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[Column] Reflection: Should construction machinery companies pursue flow or viscosity?
Release time:
2024-05-29
In the past, the pace of life was slower, allowing us more time to enjoy the pleasures of life. Taking a train from Beijing to Xinjiang took 3 days, during which we could meet friends and learn about other people's lifestyles. Now, with high-speed trains, airplanes, and phones, the pace of life and work has accelerated, but strangely, people's disposable time has become less and less. During a one-hour journey, people are still working on their computers, and communication between colleagues relies entirely on text messages and emails, while the "stickiness" of friendships has also decreased.
Recently, entrepreneurs like Lei Jun, Li Bin, and Zhou Hongyi have been rushing to become internet celebrities, and the song of "grassroots internet celebrity" Guo Youcai has also made Heze South Station popular. In the internet age, it seems that traffic is far more important than stickiness; finding traffic is the key to success. However, the ironclad Douyin and the ever-changing top streamers suggest that this popularity may come quickly but fade just as fast. What will Heze South Station look like next year?
Business is also pursuing traffic, using various concepts, stories, and trends to attract new customers and new traffic. Companies attract new customers with the best Price, the latest products, and the best payment terms, and even the data statistics on service timeliness and customer satisfaction only target new customers. This seems to "punish" those old customers. "Who told you not to be a new customer?" After all, old customers do not buy equipment every year. Will abandoning stickiness in pursuit of traffic lead to consequences?
Indeed, as we enter the stock market from the incremental market, the flow of new customers gradually disappears. Who will be the next "internet celebrity"? Many companies feel confused and start to be at a loss. When companies think of after-sales service at the same time, they find that the flow of old customers has long disappeared. Without repeat customers, even if there is an after-sales market, it is just the "meat" on someone else's plate.
Mr. Bain, the founder of Bain & Company, learned a lesson during the fundraising process at Vanderbilt University: "It is always easier to get money from someone who has once signed a check for you than from someone who has never signed a check for you." After founding Bain & Company, he established a "loyalty" research project, making it the only large consulting firm in the world that places loyalty issues at the core of its business.
The loyalty economics based on this research tells us that the repurchase of old customers, increasing wallet share, word-of-mouth referrals, and recommending friends can significantly increase a company's revenue and profit. Bain's research results show that companies with a net promoter score (NPS) ranking at the industry leading position for three years or more are loyalty leaders, with revenue growth about 2.5 times that of their peers, and shareholder returns achieved in the next 10 years are 2 to 5 times that of their peers.
In contrast, Chinese companies have been chasing new traffic (new customers) for nearly 20 years, as if customer loyalty is an old antique from the last century, long outdated. In the internet age, traffic is the trendiest growth trend, and old customers have long been packed into suitcases by many companies, even treated as a burden and thrown off the train. In the eyes of some companies, only new traffic can bring whole machine sales, while old customers are mostly "troublesome people."
You reap what you sow; how a company treats old customers is how old customers will treat them. Customer loss is the inevitable result. Changing perceptions is the only way to move forward. When you know the path, it is hard to get lost. As we enter the stock market from the incremental market, the mindset must also shift from traffic thinking to stickiness thinking, from chasing new customer traffic to pursuing old customer stickiness, to ensure sustainable profit growth for the company.
The development of business relies on driving forces. In today's business environment, what companies and individuals cannot afford to lose is the driving force to move forward. Unfortunately, due to vicious competition, the pursuit of traffic, and the abandonment of stickiness, a large number of old customers have been lost, and the driving force for industry development is gradually disappearing. This is precisely why many companies feel confused today, leading many companies and individuals to choose to lie flat.
Has "loyalty" really reached its end in the 21st century? Of course not! Stay true to your original intention and return to the essence of business; the growth password of the stock market may really not be traffic, but stickiness.
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