decision-making process .
Another notable example is the case of real estate where you are targeting family units . In this case , the dynamics of husband-wife decision making and influencing strategies become more apparent . You will need to consider the interests of both the wife and the husband , and if they have teenage children , they might also participate in that decision . Therefore , the question of who makes the buying decision , is important and at times complex . Understanding who makes the buying decision will help you clarify who to target with what information , and where to direct your communications and other marketing efforts .
Third Question : Where Do Customers Buy ?
You need to know the kind of places where customers buy , or use your type of product , including online and offline outlets . Some products are sold in supermarkets , pharmacies , grocery stores , or even openair market . Understanding this question of where people buy , helps you to manage your distribution effectively . It guides you on where to place your products in order to connect them with customers based on their regular buying habits . Because it ’ s difficult to change customer buying habits , basing your distribution strategy on where customers regularly buy is a sure way to attract , win and keep more of them .
Question Four : When Do They Buy ?
This concerns the time or occasion when customers purchase or use your product or service type . It ’ s important to know the times when your product or service is needed . You need to understand the demand patterns so that you can organize for product availability at the right time . This will help you ensure that you manage logistics and distribution effectively . And that you don ’ t face shortages when demand is highest .
A good example of how this works is to look at how a restaurant , will sell more coffee and tea during the cold season , and more juice and ice cream during the warm season . Furthermore , some products are also promoted for special occasions , such as New Year , Mothers ’ Day , Fathers ’ Day , Valentines and the like .
The hotel and airline industries operate on seasonal basis , and need to have a good understanding of the customer drivers for buying at each time . You could also use information about occasion of purchase to help broaden customer usage of your product . If in your information search you learn that your customers associate your product with limited use occasions , you can work to shift that perception , by communicating to show more suitable use occasions .
Question Five : How Does The Customer Buy ?
This question concerns how customers go about the actual process of making a purchase . It relates to the operations or methods they use to buy . You want to know what quantities they buy , what pack sizes they prefer ; the frequency of purchase and their preferred modes of payment . This information will help you to facilitate easy and efficient buying operations .
Understanding this issue of buying operations will help you to design the right packaging for your product . The insight on how customers at the bottom of the pyramid prefer to buy in small units and buy more frequently led many businesses to adopt the strategy of micro packages . This enabled many companies to extend their reach to a larger number of customers .
Another aspect of this question is to consider how customers prefer to make the transfer of value in exchange to products and services . Buying is a social exchange process and payment options are a major part of that process . Understanding the customer perspective on this issue will help provide the relevant payment methods , whether it ’ s cash , credit card , e-wallet or mobile money , such as MPESA . In some cases , the preferred option includes a lending component , like hire purchase or leasing . In other cases , like in rental houses , the decision has to do with how much down payment to demand . In other sectors , the question of how to reward early payment is important .
In Conclusion
These are the five questions that you absolutely need to ask in order to understand your customers better , and to design effective marketing strategy . This is even more critical during these days of great disruption and turbulence occasioned by the Covid-19 pandemic . But as Peter Drucker put it , “ the greatest danger in times if turbulence is not the turbulence . It ’ s to act with yesterday ’ s logic ”. Therefore , in a world where so much has changed in recent times , we are constantly reminded of the importance of adaptability . These five questions will help you to understand the changing behavior of customers , and how you need to realign your business to stay relevant .
Dr . Catherine Ngahu is the founder and Chairman of SBO Research , a company with a service footprint in 23 countries in Africa . She can be reached at : CNgahu @ sboresearch . co . ke ; Search for ‘ Catherine Ngahu ’ to follow her on YouTube .