Identifying Customer Trends with a Global Perspective

Understanding and then identifying the significance
of your customers’ behavior is critical to success.
And when certain trends begin to develop,
it’s time to take action.

REGARDLESS OF THE TYPE OF BUSINESS YOU OPERATE, every aspect of your operation, at some point, will point toward your customer. Customers’ needs or wants put you in business. They also keep you in business, and this fact will never change. Keeping on top of constantly changing customer trends is critical to your success, both locally and abroad.

In this section we’ll focus mostly on consumer trends. If your business is a B2B (business to business) enterprise, or if your international expansion is targeting new suppliers or outsourcing services, please feel free to “translate” the advice to your somewhat different circumstances. For you, trends within your industry, your customers’ industries, and external conditions might be more important to monitor. But you will benefit from tracking consumer trends in your target market as well, since they may impact labor, manufacturing, finance and other major factors in your business abroad.

Understanding consumer behavior trends

Trends usually emerge when fundamental customer behaviors collide with outside changes to generate new wants or needs. A trend in consumer behavior develops when a pattern of behavior starts moving in a general direction, tracking a particular course. Think of baby booms, downsizing, home solar panels and the latest food fad. Recognizing these cause-and-effect factors can keep you ahead of the curve. Some trends are short-lived, others play out over generations. Consumer behaviors and preferences can change swiftly and often, feeding an industry of trend-watchers.

In terms of your international business, you naturally will have to work a bit harder to monitor trends and identify the elements that could impact your business from some distance away. Even though it makes an already difficult task more complex, you still need to keep an eye on trends in your target markets. If you do, you won’t be surprised by changing behaviors and can stay not only relevant but successful, long term.

Fact-finding resources

So, where do you start? Usually it begins with questions, and lots of them. It’s just amazing to see the amount of information you can gather when you simply ask. And in order to get the ball rolling with your initial fact-finding mission, it’s best to identify the easiest methods to acquire this vital information. Let’s take a look at how this can be accomplished with little effort.

• Learn from your current (and potential) customers. You may be surprised at how willing customers are to share their opinions about experiences in your target market. Your personal network may have leads to resources and insights into trends that could be really valuable. So in your daily contacts, even in your home market, ask if your contact has any news, impressions, contacts or experiences about your target market (this assumes you don’t mind them knowing you’re thinking of launching a business or purchasing goods or services there).

• Read the business press in and about your target market. Here, you’ll get the benefit of local analysis, background and forecasts. Most non-English speaking countries have an English language newspaper, and these often focus on issues and events that foreigners need to know about. Take a look also at the respected international magazines like The Economist or newspapers like The Wall Street Journal or Financial Times. They run features as well as news stories on business issues in all parts of the world. It goes without saying that you will need to keep an eye open for bias and propaganda in any information you discover.

• Get active in social media and through online forums. Learn what consumers in your target market are saying online as they share their opinions and preferences. While this kind of research is not filtered and definitely can be time consuming, it still may give you a broader perspective of what consumers are saying about specific products and services, including your potential competitors or vendors in the target market.

• Talk to local shop owners and business organizations when you visit. Introducing yourself to local entrepreneurs and getting involved with local business organizations can be invaluable when looking to understand the new market you are entering. Local customs, buying habits and other elements will play a huge role in your success. What trends do your contacts see that are relevant to your business there?

• Read and observe… everything. Read the local papers if you can. Visit shops and markets. Watch the local television ads. Listen to local talk radio programs. Take a look at the outdoor advertising: on public transport, billboards and train station posters. The messaging here will go a long way in describing what others are buying and interested in at any given moment.

Of course the information you gain from this research is only as good as the analysis you give it, so test out conclusions, keep an open mind, and keep adding to your pool of information as a regular part of your work on the target market. This foundation of information and feedback can be extremely eye-opening. It can also help you formulate a solid plan of attack even before you open your doors. Knowledge is the single most powerful tool you could ever have.

Trends… advanced

So, once you’ve done just about all you can personally, you can decide if that’s adequate for this market. If the nature of your business is fairly straightforward, your research may be all you need to size up the scene and identify risks and opportunities. If, however, it’s a complex business and involves a good deal of investment and perhaps a long period of time before pay-back starts, it might be good to expand your knowledge base.

You might be able to locate focused market research reports online via resources like ResearchandMarkets.com. Or bringing in a professional organization that specializes in identifying consumer trends and behaviors may be worth investigating. There are numerous international companies that can generate studies and reports specific to your needs as a business owner. These organizations can help you interpret the business climate and trends in your target market. Knowing the prospects and potential adversities that are present can save you time, money and reduce risk in the long run.

Most of these companies use the same avenues as discussed previously (surveys, etc.). However, a more in-depth look on a much larger scale will deliver additional clarity and understanding to your decision-making processes. Adding detailed research studies and delivering various sales forecasting models can also aid in defining your path to success. Be sure to check references before signing up for a project, just as you would with any new vendor.

Make sure to get it right

Regardless of the ways you go about determining what significant trends are operating and emerging in your target market, you will then need to apply what you’ve learned to your business models, asking whether your current ways of doing business at home will succeed abroad. That’s why it is imperative to do your research homework before you launch. Learning by trial and error, in the dark, has low odds of success. But having a grasp of your target market’s workings will give you the edge you need to be successful today and in the future.

M.P.