Peer Reviews and Consumer Behavior

John Todor

Customer Don't Want the Relationship Being Served Up

Graham and Vandana,

Sounds like we all agree that 'social media' is a key driver of customer behavior these days. But, I don't think companies should take a wait and see attitude. Customers are doing in at an increasing rate and they don't have to ask permission.

Graham, you argue that customer want good quality products, at a competitive prices etc. I partially agree with that statement. Before I elaborate here the position taken by the overwhelming majorities of senior executives interviewed in a recent Economist Intelligence Unit study.

In this environment (today’s business climate) the enterprise interested in winning, retaining and deepening customer relationships can no longer do so simply by creating a better product or even by hold down costs. For many companies, both strategies are essential simply to stay in the game. Increasingly, executives are finding that the winning differentiator is no longer the product or price, but the level of engagement—the degree to which a company succeeds in creating intimate long-term relationships with the customer or external stakeholder.

…engagement refers to the creation of a deeper, more meaningful connection between the company and the customer, and one that endures over time. Engagement is also seen as a way to create customer interaction and participation.

Over 90% of these executives said that customer relationships are very or extremely important to the success of their businesses.

How does this all tie together and relate to what customers want? There is no doubt that customers want what you describe surrounding the product and purchase process. All of these contribute to greater utility and lead to a means-to-an-end. In a world of abundance, overwhelming choice and hyper-competition, customers buying for "utility" are most often based on the best trade-off between price and convenience with indifference to company and brand.

But, human beings don't just want their wants fulfilled—they desire experiences that add meaning and value to their lives, including learning how to thrive in a changing world. And, for experiences to be meaningful they need to emotionally or psychologically engage customers.
This might be seen as psycho-babble by an ex-academic business strategist, but I am not along in singing this for of customer experience mantra. Perhaps as importantly, there are numerous case studies and reports that demonstrate this approach does lead to customer relationships customer want.

Trusting and credible relationships simplify things for customers in an increasingly complex world.

John I. Todor, Ph.D.