Free Digital Book: The Four Pillars of Guaranteed Business Success
What People Say is Not What They Do
People say they love the Vegemite brand, and were upset when it was sold to an international food producer. In fact Vegemite is consistently rated as one of the top brands in Australia. Only one problem, people don’t buy it.
How often have we heard that Qantas is a national icon in the last couple of months, but yet only 20% of us choose Qantas when we fly internationally and big inroads have been made by low cost domestic airlines into the Qantas market share. Qantas basically depends of the business traveller who will pay more for reliability, but even that point of difference has taken a bashing in the last year.
Another survey, that the government likes to promote is that people are favourable to paying extra to reduce carbon emissions, but again when you look at the voluntary carbon offset schemes offered by airlines which might add just a few dollars extra to your ticket price, almost no-one takes them up.
I was speaking with an organiser with a well know professional organisation recently who told me, that a member survey indicated that there was strong support for a workshop on accounting for small business, but when they put the workshop on at a highly subsidised price for their members, the take up was small.
There is a big risk when asking people about your products and services, that they will just tell you what they think you want to hear. Often a response is more about showing themselves in a good light, supporting worthy objectives, such as supporting Australian brands, or particular causes. This can often be a result of the way the questions are phrased encouraging the ‘correct’ response. Thus the chasm between what they say they will do, and what they are actually prepared to pay for.
Businesses cannot be built on the good intentions of your customers. The only real test is to see what people will buy and then ask them why they did. Which is why many businesses have trials and pilots before they commit to a full scale launch. This allows them to refine their offer to better meet the actual desires of their market.
While buyers will claim price is not their reason for buying, for many it is. Unless your strategy is to be the cheapest, you need to have a way of determining who actually means what they say. What is your strategy to understand the real motivations of your market?
May Your Business Be - As You Plan It!
Dr Greg Chapman - The Australian Business Coaching Club
Subscribe to This Newsletter