The changing dynamics of our everyday lives in the business community dictates what we must do to build a completely satisfied customer base. Our immediate reaction to any customer comment is necessary because if our consumer is left out of the equation (as seems to be the case in so many business structures today), the very foundation of why you started your business in the first place will be demolished.

One of the most important things any business needs to do is determine what type of service you are able and/or willing to give your customer. Many times, businesses get too comfortable with the type of service offered and never take into consideration how our changing environment may be affecting your core business. Are you keeping up with the available technology? For example, once people finally became accustomed and comfortable with downloading music and video onto their MP3 players and computers, the need to actually sell hard copies of CD’s and DVD’s became obsolete. So those companies that dealt in such things had to change their business structures to sell the people what they were ultimately interested in buying and get rid of the services they didn’t use any longer. Times change, technology changes and so must your direction. 

I’ll bet around the turn of the 20th Century when Henry Ford started creating the first automobiles, there were buggy whip manufacturers that had to change their own direction and start selling something else or simply go to work for Henry Ford.  As technology changes, what you offer your customer must also change.

A wise business owner will also check out the competition to see what the “other guys” are doing to gain market share. If your company isn’t doing what the competition is doing, it’s worth an internal discussion to determine whether your purpose is to build a specialized niche or whether the competition may be leaving you in the dust. It’s important to find out your best and most profitable direction sooner than later. If you wait too long you may lose your opportunity.

I also feel that the corporate hierarchy must get closer to their specific business situation to better understand what is really going on with the customer base. Each manager, leader, or vice president must get a clear understanding of what the customer is thinking and needing from your company. Many times, decisions are made by individuals who are not in tune with what is actually happening in the day-to-day operations of their own field locations. Corporate leadership should consider placing their management teams in actual store locations to give them a first-hand understanding how the customer truly interacts with the company.

Let’s say you work in the corporate office of a leading department store chain. Imagine having the corporate leadership sent out to work with the store employees and interact with the customer base at that location for a week or so. Observing how employees are scheduled, understanding the inventory needs and experiencing the hardships by actually running a facility could be an eye opener. I believe that after a week of this kind of experience, the corporate management teams might have a much better perception of how their decisions in the board room impact the field operations. Hopefully that would improve the way business is conducted and ultimately improve the customer service aspect of the business. If it’s done on a continuing basis, the customer base should certainly feel a difference which might just translate into added revenue for your bottom line.

One thing is certain; the need for effective customer service has never been more important than it is today. There is so much information that is immediately available through the Internet, and communications has never been easier and cheaper. While I agree that technology makes customer service efforts a lot easier, never lose sight of the fact that your customer is a “real” person with “real” needs. It is incredibly important to make sure that your company “touches” as many people as possible throughout the day, through personal phone calls or even individual visits (when possible) to insure that your credibility and your concern for their success is completely understood. While a customer may appreciate your service or product; the need for personal contact is, in my opinion, the “make or break” task that can generate a devoted customer base. If you do that, you might just create a customer for life.

Those who watch our national economic situation know that our nation’s economic foundation is based on whether the American consumer is in a spending mood; two-thirds of our national economy is based on whether the public is willing to spend their hard-earned dollars at the nation’s retail centers, car dealerships, or within the service industry sector. But when things start to go bad, as they have over the past 18 months, spending habits can change drastically, damaging the economic infrastructure until consumer confidence finally starts to mend.

There are some economists and business leaders today who believe that the current global recession has not only forced consumers to prioritize their spending habits but it may have changed the consumer consciousness to the point that American businesses will have to determine whether or not they are dealing with a customer base with an entirely new spending attitude. Some business leaders believe that is the case.

The CEO of the J.C. Penney Company recently gave an interview to voice his concerns about today’s shifting consumer behavior. Myron Ullman recently said that the U.S. consumer has a lot of anxiety and is very concerned about how upcoming changes in healthcare may affect their finances in the immediate future. He continued by saying that consumers are suddenly coming to the realization that “they may need to save more than they had originally planned. Their spending habits have changed to reflect this for the foreseeable future.”

He’s not alone; the corporate leadership of Best Buy, Drugstore.com as well as CEOs from the service industry (Hotels, Theme Parks, Restaurants, Rental Car Services) are all starting to realize that the U.S. consumer may never return to the spending habits of the past and that a change in their selling and advertising strategies might be necessary.

While people will continue to consume, they question now is what will they buy, when will they buy and where will they buy. Name brand products are taking a backseat to generic or store brand items. Malls are beginning to show signs of weakness – more and more stores are closing while consumers make their way to other, cheaper alternatives. Instead of going to one of the major mall’s “anchor stores,” they are now heading to places like Wal-Mart, Target or K-Mart to purchase the things their families “need” rather than the things their families “want.”

The economy is beginning to show signs of life for the first time in many months. Consumer spending was up in August by the most since 2001, indicating the biggest part of the economy is starting to rebound from its worst slump in almost 30 years. The 1.3 percent increase in purchases was larger than forecast and followed a 0.3 percent gain in the prior month that was bigger than previously estimated. By the way, incomes were also up at a 0.2% rate.

While all that may be true, the level of consumer confidence continues to be the key question. As I mentioned earlier, economics is all about sociology and until the American consumer starts to feel more positive about spending their money at the “corner store,” restarting the U.S. economy will just have to wait.