Manufacturers of products sold to other businesses have often ignored consumer buying habits. This was the domain of the retailer or reseller, and was of little importance to those on the upper end of the supply chain.
But consumers — your customers’ customers — can yield insight into issues that directly affect original equipment manufacturers (OEMs).
“For example, businesses who make tags, labels or packaging will be in a better position to plan capacity issues if they watch consumer trends,” says Michael Cacicio, president and COO of USA Chicago Inc., a marketing communications firm.
There is already research predicting what brands and packaging types will do well in various parts of the country. A bottle cap manufacturer, by researching consumer habits, might find that wide-mouth bottles are becoming very popular in certain parts of the country. It can then make capacity and tooling decisions based on this data.
“Research can help predict where products will fall and where they will grow,” says Cacicio.
This same research might reveal that certain colors or shapes are more popular for a specific product, or in a specific region.
“From a differentiation standpoint, it’s very useful,” says Cacicio. “If you make product labels, how are you going to differentiate yourself from everyone else? All the label companies are doing the same thing you are. But if, through research, you find that for products in the southern United States, bright labels work better, you can use that.
“When you’re talking to a potential customer, you can advise them to not just buy a bulk amount of labels, but to buy a specific color for that region.”
The data allows you to take on a consultative selling approach with your clients. When you know as much about their customers’ buying habits as they do, you can better sell your products and develop a better sales relationship with them.
“You shouldn’t just be meeting with people, but helping them understand their market,” says Cacicio.
With research in hand, your arguments for certain products will be based on empirical evidence of customer habits rather than the old “ours is better than theirs” mentality.
If your product is used by someone who sells to consumers, examining research can be beneficial.
“There are a lot of research companies out there,” says Cacicio. “Start with the well-known ones, and by asking questions such as what data do they use and where do they get it.”
An industry trade group or publication in your customer’s field is often a good place to start. Once you have the sources, you can determine which one offers the best information to help your business.
Todd Shryock ([email protected]) is SBN’s special reports editor.
