Business with No Customers...” The Power of Recommendation”

We often feel that our product is the best in the market, but why customer are not approaching to us?

Let us understand with an example:

Imagine in area there are 5 branches named “Muthoot Finance”, “Manappuram Finance”, “Muthoot Fincrop Ltd”, IIFL, Kosamattom Finance, KLM etc…

Often we could see that customers are approaching only one or two outlets frequently and this happens generally in all kinds of industries.

If you look at everything is similar like the offerings/Services/Quality … all are offering same kind of products/services /quality then why customer is not coming to my branch?

This is happening because, Customer does not know to us…

And often we work with the people whom we know well and also we purchase things from the people whom we know well.

Let us understand with an example

One of customers are in need of Rs 25000/- and the first though that comes to his mind is to ask or to get guidance from his friend. When he asked with his friend, he took him to one among the branch mentioned above.

Now let’s understand the typical mindset of our customers’

In this case the customer will go with his friend because of the TRUST, and since he is new to the branch or Market, most probably he will like the product/Services/quality since he has been taken by his friend to this branch (here customer’s friend introduced him to the branch) . And similarly when customer’s other friends are also in same need the customer will recommend the same branch only..

Do you know why?

At the very first stage when customer was in need his friend recommended one among the branch to him, and this process will go on and within 6 month of time a bunch of customers will be there in the branch’s kitty.

Do you know why this happen?

In today’s world customers are not ready to try different branches’ products due to lack of trust and also it is not necessary that one branch which he entered first is the best in the market, there may be other branches’ which may offer services/products/Quality better than the one he entered earlier. Since the customer was brought by his friend, so there would an attachment in his sub conscious mind that “this branch is the best in the market”. And similarly he not ready to come out from this circle, since he was helped by his friend.

Now let us understand how to enter into this Circle...

Often we can see happing this, there may 6 our 7 outlets which offers same services/product/quality but all are going to the one to two outlet only.

First of all we need to understand that the customer will not come to us we need to go the customers.

If that is true then how can we do that?

·        Offer Discount: to attract a few customers

·        Focus on the Niche: identify that what our competitor are not having or not focusing well and give more focus on that with few verities

·        Create Customer Testimony

·        Take feedback from customer

In this way we could get at least 3 or 4 customers out from that circle and we need to grow our business from that customers’ only … how … by collecting references from them….,

Since customer will go or shop or would like talk with the people only they know well.

Now let us understand what makes human mind to think to go or to shop thing from the people whom they known very well.

Let us understand this with an example:

I have a mobile phone and it got damaged and randomly I went to one service center to get it repaired and similarly the service center repaired it in a good manner. And after few days my friend’s mobile got damaged and he came to me to enquire about the service center and here I gave the reference of the service center from where I got repaired my mobile earlier

Now, In this case my Fried will definitely go to the service center which I referred to him, even though there is a service center near by him. This phenomena often we called “The power of Recommendation.” And we need to grow our business by using this power only.

Generally customer is having a fear in his mind and feels very risk to go and try unknown outlet’s products and services. Risk may be…

Family risk

Financial Risk

Due to this kind of mindset he will never go to any new or unknown outlets. He will only trust the one whom he know well.

 

Let’s take another example:

Suppose, we along with our friends are going to a beach for celebrating holidays and suddenly we decided to play cricket and none of us is having a bat or a ball with them, and we decide to buy it while travelling meanwhile we randomly visited one sports shop and bought one bat and a ball from there.

Once we reached at the beach, and as per the planning we are about to play the cricket meanwhile we noticed that the quality of bat is very poor and it just got broke after hitting a shot.

 

Now as a customer I know that, if I go to that shop and show him the broken bat, he will definitely give the replacement, here customer is not worried about the money that he spent to buy the bat, here he feels insecure because the very purpose of going to the beach has gone for a toss and being a customer he/she will never go that shop again and the people along with him also never go to that shop again. In the same way he will never recommend that shop to anyone also.

 

The simplest way to grow the business is to understand the “power of Recommendation “...