Knowing your customer isn’t easy
By David Parker
January 05, 2009
If you’re involved in a value chain or are direct marketing to consumers, you’ve probably been told to target a specific niche and really understand what those potential customers value.
It’s good advice, but being customer focused is a lot harder than you might think.
Ask your average consumer what determines their food purchases, and you’ll likely hear a lot of talk about taste and quality. But the truth is most people will trade taste for ‘easy’ any day.
Take a look at best-selling food products. You can’t tell me that Kraft Dinner tastes anywhere close to homemade macaroni and cheese – or at least not like my mom’s – or that people view it as a highly nutritious meal.
But it sure is convenient – easy to make and it’s available everywhere.
Convenience is part of a product’s value. And if your product isn’t available at the big grocery store chains, can’t sit on a shelf or in a freezer for months, or requires something more than a pot of boiling water or a microwave to make, then it’s convenience score is probably pretty low.
The truth is hard to see
Most people in value chains or direct marketing tend ignore those sorts of things. They’re enamored of their product because it’s organic or it’s handmade or it’s premium quality. They just know people will love it as much as they do.
The truth is usually different. Your customers appreciate those qualities but there are other things they value too. The list will vary but it’ll likely have several items on it. Labeling, presentation, price, portion sizes, and hours of operation at the nearest store selling it will likely all be part of the equation.
Knowing what your customers value is a powerful tool because it allows you to ask three critical questions. What are you currently doing that delivers value? What else should you be doing? And what do you need to do differently?
Developing a customer focus takes a lot of time and effort. But in a tough and crowded marketplace, it’s something you don’t want to be without.
For CBC commentary, I’m David Parker, a founding partner in ABG Inc., a global training and business consulting firm in Indianapolis, Indiana.
