On a sweltering April day in 2004, near the intersection of West Commercial Blvd and 441 in Fort Lauderdale FL, I interviewed with the founders of ABB Optical Group. We sat in an empty, dimly lit, Thai restaurant while Angel Alvarez, CEO sketched the strategy and planned trajectory of the company on the back of a napkin, next to a circular iced tea stain.
Angel described the current status of this small contact lens distributor – $80M in sales and planning to grow exponentially! Then, in between bites of food, he started to share some of his secret sauce for growth.
“At ABB, we not only seek to take care of our direct customers – the Eyecare Practitioners, we support them to take care of their Patients too.” He said.
“When we provide the contact lens service and tools that our customers need, we help them to maintain and grow the number of patients they serve.” Angel added.
“So knowing your customer’s customer is an essential part of your growth and the Eyecare Practitioners’ growth.” I summarized.
“Roger that.” Was his reply as he wiped Pad Thai off of his white shirt.
Within a few weeks, I joined ABB. In 2007, we greatly expanded our ability to ship contact lens orders directly to patient homes or offices. Our Eyecare Practitioner (ECP) customers were getting pressure from on-line contact lens sellers. So, we created a direct shipping service so that ECPs could provide the same convenient delivery service to their patients, eliminating the need to order online. This is an example of taking care of the customers’ customer.
By 2009, I was promoted to Chief Operating Officer, growing the team and business infrastructure supporting ABB efforts. In the time period from 2004 to 2016, our sales rocketed forward by 14x and profits by over 30x. More importantly, ABB grew to serve over 25,000 Eye Care Practitioners in the US, and shipped directly to over three million patients per year on behalf of those doctors.
Today, knowing your customer’s customer has never been more important. I’ve heard many discussions during this Coronavirus time starting with “How are your customers doing?”.
While that’s a good question, it does not drive deep enough. A better question would be “How are your customers’ customers doing?” When you and I know how our customers’ customers are doing, we can anticipate growth or decline over a longer period. That longer view will support you and I to create better plans for our own businesses.
For instance, one of my clients is an online optical company. Like a lot of e-commerce companies, their sales have increased considerably in the last two months.
Will this growth continue, and create opportunities for my company to support their growth? I don’t know just looking at their recent results. I won’t know meaningful information until I look to the next customer, those consumers purchasing the products online. Diving deeper, I ask:
- How is the product sales mix changing?
- What’s driving this change in consumer purchasing, and will it continue?
- How might this trend continue for my client once the lockdown eases a bit?
- Does my client have business constraints such as availability of inventory to consider?
- What investments are necessary now to ensure success a few months from now?
When these questions are answered, we begin to have information that supports us to shape a plan for the remainder of 2020 and into 2021. Amazing how a discussion over Thai food sixteen years ago resulted in a business concept that helps me today with a virus pandemic. Thanks for the insight, Mr. Alvarez.
How are your customers’ customers doing during this pandemic?
Please share with me what you’re finding. I look forward to your comments.
Stay healthy and safe.
Jeff@COOForYou.com
888-588-0357