At a time when the economic crisis is still far from being a relic of the past, we must be prepared to see its consequences as something to be taken as a reference point for the future. In other words, the crisis may pass up - what we learned from it, no.

And one of the things we learned has to do with cost containment and maximization of resources. Every dollar spent in a company should be well spent, regardless of what it does, the situation it lives or his position in the market. Maximization is not a feature that we use just when things go bad. Rather, it’s the new standard.

Companies are used to “know their customers” via third parties. There is too much dependence on consumer studies conducted by "independent" entities. The costs charged by research agencies are considerable, and the worst is that the information provided is not always reliable. Ok, you may gain something in terms of independence ... but valuable resources are lost and we are blindfolded to confirm the quality of the work performed. Consider the opposite: try to find insights from your customers in your own house. Who works in a company is also a consumer. And could be a hunter of valuable information too!

But how can we get some “orientation” in the company? Where to begin in order to get valuable information about our customers?

Set the pieces on the board. Start your search making an (not quite) innocent exercise. Take in all departments of the company where you work and write them on paper cards, distributing them in a clean table. Also include other entities that “gravitate” around the company (suppliers, shareholders, security companies, retail chains, etc.). Do not limit yourself to "large" departments ": if you have any, break it into smaller departments and consider them on an equal basis.

Grouping by proximity. After all the departments identified, do a split: in one side of the table put the departments that have proximity to the customer (if possible, physical and direct proximity) on the other, put the departments whose contact with customers is weak or nonexistent. Try using a broad criterion, do not restrict the criteria.

Grouping by decision power. Right now you have two groups. Among the departments that are 'closer' to the consumer, split the ones that have decision powers in the company from the one’s that haven’t (or if they have it’s very weak). Do the same exercise with the “not close to customers” department. Now you have four groups at the table.

Constructing a Proximity / Decision matrix. Place the groups defined in a structure with four quadrants. You'll have something schematically similar to that found in the attached figure.

So, you have a matrix. Now what? Well, the matrix is an approach on how anyone who wants to implement a customer-centric philosophy in a company must act. Let’s find why every quadrant of the matrix is important… and unique.

Quadrant A - the emotionals
If a company wants to create an innovation platform focused on consumers, this quadrant is by nature the place to begin this process. Not only because the departments of Marketing, Public Relations and Market Research are concentrated in this quadrant, but also because communication with the consumer is outlined here. It is thus expected that the headquarters of an expert in innovation and Consumer Behavior is settled here. It's the emotional heart of the organization, and supposedly the one that contains more people who really understand the consumer. Here the contact with the consumer is direct, and insights can be obtained either in situ (watching a focus group, for example) or after the team analyzed the data. These sectors have access to the "Whole Picture".
Main precautions that a insight hunter must have in this quadrant: (i) fostering a sensitive relationship with the quadrant B, integrating it in the innovation strategy focused on the consumer - often undervalued by the Administration Board - and (ii) fostering a “taste for collecting information” for those working in Quadrant C, through procedures that capture consumers sensitivity and the potential needs they have.

Quadrant B - the rationals
This is the most powerful quadrant of the matrix, and not always easy for those seeking to implement a philosophy of innovation based on the consumer. By definition, management is more comprehensive than other sectors, and cannot devote to marketing all the attention it deserves. Is in charge of the company's survival as a whole, and is very common to consider a strategy based in consumer behavior as something "exotic" and not a priority. Information about the consumer is quite distant, indirectly or truncated by the analysis of marketing departments. This quadrant is the most rational of the company. So this asks for a seduction approach: please show the consumer’s importance on the process of valuing business, provide monetizable contributions coming from consumer research, and provide real examples of what customers think about the company. Everything counts to get this quadrant awareness.

Quadrant C - the fieldworkers
In a customer-centric management, Quadrant C is the most fundamental. The customer service staff in supermarkets, the sales force, the delivery boys, the promoters, the employees, etc ... are a valuable resource for information about customers. And having less decision-making capacity than the previous groups is an unexpected advantage: the less they decide, the more customers "open the defences" with them. Faster, a Wallmart customer complains about a product to the cleaning man, than it does to strangers in a focus group or individual interview. The challenge here is to present the "Whole Picture" to these people, so they feel part of something important even though they have little voice in decision-making. If they feel important, the more easily they can be directed to - with subtlety - capturing information relevant for the previous quadrants.

Quadrant D - the organizers
This quadrant is tricky to work in a customer-centric management implementation, because their contact with customers is reduced - as is the ability to decide on actions that relate to it. However, it does not mean that there are no sources of information about the customer! If an employee is responsible for claims management ... this is crucial! If the account is faced with someone complaining because of a billing issue, this could hide an opportunity to optimise procedures taken for granted.

There are no perfect approaches when the matter is to know your customer. But I hope this personal essay could help you with the adventure. A very gratifying one, if I may say.

Best regards,

Francisco Teixeira
Innovation & Consumer Behaviour Blog
Written for http://www.consumergoodsclub.com