Sharing the Value.
Customers expect more and more value for their money. Operating in this environment means being forced to make lots of tough Invest vs. Return decisions. Should you invest lots of cash Toilets? Faster CC machines? Social Media? Seating? Music? Kitchen? Packaging? Discounts? What will your customer find most rewarding? Where will they feel the investment the most? The answer is obviously - everything.
Todays customers expect everything to be perfect, wonderful and tasty for their hard earned money… and they rightly should. #myopinion
Solving for what your customers value is so important to do in the start up days of the business. If you can figure out your customer early on, you can build the brand with them. You may spend years trying to make the perfect burger, only to find out your customers love you for your home-made ketchup. All you had to do was bottle it.
What we need to do is share some of the profit back with them or to better word it, run with higher operational costs. We need to spend more money then we are comfortable with on Ingredients. We need to pay more than Minimum Wage. Do not try to squeeze extra profit by cutting your Maintenance and Repair budget… nope your restaurants need to be refreshed every 5 years, the brand every 7. We need to spend more than the guys down the street because today’s customer can tell the difference.
When you get it right and give your customers a Brand Experience that exceeds their cost of acquisition, your giving great value for money. When we do this, the business prospers. When the business prospers, we grow in volume. When volume grows, we get better pricing on controllables. With better pricing, we can make more profit. When we make more profit, we invest some of it back into the Brand Experience to make it more valuable. We keep the price of acquisition the same. The business prospers...