Before we get into this model and map the customer behavior to the various stages, we have to understand that changing a product or service for a customer is much like changing a habit/behavior. Let’s take a simple example that most of us all have been through in the recent year or so… upgrading from Windows XP to Windows 7. For those of us who have been through the process, we all know that it is a substantial change in the way we work on a daily basis. Similarly, with the rate of technological innovations at an all-time high, we as customers are repeatedly asked to change our habits and get used to something newer/better/more innovative (you can keep adding the adjectives). In such a situation, some customers adapt to the change faster, but all customers would go through these stages of change as they adapt their life to the new product/service.
To explain these stages clearly and how they apply to an simple change in products, I will take a recent change that I brought about in my behavior when I switched my phone from my trusted Sony Ericsson brand (which by the way I still trust and advocate) to iPhone. It is prudent to mention here that this post is not meant to critique or promote any of these products, but purely an account of my personal experience undergoing a behavioral change.
Stage One: Pre-contemplation
One fine day, my boss got a snazzy iPhone and was sharing the features. Much like advertising what it can do and how it can help us. My answer to most of this points was “My phone can also do this.” or “I am happy with the functionality and robustness of my phone.” At this stage, being an avid user of Sony Ericsson phones for the past decade, I was quite used to them and comfortable with the interface and the functionality. When comparing, I was able to find that my phone had a better camera, I could replace my battery, and stuff like that. “I didn’t really need a touch interface and big screen”.
As a customer I was not yet seeing the need to change… I could even say, I was denying myself to see that the new technology could be more beneficial for me. The bottom line, I was comfortable with my product and did not want to change.
As an organization, when we bring new products into the market, we can’t really shove them into people’s hands or push them to change. This is a time that we have to work with the customers, build brand awareness, capitalize on the early adopters, nurturing their experiences so that they can pass on the goodwill. Some of this would obviously already be in place long before the product comes into the market and is readily available.
Stage Two: Contemplation
As time went by, my boss started using the iPhone and I saw the cool features in action, I started to think about what I could do with all the features. I started to look for options within the Sony Ericsson range to see if there is a phone which will compare with iPhone in terms of features and functionality. This was “Contemplation”, I had started to accept that a change is beneficial, but I wasn’t too sure about iPhone yet. I was still quite rooted with my comfort area.
With a customer who has been using a certain product or service, the amount of time he/she takes to accept a change and look towards a new product/service will depend on the level with which he/she has come to depend on the existing product he/she uses. For me, my Sony Ericsson was quite “close” to me. I used it as a phone, camera, MP3 player, etc. I had all the tools on my system to manage the phone from my PC… so change was hard.
As an organization, depending on the level of change that is expected from the customer, this stage will take a lot of effort or none at all. During this time the customer needs to be kept engaged with the new product/service. These days there are many media options ranging from traditional advertising to social networks. It is important to understand the specific needs of the customer and market to those.
Stage Three: Preparation
Then came a time when I realized that I could do so much more with the iPhone. Stuff that I was difficult till date on the phones I was using. At this point, “I had to do something to change the situation.” For me it was the need to be more informed, than I was, that triggered the change and brought me into this stage. Depending on the customer’s need and the product/service the trigger point will be different.
For a customer, this is the first time that he/she is on the verge of change. He/she has figured that change is inevitable, but is not yet sure about what to do about it. This is the time that they will try different modes… a typical trial and error phase as you may call it. For me, I borrowed an iPhone for a couple of days from a friend and also used my bosses iPhone. The technique for testing the waters will change again with the customer and product/services.
As an organization, this is the point where the real “selling” of the product comes into the picture. For example, if there is an attractive offer which makes it easy for the customer to test the product/service, this is the stage where it will help. At this point, we help the customer test run the products. Let them get a real feel of the “new world” in their own way. As we all know, each customer is different and will thus have different methods to prepare for the change. Having our sales eyes and ears open and ready with a lucrative response is the clincher at this stage.
Having said this, this is also a stage where the customer is very prone to “Relapse” into his/her comfort zone. If the change seems too ominous to the individual, then he/she is more than likely to stay in the comfort zone of the existing products and “give up” on this change. The same applies if the “trial” aspects of the new product/services are too difficult. In some cases, pre-recorded demos or product samplers help a lot. With these, the customer is looking at not putting in too much, but getting a feel of the product/services. Here the organization is looking to nudge the customer to move to the next phase of “Action” and bring about the real change.
Stage Four: Action/Change
While talking to friends and family I started talking about the iPhone. At this time, it had been quite some time since the initial version of the iPhone and with the new 3GS out, the situation was ripe for a change to happen. One fine day, I got an iPhone 3GS gifted to me. Well, for me this stage was easy enough… I had the tools and I could start making changes to my way of working. In the case I was not gifted the iPhone, I would have bought it (provided, I had made the decision for bringing about the change).
For a customer, this is usually the shortest period of the change process. This is the time that the customer gets up and says, “I will go out and buy the product.” This may range from buying a subscription to the service or spending money on buying the full product. Once the customer has made that commitment, they have essentially started the change in their behavior. The customer has at this point accepted that there will be need do work differently from the comfort zones and will now make efforts in that direction. In some cases, this will be to safeguard the investment made, in others it will be to satisfy the need. Whichever it is, at this time, the customer has come out of their comfort zone. Thus this is also the stage where the customer is most prone to “Relapse” to his/her comfort zone. It depends on the motivation behind the change that will determine the amount of effort the customer will put in.
From an organizations perspective, this is the time that they get introduced the customer as an individual (or rather group of individuals… but that is another story). From all the marketing and sales activities, finally, they have gotten a new customer to commit, even if it is a small commitment to test waters. This is the first indicator of returns from the marketing and sales expenses. But should the organization rejoice at this… yes, they should. With the varied amount of products, the organization should feel a sense of achievement that they have won the first battle, but the war is still left to be won. This is when the real test of the organization’s culture and vision begins. The test of whether the commitments that have been made to the customer for getting the new business really hold true when the post sales experience comes into the picture. This is where many organizations falter and thus promote the “relapse” of the customer to their comfort zone.
Stage Five: Adapting/Maintenance
As I got over the initial hurdles of understanding the new technology and got used to the “touch” of my new iPhone I started to see more benefits than I had initially imagined. There were many obstacles that I faced in getting the phone configured and data plan activated, but I persevered. I faced a typical problem that many iPhone users have come across… the absence of Flash support. But I learned to work around that. Website content and Apps took more priority than Flash enabled websites. As more apps started to get downloaded, from games to business apps, the iPhone became more important in daily life.
The key here from the customers’ perspective is the perseverance. While changing products, it is very common to see that one is not able to adapt to the new environment as they are too tightly bound to the old way of doing things. Yes, the customer has taken a conscious decision for the change during earlier stages, but at this time even, there is an inclination to move back to the comfort zone of the old product. The familiarity of the earlier product is always more attractive than the challenge of adapting to the new one. Many customers will “relapse” to the earlier product at this stage as well. From all the customer reviews for new products on the net, you will see that a lot of people have used the products and found one or other feature (or rather lack of feature) that prevented them to use the product further.
From the organizations’ point of view, this is the time that “selling” of the product stops and “helping” the customer starts. From this point, the organization’s approach should be to remove the obstacles that the customers are facing while adapting to the product. Thus, understanding the problem and responding to the customer is paramount in this case as a customer lost at this stage means a loss of investment across the board (i.e. marketing, sales and services).
Stage Six: Relapse
Over the course of my change from my old phone to my new iPhone, there were times that I was thought whether the change was worth the effort. Typical questions that came to mind, “Will this really help with my mail?”, “Will I be able to keep myself updated?”, “Will the photos I take be good enough?”. At other times, I gave up on a functionality saying that it was too hard to do. For example, “Taking photos is too hard, I really liked the special button on my old phone.”, “I make too many mistakes typing.” These are just a few of the times when I could have slipped back into my comfort zone with my trusted Sony Ericsson.
This is not a "stage" in the cycle, rather a path that the customer can take to move back to his/her old product. The one that he/she is used to and "knows about". From a customer's perspective, this is a very tough temptation to ignore. On one side, you have the comfort of a known product that the customer has learnt to trust, while on the other side you have something that is new, something that is "untested" (at least by the customer themself, no matter what the online reviews say). Through the process of the change, the customer is like a child learning to walk... they would much rather crawl if they had their way.
It is upto the organization really to help the customer and keep him/her motivated to keep using the new product. The day that the new product causes just the smallest bit of inconvenience for the customer without the organization being their to support, you can safely assume that the customer will be one step closer to moving back to his/her old product. With the rapidly changing economies, this can be a very tough challenge for even the best in their class.
From a different organizational perspective, for competitors, this can in fact be a lucrative time. For them, the "need" has been created in the customers' mind. The customer has decided to go ahead with a change. So a lot of the hard work has already been done. Essentially, while getting accustomed to my iPhone, if I saw another product which was easier to work with and addressed some of my concerns regarding my iPhone, I may have switched to that product rather than going back to my Sony Ericsson. The dynamics of this phase are much more complex than just the customer's comfort. During this transition into a new product, the customer is vulnerable to marketing and social influences.
Stage Seven: Transcendence/Advocacy/Loyalty
The name of the stage does not really matter. Call it customer advocacy, loyalty, or trust, essentially at this time, the customer has started to rely on the new product. The cycle of change is somewhat complete. It took me about a year and an upgrade to the next iOS to stop thinking of going back to my old phone. Or for that matter any other phone.
The definition of this stage varies based on the organization and the customer. A customer may say that they are an advocate, but the organization may not think so. Or the situation could be reversed. So it is quite difficult to really say when a customer has moved to the stage that they have become advocates of your product. Some may be silent advocates, others may be very passionate and speak in social circles about your product.
Whenever the customer reaches this stage, it marks the end of this story... or should we say the beginning of a new one. As markets grow and customer demands drive innovation and creativity in product offerings, this is the circle of life for products. In my view, neither an organization nor a customer can afford to be happy with reaching this stage. Like a wise man once said, "Change is the only constant in life."
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