Five rules for understanding a new breed of consumers

“Not changing with the times is a fatal mistake for any company or brand,” says Philip Hendrickse, MD of Strats Inc.

At the helm of Strats Inc for 10 years, he has seen many shifts in consumer trends and strategic marketing. These critical insights have helped clients stay ahead of the pack in terms of media communication, customer services and market research.

“A client must remain future-focused and always keep youthfulness of mind,” he stresses. “The process of learning is never finished.”

Strats Inc believes we are witnessing a new breed of consumers in South Africa. Savvy, smart and sometimes cynical, these are people who know how to access information quickly and to block out intrusive media messages, people who want a brand to reflect their lifestyle and personality and, more importantly, want ongoing value for their money.

Engaging with this new class of consumers will mean playing by a different set of rules.

# Rule 1 - Consumers must be invited into a relationship with your brand

South African advertising cannot continue to patronise the consumer as it did in the past. This has been the major shift in understanding today's consumer. Brands that have traditionally talked to the consumer now have to engage and interact with their target market in order to win trust.

It is important to see a brand as a promise. If marketers are indeed going to interact and engage successfully with their target market they in fact need to allow customers to embrace their brands in their own way thereby establishing a platform of trust.

Social networking often means that the personal experience of others - and the speed at which good, bad or indifferent experiences are shared - can mean almost overnight success or failure for a brand.

# Rule 2 - Target your market

The fragmentation of media opportunities witnessed in South Africa and internationally, effectively mean the consumer can be more strategically targeted. A common mistake is not segmenting a client's market properly, leading to wastage.

SAARF's traditional Living Standards Measure (LSM) marketing matrix has to be combined with a more holistic lifestyle understanding. Today's consumer can't be rigidly targeted by household income or LSM's as these changing lifestyle needs and wants fall across many disparate groups.

For example, if your audience is comparatively small or niched, it makes no sense to spend great sums of money on TV advertising when other media opportunities would better serve your needs.

Leveraging social media is important as your product gets talked about, passed on virally and engaged with in the correct arenas.

Strats Inc is uniquely positioned to interface with advertising and digital agencies, as well as media buyers, to find the most effective vehicle for a brand's message.

# Rule 3 - CRM is vital in delivering value to your consumers

Whether a brand operates directly to the end-user or in the business-to-business space, Strats Inc clients have come to recognise that they need to understand what their customer needs are rather than what they can provide.

Simply put, there has be a looped flow of information from the consumer back to the brand, for the brand to understand what will deliver the most value.

Over the years, Customer Relationship Management (CRM) has become more complex. For brands, CRM isn't so much about customer relationship management, but more about customer relationship growth.

In essence, it is the linchpin that stimulates new customers through perceived value and retains existing consumers. If tracked correctly through CRM, the consumer is never allowed to fall outside the embrace of a brand. Service standards can be better monitored and corrections and adjustments can be made in time.

# Rule 4 - Alternative marketing must be built into your marketing plan

Viral marketing platforms and the explosion of digital marketing is now recognised as vital to any integrated marketing plan. Strategically using alternative marketing vehicles allows a brand to interact with a consumer at point of sale.

More and more individuals are spending their time on social networking sites such as FaceBook and Twitter. While it is a viable place to connect with consumers, it may irritate or annoy consumers to see advertising in what they consider a personal space. Brands should always use these platforms in a way that will add value or entertainment to the individuals within the environment.

Similarly, cellphone technology has allowed other meaningful opportunities of engagement and is well poised to offer valued add-on services to the consumer. It's important to remember that today's consumer is comfortable with using technology in order to have speed and convenience. It often translates to instant service.

# Rule 5 - Understand the impact of the recessional climate and beyond

The good news is that the recession will not last forever, but it will have an impact on brands well into the future.

Once the current economic climate has adjusted to some sort of normality, then brands will continue to require a totally integrated approach.

However, the consumer may have changed and become a tad more cynical, cautious and wary of marketing directed at them. Honesty will be a major factor going forward as the consumer has lost confidence in the short term and has learned some hard lessons not necessarily of their making.

The current climate will make for a more sceptical consumer and one that will require a more honest approach and a valued offering. Brands will have to be more focused, strategic and consistent in engaging and retaining consumers.