Opinion Decisive,regular repeat purchase makes a brand
The so-called customer care service of one of India s largest mobile phone operators regularly calls me,and then asks,Whats your name,sir?
The so-called customer care service of one of India s largest mobile phone operators regularly calls me,and then asks,Whats your name,sir? Their intention to perhaps offer additional services may be good,but their insensitivity is appalling. Having been their subscriber for the last 10 years,obviously Im in no mood to reveal my identity.
This demonstrates the tactlessness of companies who ignore per capita growth because market penetration possibilities is high in populous India. Running after new customers in new geographies is the quick-fix business expansion route. Do companies glance back to seal the existing customers emotional bond to the brand? Business houses relegate that job of acquiring emotional connect to television ads. Not on their priority is the understanding of who the customer is. Failure to connect to existing customers may shut the door of what business sustainability thrives on,the customers decisive,regular repeat purchase.
Your brands regular,repeat purchase can be extremely volatile as it is dependent on the customers capricious decision. Unless the brand knows how to lock her in,she can move away at whim.
The character of different products and services demands relevant purchase cycles ranging from daily to short,mid,long and extended terms. Milk,bread and petrol may be purchased daily,FMCG products weekly and apparel every two months. Flamboyant,gizmo lover or novelty seeker customers may buy phone handsets every six months,others every 24-30 months. TV set or AC purchase is every 4-5 years,while automobiles are changed in 5-7 years,Aircraft purchase falls into extended term of 20-25 years. In services,you could do fortnightly business of air tickets,courier or bank transactions; leisure travel hotel bookings once or twice a year,or for business every other day.
Per capita consumption of your product gives stability to your business. If your brand does not figure in the customers decisive,regular repeat purchase cycle,you have not read her subconscious mind. Korean refrigerators successfully occupied her mindshare to make a durable product into a consumable. From buying one every 20 years,people now change their refrigerators within 6-7 years.
Irrespective of any buying cycle,your brands biggest danger is the infrequent buyer,lapser or those who swing at the last moment of purchase. This happens because industries pay scant attention to their customer eco-system. Businesses spend time in backend management but leave customer centricity to hypothetical presumption. Poor infrastructure in India makes industries dependent on wholesalers who generate 40 to 60 per cent sales. Traceability of this buyer is totally unknown.
Customer loyalty programs have become prevalent but transactional,gently bulldozing members to buy,not understand their psychological make-up.
B2B businesses like Indias $60 billion IT services exports mistakenly consider that understanding the end-customers ecosystem comprises the B2C domain. They dont seem to realise that at the end,the end-customer is delivered a product. Not knowing the end-customers purchase cycle prevents them from understanding their clients business. Their clients are under regular pressure to sweep up their end-customers decisive regular repeat purchase as per industry norm,and get per capita,priority to penetration growth.
Most Indian IT companies struggle to upgrade from technical cost cutting vendors to strategic business partners. They want repeat business in healthcare,utilities,banking and insurance financial services,manufacturing,telecom,automobiles,aviation,retailing,consumer good,electronics among others,become sticky partners,increase customer wallet share. But its doubtful if they pay attention to their clients only business prerogative,their end-customers decisive,regular repeat purchase cycle.
So I return to basics. Modern industry should take a cue from the Indian mom&pop (kirana) retailers immense customer knowledge. Prioritise your brands activity in understanding the customers intangible areas. To get your target customers endorsement of I believe in it,it works well for me,it looks good your brand has to excel over competitors in quality and functionality. Once these two factors are satisfied,its easy to make the product look good to induce repurchase.
Everybody cannot be your customer. Define your core customer who contributes to 70% of your business. Capture her psychological,social and economic aspects and cater to her predictably. She shouldnt become a lapser,or your business will get peripheral and satellite buyers only.
Global fashion brand Zara from Spain has completely understood the consumers hedonistic mindframe to have a differentiated fashionable wardrobe. Accelerating industry rules to satisfy her desire state,they change the entire stock in the store every 15 days. With complete control over creativity of their 200 designers,manufacturing,distribution and retailing,they increase per capita purchase through strong spread of word-of-mouth. Their customers indulge in regular repeat purchase.
Its important for industries dependent on mid,long and extra long purchase cycles to penetrate to new customers for everyday business. If these industries have defined their core customers,and they are satisfied,they will become the brands strong ambassador to spread word-of-mouth. Internet social media can then be activated for real penetration. Such customers are more powerful in attracting new customer profile than advertising. So give second priority to assets. Instead invest time,money and effort to understand the customers physical and intangible aspects to get your brands decisive regular repeat purchase.
Shombit Sengupta is an international creative business strategy consultant to top management. Reach him at http://www.shiningconsulting.com
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