Wednesday, December 6, 2006

Small Business Marketing Tip A Controlled Package Test

How can you find out what your customers like? If you ask them, you'll get a definite clue as to what they think they like. It may point you in the right direction, but…

…observing what they do is an even better bet.

Surveillance cameras are in use in more and more small businesses. Theft prevention is the number one use of this tool—but have you ever thought about using the camera for market research? What if you want to watch what your customers do?

One test is to set up two areas of the store with different merchandise--or signage or layout--and then see how customers react to that area. The big idea here is to be careful to only alter one element at a time. Remember your high school chemistry classes where you employed the concept of the “controlled variable”? In any test; you might change the temperature, or the pressure, or the mix of the chemicals, but never both at the same time.

Here's another test: give your customers a little something at the point of sale in Checkout Lane #1, and then nothing except the usual light cashier-banter in Checkout Lane #2. Think of something easy and inexpensive and universally liked, such as a lollipop or a piece of gum or a little smiley-face sticker or two to give to the customer's kids or grandkids (you know how much kids love getting stickers).

Set your surveillance cameras so they can monitor the customers' reaction in both checkout lanes. Remember, the controlled variable here is the presence of a small free gift supplied to every customer immediately after the sale. Monitor and compare the reactions: are the people receiving the free gift a little happier? Just a little more satisfied?

The next step, of course, is to show the tape to your Bloom Team and see what they think, and decide how best you can incorporate tiny changes in your store's environment to effect a change in customer perception.

Actually, it's often a series of small changes that separates the winners from the also-rans. And the winners snag a much greater share of the profits.

Remember: Brand (who you are) + Package (your Face to the Customer) + People (customers and employees) = Marketing Success.