What is a customer strategy, and why do I need one?

Ever feel like there’s just too much on your plate? A never-ending list that grows faster than you can tick things off.

The drive for more business often adds more to the pile: more ads, more offers, more social media channels to be seen on. Ultimately, more cost, and more overwhelm.

Sound familiar?

Here’s the kicker: most of the time, it doesn’t work, or at least not as effectively or efficiently as it could.

That scattergun approach often comes from a lack of strategy.

Sorting the 'should do' from the 'could do'.

When was the last time you stepped back and asked: Are we focusing in the right places to get the results we want? Sometimes the pressure to just get on with things can make it easy to lose sight of whether we’re doing the right things, or just more things.

As Roger Martin, co-author of 'Playing to win: How Strategy really works', put it: “When you have no strategy, anything and everything can seem like a wise choice at the time.”

But a little time spent up front can bring clarity, focus, and the foundation for getting results faster.

So firstly, what is a strategy?

Put simply, a strategy is a series of choices about where to play, and how you're going to win. It's not a to-do list. And it's definitely not a marketing plan. But it is essential to create a good one of either.

Not every business strategy is customer-led. Many years ago, I worked for an organisation that owned a large amount of industrial land on the outskirts of a city. As the city expanded, that land became prime real estate. Their strategy? Sell it off slowly, prices stay high, returns are maximised. Not customer-focused, but very profitable in the short-term.

That type of approach isn't going to work for most businesses though.

Enter, the customer strategy.

A customer strategy puts the customer at the centre of your business decisions. It’s grounded in a simple belief: that the best way to grow your business is to create something your customers truly value and want to buy more of.

Roger Martin summed it up perfectly: “The only way we can win is for our customers to win.”

But doesn’t being customer-focused mean even more to do? Trying to deliver everything a customer could possibly want? That's a recipe for being even more overwhelmed!

That’s where the strategy part comes in. Strategy isn't about doing everything, it's about making choices, of where to focus.

Not every customer, is your ideal customer.

Most markets are far bigger, and more diverse, than one business can realistically serve. And buyers aren’t all the same either. Some prioritise price. Others value quality. Some want everything digital and fast, while others want personal service and face-to-face support.

A customer strategy helps you choose your ideal customer, the people or businesses you’re best positioned to serve, and focus your efforts where they’ll have the most impact for that group.

But I talk to customers every day, I already know what they want. Well, if you're talking to customers daily, that's a great start - but ask yourself when you last really spoke to them about their needs, what they want, or what they like, or don't like about your business - or talked to people that use your competitors instead? And let's not forget our customers don't always tell us the truth - we're all guilty of saying 'it was fine' to a poor restaurant meal, then never going back! Creating an in-depth, and accurate understanding of customers is critical to uncovering unmet needs, expectations, and creating the offers and experiences that will delight them.

How you'll win: create value where value matters most.

Being customer-led doesn’t mean being the best at everything - that's not possible for any business. Instead, it means being exceptional at the things that matter most to your ideal customer.

A strategy's job is to figure out where you can truly stand out. The areas where your team’s strengths align with what your customers value, and ideally, where your competitors can’t easily follow.

Focusing your efforts on where you want to be exceptional, also means accepting being average in areas that matter less to your target customer. That can be a pretty tough pill to swallow for those who always like to deliver to a high standard, but it's a must to free up your resources to focus on being truly exceptional where it matters.

Take Microsoft as an example. World-class technology. Comprehensive product suite. Market leading and known world-wide. But try getting support when something goes wrong? Frustrating at best. Even global giants realise they have constrained resources and need to choose where to focus.

Your strategy should be the same: don’t try to be everything to everyone. Be outstanding at what counts.

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What changes when you have a customer strategy?

Clearer direction, stronger collaboration. Once everyone knows who you’re targeting and how you’re different, efforts are aligned. Less confusion, more momentum. You're all working to one goal, rather than individual or team specific goals.

Faster decision making, faster progress. No more endless debates about what to do next, or trying to do a bit of everything. When the priorities are clear, work gets done faster, and results delivered sooner. And you can feel comfortable stopping doing things.

A more consistent, and distinctive brand. I'm not talking about logos or colour palettes, think of brand as what customers say about you, when you’re not in the room. With a clear strategy, you focus on being distinctive in key areas, and every touchpoint your customer has with your business reflects that - from your advertising to your product offering, sales team to your service.

More loyal, valuable customers. When you deliver what matters most to your target market, those customers are happier with your offering. They stay longer, spend more, and refer others.

Deeper expertise. Focus builds strength. As you focus your efforts, you learn what works faster, and build your collective knowledge. Your people become more skilled and your ability to continually improve your offering speeds us too - faster than your competitors can match.

A more engaged team. People want to do meaningful work. A clear strategy helps everyone, from finance to the front desk, see how their role contributes to the overall company success.

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What next?

If you're reading this thinking, "Sounds great, but I’m already stretched" - I get it.

But sometimes slowing down a little allows us to speed up, in the long run. And a customer strategy doesn’t have to be a big, or long project, it just needs the right-sized approach, and the right person to guide it.

If you’re curious, let’s talk.

Want to know more? Find out how developing a customer strategy with Fryer HQ helped New Zealand's leading drilling fluids company, Blick, focus their efforts and get after growth in Australia.