PSST, YOU ON AISLE 5!

Some 30+ years ago, retailer loyalty cards came into existence and with them the dream that, one day, marketers could know your habits, what you buy and thereby figure out how to sell you more. That dream has quietly become reality. Powerful computing algorithms and clever marketers today know you, your purchase habits and preferences, and are working overtime to attract your attention.

Charles Duhigg has written a new book about it all. Articles in the Wall Street Journal, New York Times and a host of magazines trumpet The Power of Habit: Why We Do What We Do in Life and Business. It’s fascinating stuff – and a little scary.

No one likes to feel manipulated but everyone wants to be understood. Like Norm Peterson in the long-running sitcom Cheers, you want people to know you, even greet you by name, when you enter the store. You want the store to have what you want when you want it. Getting to know us through our purchases histories helps stores have the things we want, at prices we’re willing to pay, when we want them. It’s win-win, right?

One counter argument is that we are inherently private people. We don’t want just anybody to know us. We want to decide who knows our likes, dislikes, preferences and purchases. And that’s our right, right? Sure. But we give away some of that right when we respond to incentives offered by marketers and retailers to share information. When we do, we win discounts and lose a little privacy. By the numbers, it appears to be a trade many willingly make.

DON'T BELIEVE IT

So, 2012 will be the Year of Customer Satisfaction. According to a recent survey, retailers are determined to invest in the latest "widgets, gadgets and advanced links" to woo and soothe their customers. Read some highlights here.

I don't believe it. Neither should you.

Technology investments are vital. Online and m-commerce initiatives are important. But making the store environment cleaner, less cluttered, easier to navigate, properly staffed, comfortable and filled with the right products attractively displayed should be THE priority if shoppers are indeed the #1 priority. Who's watching the store?

Executing at the in-store level - where an average of 70% of actual purchase decisions are made - needs more attention. For most retailers, however, it's a zero-sum game: money and attention spent here won't be spent there. Diverting attention to the detriment of the store environment hurts the customer shopping experience. And that's bad business for any retailer.

WHY WE BUY. REALLY.

I’ve written recently about the acronym ZMOT: Zero Moment of Truth. Popularized in 2011 by Google, it refers to the fact that shoppers often – and increasingly – research new purchases before they go online or to a store to potentially buy.

A new study builds on the idea that we welcome influence from other sources – reviews, suggestions from friends, even overheard comments from strangers. Is it because we don’t trust our own ability to decide? Whatever the reason, a study from Opinion Research was recently highlighted in a Fast Company magazine article by Martin Lindstrom.

One of the key findings: 61% of shoppers checked online reviews, blogs and other online customer feedback before buying a new product or service. Even when people know that some of these reviews aren’t accurate or objective, they value these sources. Why?

Shoppers are hungry to get the “right” value: price, product availability, effectiveness, packaging attractiveness, quantity, social satisfaction and so on. Though seeking opinions of others gets easier all of the time, the decision to buy will remain with the shopper to make and s/he will most often make it in the store, in the aisle, at the shelf. The path to purchase is important but the point of purchase is pivotal.

FEED YOUR HEAD

Few of us would purposely skip a meal, let alone fast for an entire day. We need to be fed to function. The same logic applies to our minds.

During a recent meeting with our sales team, I asked them to consider what they feed their heads. Are you feeding yourself information to enhance the value you deliver to your clients? Are you continually learning what’s new, what’s relevant and what’s changing in our industry? Are you stoking your curiosity and starving complacency? Are you paying attention to what’s affecting your clients, prospects and competitors? What are you reading, watching and hearing?

Just as you know that a diet of Twinkies, cookies and energy drinks isn’t good for you, consider the quality and variety of what you feed your mind. Watching sports or sitcoms, reading comic books or People and listening to music are all innocent diversions but don’t consume those things to the exclusion of meatier, more nutritious fare.

Learn. Grow. Improve. What you feed your head becomes the fuel that propels your career and your life. The right diet makes all the difference.