I have been watching the Game of Thrones the past several seasons. I love the rich scenery, the diverse range of characters, and the intriguing, suspenseful drama. A recent episode about the Many Faced God got me thinking about customer types. In particular, it got me thinking about customers with multiple faces or personalities. Some customers are like Dr. Jekyll and Mr. Hyde with two personalities, while others are like Sybil or the Many Faced God with several personalities.
Consider my wife. She occasionally shops at Costco. Does that make her a price-sensitive shopper? Maybe, but not necessarily. She will not travel to Costco unless we need a large quantity of something, such as paper towels, napkins, or bottles of water, or because she wants something specific, like a laptop or a printer. The first items she buys in bulk, because prices are lower in large quantities and we are able to store them. In addition, while my wife is at Costco, she will usually pick up a 4 lb. pack of bacon, not because we need it, but because I like it. And if it is in the house, I will eat it. This bulk buying process definitely indicates a level of price sensitivity, and she is willing to use our storage space in exchange for lower prices. But that is not the whole story.
Following her most recent trip to Costco, my wife showed me 2 bargains she picked up while there- a cotton sweater for herself that was marked down to $15 and a $20 cotton sweater for our son. That was definitely the price-sensitive shopper in her. That is her Dr. Jekyll side. However, in the same trip she exhibited the complete opposite Mr. Hyde behavior by picking up some lobster tails for $20 per pound and a 18 oz. bag of Bark Thins (dark chocolate with almonds). Of course the lobster tails and Bark Thins were delicious, but we did not need them, and she could certainly have purchased less expensive seafood and candy.
Those are not the only Jekyll & Hyde moments my wife exhibits. She will buy clothes at Macy’s at the end of a season when they are on sale (Dr. Jekyll), but she will also pay full price for other clothes at Nordstrom when they have what she is looking for (Mr. Hyde). She will stock up on items that are on sale at our local grocery store (Dr. Jekyll), but she will also pick up a meal at a smaller, higher-priced neighborhood store 3 blocks from home. And sometimes she is a mixture, bringing her own bottle or water to a Pittsburgh Pirates baseball game to avoid paying $4 for a bottle, but happily paying $8.50 for a beer.
So what is the significance of these multiple personalities? Here are 5 key things to focus on:
- Recognize that nearly every customer can have multiple faces. Have something for each personality. Once Dr. Jekyll is in the door, sell something to Mr. Hyde.
- Customers are not all the same, so don’t try to be all things to all customers. Some will be 80% Jekyll and 20% Hyde, but some will be the reverse. And some will be like the Many Faced God, with more personalities. Identify your target groups and have an assortment and pricing strategy to match.
- Use your data to figure out who is who. For customers in your rewards program, you can track everything they do. For others, start to create profiles of them using industries in which they work, the applications for your products, which products they need help with, and which they order online, which products get returned at higher rates, which products require high levels of service and which do not. This analysis can help you fine tune your targeting from #2.
- Do your homework to understand what is happening in the market. What are the ranges of prices that are occurring and under what circumstances? If you are going to create a promotion to get Dr. Jekyll in the door and sell something to Mr. Hyde, make sure your promotional price is attractive, and don’t price too low to Mr. Hyde. By the same token, know what the limits are. My wife’s Mr. Hyde bought lobster at $20 per pound, but she would not have done that at $40 per pound.
- Use rifle-shot, not shotgun techniques specific to your targets. For example, at the beginning of the school year, Bed Bath & Beyond often targets a promotion to students moving into dorms. To get Dr. Jekyll in the door, they offer a coupon for 20% off the largest item; but the coupon is good for one item only. They also recognize that kids are moving, sometimes a long way, so the retailer enables students and parents to order whatever they need in the nearest store to home, and pick it up in the nearest store to campus. Bed Bath & Beyond understands the parents would value a service that makes everything easier, and those Mr. Hydes would be a little less sensitive in exchange for the service.
We are all in business to make money, and inconsistent behavior by customers can make that difficult. The most successful businesses will embrace the challenge of serving the Many Faced God, and they will use their knowledge of the multiple personalities to make more money.
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