Proximity to customers promotes business
Country Manager - Regus Sri Lanka,
Dr. Nirmal de Silva
As the popular saying goes, 'Location is everything' and the latest
research carried out by Regus, the global workplace provider, has
highlighted the importance of physical proximity to customers for
businesses. The findings show that locations closer to customers bring
bumper benefits ranging from increased visibility to more sales.
A study, canvassing over 44,000 people from more than 100 countries,
reveals that operating out of locations closer to customers helps firms
resolve issues faster (74%) while 71% say customer proximity improves
customer satisfaction and retention rates. In Sri Lanka, where Colombo
is known to be the main business hub, the same rules apply. Given the
challenges posed by increased vehicular congestion due to the morning
rush hour, afternoon school traffic and evening rush hour, customers
have a tendency to prefer to work with businesses that are closer to
About 63% of respondents believe that firms with local offices
understand customers and markets better as they are steeped in the local
culture and, therefore, have a better grasp of the intricacies of the
market. Being in the same area as potential customers improves market
knowledge as specific local information can be used for product
development and more effective marketing. Setting up in locations closer
to customers or prospects can bring significant benefits to both
businesses and customers. For instance, firms can respond faster when
there is a problem, and get it resolved immediately.
Improved customer care leads to happier customers and better
retention rates. By setting up locations closer to customers, firms not
only increase visibility, but also gain a clearer view of their markets.
A deeper understanding of the local environment can also lead to
improved marketing effectiveness. Businesses can also benefit when it
comes to staff recruitment. Branching out can also help widen the talent
pool as businesses will attract staff in different areas and, therefore,
capitalise on their knowledge and experience.