them solve it and provide maximum value at the best price. Of course, there are exceptions to the rule where a company has built a brand so strong that customers seek it out even though a competitor offers a better solution. This is especially true for fashion brands that offer a cohesive image to their customers.
Today, it is crucial to have an entire ecosystem of products and services that draws users into a business. In this case, it is difficult to leave the ecosystem and switch to a competitor. Note that all large companies recognize the importance of a comprehensive ecosystem of products and services. For example, technology companies like Apple, Google, and Microsoft are shining examples of this strategy: if you buy an iPhone, it makes sense to buy a MacBook to go with it. Plus, you get cloud storage, you buy apps that you would have to repurchase on Android, and suddenly you don\’t want to think about switching. And in the future, they will only buy products from one brand.
Understand that it is not the features a product sells, but the benefits it brings to the customer. In what way does the product help solve the customer\’s problem?
Before starting a business, conduct market research. Research will help you profile your target customers. Statistics can help answer questions about what problems your product should help customers with. Pricing should always be optimized. For example, lowering prices will not necessarily increase sales, but it will certainly decrease margins. On the other hand, for a premium brand, lowering prices could damage the brand\’s reputation in the eyes of the customer. How to optimize prices without lowering prices? Offer customers an “exclusive” advantage that they cannot get from competitors. You can also optimize price by changing the positioning of your product. How? For example, let\’s say you sell watches and you want to sell more 5,000 CZK ones instead of 2,000 CZK ones; simply put the 5,000 CZK ones next to the 10,000 CZK ones. Because customers subconsciously respond to context.
Companies with friendly staff that are courteous to their customers and willing to meet their needs are more successful.