Your customers are the Potter, Your value proposition the Clay

A few weeks ago I critiqued the popular RFM model of customer segmentation, mostly for its un-actionable results, but also for its abandonment of a customer-centric approach to marketing. Too often I observe, or am a recipient of, a marketing strategy built on the fatal assumption that the needs of a potential market can be sculpted to fit a company’s value proposition.

No doubt you’ve been on the sour end of this stick; a direct mail offer or sales pitch that is beyond your price range, or is simply irrelevant. This is the result of a marketing team that asked the wrong questions: “Who do we want our customers to be, and what do we want them to buy?” Smart marketers need to avoid the tendency of drifting into fantasy consumer land, where customers bend like wet clay to the desires of the Master Marketing Potter.

On the contrary, we live in a world of increased globalization, where savvy consumers know what they want, have deep access to product information, and are a single click from your toughest competitor. This is why customer-centric companies will continue to outshine and eventually bury those that start a campaign simply with their margin goals in mind.

Don’t misunderstand me, EVERYTHING in a for-profit business must come down to just that, profit. But hopefully your company is shooting for long-term profits and sustainability, as opposed to quick cash and a temporal existence. This being the case, we can see a clear distinction between those companies that develop their products and promotions according to the dynamic consumer market, and those that don’t. Consider Apple, Toyota, Wal-Mart. All companies that have consistently asked the right questions: “Who are our customers, what do they buy, and how can our Value Proposition meet their needs?”

The answers to these questions will most likely result in a “Persona“. Which, according to Leigh Duncan at mpdailyfix.com, is “a representative profile, which summarizes a key demographic target”. Whether or not you institute the use of Personas to drive your marketing efforts, the idea is worth wrapping your head around in order understand the customer-centric approach.

Successful companies are just as in-tune with the psychology, behavior, and needs of their potential market as they are with their own financial goals. This results in more than just increased sales, but it results in repeat customers, viral exposure, insight for relevant upselling, and the potential to forecast changes in demand to win market share.

My advice is to switch positions with your customers: Envision your products and services as wet clay in the hands of a dynamic and demanding Consumer Market. How malleable is your Value Proposition?