Have you ever
stopped to consider that your customers are experiencing these
changes in values and attitudes as well? I recently came across
a study about the changing face of consumer values and it made
me realise that there is a real difference between peoples values,
beliefs and reasons behind why they buy in today's economic environment
when compared to 40 years ago.
The research for the study was carried out on American consumers
to determine their changing values when purchasing. The information
is astounding and it reflects what a business owner perceives
as the motivation behind why their customers buy from them and
why those customers actually do buy from them.
Let's have a look at the results from the survey… Over a time
span of forty years, the values or "reasons for purchase" behind
the average consumer have changed dramatically.
In the 1950's most consumers were price driven and based almost
all of their purchases wholly on price, these are the people you
now dread as customers, they are the customers who phone around
to get five quotes, the people that force you to reduce your margins
and cut your profit, and bargain on every item they buy. People
like these do not see any other value in a product but the use
for which it was intended. This is probably because in the 1950's,
there may not have been any other service or benefit offered,
because there did not need to be, there was little or no competition.
In the 1970's the average consumer started to take an interest
in the quality of the products or services they were buying, because
they were finding that if they got the cheapest price the product
was almost guaranteed to fall apart as soon as they used it. Consumers
were beginning to look for better quality in products, but still
at a reasonable price.
In the 1980's, most consumers started to get busier, more hectic
lifestyles. Products or services that they purchased were taking
longer to get to them, or would be time consuming to set-up, organise
or buy. The average consumer had to be conscious of not only price
and quality but also of the time involved in using that product
or service.
Now we have reached the 1990's, the average consumers lifestyle
is not only hectic but stressful. Forty years of growth and change
has forced the average consumer to make very in-depth, extensive
decisions about purchasing. In these busy times, the average consumer
has to consider the quality of the product, the enjoyment or entertainment
value of the product, the time it takes to purchase or receive
the product, the energy needed to use the product or service,
the stress involved with making the purchase and of course the
price the consumer has to pay.
You, as a business owner, are also changing your ideals, values
and beliefs about buying and about certain products, but are you
changing your products and services to meet with these changes
in consumer values? Research shows that customers must have all
of these areas addressed to consciously or not, they need to feel
satisfied in these areas.
If you as a business owner still sell on price, your customers
are only going to make a decision based on price, because you
did not give them the benefits or the service to make them think
otherwise. When you are selling your products or services you
need make sure your potential customers understand the benefits
of the entire package and consciously make the decision based
on every value not merely price alone.
Develop a script, ask your customer and potential customers …
" Just so I can help you best do you mind if I ask you a few questions?".
Make sure that you ask exactly what they are looking for from
you and your product, so they tell you what they want and you
provide it for them. Investigate your competitors, see what they
offer and offer something different or more improved in areas
that are a concern for consumers. Try addressing areas that your
competitors don't, such as providing free delivery for every purchase
over a certain amount or taking them through a 19 point checklist
on why they should choose your organisation as opposed to your
competitors.
The moral of the story is that the decision to purchase in the
1990's is definitely not as simple as it was forty years ago.
Peoples lives are busier, their expectations higher and their
dollar even more valuable to them. Customers want your advice,
support, and ease of information when making a purchase, they
do not have the patience for poor customer service, poor follow-up,
poor quality products and services and their needs not being met.
Customers living in the 1990's will go somewhere else to purchase
if they are not entirely satisfied. Develop some ways to keep
your customers coming back by building loyalty and rapport and
making sure that you carefully address all of their values when
you sell to them.
