“If I could pay my bills during and after the lockdown, I am not afraid of any more pitfalls that may come along the way,” said Austin, a 23 year old business computing graduate who co- owns a shop selling phones at Ivory plaza.
This pitfall is one of a kind-as situation where customers can’t access your location and neither can business owner access his stock.
Of all challenges, he never imagined business could have an abrupt off switch. Knowing he wasn’t alone gave him some temporary peace of mind.
However, the thought of permanently losing loyal customers gave him sleepless nights.
Customers are the reasons this business exists, especially loyal customers; disappoint one and all of them will disappear.
Unfortunately, the lockdown was not in his control, what was in his control was doing deliveries which he also failed to do since he couldn’t access his product!
He almost got a heart attack when he discovered some of his customers were delivering to customers. For an entrepreneur who cares about the needs of his customers, this was one of his lowest points in life.
The phone business in Uganda is one perfect example of hyper competition-too many sellers selling the same item with zero product differentiation. Sellers lower their prices to attract more customers hence reducing the profit margin.
Small profit margins increase payback period of capital investment. With his business computing background, Austin acknowledges this theory and appreciates the need for cost effective innovative approaches to increase his market share for a product that is ubiquitous in the market.
Many people have woken up to open small businesses after realizing how salary cuts and being laid off are not far from reality.
This raises one major question for small business owners; how do you maintain and increase customers for your small business in a hyper competitive business environment in COVID-19 times?
Any enterprise that’s too big today began very small. Business growth is anchored on increasing customer base.
Customers of the 21st century are empowered with sufficient market information and have very high expectations from enterprises.
Depending on the industry and product, there are two key strategies of maintaining and increasing customer base as mentioned below;
Best customer experience; whether you are having a good or bad day, the customer is always your boss and you have to give him or her best experience.
A simple big smile at a customer can brighten his day and make the experience memorable.Tilman Fertitta, the largest restaurateur according to Forbes (he owns close to 700 restaurants in the United States) emphasizes one of his mantras-95/5 Rule_ Focus on the 5% of your business that’s not right.
Let’s point out the small things business owners ignore but turn off customers-picking phone calls when engaging a customer, no seats for customers waiting in line, dustbin over packed with rubbish, poor personal hygiene, not listening attentively to customer feedback/ requests. It’s the simple things that matter; whether it’s a saloon, mobile money kiosk, restaurant, hardware shop, phone accessories, garments shop, pork, chicken, goat joints and washing bay etc.
Always remember, there are no spare customers. If you don’t take care of customers, someone else will.
Word of mouth marketing; when asked to introduce himself at a wedding meeting, he stood up and said, “Did you know that Apple invented and patented curved corners on phones, right now smart phones can’t deform your pockets because of that innovation. My name is Austin. I am not only a cousin to the groom but also a trusted supplier of all his gadget needs. If you want to be as happy as him with your gadgets, I am very available after the meeting.”
What he said was unforgettable and it was the beginning of my story with Austin. Not only am I his loyal customer, but I have recommended him to all friends and family which has been very rewarding for him and fulfilling on my side. How many of you train your mouth to win customers at the slightest opportunity- in the shopping mall, elevator, wedding, conference, restaurant, taxi, taxi stage, bus, train, church, gym etc. This is what I call skilful networking.
The ability to pack your message in a persuasive, informative and entertaining way is important.
This ability can be developed or adapted if one is passionate about his/her enterprise and practices how to pitch.
It requires the business owner to have a relentless zeal for continuous self-improvement. Your mouth is the most efficient marketing tool and you have to train it. However, if used badly, it can chase away customers.
We now live in a customer economy where the customer is king. This is a result of production over capacity. It is customers, not goods that are in short supply.
A marketing manager of one of the most respected Ugandan brands once told his department, “A customer is the most important visitor on our premises. He is not dependent on us-we are dependent on him. He is not an outsider in our business-he is a part of it. We are not doing him a favour by serving him…. he is doing us a favor by giving us the opportunity to do so.”
By Shannon Katureebe
