One customer is enough to make or break your business

A clothes store trader swipes a customer's payment card. [Getty Images]

Kenyans are peculiar, to quote former Safaricom CEO Michael Joseph. It’s in business where that peculiarity emerges.

Recently, I was looking for a professional to do some work for me. I was given a number for two such professionals and humbly sent a request. They never responded.

I am yet to understand why Kenyans never respond to messages. Maybe they never lived through the age of house phones? When I met the person who referred me, I told him they never responded. His response surprised me: “Follow up, you are the one who needs the service.” 

I should follow people to give them money? Could that explain why we have few global firms? We never pursue customers and their money. While marketers say the customer is king, that is not supported by facts. Why would someone not respond to ‘money’? I am sure hustlers reading this are salivating…

There is an economic explanation for ignoring customers - lack of competition. We get the worst customer service where there is no competition. Police have no competitors and so are our MPs.

A number of professionals with “my” behave the same way e.g. my doctor, my lawyer etc. That “my” connotes a lack of competition and the costs of switching to someone else. 

Ever noted kinyozis and kiosks behave very differently? There is lots of competition.

That is why you get ‘saucer’ in vibandas and not five-star hotels. 

Let’s add that paying your employees badly disincentives them to pursue the customer, feeling they are ‘enriching’ you. That’s why an employee share ownership plan is a great idea. 

Why do we fail to pursue customers?

Maybe, we think one customer is not worth the effort. We need to learn from politicians that every vote counts. Through snowballing, you get more customers.

If we think long term, focusing on one customer makes lots of economic sense. 

He may be one customer but he could come again and again. With others, you can easily reach a tipping point and your firm grows exponentially. The network effect is not only in Facebook or Safaricom.

Your continuous assessment test (CAT). What’s the network effect and why does it matter to a hustler? The best response will get a prize from me.

If you want to grow your business, start with that one customer. With time, you could build your kiosk into the next Kenyan multinational. How do you treat your customers? Talk to us…