Tuesday, December 21, 2010

TAMING THE VIGILANTE CONSUMER - WHAT DO THEY REALLY WANT?

Today's consumers can sometimes look like a threatening mob. They're often unhappy, make vague or irrational demands, and can rush in unexpected directions that strongly affect our livelihoods. They may suddenly take their business elsewhere or bombard us with timeconsuming, expensive complaints. Even both.

"These people are manipulating the marketplace through pressure, protest, and politics," says futurist Faith Popcorn who coined the term "vigilante consumers."

Why have our customers become so volatile and unpredictable? The answer is simple. In the old days, conventional marketing divided prospective consumers into two categories, the classes and the masses. If you're selling $100,000 cars you appeal to the classes, and if you you're selling Hyundai's, you appeal to the masses.

Then along came retailers like Walmart who combined good buys with good customer service. "Now the masses know class," says Popcorn. But these vigilante consumers are rarely as dangerous as they sound. Their wants are simple: just value, service, convenience, choice, and lots of attention.

Impossible, you say? Quite the contrary. This is a great time to be alive and in business. Armed with facts, drive, and an open mind, we can begin planning strategies that will bring us challenge, fun--and profit.


1. FIND OUT WHAT YOUR CUSTOMERS REALLY WANT.
In a shuttle bus taking me to the airport after a speaking engagement, I began schmoozing with the driver. (I'm always looking for new material.) Knowing his service was not affiliated with any of the resorts, I asked if the guests he drove told him about their experiences at the various hotels. "Yes," he said. "In fact, the general manager of the property where you were staying brings a big box of donuts and has coffee with our drivers once a month. We not only tell him everything we hear about his property, we tell him everything we hear about his competitors."

How many businesses have spent a fortune with research firms to find out what this resourceful general manager gets for a box of donuts and an hour's conversation every month!

The most frequently overlooked low-tech customer survey method is to talk to someone who talks to your customers and has no vested interest in their opinions. But this doesn't mean you don't also interview them formally.

According to David Garfinkel, a copy writing genius, there are five important answers you need to get from your customers, directly or indirectly.
  • What do you like about buying from us?
  • Why did you buy from us in the first place?
  • What problems did you have before you bought from us?
  • How did we help you solve those problems?
  • How are things better for you now?

"That last answer," he says, "is very important. It's what a positive result looks like to a real customer, and it's going to look the same to your other customers and prospects when you tell them about it."


2. MAKE YOUR CUSTOMERS FEEL SPECIAL AND APPRECIATED.
Great customer service is no longer good enough. We have to exceed the vigilante consumers' expectations. One individual who knew this before anyone else is Gary Richter. He runs a small boutique bank in Naples, Florida. At 5:20 one Friday afternoon, the bank received a call from an elderly woman who needed to cash a $200 check. The bank closed at 5:30, and she was 20 minutes away. Many of us would say, "Of course, please come over, we'll stay open for you." But Gary's bank believes in giving exceptional service. One of their employees delivered her $200 on his way home and picked up her endorsed check.

It turned out that the woman had her extensive financial holdings at a large national bank. After this positive experience with Gary's bank, she moved all her assets and investments to his bank.

Gary's bank continues to focus on superior customer service. "I tell my employees, if we roll out the red carpet for a billionaire, they won't even notice. If we role it out for millionaires, they expect it. If we roll out the red carpet for thousandaires, they appreciate it. And if we roll out the red carpet for hundredaires, they tell everybody they know." And you can take that to the bank. In the first six years since the bank opened, it grew from 16 to 180 employees and from $6 million in assets to $330 million.


3. BUILD RELATIONSHIPS WITH YOUR CUSTOMERS.
There are really only two types of customers: those who already know and love you and those who never heard of you. All businesses spend money trying to get new customers, but money spent keeping current customers does double duty. Pamper them, keep in touch with them, acknowledge their needs. It's cheaper and more effective than getting new ones. Remember, an unhappy former customer will talk about you and cost you business. A happy current customer will talk about you and get you new business. People want to do business with people who appreciate them and look out for them.

No one ever lost customers by treating them with appreciation, consideration, and integrity. It is NOT your customer's job to know how you can serve them. It is our job to give them options and choices.

Source: Patricia Fripp is an executive speech coach, sales presentation trainer and keynote speaker.

Sign-A-Rama - Kearny Mesa in San Diego
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