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– This is a great
question. First we need to look at merchants and consumers as not only
people who purchase and provide goods and services, but also as
people who live in society and are influenced by the events and
conditions of that society.
The truth is that
100 hundred years ago (and longer) all merchants were relationship
sellers for the reasons that people bought in that era – location and
trust.
Transportation
was slow and customers purchased close to where they lived. Merchants
usually lived in that same location and were neighbors to their
customers. This created a strong relationship.
Merchants not only
knew their customers by name, but knew everything they bought, how
often, and how they paid. Even when there was competition customers
remained extremely loyal to their neighborhood merchants.
Lets fast forward
to post World War II. After long years of pent up demand people wanted
new
products. Soldiers were home from the war so there was
plenty of labor, and the demand curve shot up like never before.
Transportation
was improved so people could go further to purchase goods. And
purchase they did. The baby boom and a “Keeping up with the
Jones’ mentality” was further fueling huge demand.
Another change in
society added to the situation – TV. When TV became popular in the
1950’s there were only 5 channels available so mass advertising had
an incredible reach. If a company produced a product with any value
mass advertising almost guaranteed sales.
Because of this
buying frenzy companies were primarily
concerned with getting the latest products out to buyers as soon as
possible.
The emphasis was
on production and advertising with very little regard to how well the
products were satisfying customer needs. There were plenty of
customers to go around.
This was the
product centered era of business. Fast forward to the 1980’s and a new
level of competition (such as Japan emerging as a prime competitor in
some industries like autos).
Choice and quality
for consumers was now pushed front and center as a reason customers
buy.
Lets fast forward
again to 2004. Location is not an issue anymore in fact the internet
is taking location out of the equation for many businesses. The
painful lessons learned in the 1980’s produced better quality products
in almost all industries so quality is not prime reason to buy.
So why do
people buy in the 2004?
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They want convenience and trust.
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They want New products often.
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They want choices and quality.
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They want an easy buying experience.
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They want the right price.
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They want it customized to their individual preferences.
In other words
customers want it all!
In order to
satisfy today’s customer, businesses have to combine people skills,
efficient businesses processes, and the necessary technology to make
it happen.
This comprises customer relationship management.
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