Don’t guess what your customers want

Sometimes the best advice is free. The key ingredient to successful market research is to get as close as possible to the customer. With Internet and email it is now possible to get even closer to your clients. If your clients are so “close” to you, why not get them to do some work for you?

Your customer is the most reliable source of information at your disposal, and it is free. “Quality purpose recordings” are used to train personnel; on-line surveys and polls are used to collect valuable information directly from the targeted market.
If you collect information with the intention to improve the quality of your service your clients will certainly not have any problems giving you a piece of their minds.

You cannot get close to the consumer with aggregated data. Making one-to-one contact with a few clients will provide valuable, accurate data that cannot be matched by aggregated data.

If you do not have time to talk to your clients you better make time. You need to get rid of the “average” data and discover the real consumer. If you “make” time for your customers your customers will make more time for your business. In the process of communicating with your clients, your clients become part of the product development process. You will discover new segments and provide products and services that were actually developed by your clients.

Market segmentation – Less is more

Even with the technological advances and vast choice of media at our disposal, the possibility of effectively reaching “everyone” is nothing more than marketing utopia.
Small companies develop into large corporations because they realise that segmentation multiplies opportunities. They also realise that market segmentation is the most efficient and profitable means to better client service.

Unless you want to remain a small, run of the mill business you have to realise that you cannot be all things to all people all of the time. This is especially true in business. You simply do not have the time, energy and money to give every customer everything they want.

Through the process of market segmentation you will group clients together who have similar requirements or behaviour. Once you have set the criteria for your focus groups you can begin to tailor your products and services in a way that will appeal to your focus group, and therefore “attract” the clients you want.

The trick of segmentation is to have more than one market segment. In other words, you need more than one product or service with every product or service aimed at a specific segment of the market. The more segments you have, the more opportunities you will have.

As time goes by you will notice that new segments emerge. You will also notice that your existing segments are living organisms. They constantly change as a result of economic climate changes, advances in technology, political influence, fashion trends and a whole range of internal and external economic factors.

Start growing your business through successful market segmentation and claim a bigger piece of the pie.

Understanding the client buying cycle

There are client buying cycles with most products and services. It is important that you have a clear understanding of the client buying cycles, and to be able to identify where you "stand" with your client in order to implement the right sales strategy.

The buying cycle

Initiation point

The initiation point is the point in the client buying cycle where the client begins to think about whether or not to spend his or her money on a specific product or service. The client will become aware of the need to buy a new car, a pair of shoes, or whatever the need might be. This need within the client is not necessarily generated by an advertisement. It is an internal awareness of something that will need to be replaced or updated soon. The buying cycle has been initiated.

invisible development period

This is the point in the client buying cycle where the client starts noticing advertisements, different manufacturers or suppliers of the products and services he / she needs. The client begins to pay particular interest in articles published regarding the product or service. No sales people are currently aware of the client's intention to buy something. Sometimes a friend or family member of the client will let a salesman or woman know that the client is currently in the market to buy a specific product or service. The client is well into the buying cycle at this stage.

Visible development period

At this stage in the client buying cycle the client will start to ask questions about the particular product or service he / she is interested in. The client will ask friends, family and colleagues at work about the products and services in order to get more information to make a decision. The client is very close to buying at this stage.

Maximum visible development period

This is the point in the buying cycle where the client physically walks into a shop or showroom with the intention to purchase. A client who is at this point in the buying cycle is 80% sold. The salesperson will not need to make contact and persuade the client to buy. The client is ready and willing to buy, and a good relationship with the client is not a necessity. Clients who find themselves at the maximum visible development point not only wants to buy the product or service, they also have the ability and desire to do so.

Visible decline

The sale is done and the client goes into a visible decline. The client will still show an interest in the products and services that are available, but the client is happy with his purchase and shares his / her new found excitement with their friends, family and colleagues. Gradually the client's interest in their purchase will fade away as they loose interest in their new purchase.

Rejuvenation or rest period

This is a dormant stage in the client buying cycle. The client doesn't put anymore thought into the product or service he / she purchased. The client might identify a new need for a different product or service.

If you understand buying cycles, and know how to identify where the client is in the buying cycle you will know when to be talking to the client about buying.