Consumers Turn the Tables on Vendors

Marketers take note: When it comes to data collection, the information flow has been pretty much all one way—from consumers to companies that offer courtesy cards, frequent buyer clubs and other discount cards. But soon the data flow will go both ways, as handheld data-collection devices hit the market, forever changing the way buyers make decisions.

With the ability to collect information at the point of sale about corporate social responsibility, environmental stewardship and fiscal responsibility, as well as pricing, product reliability and customer satisfaction, buyers will hold companies to an even higher standard than they do today. Purchasing decisions will become more sophisticated and less predictable.

Marketing messages will need to be even more carefully crafted and even more targeted. Marketing and advertising will also need to be more transparent, as truth in advertising will take on a whole new meaning once buyers are able to instantly determine whether a product delivers on a promised feature or benefit.

Handheld devices aren't on the market yet, but within five years such devices will provide consumers with unprecedented amounts of information.

The possibilities for such devices are endless. For example, shoppers who are concerned about the environment, labor practices or the degree to which a company is involved in addressing social issues could scan the product's bar code and instantly learn the manufacturer's track record on each issue. Consumers might also search for information about hiring practices, customer satisfaction and safety ratings.

“The only requirement would be an accessible database of pertinent information,” writes Direct, an Ezine serving the direct marketing industry. “But that's not likely to be a problem. Without a doubt, thousands of databases would be put together for consumers to use.” There already exist many databases to which the devices offer convenient, user-friendly access.

Eventually, making corporate information available to consumers will be accepted practice. Companies that are not forthcoming will find it increasingly difficult to attract and keep customers. “Handhelds are going to shift the balance of power,” writes Direct. “With these devices in hand, consumers will be able to provide us with an instantaneous referendum on the ways our companies operate.”

Bottom line: Putting more information—and therefore power—in the hands of consumers might seem risky, but in the end, companies will benefit. Occasional buyers will become frequent buyers, and companies will quickly know whether a new product is being accepted or rejected by the marketplace.