November 4, 2003

Customer Quicksand

We all think we know our customers well, but do we? A large regional bank recently conducted 6,500 customer surveys prior to launching a major strategic initiative. Part of the survey focused on cost and convenience. Management was unanimous in their assumption that wealthier customers would of course care plenty about convenience but care little about cost, while lower-income customers would pinch their pennies.

Survey says? False. Time starved lower-income customers desperately needed convenience and were willing to pay for it. Wealthy customers were much more mindful with their cash (which is likely how they got wealthy in the first place). According to Sherwood Smith, The Intelligence Agency’s account executive in charge of market research, this is just another case where research is the essential first – and often overlooked -- step in business strategy execution. What do you really know about your customers, former customers, and prospects?

If the question brings you pause, contact Sherwood at ssmith@intelligenceagency.com for more information about our new market research services.