A Different View: Management and Customers

November 19, 2024

Assuming management views their businesses differently from customers, why does this difference exist? Quality, customer service, operational efficiencies, etc. should be practically identical. There's definitely a challenge, however, regarding what management believes and knows about their operations, and what customers believe and experience when they engage with the business as a customer or a prospect. These differences (perceived or real), obviously, can result in customer dissatisfaction and ultimately lost revenue and customers. The solution includes discovering both the differences and how the differences can be resolved that will ultimately close the gap between management and customers.

(1) Customer Expectations & Experiences

Small businesses, obviously, need customers in order to grow and become long-term sustainable businesses. Customers’ perspectives are mainly shaped by the quality of the services or products they receive, the ease of communicating with the business, and the overall feeling they have during their engagement. Key elements from a customer’s viewpoint are:

Product or Service Quality

Quality of products or services is crucial for a customer. This includes the reliability of the product, how the service meets their expectations, and the value received for the money spent. Consistency is essential as customers expect a uniform experience each time they interact with the business. Any variation in product or service quality can essentially cause dissatisfaction regardless of behind-the-scenes challenges the business may face.

Customer Service and Communication

Another factor is the degree of customer service regardless of the size of the business. This encompasses having knowledgeable employees with helpful and proactive attitudes and handling inquiries or complaints quickly. Any disconnect in communication such as ambiguous return policies, billing errors, slow responses to requests, etc. all lead to customer frustration.  

Convenience and Accessibility

Customers also mentally rate businesses on convenience: that is, how simple the purchase process is, how accessible customer service is, how easy the website is to navigate, etc. Challenges in any of these areas can result in unhappiness and discontent for the customer.

Brand Image and Reputation

Customers also develop opinions about a business based on its brand image and reputation. This includes social media presence, internet reviews, community involvement, possible signage, location, and physical appearances. Customers often believe a brand represents its products or services. While management might have a different branding focus, for the customer perception is reality.

(2) Management Perspective: Challenges and Focus 

Unlike customers, small business owners and managers are frequently more concerned about just operating the business: sales, profit margins, employee satisfaction, growth, and sustainability. This broader focus can result in different priorities from that of customers. 

Operational Efficiency

A very basic concern for management is operational efficiency demanding everyday attention to inventory management, price control, staff scheduling, supply chain dependability, etc. Frequently, operational decisions can be disconnected from customer experiences. 

Financial Constraints

Every small business must balance its books, and management is acutely conscious of the need to produce revenue and manage expenses. Cash flow is frequently tight in small businesses and limits investment in new technology, service expansion, or competitive pricing that leads customers to think that there is insufficient or no new innovation, non-competitive pricing, or perhaps a lack of high-quality customer service (again, perception vs. reality in the minds of customers).  

Employee Staffing

Hiring, training, and continuous retaining employees are significant problems for small businesses. Training and motivation call for constant attention to ensure that customers always have a positive purchasing and engagement experience. 

Although management might see staffing problems as a temporary hiccup, customers usually have little tolerance for poor service or mistakes when there are other businesses providing essentially the same products or services. 

Conclusion

The divide between what customers see and what management sees in a small business is the result of various experience, perspectives, and priorities. Management must balance operational efficiency, potential financial constraints, and long-term growth objectives with the reality that customers value the immediate experience they have with a business and its products or services.