Category — What Customers Want

People often used demographics when describing their customers: some will add a lifestage view (25 - 35 years with children), some may add a value (people who aspire to healthy living), and some may add a lifestyle (sportsmen). But few use all three to describe the context of their customers’ lives. Yet, it is in this context that ‘unique selling propositions’ are to be found. Additionally, as a 2007 report by McKinsey found, not understanding this context is creating a trust gap between consumers and organizations.

Pigeonholing consumers into lifestage as a start, is a pretty reasonable gauge for needs: Shakespeare’s ‘seven ages of man’ still elicits wry smiles, whatever our age. But today’s ‘lover sighing like furnace’ is more likely to check his mistresses views on climate change before texting his ballad. For each generation has life shaping values, and astute companies must monitor these to guide their value propositions.

As the world enters a new economic stage, how are trends in cultural values playing out with different generational lifestages?

How are the ‘freedom protesting’ baby boomers approaching their retirement, will they differ from today’s austerity pensioners? How are generation Y coping with their mobile lives, and are emerging teenagers ‘hoodies’ or ‘greens’?

To start with differentiate between lifestage, values and lifestyle – all of which drive customer behaviour.

1. Lifestage – is based on demographics (age, and family situation). Young families naturally have different needs to young singles, empty nesters from older families.
2. Values – are what people aspire to and spring from two sources, upbringing and culture. Generational values are laid down in formative years and shape our life view, even as cultural values shift. For instance, how does the 60s generation react to the green values of today’s culture, and does this differ to the 80s generation?
3. Lifestyle – the way people actually behave given their environment.

For the report Bridging the Trust Gap which looks at how values are affecting different lifestages resulting in various lifestyles, click here.

If you are in the IT market, software, hardware, or service provider, then word of mouth is hugely important to getting that invitation to go and talk to prospective clients. As well as using the internet to research options, companies also use their peers, and analysts as a source of recommendation. Good relationships with analyst companies such as Gartner, Forrester and Ovum are as valuable to IT organizations as sales to customers; they will help shape your strategic marketing, R&D and go to market plan. But too many companies see an analyst briefing in the same vein as a media interview - and make the mistake of using the same techniques.

When doing an analyst briefing here are some key points to remember:-

• Choose the key analysts in your field who influence the markets you want to reach. This is not necessarily the top analysts at the top firms. Grade them into gold and silver relationships - gold are close strategic relationships, silver are ‘good terms’ relationships.

• Understand the analyst’s field of interest and their research agenda. The more you can help them with their research, the deeper will be your engagement with them. When you talk about what your technology/service does, give case studies and stories about your implementations.

• Bear in mind that an analyst is looking for knowledge, a supportive network, and fame in their sphere of influence. If you can help them, they will help you. Your briefing is a dialogue, not a dump of your brochure and sales presentations. Send those out beforehand as background material.

• In a good analyst relationship there will always be some give and take by way of reciprocal information; and even in a fledgling relationship you will glean a lot about the market direction by listening carefully to the questions. Analysts will trial out market hypothesis on you. It is these ’stalking horses’ that shape markets. If your strategy is in line, it will be better for you.

• A journalist is looking for a ‘700 word story’ for the next deadline. An analyst is looking to write a report that will shape markets and have some longevity, plus have the information to offer clients best advice on who should be on their shortlist.

Analysts like to have good relationships with experts in companies; working together will move markets. To help companies develop their analyst briefing skills we have been asked by clients to develop a coaching service. We are now delighted to say we are now ‘open for business’.

This time last year the ‘plastic bag’ movement was getting into full swing. Now, the hype is passing. Going green hit a high last season; now economic pressures have taken over. A new report by Ernst and Young suggests that as food prices rise, higher priced organic food will be shunned; whilst higher fuel prices show that giving up ‘combustion engine’ transport is neither popular or viable. Meanwhile the evidence on climate change is looking less and less consensual.

But that does not mean that organizations can go back to business as usual. There is seldom hype without good cause; a butterfly has fluttered its wings and changes are in motion.

The problem with greenwash is that it has been a bullying, hypocritical, bandwagon. Live Aid wrist bands were worn more as a ‘personality’ fashion statement, than out of a real passion to help Africa sort out it’s structural issues. But underneath it all there is still a need to think about our environment - just look at the state of China. There is still a need to save resources - Freecycle is a popular movement. There is still a need for companies to help combat social issues - obesity is real, and food education badly needed.

So, in your research find out both the ethical concerns and the everyday problems of your customers, and build your proposition accordingly - but be informative and be honest. There are still good ’solid’ reasons for people to buy organic food from local producers, cut down on plastic bag use, and walk more - it will save them money, declutter their houses, and help them lead healthier, longer lives. There are also major market segments very interested in doing something real to help others, and companies like outdoor clothing company Patagonia, provide an excellent service in raising awareness of global social and environmental issues.

Personal social responsibility never was and never will be hype.

‘Google’ a company name and customer service and you will get a good view of their customers’ experiences - especially if it is poor. Customers can also use ‘word of mouth’ sites to discuss and review experiences eg epinions, tripadvisor, and ciao!. These can all be helpful to potential customers, but the downside is that reviews may not be genuine - trolls and vested interests are not always apparent - and ‘one mans meat, can definately be another mans poison’ - in other words are the customers ‘like you’.

On very few of these occasions does the company have a means of reply (Tripadvisor does), and of course any good conversation is two way; and thus more valuable. Which is why I am interested in the development of Plebble, a site for rating the service and value for money for any organization from The Labour Party to your local butcher. With the added advantage that the company has the ‘right of reply’. The reply being posted on site, and the reviewer being notified by Plebble.

The idea is to get companies and customers talking. For customers they can see both how the company is rated, but also how it deals with complaints and compliments. For the company they get customer feedback, a benchmark of how they do against other companies, and the right to respond, so demonstrating their ‘customer care’.

A good initiative I will be following, and using, with interest.