Customers are not Innovative

By John Malmo

http://stream.publicbroadcasting.net/production/mp3/wkno/local-wkno-910283.mp3

Customers are not Innovative, by John Malmo

Memphis, TN – I'm surprised at how many business owners still think the way to please their customers is to ask what they want. Forbes magazine reminded me of my favorite words on the subject. Henry Ford supposedly said, "If I had asked my customers what they wanted, they would have told me 'a faster horse.'"

After creating the PC market, IBM abandoned it because its customers, who, at that time, were data center managers, told them there was no future in the PC. Customers are not innovative. They may ask for better quality, faster service, or cheaper prices. That doesn't help a company keep up with market shifts and true innovation in its business category.

When newspapers got in trouble, they started asking their biggest customers - their advertisers - what they wanted. Many made dumb suggestions about newspaper content that ended up hurting readership. All advertisers really want is a bigger audience at lower costs. You can't increase newspaper readership by letting advertisers dictate content. As has always been the case.

Watch what your customers do, and you should be able to make any adjustment needed to keep them happy. But more important is to keep your eye on the market. Your merchandise mix. Locations. Packaging. Distribution. Product line. And most important, keep both eyes on your competitors.

John Malmo is a Memphis marketing consultant with more than fifty years experience. He is former chairman of Archer Malmo Advertising and specializes today in helping small businesses grow. To reach Mr. Malmo - or to buy a copy of his book When on the Mountain There is no Tiger, Monkey Is King- go to http://www.johnmalmo.com.