Why the fear of knowing your market?

Why is business afraid to learn what their customer has to tell them? Maybe if they don't ask them they won't have to change their business model if they learn they are no longer providing a need that their customers want. Maybe it's just easier to die a slow death watching customers go to the competition down the block. For the past year I have been travelling around Alberta and I find it interesting that most businesses do not believe in research that helps them better understand their lifeblood; their consumer or customer.


Often the SME believes they already know the market they are selling to. They've worked in it for years, or they are out meeting customers every day. They find it difficult to get their head around paying for consumer insight they think they already know. The point is do they really know what is driving consumer choice right now? Do they really believe that what consumer's did in the past 10 years will be what they do today? Do they really believe seeing consumers everyday is the same thing as understanding their consumers' emotional drivers and trigger points?


When it comes to paying for some insight sessions and the insight report generated from them, many balk because they are not familiar with the benefits it will have on their business. This is an attitude that businesses in the West need to face if they want to be differentiated and sustainable going forward.


Simply put, if you do not know who you are communicating with, and how their ever changing beliefs impact every aspect of your business, then you will not succeed. Spending time and money on uncovering what makes your lifeblood tick is probably the most important investment you will make in these uncertain times.

Take Stock Now

The task of a business leader is to overcome the paralysis that these tight economic times can bring, and begin to shape the future for your company.

To do this you must start by taking stock. What do you really know about your market and industry? How has this current state changed it? Guaranteed it will not be the same as it was four months ago, let alone when you did last years strategic plan (if you did one).

By taking stock of the consumer and competition you will gain understanding that will result in critical and timely changes in strategy. These strategies will need to take into account the high likelihood of change that is still to come, and differentiate by addressing the barriers that will stand in the way of your stated mission and objectives.

In short, companies that spend time and money figuring out what matters to their customers today, and then cutting or funding projects accordingly, will be the companies that thrive in the months ahead.

So how many businesses in Western Canada are doing just this. I dare say not enough. Too many are becoming paralyzed.

"Sure we can build you a new site, but why?"

I was speaking with a peer the other day and the issue of thinking versus doing came up. We were talking about how the advertising industry has continued to slip further in the area of ability to think bigger picture about their client's business challenges. Many marketing communication firms can "do" stuff but how many can really provide thinking that will help grow their clients business. How often are agencies saying "Sure we can build you a new cool site, but why?". From what I see not often enough.

In this time of pressure, the ability to think is the most precious ability of all, and the marketing services industry needs to be training its people to both "think and do" in order to be successful. Clients want to believe they are paying for minds to help them solve their marketing and business problems. Anyone can pop out a logo and some creative, the question is why is this the content that will build their clients business. I mean really, why?

It's Not Back To The Future

A recent quote from McKinsey Consultants e-newsletter could not have said it better.

"Companies that follow the playbook from past recessions will probably chase markets and segments made less attractive by the present downturn and focus too many resources on traditional marketing vehicles and front line salespeople. To avoid these costly mistakes, marketing and sales executives must dynamically reassess their geographic, customer, advertising, and sales force priorities, with constant attention to the ever-shifting economics of this downturn."

The game has changed so much since the last downturn. Business needs to take the time to assess where they are going, who they are best to be talking to, and what marketing tools are the most efficient and effective at making an impact.

This means you have to have some means of assessing or measuring your consumer, market and industry performance. Your "front-end" thinking needs to be recalibrated in this new world to keep you competitive, differentiated and sustainable going forward.

"Front End Thinking"

While the marcom world obsess with all things interactive, who in the organization is doing the "front end thinking'? Really though, as we chase after the coolest web site or web 3.0 application, who is taking the time to see if the insights that are driving the overall organizational communication plan are sound, differentiated and actionable within the environment it operates?

I have met so many web firms, interactive specialists, web n.0 people, and this is all great as it is indeed the current "center of influence" of marcom. However, all this effort around content and the latest way to deliver it, is useless unless someone is minding the overall organizational brand "insight and strategy" store.

When did you last ask, "how do we generate our insights". Are they really insights or just verbatims of what some really tired consumers or customers told us in the last research we did.

If the insights are weak, then the strategy is flawed. If the strategy is flawed then the ideas that spring from it are less than big. If the ideas are not big then the content flowing from it, offline or online, will not be differentiated. If the content is not differentiated then you have little movement in customer action or your bank account.

So while you are being impressed by the latest of the online world, remember to ask about your organisation's "front end thinking".

How to spend 500+ Billion

A friend from Asia mentioned something recently that I think bears repeating.

"quite a situation we're in, the US is spending $750bn bailing out banks /auto (and in essence getting nothing for this save avoiding bankruptcies) and meanwhile China is spending $550bn on capital infrastructure investment that will surely increase their economic and commercial competitive advantage for the end of the recession !! "

I believe strongly that Canadian business needs to take a long hard look at their China Business strategy, because going forward China is the growth model for your business.

Only 17% Have a China Strategy

A study released one year ago by the Canadian Manufacturers and Exporters stated that only 17% of Canadian manufacturers had a China strategy. Furthermore 20% did not know if they had a china strategy or not!

Just look at the headlines these days that deal with economic gloom and the retrenching of consumers in the United States, and then ask yourself why any smart Canadian business would not at least be developing their China Strategy.

The rewards are huge if you do your homework and get the proper connections built. It is not easy but gaining access to what Goldman Sachs projects will be the world's largest economy in about 10 short years, demands the effort.