One of my favorite management thinkers of all times is Peter Drucker. He’s credited with starting the profession of business consultants.

One of his famous statements was: “The purpose of a business is to make and keep a customer”. I love that statement and today we’re going to talk about 6 things you need to think about when it comes to this statement.


Transcript

One of my favorite management thinkers of all times is Peter Drucker. He’s credited with starting the profession of business consultants. And one of his most famous statements was, “The purpose of a business is to make and keep a customer.”

I love that statement and today we’re going to talk about six things you need to think about when it comes to this statement about making and keeping a customer.

Hi, I’m Josh Patrick, the founder of Stage 2 Planning Partners and The Sustainable Business. I’m also am the one who’s responsible for putting together our Cracking the Cash Flow Code program and I’m the author of “Sustainable: A Fable “About Creating a Personally “and Economically Sustainable Business.”

You know, the purpose of a business is not to make a profit.

That’s something that I run across all the time. I say, “What’s the purpose of a business “and to make a profit?” In fact, my father and I used to have this ongoing argument about whether profit was a purpose or a result. And I’m gonna tell you that, if your purpose of your business is to make a profit, there’s a good chance you’re not gonna be making a profit, because a profit is a result of doing the right things.

So here’s another thing to think about. Without customers, you don’t have a business.

You know, that’s an obvious thing, but we don’t spend enough attention about it. What we do is we focus on all sorts of things, but we don’t put enough focus on our customers and understanding how we go about creating a customer. But not just creating a customer, creating the right customer for your business.

So you wanna ask yourself whether you talk about what’s good for you or good for your customers.

Now I see this all the time on websites. I go to a website, and I see all this wonderful stuff about the company, but nothing about how they solve the problems for the customers, or even if they know what their customers’ problems or opportunities are. If that’s you, I want you to go back and look at your website. Look at the way you talk about your customers or talk about you when you’re in a marketing situation. You customers are interested in you, but only in the result that you can provide for them, not for what’s good for you, about what’s good for them. Here’s something else I want you to do.

I want you to integrate your values statement, and the ones I talk what it takes to create and keep a customer.

When I had my food service company, Patrick’s Food Service, we used to have a pillar or a value that says, “Only serve what you would wanna eat yourself.” So that’s a value that we had which was providing really good quality food service at a reasonable price. And what does that mean? It means only serving what you wanna eat. And what’s that talking about? It’s talking about what our customers want, not what we want. And I want you to be thinking outside your business, not inside your business.

Here’s another thing I see all the time as we talk about features and not benefits. I was recently looking at a proposal package that one of my customers put together, and the only thing in the proposal package was all the stuff that they were gonna put in. Nothing about the benefits. Nothing about the company. Nothing about why they’re the best for serving this particular customer or this particular customer base.

You know, the truth is, you need to stop talking about yourself, and you need to start talking about what’s good for your customers. At the end of the day, you just have to have your business be customer-centric and think about everything you do from the customers’ point of view. Stop thinking about your point of view. Start thinking about your customers’ point of view. Set up your pricing for success and you’re gonna find how easy it is to get the customers you want in the manner you want.

But you have to be a little bit brave about this. You have to go outside the box. You have to go outside things that you see everybody else doing and start thinking about it in a different way.

And then you’ll learn what I’m talking about when Peter Drucker says, “The purpose of a business is “to create and keep a customer.”  That’s what I want you to be doing. I want you to be creating, and I want you to be keeping the customers that you have.

So thanks for stopping by. Why don’t you scroll down to leave a comment. And while you’re at it, DOWNLOAD our infographic on what it takes to create cash flow freedom in your business. It’s The Success Path for Cracking the Cash Flow Code, and it’s something that I’m sure you’re gonna wanna look at, and it’s something that I’m pretty proud of. It really gives you an easy methodology for knowing what you need to be doing at every stage while you’re cracking the cash flow code.

So this is Josh Patrick. Thanks a lot for stopping by. I hope to see you back here. And scroll down. Leave a comment below.

Topics: financial freedom, Video, Sustainable Business, cracking the cash flow code, customer-centric business, features and benefits, peter drucker, purpose of business, keep customer, make customer, profit as a result

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