Gone are the days when the sales man (sorry yes it was usually a man back then – thank goodness we’ve moved on since then) had all the information about a product and could keep customers in the dark fairly easily and extract an easy sale or maximise the profit at the customers expense.
Known as information asymmetry is when one party has substantially more information than another.
This is what enables businesses to sell things at a 400% mark up or are able to sell customers they don’t really need.
The internet and particularly the second generation of internet technologies which crowd sourced information including reviews and forums enabled customers to share information much more easily and then in turn make more informed choice.
This provided great opportunities for customers to take back some of the power they had lost to information asymmetry but it did have one challenge that came along with it.
The challenge of this develop is that with so much information available it’s hard even for me the most astute of customers to figure out what’s the truth and what’s exaggerated or straight up lies.
For the small business owner it presents a great opportunity to methodically debunk myths, cut through the noise and help customers figure out what the best solutions is for that particular customer and their own individual problem they wish to solve.
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