Relationship Advice for Small Businesses

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At some point in my marketing career I became acutely aware of how marketers are conditioned to see India through an ‘outside’ perspective. These blogs are my effort to turn the tables, and dig into Indic mythology and scriptures in order to apply their wisdom to today’s marketing and business scenarios.

In the last post we figured out online customer personas for businesses wanting to go digital. Today, let us explore the various relationship stages after the brand and consumer ‘swipe right’.

While I am no relationship expert, but the following life advice holds true for both, traditional and digital businesses. We will now break away from convention and look at our business-consumer relationship through the lens of the four life stages in Indic philosophy.

These are Brahmacharya (student years), followed by Grihastha (householder or family phase). Then comes Vanaprastha (retirement), and finally Sanyasa (renunciation).

For ease of understanding, today's example is inspired by a ‘non-chemical’ cosmetics brand I use regularly - Arata (this is not a paid post). This is a fairly nascent category that is still trying to gather critical mass. I will also try to keep things a little broad based for you to be able to apply the learnings to your own situation. I will also equate each life-stage with a business cycle stage. Caveats done, let’s start!

1. Brahmacharya – student years dedicated to learning the scriptures, worldly affairs and how to be a positive contributor to civil society.

Business life stage – start-up - this is when the consumer first get to know of ‘chemical-free’ cosmetics as an option. Customers typically would do some online research, visit the company website, and speak to friends and family or even doctors who could tell them more. They then typically buy a safe, entry level product with low investment and usage risk.

Why? Reasons for trial could vary from proactive pursuit of a healthier lifestyle, or a possible health scare which could make people clean out their chemical closets. it could also be demographics where an entire generation of consumers have come of age, or the new popular narrative fuelled by social media which is making people question their chemical products.   

Life advice – behave like a gentleman and bring flowers on the first date (at the risk of sounding chauvinistic)! Approach customers with a brief introduction and how your business could improve their lives or be a solution. Answer all questions patiently, maybe even encourage them. Discounted trials and referrals from credible experts could go a long way at this stage to generate trials.  

After all, the more they know about your business, the faster they will be able to make up their mind to commit.

2.  Grihastha – the post honeymoon phase when life really starts. This stage of life is dedicated to building relationships, bringing up children and securing material security.   

Business life stage – growth – this is when ‘chemical-free’ cosmetics are a lifestyle, and people understand the category and products better. They may also start checking out competitive options to see if they can do better. Possibly the business equivalent of the seven year itch, but this stage has the most potential of losing high paying customers.  

Why? Possibly for reasons of variety or product dissatisfaction. It could also be that a friend has recommended or gifted them a competitive, or upgraded alternative.

Life advice – keep your eyes and ears open for competition, new opportunities and also your own shortcomings. While the first two are easier, the toughest is spotting one’s own short comings. Consumers often don’t talk about gaps or dissatisfactions. The simply switch to other alternatives. Hence it important for brands to maintain a constant feedback loop with customers. This helps in upgrading and upselling products, aids new product development and innovation. This would also be a perfect time to introduce a loyalty program for repeat buyers.

3. Vanaprastha – when active parenting evolves to becoming consultants and guides as grown children learn to figure out the world themselves.  

Business life stage – maturity – by now purchase, consumption patterns and brand loyalties are fairly set. While this means assured sales, it also indicates stagnation.

Why? Consumers use your products for specific purposes amongst other brands. This could mean they are probably nearing their ‘frequency of usage’ saturation point. There may also  have been life or cultural changes driving the category, like safer chemical cosmetics, changing requirements, cosmetic trends, or even more accessible permanent treatments.

Life advice – start reading in between lines more carefully than ever! As an independent business owner you have a gold mine of consumer data, digital and social media trends. These should be able to tell you what consumers are searching online, new cultural trends, competitive developments, and pertinent lifestyle changes among other insights. This could shed light on product innovations, possible consumer touch-points and even tweaks to messaging patterns.

4. Sanyasa – this final stage is of world renunciation. Kids are busy building their own lives and grandkids are life’s big joy.  

Business life state – decline – when ‘chemical-free’ cosmetics are no longer a novelty and people feel these products no longer serve the purpose they once did. Consequently usage is decreasing and in some cases stopping altogether.

Why? Well, for one, a particular product could no longer be required, or perhaps a superior product within the category has taken over. It could also be due to moving to safer and more advanced chemical based products or other specialised products for enhanced results.

Life advice – first make a strategic call of wanting to continue the business or cutting ones losses. It is possible the business may have run their course and no longer make sense.  

Alternatively, listen to what the consumers don’t say! Businesses need to keep track of even subtle changes in within their own category, competition and consumer behaviour also in related categories (like Ayurvedic and medicated cosmetics in this case). This could be a possible opportunity to reinvent the business itself to something new and more relevant.

Conclusion – this lens of life-stages is applicable to both, business life cycles and customer relationship life cycles. However while businesses follow a set trajectory, relationships with customers can start at any of the four stages.  

This framework should be helpful in slotting customers at various relationship stages so businesses can modify their behaviour accordingly. These relationships could last a single stage or start a cycle midway. By example, businesses lose many customers after a trial, but then a regular user (in the decline stage) may discover other or new products taking the relationship with the same customer to stage one!

In addition to these life stages it is extremely important to work business development at all times. Only once you get prospective clients can you convert them into regular customers. However, always ask yourself and your customers ‘why’. Why customers choose your business so you know what you did right, and what you can improve. After all building relationships in the era of swipes is tough work.