The Consumer is Talking; Who’s Listening?

When was the last time you sat down with a customer or client and really listened to them?  No – I mean really listened?  Did you interact with them and delve deep into their inner thoughts and feelings or was it superficial?  Worse yet, was it all ‘talk’ and no ‘listen’?  Take a second and watch this video.  Remind you of anyone?

A recent study conducted by Michigan State University researchers has identified what the sophisticated consumer is looking for in today’s competitive, challenging global economy.  Essentially, they are looking for a “total experience.”  Whether they are thinking about listing their property, talking with a financial consultant, shopping for a new dress or buying a cup of coffee, all consumers are looking for four major factors.  They are, in order of importance:

Benefit (i.e., what’s in it for me?)

Convenience (the ease and availability of the experience)

Price (including both the dollar amount and cost in terms of time – i.e., time is money)

Environment (does the shopping environment – online or brick-and-mortar – stimulate, entertain, motivate consumer to buy) ¹

In addition, consumers’ desire for the ‘total experience’ apparently does not change in a recession, although they may modify one or more of the factors – such as buying their daily latte from a fast-food restaurant or a convenience store instead of a Starbucks.

Knowing the threads that make up the experience – and how consumers rank them – can help businesses better allocate resources, said Bonnie Knutson, professor of hospitality business and lead author on the study.

“Before, the belief was, if we can’t define it and measure it, we can’t manage it,” Knutson said.  “Well, now we’ve been able to define and measure it.”

“The advantage for the business owner,” she added, “is now that I know what is important to the customer I can allocate my resources, my strategy and the systems I put in place to enhance that total experience.  And that’s your competitive advantage.” ¹

So before you start telling the consumer about your great web site and how many transactions you have completed, ask yourself the following questions:  Do you know how your product or service will benefit them?  Is it conveniently delivered?  Is your price competitive?  Is the environment comfortable?

Instead of guessing, maybe you want to ask them.

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¹ ”What consumers want: MSU researchers pinpoint common threads.” Michigan State University. Michigan State University, 5 Mar. 2009. Web. 21 Aug. 2009. <http://news.msu.edu/story/6023/>.