Small business and marketing

6 Working with customers

Having explored the different ways to attract customers we will now look at how a business tackles the way it wants to approach its customers. We will look at the key questions to ask and use two of the case studies to demonstrate how the choice is made.

The key questions are:

  1. Who is the customer?
  2. What is the buying behaviour of the customer?
  3. What type of marketing should be used?
  4. How will the customers be attracted?
  5. What forms of social media are appropriate?
  6. How can feedback be used to promote the products?

Continuing to look at Bike-a-lot first:

Key question Answers Implications
Who is the customer? The customer may be the trainee or a sponsor of the trainee, possibly a parent. Bike-a-lot will engage closely with consumers and if the customers are not the consumers, then the relationship between customer and consumer is likely to be very close.
What is the buying behaviour of the customer? This is likely to be dissonance buying behaviour where customers are buying a relatively low cost service but want to be certain they are getting the best value.

Customers are likely to be swayed significantly by comments and feedback from others.

Personal recommendation is likely to play a big part.

What type of marketing should be used? This is consumer marketing but may include some social marketing. Bike-a-lot needs to appeal directly to the consumer, presenting information clearly. The social marketing could be part of national campaigns, raising awareness in general and not directed at the local consumer. Social marketing may result in a degree of ‘earned social media’.
How will the customers be attracted? Advertising to raise local awareness, some sales promotion and e-commerce. Customers need to know that the school exists and so the school needs to be visible. Customers are likely to want to gain information and make bookings easily. The business cannot accommodate a full time sales person so e-commerce is essential. PR events such as school and college experiences would raise awareness. Promotions such as discounts for further training or family members could attract loyalty and free taster sessions could remove some of the risk for customers who are undecided on the product or the supplier.
What forms of social media are appropriate? A Facebook and LinkedIn account to raise the profile of the school. The website is a key point of contact and the social media of consumers is desirable.

The Bike-a-lot website could be used to convey information to future and previous consumers. Information on social events, changes in the law and reviews of equipment could give previous consumers a reason to revisit the site. Encouraging consumers to share information about their experience on the website or their own social media could be helpful.

How can feedback be used to promote the products? Comments or a ‘stars’ system on the Bike-a-lot website. Registering for a trader rating site.

A feedback section on the website could be included but this carries the possibility of negative feedback.

For consumers to trust the ratings they need to feel the posts are genuine and unedited. Negative feedback should be responded to and not deleted.

Summary Bike-a-lot provides a service that consumers may use several times but not frequently. A positive experience of training should encourage personal recommendations to family and friends generating a significant amount of business through social media. For potential customers with no direct social links the aim is to raise awareness through PR activities and advertising the name.

Activity 7

Allow about 15 minutes

Having reviewed the questions for Bike-a-lot, you will now answer the same questions for Red Bush Brewery.

Complete the table below and then click ‘save and reveal comment’ for some suggested answers.

Key question Answers Implications
Who is the customer?
What is the buying behaviour of the customer?
What type of marketing should be used?
How will the customers be attracted?
What forms of social media are appropriate?
How can feedback be used to promote the products?
Summary