Albad's Theorem

Albad's theorem refers to: the success of a business depends on the extent to which it understands the requirements of customers. Seeing the needs of others, you are half succeeded; meeting the needs of others, you succeed all. This theorem was put forward by Polga Veres Albad, a consultant of Hungary Total Quality Management International.
Understanding, demand, belief and satisfaction are the four elements of customer procurement. When these four elements are available, it means that customers will purchase. To understand and control the needs of customers in an all-round way is to advocate a customer-oriented production and marketing model. The so-called customer-oriented production and marketing model means that the production and sales activities closely revolve around the four elements of customer procurement, rather than just based on a certain element, so that customer requirements can be fully met. Gain an advantage in the competition.

The basic customer needs can be roughly summarized as follows: popular needs; timely service needs; comfortable needs; orderly service needs; understood needs; helped needs; valued needs; praised needs; Needs to be identified or remembered; Needs to be respected; Needs to be trusted; Needs for security and privacy.

case analysis：In 1983, at the University of Texas in Austin, USA, there was a 17-year-old student named Dell who studied medicine. He liked computers very much. After a while, he decided to make money with computers. Dell bought some old computers, then upgraded the computers and sold them to classmates and professors. This old computer upgrade "business" made him earn $50,000 in the first year. Dell felt that his career was about to begin, so he decided to take a break from school and start a business.

　　 The secret of Dell's success is to be customer-oriented, which is to implement a production and marketing strategy that covers all aspects of customer purchase factors. The production and sales staff will provide what kind of products the customers have. For the manufacturer, it is "production based on sales".

　　 When Dell started the company in the early days, it broke through the traditional "4P" model. Dell said: The needs of each consumer are different: students may have less money and need less memory; professors are relatively rich, and he may need more memory, so customers should produce what they need.

Let's take a look at how Dell meets customer needs:

　　 First, it broke through the previous concept of lowering prices through mass production, and proposed customizing products according to customer needs.

　　 The second is that although there are benefits through distribution channels, products can be widely distributed, but agents must make money, and product prices will increase accordingly. If direct sales are adopted, consumers will be willing to buy directly from them, rather than from distributors, because the products are cheap and can receive direct services. Abandon the agents, directly sell, and create value for consumers.

　　The third is to provide door-to-door service directly to customers. In the past, Dell did this when he was in college. The customer called him if he had a problem, and he immediately repaired it without sending the computer. Provide door-to-door service to solve customer maintenance problems.