Workplace

"There is truth in the old saw that when customers ask for a drill, what they really want is holes. Delivering the right drills means asking what kind of holes they need." This great insight comes from Customer Intimacy by Fred Wiersema. It's a vivid example of the critical mission you have: Know your customers' needs.

Two hurdles

Two things conspire to weaken your understanding of customers' needs: familiarity and fire fighting. If you are similar to many roofing professionals, you have worked with your customers for a long time. Initially, you probably put a fair amount of effort into learning your customers' needs. Then, you settle into a routine. You serve a customer's needs as you first learned them, assume you understand the customer and shift to autopilot. And you know what they say about familiarity. It may not really breed contempt in your mind, but your customer may believe it does if you're not updating your understanding of him with the same attention you first gave to him.

The other conspirator is fire fighting. We're irresistibly driven to handle the hot potato in our hands and ignore the fundamental underpinnings of our long-term business goals, strengths and skills. Fire fighting turns you inward. Increasing customer intimacy turns you outward to focus on ever-evolving customers' needs. You have to balance the tension between the two by scheduling specifically planned activities, such as conducting in-depth interviews with customers and using the information to adjust your processes and educate your customers about expectations. Also, set aside time to discuss what worked well and what could be improved.

Why do it?

There are two reasons to build customer intimacy. First, there is a big payoff for developing customer intimacy with your customers and, what may be surprising, with your suppliers, as well. The more you and they know about one another, the better your suppliers can serve your needs and you can serve your customers. In other words, intimacy should be a two-way street. Nothing says you can't take the lead and help your suppliers understand your needs so you will get better results from them. Take time to meet with them and share how they could serve you better.

The second big reason you should work hard at customer intimacy is that it is easy and cheap to accomplish. Your computer, cell phone, e-mail and many other modern information tools make greater customer intimacy efficient. It's all about well-organized, relevant and focused information properly and widely distributed to people throughout the company who can use it to create value. Such information can be about what your customers appreciate and what you must deliver to provide complete satisfaction. What do they want from you? Is it reasonable? Can you deliver it? Should you deliver it? Are you sharing information broadly enough in your organization to effect change?

For example, I worked with a food-coloring company that developed a color ink to the specifications of a printer company. They practically lived with the printer manufacturer to determine their needs for their customers. The food-coloring company became the exclusive provider to the printer manufacturer. The success of this product was highly dependent on effective and meaningful communications—customer intimacy—between the two companies.

The customer of the printer company got what it needed—an inexpensive and high-quality ink printer. The printer company, as a customer of the color company, got what it needed to deliver an inexpensive and quality ink product. The color company, as the supplier, listened carefully to what the customer brought to the table and delivered the product at a good price to the printer company and good margins for itself. If we look at information flow and response to information as an effective way to improve margins, this truly is an ideal example of how it works.

Some things to do

To build customer intimacy, employees should analyze processes, identify flaws, challenge assumptions and assume responsibility for making needed changes oriented to customers and suppliers.

In addition, get everyone in the organization to listen carefully to suppliers, employees and customers and actively seek their input.

Finally, find out why customers have left. Then, adjust your processes as justified by the costs and benefits to be gained.

Melody Camp is a management consultant based in Chicago.