In almost any business, one of the best ways to achieve a competitive advantage in the marketplace is to have a better understanding of the wants and needs of customers then your competition.

But how? While customer surveys, focus groups and such all have their place in market research, a deeper understanding often comes from a very basic activity – talking and listening to your customers.

Dialogue is at the heart of any enduring relationship. In fact, the health of a relationship can often be measured by the quality of dialogue.

What is dialogue?
Dialogue, according to one-to-one marketing gurus Don Pepper and Martha Rogers, is a mutually beneficial two-way exchange of information. For example, a customer may share their thoughts or information if you offer something of value, such as advice or entertainment.

Communication has value
One of the best ways you can let your customers know they are special is to communicate with them frequently. This type of communication, though, never sells but instead asks opinions or offers information of value to the customer.

Your goal is to make every contact with your customers a learning experience for you – whether it's learning about your customers' needs, desires or opinions.

Strategies for success
Establishing a dialogue with customers requires strategy, skill and innovation. In each business it calls for different tactics.

Ultimately, though, the goals are the same for any business desiring a true dialogue with its customers – to make customers feel they are known, appreciated, welcome and more important than others.

Do this and customers will trust you and share information they'd tell only to a true friend.

From dialogue to dollars
Meaningful dialogue with customers will ultimately show up in your bottom line through:

• improved customer retention
• improved spending rates
• improved referral rates
• reduced marketing costs
• reduced direct costs
• and more