Completion requirements
Read this chapter. The terms "customer" and "consumer" are often mistakenly used interchangeably. The distinction is blurry because different organizations, academics, and governments have varying definitions for both of them. One easy way of distinguishing between the two is to think of the consumer as a potential customer to a firm and the customer as someone that already consumes the goods a specific firm produces. For example, if you regularly purchase shoes from Footlocker, you are a Footlocker customer. But if your friend does not shop at Footlocker, then Footlocker considers him a consumer: a potential customer. Firms often target consumers and existing customers differently.
Buyer Behavior as Problem Solving
NEWSLINE: FOLLOW THE CONSUMER AND SEE -WHAT HAPPENS
It seems that traditional market research no longer works with
an
increasingly diverse and fickle customer base. The methods
marketers
have relied on for decades - perfunctory written and phone surveys-
merely skim the surface of the shifting customer profile. Says
Larry
Keeley, president of the Doblin Group. a Chicago- based design
and
consulting firm: "The surveys are nothing more than tracking
studies
designed to measure if customers are a little more or a little less
pleased with you than they were last year".
Surely
there must be a better way. Wise heads in the arcane world
of customer research are onto something called storytelling. These
folks advocate far more probing research than ever before, advising
companies to elicit real-life stories from customers about how
they
behave and what they truly feel. The notion may seem like a leap
into
the unknown but some companies have discovered that these
story-telling methods work. Great service and ultimately break through
products have resulted. Kimberly-Clark built a new $50 0-million
diaper market using in-depth customer research. At Intuit,
storytelling
customers helped its software writers revolutionize the way people
all
over the U.S. handle their money. Clothing maker Patagonia
soliciting true tales about how customers live and use their gear
manages
to keep its product ahead of the curve.
At
the heart of this new brand of customer research is a search
for
subtle insight into human behavior-not only emotion-laden anecdotes
but also unspoken impulses. Just think, for example, of the
last time you made eye contact with an attractive stranger. A whole
range of feelings washed over you and at that moment it would be
hard to argue with the notion that at least 80% of all human
communication is nonverbal.
At Patagonia,
an out door-sports apparel company in Ventura, California customer
storytellers surf at the "Point" right outside the
front
door of headquarters. Founder Yoon Choinard who spends at
least
six months a year at the ends of the earth testing his company's
gear
himself has made a point of hiring several of these customers
so they
could share their war stories in-house. He refers to them
affectionately as his "dirt bags" people who spend so much time
outside that
it
shows under their fingernails.
Patagonians collect such war stories from far-flung customers as
well and use them as a marketing tool. Many of their wares are sold
through a biennial catalogue that is unique among its peers. Instead
of spending millions to shoot glossy spreads of unthinkably beautiful
model, the company relies on its customer to pose while wearing
Patagonia duds in exotic locales. This pictorial road map of customer
adventures makes for great reading but it has another role as
well.
The placement of customers' stories front and center proves that their
opinions and experience are valued, and they respond in droves. "We
have trained them to believe that we are serious about responding to
their feedback and improving our products," notes Randy howard,
the company's director of quality.