Who moved my customers?

It's the same story everywhere. The competition just gets keener and brand loyalty is a thing of the past. Bonding with buyers isn't easy any more because the media is so fragmented; conveying a strong and convincing message is becoming increasingly difficult. What's more it's the blogosphere that seems to be influencing customers these days rather than any advertisement on television. And more people are buying or transacting on the Net, a fact that most firms are aware of but are not always able to fully exploit. That's because though selling on a website means that buyers are not tempted by a rival player's products, it's not also risk-free because retailers have their own ways of getting back. The authors concede there's no easy out and are convinced that companies have to continuously try out new things. Many of the options suggested by them have been explored by firms already but revisiting their strategies and experiences is not a bad idea. Indeed, it might well trigger some innovation and moreover serves as a reality check. Companies that haven't managed to change the mind-set of their employees towards customer acquisition and retention are losing out. This is particularly true for service sectors such as banks, where in India too, customers have more choices than they want.

Keep the product simple, say the authors, but of consistent quality like In-N-Out's hamburgers that have taken on even McDonalds in some places. Or use the direct selling method and empower buyers the way Dell did by allowing them to have computers designed to their own specifications; that meant they could opt for just those features which they wanted keeping the cost down. For Dell it meant assured sales and less inventory. And while designing websites, take a leaf out of the book of Sephora, a global purveyor of cosmetics. The firm's powerfully attractive portals are the key to its success, fetching it double-digit growth every year since 2000. Most important, keep customers coming back by continually refreshing the product, especially in businesses such as toys which are driven by the ever-changing tastes of fickle school children.

In addition to wooing customers on the Internet, companies also need to attract customers through as many attractive entry points as possible; Lego, for instance, has built on its success by reaching out to potential buyers through theme parks and concept stores. With these, it has succeeded in creating not just buyers but has converted many of them into fanatics. Service providers, in particular, need to make life as convenient as possible for customers; brokerage Charles Schwab has taken a lead over its competitors by making investment advice and transactions possible at storefront offices, the Internet, telephone and mail. Indian firms can learn from the many ways in which companies abroad are selling on the Internet or providing services. Since the trend is just about taking off, CEOs need to plan their investments in software and hardware keeping in mind the convenience of customers. Fortunately for those in the organised retail space, customers are still flocking to malls. But it doesn't hurt to know that very soon they may drift towards other sources and plan for that. In fact, given the crowds, they may want to start creating "lifestyle centres" for the upmarket shopper.

The authors also make an interesting point about offering customers and patrons a choice of products or services at the same time trying to be different. Customisation is perhaps what can set a firm apart in a world where everyone drinks Starbucks or shops at Wal-Mart. And people will pay a premium for goods that are "perfect for me" even at the low to middle-end of the market. But then, every company wants to reach out to as large a market as possible and from a practical point of view it's hard to customise mass offerings or services because large companies need systems and procedures. The authors believe that some of the smarter companies are building in more flexibility into the structure of their operations and technology is the key to doing this. But, obviously, as they point out it's easier to implement this in businesses that are web-driven and can't work across industries. All in all, an interesting collection of strategies pursued by some of the most successful companies that can come in handy for those struggling to cut through the clutter in hyper-competitive markets.

CHOCOLATES ON THE PILLOW AREN'T ENOUGH
REINVENTING THE CUSTOMER EXPERIENCE

Jonathan M Tisch with Karl Weber
John Wiley & Sons
256 pages