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CONSUMERISM

Written by: Andy Marken

Article Overview: LET THE DEALER BEWARE

CONSUMERISM

" ... the march of technology that has brought unparalleled abundance and opportunity to the consumer has also exposed him to new complexities and hazards. It has made his choices more difficult. It has made many of our laws more obsolete and has created the need for new legal remedies and safeguards. In short, we are faced with new problems of prosperity.”



With that statement and the stroke of a pen, President Johnson in the early '60s signed the first of what has become a long list of increasingly stringent consumer protection programs.

Since then, consumerism has touched virtually every corner of the business community--including the home and business products industry. As computers and communications devices continue to reach deeper into our daily business and home lives, consumer protection, whether for the hobbyist or the business user, is becoming a greater concern.

In recent years, several major suppliers have made substantial out-of-court settlements with firms who have alleged significant business losses because computer systems couldn't be implemented or used as advertised. Tort lawyers have won major settlements in their continually aggressive class action suits.

Most consumer problems develop simply because the marketplace is still young and dynamic. Complaints arise not from poor products, but from how the products are sold.

Today's dealers and VARs who want to keep consumer problems to a minimum should seriously consider the way they handle three key items:

1. Product Evaluations--We must assume that no system, software or supplies manufacturer consciously attempts to market a product that doesn't perform well. But that doesn't mean that the products you sell are the best for the market you want to reach and penetrate. Therefore, you must do a better job of evaluating products that are offered to you, in terms of consumer reaction and perceived usage. Evaluate each product in your line by visualizing the people who come to you for systems, support and service ... and their needs.
2. Instructions--Unfortunately, the weakest part of most of the systems and software on the market today is documentation. A company will spend millions of dollars to develop the product and only a few hundred telling the consumer how to use it. If your manufacturers fit that mold, you have to assume the responsibility of training the customer in the use of the products. Even if your suppliers provide the worst
documentation in the world, they won't be the first one condemned if the products can't be used as intended—you will. XYZ company may have produced the product, but as far as the customer is concerned, it was your product that they
bought.
3. Complaints--Don't relegate complaints to an entry-level person in your organization. Customer problems are going to crop up, especially with something as complex as computer systems and someone as unsophisticated in its design, development and use as a brand new user. Assign one of your best people to the task of handling complaints, and be sure to give him the power and latitude to solve them quickly. Expedience, tact and courtesy can turn an unhappy customer into one of your most staunch and energetic salespersons.

Many consumer complaints are not based on legitimate grievances regarding the products or services. Instead, they develop from gross ignorance or misinformation on the part of the user. Many novice systems users operate under the mistaken assumption that such systems are nothing less than "The Second Coming" and that they will do anything and everything at the touch of a button.

Unfortunately, your average customer has little, if any, grasp of what actually lies behind the products or services you're selling. He or she is unaware of the quality control what they are told about the system and its performance. Finally, they are ignorant of even the most rudimentary provisions of a warranty. As a result, the customer labors under a load of misinformation which, if left unchecked, can develop into a deep distrust of both the business and the systems you sell.

To better inform the consumer, dealers and VARs must do a better job of communicating--more frequently and more clearly. In the computer field, that means telling the customer what the system will and will not do, what kind of performance can be expected, the support they will need and receive and what types of problems they may encounter.

Telling the good with the bad won't kill a sale. In fact, if it's done properly, it can provide add-on sales—both immediate and long term.

But the proof of the pudding is in the eating: the quality and performance of the goods and services themselves. In other words, as long as you do a good job, you'll get credit for it.

Anticipate customer questions and problems, and answer them before they arise. Train your people in this area. Even major problems can be resolved if you have immediate and complete discussions with the customer. On the other hand, minor problems, handled improperly, can end up in court.

Finally, remember that the customer is always right. And today, he or she has the power of the them up.

Consumerism has changed the rules of the game and produced the need for new strategies. By using the new rules to your advantage, you're sure to end up on the winning side.
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