We just finished a Facebook Live video with Chad Tongco of Primaris Market Development and I feel compelled to share the discussion points with you right away. In the video, Chad discusses a study done my McKinsey and they found that 75% of consumers are no longer described as being loyal to their previously purchased brands – this is our window of opportunity as small businesses! This is our time to capture market share!
Moreover, Chad also shares how small businesses can use this knowledge to increase market share and then retain it. Of the many avenues small businesses can take, Chad emphasized the importance of meeting essentials first – interestingly, elasticity (or price) was not the major driving force in this brand loyalty shift; rather, it was the ability to deliver on basic essentials. Focus on fulfilling the essentials first, and then refine; price was not a leading factor in this consumer behavior change.
Additionally, Chad also noted that small business should cater to what is known as the “home-body” – the consumer that now spends a majority of his/her time at home. Consumers are continually spending time in the digital/virtual space but they are physically at home and as small businesses strive to reach these consumers, we must take this into account. Undoubtedly, it impacts how we manage to capture their attention and then retain through the customer journey process.
In order to achieve these goals, however, it is imperative that small businesses understand their current customer base as this is pivotal to this strategy as well as the overall success of the small business. By understanding your customers well and having a relationship with them, you will be able to acquire extremely valuable information and data. This, in turn, will help you identify what is important to your customers and enable you to take action! Here is the link to the full video.
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John M. Beaman
President of The McGraw Council Membership, Inc.