Welcome to the 'feelings economy'.

Are you worn out by the frenzied pace of change in our new "whateveryouwannacallit" economy? Are you having a tough time finding and keeping good people? Are you puzzled and aggravated by your suddenly impotent marketing and sales efforts? Do you spend sleepless nights wondering if the recovery in the U.S. economy will reverse itself and take you down with it (along with everyone else)?

Well, you can stop wondering. Fundamental shifts in commerce and employee and consumer psychology have permanently changed the competitive landscape for years to come.

The problem, of course, is abundance: abundance of information, abundance of capital, abundance of ideas and abundance of technology. This wealth of opportunity has resulted in too many companies chasing too few, well-informed customers and employees. The consequent shift in power has put some serious hurt on even the most resident- and employee-centric apartment companies as they struggle to understand the new value equation of these turbulent times.

Well, here it is. A simple Theory of Everything in Business: In an oversupplied economy, customer and employee feelings drive engagement, purchase decisions and profitability. Therefore, your brand must be developed and nurtured to enhance those feelings.

Abandon the Status Quo 

Are you competing in a market category oversupplied with interchangeable products or services? Can renters and employees easily (remember, this is subjective) switch from you to a competitor and get just about the same benefits? Do you find yourself frequently competing on rent price and wages?

Welcome to the "Feelings Economy," where planning what to do and how to market has changed dramatically--and permanently.

It used to make sense to pay attention to the apartment industry and benchmark your direct competitors. It used to be enough to learn and diligently apply the latest HR, sales, leasing and marketing tactics and techniques. It used to be prudent to treat business like war and try to kill your competitors.

But it's not any longer. It should be apparent to you by now that the status quo is not working. Your new imperative is to assess and appeal to your employees' and residents' feelings--period. Feelings are the basis for motivation and profit-generating consumption in a market at the mercy of employee and customer choice. Focus on feelings, especially the subtle ones that people themselves cannot articulate.

What Are Feelings, Anyway?

For our purposes, feelings are not the same as emotions. Rather, "feelings" refers to a very specific quality: pleasantness, unpleasantness or neutrality in an experience. Pleasant feelings--excitement, fun, reward, increased self-esteem--habitually condition desire. Unpleasant feelings--pain, effort that is required, decreased self-esteem--condition aversion. And neutral feelings condition forgetfulness.

Given this definition, the purpose of every business in all oversupplied market should be to increase employees' and customers' pleasant feelings while minimizing their unpleasant ones. This goal should be applied systematically to every interaction an employee or resident has with a company, its communication or its representatives. A comprehensive feelings analysis should be applied to every business process.

For example, Johan Arndt, in his paper, "Reflections on Research in Consumer Behavior," published in Advances in Consumer Research 3 (Association for Consumer Research, 1976), identified five stages through which the customer moves during consumption: problem-recognition, search for information to evaluate alternatives, implementation of the purchase, physical consumption and post-consumption activities. By examining those stages in detail, your business can see feelings through your residents' eyes, thus uncovering the real value of your offering. Employees go through a similar process during their daily activities.

In an oversupplied market with an incomprehensible amount of conflicting information, rational decision-making is a myth. Start paying attention to what people do (which is the best indication of how they feel), not what they say. And realize that the more choices there are and the more complex life becomes, the more people make decisions on what "feels" right to them.

Take this to heart and ours will become not only a more productive world but also a more pleasant one in which to live, work and play.

NAA Conference Speaker

Tom Asacker will present "A Clear Eye for Branding" at the 2006 NAA Education Conference & Exposition June 15-17, in Denver, colo. Asacker will speak at 9:45 a.m. and 11:30 a.m. on Friday, June 16.

Tom Asacker is an author, corporate advisor and public speaker who specializes in advancing business relationships by helping organizations tradition from "economically driven" to "emotionally driven. "His philosophies are outlined in his book series, "Sandbox Wisdom," and in his latest book from Paramount Market Publishing, "a Clear Eye for Branding." Straight Talk on Today's Most Powerful Business Concept." For information, visit www.acleareye.com.