Customer Preferences

Customer Preferences

Customer Preferences Jonathan Poland

Customer preferences are the specific desires, likes, dislikes, and motivations that influence a customer’s purchasing decisions. These preferences complement customer needs, which refer to the basic requirements that a customer has for a product or service. For example, a customer may need shoes, but they may also have specific preferences for a particular style, brand, or color. Understanding customer preferences is an important aspect of marketing, as it can help businesses to develop effective branding, product development, distribution, and customer experience strategies. By appealing to customers’ preferences, businesses can better meet the needs and expectations of their target audience and increase the likelihood of making successful sales. The following are common types of customer preference.

Convenience
Preferring things that are easy such as a settling for a nearby restaurant. Convenience is considered a strong type of customer motivation.

Effort
The satisfaction that results from effort. For example, a customer who gains a sense of accomplishment from a diy project.

User Interfaces
Some customers will prefer the simplest user interface possible. Others will prefer lots of buttons to play with. This can be as much about preference as need.

Communication & Information
Preferences related to communication style and information density. For example, some customers want to read detailed specifications and others want to hear a story.

Stability vs Variety
Customers who would prefer the same exact shoes they purchased a year ago in the same season versus customers who prefer an incredible variety of shoes and avoid repeat purchases.

Risk
The risk tolerance of the customer. Applies to seemingly innocuous things such as purchasing a new brand for the first time.

Values
Preferences related to values such as customers who purchase environmentally friendly products.

Sensory
Preferences related to color, look, taste, smell, touch and sound.

Time
Time preferences such as a customer who prefers an attentive waiter who drops buy every 5 minutes versus a customer who doesn’t want to feel rushed.

Customer Service
It is well known in the customer service industry that some customers prefer friendly service and others prefer diligence and professional distance. For example, a hotel porter who engages in friendly conversation versus dry information about the room and hotel.

Customer Experience
Preferences related to the end-to-end customer experience. For example, the interior design, lighting, art, music and social atmosphere at a cafe.

Learn More
Managing Expectations Jonathan Poland

Managing Expectations

Managing expectations is the practice of communicating information to prevent gaps between stakeholder perceptions and business realities. It is common…

Commodity Risk Jonathan Poland

Commodity Risk

Commodity risk is the risk that changes in commodity prices may result in losses for a business. Commodity prices can…

Contract Risk Jonathan Poland

Contract Risk

Contract risk refers to the potential negative consequences that a business may face as a result of issues or problems…

Government Contract Renewals 150 150 Jonathan Poland

Government Contract Renewals

Renewing a government contract typically involves a series of steps to assess the contractor’s performance, determine whether renewal is in…

Operational Risk Jonathan Poland

Operational Risk

Operations risk is the risk of financial loss or other negative consequences that may arise from the operation of a…

Life Skills Jonathan Poland

Life Skills

Life skills are essential abilities that enable individuals to navigate the complexities of daily life and achieve their goals. These…

Business Decisions Jonathan Poland

Business Decisions

A business decision is a commitment made by a company, team, or individual employee to a specific course of action.…

Internal Branding Jonathan Poland

Internal Branding

Internal branding involves creating a strong brand identity within the company itself, rather than just focusing on marketing to customers.…

Venture Capital Jonathan Poland

Venture Capital

Venture capital is a type of private equity financing that is provided to early-stage, high-risk, high-potential companies. Venture capital is…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Brand Image Jonathan Poland

Brand Image

Brand image is the overall perception that consumers and the public have of a brand. It is the way that…

IT Architecture Jonathan Poland

IT Architecture

An IT architecture is a framework that describes the components of an information technology (IT) system, how they work together,…

Cause and Effect Jonathan Poland

Cause and Effect

Cause and effect is a concept that refers to the relationship between an event (the cause) and a subsequent result…

The World’s Biggest Customer 150 150 Jonathan Poland

The World’s Biggest Customer

the U.S. government is the world’s biggest customer, spending over $6 trillion annually on goods and services. Here are some…

What is FMCG? Jonathan Poland

What is FMCG?

Fast moving consumer goods (FMCG) are products that are sold quickly and at a relatively low cost. These products are…

The Power of Compound Interest Jonathan Poland

The Power of Compound Interest

Traditional finance will explain compound interest as the interest paid on a loan or deposit calculated based on both the…

Target Costing Jonathan Poland

Target Costing

Target costing is a cost management approach that involves setting a target cost for a product or service and then…

What is a Self-Replicating Machine? Jonathan Poland

What is a Self-Replicating Machine?

Self-replicating machines are robots or nanobots that are capable of producing copies of themselves, using scavenged materials and energy to…

Progress Trap Jonathan Poland

Progress Trap

A progress trap is a situation where a new technology, which has the potential to improve life, ends up causing harm due to a lack of risk management.