Then we need to identify what benefits the customer is looking for when they make a purchase – their “buying factors”. This can be tricky. A good starting point is conventional market research, using surveys to ask customers what aspect of the product or service is most valuable for them. However, much of this decision may be made at a sub-conscious level and customers are rarely able to articulate emotional benefits. Deep behavioral anthropology and/or quantitative method like conjoint analysis can provide a more accurate picture than surveys alone. Management judgement is useful as a cross-check, but is potentially dangerous since we want to understand the real customer perspective, not what management thinks the customer want.
The most important thing to remember is that buying factors should always be identified from the customer perspective. One trick to help you retain this mindset is to always use customer language. For example, no customer is going to say that a retailer has “range authority”, that is an industry term. Turn it into something the customer will actually say like “a broad choice” of products.
Then we need to identify what benefits the customer is looking for when they make a purchase – their “buying factors”. This can be tricky. A good starting point is conventional market research, using surveys to ask customers what aspect of the product or service is most valuable for them. However, much of this decision may be made at a sub-conscious level and customers are rarely able to articulate emotional benefits. Deep behavioral anthropology and/or quantitative method like conjoint analysis can provide a more accurate picture than surveys alone. Management judgement is useful as a cross-check, but is potentially dangerous since we want to understand the real customer perspective, not what management thinks the customer want.
The most important thing to remember is that buying factors should always be identified from the customer perspective. One trick to help you retain this mindset is to always use customer language. For example, no customer is going to say that a retailer has “range authority”, that is an industry term. Turn it into something the customer will actually say like “a broad choice” of products.
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