The value of customer input

Recently, A.G. Lafley, chairman and CEO of Procter & Gamble (P&G to most) announced that “the customer is boss.” He actually went so far as to say "What the consumer's complaining about gives us opportunity to learn what we can do better.”

The quote, and the concept of customer as king garnered news around the globe. If you don’t believe me, check out the article in The International Herald Tribune on April 29, 2008 or, here on this blog a couple of days later.

But hasn’t, shouldn’t, the customer always been king?

Not so much.

In my consulting practice I work with companies large and small who have lost their way, and are looking for a good strong path to success. They’ve lost market share and/or mindshare, had a few too many product launches that were flops, or they may simply have been out-marketed by their competitors. What is often common among these companies is that they’ve not paid a whole lot of attention to their consumers.

Over the last decade of so, market research budgets have been slashed, and time-to-market goals have increased. Both have contributed to the bypassing of consumer input into the process of developing and marketing a product.

But there is hope.

P&G, Kraft Foods and other CPG (consumer packaged goods) companies are re-discovering that consumer feedback early in the product development process -- taking notice of its customers, is paying off. They’re making visits to consumers' homes, localizing product to adjust to geographic differences in consumer tastes. They have tightly woven the role and satisfaction of the consumer into their organizations.

CPG companies are, and should be, at the cutting edge of listening to their customers. When they do, they see sales, profits and stock prices climb.

This return to the customer as king—or “boss” as Mr. Lafley calls them, is good practice for businesses big and small. It is best to remember that even a business-to-business product is being bought by an individual—a consumer. Some of the best brands are ones that have rabid customer bases who believe that they “own” the brand, and will only accept a “perfect” brand experience—think about the success of Apple in this way.

I sometimes get a roll-of-the-eyes from administrators, and inward thinking executives when I talk to them about bringing the voice of the consumer into their organization—either by creating consumer personas that put a human face on their customers, or by assigning Consumer Advocates as an official job title. Worse yet is when I suggest a consumer advisory panel that interacts directly with company executives.
However, those who ignore their consumers, are doomed to suffer their wrath.

Let’s face it, today’s interest in consumer generated content, of online communities, of consumers creating their own ads on YouTube, is all a reaction—a back lash, to the idea that consumers are being ignored within organizations, and their resulting marketing, and products are being forced down the consumer’s throat.
I often speak on the topic of how the consumer is becoming increasingly sophisticated in their consumption of advertising and marketing. They tune in when they are entertained and informed with a genuine and authentic voice, and tune out when they smell marketing hype, or see products that are clearly designed (at least in their mind) to be taking advantage of them—of ignoring them, as consumers that can vote with their feet.

Coke and Pepsi bottlers are currently considering abandoning the 20-ounce bottle sold in convenience stores. Sales are slumping. They think consumers might think the bottle is too big, or maybe too small. But perhaps, they’ll find, as they begin their customer research, that it is mostly about price—consumers are savvy enough to not want to pay the same price for a 20-ounce Coke that they do for a 2-liter bottle in a grocery store. Nor are they interested in drinking a bottle that has more fluid than could fit in their bladder. Or, perhaps, they’ll discover something none of us had thought of—but the consumer knew all along.

They need to listen to the consumer as boss. And remember, the boss is always right.