Cofounder and CEO of PissedConsumer, a review platform that helps consumers be heard and brands improve their customer service processes.
The world is changing, and so are the needs of your customers. I want to present a short overview of the two major factors that are influencing consumer behavior today, followed by some brief tips on how to boost your competitive advantage.
The most significant paradigm shift in modern consumer behavior has been instigated by the onset of digitalization, which has made it easier for consumers to find products and services, compare prices, find consumer testimonials and make purchases online.
Digitalization has also had a significant impact on the way we interact with consumers. It is changing our lives and the way we do business. But it’s not just about technology; it’s also about the new approaches to marketing, retailing and, most importantly, customer service.
Why Is Digitalization Important?
1. Consumers are now more likely to research and purchase products online than in-store. This means that businesses need to focus more and more on digital marketing tactics, such as search engine optimization, social media advertising, online reviews and email campaigns.
2. The way consumers conduct this product research has also changed. They are no longer looking for information from a single source, but instead from many individual sources such as those that can be found on review sites. Your business should utilize this development to create content that speaks directly to the customer’s needs and interests.
3. How consumers interact with brands on social media channels such as Facebook or Twitter is crucial. Your company needs to be aware of how your brand is perceived on these channels so you can take appropriate action when needed, including responding quickly to negative feedback.
4. Overwhelmed with ads grasping for their attention, consumers are looking for shorter, more consistent and more meaningful messages that don’t waste their time.
Of course, it is clear to anyone who hasn’t been living under a rock that technology is not the only major driving force behind consumer behavior of late.
How Is Inflation Impacting Consumers
We’re all aware of the peaks and troughs of market cycles, and I’ve previously written about what we can do to manage and mitigate their consequences, yet it’s crucial to also take into consideration the current contextual factors that provide the backdrop for today’s shifts in market behaviors.
Post-pandemic Mindset And The Impact Of World Events
With war and inflation in the headlines, doubt and uncertainty abound. Many consumers are reacting to this by retracting from frivolous, recreational spending and refocusing on the essentials.
Consumer behavior is also being influenced by changes that took place during the Covid-19 pandemic.
Through necessity, the pandemic period saw the onboarding of many previously resistant consumers to digitalization and e-commerce, further entrenching the monopoly of large-scale online retailers.
How To Adapt Your Business To Changing Consumer Behavior
Adapt to survive, or adapt to thrive? How your business responds to the changing consumer mindset is also determined by your own company’s mindset, or philosophy. Do you see the necessity for change as an opportunity to excel, or merely an obstacle to be overcome?
With the rise of Amazon and other big players’ dominance in the retail and service markets, adapting to and succeeding in this new world order requires strong innovation and smart allocation of resources.
I argue that the smartest investment you can make is in your customer service operation—an area I specialize in.
Why Is Customer Satisfaction Important?
I believe that the most important thing for customers is for them to see the value of what your company offers not only in financial terms but also in how well you serve and respect them. With online platforms that give a voice to consumers growing, the customer relationship is more important to your success than ever before.
My experience has made it very clear to me that nothing is more important than good customer service. How you make your customer feel after interacting with your company makes a huge difference. This is particularly true if the reason they reach out to you is due to dissatisfaction.
A Deep-Seated Desire Sentiments To Be Acknowledged Or Validated
I’ve found that the majority of customers who contact a customer service department want to know that their sentiments are understood—not necessarily that their opinions or positions are shared, but rather that you are making an effort to comprehend their situation and find a solution that is fair.
Do this well and you’ve already done the hard work. Because in uncertain times, what makes the difference to the consumer? What makes a brand stand out from the crowd? Trust.
This is what existing customers need, but how do you gain these customers in the first place? It is all about your value proposition. What are the advantages of your company over others in a similar space? What sets you apart from those around you?
If a customer can’t answer these questions, then they’ll be more hesitant to buy from your company and instead choose your competitor that can.
Know What Your Customers Want
Understand who you are selling to and what they care about. It’s all about showing people how your company makes life better and easier and what they’re buying into. The idea is that you are helping your customer see how investing in your company will bring them more happiness and value than the alternatives. It might often be through digitization practices that you can make this happen.
Forward-thinking small and local businesses offer their customers an experience that cannot be matched by their larger competitors. Figure out your unique advantages and leverage them.
Provide a personalized experience through customer support staff who know what they are talking about, care about the service they provide, believe in their company and can give thoughtful recommendations.
I think the market will increasingly favor customer-centric companies that put more emphasis on the customer relationship over simply making a profit—businesses that can act on customer feedback in order to give customers what they desire. Take advantage.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?