How to capitalize goodwill (Real Goodwill)

If we understand as “clients” all those who we have billed and charged at least once, why not consider them as assets to be included in our company’s Real Goodwill?

But first, let's define a company’s traditional goodwill.

Investopedia tells us:

“Goodwill is an intangible asset associated with the purchase of one company by another. Specifically, goodwill is recorded in a situation in which the purchase price is higher than the sum of the fair value of all identifiable tangible and intangible assets purchased in the acquisition and the liabilities assumed in the process. The value of a company’s brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology represent some examples of goodwill.”

But let’s get to the practical part and see how this affects companies like ours:

For the families of business owners, in addition to everything indicated in the previous definition and which we understand as intangible (brand, efficiency, prestige, organization, etc.), goodwill also includes the clients for whom we have worked. However, Real Goodwill includes the client we can rely on again (repeat collaborations, billing, and payments) and whom we must find a way to “move” again as we work side by side with the business owner to get maximum benefit from the shared knowledge we created.

REPETITION is the secret to making a company’s Real Goodwill profitable: repeat clients, clients that stay. This simple fact converts goodwill into Real Goodwill, at the same time that it increases the intangible and traditional goodwill we are all familiar with.

To maintain client interest, we must be by their side, growing with them throughout the different stages of their evolution, getting them to repeat their purchase activity. To achieve this, we must be proactive, innovative, interesting, and be there at the right moment (in this day and age, that means “always”).

For business families that sell products, new technologies are a very useful tool for reminding customers (and potential customers) of our business or product. Some of these new tools can provide support with client proximity (newsletters, sector news, specialized articles, statistical data, promotions, reviews, social network actions, etc.).

In the case of business families providing services, as many services are intangible (without a product or any clear, immediate proof of the result of the purchase), we must accompany people—be by their side, get them to see that we know what their needs are, that they can rely on someone to help them professionally: accompanying people is the only way to work in order to turn a client into Real Goodwill.

Betting on technology in order to be proactive when conducting client follow-up will not only help us respond to what has happened, but will also predict what will happen, thus minimizing future risks and offering that which is most likely to interest the client. Some examples:

• Cookies? Does that ring a bell?
• I just searched for a product online and suddenly I am seeing advertisements for that and similar products.
• I make a supermarket purchase and they offer promotions on things I’ve bought on other occasions.
• I check out a hotel, restaurant, trip, car, etc. on a social network, and on all the other networks I see similar ads.

We could give tons of examples like this... But where is the limit? Where is the line between “privacy protection” and the massive use of data to improve our experiences?

And what happens with service companies like insurance providers, schools, and consultancies (investment, finance, information technology, corporate strategy)—companies where the results of what is offered are not immediate and are subject to interpretation? These companies must also capitalize their goodwill and convert it into Real Goodwill; for this, in addition to using technology, they must be “glued” to the client, so the client feels that they can call on that company at any time with a doubt and/or problem.

Easy access to and use of technology are vital for these clients to feel the company “stuck” to them; this way, companies can monitor client activity to help them find the answers to what happened in the past and make progress on future decisions and actions, which will make these companies more reliable and profitable. But to get to the heart of the matter: this cannot be separated from professional accompaniment, providing value and experience, teaching problem-solving, being proactive, and making it obvious that evolution has been ongoing since the beginning of the relationship (the first purchase action). For this, we must mark certain indicators (sales, annual rates, margins, unit costs, clients, productivity, shortfall, etc.).

Feeling accompanied will lead the client to a sense of security and, if this is successful, we will be the first in the client’s mind in the face of new needs (which they identify themselves or which we help them identify): we will be the first ones they call on.

If we are able to “help identify their needs,” we will convert our clients into Real Goodwill.

Let's summarize how to capitalize goodwill:

1. Repetition, the key to make goodwill Real.
2. We help our clients identify their needs. We are close to them, both physically and virtually.
3. Easy, accessible technology is a tool that will help us achieve Real Goodwill.