In my previous articles, I posed two questions: Where Are You Headed and Who Are Your Customers? I stated that if you wanted to succeed in business (and in life) you needed more than just vision and mission statements or inspired thoughts and inspired dreams. You need to act, and you need to do that with the help of clearly articulated goals and well-defined strategies. Importantly though, you also need to be cognisant that those goals and strategies are embraced and supported by a culture made up of values and beliefs. I also argued that from a strategic point of view, you needed to know who your customers were if you wanted to grow your business, achieve your mission, and realise your dream?
Now that you have set your course and determined who your customers are, I want you to consider two key aspects relating to consumers, which will help you to get in tune with your customers? The first is the Consumer Sovereignty Test and the second is Consumer Buying Behaviour.
Consumer Sovereignty Test
The consumer sovereignty test recognises the power of consumers to determine what goods and services are produced. The theory suggests that consumers, not producers, are the best judge of what products benefit them the most. Due to the fact that consumer markets depend so heavily on demand, producers must monitor the needs of these individuals if they want their products to have any chance of success.[1]
Now that you know who your customers are, apply the customer sovereignty test[2] to each component of your customer model. This may provide answers to questions about your current situation and thereby help you get in tune with your customers. For example, what do you need to do to ensure that your customers continue to have confidence in your business and demonstrate this with their ongoing support? Also, will emerging funding constraints cause your customers or potential customers to consider cheaper products and services? And, assuming that you have included your people (staff) in your customer model, how do they rate their employment opportunities?
As society moves forward along the Marketing Ethics Continuum,[3] your obligations to all of your customers must also advance. Implementation of a customer model, as detailed in my previous article, will assist you to meet the challenges ahead. However, reputation management is also important. Crucially, high standards of ethical and professional behaviour should be expected from you and all of your people. This will be important for image protection and for projecting a positive image in your community as you go about building your brand awareness.
Get to know your customers, build your relationship with them, and learn about what products will benefit them most?
Consumer Buying Behaviour
Consumer buying behaviour can be defined as ‘behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products, services and ideas that they expect will satisfy their needs’.[4] Customers make purchase decisions habitually; they make strong brand loyalty and repeat purchase decisions.[5] Importantly, they make decisions based on the trust that they have developed in their relationship with you.
If you want to get in tune with your customers you must implement strategies that satisfy their needs.
Factors influencing consumer buying behaviour
There are many factors that influence a consumer’s decision to purchase a product or service. The following external and internal factors may have some relevance to your business:
Learning. Consumers learn from their experience in the marketplace through stimulus, drive, response and reinforcement.[6] Potential customers can be stimulated by cleverly crafted marketing campaigns that highlight the benefits of your products and services. Other than one to one dialogue with your customers, a direct mail campaign is the most effective way in which to engage your external customers, with response rate that significantly outperform social media and email campaigns,
Employ a mix of marketing strategies; but don't neglect traditional marketing tools such as unaddressed mail and, more importantly, direct mail.
Attitudes. Attitude models are used to study purchasing behaviour and can be formed by beliefs and characteristics of a particular brand.[7]
Build your brand loyalty by making attractive offers and rewards to current customers.
Reference groups. Consumer actions are frequently influenced by those around them. Cultural background, social class, and values and beliefs are transmitted to us through reference groups: family, friends, and workmates. Social surroundings[8] also have a significant impact on consumer behaviour and, in particular, people (one of the three customer groups mentioned in my previous article). Educating the internal audience (your people) about all aspects their employment conditions, not just the negative ones, may help to engineer a positive work environment.
Provide workplace flexibility arrangements and do things that fulfil the belonging needs of your people. Make them want to stay with you!
In summary, get to know your customers, build your relationship with them, learn about what products will benefit them most and, importantly, implement strategies that satisfy their needs. You can do this by employing a mix of marketing strategies, making attractive offers and rewards, and if your people are part of your customer model, providing workplace flexibility arrangements and doing things that fulfil the belonging needs of your people.
[1] http://www.businessdictionary.com/definition/consumer-sovereignty.html
[2] Craig Smith, N. (1995) ‘Marketing strategies for the ethics era’, Sloan Management Review, Summer, pp. 91-93.)
[3] ibid, p. 89.
[4] Queensland University of Technology GSN408 (2000) Study Guide, p 132.
[5] Neal, Quester & Hawkins (2002) Consumer Behaviour: Implications for Marketing Strategy, 3rd Ed., McGraw-Hill, Australia, pp. 54-55.
[6] McColl-Kennedy, J.R. & Kiel, G.C. (2000) Marketing: A Strategic Approach, Melbourne: Nelson ITP, p. 102.
[7] ibid, p. 103.
[8] Neal, et.al., op.cit., p. 38.
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