Why defining target groups is important
Words by: Jayadev Menon Photographs from: pixabay.com
Who is your Customer?
Often business owners fool themselves into believing that they can serve all categories of customers using the same set of employees, from the same outlet, offering the same level of service and buying experience. They fail to realize that the expectations of budget buyers, mid-income customers and high net-worth individuals can be varied and often diametrically opposite. The simple inability to recognize this can cost businesses dearly – such as losing the patronage of some valuable customers simply because they weren’t able to meet expectations.
It would be futile to assume that one can serve everyone and make all them equally happy.
One size doesn’t fit all
I was witness to a scene here at Cochin – to avoid hurting a friend let me not mention the actual product and just say that it was a car accessory showroom. The showroom owner’s friend came there with a brand new 5 – series BMW to get an accessory fitted. He was told to wait in the Sales cum reception area while the technician worked on the vehicle. At the same time the driver of a small cargo auto-rickshaw was there to get some component fitted. He was bargaining with the salesman for a discount. A third customer was present in the same small reception area making payment for some work done on his vehicle – the cashier was printing his bill on a noisy dot-matrix printer. To add to the noise the showroom owner was having an animated conversation with another salesperson about the sales target for the month.
In the midst of this din the owner of the BMW was trying to make a phone call, seated on the sofa of the crowded lobby area. The expression on his face clearly indicated that he wasn’t happy about what was happening.
I am not trying to start a class battle here, but is it unfair for luxury product buyer to expect a different buying experience and preferential treatment. This customer quite obviously felt he was being short-changed in spite of paying a hefty amount for his purchase.
What surprised me most was that the owner of the enterprise was oblivious of his discomfort and displeasure. You will be shocked to learn that this showroom had a separate waiting area and it was a quiet place – neither was the customer told about it nor was he taken there by any staff.
Many Businesses have woken up to this reality
Recognizing the needs of each category of customers served by them, many leading business houses have now opted to offer preferential treatment by creating offerings exclusively meant for them – India Hotels, owned by the Tatas, has Ginger for the budget traveller, Gateway for the more upscale business traveller and Vivanta for the luxury category.
It took Maruti a long time to realize that they are known for affordable and fuel efficient cars, not high end vehicles. Their attempts to sell SUVs and upper segment cars were met with limited success. After a lot of research they launched ‘Nexa’ with the intent to promote a set of premium vehicles – from the look and feel of the showroom to staff uniform and presentation of vehicles, from receiving a customer at the showroom to vehicle delivery, everything was done keeping in mind the needs of the upper middle class customers. Customer experience in a Nexa showroom was markedly different from that of a usual Maruti showroom.
Jayadev Menon heads AKSH People Transformation, a consultancy that focuses on Talent Development and Business Transformation. He is a consultant, trainer and public speaker. Adventure Sports and Birding are his passions. He can be reached at jayadevaksh@gmail.com
Don’t try to satisfy everyone
Even after getting a quality product or service at a discounted price a budget buyer may complain about being over-charged and if a high net-worth customer isn’t given exclusivity after paying a premium he or she is going to feel short changed.
I have received the worst reviews for my training programs from customers who have demanded hefty discounts. They expected premium services at budget rates – not justified, but how are they to be convinced? I only had myself to blame for not choosing my customer well.
Earlier this week, responding to another article I had written, a senior business manager commented that “in business we need to know what we should do and shouldn’t do”. Extending that a step further let me say that businesses should know whom they wish to serve and whom they don’t intend to serve.
We can’t please everyone; it may not be profitable to do so.