Competition Customer Value Success How Can You Use The Theory Of Change

Writen by Adrian Pepper

When you look in the directory for a plumber, used car outlet or telephone shop, there are lots of them, some doing well and others not so well. Each has similar components in their business but some firms out-compete. Have you wondered why?

Why do customers buy?

The first part of staying in business is knowing how you add value. If you do not offer your customers what they want, they will not buy. If you offer a product or service that takes pain out of their lives or improves their enjoyment of life, they will queue to buy from you.

Why do customers move?

Some customers will always try out a new shop, restaurant or service provider – they like trying new experiences. Apart from this "random sampling" behaviour, customers rarely move unless you offer excess value that your competitors cannot copy or erode. Recognising what you do better, quicker and more effectively is the key to advertising yourself to those who have not tried you yet.

How do customers value you?

The third element is to know why customers stay with you loyally. In my experience, the only way to find out is to ask them and listen to their reasons. One house decorator I know is valued because he leaves customers' rooms cleaner after he has finished than they were before. Often when you ask this value question, you can also ask for a referral to friends of your customer who might also value the same aspect of your service or product.

What is your theory of change?

So the theory of change for your business asserts the difference that you make to the lives of your customers and clients. Try sketching out what this might be for your business and test your guesses with your business colleagues, collaborators and partners. Then take time to talk to sample customers and listen to their answers – then you will know how to be more successful.

Adrian Pepper coaches people through business and personal difficulties, helping companies figure out what to do, how to move forward and what to get organised. You can contact him through Help4You Ltd, through his website at www.help4you.ltd.uk or by phone +44-7773-380133. At feeds.feedburner.com/help4you, you can listen to his podcast for small businesses.