5 ways to align your business practices to manage consumer behavior
In today’s digital world, where people want instant gratification, it can sometimes seem like keeping customers happy is a moving goal.
Changes in customer behavior, demographics, and preferences can change so fast that you may not even notice it, until it starts to negatively affect your business.
The main reason for this is technology.
Everything has gone digital and customers are much more informed than in the past.
Think about it: we carry an endless source of instant information in our pockets or purses. How many times have you pulled out your smartphone to check the rating of a product in a store or to Google more information about a service provider?
Let’s say you want to buy a car. Today, you don’t have to start kicking tires at the dealership or buying the same vehicle your family has always owned.
You can get a wealth of information online: customer reviews, car magazine ratings, maintenance schedules, resale values, and much more.
As new information (a new car rating or factory recall) comes out of a part, your preferences may change. Suddenly, people either love or hate a brand and, as a result, they either win or lose sales. Not to mention, your reputation fluctuates whether the news is positive or negative.
Here are some other reasons why people’s preferences change:
â— Depending on the economic climate, people have more money to spend or have to tighten their pockets. Think about real estate costs, unemployment rates, and income tax that is paid in a particular area.
â— With an overwhelming number of options available to consumers, maintaining brand loyalty is more difficult than ever.
â— Competitor brands present better and / or new product models that people want.
â— Trends come and go (today, the dietary fads gone tomorrow are a good example of this).
So how can you manage consumer behavior when it is constantly changing?
Just one of the many detailed car reviews you can find online.
1. Look at your competition like a hawk.
This is important advice for your business in general. When you first create your brand messages and USP (Unique Selling Proposition), you’ll want to do a competitive analysis. But even when you have an established business, you need to be aware of what your competitors are up to.
From your pricing to your value propositions, monitor what’s happening in your competitive landscape and adapt accordingly. This may mean adjusting your prices, offering a gift with a service, or including free delivery for orders over a certain quantity.
If you want to survive and prosper, market changing consumer behavior by focusing on what others in your field are doing.
2. Make it easy for people to leave reviews.
Customer feedback equals free advertising. According to research firm Martech Zone, 90% of users need fewer than 10 reviews to form an opinion about a company. If your customers are happy, some of them will write glowing reviews.
Your opinions will influence potential customers who are looking for what your business has to offer. See, you don’t have to do all the work when it comes to changing customer buying behavior, your reviewers will help them do it for you!
See The Importance of Collecting Customer Reviews.
3. Keep moving forward.
If you focus only on the present or become complacent, you will always be catching up when changes occur, and eventually (or very soon) you will be left behind.
Technology is always one step ahead, and even if you think you have too large a market share to lose to the competition, someone is probably thinking of a way to make what you do even better.
A good example of this is the ride-sharing service Uber. The taxi industry was unprepared for, or concerned about, technology disrupting its world. Well, we know what happened. Uber has taken over many cities and taxi drivers are feeling the rush.
It is important to innovate based on your industry, your competition research, and the likes and dislikes of your customers. Differentiating yourself could be as simple as offering a broader online selection than your competitors, or as tech-savvy as connecting with your business consulting clients through an app.
4. Put your customers in charge.
Buyers want to chart their own journey. They move between the store, the browser and the mobile with ease.
You need to align business priorities to keep up with them, not just send them ads. To effectively manage consumer behavior, take a step back and look at the touchpoints that make the most sense for your demographic.
Maybe make a live video on social media, then email subscribers with an attractive offer, and then send a “Last Chance” email to seal the deal.
Have you ever written a bad review? Have you ever received a negative review, real or false? Watch this video to find out when and how to best respond to negative reviews, how to respond to fake reviews, and how to report fake reviews on Yelp, Facebook, and Google My Business.
Watch for great tips on how to leverage customer feedback.
5. Remind your customers that you are there.
While people want to be in control of their consumer journey, that doesn’t mean they don’t need your help.
According to a survey by research firm Nuance, 63% of respondents said they actively “outsource” their memory to mobile devices or computers. They coined the term “digital amnesia” to describe this phenomenon.
They also found that 89% of millennials are more willing to do business with companies that send out reminders and notifications; 91% of Baby Boomers feel this way.
Guide your customers to your product or service by pointing them along the way with resources and reminders of how valuable your product or service is, or that they should attend their next appointment … whatever makes sense to your audience.
Check out some of Nuance’s research on customer “digital amnesia.”
Changing the customer’s buying behavior means that they can never stop moving.
But take the time to align business priorities with the changing needs of your customers and pay attention to what your data tells you, and your customers will be more likely to buy from you today, tomorrow, and in the future.