In the past few articles, I’ve used a couple of marketing terms that may be new to you like “widget” and “USP” just to name a few. Well, in keeping with this theme (and my quest to turn you all into savvy marketers!), I’m going to throw one more out there. It’s called “WIIFM”, or “What’s In It For Me?” This is a question that must be answered when thinking about your products and services and how your customers will respond to them. What’s in it for your customer if they purchase your items? How will they benefit? Knowing the answer to these questions will not only help you keep the customers you have, but secure new ones as well.
“What’s in it for me?” A simple question that you probably ask yourself each time you agree to do something. Knowing how you will benefit from whatever action you are taking will help you decide if you want to do it. For example, your friend asks you to accompany him or her to a movie. As you ponder your response, you are thinking about what you will get out of this activity (your “WIIFM”). Well, first, you’ll get to spend time with your friend. And second, maybe you’ll get to see a great movie. The answer is obvious – you’ll go with your friend to the movie because clearly there was something “in it for you.”
But sometimes the answer is not so clear. This is especially true when you are deciding to purchase a product or service. What does this particular item have to offer if you decide to buy it? I’m talking about an item that would be considered discretionary spending as opposed to an obligation, like paying a bill. Discretionary spending involves making a decision based on wants or needs, whereas a bill is a financial obligation that must be paid. (Clearly the “WIIFM” for paying your electric bill is that you will have power!)
Let’s look at an example to illustrate the “WIIFM” concept.
A new business has recently opened in your town. You see an advertisement in your local paper and decide to visit this establishment. The fact that you decided to go is the first successful use of “WIIFM” by this business. They made the ad compelling enough that you thought you would garner some benefit by visiting their store. There was something in it for you.
Once you enter the store, you see a few items you’d like to purchase. As you look at each item, your thought process might be something like this:
“This is really interesting.” “How much does it cost?” “Is it worth it?” “Can I get it somewhere else for less?” “What will I do with it?” As you are thinking about the answers to these questions, you are honing in on your own “WIIFM”. If you can’t clearly answer the questions and feel that the product is not solving a problem you have or not fulfilling a need, then you will put it back on the shelf. However, if the item does appeal to you, is in your price range, and has a perfect fit in your life, then it has fulfilled your “WIIFM” and you are off to the checkout counter.
Many times, it’s hard for small business owners to put themselves in the shoes of their customers and understand their needs. They struggle with this concept because they look at their product offerings through their own eyes instead of their customer’s eyes. This is a big mistake because as business owners, we are prejudiced toward our own products because in many cases, we created them.
Let’s face it. We all think that what we are selling is the cat’s meow, but guess what? Not everyone else does and unless you know what your customers want and what makes your product different, then you are not likely to see the success you envisioned. (See my previous article regarding your unique selling proposition.) This is especially true for those of you with “nice to have” products or services. In these recessionary times, consumers are spending more time thinking about their purchases and if they really are necessary. If your product or service is one of those “nice to haves”, then you are going to have to work extra hard to convince them that it’s really worth their investment.
So, how do you start figuring out how your business addresses your customer’s “WIIFM” challenge? The first step is to know your customer. I don’t mean know them personally (though this may be the case for smaller, locally owned businesses), but you must know what your perfect customer “looks” like. Are they male or female? Are they over 50 or teenagers? Do they live in a particular geographic region? Are they college educated? Are they parents? There are a myriad of demographic descriptors that can define a customer base, and knowing this information is going to help you better target your perfect customer. For example, if you are selling gym memberships, your customer is likely over eighteen.
Along with these ‘demographic’ characteristics, there are also ‘softer’ descriptors, often known as “psychographics”. These are things like a person’s lifestyle, their attitudes and beliefs towards things, or their activities and interests. For example, let’s say you’re about to open a sporting goods store. What does your perfect customer look like? At minimum, it’s a person who enjoys sports and outdoor activities, is in good health, and has the monies to spend on their extracurricular sporting activities.
Another way to learn more about your customer is to simply ask them! Surveys are a great tool to quickly gather opinions and thoughts from your customers. (In fact, you should be surveying your customers regularly in some fashion so that you are continuously keeping your finger on the pulse of what your customers are thinking.)
There are many great and cost-efficient online survey tools, like Survey Monkey® or Constant Contact. If you have been collecting email addresses of your customers and regularly communicating with them, then sending out a periodic survey will be a relatively easy task. Thinking about introducing a new product? Ask your customers what they think. Considering changing your location or hours of operation? Ask your customers first. Looking for new ideas to augment your current offerings? Ask your customers what they’d like to see.
When you develop a survey, the following tips may help.
- Keep it simple. No more than 5 or 6 questions if possible. If your surveys are too long, no one will fill them out (unless there’s some other incentive like a discount or gift). Also, since it will likely be you who has to analyze the findings, doing so on a shorter survey is much easier.
- Be clear with your questions. If people can’t figure out what you’re asking, they may give a “wrong” answer thereby altering your results.
- Ask only what you intend to act upon. For example, it makes no sense to ask your customers how they’d feel about adding a coffee station to your business when you have no means to do so.
- Act! If you survey your customers about making changes or adding a new service, then follow through on that change. Otherwise your customers may become resentful that you promised something but didn’t deliver.
When all is said and done, it’s important for every business owner to know and understand their customers. How you choose to do this, whether it is through formal demographic research, face-to-face conversations, or tools like an online survey is not what’s most important. The important thing is to start with whatever method makes sense for your business. Just starting out your new retail location? Talking with your customers is a great way to find out what they’re thinking.
Still not convinced that knowing your customer and being able to define your own product or service’s “WIIFM” is critical to the success of your business? Think back to when Coca-Cola® launched “New Coke”. If you remember, it failed miserably. Within a short period of time, the old Coke was back. This is a prime example of a business not knowing their customer. This goes down as one of the largest marketing blunders ever. See? Even large corporations make mistakes!
Knowing your customer and knowing how your product benefits them is the key to a successful business. Forgetting or ignoring your customer’s needs will likely result in you closing your doors or worse, having a negative effect on your brand and your business. And we all know what happens to businesses that don’t care about their customers, right?
Submitted by Jennifer Covello, Owner, Founder, Frittabello, LLC. www.frittabello.com
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