Studies show that 73% of customers depend more on current customers than they do on new ones. Yet, one of the mistakes new businesses make is focusing on acquiring new customers. And studies show that acquiring a new customer costs 5 and 25 times as much. Small businesses will struggle until the end with cash flow for this reason – 82% of brands will ultimately fail for this reason.
But there’s a way out. The customer is always right. No! Try ‘the customer should always get what they want’. And what does the customer want? Something in return for spending their money. Supermarkets do it in the form of loyalty cards or discount cards. Other brands can do it with other financial rewards – if they’re smart. They could offer crypto rewards for future spending – cryptos like the Shiba Inu Fiyatı are really cheap.
In fact, utilizing crypto for the benefit of customers is something popular brands are doing. Whether it’s rewarding or facilitating crypto spending, the trend is growing.
Still, there’s obviously more to it than a simple reward. Read on to find out more.
What DO Customers Want?
Understanding customer desires is crucial for any business. Customers seek more than just products or services. They desire a holistic experience that offers value, convenience, and recognition. Yes, one emerging trend in fulfilling these desires is the use of cryptocurrencies as rewards or as a payment method, but there are more. We could, and will, create a big list:
- Customers want personalization
- Customers want speedy customer service
- Customers want high-quality products
- Customers want fast delivery times
- Customers want something that isn’t the same as everything else
- Customers want to be able to talk on the phone
- Customers want a good website
The list could fill the rest of this article.
The Psychology Behind Consumer Spending
Consumer spending is influenced by a complex mix of emotional, psychological, and social factors. Yes, we humans are complex. And we’re emotional. And emotions play a significant role. Positive experiences with a brand can foster loyalty and repeat purchases. The thrill of earning rewards, especially in the form of trending assets like cryptocurrencies, can stimulate the pleasure centers of the brain. That’ll encourage repeat behavior.
Social factors, such as the desire to be trendy or part of a community, also influence spending. Brands that understand and leverage these psychological drivers can more effectively attract and retain customers.
How Does Consumer Behavior Impact Businesses?
Consumer behavior directly impacts a business’s bottom line. Positive customer experiences and satisfaction lead to repeat business and referrals. They’re more cost-effective than acquiring new customers. Conversely, negative experiences can quickly lead to lost sales and damage the brand’s reputation. How consumers perceive and interact with a brand – from the purchase experience to post-purchase rewards like crypto incentives – shapes their future buying decisions. And, by extension, the business’s success or failure.
Why Do Businesses Fail?
Many businesses fail due to a lack of understanding of their market and customers. Overemphasis on acquiring new customers without nurturing existing ones can lead to unsustainable cash flow. Neglecting customer feedback and failing to adapt to changing market trends isn’t what you want to do.
Failing to understand the underlying psychology of consumer spending and not tailoring the business approach to meet these psychological needs can result in a disconnect with the target audience.
You Can Never Please Everyone
Businesses must recognize that it’s impossible to please everyone. The key is to identify and focus on the target demographic. Then, understanding and meeting their specific needs and desires. That might mean adopting new trends like cryptocurrency rewards for some businesses, while for others, it could be about offering exceptional service or unique product offerings.
Balancing innovation with core brand values is crucial in appealing to the right customers. Not every customer is the right customer – commence bad reviews.
Differentiating between constructive criticism and mere preference differences is essential. Not all feedback will align with a business’s vision or operational capabilities – and that’s okay. It’s about finding a balance between being responsive to customer needs and staying true to what the business stands for.
Businesses should also remember that trends come and go. One minute, everyone is buying the TikTok water bottles. The next minute, TikTok is making them buy Stanley water bottles (don’t do it; they’re expensive). But the values and mission that define a brand have a lasting impact. Embracing flexibility and adaptability while remaining grounded in core principles will help navigate the complexities of varying customer preferences.
Catering to customer needs is more crucial than ever – they are the money-makers. But catering to customers’ every need is impossible – brands somewhere down the line will face the Karen of all Karen customers.
The idea is to cater to as many needs as possible. The integration of innovative approaches like crypto rewards can be a significant differentiator. But still, it’s not all about rewards – there’s a saying that you can’t buy loyalty
Businesses that listen to their customers, understand the psychology behind their spending and adapt to market trends are more likely to succeed and sustain in the long run.