13th Feb, 2008

From Status QUO to Wholesale Change (continue…)

Again, for these customers the amount of time demanded is crucial. They prefer to get the house remodeled all at once, rather than spread the project over several years. Once they take the leap into a new computer system or an e-mail provider, they don’t want to think about upkeep or other hassles. In fact, the less they have to think about their system for any reason, the more content they will be. Constant reminders and offers of new bells and whistles will be resented unless they require little, if any, time and effort, like AOL’s automatic upgrades that simply take over the customer’s PC and feed themselves into the system. Of course, not everyone is averse to change. For example, the customers represented in the top of our change axis are ripe for it. Far from savoring stability, they are motivated by the promise of new possibilities. Their problem is the opposite of preserving the present; they are figuring out ways to tap the future. They want as many options as possible and are more than willing to spend time making them. Not that it takes them very long to decide; on the contrary, their needs are so pressing that it is hard to describe them as patient folk.

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They want action and don’t want to be slowed down by suppliers. They want to be showered with information, offered free product demonstrations, and provided with unexpected technical support. They would rather deal with a new product’s inevitable glitches and shortcomings than wait out a delay in its introduction. Though they will complain—loudly—when anything goes wrong, they won’t drop you as a supplier as long as you keep them involved. They want to be listened to and want suppliers to solicit their input, particularly if that fuels further innovation and improvements.

That is the whole idea of what seems, at first glance, to be a high-risk gamble in the software industry: Companies launch new products by giving free copies to thousands of hackers and other venturesome users. In practice, the giveaway pays dividends. The early users form, in effect, worldwide communities of test-drivers who reward the companies by suggesting new twists and refinements and by getting rid of their products’ bugs and errors. The companies have identified and capitalized on one of the most change-avid audiences on earth.

With change-ripe customers, the supplier’s challenge is not to get their attention but to retain it. Their attention span is a practiced flicker; they’re eager to check you out, but you won’t merit a second look unless they considered the first one worthwhile.

What they value are activities and products that make them feel special, in control, or ahead of the pack. This may include keeping up with the latest fashion, having the newest technology, going on the most exotic adventure vacation, or even driving the hardest bargain for a car (these people actually enjoy haggling or anything else that gives them a sense of accomplishment and a feeling of control). These customers have a permanent appetite for the latest and greatest, the better alternative, and the most unexpected deal. “If you surprise us and give us more,” they tell their suppliers, “we’ll make time for you.” Likewise, as business customers, the change-ripe are hungry for what is new and different. They are always on the prowl for better ways to run their operations and exploit the riches of the new marketplace. Their use of time is linked to their business priorities. Some spend ithunting for alternative sources of supply or for better prices.

Others will use time to update business practices and make theirofferings stand out. As a supplier, you earn their time by understanding what they want and helping them achieve it. But if youdon’t keep up with them, don’t be surprised if they find othersources of supply.

Again, no consumer behaves the same all the time. We tend either to welcome change or to seek the comfort of stability, but for some purchases our attitude will alter. Still, the message is clear: To appeal effectively to different kinds of customers, suppliers need to know how open each customer is to changing and exploring alternatives. What appeals to one kind of customer can be a turnoff for others. If you are too gentle or too staid or don’t offer enough choice, the fast changer’s attention will be lost. Meanwhile, stability seekers won’t give you their time if you move at Internet speed or overwhelm them with alternatives.

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From Status QUO to Wholesale Change (continue…)

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