An entrepreneur like Paul Herdsman learns as he continues to invest in the future and prepare for the many events that are bound to take place. He is the Chief Operating Officer of NICE Global.
NICE Global is part of an all-star team dedicated to ensuring that its clients are monetizing their online traffic and getting the highest return on their marketing spend. Paul Herdsman also Co-Founded ATS Digital in February 2014 and used to be its Chief Operating Officer.
Paul Herdsman is a multifaceted businessman, and has a very successful portfolio encompassing a multitude of business skills. His career has been focused around customer satisfaction and he has honed his skills in areas such as customer acquisition, customer retention, business development and growth, marketing and sales growth, and operational execution.
Paul Herdsman attributes much of his success to word of mouth as he knows that satisfied customers are the best marketing tool any business can attain.
In the article, “Lessons from Entrepreneur Paul Herdsman”, Herdsman gives six lessons: create culture, invest in the players, reward employees for performing well, understand everyone’s position, find the best people, solve a problem for clients.
One of the key aspects of a business that he has realized over time is that aspect of customer captivity. This aspect is needed and is important to a business because it means that the customer doesn’t want to or cannot switch from the service or product that a certain market player is providing.
If it is hard for the customer to switch from one company to a new one, then the current company will have certainty that they are likely to continue to capture the same amount of cash flows in the future as well. In addition to the certainty of cash flows because of the difficulty to switch, new companies that may want to enter the market are not able to do so in an effective manner because of the difficulty in reaching out and converting customers.
Customers will stick with a certain company in the marketplace because they really love the product and don’t want to switch to another product. The customer will not want to take on search costs and do the deep work needed to switch their routines, they want to keep things the same and make certain they are able to keep their current quality of life.
One other strong and compelling case is that of habit, as customers are used to a particular habit it can hard to move on to another option within the marketplace. They might find that they have to change their habits and take on additional costs for no real compelling reason.
This is present for companies such as dentistry locations or even larger corporations who choose a particular product. Once they switch, they have to commit, they don’t want to waste a lot of time trying to figure out new products that are crucial to their workplace on a regular basis. They need to focus on productivity maximization. As such, they will form habits and protocols around the new product and will find that they need to stick with it for a longer time frame to reap the investment made into it. As such, investors need to realize that it is these situations that can be best.
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