BWI Video: How Your Customers Keep You In Business

Beach Walk Insights - Volume 2, Issue 7 - Play time 2m 9s

Peter Drucker said "The purpose of a business is to create and keep a  customer" and I couldn't agree more. This got me thinking about Greece and the European Union, and the current situation between the two entities.

It seems that each party is speaking and neither party is listening. Those representing the EU would do well to recall Drucker's simple statement. The Greek people voted in their new government precisely because they were tired of the austerity measures impacting their every day lives. The only reason this government is in power is because because the people put them there.

You're probably wondering what this has to do with your business. Well, the only reason your business is still going is because your customers keep you going. 

A friend of mine recently told me a story about a small, independent car service station he knew, where he used to buy the petrol he needed. The prices at this station were always higher than the larger chains. Despite this, local people still bought their fuel there, as they wanted to support a local business.

However, all this changed when the UK suffered a fuel shortage (as a result of industrial action). This particular station saw an opportunity to make more money, and increased their prices by an unreasonable degree. 

Once the strikes were over and the country had returned to its normal state, all the locals took their custom elsewhere and the station went under not long thereafter. The owner failed to understand that his customer had it in their gift to both keep his business open - and to close it down. They chose the latter - as have the Greeks. 

It'll be interesting to see how "Greece v EU" plays out. In the meantime, keep your eye on the ball.

Posted on February 20, 2015 and filed under BWI.