The Lazy Consumer: Forget Better, Faster and Cheaper

A guest post by Barry J. Moltz

As a group, we are all a lazy bunch of people. Once we start moving in a direction, it is hard to get us to switch to do something else. Entrepreneurs always think that if I can provide a service that is better, faster or cheaper and get it in front of the consumer, then they will (sometimes they feel must!) buy from me- not so fast! The biggest switching cost is not the typical cost of producing a product or its distribution. The biggest barrier to entry for any new company is the consumer’s own laziness. We want to keep buying and shopping the same places we always do because we are comfortable or just can’t be bothered with making a change in our life. After all, we are creatures of habit. Retailers and service providers count on this. That is why they spend so much money to land our business in the first place. Even if we are offered lousy customer service, it takes alot for us to switch. Even if we are offered a better or cheaper deal, it still takes alot to switch. We are lazy consumers. I am the perfect example.

I had been a Netflix customer since they got started and fell in love with their service. When Blockbuster introduced a similar service, I did not switch even though there is a Blockbuster two blocks from my house where I could turn the movies in and get new ones much faster. Finally after 5 years, I made the jump to Blockbuster. It was “scary”, but now 6 months later I love it. Blockbuster is much more convenient and flexible than Netflix. I wish I switched 5 years ago. Netflix kept me as a customer simply because I was too lazy too switch (and in this case provided excellent service). I was loyal. I was one of their first customers. Even though it made no economic sense, I stayed with Netflix even when Blockbuster was faster, better and cheaper.

Faster.

Better.

Cheaper.

It is the rallying cry of every business owner. But it does not always win the day. Habits and consumer inertia die hard. That is why I always ask business owners: “Why will the customer switch to you?”

Forget “faster, better, cheaper”. The consumer has to be in a lot of pain to switch. Think to yourself- “how much do you hate your cell phone company?” Then ask yourself, “why have you not switched” (Remember you can now keep your phone number). It may be that you are under contract for that “free” phone you got from them or maybe you don’t want to learn a new customer service system from your new cell phone company. Either way, you don’t switch often.

So forget the sales strategy of faster, better, and cheaper products or services to build your business. I am not saying that these don’t help in a business but do not count on the lazy consumer to help you build your business.

So how do I talk to a lazy consumer?

1. Find consumers that are in pain. They are motivated to make a change. Consumers only buy when they are in pain (that is, have a very great need). Consumers switch and buy pain killers, not vitamins. Unless you are selling one of these, forget it.
2. Find consumers that have the money to solve the pain. If they have pain but no money, you have no business. You have a charity.

How do you talk to a lazy consumer?

Barry Moltz has given hundreds of speeches to corporate, student, and entrepreneurial audiences of 20 to 20,000.
He makes friends with his listeners and delivers the straight stuff in a direct, humorous, and occasionally irreverent manner using real life business examples and personal tales. He is the author of Bounce! The Path to True Business Confidence and You Need to Be a Little Crazy: The Truth About Starting and Growing Your Own Business. For more from Barry, check out his blog at http://barrymoltz.com/blog

Comments

[michael cardus]

Pain point marketing - is a challenge to determine. What i often do is learn all that I can about those in my market and determine exactly what their customers pain points are. Then I market to those pain points.
I come to your location, i provide follow up to ensure success, I put a lot of time into your organizatin to learn about your needs and pain points.
Customers only choose to stay with the same old until you find the advancer in that organization family or social clique. Those advancers make change seem safe and acceptable.

[Oleg]

You are right on as usual. I am currently working with one non-profit client to help them come up with a better stategy for attracting people that are looking for recovery from chemical dependency, and what we are realising is every agency offers basically the same services. There is lots of agencies that provide these services, yet tens of thousands of people go untreated every year, mostly because the only window when we can reach them is when they are at a point of pain (legal problems, confrontation by a spouse, etc.)