Rochester Business Journal

We've all heard the adage "The customer is always right." While this is often applied as a catchphrase for responding to customer inquiries or incompatibilities, customer behavior ultimately influences the actions and decisions of many companies in the economy.
 
In an election year, much has been in the news recently about consumer sentiment. Indeed, since the mid-1940s, the University of Michigan has surveyed consumers to gauge their attitudes on the economic environment. This assessment makes headlines whenever it is released, particularly if there is a significant change.
 
How consumers think and feel influences how companies-manufacturers and firms providing professional services alike-plan for the future. Customers can make or break a product. The same customers who line up outside Apple stores awaiting the newest iPhone opt not to queue for many other seemingly similar products. Why does this happen?
 
Another example relates to choosing a college. Assuming all factors are equal (tuition, academics, location), what makes a student choose a certain college over another? Market research and focus groups provide much of the insight we garner about customer behavior, because ultimately it is the customer who holds the key.
 
If you remember the Silly Bandz craze two years ago, you understand the power of customer demand. An entrepreneur from Ohio propelled Silly Bandz to the height of popularity, making these simple and colorful accessories the talk of every pre-teen in America. What made Silly Bandz the "must-have" item? Perhaps it was a convergence of factors: a relatively low-cost item in a recession, the variety and creativity of the bracelets-NFL teams, animals, outer space, something for everyone. Boys and girls traded Silly Bandz, and they were available in grocery stores, toy stores, drugstores, tourist areas-everywhere.
 
It is always refreshing and inspiring when an entrepreneur finds great success. It is clear that customers responded with enthusiasm-and their wallets!-in making Silly Bandz one of the biggest items for pre-teens in the last decade.
 
Yet understanding what's best for customers doesn't always involve capitalizing on the latest trend or fad. It does require a keen understanding of the market and audience and a focus on the internal customers-employees. After all, it is your employees who will deliver the high-quality, solid strategy and clear results your customers demand.
 
Ever-advancing communication technology has made it easier and more effective for each of your employees to contribute to the bottom line. For example, years ago we would have to gather in a conference room and brainstorm a new idea or campaign. While we still do this today, we now embrace virtual brainstorming, with attendees free to share their ideas wherever they are at the moment.
 
The virtual approach and up-to-the-minute communication are just part of why consultants from Booz & Co. have dubbed the next generation of workers "Generation C-connected, communicating, content-centric, computerized, community-oriented, always clicking." At Dixon Schwabl, we embrace collaborative environments, extending to our office layout with communal office areas for the PR and interactive teams. This shared space leads to exciting new approaches and inspired creativity.
 
At Dixon Schwabl, we reward and celebrate good ideas but also realize that creativity means taking risks. Part of taking risks means embracing new ideas, responding to feedback and giving second chances rather than harsh criticism if something doesn't go quite as planned. We believe that organizations learn by making decisions and responding to employee suggestions and ideas.
 
In a high-energy culture, employees need opportunities to thrive; reward what works to set the example for the organization. Companies are reassured that they are on the right path if an idea fits with the culture and its mission, vision and values. At Dixon Schwabl our core values are respect, integrity, teamwork, community and fun. These core values are easy to understand, and are applicable to a variety of situations and circumstances.
 
Ideas that reflect company culture, the fundamental beliefs held as a company, will help to inspire other employees and serve as models for other programs. By making a company a "living brand," leaders help to create a personality that appeals to a broader audience and attracts employees and clients that match company culture. Our experience in hiring employees in our 25-year history has led us to emphasize a culture fit. The required skills are a must; it is the culture fit that is intangible. Dixon Schwabl also applies a three-year strategy map to guide our decision-making process, ensuring that any responses to employee questions are answered in 24 to 48 hours, with all answers guided by strategy.
 
Is the customer always right? Great workplaces recognize that internal customers (employees) and external customers (clients) are critical in today's consumer-driven economy. With a strategic approach guided by open communication, customers will be on the right path in an increasingly competitive economy. Great workplaces understand the importance of listening to employees and giving them the tools to succeed.
 
Who knows? One of your employees may hold the key to the next Silly Bandz craze. 
 
Lauren Dixon is CEO of Dixon Schwabl Advertising Inc., a marketing communications firm. Great Workplaces is a monthly column authored by executives from companies honored as best places to work.8/31/12 (c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.