Customers | Sense is honed by the ability to imagine a customer's wallet and frustrations

Customers

Last time, I wrote about numbers.
Sense that ignores numbers is merely personal preference.

Click here for the previous article

Sales, gross profit, cash, churn rate, average order value, sales man-hours, and payment terms.

Saying something looks good or promising without looking at those is not a judgment.

However, looking only at numbers is not enough.
There is always a customer behind the numbers.

Sales have increased.
Who paid that money, and why?

Churn has increased.
Who stopped finding value, and where?

The average order value has dropped.
Is it because the customer doesn't see the value?
Or is it because the sales team is selling it too cheaply?

Inquiries have increased.
Is it because interest is growing?
Or is it just because the explanation is insufficient?

Numbers are important.
But if you don't look at the customers behind the numbers, you cannot see the reality of the business.

Business sense is honed by the ability to imagine a customer's wallet and frustrations.

Sometimes you think you are looking at the customer, but you are actually looking at the company

Many companies say they are looking at the customer.

They listen to customer feedback.
They conduct surveys.
They keep records of sales meetings.
They manage inquiries.
They categorize reasons for churn.

Of course, that is necessary.
But that alone does not necessarily mean you are looking at the customer.

What you really need to look at is what the customer is struggling with, what they are dissatisfied with, and what they are paying for.

The value the company wants to convey is different from the value the customer feels.
The value the sales team explains is different from the reason the customer bought it.
The features the product team wants to build are different from the reasons the customer continues to use it.
The revenue management wants to grow is different from the budget the customer can afford.

If you miss this, even if you think you are looking at the customer internally, you are actually just looking at the company's own convenience.

In meetings, you talk about the customer.
But instead of the customer's frustrations, you are talking about the features your company wants to sell.

In documents, you organize customer issues.
But it is not in the order of what the customer is actually struggling with, but in the order that is easiest for your company to explain.

In sales, you listen to customer needs.
But in reality, you are only picking up the words that are convenient for closing the deal.

Looking at the customer does not mean mentioning the customer's name.
It means looking at the customer's wallet and frustrations.

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Customers do not buy things just because they are good

Creators try to make their products and services good.

They add features.
They improve quality.
They refine the design.
They polish the materials.
They explain things more carefully.
They increase the number of case studies.

That in itself is not bad.
But making something good does not mean it will sell.

Customers do not buy because it is a good product.
They buy because they have a reason to pay for it to address their pain, hassle, anxiety, losses, or desires.

Time is reduced.
Effort is reduced.
Failures are reduced.
Revenue increases.
Costs go down.
It becomes easier to explain responsibilities.
It becomes easier to move things internally.
Anxiety is reduced.
They are freed from troublesome tasks.

They pay money because they have these reasons.

Conversely, no matter how good the features are, if they do not connect to the customer's wallet, they will not be bought.

"It looks convenient" is weak.
"It looks good" is also weak.
"It would be nice if I could use it" is also weak.

Does the customer really have a reason to pay money right now?
If you don't look at that, your business decisions will be off-target.

People with business sense do not look only at the perfection of a product.
They look at why a customer opens their wallet.

Customer frustration cannot be seen through surface-level words alone

Customers do not always tell you their true frustrations directly.

"The price is too high."
"It lacks features."
"I will consider it."
"I will discuss it internally."
"If the timing is right."
"It is low priority right now."

These are the kinds of things they say.
Of course, those words are important.

But it is dangerous to take them exactly as they are.

Is "the price is too high" really a price issue?
Or is it just that the value hasn't been communicated?

Does it fail to resonate with the decision-maker?
Is there a different way to secure the budget?
Are the results after implementation unclear?

Is "it lacks features" really a feature issue?
Or is it that they cannot imagine it fitting into their daily operations?

Is internal coordination a hassle?
Are they worried about integration with existing tools?
Is there no one who can master it?

Is "I will consider it" really a sign of consideration?
Or are they just unable to organize their reasons for declining?

Is the priority low?
Is there a separate decision-maker?
Is the pain point weak to begin with?

A customer's words are the entrance, not the answer.
You need to imagine the frustration that lies behind them.

What are customers troubled by?
What do they find troublesome?
What are they afraid of?
What do they want to avoid?
What is the reason they would pay money?
What would need to be resolved for them to explain it internally?

Only when you look this far can you say you are truly looking at the customer.

Customers have reasons for not buying, not just reasons for buying.
When looking at customers, many companies search for reasons to buy.

Of course, reasons to buy are necessary.
But it is just as important to look at the reasons not to buy.

Customers sometimes do not buy even when they feel the value.

They think it is good.
But they will not buy it right now.

They think it looks convenient.
But it's not enough to move the company.

They understand the necessity.
But the reason to secure a budget is weak.

If you don't look at these 'reasons not to buy,' both sales and product development will be off-target.

If the real obstacle lies in internal approval or the burden of implementation, you won't sell it unless you solve those issues.

People with business sense don't just look at the reasons why a customer buys.
They look at the reasons why they don't buy.

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Looking at a customer's wallet means looking at the source of their budget.

Looking at a customer's wallet doesn't just mean looking at their price sensitivity.

More specifically, it means looking at where that money is coming from.

Whose budget is it?
Which department's budget is it?
Is it a new budget?
Is it a replacement for an existing budget?
Will you explain it through cost reduction?
Will you explain it through increased sales?
Will you explain it through risk avoidance?
Will you explain it through labor cost reduction?
Can you explain it as a management issue?

If you don't look at this, your pricing and sales approach will be off-target.

For example, the frontline says they want it.
But they don't have the budget.

The person in charge says it's convenient.
But the decision-maker is looking at the return on investment.

It's thought to be necessary within the department.
But it has a low priority for the company as a whole.

If you proceed with business negotiations in this state, it will stop at the end.

'I think it's good.'
'However, it's difficult this term.'
'We will consider it internally.'
'We will decide based on priority.'

This is what happens.

Looking at a customer's wallet is not just about who feels the value.

Who is paying?
What budget are they paying from?
What are they comparing it to when they pay?
How will they explain it internally to pay for it?

You must look that deeply.

When customer understanding is shallow, the product becomes about internal convenience.

If you misjudge the customer, the product becomes about internal convenience.

Building features you want to build.
Putting forward values that are easy to explain.
Creating a roadmap that gets the internal team excited.
Creating materials that are easy for sales to sell.
Adding features because competitors have them.
Adding features because a customer asked for them.

At first glance, it may look like you are facing the customer.

But in reality, you may be acting based on internal convenience rather than the customer's frustrations.

It is not in the order of what the customer is truly struggling with.
It is not connected to the reason why the customer pays.
You are not looking at the operational burden after implementation.
You are not resolving the anxieties of the decision-maker.
You are not imagining the scenes where the frontline staff will use it.
You are not creating a reason for them to continue.

A product is not something you just want to build.

Which frustrations is the customer paying to resolve?
Which hassles are you reducing?
Which anxieties are you eliminating?
Which results are you connecting to?

You must work backward from there.

The shallower a company's customer understanding is, the more internal-focused their product explanations become.

However, from the customer's perspective, they do not understand why they should pay for it now.

If you miss this point, the business will struggle to grow.

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Customer frustrations appear before the reasons for cancellation.

When customers leave, there are words that come up as reasons for cancellation.

Could not master it.
Could not see the results.
Cost-effectiveness did not match.
Did not take root within the company.
Switched to another company's service.
Priority dropped.

Of course, these are important.

However, by the time you hear it as a reason for cancellation, it is often too late.
There are always signs before that.

Login frequency drops.
Inquiries decrease.
Questions stop being asked at regular meetings.
The contact person's reactions become lukewarm.
Discussions about internal deployment do not progress.
Reactions to additional proposals become sluggish.
Decision-makers stop attending meetings.
They avoid the topic of contract renewal.

Are you watching for these small changes?

Customers do not leave suddenly.
It is about whether you can pick up on the signs.

Business sense shows up here, too.

Looking only at the churn rate is too late.
You need to see the signs that the customer's enthusiasm is cooling.

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Companies that do not look at their customers will destroy themselves by chasing sales.

The ability to look at customers is not just necessary for selling.
It is also necessary for deciding which customers not to take on.

It is not the case that you should take on every customer.

The sales revenue is large.
But the support effort is heavy.

You can get the contract.
But the customization requirements increase.

The unit price is high.
But the demands are strong, and the team on the ground gets exhausted.

It becomes a track record with a famous company.
But no profit remains.

It results in short-term sales.
But support for existing customers is delayed.

If you keep taking on these kinds of customers, the company will break.

Sales will grow.
But gross profit will not remain.

The team on the ground gets exhausted.
The product loses focus.
Priorities collapse.
Support becomes burdensome.
Existing customer satisfaction drops.

Looking at customers does not mean treating every customer as equally important.

To which customers can you provide value?
With which customers will profit remain?
Which customers will continue?
Which customers will cause the company to break if you pursue them?

That is where you must look.

People with business sense distinguish between the customers who buy and the customers they should target.

When you look at the customer, the meaning of the numbers changes.

Even with the same numbers, the meaning changes when you look at the customer.

Sales are growing.

Is that revenue from ideal customers?
Is it revenue gained through discounts?
Is it revenue from accepting unreasonable demands?
Is it revenue gained from a temporary campaign?
Is it revenue from customers who will not continue?

The meaning differs depending on that.

The churn rate is low.

Is it because they truly feel the value and are continuing?
Are they just staying because switching is a hassle?
Is it just because there is time left on their contract?
Is it just because the person in charge changed and it hasn't been reviewed yet?
Is it just because they are dissatisfied but it hasn't surfaced yet?

The meaning differs depending on that.

Inquiries are increasing.

Is that a sign of growing interest?
Is it due to a lack of explanation?
Is it because the product is difficult to use?
Is it anxiety during implementation?
Is it dependence on support?

The meaning differs depending on that.
If you only look at the numbers, they can look good or bad.

When you look at the customer, you can see what those numbers actually mean.

Do not separate the numbers from the customer.
That is extremely important when looking at a business.

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Those who can imagine their customers have concrete strategies.

Those who can imagine their customers have concrete strategies.

It doesn't end with "increase sales."

Which customer's sales will you increase?
Which frustrations will you resolve?
Which budget will you take it from?
Which decision-maker will you move?
Which adoption anxieties will you eliminate?
In which usage scenarios will they feel the value?
Which customers will you not pursue?

It breaks down to this level.

It doesn't end with "reduce churn" either.

Which customers are likely to churn?
What signs are they showing?
What have they stopped finding value in?
Is it the person in charge, or the decision-maker?
Is it not being integrated into operations?
Were the expectations misaligned?
Were they customers we shouldn't have acquired in the first place?

You look at it to this extent.

Strategies that don't see the customer become abstract.

Strengthen marketing.
Increase sales staff.
Strengthen CS.
Improve the product.
Review pricing.
Redo the materials.

These are correct as words.
But it's not clear who you are targeting or what you are changing.

Those who can imagine their customers break down their strategies to the individual customer level.
That is why the business moves.

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Standards you can use tomorrow

When looking at customers, it's better not to stop at just "listening to the voice of the customer."

There are five things you should look at.

The first is customer frustration.

What are they struggling with?
What do they find troublesome?
What are they feeling anxious about?
What do they want to avoid?
What would they find valuable if it were resolved?

Look past the surface words to the underlying frustrations.

The second is the customer's wallet.

Who is paying?
Which budget is it coming from?
What is it being compared to?
How will it be explained internally?
How will the cost-effectiveness be viewed?

The person who feels the value is not necessarily the same person who pays.

The third is the reason for not buying.

Why don't they buy?
Why isn't it approved?
Why isn't the implementation progressing?
Why isn't it a priority?
Why are we losing to competitors?

Look not only at the reasons for buying, but also at the reasons for not buying.

The fourth is the reason for continuing.

Why do they keep using it?
Where do they find value?
Who is supporting it internally?
Which operations is it integrated into?
What would cause them to cancel if it were gone?

You cannot understand the true value to the customer without looking at the reasons for continuing.

The fifth is whether they are a customer you should acquire.

Is the revenue significant?
Will there be a profit?
Can the team handle it?
Will they continue?
Does it align with the product's direction?
Will acquiring them make the company stronger?
Or will it just increase revenue while destroying the company?

It is not the case that you should acquire every customer.

Looking at the customer does not mean being nice to them.

It means looking at the customer's frustrations, wallet, reasons for not buying, reasons for continuing, and whether they should be acquired.

Only by looking that closely can you use it for business decisions.

A product is not something you want to make.
If you don't look at what customers pay for and what they choose based on, your business will be misaligned.

I wrote about that in this article in the past.

「Market ④ A product is not 'something you want to make'」

Business sense is not honed by only looking at internal company circumstances.

When you look at customer frustrations, look at their wallets, and imagine the reasons why they wouldn't buy, it becomes a power you can use for decision-making.

Next time, I will write about "failure".

Sense is honed when you review decisions that missed the mark.

If this theme resonated with you even a little, I would be happy if you could give it a like or follow me.

From next time onwards, I will continue to break down business sense not as a talent, but as a set of criteria that can be honed through practical work.