What Consumers Want
When the economy is in a recession and times are tough, it is the best time to look around and figure out what it is exactly that consumers want. I have found that during these times, I am able to see more clearly what to deliver to consumers that will make them buy even in a down economy. So what do consumers want?
In order to understand what consumers want, we can quickly look back at what consumers wanted in the past and how that has helped to evolve into what consumers want today. Here is a chart to break it down simply:
The Evolution of What Consumers Want
Starting at the bottom of the chart, commodities such as natural resources and agriculture were top sellers and it was all about supply and the availability of the commodity as a product. Then, commodities shifted into goods and products. In order to sell these products, businesses had to control their costs- making it affordable for the consumer. Along with goods came services. Companies have continued to improve their quality of service so that the consumer will come back. Now, in this new age, comes the fourth economic output that is still transitioning into the marketplace.
Highlighted in red, is the fourth economic cycle, what consumers want now.
What consumers are looking for are experiences. This can be anything from themed restaurants, to Disney theme parks, to Starbucks coffee. What these all offer are unique, memorable experiences. Think about how your company or the company you work for can transition itself to render an experience like no other in their marketplace to attract customers.
Joseph Pine on TED.com
I just watched a presentation given by Joseph Pine, which inspired this post. I want to invite you watch it as well.
The Next Economic Output
I believe the next economic output will pertain to the service industry. Companies who provide a service tend to focus on the quality, yet I believe that they are missing a majority of what they client is after. If Joseph Pine is correct in saying that consumers are after experiences, then the service industry would be the best place to provide unique experiences to their clients. Utilizing the concepts of themed restaurants, theme parks, and the character that Starbucks exudes, service companies could create a powerful combination that could give them a competitive advantage in their market. More on this soon…
More Information On Joseph Pine
From Ted.com, here is an excerpt of his bio:
Joseph Pine’s career as a business coach began at IBM when he did something truly unorthodox: he brought business partners and customers into the development process of a new computer. Taking from this the lesson that every customer is unique, he wrote a book called Mass Customization on businesses that serve customers’ unique needs. Later he discovered what he would coin the “Experience Economy” — consumers buying experiences rather than goods or commodities — and wrote a book of the same name.
Website: Strategichorizons.com
