Its A Consumer World

Its A Consumer World

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  It is aConsumer world Richard Meyer Online Strategic Solutions
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  Consumers today   …makepurchase decisions in an average of 2.6 seconds   …abandon >50% of shopping carts online without ever making a purchase   …know fundamentally that power has shifted from companies to them, and they don’t often give brands a second chance   …are your business’s scarcest resource and most valuable asset.
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  Hello?   I amyour customer. A real person, a human being.   For too long you have treated me as a faceless number and lumped me into a segment in a mass market.   I’m not a segment, and I won’t tolerate that any more. I am an individual.   There may have been a time when I didn’t have much choice, but now I have many choices, so you need more than I need you.   I have the power & I am in control.
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  The realities oftoday’s consumers   20% of your customers produce 80% of your revenue  10% give you 90% of your profit.   A satisfied customer will tell 3 people, but a dissatisfied customer will tell 12 other people.   It cost 12 times more to win back dissatisfied customers  a 5% increase in retention would increase profits 25-55%
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  And the Internetgives everyone a voice today If you have to ask “why,” then you are already in deep trouble
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  Dissatisfied consumers area real threat to your brand   A very dissatisfied customer will tell 20 others   98% of dissatisfied customers never complain, they just leave   65% of lost customers are due to negative experiences, and 75% of negative experiences are not product related   Biggest reason people leave: “they don’t feel appreciated.”
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  Consumers have trustissues with business today
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  Consumers have rising expectations and falling trust Expectation Increased Information Satisfaction Trust Loyalty Decreased 1980 1990 2000 2010
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  And traditional segmentation isdead   People now come together by choice:  similar attitudes  similar beliefs  similar lifestyles  similar aspirations   “You are more likely to build a relationship with someone you meet on vacation than you are with your neighbors”   A business that attempts to meet everyone’s needs will end up not meeting anyone’s needs.
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  Smart marketers don'trely on age demographics now   People are “age shifting,” and not living lives based on traditional age stereotypes   The top end of a common demographic (34) may have almost nothing in common with the low end (18)   Age-based demographics leave out influencers, gift buyers, and others for whom a message may be relevant, which get missed because they aren't the ultimate recipient of the product   Focusing on age can take you away from emotional or relevant benefits   People lie about their age all the time.
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  Businesses need to…   know a few customers very well rather than a large number anonymously   have deep insights into customer behavior rather than statistical and numeric averages   meet real emotional desires than rational needs.
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  Measurement precedes management   Astudy done for the White House Office of Consumer Affairs found that in households with service problems potentially costing more than $100, 54% would maintain brand loyalty if their problems were satisfactorily resolved  Only 19% would repeat their purchase if they were unhappy with the problem's resolution Considering how   For less expensive problems (≤ $5), 70% expensive it is to would maintain brand loyalty if their lose a customer, few problems were resolved satisfactorily, only recovery efforts are 46% would repurchase if the problem was too extreme not fixed.
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  Bottom Line: what’smore important, profit or customer excellence?  BOTH !   Having a customer orientation is not about blindly obeying the customer, but about working with them so that you understand their needs and ambitions.   “The sole purpose of a company is to create and retain customers” Peter Drucker
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  The Zappos’ Formula  Zappos encourages customer reps to bond with customers. Call times are not measured.   A chat that continues for an hour with no sale is not a crime at Zappos.   The payoff? That representative has the customer's undivided attention for an hour and Zappos return rate is about 35% and the customer is likely to return next time with a although they sold sale. And they will bring their friends along. over $800 million worth of merchandise   "We actually talk to our customers,” Zappos said, they have yet to turn and that means 5,000 leisurely calls a day. It's a profit. unsexy and low-tech, he said, but "the telephone is one of the best branding devices.
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  What to do?  Customer excellence should be part of a company culture.   Create superior value for customers through deeper insights and solve their problems with your product.   Create shareholder value through sustainable growth, enhanced margins, and a reduced risk of customer loss.   Customer value is a starting point - not the financial value of the customer to us, but the value you create for them.
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  Who is RichardMeyer ?   17+ years in consumer marketing, with a strong emphasis on Internet marketing.   Consultant/Owner of http://www.onlinestrategicsolutions.com   Author of the marketing BLOG, http://www.richsblog.com   Someone who realizes traditional branding is dead and that consumers have all the power.   MBA in Marketing   http://www.linkedin.com/in/richardameyer   http://twitter.com/richmeyer