I met with a client a while back that owns 6 restaurants. Two of them were making money and the others weren’t. When I looked at the menu everything was organic and health conscious which I loved but I didn’t live in the area. When I started to talk to customers in the areas of the restaurants that were failing it was clear that they didn’t care about organic anything. On our second meeting he had the facts and was now face with one of two options. That either he moved his restaurant to a better area or he changes his offering to something more convenient and low price.
I always tell business owners that you never know how fast you’re running until you’re running against someone else. In my first business I was fortunate to have two major competitors open right next door to me. I say I’m fortunate because it forced me to differentiate myself. It forced me to soul search. And more importantly it gave me a better understanding of consumer behaviour that I’m sharing with you here.
There are 8 key psychological reasons why someone chooses a business over another.
- More selection
- Bigger discount
- Advice and assistance
- Top-of-the-line products or service
- Speedy service
- Going the extra mile
- Better warranty or guarantee
These are things people actually care about.
If you’re opening a new business it’s important to perform a SWT analysis. This is where you evaluate your strengths, weaknesses and trends in relation to your industry/territory to understand what prospects are getting, not getting and how you can serve them best.
If you have an existing business, it helps to learn what your customers value and to make sure you are maximizing these values in your operations as well as your marketing. Knowing why you matter and aligning it with what customers want sets you up for success and fuels a collection of choices that you have to make every day. And what we do everyday, becomes who you are.