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“You can’t always get what you want. You can’t always get what you want.

But if you try sometime, you just might find, you get what you need.”

     – The Rolling Stones, You Can’t Always Get What You Want

Have you ever felt an immediate connection with a product or service?  Have you sought an answer to a problem you’ve been thinking about then saw an ad related to it on a favorite website or television program?  How about your favorite retailer, either in-store or on-line?  Have you wondered why the layout, policies, merchandise, etc. for that store fits what you prefer so well?  Marketers can make use of theories, concepts, models, and methods borrowed from psychology, sociology, social psychology, and other fields to determine what people prefer, when they desire it, and other consumption related answers.

A good starting point for gaining better understanding of your customers and potential customers is the consumer decision process. Knowing the steps your customers go through to obtain your products and services can better prepare you in many ways, including how to craft more effective and timely marketing messages.  Here’s an overview of the process:

Marketers can use the consumer decision process to help design better marketing efforts, customizing as needed for each step in the process. For more information on the process, including examples of how marketers can use it, go to simplecustomerservicerules.com and click on the Resources page link.

Do you treat all of your customers the same way?  Should you? Just because we want to please all of our customers does not mean that we go about doing so in the exact same way.  In marketing this is known as segmentation, which is a three-step process:

First, we collect information to determine how many “pieces” of the market we can detect.  This first step is segmentation. Internal data from sales, interviews with customers, discussions with employees, and industry/competitor data are some of the sources of information that can help us better understand the market and any differences between and among customers and potential customers of our products and services. Groups of such customers are called market segments.

After determining the number of segments and capturing a description of them, the next step we take is to analyze details about the segments to try to determine which of them are the most appealing to us.  What stands out as appealing will differ by the organization doing the analysis and its plans and goals.  Typical measures to help us make these decision are segment size, growth rate, intensity of competition, and whether our current operations (e.g., distribution) can reach a segment.  By using tools such as a Fishbein model and/or a product-market growth matrix (aka Ansoff matrix) we can rate and/or rank the segments and target one or more of them, depending on the above analyses and our available resources.  Thus, the segment or segments we wish to serve become target markets.

The third step in segmentation is to design a marketing mix for each target market.  That is, from our understanding in the determination of the segments and the desirability of serving them we have information that we can use to develop a new product or customize an existing one, plan for where it is best to make our offering available, determine the ideal price for that offering, and design a message that will inform those people (or, for business markets, organizations) about the benefits we are making available for them.  This final step is known as positioning, which means the position we wish to occupy in the minds of our target market members.

The most successful organizations practice market segmentation. The end result is the ability to “hit the target” more accurately with a more focused aim, as opposed to hitting all over the target where a few of our offerings will be acceptable by customers but many will languish, being seen as not having the right benefit(s) for a particular customer(s). Previous posts on this site (simplecustomerservicerules dot com) describe some of the concepts mentioned above, and these and other concepts and tools are among the material available on the site’s Resources page.  A few of them are also described more fully in our book: Better Customer Service: Simple Rules You Can Apply Today (Routledge 2021). Try them out and see if you can improve your results with current customers and land desired prospects more successfully.

Innovation and new product development research has many fascinating avenues. One area of such research is aimed at discovering and exploring those characteristics that make products “winners.” The goal is to develop guidelines that will help designers include elements known to enhance the chance of a product or service of succeeding against competitor offerings. Another aspect is to also describe what it is about some organizations that make them above average in producing new products that do well. A well known scholar in this area of research is Robert G. Cooper, author of Winning at New Products (Basic Books, 2017). Along with colleagues Elko Kleinschmidt and Scott Edgett, Dr. Cooper has produced in-depth analysis and descriptions of the new product development process, pioneering the stage-gate new product process.

Here is a brief overview of new product success and failure factors. (A more detailed review is available on the Resources page at simplecustomerservicerules.com.)

Success Factors
The product is a good match between product and market needs. A product or service developed without studying customers needs and wants is less likely to do well in the marketplace.

An adequate target market size is identified. Adequate size is relevant to your resources. Smaller competitors can be happy with very small market segments, but a larger firm may require one with a minimum size as a threshold for further interest. More information may be needed, including that from your own research and other from outside sources.

The product offers a clear and meaningful benefit. Understanding, and practicing, the marketing concept is key for this factor. Benefits delivered must exceed the cost to obtain obtain them (i.e., value is created).

The new product is distinguishable from substitute products. Products are more successful when they are not simply “me too” versions of an existing bundle of benefits. However, success can be attained by offering the same benefits, but at a lower price. The challenge is to do so and still be profitable, meaning a low cost structure must in place.

It offers a unique and superior value. This factor is highly correlated with the preceding pair.

The organization is committed to new product development. All members of an organization needs to know they are expected to be involved in generating ideas, working on developing those ideas, and helping to achieve success. Some of an employee’s performance goals should be tied to new product or service development activities appropriate for his or her role.

Failure Factors
The product does not match product and market needs. This factor is both an opposite of the first success factor and a failure of being market oriented (i.e., “customer centric”). The remaining factors associated with failed new products are also in that same theme, so we will discuss them as a set:

The market size was overestimated., the product had incorrect positioning, the product was inappropriately priced, had inadequate distribution, and was promoted poorly. Note that all of these reflect a poor job of executing the marketing concept (as with the first failure factor, the firm is not being market oriented). In fact, most of these are marketing mix failures (i.e., they are price, place, and promotion shortcomings).

Studying success and failure can improve new service/product planning. The goal is to assure that as many success factors as possible have been addressed, and likewise that any of the failure factors that might might have crept in are removed/improved. Testing pricing and promotion with potential customers would help in both areas. Ensuring that proper resources for distribution are in place can help avoid supply shortages that could disrupt or outright ruin a new product’s introduction.

Being aware of both success and failure factors can help your organization thrive in its generation of new and exciting services and products.

Today marks the 67th birthday of the Humane Society! Almost seven decades of looking out for animal welfare. Congratulations and best wishes for many more decades to come!

Ever feel like you and your pet communicate on multiple levels? We cannot offer much advice on how to improve that special bond, but we do have quite a few resources to help you better communicate with your fellow humans!

It’s always a good idea to look for ways to communicate better! This site offers tools and ideas to help you do so. In addition to those resources, we share below some books from several perspectives that can help build communication knowledge, skills, and techniques. They would be good additions to your own personal or professional library, and excellent gifts for others as well.

Better Customer Service: Simple Rules You Can Apply Today
Edward C. Brewer and Terence L. Holmes

The primary audience of this work includes any business that desires to improve customer service. However, anyone who works with people will appreciate the conversational tone and specific illustrative examples in this clear and immediately actionable book. Review and order here.

Organizational Communication: Today’s Professional Life in Context 1st Edition
Edward C. Brewer and Jim Westerman

This book presents the increasingly global and mediated nature of communication in organizations, resulting in a highly readable and engaging introduction to the field. Available here.

International Virtual Teams: Engineering Global Success (IEEE PCS Professional Engineering Communication Series)
Pam Estes Brewer

This book presents a complete guide to international virtual team communication.  It includes up-to-date research developments in the engineering workplace on a global scale, and a problem-solving approach to using and communicating in virtual teams. Insightful and timely! Available here.

The Introvert’s Guide to Greater Success at Work and Home
Edward C. Brewer

This book will help introverts understand how their communication patterns are perceived by extroverts and help them adapt their presentation of self to the needs of their extroverted co-workers, family, and friends in order to communicate more successfully. But this book is also for the extrovert who wants to better understand the introvert for a more satisfying mutual relationship—and more success in business. Order it here.

We hope you have a wonderful holiday season.

Have you ever wondered how some people can cause others to make decisions they otherwise wouldn’t? This question describes what is known as the “bases of social power.”

French and Raven (1959) brought awareness to this form of influence. They described five such bases of power: legitimate, reward, coercive, expert, and referent. Raven later followed up with another researcher to add information power to the original five (Raven and Kruglanski 1970). Let’s take a look at these and how knowing about them can help you in working with others, whether you are trying to persuade them or vice versa.

Legitimate Power. This base of power comes from occupying some recognized, formal position in a particular setting that allows a person to make decisions that others in that setting will follow. The recognition can be based on a title (supervisor, mayor) and is often accompanied by some symbol, such as a uniform (police officer, firefighter) or office location.

Reward and Coercive Power. These often stem from legitimate power, as part of the responsibilities of a person with such power is to encourage behaviors that help the organization and punish behaviors detrimental to its proper functioning. Bonuses, promotions, and preferred parking for an “employee of the month” are typical rewards. Coercive power is realized through the use of fines for violating rules or other such attempts to extinguish negative behavior. Revisiting the basics of behavioral/operant conditioning can provide many examples of these types of power.

Expert Power. “Four out of five dentists recommend sugarless gum if you chew gum” went the old Trident chewing gum commercials. (Did you ever wonder what the one dentist was thinking?) Expertise can be attained through experience and training. Certification of some type often accompanies this basis of social power. Diplomas and licenses are common signs of expertise in a particular field, but influencers, bloggers, and others with demonstrated knowledge and skill that can benefit others also have such power.

Referent Power. This social power base is where we get the term “reference group” and is the reason celebrity spokespeople are used in promoting all manner of goods and services. The power is based on admiration of and desire to emulate the person or organization. (There is a negative type of referent power as well, wherein one takes action to avoid being associated with a particular group or person.)

Information Power. This power stems from control over information that others value. A receptionists has the knowledge of who a salesperson needs to see. A coworker has critical insight that can help a colleague steer a project in the right direction. Information power has become more and more important as connectivity has become common and the use of virtual teams has increased.

Knowing about these bases of power can help you understand what competitors, vendors, government regulators, and others in your operating environment are trying to do. Through this better understanding, you can build a better, more interconnected organization.

Have you ever wondered why some products, services, or ideas take off quickly and are adopted far and wide? How about the opposite, a seemingly great idea or new product just languishes until it disappears. Understanding how both of these processes take place is the realm of those who study diffusion. Of course the idea is to achieve fast introduction and growth and to avoid as much of the languishing as possible!

Everett M. Rogers first published his book Diffusion of Innovations in 1962. It’s impact was immediate and his findings and insights are still studied today. There are many resources associated with Rogers and diffusion you can find in videos, articles, and books. To help you apply these insights into your own organization’s efforts, here is a general overview of some of the key characteristics of fast versus slow diffusion.

Although many variables have been studied over the years, five highly applicable ones are 1) complexity, 2) compatibility, 3) relative advantage, 4) visibility, and 5) ease of trial.

Complexity. The more complex a product or idea is, the longer it takes for people to understand it and how it might benefit them. Thus, when designing something new, it is best to make it as understandable as possible. If it has to be complex then it is important to provide support for potential customers to understand how it works and how they can use it. Thus, clear instructions, training, advice, and other such support can help speed the process.

Compatibility. It is important to truly understand the market the new product or service is designed for. Organizations that practice the marketing concept will be more adept at studying their customers and potential customers to enable better design that will help those customers by fitting into their current routines as seamlessly as possible.

Relative advantage. Again, practicing the marketing concept leads to developing services and products that are designed to have a competitive advantage over whatever solutions are currently being used. The better that advantage, and the more clearly it is seen, the faster the adoption will proceed.

Visibility. If potential users can see others benefitting from the new product or idea then they will adopt it more quickly. If the new item is not something that can be seen by others, try to make demonstrations and samples available. These can help speed up diffusion for less visible products.

Trial. As with samples for visibility, if someone can try a new thing without a full commitment they will be able to experience the benefits and faster diffusion can be achieved. Can your new service or product be offered on a trial basis? Can it be offered as a rental? Is a smaller version or portion possible? From new snack foods to new software applications, making a smaller or short term version available can result in faster adoption.

This is just a brief view of the vast potential that an understanding of diffusion of innovations can provide for improving your operations. Our book, Better Customer Service: Simple Rules You Can Apply Today, has several related lessons that can enable you to improve your service, your employee retention, recruiting and onboarding, and more. For more about diffusion and related topics, see the Resources section on this site.

-Terry

Growing your service business, or growing any type of business, is often a challenge for managers and owners. One well-known, but sometimes misunderstood, tool that can help you get a handle on how to grow is the Ansoff Matrix. The matrix, which has been around for decades [Cf., “Strategies for Diversification,” (1957) Harvard Business Review, Vol. 35, No. 5, pages 113-124] and is the newest addition on our Resources page, is a model that depicts four strategies that have proven to be the most common ways organizations grow. It consists of four quadrants along two dimensions. These dimensions are the key to understanding and using the matrix, as they help prescribe actions necessary to attempt implementing the growth initiatives. In fact, a commonly used name for the matrix is the Product-Market Growth Matrix.

One particular strategy is that of Market Development. Here, firms seek to grow by offering their services to new segments of customers or new geographic areas with similar customers. Succeeding with strategies in this quadrant depends on a firm’s capability to expand distribution beyond where it currently does.  Two examples of such capability:  a) how much capital the firm has available to invest in expanding its operations and b) marketing research expertise within the firm that can help identify the new segments’ needs.

Difficulties can arise in implementing market development initiatives. A recent survey of consumers regarding receptiveness to purchasing and owning an electric vehicle provides a good example. The survey found that the biggest reason for not buying EVs was the consumers’ doubt about being able to find charging stations wherever they might drive them. Thus, even a good product (or service) will find difficulty in growing if the appropriate investments have not been made. Clarifying where charging stations are located (as Tesla does on its website), making clear the plans for expanding their number, and doing other things to help potential customers climb the learning curve as new EV owners are just some of the necessary steps that would enable successful expansion into new markets.

Visit the Resources page on Simple Customer Service Rules dot com to learn more about market development and the other three Ansoff growth strategies. We include a section on how to apply the matrix in your own organization.

Contemplating growth can be intimidating. As Abraham Maslow put it, “One can choose to go back toward safety or forward toward growth. Growth must be chosen, again and again, fear must be overcome again and again.” Study your organization’s history of successful expansion and put the matrix to use in planning its future growth. You’ll be well-prepared to succeed.

• Terry

I don’t know about you, but I always dread when I have to make a change or address a problem with my cell phone carrier. My carrier is Verizon. I tell you the name because this time the story has a happy ending.

Verizon has two stores near me, one is a company store, the other is a contracted store. The company store, which is actually a little closer to my home, unfortunately is not very helpful. They will not take a walk-in, you have to make an appointment, and even then they are not all that nice. However, at the contract store, an employee, Kelly, has made our experience pleasant several times. First, we needed to add my in-laws to our plan. There was also a deal for getting new phones for my wife, our daughter and me, so we ended up getting four new phones and changing our plan. Kelly, sat down with us and explained everything. She transferred data from our old phones to our new phones (the company store won’t do that anymore), and helped us get all set up. We did this all in the store, and while it took a little while to get my in-laws’ phone number from their trac phone switched to their new Verizon phone, Kelly was pleasant the entire time. We actually enjoyed our time in the store. In addition, my phone was out of stock, so we hadn’t ordered it yet, but Kelly texted me one day (and it was actually her day off) to tell me that the deal was about to run out, and we needed to get my phone ordered if I was to get the “free” phone. She didn’t have to do this, especially on her day off, but that simple gesture won her customers for life. As long as she is at that store, she will be our go-to person.

Recently, my wife and I were planning for a trip to Europe. My wife spent several hours on the phone with Verizon, trying to get us set up for using our phones while there and making some calls in preparation. After several hours and three different people, my wife had us partially set up, but we were a little confused because we had received different information from different customer service reps on the phone. I went to Kelly at the Verizon contract store and had it all complete and fully explained in 15 minutes. As we mention in our book, that kindness, respect, courtesy, and accuracy that Kelly provided made all the difference.

-Ed

Do you have a friend or relative who owns a small business or is a manager at some level in their job? The e-book version of our book makes a nice gift for such entrepreneurs and professionals! The e-book makes searching for concepts and examples fast and easy, allowing the simple rules to be more readily applied. In this time of labor shortages our book can be a valuable resource for helping workers grow their skills and knowledge, increasing their feelings of their jobs as important and of great value to the customer.
And, of course, the e-book can be gifted with no worries about delays in a physical delivery.
Here are links to our book in some popular online formats:

Barnes & Noble NOOK e-book
https://www.barnesandnoble.com/w/better-customer-service-edward-c-brewer/1139638965?ean=9781000394894

Google Play Ebook
https://play.google.com/store/books/details/Edward_C_Brewer_Better_Customer_Service?id=WRgoEAAAQBAJ

Amazon Kindle
https://www.amazon.com/gp/aw/d/0367757338/ref=dbs_a_w_dp_0367757338

(I’ll take a pass–literally.)

Recently I switched primary care physicians. Although I have found it difficult sometimes to find doctors with a more holistic mindset that I like and am comfortable with, the main reason I decided to seek a new doctor was because of poor customer service in the office.

One Friday morning I felt a familiar pain and realized I had developed a kidney stone, knowing that’s what it was from several prior experiences. I called the urologist’s office to make an appointment and found that I needed a referral, this being the first time with this particular ailment since moving to my current city. I requested the referral from my primary care office, which they immediately provided. Afterward, I talked again with the urologist’s office and they said I would also require an X-ray, adding that my practitioner’s office should have known this.

I called my primary care office again and found that they were closing at noon, so I would have to wait until Monday. Having a kidney stone is quite painful, so I asked if they could prescribe a pain medicine to help me over the weekend. The duty nurse said I would have to be seen to allow that, which wasn’t possible since the office was about to close for the weekend. By now it was 11:30 Friday, so to me the emphasis seemed to be on closing the office for the weekend, not on helping a patient. The nurse assured me that they would check on me Monday morning. I passed the kidney stone that weekend. I could have informed them of that on Monday, but the promised call never came!

Interestingly, regarding customer service communication, a referral from my former urologist would have resolved the issue; no X-ray would have been needed. However, he had retired a couple of years before–and they didn’t have the records anywhere! That is difficult to understand in this day of technology–a simple thing to do for patients is to have their records available for them.

As I thought about this episode, I was reminded of the concepts of reliability and responsiveness we discuss in chapter four of our book. Being able to count on our doctor to provide service dependably and accurately is vital for quality health care. Being responsive to patient needs is important as well, and in this case would not have been overly difficult to achieve. During the Covid-19 pandemic many office visits were via telemedicine. This could have been an option to perhaps allow prescribing the medication to help get the patient through the weekend with less discomfort. Also, the doctor’s office could have shown responsiveness by arranging the necessary X-ray. I also thought about why the urologist office couldn’t have accepted the referral from the primary care physician and then have completed the necessary X-ray in their own office. In other words, there were a number of options available at both medical facilities to help a patient in pain. However, both chose to adhere specifically to policy and allow the patient to suffer through the weekend. This part of the ordeal reminded me of our chapter six discussion of the negative effects providers have on customer service when blindly following policy and exhibiting little to no flexibility in following directions.

Following a few of the simple rules we outline in the book could have made the entire situation more tolerable.

So, I switched primary care physicians. The day of my first appointment with my new primary care provider was a refreshing contrast—the staff was efficient and caring. I had to wait for a while in the examining room but, unlike with my previous doctor, I was not asked to disrobe for the length of the wait! (This uncomfortable wait was often 30-45 minutes at the previous practice.) Being a little more comfortable while waiting, though a small thing, can mean a lot to a patient, as it demonstrates respect and kindness. We describe the importance of courtesy and kindness in chapters 4 and 5 of Better Customer Service.

– Ed