You have to be an experience customer, before you can be a good seller (Part I)

People say that by understanding you learn and succeed. Julius Gaius Caesar once said: “Veni, Vidi, Vici” – I came, I saw, I conquered. We have to urge ourselves to face the problem (I came), then we digest the problem, understand the issue and planning our strategy (I saw), lastly we take appropriate action, implement our strategy which is the product of our understanding (I conquered).

In the peace time we have other problem to conquer. One instance, we may want to start a new business to feed the family. A business, regardless of its position in the supply chain (manufacturer, distributor, retail, etc), industry (finance, agriculture, automotive, etc), or type of goods (goods – products, or services), it is basically buy and sell. You buy, and then you sell it at profit. It sounds really simple. But once you are engaging in one, it suddenly becomes complicated.

One problem arises after the others, complicate the already complicated matters. One of the issues usually there is not enough return. We have all these running costs, but it seems that the graph is going under and will never pick up. Out of the confusion, usually we are thinking about cost cutting. But wait! If we carefully analyze this problem, roll it back carefully. We may find that the problem is with our products. It is either the products do not sell as quick as we want or do not sell at the price we are expecting. What is wrong here? I have carefully planned everything, I have made acceptable assumptions, and I have done my market research, what could possibly be wrong here?

Shall we go back to this article title: “You have to be an experience customer (first), before you can be a good seller” – “experience customers” in general and for that particular product (target market) The true meaning behind all these is; understanding. You have to be able to understand your customers, their expectations and their values. It is not only knowing who is your customers and what they do, but how they “feel” your product and put yourselves in their shoes.

There is one problem still, which usually pops up. Someone said to me, I am an experience customer but yet I am not a good seller. Hearing this issue, it brings my memory to an old saying: “Wherever there is profit, virtue is taken lightly.” People tend to forget their experiences in deciding further actions. They have their experiences, but they do not apply that knowledge. Or even worse, they do not see the bigger picture and the long run impact. They feel the need for cash inflow now, and only think in short term timeframe. They are willing to take this short term profit even that it will jeopardize the bigger goal and long run return. Usually, when they realize that they are off-track, it’s already too late.

The past is not there to be forgotten. It is there not to be used to lean backward but to push us forward in the right direction. Moreover, it is not the actual state of being understand that we need, more importantly is the application of knowledge as a result of our understanding.

Author: Michael A Oei - MarketingFirst Group

Strategic Location!? We live in cyber world era!

It just a few days ago when I wrote an article saying that business owners cannot rely solely on strategic location (See: Strategic Location & Customer Loyalty…). A few days have since passed and I have been getting a good feedback on it. It basically points out that now we can shop from home. Thank you to Mr. Internet. And no where can strategically beat shopping from you couch. Ouch!

This is a really good point and makes me thinking why should I be bothered on spending all those money for one particular spot in the CBD (Central Business District), which will cost me around three grand a week (rent)? Where, if you think about it, it is possible for me to open an online store with considerably lesser amount (per week).

I said on previous article: “if a business needs to relocate to un-strategic location, it will need to rely not only on customer loyalty and branding but also a new way to lure customers by understanding their dreams (expectation).” This is needed because customer will incur more “inconvenient” cost and in return we have to offer something more.

Now, instead of having all the troubles figuring out customer’s dreams, why don’t we go online? If I may borrow eBay terms: “List locally, sell globally.” And at the same time, our business is in everyone’s living rooms.

Right now, some of you may still wondering why businesses still queuing for a strategic physical locations, and more of you may be puzzled with the fact that those big retails companies are gripping hard on their network of stores.

Well, it all comes to people preferences. Some people like to touch, feel and try items before they buy it. Other group of people may like window shopping, but then end up buying things. And few people I know were actually saying that they rather go to the nearest shopping mall rather than paying $10 shipping and handling fees. They all have their own reasons.

Cyber market or physical market, each has its own target audiences. A statistic has found out that the main reason people shop online was because of the convenience offered. They don’t have to queue; they don’t have to find parking. In comparison with the above, we may have two different personalities here.

People will always be different one another. A few years back, when Wal-mart offer all in one shopping experience, it has not yet made street corner convenience store die. I think even with the existence of Amazon, people still sell books in-store. I believe that people have different needs, different way of doing things, or maybe different preferences. All these different will contribute on their shopping behaviors.

It is by understanding existing customers and potential target market; a business will be able to make the best decision for them. Whether, following IKEA (one centralize massive store), do it like Target (stores all over major shopping centers) or abandon the old world and join the new cyber world. Understanding customer’s expectation and offering them with the value they want will pose a significant benefit.

Author: Michael A Oei – MarketingFirst Group