How to understand your customers

Buyer orientation - understanding and satisfying your customers - is essential for commercial success. This guide explains how small companies can profit from understanding their customers.

Understanding one's customers is so important that large corporations spend hundreds of millions annually on market research. Although such formal research is important, a small firm can usually avoid this expense. Typically, the owner or manager of a small concern knows the customers personally. From this foundation, understanding of your customers can be built by a systematic effort. A comprehensive system for understanding is what Rudyard Kipling called his six honest serving men. "Their names are What and Why and When and How and Where and Who."

What

A seller characterizes what customers are buying as goods and services - toothpaste, drills, video games. cars. . . But understanding of buyers starts with the realization that they purchase benefits as well as products. Consumers don't select toothpaste. Instead. some will pay for a decay preventive. Some seek pleasant taste. Others want bright teeth. Or perhaps any formula at a bargain price will do.

Similarly, industrial purchasing agents are not really interested in drills. They want holes. They insist on quality appropriate for their purposes, reliable delivery when needed, safe operation, and reasonable prices.

Video games are fun. They are bought for home entertainment, family togetherness, development of personal dexterity, introduction to computers, among other satisfactions. Commercial customers include arcades, pizza parlors, and assorted enterprises. They benefit from a potential source of income, a means of attracting buyers to their premises, or perhaps a competitive move.

Similarly, cars are visible evidence of a person's wealth, reflection of life style, a private cabin for romance. Or they represent receipts from leases, means to pursue an occupation. . . Some people even buy cars for transportation.

You must find out, from their point of view, what customers are buying. The common names of products mean as little to them as the chemical names on the label of a proprietary drug. (A sick person's real need is safe. speedy relief.) Understanding your customers enables you to profit by providing what buyers seeks - satisfaction.

Products change, but basic benefits like personal hygiene, attractiveness, safety, entertainment, and privacy endure. So do commercial purposes such as quests for competitive superiority or profitability.

Successful manufacturers and service establishments produce benefits for which customers are willing to pay. Successful wholesalers and retailers select offerings of such demanded benefits that they can resell at a profit. Successful businesspeople, in other words. understand the reason for their customers' buying decisions. 

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How to take advantage of a market switch

When groups of consumers move from one type of product to another on a long-term basis, new business opportunities can result. Market switches create demands for new products and services.

Some Examples

The switch from traditional styles of children's bicycles to BMX bikes provided an opportunity for a bicycle shop to establish a BMX racing club and racing track. This racing involvement helped the shop to capture a large share of the BMX market.

A business woman took advantage of the market switch from record albums to cassette tapes by packaging cassette recorder-head cleaning kit.

To take advantage of the market switch from large to small cars, a company designed and manufactured bicycle and ski racks designed for small cars.

An office machine repair service anticipated the market switch from typewriters to word processors and began to specialize in repairing word processing equipment.

How To Do It

Discover major changes in consumer buying habits by:

·         reading marketing research reports and trade association research forecasts;

·         observing current fads that could potentially turn into long-term changes;

·         observing new products that are growing in popularity;- and

·         analyzing changes in your own buying habits, especially when you stop purchasing an item that has become obsolete and begin to buy replacement items with entirely different characteristics.

Find products which are associated with a market switch by:

·         analyzing the advantage of new products to find those which are greatly superior and will likely replace more traditional items; and

·         looking for new technologies or new products based on new concepts which are revolutionary for an industry.

Look for a major product or service that is needed to meet changing consumer demand, but has not yet been provided, and find a way to provide it.

When the major product in the market switch already exists, look for related services or products that can be used in association with the major product.

Ensure that there is a demand for the product/service you would like to provide.

Key Questions

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How to Set (and Get) the Right Prices

                                                                                                                            

Which feature of your product does EVERY buyer ask about? Which sales tool is your best closing device? Which feature immediately differentiates you from your competitors? You guessed it, your price.

Yet, I’m always a bit surprised at how little time businesses spend on their pricing. Since this is a key marketing variable for any small business owner, here are some thoughts on setting (and getting) the right prices.

Price is a promise

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Deciding on an Advertising Medium

A wise man once said, "The person who saves money by not advertising is like the man who stops the clock to save time." In today's fast-paced, high-tech age, businesses have to use some form of advertising to make prospects aware of their products and services.

Even a famous company like Coca-Cola continually spends money on advertising to support recognition of their products. Last year Coca-Cola spent more than $150 million to keep its name in the forefront of the public's eye. So the question isn't whether or not you can afford to advertise, you simply must if you want your business to succeed.

Some questions you should consider before buying ads are:

1.     What media is the best to use?

2.     How important is creativity?

3.     Is there a way to buy space and time that will stretch my advertising budget?

When it comes to advertising, a lot of people really don't know what they want, where to get it or what to do with it after they have it. This guide will help you learn to determine what type of advertising media is best for you, and learn to identify guidelines you can use to obtain the advertising exposure you need. It will help you identify ways to make your advertising more cost efficient.

Advertising is an investment in your business's future. And like any investment, it's important to find out as much as you can before you make a decision. You'll be able to use this guide as a reliable reference tool often in the months and years to come.

Newspaper Advertising 

Every advertising medium has characteristics that give it natural advantages and limitations. As you look through your newspaper(s), you'll notice some businesses that advertise regularly. Observe who they are and how they advertise their products and services. More than likely, their advertising investment is working if it's selling!

Some Advantages in Newspaper Advertising

Almost every home receives a newspaper, either by newsstand or home delivery. Reading the newspaper is a habit for most families. And, there is something for everybody: sports, comics, crosswords, news, classifieds, etc. You can reach certain types of people by placing your ad in different sections of the paper. People expect advertising in the newspaper. In fact, many people buy the paper just to read the ads from the supermarket, movies or department stores.

Unlike advertising on TV and radio, advertising in the newspaper can be examined at your leisure. A newspaper ad can contain details, such as prices and telephone numbers or coupons.

There are many advantages to advertising in the newspaper. From the advertiser's point-of-view, newspaper advertising can be convenient because production changes can be made quickly, if necessary, and you can often insert a new advertisement on short notice. Another advantage is the large variety of ad sizes newspaper advertising offers. Even though you may not have a lot of money in your budget, you can still place a series of small ads, without making a sacrifice.

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Marketing in the Downtimes

Ask most business owners how they market in the downtimes and their answer is short and succinct: they don't.
But while financial belt-tightening may be the order of the day during economic downturns, marketing shouldn't be one of the projects that is put off until 'times get better.' By adopting guerrilla marketing tactics, you can keep your business name in the forefront without spending a small fortune.


Here are five ideas for marketing when business is slow:


Tactic #1: Customer Comments


When was the last time you solicited comments from your customers? If you haven't done it in the past six months, you're overdue. Develop a one-page self-mailer questionnaire with simple check boxes and a few lines for additional comments.


Consider the following questions: What do you like most about our company? How can we improve our service to you? Are there additional products or services we could offer? Encourage responses by holding a drawing on a specified date and rewarding the winner with a company gift certificate or other award. And always thank them for their input.

 B W C. For CONSULTANCY 

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New Markets for New Technologies

 Technology -- A process, technique, or methodology -- embodied in a product design or in manufacturing/service -- which transforms inputs of labor, capital, information, material, and energy into outputs of greater value.

  Technology Change -- A change in one or more of the inputs, processes, techniques, or methodologies that improves the measured levels of performance of a product or process.

  Many growth phenomena in nature show an “S” shaped pattern -- Any single technical approach is limited in its ultimate performance by chemical and physical laws that establish the maximum performance that can be obtained using a given principle of operation.

  Technological Strategies

  Overall Cost Leadership

  Overall Differentiation

  Focus.

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First Impressions are Last Thing a Company Wants to Forget

It's all about first impression -- government and business -- both making them and responding to them. In critical situations, everyone's antennas are up, super sensitive to even the most inconsequential signal. We seem convinced that almost everything rides on making a correct first impression: "Did we put our best foot forward?" "The first meeting is always pivotal. How did we do?" "What can we do to make it more impressive?"
Why all the concern with first impressions? Why do we believe that the first contact makes a difference? Is it true that no one gets a second chance at making a first impression or is that just popular business lore?
In some ways, it is difficult to understand why we place so much importance on first impressions. It isn't only making them that gets our attention, of course. It's reading them, as well. Armed with extremely limited information, we often come to conclusions that are instantly indelible. If we know such conclusions may be questionable, why do we persist in making snap judgments that are virtually impossible to change?
The answer is simple. First impressions work. They reduce anxiety and allow us to move through the day with less stress. Walk into an auto dealership to look at a car and you are immediately turned off by a 'pushy' salesperson. How often do we hear someone say, "From the very moment I met her, I knew.. . ?" Or, "They didn't have us fooled for a minute. As soon as they opened their mouths, we could tell..."
Making judgments on such limited knowledge may seem difficult to defend. Yet, studies support the extensive influence of first impressions. Consider, for example, one research project.  the objective was to evaluate the extent that dress and physical appearance affect the quality of social interactions.
Using a retail store setting, the researchers discovered that the sociability of the clerks was significantly higher when interacting with a well-dressed actor than when interacting with a poorly dressed one. Other studies suggest that facial expression, gestures, glasses, personal coloring, garment style, and make up can play a key role in impression formation. As Humble and Bremer conclude, "Individuals tend to make intrinsic judgments about a person based on external cues."

What is true about first impressions of individuals may be equally significant for companies. Businesses select street and building addresses for company offices because they send "the right message" -- they are believed to make the right impression.

More Details omoleja@gmail.com

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Finding Markets for Your Product or Invention

Have a new idea or new product? Here’s how to find the markets for your invention, and what to do when you find them.
But before I show you how easy it is, and the best tools available to find your markets, take a piece of paper and write down all the markets to which you think your product or invention would sell. A market is any group of people you can define that has the potential to buy your product. Narrow it down as tightly as you can. This is step one: Figure out exactly what group or groups are the most likely to need,want, and be able to purchase your product. You’ve got to define exactly who your market is before you’re able to figure out how to reach it.
The tighter the specifications to find your markets, the lower your marketing costs will be. If you are selling books to middle school teachers, most of your money will be wasted if you advertise to all teachers. Your market is teachers, grades 7 through 10. Any material you send to anyone else just shows up on the red side of your balance sheet under “expenses.”
Let’s take a few examples. Your task would be simple if you developed a new camera lens for Canon’s line of professional cameras. Find a list of all the owners of Canon professional cameras and you’ve done all the homework you need to do—you’ve just found your entire market. Your advertising would have no wasted expense when you mail to them, because every person in that list is a potential buyer for your lens. If this list isn’t available (and a list this tightly qualified usually isn’t), your market could be found in the readership of several magazines whose subscribers are a group of people defined as Professional Photographers. Although there is some wasted expense in advertising to this group, it is still pretty easy to find this target market.
Suppose you’ve invented a new tripod to hold any type or brand of camera. Here, your task of finding the specific markets—groups of prospects most likely to purchase your product—is more complex. Surely if your tripod is of good quality, the professional photographers market is a good place to start. But how about the consumer photographic market?     more Details  omoleja@gmail.com

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Eight Timely Tips on How to Grow Your Business

The times have certainly changed. It was not so long ago when you could open your doors and there would be a steady stream of customers ready to buy whatever you decided to offer them. If they liked your company, they were loyal. Some called them "customers for life."
That day is long gone, as we all know. Today, customers buy selectively. Whether they are business buyers or consumers, they behave the same when it comes to making purchases of products or services:

• They see themselves in charge of the sale.
• They view themselves as free agents, not beholden to anyone.
• Their definition of "good service" is highly individualized.
• They leave rather than complain.
• They don't give all their business to anyone.

Because it takes much more savvy to stay in business today than it did even a few years ago, companies need a competitive advantage. Every customer counts. Lost customers mean lost business -- dollars that are going to someone else.

The big job is to keep pulling more customers closer and closer so they want to do more business with us, while satisfying our existing customers. Here are eight essential tools for growing a business today:

*No customer knows everything you sell. The worst assumption you can make is believing that everyone knows everything you sell. They don't -- and that includes your best customers. How many times do people say, "George, I've been coming here for 15 years and I didn't know you carried that." This is a wake-up call because it means those customers are going elsewhere to buy what you sell.

The goal is to get customers to look to you for more and more of their purchases. This can happen only if they know what you sell. A bank conducted a series of customer focus groups and discovered that customers only knew the products they use. This leaves the bank vulnerable to competing banks that are making offers for other products. It's no different in other businesses.

What can be done to remedy this situation? For starters, check your company's sales records and identify customer purchasing patterns and begin to educate customers on the products or services they are not using. Use e-mail newsletters so you can reach specific customers with specific information. Develop an informational campaign. Along with newsletters, include advertising. Current customers see ads as well as others.

*Make your store interesting for the customer. An automobile reporter had just driven several new Pontiacs and then wrote, "Pontiac still builds excitement." That motto (it's called a positioning statement in marketing) has served the company well for a number of years. When customers visit a Pontiac dealer, they expect to see "exciting" products.

All customers expect excitement today. They run from dull. What does the Rainforest Cafe sell? Clearly, they make it an exciting experience, particularly for families. What can you do to add some zest to your store? How about serving popcorn on Saturdays? Bob Curry at Curry Ace Hardware in Quincy, Mass., has been doing it for years. By noon the floors are covered with popcorn -- and the cash registers are full! Bob discovered that customers come for what he sells but also to have fun.

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The Ten Commandments of Great Customer Service

Customer service is an integral part of our job and should not be seen as an extension of it. A company’s most vital asset is its customers. Without them, we would not and could not exist in business. When you satisfy our customers, they not only help us grow by continuing to do business with you, but recommend you to friends and associates.

The practice of customer service should be as present on the show floor as it is in any other sales environment

.

The Ten Commandments of Customer Service

1. Know who is boss. You are in business to service customer needs, and you can only do that if you know what it is your customers want. When you truly listen to your customers, they let you know what they want and how you can provide good service. Never forget that the customer pays our salary and makes your job possible.
2. Be a good listener.

Take the time to identify customer needs by asking questions and concentrating on what the customer is really saying. Listen to their words, tone of voice, body language, and most importantly, how they feel. Beware of making assumptions - thinking you intuitively know what the customer wants. Do you know what three things are most important to your customer?

Effective listening and undivided attention are particularly important on the show floor where there is a great danger of preoccupation - looking around to see to whom else we could be selling to.

3. Identify and anticipate needs. Customers don't buy products or services. They buy good feelings and solutions to problems. Most customer needs are emotional rather than logical. The more you know your customers, the better you become at anticipating their needs. Communicate regularly so that you are aware of problems or upcoming needs.
4. Make customers feel important and appreciated. Treat them as individuals. Always use their name and find ways to compliment them, but be sincere. People value sincerity. It creates good feeling and trust. Think about ways to generate good feelings about doing business with you. Customers are very sensitive and know whether or not you really care about them. Thank them every time you get a chance.

On the show floor be sure that your body language conveys sincerity. Your words and actions should be congruent.

5. Help customers understand your systems. Your organization may have the world's best systems for getting things done, but if customers don't understand them, they can get confused, impatient and angry. Take time to explain how your systems work and how they simplify transactions. Be careful that your systems don't reduce the human element of your organization.
6. Appreciate the power of "Yes". Always look for ways to help your customers. When they have a request (as long as it is reasonable) tell them that you can do it. Figure out how afterwards. Look for ways to make doing business with you easy. Always do what you say you are going to do.
7. Know how to apologize. When something goes wrong, apologize. It's easy and customers like it. The customer may not always be right, but the customer must always win. Deal with problems immediately and let customers know what you have done. Make it simple for customers to complain. Value their complaints. As much as we dislike it, it gives us an opportunity to improve. Even if customers are having a bad day, go out of your way to make them feel comfortable.
8. Give more than expected. Since the future of all companies lies in keeping customers happy, think of ways to elevate yourself above the competition. Consider the following:
• What can you give customers that they cannot get elsewhere?
• What can you do to follow-up and thank people even when they don't buy?
• What can you give customers that is totally unexpected?
9. Get regular feedback. Encourage and welcome suggestions about how you could improve. There are several ways in which you can find out what customers think and feel about your services.
• Listen carefully to what they say.
• Check back regularly to see how things are going.
• Provide a method that invites constructive criticism, comments and suggestions.
10. Treat employees well. Employees are your internal customers and need a regular dose of appreciation. Thank them and find ways to let them know how important they are. Treat your employees with respect and chances are they will have a higher regard for customers. Appreciation stems from the top. Treating customers and employees well is equally important.

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It all Begins with You

What is it about you, your company, your products or services that
others need to know? What sets you apart from your competition? In
other words, why would a potential client do business with you as
opposed to the guy across the street?

Periodically, all successful businessmen and women stop to answer these
questions as they carefully evaluate their businesses. It is crucial not only for you
to know the answers to these questions, but for others to understand them as
well.

We're all familiar with the old saying, "Advertising is a process, not an event."
The validity of this statement stems from the thought that advertising is an
ongoing process that begins with you in order to see business success.

When I think about advertising, I'm reminded that people do business with
people. It's a basic game of relationship building that takes time to develop and
grow. People will hold you accountable for what you promise them.

I finally met an individual the other day who caused me to completely understand

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15 Questions To Ask About Your Competitors

Whether you're a mature business, growing business or a new business, you will
have competitors. These are other businesses that want to outsell you and take
your customers.

The secret to your survival and growth is knowing as much or more about them

as they know about you. And don't think that because you haven't heard anything
from them that they're not keeping an eye on you; they are.

If you're a retail business, you should be aware of every business within a two
mile radius of your store, whether they are a competitor or not. Every time you
see a building going up or a building permit on a window, stop and see who's
moving in. If you sell to other businesses, know your five biggest rivals in the
market you serve -- local, state, national or international. Be sure to subscribe to
all the trade magazines in your industry, many of which you can get at no cost.

Knowing the answers to the following questions can help keep you a step
ahead of the competition:

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Five Easy Steps to Delighting Your Clients

If you aren't giving your clients a rich, compelling experience if -- you aren't absolutely delighting them -- you're going to get left behind," she asserts. "In the Information Age, it's all too easy to be reduced to a commodity. There are countless competitors out there and people are savvy enough to comparison shop. Factor in the downturned economy and you can see why you must go the extra mile for your clients."



Here are her top five tips on creating rich, rewarding experiences that will keep your clients happy and coming back for more:

Live by the "80/20" Rule. You remember this rule -- the one that says businesses get 80% of their revenue from 20% of their clients 

Market to your existing clients. "I have a client who has been a financial adviser for more than a dozen years

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First Impressions are Last Thing a Company Wants to Forget

It's all about first impression -- government and business -- both making them and responding to them. In critical situations, everyone's antennas are up, super sensitive to even the most inconsequential signal. We seem convinced that almost everything rides on making a correct first impression: "Did we put our best foot forward?" "The first meeting is always pivotal. How did we do?" "What can we do to make it more impressive?"

Why all the concern with first impressions? Why do we believe that the first contact makes a difference? Is it true that no one gets a second chance at making a first impression or is that just popular business lore?

In some ways, it is difficult to understand why we place so much importance on first impressions. It isn't only making them that gets our attention, of course. It's reading them, as well. Armed with extremely limited information, we often come to conclusions that are instantly indelible. If we know such conclusions may be questionable, why do we persist in making snap judgments that are virtually impossible to change?

Read More