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What Makes the Customer Buy from One Business over Any Other
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Customer loyalty is a gment of the imagination for anyone who thinks such an animal exists Customers are only loyal to the vision they see through their own eyes Roadblocks to the mounting of sales come down to three generic essentials: price, quality, and service being offered Rarely, if ever, will any business possess all three to advantage The price advantage (mass merchandising, for example) usually gives up quality or service or both, the service advantage might give up price and possibly quality, and the quality advantage most likely gives up price and might give up service These distinctions identify how consumers view dealing with any business through their eyes Planned architecture that fails to realize how the consumer personally views the total shopping experience at a new enterprise also reveals the initiate s lack of thought about going into business Time, space, and matter do still apply at the point of purchase Early in the dot-com buildup, founders learned that deeper discounts than antic-
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ipated were needed to jump-start consumer buying They also gradually learned that discounted selling would remain the high need in the consumer model Giving then reneging doesn t work Thus, they should also have known that the most initial competition would come from the massmerchandiser, the deep-pocket specialist in discounted merchandise It s doubtful that a gnat on the back is worrisome to any elephant Wal-Mart, for example, is the leader in wholesale leveraged buying They can afford to discount and still maintain pro table margins The dot-commer can neither buy nor sell on such competitive margins and stay whole Attacking service or quality or both might have led to better choices
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Time is the precious commodity that creates wealth Time to make, to package, to deliver, to retool, and to repeat the processes over and over again pits every business owner against everyone else in the game The more ef cient they become with their time, the more they hold an advantage over everyone else Milt Friedman said that in ation is too much money chasing too few goods During past eras, in ation of this sort was more in evidence because of the time limitations on production Today, information technology equals saving time, cutting costs, increasing profits, and decreasing error and waste Every corner of the globe is now the shopping haven for even the leasttraveled among us Click a mouse today and you are anywhere in the world you want to be Computers are becoming as commonplace in the household as knives and forks In a decade, nearly everyone will be using them more than the phone In two decades, few people will remember when we didn t have them Space, once the constraint of doing nearly everything, will only advocate de nition for traveling outside our universe Teleporting matter becomes real Products and services extended by a thread, through data bytes, will weave the new shopping interface into common habit When we do go out to shop, it will be for the antique experience Behemoth real-estate structures will not be needed to house the increasing thousands working from their homes I know this last paragraph may sound a bit ridiculous, but the framework is already in place, and for even more unthinkable events to happen to life and the shopping experience If any great change occurs in the equation for how we value companies, it will lie in how we view present and future usages of time, space, and
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matter in business operation It will lie in how we keep up with changes made possible through information technology for consumer purchasing It will lie in how we view the impact of increasingly savvy tech-oriented competition It will lie in how we as tacticians comprehend the growth of the New Era business enterprise It will lie in how well we learn what we don t now know The math for doing valuation work doesn t change, but the people doing the math must I know we will both learn and make essential change
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