Whoever is closest to the customer, wins.

Through dealing with retailers, selling direct and being a marketer I have come to the almost obsessive belief that whoever is closest to the customer will, eventually, have the most successful business.

Sounds obvious, but can be easy to forget.

For example, if I am managing a Large Brand, I can obsess over retail distribution, pricing, advertising and new product development. Playing with (useful) levers to get the maximum return for my marketing dollars.

But if the retailer deletes my product what do I have?

Unless the customer feels close to my brand and demands to buy it elsewhere, I've got nothing. Even if the retailer keeps the product, they usually do so at the price of more margin, unless I have the voice of the customer with me.

Because that is what is being close to the customer is about too - understanding their needs so you get it right. Having real conversations with them so you do develop products and Brands that they love and will follow.

Whomever is closest to the customer wins because:

- You know what they want and give it to them

- Structurally - you have the power in the distribution chain

- In an increasingly direct world inc. online sales, you need to be there to catch the ball as customers shift purchasing behaviours to a more direct model.

- In the face of increasing choice, people buy brands they like and trust. Without a relationship, you are left with the levers of price, features and high risk NPD.

Examples of companies that get close to the customer in industry-changing ways include Zappos, Metro Bank (a new model in banking), Carman's, Porshe and Nike.

Those who are closest to the customer win because they are able to deliver to customer needs, build a valuable asset in the relationship itself, build loyalty (from both sides) and simply care enough to get it right.

You? How are you shifting your business to get closer to the customer?

Photo credit: Mike's Journal