Gales Network • Brand building from the inside out

April 2009

Customer Rising
Dealing with More Informed Customers with Less to Spend

Big Idea: The harder it becomes to turn loose of cash the more informed a customer tends to become. Today, the customer's information access is limitless.

At Issue: The worldwide economic freefall has coincided with customers' ability to become more intelligent about their purchases using technology. The word of the digital community has emerged as the power center (over expensive brand message advertising) and may speed the demise of significant brands we know.

Big Ideas View: In recent years consumption was king. People didn't want to keep up with the Joneses; they wanted to BE the Jones. Not much brain drain required for the majority of purchases. The constant flow of cash into our economy lulled most brands into thinking their products and the service that went along with them were successful simply because they were profitable. Fast forward to 2009. For many brands, the microscopic lens of the online customer community may reveal a king without his clothes.

Take this example. A Gen X couple considering the purchase of a highly touted steam dryer recently came back from a reconnaissance trip to a local retailer. They walked away with many questions about installation, break even on the purchase, product durability and the nature of the new technology. The couple decided to spend more time online, asking for feedback from a blog on home appliances and monitoring forums on the topic of dryers. They have delayed the new purchase.

A short while ago, the idea of "monitoring a forum" or asking opinions from a blog or chat room would not have even entered their minds, much less been the walk away decision. Today consulting these sources is the logical step of connected customers who see the digital community as trusted advisors.

The lesson holds true whether you're selling tires, trips, tuxedos or tunes. If you have a product, you have a community who expects communication with you and participation beyond the basics. You are not selling products; you are serving your customer's (or client's or fan's or another business's) wants, needs and desires.

How do you start?

1.   Eavesdrop (The legal kind): Find out what customers are saying about you around the Web. An easy way is through Google Alerts.
2.   Invite: Give customers a forum on your website to ask questions and give you their input.
3.   Respond: Answer questions anywhere (your site or others) you see a question about your brand so that others can see the issue and your resolution - well-versed Netizens will sing your praises for this kind of pro-activity.
4.   Reward: Acknowledge your super-customers who are helping other customers. They will become lifelong ambassadors (as long as you continue to super serve).
5.   Communicate: Find the real communicators within your company and allow them to become your brand voice to the digital community. Don't relegate this role to low man on deck - the CEO might be the one who fills this slot (ala Thomas Nelson Publisher's Michael Hyatt).
6.   Respect: Elevate the distilled input of your customers to that of any executive on your team.
7.   Include: Invite key customer service staff to participate in product development and marketing - they hear the customers' voice.
8.   Reinvent: If your business model looks the same as last year, ask yourself why. The customer doesn't look the same.

The tipping point created by the market crumble has generated a new level of customer power and the world is sure to see average to poor products and services exposed and rejected, no matter how long a brand has been around. Brands who recognize the new center of power will not only weather the storm but will emerge with a new operational model based around the customer and in all likelihood, a stronger product line.

Will steam dryers be successful or "hung out to dry"? Ask the guy at the top...the customer is (again) always right.