Understanding Quality
Quality is defined by your customers, not by you. It is their perception of your product or service that determines your reputation and, ultimately, your success. Your business can achieve up to 90% of its success based on the quality your customers perceive. Each time a customer uses your product or service, they should be compelled to say, “This is absolutely wonderful.” This feedback is a true measure of quality.
Quality Rating
Quality rating is about how often your product or service delivers on its promises. The goal is a 100% success rate – every time you sell a product or service, it should perform exactly as advertised. Customers are not interested in features; they care about benefits. They want to know how your product will improve their lives, not what it is.
Avoiding Commoditization
If your product does not stand out, it becomes a commodity, like sugar or rice, where price is the only differentiator. The challenge is to ensure your product offers unique value, making price less of an issue. Understand what your customers consider valuable – do they want to be happier, wealthier, or more at ease? If you can provide that, they will be willing to pay for it.
The 80/20 Rule
Vilfredo Pareto’s principle states that 20% of your products will generate 80% of your sales. Similarly, 20% of your customers will account for 80% of your profits, while also causing 80% of your headaches. Identify these top customers and products, and focus on them to maximize profits and efficiency.
Customer Feedback and Quality
Collect and document the best compliments from your satisfied customers. Use these testimonials to promote your products. Understanding what your customers love about your products can help you improve and maintain high standards.
Superior Products and Services
Determine what makes your products or services superior. This could be ease of use, faster results, or better pricing. Assess where you excel and focus on enhancing those areas. A quality rating helps you compare your business with competitors and identify areas for improvement.
Core Competencies
Identify your core competencies – the skills and knowledge that allow you to produce excellent products and services. Consider future trends and start training your team now to meet upcoming demands.
Abandoning Ineffective Products
Evaluate which products or services are underperforming. If you cannot achieve excellence in a particular area, consider discontinuing it. Regularly update and upgrade 20% of your products each year to stay ahead.
Triggering Positive Customer Responses
Think of three things you can do today to make customers say, “This is a great product.” Implement changes that will have the most significant impact, not just the easiest ones. Set clear goals for these changes and measure their success.
Striving for Excellence
The market rewards businesses that offer superior products and services. Your goal should be to provide the best quality possible. As exemplified by the Ritz Carlton’s motto, “Ladies and gentlemen serving ladies and gentlemen,” aiming for excellence in every aspect of your business are crucial.
Setting Goals
Set goals to be the best in your industry. Without specific targets, you risk being average or mediocre. This applies to all areas of life – from professional endeavors to personal relationships. Aim high to achieve greatness.
By focusing on customer-defined quality, leveraging the 80/20 rule, and continuously improving your products and services, you can ensure your business stands out and thrives in a competitive market.
Creating customer-centric products through the backward approach ensures your offerings resonate deeply with your target audience. Quality, as defined by your customers, is the key to sustained business success. By leveraging the 80/20 rule, regularly updating your products, and continuously striving for excellence, your business can thrive and stand out in a competitive market. Aim high, focus on what truly matters to your customers, and success will follow.
