Thursday, February 26, 2009

Consumers and Customers

Hi to all,

When I work with my clients, I like to get them to think about two classes of people (in the B to C world) or two classes of businesses (in the B to C world). These two classes are:
- Consumers (some person or business who might buy your product/service
- Customers (some person or business who has purchased your product/service

Consumers are not "everyone" or "every business" out there. Consumers are candidates to buy your product or service. Targeted consumers should meet these three criteria, that I saw in a recent blog by Seth Godin:
“You need a group of consumers that:
1. You can identify and reach.
2. Have a problem they want to solve, and your solution can address.
3. Have a desire and the ability to spend money to solve that problem.”

Once you have identified your targeted consumers, you can begin to market to them using my "4 A's" approach (Awareness, Attitude, Action, and Advocacy).

If you've targeted your consumers using Seth's three criteria, you can then make them aware of your product/service (since you know how to identify and reach them).

You can make a relevant offer (since you know they have a problem you can solve).

You can make a sale (since they have money to spend to solve the problem, and your product/service can address the problem).

And as the sale then transforms these consumers into your customers, you can continue to encourage their repeat purchases and advocacy of your products and services to other consumers.

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