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Tuesday, July 23, 2019

Contrary to popular beliefs, the purpose of a business is to create and keep customers

Ateneo Professor on Entrepreneurship

Rizal Philippines
July 23, 2019

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Contrary  to popular beliefs that a business is out there to make profit\ for the stake holders, the real primary purpose, according to Peter Drucker is to create customers.   Everything about the business -  production, finance, logistics, etc should be customer centric... How to make the product responsive to the customer wants and needs, finance to provide easy and convenient financial package for the customer to acquire the products, SCM how to make the products reach the customer fast and in undamaged condition, office to service the account well, and office staff to provide unique customer experience.

Start to worry:

1. When you do not have prospects;
2. When the number of staff exceeds the number of sales;
3.  There are many customer complaints...

Muster the energy and the team spirit of everyone for superior customer experience..  Be sure  you are tops in that area...

Profit is the score, is the reward for giving superior customer service.  If you think about this, your success in business is assured.

Many companies in seeking tops strategic move, think of complex matters.  Tops should be the company, the product  the customer and competive situaition.  Is your product serving the customer well, are you selling superior product (better than competitors)  Are you making it easy for the  customers to buy from you at affordable cost


A well known FMCG company taking advantage of the RORO overhauled its logistics business.  Aside from outsourcing, it reduced its distribution centers to only 3: one in Luzon, one for Visayas and one for Mindanao.  The cutting of DC removed delays in transshipping goods from so many DC.  From the factory and DC, the following day, the products can be shipped in 24 hours to any point from Luzon to Visayas, and Luzon to Luzon and Mindanao to Mindanao, assuring freshness of the produce (shelf life).  and reducing losses from expired (Back Order)  products.

Everything starts and ends with the customer


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