Recognizing and Acting on Customer Differences

Each one of us is unique in his or her individual way. These differences between one person and another add the "spice" to life. Why is it, then, that most organizations don't recognize these differences and use this information to create customer strategies, experiences, and marketing activities that resonate?

Case in point: a co-worker and I are virtually identical - demographically. We are both female, the same age, married, without children. We both own a convertible sports car and our own home. Our income, credit-worthiness, and interests are very similar. Each of us travels extensively. We subscribe to some of the same magazines. We even live in the same town. To most organizations, we would be considered "the same" and marketed to identically. However - we are very different from one other in how we prefer to interact with organizations and buy their products.

I prefer to do everything online. If I can purchase something or pay a bill electronically or manage my finances without ever speaking to someone, I am happy. I feel that it is quicker and more convenient. My co-worker, however, prefers to conduct all business transactions in person. She likes to go to the bank to make a deposit or withdrawal, and doesn't even have an ATM card. She will wait in line at the airport to check in. And, she will drive to a store to purchase an item so that she can have that human interaction. Some of the organizations she conducts business with, such as her bank, have suggested that she work with them virtually. She has declined, because she feels that the "human touch" is more important and helps her feel that the organization values her business.

Understandably, organizations try to push their customers to the least expensive channel in order to conduct business. However, the organization that recognizes even simple differences between customers and uses those differences to make every interaction profitable for the company and relevant and satisfying for the customer will be the one that maintains and grows their customer value. Every organization - regardless of industry and regulations - is capable of customizing some aspect of their product or service based on 1) customer preferences, 2) customer value, and 3) channel in order to maximize customer value.

(previously published on quaero.com on March 9, 2009)