Global Crisis Blog

Shifting Consumer Mindset:

Are You Tracking It?

Oct. 30/2009

 

     Geophysicists tell us the earth is built on tectonic plates, that shift and slide — imperceptibly, only at the rate that fingernails grow, but, sometimes, when these plates collide, earthquakes and tsunamis result.

     Consumers are similar.  Their preferences change, often imperceptibly, but the changes add up to major shifts and trends — and unless we track them closely, we miss the boat.

     Consider this.  Singapore, the country, acts like Singapore Inc.  Its leaders track the country’s global rankings carefully and at the first sign of slippage, react and act.  For example, Singapore ranked only 17th recently in the World Economic Forum Global Rankings for “consumer satisfaction”.  So Singapore initiated a large-scale survey of customer satisfaction (tourists and residents) across several industries. 

    The results are reported in the Straits Times, the leading Singapore newspaper, on Wed. Oct. 28.  The results:

 “Consumer Satisfaction Drops Again!”    Across-the-board declines in consumer satisfaction in transportation, retailing, tourist services, etc. 

      Is this truly the case?  In a country squeaky-clean with faultless customer service and Asian politeness,  has customer service suddenly deteriorated — at a time when businesses know that in a shrinking market and global downturn, they must redouble their efforts to please their customers?

       What has happened, I believe, is on the customer side, not the business side.  In a global downturn, which has impacted Singapore too,  people have new respect for money, even the wealthy, and demand greater value-for-money.  Unless businesses work hard to create the perception that they are delivering more value,  consumer satisfaction declines.  What worked in 2007 and 2008 may not work in 2009.

      The story is told of an old married couple…the wife complains, dear, we used to sit so close together in the car!  The husband (driver) replies:  Sweetheart — I haven’t moved.  

       Businesses haven’t “moved” in the way they treat customers. But the customers have.  Businesses should have moved in response — marketing, advertising, packaging, product design, pricing,   everything to build and strengthen the ‘value for money’ proposition, which has gained new importance in the downturn.   This is the real message of Singapore’s survey.