Where Will Your Customers Be In 10 Years?
This blog post is from my radio show this past weekend called Red Hot Customer Service on Talk 1300 AM, where I interviewed Chris Bowcutt from blue.0 (scroll to the bottom to listen). If you're unable to listen to my weekly show live at 10am on Sunday mornings, the show is archived on the station's Web site and connected to this blog.
So what was the theme from Sunday's show? Basically, if your customers aren’t with you, you're going to be out of business. I have never forgotten what my father said: Find a customer, get them a product and you’re in business. If you think about your customer first you will get the right products. My business experience leads me to believe that businesses get stuck on their products and try to get their customers to buy them. And then if the customers don’t then it's “their fault”. In actuality if customers don’t buy there’s more than enough blame to go around.
In 2006, the Web changed from published content to user-generated content. With Web 1.0 in 1996, few Web sites published content for 45 million global users; user generated content was barely on the radar. This was the era of what was known as push advertising; businesses put it out there for everyone to see. 10 years later, a shift happened, the Web moved from 1.0 to 2.0, to what I call the ‘conversation.’ Think of 1.0 as one way publishing and 2.0 as including the customer in the equation. In 1996 there were 45 million global users and in 2006 there were one billion plus global users.
What are you doing in your business to accommodate this change of how customers are using and creating information? Have you moved your business to the era of the Social Media Revolution?
Whether you can make this change will provide the answers for the health of your business. Most businesses have been relying on their primary customer — the Boomer — for their business health. The boomers have been marketed to death and the hardest hit over the past two years. As a nation, businesses have lived off the baby boomers, the richest and most privileged generation of the world. Armed with plenty of cash, credit cards, pensions and insatiable appetite for “everything money could buy” , this 78 million strong generation made our economy. In 2000 things changed, tight markets, less money, collapse of banks, automobile dealers and you name it, the American dream was looking dismal for the group who had everything. All of a sudden priorities began to change.
If a business had been paying attention, they would have realized that because of the age of the baby boomer, we were due for an economic slowdown!
If you intend to thrive or survive, your business will have to be acclimated to what this group is now doing. What will they be thinking about? As this age group begins to look at the “winter” of their lives, many will be preoccupied with their health and trying to stay physically fit. Whether they spend money on grandchildren, traveling or vacations will depend on how they have fared through this recession. If you are planning on making money or selling your business over the next 10 years, it will only be valuable if it has customers. Are you investing in recruiting the next generation of customers for your business? If your business is all about ‘stuff’, do you have the right stuff?
How will you communicate with this group? This group may have been slow starters when it comes to technology but don’t discount them online. Sixty nine percent of Boomers do online banking, research, book their vacations and travel online. Boomers are the fastest-growing age segment on social networking sites such as Facebook and many log in at least once a day. How did they get there, by younger family members? In 2007, the percentage of Boomers consumer social media was 46% for younger Boomers (ages 43 to 52) and 39% for older Boomers (ages 53 to 63). By 2008, those numbers increased to 67% and 62%, respectively.
Click here to listen to the show:
Red Hot Customer Service – "Social Media" – April 4, 2010
Next post: Getting to generation X and Y.
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