tag:blogger.com,1999:blog-58222381574306910952024-03-13T04:18:12.243-04:00Customer Value in the Now EconomyThis marketing blog is all about the customer! It is based on research by Art Weinstein from the book SUPERIOR CUSTOMER VALUE - FINDING AND KEEPING CUSTOMERS IN THE NOW ECONOMY (Routledge, 2019). Topics include the digital economy, customer-centricity, business models, value propositions, segmentation, service, quality, pricing, image, CRM, metrics, loyalty and retention. Expert contributors offer related insights/best practices. Your thoughts and customer value experiences are welcomed.
Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.comBlogger45125tag:blogger.com,1999:blog-5822238157430691095.post-84530631394091233702023-06-02T12:12:00.003-04:002023-06-02T12:25:59.302-04:005 Think BIG Disruptions by Thomas Ferleman * [45]<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXNlGBX6u6i_hdm4uzJrAoa9QoQ0Ta4cOQetxNewXnPc61e_dz7zaJ6yD9aZzf_rnRoK6_7w1-DisOj-NYpGSFaAoM_CqKw-UOZViT26oLv6cPNr8opctgcFcNs13PMhYS-DgCcwESzNlOS3I7Jo67AB4gWcOs3XGknUVtWO-vZPqmCApfCAK2xSTzDw/s512/drthomasferleman.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="512" data-original-width="512" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXNlGBX6u6i_hdm4uzJrAoa9QoQ0Ta4cOQetxNewXnPc61e_dz7zaJ6yD9aZzf_rnRoK6_7w1-DisOj-NYpGSFaAoM_CqKw-UOZViT26oLv6cPNr8opctgcFcNs13PMhYS-DgCcwESzNlOS3I7Jo67AB4gWcOs3XGknUVtWO-vZPqmCApfCAK2xSTzDw/s320/drthomasferleman.jpg" width="320" /></a></div><br /> <span face="Arial, sans-serif" style="font-size: 12pt;">In the next two
years, the most innovative companies will take advantage of 5 THINK BIG
disruptions impacting the workplace, consumers, and sellers across nearly every
industry. These changes are being played out now, and will reach their zenith by
2025.</span><b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"><o:p> </o:p></span></b><p></p><p>
</p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">1. Renting Things
Instead of Owning Them</span></b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Many large value
purchases will not be sold as long-term capital expenditures, but rented as
operational costs. The automobile and insurance industry will be greatly
impacted by this change. Vehicle ownership will move from individuals with
long-term bank loans and high insurance premiums to corporation investments.
Smart vehicles will become safer and more reliable, thereby reducing the need
for repairs, and necessitating changes in traffic laws.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Even home ownership
will be impacted, as younger consumers increasingly want to work where they
live, instead of being rooted in a cul-de-sac neighborhood. The benefits of a
home mortgage as equity may shift to alternative investments with greater
liquidity. GenX and GenZ increasingly see retirement as a novelty. They prefer
to think of post-work life as an adventure. They will have less need for a
fixed location and greater need for rental experiences. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Computer usage will
continue to become a utility. The most innovative companies will not own
software, but rent it as-needed. Individual computers will become more
standardized and less powerful, as compute power moves to the cloud and
consumption is variable. Meanwhile, land-line bandwidth will be obsolete as
low-earth orbit internet becomes ubiquitous.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">2. Commoditizing
Data as Bundled Offerings</span></b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">With an overwhelming
bulge of data from IoT devices, the most innovative companies will harvest
targeted segments of information and build data lakes of specialized topics
that can be analyzed and re-sold with device level accuracy at the point of
presence.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Every transaction
made by anyone, at any time, will be available for purchase. Privacy concerns
will give way to consumer convenience. Marketers, sellers, and data analysts
supported by software developers, will use these data lakes with predictive
analytics to influence decision-making on every product, political campaigns,
and personal purchases.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">The mobility of data
means that the consumer's location is no longer relevant. Data bundles will
follow the consumer based on device location, and change as vendors earn trust
and vie for their attention. Consumers will care less about who makes the
product and more about who delivers what they want, when they want it. The
postal address will become less important than the consumer's physical
location.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">3. On-the-Go
Consumption</span></b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">The most innovative
companies will find ways to package products and services into
smaller-and-smaller form factors. Purchase labeling like QR codes will become
obsolete as just-walk-out technology eliminates the need to wait in line to
check-out and drone delivery makes its way into our everyday life.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face="Arial, sans-serif"><span style="font-size: 12pt;">Foods and other
ingestible products will move to capsulized form and condensed packaging, where
the value is weighted by time and convenience. This change will be felt most
acutely at fast-food restaurants, the corner convenience store, and legal
psychoactive drugs dispensaries, where consumers just want to get in and out
quickly. This change lends itself to automation with the increased </span>use<span style="font-size: 12pt;"> of
robotics based on pre-defined and re-sold algorithms that need less customized
training.<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">This, too, will be
impacted by the mobility of data. Ordering pizza and beer on the beach will
become more common. In fact, the bundling of data will ensure that your
favorite New York slice is also available in Malibu; delivered on the sand
without even choosing options.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">4. Quality of Life </span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">People will no
longer work to achieve a good standard of living; quality of life will be seen
as a right, not a privilege to be achieved. The most innovative companies will
recognize the value of talent; those that don’t, will struggle to retain top
performers and eventually become obsolete. The power of work will continue to
move into the hands of the worker. Employment packages, ultimatums,
restrictions, contracts, and agreements that control the boundaries of work
will no longer ensure talent doesn’t go somewhere else.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Employers that
demand butts-in-seats and fixed office locations will be seen as out of touch.
People will work where and when they believe it will provide the greatest
quality of life. The five days a week, eight-hour work day is dead. Some
companies will struggle with time-zone differences, but the most innovative
companies will learn to flex worker options and collaborate anywhere and at any
time.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Even governments
will be forced to adopt flexible work schedules. This will impact the
competitive landscape for large, multi-year contracts. With location no longer
a requirement, companies will continue to diversify their workforce and
leverage regional cost savings. Those that centralize will stagnate. New
specializations in human resources and corporate law will emerge to manage
employment requirements and taxes at every local level.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">5. Automation
Everything</span></b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Any repetitive task
or manual sequence will be a candidate for automation. The most innovative
companies will mechanize everything, driving workplace tasks to higher-value
outputs and lowering human touch. These companies will dramatically reduce
error rates, lower costs, and increase speed to delivery. The smart ones will
transfer savings to customers and deepen trust with consumers, resulting in
higher profits over extended horizons. Others will look internally to benefit and
see only short-term gains that eventually lead to stasis.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Job categories like
human resources, legal, administration, manufacturing, and the entire supply
chain will become increasingly automated through self-serve functionality at
the edge. Quick-click enabled by AI/ML solutions will automate the delivery of
a laptop, the selection of benefits, the agreement of a contract, and the
movement of goods and services. Human-in-the-loop will move from highly
educated subject matter experts, to full-stack software developers able to code
and review algorithms that drive high-value, low-cost outputs.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Robotics will become
common with modular specialization being rented as commodities. New robotics
companies will build specialized platforms for fast food restaurants, big bulk
store stocking, last-mile delivery, household services, and medical care. A
build once, rent many approach to the use of robotics will drive down costs and
make implementation much quicker and easier. The workplace robot will become as
standard as the copy machine.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Conclusion</span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">The widely available
compute capacity, no-code/low-code development, and AI/ML, Robotics, and Space
advancements are making choices more available and easily consumable. The value
proposition is now in the hands of the consumer at the edge and not the
producer at the build point. From new-venture startups to long-standing
big-caps, and from cultural discourse in the public square, to the mom-and-pop
shop down the street, we are living in a time of unprecedented change. If you
thought the Industrial Revolution was something, just you wait. The band is
still warming up. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: 0in; margin-right: 12.0pt; margin-top: 0in; margin: 0in 12pt 0in 0in;"><b><span face=""Noto Sans",sans-serif" style="font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><span style="background-color: rgba(0, 0, 0, 0.08);"><span face="Arial, sans-serif">* </span></span><span color="rgba(0, 0, 0, 0.9)" face="-apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif" style="background-color: rgba(0, 0, 0, 0.08); font-size: 14px; white-space: pre-line;">Dr. Thomas Ferleman is an Enterprise Transformation specialist at </span><a class="app-aware-link link-without-visited-state" data-test-app-aware-link="" href="http://amazon.com/" rel="noopener" style="background-color: rgba(0, 0, 0, 0.08); border: var(--artdeco-reset-link-border-zero); box-sizing: inherit; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 14px; font-weight: var(--font-weight-bold); margin: var(--artdeco-reset-base-margin-zero); padding: var(--artdeco-reset-base-padding-zero); text-decoration: var(--artdeco-reset-link-text-decoration-none); touch-action: manipulation; vertical-align: var(--artdeco-reset-base-vertical-align-baseline); white-space: pre-line;" target="_blank">Amazon.com</a><span color="rgba(0, 0, 0, 0.9)" face="-apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif" style="background-color: rgba(0, 0, 0, 0.08); font-size: 14px; white-space: pre-line;">, where he leads Digital Innovation engagements using Amazon’s innovation mechanisms like, Culture of Innovation, Working Backwards (Design Thinking), Innovation Pulse Check (Lean Six Sigma/DMAIC) Roadmap, and SMART Solution Design (Agile) to identify specific end-user problems or opportunities and build customer obsessed solutions. He is a Professor, Data Analytics Engineering (DAEN) Master of Science Program, George Mason University College of Engineering and Computing. He specializes in a broad range of data analytics algorithms, tools, and processes for solving a wide range of real-world problems. He holds a Doctor in Strategic Leadership from Regent University, and MBA, MS in Management, and Bachelor of Science from University of Maryland Global Campus. This post was reprinted by permission from the ALL THINGS INNOVATION blog. For more insights from Dr. Ferleman, go to https://ferleman.com</span></p><p class="MsoNormal"><span color="rgba(0, 0, 0, 0.9)" face="-apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif" style="background-color: rgba(0, 0, 0, 0.08); font-size: 14px; white-space: pre-line;"><br /></span></p><p class="MsoNormal"><span face=""Arial",sans-serif"><br /></span></p><p class="MsoNormal"><span face=""Arial",sans-serif"><br /></span></p><p class="MsoNormal"><span face=""Arial",sans-serif"> </span></p><p></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com28tag:blogger.com,1999:blog-5822238157430691095.post-56594232312172881272022-08-19T11:31:00.000-04:002022-08-19T11:31:39.494-04:00A Metric That Matters - Why Corporate Marketers Embrace the Net Promoter Score (NPS) * [44]<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNEE5i9KBy8A9JWejdmKyEw6tbskWd36a_kHBHBGgCIjCjCVMG_iOX8-cSMPbOv73iM9Ctx-kjdzBnNN55fZx-SKPwTcF5KAShdHBVgHAe7USBxZCJNS2m87UvI9v_kiYagVKkc__ceCAimCXpnAOGsIsNT2Y_23jC58tlokzBvceDY6W2O1SDv2bcgg/s1279/NPS-Layer-1493.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="638" data-original-width="1279" height="205" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNEE5i9KBy8A9JWejdmKyEw6tbskWd36a_kHBHBGgCIjCjCVMG_iOX8-cSMPbOv73iM9Ctx-kjdzBnNN55fZx-SKPwTcF5KAShdHBVgHAe7USBxZCJNS2m87UvI9v_kiYagVKkc__ceCAimCXpnAOGsIsNT2Y_23jC58tlokzBvceDY6W2O1SDv2bcgg/w409-h205/NPS-Layer-1493.png" width="409" /></a></div><br /> <span face="Arial, sans-serif" style="font-size: 12pt;">Frederick
Reichheld’s seminal article “The One Number You Need to Grow” noted that companies
waste much time and resources attempting to measure customer satisfaction via
complex surveys which suffer from poor response rates and ambiguous meaning.
Building on pioneering work at Enterprise Rent-a-Car, the author found that a
single “would recommend” question is a useful predictor of growth, focuses
employees on the right corporate priorities, and captures true loyalty rates
which clearly affects profitability (Reichheld, 2003).</span><p></p>
<p class="MsoNormal"><span color="windowtext" face=""Arial",sans-serif" style="font-size: 12pt; mso-bidi-font-weight: bold;">Doing business today requires
accountability for marketing performance tied to financial outcomes. </span><span face=""Arial",sans-serif" style="font-size: 12pt;">Top executives, board
members, and shareholders demand accountability for new and established
marketing programs. </span><span color="windowtext" face=""Arial",sans-serif" style="font-size: 12pt; mso-bidi-font-weight: bold;">Superior customer value means
knowing customers’ behaviors and buying patterns. Metrics are an important part
of the strategic marketing process to understand how successful the
organization is now and what it needs to accomplish to become even more successful
in the years ahead. </span><span color="windowtext" face=""Arial",sans-serif" style="font-size: 12pt;">Companies employ loyalty and retention initiatives which
directly impacts business performance and maximizes long-term value for
customers.</span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt;">A
major issue for debate in an organization is what metrics to collect and
evaluate. The choices are wide-ranging -- from a single metric such as the Net
Promoter Score (NPS) or North Star Metric (NSM) to literally hundreds of
potential marketing and performance variables. For example, one leading book on
the subject claims that there are 50 marketing metrics that matter related to
the marketing mix, profit margins, customer profitability, share of market, the
web, and other key areas in business (Faris et al., 2006). Clearly, a focused
approach is best. Marketers should choose a limited number of strong industry-specific
measures that make the most sense for an organization within the context of a relevant
customer value metrics framework.</span></p>
<p class="MsoNormal"><b><span face=""Arial",sans-serif" style="font-size: 12pt;">Measuring Customer
Loyalty via the Net Promoter Score</span></b></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt;">There
are many ways to evaluate customer loyalty such as customer satisfaction scores
and indexes, repurchase intentions, recommendation intentions, etc. The NPS measure has capture the attention of marketing managers. </span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt;">A
single-item, 11 point-satisfaction scale -- the Net Promoter Score (NPS) – is used
by Enterprise Rent-a-Car, JetBlue, Intuit (manufacturer of Turbo Tax software)
and thousands of other companies. It is an easy-to-use and insightful metric to
monitor business performance over time. Due to its simplicity and explanatory
power, the Net Promoter Score (NPS) has been widely praised by marketing
practitioners as the best metric for assessing customer loyalty and a company’s
ability to grow.</span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt; mso-bidi-font-weight: bold;">A Net Promoter Score (NPS) is calculated as follows
(Satmetrix, 2011).</span></p><p class="MsoNormal"><span face="Arial, sans-serif" style="font-size: 12pt; text-align: justify;"><span> 1. </span>Following the
service experience, ask each customer one simple question:</span></p>
<p class="MsoListParagraph" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="mso-bidi-font-style: italic; mso-fareast-font-family: Arial;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span><span face=""Arial",sans-serif" style="mso-bidi-font-style: italic;"><i>Based on your last experience with Company X, how
likely would you be to recommend Company X to a friend or colleague? </i></span><span face=""Arial",sans-serif"><i>(Customers respond on a 0-10 point rating
scale where 0 is not at all likely and 10 is extremely likely).</i></span></span></p><p class="MsoListParagraph" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span face="Arial, sans-serif"><i> </i>2.<i> </i>R</span><span face="Arial, sans-serif" style="font-size: 12pt;">espondents may be promoters (9-10), passives (7-8) or detractors (0-6).</span> </p><p class="MsoListParagraph" style="mso-list: l0 level1 lfo1; text-align: left; text-indent: -0.25in;"><span face="Arial, sans-serif" style="font-size: 12pt;">T 3. The</span><span face="Arial, sans-serif" style="font-size: 12pt; text-indent: -0.25in;"> % of
customers who are detractors is subtracted from the % of </span><span face="Arial, sans-serif" style="font-size: 12pt; text-indent: -0.25in;">who are promoters (passives are not considered in the analysis) to compute your NPS.</span></p><p class="MsoListParagraph" style="text-align: left; text-indent: -0.25in;"><span face="Arial, sans-serif" style="font-size: 12pt; text-indent: -0.25in;"> </span><u><span face=""Arial",sans-serif" style="font-size: 12pt;">Example</span></u><span face=""Arial",sans-serif" style="font-size: 12pt;">: </span><span face="Arial, sans-serif" style="font-size: 12pt;">78% of JetBlue
customers are promoters, 12% are passives and 10% are detractors. Jet Blue’s
NPS is 68. This is then compared to the competitive set. For example, Southwest
Airline’s NPS is 62, Delta Airlines and the industry average is 38, and United
Airlines is 10.</span></p>
<p class="MsoNormal" style="text-align: justify;"><span face="Arial, sans-serif" style="font-size: 12pt; text-align: left;">Mike
Gowen, Co-founder of Delighted, says that NPS scores should be assessed
absolutely and relatively. He suggests five ranges of customer experience: a
negative number is poor performance, <30 = lots of opportunities for
improvement, 31-50 = quality experiences are delivered, 51-70 = excellent
customer experiences and 71+ is world class customer experiences. From a
relative perspective, the software industry has an average NPS score of 41; a
low score is 28 and TurboTax has a high score of 55 (Gowen, 2017).</span><sup style="font-family: Arial, sans-serif; text-align: left;"> </sup><span face="Arial, sans-serif" style="font-size: 12pt; text-align: left;"> </span><b style="text-align: left;"><i><span color="windowtext" face=""Arial",sans-serif" style="font-size: 12pt;"> </span></i></b></p>
<p class="MsoNormal"><b><span color="windowtext" face=""Arial",sans-serif" style="font-size: 12pt;">Enhancing Your NPS Program</span></b></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt;">While
the potential real-world advantages -- long-term value creation, customer loyalty,
and corporate growth -- of a well-executed NPS initiative are clear, researchers
are concerned that this single-item metric is subject to measurement bias,
lacks validity, and may be inferior to other customer satisfaction and loyalty
measures.</span></p>
<p class="MsoNormal"><span color="windowtext" face=""Arial",sans-serif" style="font-size: 12pt;">Here are three ways you can improve and adapt the NPS
approach. First, the psychometric properties of the scale can be reevaluated.
While an 11-point (0-10) point scale is intellectually appealing, consider
using a 3-point (detractors, passives, or promoters) scale or the standard 5 or
7-point Likert scales. NPS research has
been found to</span><span face=""Arial",sans-serif" style="font-size: 12pt;">
fare well on test-retest reliability -- a recent study reported an r =.75 which
exceeded satisfaction with the brand r=. 70 and attitude toward the brand, r=.69 (Sauro, 2018). Further work is needed for other forms
of reliability and validity.</span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt;">Second,
the idea of the customer may be extended to other stakeholders such as
employees, suppliers, affiliates, and so forth. In response to management’s reliance
on NPS, United Airlines flight attendants pushed back by introducing a weekly
FPS (Flight Attendant Promoter Score) to evaluate management practices. The
early returns were not good as flight attendants gave airline management a
minus 95 week one (Murphy, Jr., 2022).<o:p></o:p></span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt;">Third,
employees in many industries are reported to be stressed from increased
pressure to achieve excellent numbers. A more balanced view which would include
NPS as part of a battery of key metrics is recommended. For further reading on customer value metrics, see blog posts 13, 18, 25, 36 & 38.</span></p>
<p class="MsoNormal"><b><span color="windowtext" style="font-size: 12pt;"><span style="font-family: arial;">References
</span></span></b></p>
<p class="MsoNormal"><span color="windowtext"><span style="font-family: arial; font-size: x-small;">Farris, P.W, et al. (2006). <i>Marketing
Metrics: 50+ Metrics Every Executive Should Master</i>, Upper Saddle River, NJ:
Wharton School Publishing.</span></span></p>
<p class="MsoNormal"><span style="font-size: x-small;"><span color="windowtext"><span style="font-family: arial;">Gowen, M. (2017). What is a
good Net Promoter Score to have? Response (May 19), </span></span><a href="http://www.quora.com/What-is-a-good-net-promoter-score-to-have/" style="font-family: arial;">www.quora.com/What-is-a-good-net-promoter-score-to-have/</a></span></p>
<p class="MsoNormal"><span color="windowtext"><span style="font-family: arial; font-size: x-small;">Murphy, Jr. (2022). United
Airlines flight attendants just made a big announcement and basically nobody is
happy, <i>Inc.</i>, August 6.</span></span></p>
<p class="MsoNormal"><span color="windowtext"><span style="font-family: arial; font-size: x-small;">Reichheld (2003). The one
number you need to grow, <i>Harvard Business Review</i>, December.</span></span></p>
<p class="MsoNormal"><span color="windowtext"><span style="font-family: arial; font-size: x-small;">Satmetrix (2011). Calculate
your Net Promoter Score, <a href="http://www.satmetrix.com/net-promoter/">www.satmetrix.com/net-promoter/</a></span></span></p><p class="MsoNormal"><span style="font-size: x-small;"><span color="windowtext">Sauro, J. (2018). Measuring the reliability of the Net Promoter Score, </span><a href="https://measuringu.com/nps-reliability/">Measuring the Reliability of the Net Promoter Score – MeasuringU</a></span></p><p class="MsoNormal"><span color="windowtext"><br /></span></p><p class="MsoNormal"><span color="windowtext">* </span><i><b>Art Weinstein, Ph.D.</b>, is the blogmaster and a Professor of Marketing at Nova Southeastern University. He may be contacted at art@nova.edu</i></p>
<p class="MsoNormal"><span color="windowtext"><span style="font-family: arial; font-size: x-small;"> </span></span></p>
<p class="MsoNormal"><span color="windowtext"><span style="font-family: arial;"> </span></span></p>
<p class="MsoNormal"><span color="windowtext"><span style="font-family: arial;"> </span></span></p>
<p class="MsoNormal"><span color="windowtext"><span style="font-family: arial;"> </span></span></p><p><br /></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com18tag:blogger.com,1999:blog-5822238157430691095.post-64805632113899764092022-07-14T10:30:00.001-04:002022-07-14T10:40:14.669-04:00The Value of Customer Centricity: Listening with the Head, Heart, and Feet by Kanika Meshram * [43]<p></p><div class="separator" style="clear: both; text-align: left;"> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhu0UHfkY6rhG2pFSb_IJylG18qQ8nraprGWX-cpuOL6cLdXqKkvfeBq3kc8S2-pWH4Y1Xy2Y7gpMEWxfsip9uTZXBorEZIKMMa4whlW1QGwsKeuiMMlpjRb6X4R5SCdpt_UP4MAglNOBHnfp5IOn3aPMupM6ga97atzvUn8om09pvjNk93eUOJ_QLs5A/s318/isokings.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="159" data-original-width="318" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhu0UHfkY6rhG2pFSb_IJylG18qQ8nraprGWX-cpuOL6cLdXqKkvfeBq3kc8S2-pWH4Y1Xy2Y7gpMEWxfsip9uTZXBorEZIKMMa4whlW1QGwsKeuiMMlpjRb6X4R5SCdpt_UP4MAglNOBHnfp5IOn3aPMupM6ga97atzvUn8om09pvjNk93eUOJ_QLs5A/w524-h281/isokings.jpg" width="524" /></a></div><p></p><div class="separator" style="clear: both; text-align: left;"><span face="Arial, sans-serif" style="text-indent: 0.5in;"> <span style="font-size: medium;"> </span><span style="font-size: medium;"> </span></span><span face="Arial, sans-serif" style="text-indent: 0.5in;"><span style="font-size: medium;">The pandemic has upended how brands
create customer value. As marketers continue to think what's new and valuable to customers, I have three brands that just got this right.</span></span></div><div class="separator" style="clear: both; text-align: left;"><br /></div><p></p><p></p><p class="MsoNormal" style="line-height: 150%; text-indent: 0.5in;"></p><p class="MsoListParagraph" style="line-height: 150%; margin-left: 0.75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span lang="EN-AU" style="font-family: Wingdings; font-size: 11pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span face=""Arial",sans-serif" lang="EN-AU" style="font-size: 11pt; line-height: 150%;">Airbnb,
we all missed travelling during those dreadful lockdown periods. This meant
Airbnb was nowhere near as popular as it used to be, but this brand differentiated
their value position. They offered 100,000 stay places for healthcare workers
and first responders around the world. They also waived all fees for healthcare
workers <a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftn1" name="_ftnref1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-AU" style="font-size: 11pt;">[1]</span></span><!--[endif]--></span></a>.</span></p><p></p><p></p><p class="MsoListParagraph" style="line-height: 150%; margin-left: 0.75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span lang="EN-AU" style="font-family: Wingdings; font-size: 11pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: EN-GB;">Ø<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span face=""Arial",sans-serif" lang="EN-AU" style="font-size: 11pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-GB;">Would we survive without Amazon.com in the early
days of lockdown? I certainly did not. As a world leader in e-commerce, Amazon
became the emergency anchor for those desperate to stock up on vital household
goods and products to protect them from Covid-19, like hand sanitizer, face
masks and disinfectants. How did they do this, read on.</span></p><p class="MsoListParagraph" style="line-height: 150%; margin-left: 0.75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span lang="EN-AU" style="font-family: Wingdings; font-size: 11pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span face=""Arial",sans-serif" lang="EN-AU" style="font-size: 11pt; line-height: 150%;">Stagekings,
an Australian live event stage design company, practically shut down overnight due
to ban on public gatherings in the pandemic. Jeremy Fleming, the Managing Director
of Stagekings decided to write an open letter to people. In his letter he wrote,
“we want to keep our specialist tradespeople off the streets and our factor
lights on, so tell us what is it that you guys need now that you’re stuck at
home?’ His compelling open letter went viral and helped him launch IsoKings, a
work from home furniture making company</span><span face="Arial, sans-serif" lang="EN-AU" style="background: white; font-size: 11pt; letter-spacing: -0.35pt; line-height: 150%;">—</span><span face=""Arial",sans-serif" lang="EN-AU" style="font-size: 11pt; line-height: 150%;">
reporting a profit of 1.5 million in less than a year. </span></p><p class="MsoNormal" style="line-height: 150%; text-indent: 0.5in;"></p><p style="line-height: 150%; text-indent: 0.5in;"><span face=""Arial",sans-serif" lang="EN-AU"><span style="font-size: medium;">If you look closely, all these three brands have an
important connection<span style="background: white; color: black; letter-spacing: -0.35pt;">—customer-centricity an almost difficult to define concept as it is to
achieve. </span><span style="color: black; mso-themecolor: text1;">Lamberti (2013) </span><span style="background: white; color: black; letter-spacing: -0.35pt;">defines customer centricity
as </span><span style="background: white; color: black; mso-color-alt: windowtext;">putting
customers’ interests at the centre of a firm’s actions. Yet, 85% of brands fail
at achieving just that thus, value creation. <a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftn2" name="_ftnref2" style="mso-footnote-id: ftn2;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span face="Arial, sans-serif" lang="EN-AU" style="background: white; color: black;">[2]</span></span></span></span></a> Let’s unpack this dilemma
for a moment. Most brand have a customer centric value proposition <span style="letter-spacing: -0.35pt;">—</span>defined as promise that summarises why
consumers should buy a firm’s offering (Payne et al., 2017). </span>But when
the pandemic hit, something became very clear; most companies had shallow knowledge
on their customers because of which they couldn’t adapt their value offerings
quickly enough to cater to the evolving needs of their consumers.<a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftn3" name="_ftnref3" style="mso-footnote-id: ftn3;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span face="Arial, sans-serif" lang="EN-AU">[3]</span></span><!--[endif]--></span></span></a>
Then, for those that were getting close to customers were accused of invading
customer privacy. <a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftn4" name="_ftnref4" style="mso-footnote-id: ftn4;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span face="Arial, sans-serif" lang="EN-AU">[4]</span></span></span></span></a> But
then how did Amazon, Air BnB and Stagekings managed to create a customer
centric business model which is built on the heart, head, and feet?</span><span style="font-size: medium;"> </span> </span></p><p style="line-height: 150%; text-indent: 0.5in;"><span face=""Arial",sans-serif" lang="EN-AU"><i><span style="background: white; color: black; letter-spacing: -0.35pt;"><span style="font-size: medium;">Customer centricity
starts from the heart, as does organisation culture.</span></span></i><span style="background: white; color: black; letter-spacing: -0.35pt;"><span style="font-size: medium;"> In case of Airbnb their
business model delivers a welcoming and inclusive work culture throughout
employee journey from recruiting and onboarding to physical facilities, and
food. <a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftn5" name="_ftnref5" style="mso-footnote-id: ftn5;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span face="Arial, sans-serif" lang="EN-AU" style="background: white; color: black; letter-spacing: -0.35pt;">[5]</span></span></span></span></a> In an anonymous employee satisfaction survey conducted by Glassdoor, 90% stated
that they would recommend Airbnb to others. The company also significantly invests
in creating partnerships between their employees, customers, and Airbnb host. Pre-Pandemic,
the three co-founders of Airbnb consistently visited and stayed at the homes of
key hosts around the world, an experience that likely built significant loyalty
(Sundararajan, 2014). Thus, through Airbnb we learn the valued role of organisational
culture in deploying empathy by walking into the shoes of the customers. </span><span style="font-size: medium;"> </span> </span></span></p><p style="line-height: 150%; text-indent: 0.5in;"><span style="font-size: medium; text-indent: 0.5in;"><span face="Arial, sans-serif" style="background: white; letter-spacing: -0.35pt; text-indent: 0.5in;">Another
universal truth is that <i>value is not just about winning customers’ hearts
but also their head (or minds)</i>. Customers care about value —both price and
time. Hence, </span><span face="Arial, sans-serif" style="text-indent: 0.5in;">in the lockdown period, </span><span face="Arial, sans-serif" style="background: white; letter-spacing: -0.35pt; text-indent: 0.5in;">Amazon </span><span face="Arial, sans-serif" style="text-indent: 0.5in;">leveraged machine
learning to forecast when customers are going to place next order based on
their buying patterns. According to David, the vice president of global customer
fulfillment at Amazon, “machine learning models running in the background gave us
different scenarios that allowed us to plan consumer spending patterns, when different
cities conducted different styles of lockdowns.” </span><a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftn6" name="_ftnref6" style="font-family: Arial, sans-serif; text-indent: 0.5in;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN-AU">[6]</span></span></span></a><span face="Arial, sans-serif" style="text-indent: 0.5in;">.
Now </span></span><span face="Arial, sans-serif" style="background: white; letter-spacing: -0.35pt; text-indent: 0.5in;"><span><span style="font-size: medium;">not
everyone knows how to use AI to interact with customers. But the benefit here
is that customers are almost always interacting with AI. They look at their
phones up to 150 times a day checking Facebook, comparing prices, researching
travel, or paying bills. At any given moment a customer could be engaged in
multiple interactions — transactional, personal, or even non-intentional. Some
will be pleasant and entertaining, some rife with friction and frustration. But
the key takeaway is that customer value creation is not only evolving, but
increasingly fragmented and highly individualised. Which Amazon learned sooner
than other brands. </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span><span style="font-size: large;"> </span></span></span></p><p style="line-height: 150%; text-indent: 0.5in;"><span face="Arial, sans-serif" style="background: white; font-size: large; letter-spacing: -0.35pt; text-indent: 0.5in;"><i>Finally,
customer centricity should be</i> <i>the feet—the purpose of your brand existence</i>.
In market orientation literature, </span><span face="Arial, sans-serif" style="background: white; font-size: large; text-indent: 0.5in;">the underlying assumption is that a company is a
repository of resources and competences. They develop products and services as
their core value proposition, then the company acts on them or modifies the
offer to meet customers’ expectations (Galbraith, 2002). <span style="letter-spacing: -0.35pt;">But consider IsoKings, a brand launched out of
desperation to survive the extensive lockdowns in Australia. From the outset,
Jeremey Fleming had no money nor the inclination to use direct marketing to
sell his furniture. Instead, he focused on direct communications with customers
via social media and product reviews. Jeremy asked customers what furniture
they needed, </span></span><span face="Arial, sans-serif" style="font-size: large; text-indent: 0.5in;">people would respond, we want a shoe rack and then
100 people would agree. So, he made a shoe rack. Then he had 1,000 people ask
for a cat tower. So, he did a post and said if 400 people like or comment on
this, we’ll make a cat tower and they did, so they did. Keeping customers at
the core of their value delivery system IsoKings was able to expand his product
line from a single work from home desk to 170 home furniture products in the lockdown
period. Reflecting on these brand example, a critical learning curve for customer-centric business models is to create value by listening to customers from the
head, heart, and feet.</span><span face="Arial, sans-serif" style="font-size: large; text-indent: 0.5in;"> </span><span face="Arial, sans-serif" style="font-size: large; text-indent: 0.5in;"> </span></p><div style="mso-element: footnote-list;">
<hr align="left" size="1" width="33%" />
<!--[endif]-->
<div id="ftn1" style="mso-element: footnote;">
<p class="MsoFootnoteText"><a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftnref1" name="_ftn1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><span lang="EN-AU"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span face=""Calibri",sans-serif" lang="EN-AU" style="font-size: 10pt; mso-ansi-language: EN-AU; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin;">[1]</span></span><!--[endif]--></span></span></span></a><span lang="EN-AU"> <a href="https://news.airbnb.com/en-au/airbnb-hosts-to-help-provide-housing-to-100000-covid-19-responders/"><span style="font-family: "Times New Roman",serif;">https://news.airbnb.com/en-au/airbnb-hosts-to-help-provide-housing-to-100000-covid-19-responders/</span></a></span><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><o:p></o:p></span></p>
</div>
<div id="ftn2" style="mso-element: footnote;">
<p class="MsoFootnoteText"><a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftnref2" name="_ftn2" style="mso-footnote-id: ftn2;" title=""><span class="MsoFootnoteReference"><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-AU" style="font-family: "Times New Roman",serif; font-size: 10pt; mso-ansi-language: EN-AU; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast;">[2]</span></span><!--[endif]--></span></span></span></a><span lang="EN-AU" style="font-family: "Times New Roman",serif;"> </span><span lang="EN-AU"><a href="https://www.lbbonline.com/news/its-not-you-its-me-why-brands-fail-at-customer-centricity"><span style="font-family: "Times New Roman",serif;">https://www.lbbonline.com/news/its-not-you-its-me-why-brands-fail-at-customer-centricity</span></a></span><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><o:p></o:p></span></p>
</div>
<div id="ftn3" style="mso-element: footnote;">
<p class="MsoFootnoteText"><a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftnref3" name="_ftn3" style="mso-footnote-id: ftn3;" title=""><span class="MsoFootnoteReference"><span lang="EN-AU"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span face=""Calibri",sans-serif" lang="EN-AU" style="font-size: 10pt; mso-ansi-language: EN-AU; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin;">[3]</span></span><!--[endif]--></span></span></span></a><span lang="EN-AU"> <a href="https://www.forbes.com/sites/garydrenik/2021/09/21/85-of-products-fail-when-companies-dont-talk-to-consumers--this-company-is-changing-that/?sh=70364a7d2aa2"><span style="font-family: "Times New Roman",serif;">https://www.forbes.com/sites/garydrenik/2021/09/21/85-of-products-fail-when-companies-dont-talk-to-consumers--this-company-is-changing-that/?sh=70364a7d2aa2</span></a></span><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><o:p></o:p></span></p>
</div>
<div id="ftn4" style="mso-element: footnote;">
<p class="MsoFootnoteText"><a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftnref4" name="_ftn4" style="mso-footnote-id: ftn4;" title=""><span class="MsoFootnoteReference"><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-AU" style="font-family: "Times New Roman",serif; font-size: 10pt; mso-ansi-language: EN-AU; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast;">[4]</span></span><!--[endif]--></span></span></span></a><span lang="EN-AU" style="font-family: "Times New Roman",serif;"> </span><span lang="EN-AU"><a href="https://www.forbes.com/sites/dbloom/2022/03/15/consumers-want-privacy-data-protection-from-brands-but-still-love-email-too/?sh=455604548ea4"><span style="font-family: "Times New Roman",serif;">https://www.forbes.com/sites/dbloom/2022/03/15/consumers-want-privacy-data-protection-from-brands-but-still-love-email-too/?sh=455604548ea4</span></a></span><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><o:p></o:p></span></p>
</div>
<div id="ftn5" style="mso-element: footnote;">
<p class="MsoFootnoteText"><a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftnref5" name="_ftn5" style="mso-footnote-id: ftn5;" title=""><span class="MsoFootnoteReference"><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-AU" style="font-family: "Times New Roman",serif; font-size: 10pt; mso-ansi-language: EN-AU; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast;">[5]</span></span><!--[endif]--></span></span></span></a><span lang="EN-AU" style="font-family: "Times New Roman",serif;"> </span><span lang="EN-AU"><a href="https://www.livingroomanalytics.com/how-airbnb-became-the-worlds-best-place-to-work"><span style="font-family: "Times New Roman",serif;">https://www.livingroomanalytics.com/how-airbnb-became-the-worlds-best-place-to-work</span></a></span><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><o:p></o:p></span></p>
</div>
<div id="ftn6" style="mso-element: footnote;">
<p class="MsoFootnoteText"><a href="https://d.docs.live.net/c09408476851b9a7/Documents/SCV-blog/Customer%20Centricity_KM.docx#_ftnref6" name="_ftn6" style="mso-footnote-id: ftn6;" title=""><span class="MsoFootnoteReference"><span lang="EN-AU"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span face=""Calibri",sans-serif" lang="EN-AU" style="font-size: 10pt; mso-ansi-language: EN-AU; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin;">[6]</span></span><!--[endif]--></span></span></span></a><span lang="EN-AU"> <a href="https://www.mccormick.northwestern.edu/news/articles/2021/02/how-amazon-moved-faster-than-ever-during-the-pandemic.html"><span style="font-family: "Times New Roman",serif;">https://www.mccormick.northwestern.edu/news/articles/2021/02/how-amazon-moved-faster-than-ever-during-the-pandemic.html</span></a></span><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><o:p></o:p></span></p>
</div></div><p></p><p class="MsoNormal" style="line-height: 150%;"><b><span face=""Arial",sans-serif" lang="EN-AU" style="line-height: 150%;">References<o:p style="font-size: 11pt;"></o:p></span></b></p><div><div>
<p class="MsoNormal"><span face=""Arial",sans-serif" lang="EN-AU" style="background: white; color: #222222; font-size: 11pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-GB;">Galbraith, J. R. (2002). Organizing to deliver solutions. <i>Organizational
dynamics</i>, <i>31</i>(2), 194.</span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" lang="EN-AU" style="background: white; color: #222222; font-size: 11pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-GB;">Lamberti, L. (2013). Customer centricity: the
construct and the operational antecedents. <i>Journal of Strategic marketing</i>,
<i>21</i>(7), 588-612.</span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" lang="EN-AU" style="background: white; color: #222222; font-size: 11pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-GB;">Payne, A., Frow, P., & Eggert, A. (2017). The
customer value proposition: evolution, development, and application in
marketing. <i>Journal of the Academy of Marketing Science</i>, <i>45</i>(4),
467-489.</span></p>
<p class="MsoFootnoteText"><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><o:p><span face="Arial, sans-serif" style="background-color: white; color: #222222; font-size: 11pt;">Sundararajan, A. (2014). What Airbnb gets about
culture that Uber doesn’t. </span><i style="color: #222222; font-family: Arial, sans-serif; font-size: 11pt;">Harvard Business Review</i><span face="Arial, sans-serif" style="background-color: white; color: #222222; font-size: 11pt;">, </span><i style="color: #222222; font-family: Arial, sans-serif; font-size: 11pt;">11</i><span face="Arial, sans-serif" style="background-color: white; color: #222222; font-size: 11pt;">.</span> </o:p></span></p>
<p class="MsoFootnoteText"><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><o:p> <span style="font-size: medium;">* </span></o:p></span><i><span lang="EN-GB"><span style="font-family: arial;">Dr. Kanika Meshram is a Lecturer in Management and Marketing at the University of Melbourne. She may be reached at kanika.meshram@unimelb.edu.au. Professor Meshram has written this blog post from her research on customer centricity and interview with Jeremy Fleming from Stagekings, Australia.</span></span></i></p><p class="MsoFootnoteText"><span lang="EN-AU" style="font-family: "Times New Roman",serif;"><o:p><span style="font-size: medium;"><i><br /></i></span></o:p></span></p></div></div><p class="MsoNormal" style="line-height: 150%; text-indent: 0.5in;"><br /></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com49tag:blogger.com,1999:blog-5822238157430691095.post-1831268924820031432022-07-07T12:16:00.001-04:002022-07-07T12:22:51.281-04:00Designing Your Customer Engagement Strategy by Laura Patterson * [42]<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2qq80Cg3A_0U-TfJcA-zY9DS6gAy6p8F_rNBePVlUxDtEmXEuvMjSZ68WEfQBRM70dRfH9p-SUK_mWqTzD1HTxG3Mnyb5w-mB5rW2BzG1wiIOa51xQ7TPv_6vzmB_xQ84BjCECiNWCKwWhff2NPEd3_XIZxa8-Vcmny5ISqGl_h-FKNcyujf2UVv8pw/s768/patterson-1920x1080-768x432.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="432" data-original-width="768" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2qq80Cg3A_0U-TfJcA-zY9DS6gAy6p8F_rNBePVlUxDtEmXEuvMjSZ68WEfQBRM70dRfH9p-SUK_mWqTzD1HTxG3Mnyb5w-mB5rW2BzG1wiIOa51xQ7TPv_6vzmB_xQ84BjCECiNWCKwWhff2NPEd3_XIZxa8-Vcmny5ISqGl_h-FKNcyujf2UVv8pw/w375-h180/patterson-1920x1080-768x432.png" width="375" /></a></div><p></p><p style="color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 25px; margin: 21px 0px 10px; padding: 0px;"><span style="color: black;">How would your customers categorize their experience with your firm? A</span> <a href="https://www.forrester.com/home/" style="text-decoration-line: none;">Forrester Research</a> <span style="color: black;">study that shared the findings from interviews with more than 4,600 U.S. consumers about their interactions with 133 companies across a variety of industries revealed that ONLY 13 firms received “excellent” ratings, while 45 were rated either “poor” or “very poor.” Clearly the results suggest improving customer experience and customer engagement will drive better business results.</span></p><h2 style="color: #275093; font-family: folks-lightregular; font-size: 34px; font-weight: normal; margin: 8px 0px 0px; padding: 0px;">Defining Customer Experience</h2><p style="color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 25px; margin: 21px 0px 10px; padding: 0px;"><span style="color: black;">Forrester categorizes the customer experience as the sum of three elements: meeting needs, being easy to work with, and providing customer enjoyment. The more complex your internal processes and the more interconnected technologies you have, the greater the opportunity to negatively impact the experience. Companies who are too internally focused, struggle the most with improving customer experience. To affect customer experience and engage customers you need to be a customer-centric organization. Customer-centric organizations evaluate processes, technologies, personnel, and decisions in terms of the impact on their customers and recognize that customer experience and engagement can be a valuable differentiator in the market.</span></p><div class="wp-caption alignright fbx-instance" id="attachment_36060" style="background-color: #f3f3f3; border-radius: 3px; border: 1px solid rgb(221, 221, 221); float: right; font-family: Arial, Helvetica, sans-serif; margin: 10px; padding-top: 4px; text-align: center; width: 310px;"><a class="fbx-link fancybox image" href="https://visionedgemarketing.com/wp-content/uploads/2010/03/touchpoints.jpg" rel="attachment wp-att-36060" style="text-decoration-line: none;"><img alt="Customer Experience" aria-describedby="caption-attachment-36060" class="wp-image-36060 size-medium" data-attachment-id="36060" data-comments-opened="1" data-image-caption="<p>How do your touch points impact your customer’s experience?</p>
" data-image-description="" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="touchpoints" data-large-file="https://visionedgemarketing.com/wp-content/uploads/2010/03/touchpoints.jpg" data-medium-file="https://visionedgemarketing.com/wp-content/uploads/2010/03/touchpoints-300x300.jpg" data-orig-file="https://visionedgemarketing.com/wp-content/uploads/2010/03/touchpoints.jpg" data-orig-size="328,328" data-permalink="https://visionedgemarketing.com/engagement-improves-customer-experience/touchpoints/" height="300" sizes="(max-width: 300px) 100vw, 300px" src="https://visionedgemarketing.com/wp-content/uploads/2010/03/touchpoints-300x300.jpg" srcset="https://visionedgemarketing.com/wp-content/uploads/2010/03/touchpoints-300x300.jpg 300w, https://visionedgemarketing.com/wp-content/uploads/2010/03/touchpoints-250x250.jpg 250w, https://visionedgemarketing.com/wp-content/uploads/2010/03/touchpoints-100x100.jpg 100w, https://visionedgemarketing.com/wp-content/uploads/2010/03/touchpoints-150x150.jpg 150w, https://visionedgemarketing.com/wp-content/uploads/2010/03/touchpoints.jpg 328w" style="border: 0px none; height: auto; margin: 0px; max-width: 100%; padding: 0px;" title="Customer Experience" width="300" /></a><p class="wp-caption-text" id="caption-attachment-36060" style="color: #666666; font-size: 18px; line-height: 25px; margin: 21px 0px 10px; padding: 0px 4px 5px;">How do your touch points impact your customer’s experience?</p></div><h2 style="color: #275093; font-family: folks-lightregular; font-size: 34px; font-weight: normal; margin: 8px 0px 0px; padding: 0px;">Earn High Marks</h2><p style="color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 25px; margin: 21px 0px 10px; padding: 0px;"><span style="color: black;">Companies who achieve high marks for customer experience generally have invested in cross-channel alignment, established customer-centric metrics, and have a customer-centric culture. These organizations recognized that a positive experience is the responsibility of everyone in the organization. The organizations objectives, strategies and metrics are aligned in order to facilitate the customer experience.</span></p><p style="color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 25px; margin: 21px 0px 10px; padding: 0px;"><span style="color: black;">Customer-centric companies have mapped all the customer touch points and are committed to improving touch point effectiveness. Studies suggest that few companies are good at mapping their customer touch points. Mapping customer experience across all touch points has a tangible impact on the ability to engage with customers. Companies who have mapped the customer touch point process feel this approach has positively affected the success of their customer engagement strategy. Mapping customer touch points is something any company can initiate. Improve your touch point effectiveness with our</span> <a href="https://visionedgemarketing.com/shop/customer-centric-marketing/touch-point-effectiveness-workshop/" style="text-decoration-line: none;">Touch Point Effectiveness Workshop</a>.</p><h2 style="color: #275093; font-family: folks-lightregular; font-size: 34px; font-weight: normal; margin: 8px 0px 0px; padding: 0px;">Four Key Elements to Delivering the Ideal Customer Experience</h2><p style="color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 25px; margin: 21px 0px 10px; padding: 0px;"><span style="color: black;">When it comes to metrics, customer-centric companies monitor customer metrics such as <a href="https://visionedgemarketing.com/three-steps-for-creating-an-engagement-metric-linked-to-profitability/" style="text-decoration-line: none;">engagement</a>, <a href="https://visionedgemarketing.com/loyalty-vs-retention-and-best-practices-for-measuring-loyalty/" style="text-decoration-line: none;">loyalty, retention,</a> growth, and on-boarding for new customers. Research suggests that the ideal experience fulfills four key elements:</span></p><blockquote style="border-left: 5px solid rgb(221, 221, 221); font-family: Arial, Helvetica, sans-serif; margin: 15px 30px 0px 10px; padding-left: 20px;"><ol style="box-sizing: border-box;"><li style="color: #666666; font-size: 18px; line-height: 25px; margin-top: 21px;"><span style="color: black;"><strong>Convenience</strong>: An enterprise needs to deliver on ease of contact, short wait times, through any channel the customer prefers</span></li><li style="color: #666666; font-size: 18px; line-height: 25px; margin-top: 21px;"><span style="color: black;"><strong>Competence</strong>: Humans or self-service tools need to have fingertip access to all necessary information and be consistent across all channels</span></li><li style="color: #666666; font-size: 18px; line-height: 25px; margin-top: 21px;"><span style="color: black;"><strong>Personalization</strong>: Companies and their web sites must recognize and remember the customer, and use existing information about them appropriately</span></li><li style="color: #666666; font-size: 18px; line-height: 25px; margin-top: 21px;"><span style="color: black;"><strong>Proactivity</strong>: A company must proactively reach out whether by phone, text message, or other channels. The topics range from a simple follow-up to informing the consumer about relevant products and services (while still respecting the need for permission and being mindful of customer preferences).</span></li></ol></blockquote><p style="color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 25px; margin: 21px 0px 10px; padding: 0px;"><span style="color: black;">While improving customer experience and engagement won’t cure all the problems your company is facing, it is a pivotal opportunity. Customers are becoming increasingly intolerant of poor customer service. Customer engagement is seen as being about creating relationships which result in value both for customers and for organizations. Research by E-Consulting and Cscape found that a customer engagement strategy increases long-term customer value and the value delivered to customers.</span></p><h2 style="color: #275093; font-family: folks-lightregular; font-size: 34px; font-weight: normal; margin: 8px 0px 0px; padding: 0px;">Develop Your Strategy</h2><p style="color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 25px; margin: 21px 0px 10px; padding: 0px;"><span style="color: black;">After you take a look at your current capabilities and <a href="https://visionedgemarketing.com/shop/customer-centric-marketing/touch-point-effectiveness-workshop/" style="text-decoration-line: none;">map your customer touch points</a>, you can begin to develop a strategy that will enable you to create the ideal experience and improve engagement with customers. To deliver an ideal customer experience, it is important to have a well thought out customer experience and engagement strategy. To be successful the strategy will need to address customer interaction in all its forms (web, phone, etc.), personnel skills, infrastructure to support customer-centric processes and data collection, business process, and customer-service and engagement data.</span></p><p style="color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 25px; margin: 21px 0px 10px; padding: 0px;">* <b style="background-color: white; color: #333333; font-family: lato, sans-serif; font-size: 16px;"><i>Laura Patterson</i></b><i style="background-color: white; color: #444444; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13px;"><span face="Arial, Helvetica, sans-serif" style="color: #333333; font-size: 16px;"> is a marketing practitioner, consultant, writer, and speaker. Contact her at laurap@visionedgemarketing.com. Also, check out Laura's other articles </span><span face="Arial, Helvetica, sans-serif" style="color: #333333; font-size: 16px;">[22 & 38] on the Customer Value in the Now Economy blog.</span></i></p><div class="sharedaddy sd-sharing-enabled" style="clear: both; font-family: Arial, Helvetica, sans-serif;"><div class="robots-nocontent sd-block sd-social sd-social-icon sd-sharing" style="margin-bottom: 1em;"><br /></div></div>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com90tag:blogger.com,1999:blog-5822238157430691095.post-31051946336657066742022-07-06T15:49:00.000-04:002022-07-06T15:49:05.031-04:00What is Customer Value and How Can You Create It? by Gautam Mahajan * [41]<p> </p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgmNoO7lKcK0MwfGc5VTBDUoPxLTZvlf5FgIV5OJL4nHBSAzi3f2GZ2RN8X0SYQckQZLaoc7SHx_jLUqVkYFsEe3zNZXyk6B8FQ2Xusi8YhpWM0WM8-Vvy5qivEyy_y7ZG5MRuvcUirQYvG91eQzVU7uzQFjWjChWRuBAPWt7CfScgUfgfn_5eQHNnNTg" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="494" data-original-width="1050" height="151" src="https://blogger.googleusercontent.com/img/a/AVvXsEgmNoO7lKcK0MwfGc5VTBDUoPxLTZvlf5FgIV5OJL4nHBSAzi3f2GZ2RN8X0SYQckQZLaoc7SHx_jLUqVkYFsEe3zNZXyk6B8FQ2Xusi8YhpWM0WM8-Vvy5qivEyy_y7ZG5MRuvcUirQYvG91eQzVU7uzQFjWjChWRuBAPWt7CfScgUfgfn_5eQHNnNTg" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Value has many different meanings. To some Value
means price (what is the value of this car?) to others it means benefit (the
value I got from this car). It also means the worth of something. That is why
you hear some people saying “value for money” (meaning they are price
sensitive); and others who prefer “money for value” (meaning they are willing
to pay for what they consider as benefits, as from a brand or a better product,
or more convenience etc.)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">The dictionary meaning includes: The regard that
something is held to deserve; the importance, worth, or usefulness of
something. Synonyms are: merit, worth, usefulness, use, utility, practicality,
advantage, desirability, benefit, gain, profit, good, service, help,
helpfulness, assistance, effectiveness, efficacy, avail, importance,
significance, point, sense.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">No wonder, the reader is confused about the value
word that s/he uses so often. When used in the vernacular it does not matter,
but when used as a technical term, like Customer Value, the meaning of Value
must be precise, so that everyone understands what it means, as shown below:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt;"><i><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Customer
Value is the perception of what a product or service is worth to a Customer
versus the possible alternatives. Worth means whether the Customer feels s/he
or he got benefits and services over what s/he paid.</span></i><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">In a simplistic equation form, Customer Value is
Benefits-Cost <i>(CV=B-C)</i>.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">What the Customer pays is not only price (cash,
cheque, interest, payment during use such as fuel and servicing for a car) but
also non-price terms such as time, effort, energy, and inconvenience).<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">The benefits include the advantages or quality of the
product, service, image and brand of the company or the brand of the product,
values, experience, success one gets in using the product and so on.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Values are distinct from Value (the plural of value
as defined above is Value). Values are what someone or a firm stands for:
Honesty, morals, ethics, sustainability, integrity, trust.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Consumers are distinct from Customers. Consumers use
the product or the service, but in all cases do not buy the product/service. The
value the consumer perceives influences the buying evaluation and perception of
the decision maker or the Customer. The Customer is someone who buys or makes
the decision to buy. A Non-Customer is someone who could buy from us, but is
buying from someone else.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 14.4pt; margin-bottom: 12.0pt; mso-outline-level: 2;"><a name="_Toc27649289"><span lang="EN-IN" style="color: #222222; font-family: "Arial",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">How is Value Created and What Does It Do?</span></a><span lang="EN-IN" style="color: #222222; font-family: "Arial",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Value is created just as much by a focus on processes
and systems as much as it is by mind-set and culture. Mind-set and culture are
much more difficult to change, and also difficult to emulate. It is easier to
copy products and systems than to change mind-sets and culture. Therefore, for
long term success, mind-set and culture are important and lasting. These, along
with systems create great experience and value.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Value changes during the use of a product or during
the Customer Journey. Value is perceived during the purchase intent, the
shopping, the actual purchase or buying, the installation or start-up, the use
and even the re-sale. We sometimes call this the waterfall of needs. Needs
change during the Customer Journey.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Creating Customer Value increases customer
satisfaction and the customer experience. (The reverse is also true. A good
customer experience will create value for a Customer). Creating Customer Value
(better benefits versus price) increases loyalty, market share, price, reduces
errors and increases efficiency. Higher market share and better efficiency
leads to higher profits.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 14.4pt; margin-bottom: 12.0pt; mso-outline-level: 2;"><a name="_Toc27649290"><span lang="EN-IN" style="color: #222222; font-family: "Arial",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">How to Create Real Value</span></a><span lang="EN-IN" style="color: #222222; font-family: "Arial",sans-serif; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">You first have to understand the Customer Value
concept, what a Customer perceives as value, and how a customer’s value needs
change over time, and how to get Customer feedback. You must realise that
people buy a product or service that <i>creates the most value over
competing options</i>.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">To create real value, you must recognize what a
Customer perceives as value. You must understand how the Customer views your
competition’s product. What is important to the Customer in his buying
decision? Is price more important or are benefits? Are you good at delivering
what the Customer believes is important? Are you able to deliver more than your
competition on these factors?<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">I understand these are general terms, but they will
help you to create value as you understand your Customer’s need and
perceptions. Let us take some examples on how to create Customer Value:</span></p><p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 6.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">
<!--[endif]--><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">1. Giving a price that makes the Customer believe he
is getting more than he pays for the benefits he gets versus competitive offers<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">2. Reducing the price, or keeping the same price and
giving something extra over competition (this could be service, better
attention, an add on to the product)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">3. Making it convenient for the Customer to buy, and
how he wants to buy and pay.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">4. For B2B getting a proper price justification, not
just a price.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">5. For dealers, the feeling the company will grow and
offer new products for the dealers to sell. These are things that the dealer
may not have an experience of, but needs to Create Value<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">6. The image of the company, including the brand and
the trust in the company or when the Customer appreciates the Values of the
company including sustainability. These create Value for the Customer<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">7. Giving the Customer a product that works as it is
meant to (as perceived by the Customer) and easy for him/her to understand and
use (so that no unnecessary time or energy has to be expended)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">8. Making the Customer feel valued. For example:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 15.0pt; margin-bottom: 3.75pt; margin-left: 51.75pt; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: #222222; font-family: Symbol; font-size: 10.0pt; font-weight: normal; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Smiling at and
being attentive to a Customer creates value for him. Ignoring him/her destroys
value for the Customer<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 15.0pt; margin-bottom: 3.75pt; margin-left: 51.75pt; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: #222222; font-family: Symbol; font-size: 10.0pt; font-weight: normal; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Making it easy for
the Customer to contact the company, and an assurance that an answer will be
given when and how promised (how many times do you have to wait to talk to
someone and how often does s/he promises to call back and how often do you get
a call)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 15.0pt; margin-bottom: 3.75pt; margin-left: 51.75pt; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: #222222; font-family: Symbol; font-size: 10.0pt; font-weight: normal; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Not making you
repeat questions or answers, and keep relating the problem<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 15.0pt; margin-bottom: 3.75pt; margin-left: 51.75pt; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: #222222; font-family: Symbol; font-size: 10.0pt; font-weight: normal; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Receiving a call
from a service person confirming his/her visit (the Customer is not kept
wondering whether the service visit will take place)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 15.0pt; margin-bottom: 3.75pt; margin-left: 51.75pt; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: #222222; font-family: Symbol; font-size: 10.0pt; font-weight: normal; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Not answering
queries destroys Value<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 16.5pt; margin-bottom: 15.0pt;"><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">All readers have real life examples of Value creators
and Value destroyers and can add many more examples. Do add yours. Answer the
following:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 15.0pt; margin-bottom: 3.75pt; margin-left: 51.75pt; mso-list: l1 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: #222222; font-family: Symbol; font-size: 10.0pt; font-weight: normal; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">What could I do to
create Value for my Customer?<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 15.0pt; margin-bottom: 3.75pt; margin-left: 51.75pt; mso-list: l1 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: #222222; font-family: Symbol; font-size: 10.0pt; font-weight: normal; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">What can destroy
Value for my Customer?<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 15.0pt; margin-bottom: 3.75pt; margin-left: 51.75pt; mso-list: l1 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: #222222; font-family: Symbol; font-size: 10.0pt; font-weight: normal; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Does experience
create Value?<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 15.0pt; margin-bottom: 3.75pt; margin-left: 51.75pt; mso-list: l1 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: #222222; font-family: Symbol; font-size: 10.0pt; font-weight: normal; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">List things that
you do not experience that can create Value for you.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 15.0pt; margin-bottom: 3.75pt; margin-left: 51.75pt; mso-list: l1 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: #222222; font-family: Symbol; font-size: 10.0pt; font-weight: normal; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="color: #222222; font-family: "Open Sans",sans-serif; font-size: 11.5pt; font-weight: normal; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Do I look for and
solve customer problems not only one by one but also systemically for all
customers having same problem.</span></p><p></p><p style="font-family: Georgia, serif;">* <i>Gautam Mahajan is the President of the Customer Value Foundation and the Founder Editor of the Journal of Creating Value, <span class="skimlinks-unlinked">jcv.sagepub.com. He may be reached at: </span><a href="http://mahajan@customervaluefoundation.com/" style="color: #cc6600; text-decoration-line: none;">mahajan@customervaluefoundation.com</a> . Article reprinted with permission of the author (</i><span style="font-family: "Open Sans", sans-serif;"><i>218,740
views in Customer Think plus 27,529 downloads in 2021 at Journal of Creating
Value alone). </i></span><i><span lang="EN-IN" style="font-family: "Open Sans", sans-serif;">Contact
</span><span lang="EN-IN"><a href="mailto:Gautam.mahajan@gmail.com"><span style="font-family: "Open Sans", sans-serif;">Gautam.mahajan@gmail.com</span></a></span></i><span lang="EN-IN" style="font-family: "Open Sans", sans-serif;"><i> for comments.</i></span></p><div class="separator" style="clear: both; text-align: center;"><br /></div>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com43tag:blogger.com,1999:blog-5822238157430691095.post-1633745864838714162022-07-06T15:00:00.002-04:002022-07-06T15:11:44.289-04:00How to Stop Customers from Fixating on Price by Ajay K. Sirsi * [40] <p> </p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhXrZds_E5OE57u4bm5v49wtqp2-yh1K7MHw9H_Jquw2VppmPqeD7p58P5IBhAnx3Efb2M5b2DilfguIBoHcASubqPrnyHKNeNrWHQqYJEwJE5komFOGE9t26_T6Msj3aSodyVDAdKndXuOXVEHQWM1Y-5m3zw_0MDQKcRXUa7Cq1eRa1PWXuH1OJ8vmw" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="450" data-original-width="315" height="215" src="https://blogger.googleusercontent.com/img/a/AVvXsEhXrZds_E5OE57u4bm5v49wtqp2-yh1K7MHw9H_Jquw2VppmPqeD7p58P5IBhAnx3Efb2M5b2DilfguIBoHcASubqPrnyHKNeNrWHQqYJEwJE5komFOGE9t26_T6Msj3aSodyVDAdKndXuOXVEHQWM1Y-5m3zw_0MDQKcRXUa7Cq1eRa1PWXuH1OJ8vmw=w178-h215" width="178" /></a></div><p></p><p>In
business-to-business settings, I often hear managers making unsubstantiated statements
such as: </p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjXryWXToqFNtVb60oy_bK2pskcmttOnTaV0w64YeWDNMT369nPE1u_Ba_ckylNlhmOKX2_T1TSK5mQPBHRbtkqUk8Fp64E6Gt_clO8-h1wYnOn_wyJSH_-vYULU8DoWz1hJvFILaiu-dV36I6DnEoL6k2ww4JsxpILIBPw9q1gsHp4f-bzpoYI4KoDZw" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="" data-original-height="648" data-original-width="975" height="162" src="https://blogger.googleusercontent.com/img/a/AVvXsEjXryWXToqFNtVb60oy_bK2pskcmttOnTaV0w64YeWDNMT369nPE1u_Ba_ckylNlhmOKX2_T1TSK5mQPBHRbtkqUk8Fp64E6Gt_clO8-h1wYnOn_wyJSH_-vYULU8DoWz1hJvFILaiu-dV36I6DnEoL6k2ww4JsxpILIBPw9q1gsHp4f-bzpoYI4KoDZw=w96-h162" width="96" /></a></div><p class="MsoNormal"><span style="text-indent: -0.25in;"> "We are
too expensive"</span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> " </span></span></span><span style="mso-ansi-language: EN-US;">Our
customers are <i>so</i> price sensitive"<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-indent: -.25in;"><span style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> "</span></span></span><span style="mso-ansi-language: EN-US;">All that
our customers care about is the price”<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-indent: -.25in;"><span style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> " </span></span></span><span style="mso-ansi-language: EN-US;">We are
pricing ourselves out of the market”<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="mso-list: l1 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> " </span></span></span><span style="mso-ansi-language: EN-US;">Lower-priced
competitors are taking business away from us”</span></p>
<p class="MsoNormal"><br /></p><p class="MsoNormal">These “truths” are
often spoken in tones bordering on hysteria and hopelessness. In this article, I will show you that these
statements are not only false; rather, these myths take on a life of their own
and become part of the organizational narrative, sapping business
prosperity. </p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">I was at a shopping
mall on the weekend and noticed something interesting.<span style="mso-spacerun: yes;"> </span>All the high-end stores (read: expensive) had
velvet ropes at the entrance, stopping customers from entering.<span style="mso-spacerun: yes;"> </span>A hostess stood by the door, putting shoppers'
names on a waiting list to enter the store.<span style="mso-spacerun: yes;">
</span>I overheard one of them say to a shopper that the wait was 45
minutes.<span style="mso-spacerun: yes;"> </span>At each of these high-end
stores, the lines of consumers snaked around the corner, with shoppers waiting
patiently to get in.</span></p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">None of the
middle-of-the-road brands (read: inexpensive) had such an arrangement.<span style="mso-spacerun: yes;"> </span>Nor did they have any line of consumers
waiting to get in.</span></p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">The data show that
consumers are spending money on high-end brands.<span style="mso-spacerun: yes;"> </span>I asked myself what these expensive brands do
to make consumers not care about price?<span style="mso-spacerun: yes;">
</span>The truth is that these consumers are price insensitive because they receive
benefits in exchange for the price they have paid.<span style="mso-spacerun: yes;"> </span>These benefits are tangible (quality product)
and intangible (prestige and status).<span style="mso-spacerun: yes;">
</span>The high-end brands have done an excellent job of <i>creating</i> and <i>communicating</i>
these benefits to their target customers.</span></p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Why can we not do the
same thing in business-to-business markets?<span style="mso-spacerun: yes;"> </span></span></p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">First, let me destroy
a firmly entrenched misconception.<span style="mso-spacerun: yes;"> </span>While
it is popular to proclaim that all that customers care about is price, the
research does not support this claim.<span style="mso-spacerun: yes;"> </span>The
research reveals that in B2B markets, price is never the most critical
factor.<span style="mso-spacerun: yes;"> </span>While price is not unimportant,
customers prioritize other factors such as quality, delivery, reliability,
after-sales service and support, and trusted partnerships.</span></p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Therefore, if a
customer is fixated on price, it should tell you that you have done a poor job
of <i>creating</i> and <i>communicating</i> the value of your offering.<span style="mso-spacerun: yes;"> </span>Either your offering does not have the
benefits desired by the customer, or you have done a poor job of communicating
the value you are providing.<span style="mso-spacerun: yes;"> </span>Let me add
details to both points.</span></p><p class="MsoNormal"><b style="text-align: center;">Creating Customer Value</b></p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">In
business-to-business situations, it is <i>easier</i> than in B2C markets to
develop benefits for the customer.<span style="mso-spacerun: yes;"> </span>In
B2C purchases, some benefits consumers seek might be pretty nebulous.<span style="mso-spacerun: yes;"> </span>These might include notions of status,
prestige, and one-upmanship – factors that typically are not considered by B2B
professionals (I have seen instances where these intangible factors are dominant
even in B2B markets, but I will save that for a future article).</span> </p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Creating customer
benefits is more straightforward in B2B markets because, in this space,
customers only care about two things: reducing their costs and increasing their
revenue.<span style="mso-spacerun: yes;"> </span>Nothing else matters to
them.<span style="mso-spacerun: yes;"> </span>Every customer need and pain point
falls into one or both categories.<span style="mso-spacerun: yes;"> </span>Please
review the table below to get a sense of the point I am making here.</span></p>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody><tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 141.5pt;" valign="top" width="189">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;"><o:p> </o:p></span></p>
</td>
<td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 163.05pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">Impacts Customer’s Cost<o:p></o:p></span></p>
</td>
<td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 162.95pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">Impacts Customer’s Revenue<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 141.5pt;" valign="top" width="189">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Purchase price<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 163.05pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 162.95pt;" valign="top" width="217">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;"><o:p> </o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 141.5pt;" valign="top" width="189">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Availability of
spare parts<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 163.05pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 162.95pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 3;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 141.5pt;" valign="top" width="189">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Shortage of labor<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 163.05pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;"><o:p> </o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 162.95pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 4;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 141.5pt;" valign="top" width="189">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Retaining employees<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 163.05pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 162.95pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 5;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 141.5pt;" valign="top" width="189">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Operational
efficiency<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 163.05pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 162.95pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;"><o:p> </o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 6;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 141.5pt;" valign="top" width="189">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">After-sales support<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 163.05pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 162.95pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 7;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 141.5pt;" valign="top" width="189">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Supply chain issues<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 163.05pt;" valign="top" width="217">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;"><o:p> </o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 162.95pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 8;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 141.5pt;" valign="top" width="189">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Building a brand<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 163.05pt;" valign="top" width="217">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;"><o:p> </o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 162.95pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 9; mso-yfti-lastrow: yes;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 141.5pt;" valign="top" width="189">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Getting more
customers<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 163.05pt;" valign="top" width="217">
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;"><o:p> </o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 162.95pt;" valign="top" width="217">
<p align="center" class="MsoNormal" style="text-align: center;"><span style="mso-ansi-language: EN-US;">X<o:p></o:p></span></p>
</td>
</tr>
</tbody></table>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">I think you get the
point I am making here. </span><b style="text-align: center;">TBO</b><span style="text-align: center;">, <b>not</b> <b>TCO</b></span></p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">To create value for
the B2B customer, go beyond conducting a Total Cost of Ownership (TCO)
analysis.<span style="mso-spacerun: yes;"> </span>Instead, perform a Total
Benefit of Ownership (TBO) analysis.<span style="mso-spacerun: yes;"> </span>A
TCO analysis only considers the customer’s total cost by incorporating the
customer’s costs of acquiring, possessing, using, and disposing of your
products.<span style="mso-spacerun: yes;"> </span>A TBO analysis, on the other
hand, combines both the costs and benefits the customer accrues from your
product.<span style="mso-spacerun: yes;"> </span>Read the related articles
suggested at the end of this article for excellent examples of creating customer
value.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span></p><p class="MsoNormal"><b style="text-align: center;">Communicating</b><span style="text-align: center;"> <b>Customer</b> <b>Value</b></span> </p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Creating customer
value in itself will not make your customers price insensitive.<span style="mso-spacerun: yes;"> </span>The final step is to communicate the value
you have created.<span style="mso-spacerun: yes;"> </span>To do this, you must
focus on quantifying the value you have created and providing tools to your
sales force to communicate the value.<o:p></o:p></span></p>
<p class="MsoNormal"><b style="text-align: center;">Value</b><span style="text-align: center;"> <b>Quantification</b></span></p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">It is not enough to
tell a customer: “Our product is superior.”<span style="mso-spacerun: yes;">
</span>Instead, say to the customer: “Our product lasts X% longer than the
competitor’s; it consumes Y% less energy, and it enables you to do Z% more jobs
in the same amount of time.”<span style="mso-spacerun: yes;"> </span>Of course,
these assertions must be based on unbiased data.<span style="mso-spacerun: yes;"> </span></span> </p>
<p class="MsoNormal"><span style="mso-ansi-language: EN-US;">Finally, provide your
sales force tools to communicate the quantified value propositions quickly and
easily.<span style="mso-spacerun: yes;"> </span>I am surprised how many
organizations I interact with fail on this score, much to the frustration of
the sales team.<span style="mso-spacerun: yes;"> </span>I put the responsibility
of creating such tools directly on the shoulders of the marketing department.</span></p>
<p class="MsoNormal"><b><span style="mso-ansi-language: EN-US;">Bottom</span></b><span style="mso-ansi-language: EN-US;"> <b>line</b>:<span style="mso-spacerun: yes;">
</span>Customers do not fixate on price because it is their nature.<span style="mso-spacerun: yes;"> </span>We make them behave like this by our failure to
shift their focus to the value we are creating for them.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal"><i><b><span lang="EN-CA">* </span></b><span style="background-color: #f6f6f6; color: #575757; font-family: "Open Sans", arial, sans-serif; text-align: center;">Dr. Ajay Sirsi is an award-winning marketing professor and Director of the </span><a class="x-el x-el-a c1-26 c1-27 c1-9w c1-29 c1-1x c1-2a c1-2b c1-7u c1-b c1-9x c1-2h c1-9y c1-9z" href="https://schulich.yorku.ca/faculty-research/centre-for-customer-centricity/" rel="noopener" style="background-color: #f6f6f6; box-sizing: inherit; color: #067b99; cursor: pointer; display: inline; font-family: "Open Sans", arial, sans-serif; overflow-wrap: break-word; text-align: center;" target="_blank">Centre for Customer Centricity</a><span style="background-color: #f6f6f6; color: #575757; font-family: "Open Sans", arial, sans-serif; text-align: center;"> at the Schulich School of Business, York University, Toronto. Visit Dr. Sirsi's website to learn more about his work on customer-centricity at: https://ajaysirsi.com</span></i></p><p class="MsoNormal"><i><span style="background-color: #f6f6f6; color: #575757; font-family: "Open Sans", arial, sans-serif; text-align: center;"><br /></span></i></p><p></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com35tag:blogger.com,1999:blog-5822238157430691095.post-46109126994332724522022-06-24T12:00:00.003-04:002022-07-06T15:13:44.686-04:00How Customer-Obsessed Marketing Strategies Win in the Inflationary, Post-Covid Economy * [39] <p> </p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgM1mDFUbMa4R_W5IeUHNc8smBqpk9wcXMwPa55JIhN0jKXt5zPe5jlmt6a8WaPcSvgSV8wncGQI78WmKqrBMyOwgNsM4c8C5rwkBUT2P9myGt0EZ073GCxPOX1mH-c4qVqIJaEUzG7h-tSTDGPQr_oGr0c39jB6QXvZz4XLwVpE-MfWzjE05Jaa8ckig/s343/Bezos.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="147" data-original-width="343" height="137" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgM1mDFUbMa4R_W5IeUHNc8smBqpk9wcXMwPa55JIhN0jKXt5zPe5jlmt6a8WaPcSvgSV8wncGQI78WmKqrBMyOwgNsM4c8C5rwkBUT2P9myGt0EZ073GCxPOX1mH-c4qVqIJaEUzG7h-tSTDGPQr_oGr0c39jB6QXvZz4XLwVpE-MfWzjE05Jaa8ckig/s320/Bezos.jpg" width="320" /></a></div><br /><p></p><p></p><div style="border-bottom: solid windowtext 1.5pt; border: none; mso-element: para-border-div; padding: 0in 0in 1pt;">
<p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span face="Arial, sans-serif">Consider the current
economic environment in the United States: gasoline $5 a gallon, inflation approaching
9%, huge price escalation in all consumer purchase categories, supply chain
stockouts, the stock market in bear territory, a total lack of political leadership,
and a recession imminent in the U.S. (This is not to say that things are great
worldwide, as well). This market reality
follows two-plus years of Covid lockdowns and restrictions. SMEs as well as
giant corporations are facing unprecedented challenges in finding/keeping good
employees and coping with large cost increases. Companies that survived fought back
Covid and financial challenges by adapting to the new and difficult market
issues and by being customer-obsessed. </span></p><p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span face="Arial, sans-serif" style="text-indent: 0.5in;">According to Forrester Research, a customer-obsessed enterprise “focuses
its strategy, operations, and budget to enhance its knowledge of and engagement
with customers.” They add that customer obsessed organizations are customer-led,
insights-driven, fast, and connected. For further insights on customer
obsession and Covid-19 responses, read articles 2 & 24 from the</span><i style="text-indent: 0.5in;"><span face="Arial, sans-serif"> Customer Value in the Now Economy</span></i><span face="Arial, sans-serif" style="text-indent: 0.5in;"> blog.</span><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;"> </span></p>
<p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span face=""Arial",sans-serif" style="font-size: 9pt;"><a href="https://scv-weinstein.blogspot.com/2019/09/customer-focus-to-customer-obsession.html">Customer
Value in the Now Economy: Customer Focus to Customer Obsession [2]
(scv-weinstein.blogspot.com)</a></span></p>
<p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span face=""Arial",sans-serif" style="font-size: 9pt;"><a href="https://scv-weinstein.blogspot.com/2020/07/rethinking-customer-experience.html">Customer
Value in the Now Economy: Rethinking Customer Experience Management in the
Novel Economy by Brian Solis * [24] (scv-weinstein.blogspot.com)</a></span></p><p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;"><span style="font-size: medium;">Chauvet
Lighting manufactures lights and special effects equipment for venues such as concert
arenas, nightclubs, theatres, and megachurches. Given the Covid-19 pandemic,
like many businesses, Chauvet was forced to pursue new market opportunities
such as drive-thru events such as concerts, comedy shows, and haunted houses.
Other new ventures have included the production of social media content and educational
videos targeting out-of-work lighting designers and repurposing video walls.</span></span></p><p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;"><span style="font-size: medium;">The global pandemic forced
companies to rethink all business and marketing strategies to survive. This is
particularly evident in the services sector which accounts for about 75% of the
Gross Domestic Product in industrialized countries. Airlines, hotels,
restaurants, retailers, small businesses, and universities are some of the
industry sectors that had to quickly pivot to compete effectively in a new
world slowly emerging from lockdowns and characterized by social distancing,
contactless transactions, customers wearing face coverings, and virtual
meetings.</span></span></p><p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;"><span style="font-size: medium;">Companies that were able to make
this transition seamlessly in the Covid economy succeeded because they refused
to fail and are truly obsessed about their business and customer base. They are
willing to do whatever it takes even if it means struggling in the near-term to
prosper over the long-term. Innovative universities offered blended learning
which includes reduced capacities in the classrooms (20-33%), Zoom lectures,
video recordings, and increased online instruction.</span></span></p><p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span style="font-size: medium;"><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;">Restaurants provide an excellent
case in point. Many “mom-and-pop” restaurants are micro-enterprises with twenty
or fewer employees. They already are challenged by high costs (food, rent,
equipment, etc.), labor concerns, local and federal regulations, and direct and
indirect competition. Traditionally, they have one of the highest business
failure rates in normal and good economies. In the Covid era, great food,
superior service, and fair prices are no longer enough in determining winners
from losers. A customer-obsessed mindset calls for adaptive and innovative
business practices. Successful restaurants quickly embraced reduced indoor
seating, outdoor dining options, curbside pick-up, delivery service, and
contact-free credit card payments. In addition, they realized the importance of
retaining existing customers and treating them as a special friend or family
member, emulating Japanese style customer service. Other marketing tactics
include new menu offerings such as family packs and comfort foods. Promotional
strategies have to be more creative and often emphasize social media, price
incentives such as BOGOs (buy one meal, get one meal free), and Covid-friendly
giveaways such as branded face masks or trial-size hand sanitizers. One
enterprising pizzeria even gave their customers a free roll of toilet paper
with every pie ordered!</span><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;"> </span><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;"> </span></span></p>
<p class="MsoNormal" style="border: none; line-height: 200%; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span style="font-family: "Times New Roman",serif;"><span style="font-size: medium;">☑ <u>Questions to think about</u><o:p></o:p></span></span></p>
<p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span style="font-family: "Times New Roman",serif;"><span style="font-size: medium;">1. Is your company customer naïve, customer aware, customer-committed, or
customer-obsessed?<o:p></o:p></span></span></p>
<p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span style="font-family: "Times New Roman",serif;"><span style="font-size: medium;">2.
Explain specific ways that your marketing strategy is customer-obsessed?<o:p></o:p></span></span></p>
<p class="MsoNormal" style="border: none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in;"><span style="font-family: "Times New Roman",serif;"><span style="font-size: medium;">3.
How can your company become even more customer-obsessed to create exceptional
value and compete successfully in the
Now Economy?<o:p></o:p></span></span></p>
</div><br /><p></p><p>*<i> Art Weinstein, Ph.D., is the blogmaster and a Professor of Marketing at Nova Southeastern University. He may be contacted at art@nova.edu</i></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com14tag:blogger.com,1999:blog-5822238157430691095.post-61547040528786722962021-11-19T21:34:00.005-05:002021-11-22T13:37:07.679-05:00Customer-Centric Metrics Make Your Demand Generation Dollars Go Further by Laura Patterson * [38]<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgBbRR-kdCRrskuTu6NQmHAjVtNasyQnzamb5pGeyTIDRlPYSqEC6JAux310Lshf2F4sGy4wddC_SKDNZP7sjcr7wjK9Nr77ku5KV3xK8u1LtnLbVcJ1OKMjS9-xy4qQwW2jGE-9XmdbMbPI6ocAXjcWqWaE2oZuwJmKgTdmZuc1i-0ZTxnJm0bXtX7nA=s302" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="164" data-original-width="302" height="222" src="https://blogger.googleusercontent.com/img/a/AVvXsEgBbRR-kdCRrskuTu6NQmHAjVtNasyQnzamb5pGeyTIDRlPYSqEC6JAux310Lshf2F4sGy4wddC_SKDNZP7sjcr7wjK9Nr77ku5KV3xK8u1LtnLbVcJ1OKMjS9-xy4qQwW2jGE-9XmdbMbPI6ocAXjcWqWaE2oZuwJmKgTdmZuc1i-0ZTxnJm0bXtX7nA=w409-h222" width="409" /></a></div> <br /><p></p><p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">As one of the primary revenue generators for
an organization, Marketing provides three essential roles: finding profitable
customers, keeping profitable customers, and growing the value of these
profitable customers. Customer-centric metrics offer a good starting point for
identifying prospects who most look like your profitable customers, knowing
which customers and products are making the largest contributions to the bottom
line, and for effectively investing your demand generation dollars. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Besides measuring customer satisfaction and loyalty, the impact
on profitability is also an important measurement of any customer-centric
strategy. Many companies have demand generation metrics and even measure
customer satisfaction. Yet, we have found all too often that while companies
say they are customer-centric, they have few customer-related metrics.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Most marketers agree that creating a satisfying customer
experience positively affects a company’s profitability. The customer
experience includes both rational and emotional aspects, as well as how the
customer feels about the brand and the company, and what the customer thinks
every time he or she interacts with the company. Having a positive impact on
the company’s profitability translates into either increased revenue or some
reduction in cost.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in 0in; mso-outline-level: 2;"><br /></p>
<p class="MsoListParagraph" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in 0in 0.5in; mso-add-space: auto; mso-list: l6 level1 lfo7; mso-outline-level: 2; text-indent: -0.25in;"><!--[if !supportLists]--><span style="color: #275093; font-family: Wingdings; font-size: 16pt; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""folks-lightregular",serif" style="color: #275093; font-size: 16pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><b>Establish Profitability Targets - 3 Key Metrics</b></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">If you can calculate these three important customer-centric
marketing measures, you can establish a set of customer profitability targets:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l4 level1 lfo1; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><i><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Customer
acquisition cost</span></i><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">: Determined by
calculating the average cost to acquire a new customer. See more below about
how to use this measure in your demand gen efforts.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l4 level1 lfo1; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">2.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><i><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Customer
retention cost</span></i><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">: Determined by
calculating the cost to retain and serve an existing customer.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l4 level1 lfo1; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">3.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><i><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Average
customer profit</span></i><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">: Determined by
calculating the average value of each customer segment after accounting for
standard costs.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">You can monitor your success by measuring how well you are
staying within your customer profitability targets for each of these metrics.
You don’t need sophisticated tools to measure customer profitability.</span><span style="color: #666666; font-size: 13.5pt;"> </span></p>
<p class="MsoListParagraph" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in 0in 0.5in; mso-add-space: auto; mso-list: l1 level1 lfo6; mso-outline-level: 2; text-indent: -0.25in;"><b><span style="color: #275093; font-family: Wingdings; font-size: 16pt; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;"><br /></span></span></b></p><p class="MsoListParagraph" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in 0in 0.5in; mso-add-space: auto; mso-list: l1 level1 lfo6; mso-outline-level: 2; text-indent: -0.25in;"><b><!--[if !supportLists]--><span style="color: #275093; font-family: Wingdings; font-size: 16pt; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; line-height: normal;"> </span></span></span><!--[endif]--></b><span face=""folks-lightregular",serif" style="color: #275093; font-size: 16pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><b>Add Profitability Targets to Your Dashboard</b><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Customer metrics are one of the <a href="http://fullcircleinsights.com/three-steps-from-a-measurable-marketing-plan-to-an-actionable-dashboard/"><span style="color: blue;">primary categories that should exist on every Marketing
dashboard</span></a>. Once you have calculated these three customer-centric
metrics you can set targets for each and report Marketing’s performance against
the goal and Marketing’s impact on overall customer profitability on the
Marketing dashboard. Overtime you will be able to use this data to determine
which customers offer the best opportunities and focus Marketing
investments on customers who will have the greatest impact on the bottom line.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Now that you understand which customers are profitable, you can
apply this knowledge to determine which customer segments are worthy of your
demand gen dollars.</span></p><p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><br /></span></p>
<p class="MsoListParagraph" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in 0in 0.5in; mso-add-space: auto; mso-list: l1 level1 lfo6; mso-outline-level: 2; text-indent: -0.25in;"><b><!--[if !supportLists]--><span style="color: #275093; font-family: Wingdings; font-size: 16pt; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; line-height: normal;"> </span></span></span></b><span face=""folks-lightregular",serif" style="color: #275093; font-size: 16pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><b>Customer Metrics to Guide Marketing Investment</b><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">When it comes to effectively investing your demand gen dollars,
we recommend focusing on two customer-centric measures: customer
value and cost to acquire. These measures when combined together can help
your organization decide how much of your resources can be profitably
allocated against a particular customer or set of customers.</span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">The two customer-centric metrics we’re suggesting will help you
identify the customers and/or segments to pursue. While it would be wonderful
to be able to invest in every customer, most companies need to be selective.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">We’ve simplified an approach to jump start your thinking
process. You’re going to create a </span><span style="color: #666666; font-size: 13.5pt;">2 X 2 grid with one axis being customer
acquisition cost and the other axis being customer value.</span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Before you do these steps, decide which customers go where on
the grid. Once you generate a list of all your customers, score each
customer and/or customer segments for both customer-centric metrics.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l0 level1 lfo2; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><b><i><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Create
a Customer Value Score</span></i></b><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">:
To create a customer value score you will need information generated from two
pieces of data: purchase frequency and customer revenue.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 1in; margin-top: 15.75pt; mso-list: l0 level2 lfo2; mso-margin-bottom-alt: auto; tab-stops: list 1.0in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="color: #666666; font-family: "Courier New"; font-size: 10pt; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">On the customer list table have a column
for purchase frequency (you may want to use a numeric rating scale for
this measure) and one column for revenue (you may want to create ranges for
revenue and use a numeric rating scale for each range). Score each customer
and/or segment. Customers who have high values on both columns (for example all
customers who have either a 5 and 5 or 4 and 5 or 5 and 4 in the columns) would
be your high value customers.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 1in; margin-top: 15.75pt; mso-list: l0 level2 lfo2; mso-margin-bottom-alt: auto; tab-stops: list 1.0in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="color: #666666; font-family: "Courier New"; font-size: 10pt; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Those customers with a 5/5 would receive an
overall score of 5, those with a 4/5 (frequency and revenue) you may want to
give an overall score of 4.5 and those with a 5/4 (frequency and revenue) an
overall rating of 4.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 1in; margin-top: 15.75pt; mso-list: l0 level2 lfo2; mso-margin-bottom-alt: auto; tab-stops: list 1.0in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="color: #666666; font-family: "Courier New"; font-size: 10pt; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Do the same for each combination, with those
customers with both a 1 in both columns having the lowest score of 1.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">2. <b><i>Calculate Cost to Acquire</i></b>. For your same
list of customers, in another column, calculate your cost to acquire each of
these customers. Customer acquisition cost is the cost associated with
convincing a customer to buy your product or service, including research,
marketing, and advertising costs. It’s an important business and marketing
metric that can be used to gauge marketing’s effectiveness.<o:p></o:p></span></p>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="color: #666666; line-height: 18.75pt; margin-top: 15.75pt; mso-list: l2 level1 lfo3; mso-margin-bottom-alt: auto; tab-stops: list .5in;"><span face=""Arial",sans-serif" style="font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Again, to keep things simple, create acquisition cost
ranges and then assign a 1-5 rating scale for each range (we’d suggest
using 1 as the lowest cost range and 5 for the highest cost range).<o:p></o:p></span></li>
</ul>
<p class="MsoListParagraph" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in 0in 0.5in; mso-add-space: auto; mso-list: l1 level1 lfo6; mso-outline-level: 2; text-indent: -0.25in;"><b><span style="color: #275093; font-family: Wingdings; font-size: 16pt; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;"><br /></span></span></b></p><p class="MsoListParagraph" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in 0in 0.5in; mso-add-space: auto; mso-list: l1 level1 lfo6; mso-outline-level: 2; text-indent: -0.25in;"><b><!--[if !supportLists]--><span style="color: #275093; font-family: Wingdings; font-size: 16pt; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; line-height: normal;"> </span></span></span><!--[endif]--></b><span face=""folks-lightregular",serif" style="color: #275093; font-size: 16pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><b>How to Use Your
Scores</b><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">For each customer or customer segment you should now have
2 rating numbers: a number derived for the customer value score and a
number for customer acquisition.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Divide your 2 X 2 grid into 4 quadrants:<o:p></o:p></span></p>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="color: #666666; line-height: 18.75pt; margin-top: 15.75pt; mso-list: l5 level1 lfo4; mso-margin-bottom-alt: auto; tab-stops: list .5in;"><span face=""Arial",sans-serif" style="font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">High Value/High Cost<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #666666; line-height: 18.75pt; margin-top: 15.75pt; mso-list: l5 level1 lfo4; mso-margin-bottom-alt: auto; tab-stops: list .5in;"><span face=""Arial",sans-serif" style="font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">High Value/Low Cost<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #666666; line-height: 18.75pt; margin-top: 15.75pt; mso-list: l5 level1 lfo4; mso-margin-bottom-alt: auto; tab-stops: list .5in;"><span face=""Arial",sans-serif" style="font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Low Value/High Cost<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #666666; line-height: 18.75pt; margin-top: 15.75pt; mso-list: l5 level1 lfo4; mso-margin-bottom-alt: auto; tab-stops: list .5in;"><span face=""Arial",sans-serif" style="font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Low Value/Low Cost.</span></li>
</ul><div><span style="color: #666666;"><span style="font-size: 18px;"><br /></span></span></div><div><span style="color: #666666; font-size: 18px;">Plot each customer into the appropriate quadrant.</span></div><div><span style="color: #666666;"><span style="font-size: 18px;"><br /></span></span></div><div><span face="Arial, sans-serif" style="color: #666666;"><span style="font-size: 18px;"><a class="fancybox image" href="https://visionedgemarketing.com/wp-content/uploads/2010/01/customer-2x2.png" rel="attachment wp-att-36104" style="font-family: Arial, Helvetica, sans-serif; font-size: medium; text-align: center; text-decoration-line: none;"><img alt="Score Customers for Each Metric" aria-describedby="caption-attachment-36104" class="size-medium wp-image-36104 lazyloaded" data-attachment-id="36104" data-comments-opened="1" data-image-caption="<p>Score Customers for Each Metric</p>
" data-image-description="" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="customer 2×2" data-large-file="https://visionedgemarketing.com/wp-content/uploads/2010/01/customer-2x2-1024x590.png" data-ll-status="loaded" data-medium-file="https://visionedgemarketing.com/wp-content/uploads/2010/01/customer-2x2-300x173.png" data-orig-file="https://visionedgemarketing.com/wp-content/uploads/2010/01/customer-2x2.png" data-orig-size="1500,864" data-permalink="https://visionedgemarketing.com/customer-centric-metrics-guide-demand-generation-investments/customer-2x2/" height="215" loading="lazy" sizes="(max-width: 300px) 100vw, 300px" src="https://visionedgemarketing.com/wp-content/uploads/2010/01/customer-2x2-300x173.png" srcset="https://visionedgemarketing.com/wp-content/uploads/2010/01/customer-2x2-300x173.png 300w, https://visionedgemarketing.com/wp-content/uploads/2010/01/customer-2x2-505x291.png 505w, https://visionedgemarketing.com/wp-content/uploads/2010/01/customer-2x2-768x442.png 768w, https://visionedgemarketing.com/wp-content/uploads/2010/01/customer-2x2-1024x590.png 1024w, https://visionedgemarketing.com/wp-content/uploads/2010/01/customer-2x2.png 1500w" style="border: 0px none; margin: 0px; padding: 0px;" width="461" /></a></span></span></div><div><span face="Arial, sans-serif" style="color: #666666;"><span style="font-size: 18px;"><br /></span></span></div><div><br /></div><p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt; text-align: left;"><span style="background-color: #f3f3f3; text-align: center;"><span style="color: #2b00fe; font-size: large;">></span><span style="color: #0b5394; font-size: x-large;"> </span><span style="color: #0b5394; font-size: large;">Score Customers for
Each Metric</span></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Those customers and prospects similar to them in the High
Value/Low Cost quadrant are where you should spend the money.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Obviously very little, if any resources, should be allocated to
customers and prospects in the Low Value/High Cost. You may have to have some
internal conversations about the other two quadrants and applying the <a href="https://visionedgemarketing.com/using-customer-lifetime-value-to-improve-marketing-investment-decisions/"><span style="color: blue;">customer lifetime value calculation</span></a> to these
customers can often help guide decisions related to customers in these two
groups. While it may take some time, this is a relatively easy and
affordable first step.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Unless you’re among the few marketers who have all the time and
money in the world to burn, we hope employing this analysis helps you decide
how to eke out the most value from your limited and precious
resources. You’ve probably already come to the conclusion that the best place
to spend it is on those customers who are most likely to buy. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Got the customer-centric metrics bug and want to know what else
you should be measuring? Here the top eight measures often associated with
companies truly committed to being customer-centric:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l3 level1 lfo5; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Customer retention<o:p></o:p></span></p>
<p class="MsoListParagraph" style="line-height: 18.75pt; margin-top: 15.75pt; mso-add-space: auto; mso-list: l3 level1 lfo5; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">2.<span style="font: 7pt "Times New Roman";"> </span></span></span><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">2. Buying frequency<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l3 level1 lfo5; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">3.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Contact frequency<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l3 level1 lfo5; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">4.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Churn rate<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l3 level1 lfo5; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">5.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Average revenue per
user<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l3 level1 lfo5; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">6.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Customer lifetime value<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l3 level1 lfo5; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">7.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Share of customer’s
wallet<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-left: 0.5in; margin-top: 15.75pt; mso-list: l3 level1 lfo5; mso-margin-bottom-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">8.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">A customer’s EBITDA<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Conduct a quick audit to see whether your company tracks any of
these customer-centric measures. If it doesn’t and being customer-centric is
important to your organization, then <a href="https://visionedgemarketing.com/contact/"><span style="color: blue;">it may
be time to revisit</span></a> the metrics you are measuring.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><span face=""Arial",sans-serif" style="color: #666666; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> <o:p></o:p></span><span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #333333; font-size: 16px;">* This post was reprinted with permission from VisionEdge Marketing, Inc.</span><b style="background-color: white; color: #333333; font-family: lato, sans-serif; font-size: 16px;"> </b></p><p class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.75pt; margin: 15.75pt 0in 7.5pt;"><b style="background-color: white; color: #333333; font-family: lato, sans-serif; font-size: 16px;"><i>Laura Patterson</i></b><i><span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #333333; font-size: 16px;"> is a marketing practitioner, consultant, writer, and speaker. Contact her at laurap@visionedgemarketing.com. Also, check out Laura's article "The Value of I</span><span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #333333; font-size: 16px;">nvesting in Customer Value Management" [22]. </span></i><a href="https://www.blogger.com/blog/post/edit/preview/5822238157430691095/9130769090072064563">Post Editor: Preview (blogger.com)</a></p>
<p class="MsoNormal"><o:p><i> </i></o:p></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com1tag:blogger.com,1999:blog-5822238157430691095.post-37143535609691594282021-09-29T20:26:00.002-04:002023-05-24T10:17:13.602-04:00Service Incidents and Failures Can Actually Present Opportunities for Firms by John Gironda * [37] <p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpj8L1f9tkrKpHb5k5x4g_LFmHfT3WlvJFNYyJuEkC6bGjBEKPKUnpiXJXkOXB_49O-fRHgpOZEkbNOrtey2fND_1QneaoVsB9PRzQY9Jlt0i7cDXZQGoyf-Z9KfBEGUT1yMtISNN_UYN8/s2048/clay-banks-Ox6SW103KtM-unsplash.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1367" data-original-width="2048" height="214" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpj8L1f9tkrKpHb5k5x4g_LFmHfT3WlvJFNYyJuEkC6bGjBEKPKUnpiXJXkOXB_49O-fRHgpOZEkbNOrtey2fND_1QneaoVsB9PRzQY9Jlt0i7cDXZQGoyf-Z9KfBEGUT1yMtISNN_UYN8/s320/clay-banks-Ox6SW103KtM-unsplash.jpg" width="320" /></a></div><span> </span><span> </span><span> </span><span> </span><span> </span><span> </span><span> </span><span> </span><span> </span><span> </span><span> </span> Photo Credit: Clay Banks<div><p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0.05in;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">While most firms should
strive to provide their customers with the best experience possible at all
times, service incidents and failures will occur from time to time. Although
these issues aren’t ideal, they do present companies with opportunities as
well. Obviously, companies should not make it a habit of experiencing ongoing
service incidents and failures with customers. However, in the hopefully rare times
in which they do occur, if companies are able to rectify the situation, many
times this ends up with customers actually being happier than they would have
if things went off completely without a hitch to begin with.</span></p><p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0.05in;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">This might not sound
quite right at first, but if we think about it for a moment, it should make
more sense. If everything goes very smoothly during a service encounter, it should
lead to happy and satisfied customers, which is a very good thing. Nevertheless,
when there are incidents of service failures or dissatisfied customers, and
there will inevitably be at some point, this gives firms the opportunity to
show customers that they care by doing what it takes to get things fixed and possibly
go above and beyond in order to make things right. By doing this, companies can
turn dissatisfied customers to not only satisfied customers, but also delighted
ones at that.</span></p><p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0.05in;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">This is because
consumers tend to remember any hiccups (i.e., service incidents or failures) that
occur during their interactions with companies. These hiccups can go a
multitude of ways. One way is that a company does not rectify the situation and
people leave as unhappy dissatisfied customers, or now ex-customers in many
cases. When this happens, people tend to keep this negative feeling with them,
recalling it and thinking twice the next time they consider doing business with
a company. In addition, consumers may tell friends, family, and other
individuals online or in-person about their poor experience, leading to
negative word-of-mouth for the company. A second way that a service incident
can go, is that the firm does what is necessary to make things right with the
customer. In this case, customers will remember that the incident happened, but
will also carry positive feelings with them, recalling that the company cared
about their experience and satisfaction, and made sure it did what it could to
remedy the situation.</span></p><p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0.05in;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">Good companies
understand this, which is related to a concept in marketing called customer
lifetime value. That is, the entire stream of purchases that a customer will
make with a company over the course of their lifetime. By keeping customers
happy and doing what it takes to correct incidents when they occur, companies stand
a much better chance of keeping loyal repeat customers for longer periods of
time.</span></p><p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0.05in;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">In some cases, this may
mean taking a short-term loss on a particular transaction with a customer to
keep them happy and retain them for years to come. This is because in order to
fix a service failure or incident and retain a customer, it may be necessary
for companies to compensate customers for the issue that occurred. Perhaps the
customer was inconvenienced by a long wait time for their order, which can
happen at a variety of businesses, from restaurants to online retailers.
Additionally, perhaps there was an inability to fully accommodate a customer’s
request, or the customer simply did not like a particular product and would
like a refund.</span></p><p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0.05in;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">In terms of customer
compensation for inconvenience caused by service incidents, a little bit of
compensation can go a very long way in terms of being meaningful to customers.
These can be things as simple as taking something off of a customer’s bill,
giving the customer an additional item for free, a discount voucher for a
future purchase, or additional points towards the company’s loyalty program. Clearly,
the type of compensation needs to be commensurate with the type of incident that
occurred. However, as the old adage goes, many times it’s the thought that
counts more than anything. Additionally, another important factor in the
exchange is speed. Incidents should be corrected as quickly as possible, which
also means that companies should empower employees and give them some autonomy
and leeway to make things right promptly without having to wait on approval for
every little thing, within reason of course.</span></p><p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0in;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">What are your thoughts on this? Do you agree
that service incidents can actually present an opportunity for firms? Can you
think of any positive examples of times when an incident occurred and a company
went out of its way to remedy the situation for you? What impact did that have
on you and your future relationship with that company? <i>Please share your
thoughts in the comments section below</i>.</span><span style="color: #444444; font-family: "Times New Roman",serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p><p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0.05in; text-align: justify;">
</p><p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0.05in;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;"> </span></p>
<p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0.05in;"><strong><span style="color: black; font-size: 12pt;">John Gironda, Ph.D.</span></strong><span style="color: black; font-family: "Times New Roman",serif; font-size: 12pt;">, is
an Associate Professor of Marketing at Nova Southeastern University, Fort Lauderdale, Florida. His teaching and research interests include digital and social
media marketing, consumer behavior, marketing strategy, consumer privacy
issues, and integrated marketing communications. He can be reached at: jgironda@nova.edu</span></p><p class="MsoNormal" style="background: white; line-height: 12.2pt; margin-bottom: 0.05in;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 12pt;"><br /></span></p>
<p class="MsoNormal"><o:p> </o:p></p><br /><p></p></div>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com11tag:blogger.com,1999:blog-5822238157430691095.post-73328354517255359162021-09-28T21:33:00.003-04:002022-06-24T12:00:56.318-04:00Customer Delight - That Sounds About Right or Not Quite? * [36] <div style="text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKlZigJxj5r5-5QhYHdmUSTZIsMl3tYimvGEfrjQQpmZlG1ug9eE62twAH2aqJVJRZ26R2Usyozv3Dog4rx4Iwklu2Uh52vpejum68Y2fO2XuAsu-eBN67g9JB-pjV7uhwLBW0XumJ7iGJ/s800/kotler+quote+delight+your+customers-1.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="800" data-original-width="800" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKlZigJxj5r5-5QhYHdmUSTZIsMl3tYimvGEfrjQQpmZlG1ug9eE62twAH2aqJVJRZ26R2Usyozv3Dog4rx4Iwklu2Uh52vpejum68Y2fO2XuAsu-eBN67g9JB-pjV7uhwLBW0XumJ7iGJ/s320/kotler+quote+delight+your+customers-1.png" width="320" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div>
<p class="MsoNormal" style="line-height: normal;"><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">There are two schools of
thought on customer delight -- it is an extreme form of customer satisfaction (very
satisfied) or it is a distinct marketing construct. While the latter position has gained traction recently, this debate is far from settled.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><b style="text-align: center;"><span style="font-size: 12pt;">Highly Satisfied or Customer Delight?</span></b></p><p class="MsoNormal" style="line-height: normal;"><i><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">> Position A - Highly
Satisfied</span></i></p><p class="MsoNormal" style="line-height: normal;"><span style="font-size: 12pt; text-indent: 0.5in;">Customer
satisfaction is frequently measured on a five-point Likert scale. While there
are many variants of the approach, it is typically measured as follows: 1)
highly dissatisfied, 2) dissatisfied, 3) neither satisfied or dissatisfied, 4)
satisfied, and 5) highly satisfied. The “5” option may be viewed as a proxy for
customer delight. In such cases, customers tend to be highly loyal and not
prone to defection. The “4” score implies satisfaction but since it is not
strong, customers generally are not very loyal and may defect. Customer
satisfaction measures of 1-3 imply major or minor levels of dissatisfaction. In
such cases, customers are likely to seek alternative vendors. </span></p><p class="MsoNormal" style="line-height: normal;"><span style="font-size: 12pt; text-indent: 0.5in;">This
is analogous to the single-item, 11-point Net Promoter Score scale where respondents
that give the organization a 9 or 10 are highly satisfied (promoters); 7 or 8
are somewhat satisfied (passives); and 0-6 are dissatisfied (detractors). Bain
& Company has found that long-term value creators such as American
Express, Publix Super Markets, Ritz-Carlton, and USAA have NPS scores of twice
that of the average company and leaders grow at twice the rate of competitors. The
customer satisfaction metric is so important that Lexus uses this basic scale
in assessing service quality for their vehicles. In fact, one of their research
instruments advised customers to immediately call the service manager if they
were not totally satisfied with the service experience (i.e., unable to respond
with a “5”). </span></p>
<p class="MsoNormal" style="line-height: normal;"><i><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">> Position B - Customer
Delight</span></i><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"> <i><o:p></o:p></i></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; mso-pagination: none; tab-stops: 0in .5in 1.0in 1.5in 2.0in 2.5in 184.5pt 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in; text-autospace: none;"><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;">Superior customer value
means to continually create business experiences that exceed customer
expectations. Innovative companies such as Tesla are not content with customer
satisfaction; they strive to <i>amaze,
astound, delight</i> or <i>wow</i> them (at
least some of the time). Tesla’s $35,000 Model 3 electric vehicles received
more than 400,000 pre-orders more than a year before it went to market. Other
exciting business initiatives by Tesla include its multi-billion dollar
Gigafactory (a battery production facility) and futuristic Hyperloop
transportation system. </span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; mso-pagination: none; tab-stops: 0in .5in 1.0in 1.5in 2.0in 2.5in 184.5pt 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in; text-autospace: none;"><span style="font-size: 12pt;">While
the pursuit of exceeding customer expectations is quite desirable, reality
often dictates that customers are most satisfied when firms avoid disappointing
them rather than trying too hard to delight them. </span><span style="font-size: 12pt;">Therefore, organizations must
focus on the business fundamentals and have a flawless execution of operational
basics. In rare instances of service failure, service recovery must be a
priority. In most cases, customers can not truly articulate how to improve
service experiences or what they are seeking to be delighted. </span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; mso-pagination: none; tab-stops: 0in .5in 1.0in 1.5in 2.0in 2.5in 184.5pt 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in; text-autospace: none;"><span style="font-size: 12pt;">In contrast, customers can readily identify attributes that are
dissatisfiers/hygiene factors (must-haves) and satisfiers (nice-to-have
attributes). </span><span style="font-size: 12pt;">The hygiene factors constitute the
minimally acceptable level of service attributes that customers would expect to
be present in the service offering.</span><span style="font-size: 12pt;"> </span><span style="font-size: 12pt;">For
example, a mid-priced hotel catering to business travelers would be expected to
offer such services as express check-out, fitness room, high-speed internet
connections, a restaurant, and a lounge. Failure to offer these services or to
perform or deliver them poorly will likely lead to dissatisfaction. In
contrast, simply offering these services and performing them adequately will
not delight the customer --the customer expects them as part of doing
business.</span><span style="font-size: 12pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; mso-pagination: none; tab-stops: 0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in; text-autospace: none;"><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">Truly
delighting customers requires service providers to carefully consider satisfiers. Satisfiers are those service attributes that
both differentiate the service firm from its competitors, while at the same
time exceeding customer expectations in one or more areas of service by
delivering above what is expected. Hygiene factors need to be delivered at an
acceptable level before satisfiers become important. Satisfiers have the
potential to create high customer satisfaction levels once expectations on
hygiene factors have been met. Firms
that would offer satisfiers need to consider the value-added services that
would both delight and surprise the customer. It should be emphasized that
service quality is more than simply meeting specifications and that the
customer's point of view is what matters (i.e., is the customer delighted?)
Hence, customer satisfaction is what
the customer says it is.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; mso-pagination: none; tab-stops: 0in .5in 1.0in 1.5in 2.0in 2.5in 184.5pt 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in; text-autospace: none;"><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">Consider
some of the following examples in the effective use of satisfiers. Before a
guest ever sets foot in Le Parker Meridian Hotel in New York they can use the
hotel’s QuickTime Virtual Reality (QTVR) enabling potential guests to
"walk" through the lobby and rooms.
In addition to virtual reality tours, the site offers in depth, timely
information about room rates, events and points of interest for the business
and pleasure traveler. The hotel also welcomes repeat guests with amenity
baskets accompanied by handwritten notes. </span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; mso-pagination: none; tab-stops: 0in .5in 1.0in 1.5in 2.0in 2.5in 184.5pt 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in; text-autospace: none;"><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;">Zappos, a billion dollar shoe, handbag, and clothing
company owned by Amazon, aims </span><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">to
deliver “Happiness in a Box.” Their three-part formula is to: 1) <i>meet expectations</i> by delivering the
right items, 2) <i>meet desires</i> through
free shipping, free return shipping when necessary, and a 365 day return policy
and 3) often <i>delight customers</i> via
surprise upgrades to overnight shipping.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; mso-pagination: none; tab-stops: 0in .5in 1.0in 1.5in 2.0in 2.5in 184.5pt 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in; text-autospace: none;"><span style="font-size: medium;">And conversely, bad-mouthing by
dissatisfied customers can be not only harmful, but the very death knell to a
company. Consider a case in point: one unhappy buyer at a computer superstore
determined that this company lost $50,000 of his business (direct lifetime
value) and another $350,000 (indirect lifetime value) due to negative
word-of-mouth comments to his family and friends! Today, it’s very likely that
dissatisfied consumers will post a bad review on Yelp, Facebook or Google.
Negative comments via social media (word-of-mouse) can easily go viral leading
to the need for damage control, a potential significant loss of business or
even consumer boycotts.</span><o:p></o:p></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; mso-pagination: none; tab-stops: 0in .5in 1.0in 1.5in 2.0in 2.5in 184.5pt 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in; text-autospace: none;"><span style="font-size: medium;"><b style="color: rgba(0, 0, 0, 0.9); font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif;"><span style="border: 1pt none; font-family: "times new roman" , serif; padding: 0in;">Art Weinstein, Ph.D.</span></b><span color="rgba(0, 0, 0, 0.9)" style="font-family: "times new roman" , serif;">, is a</span><span color="rgba(0, 0, 0, 0.9)" style="border: 1pt none; font-family: "georgia" , serif; padding: 0in;"> Professor of Marketing </span><span color="rgba(0, 0, 0, 0.9)" style="font-family: "times new roman" , serif;">at Nova Southeastern University. His research interests are customer value, market segmentation and entrepreneurial marketing strategies. He may be reached at art@nova.edu</span><span color="rgba(0, 0, 0, 0.9)" style="font-family: "times new roman" , serif;"> </span></span></p>
<p class="MsoNormal" style="line-height: normal;"><o:p> </o:p></p><p></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com5tag:blogger.com,1999:blog-5822238157430691095.post-67053695008368332022021-09-16T15:49:00.001-04:002021-09-29T11:52:18.769-04:00Know Your Customer to Bulletproof Your Marketing Strategy by Fernanda Almada * [35]<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgkB0UJRzSjTTt7vFQGVmHyrRppjKceqOHF1qa6LzQ9Zo8Oq4NsM55uTQhNe2-0AaLBQtrcmRo7i0Zg5dMy-s2ThDrFcj0sDLCmGbM-U7mQ9UeztCcAg_IB_2nP7fxWVdqHbq_GzPA48qj5/s500/target_market.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="300" data-original-width="500" height="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgkB0UJRzSjTTt7vFQGVmHyrRppjKceqOHF1qa6LzQ9Zo8Oq4NsM55uTQhNe2-0AaLBQtrcmRo7i0Zg5dMy-s2ThDrFcj0sDLCmGbM-U7mQ9UeztCcAg_IB_2nP7fxWVdqHbq_GzPA48qj5/s320/target_market.png" width="320" /></a></div><br />Working in today’s digital marketing landscape has become increasingly
challenging. The markets are crowded, and changes are happening in an extremely
fast pace. As marketers, we know that it is necessary to find a way to learn
and adapt quickly. Otherwise, we will fail <span style="background: white; color: #4d5156; font-family: Roboto; font-size: 10.5pt; line-height: 107%;">—</span> as
professionals or as businesses. However, there is one key component of any
marketing strategy that is bulletproof: your customer.<p></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">It may seem obvious, but the truth is that the current times
require a much higher-level understanding of who your customers are, and what are
their needs, wants, and desires. And this goes way beyond demographics. It is
essential to dive deep into their biggest dreams and fears so you can develop
an effective marketing strategy that speaks to these very specific pain points
and transformation goals. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">When you have this level of comprehension around your customers,
you will be able to craft the best offers that will turn them into raving fans
and will make them stick around for much longer. That is when the magic
happens: highly satisfied customers who are willing to buy repeatedly from you
and advocate for your brand and business. This is when you will see an increase
in your customer lifetime value and will be able to accomplish continued
revenue growth. <o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Targeting Strategy<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Before you start working on the real understanding of your
customers, it is essential to take a step back and define who these dream
customers are, which target markets you should go after, and assess this
decision before moving forward. Some of the key factors to consider are the size
of the segment (is it large enough to be profitable?), the competition it faces
(how strong are your competitors?), and its alignment with your business’
overall goals (is targeting this segment compatible with your long-term goals?).
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">When you analyze different marketing campaigns from companies such
as LinkedIn, Hulu, and Clorox, it is clear that they target different market segments
and may have various lines of businesses to cater to them. LinkedIn, for
instance, the world’s largest professional network, runs ads directed both at
job seekers and advertisers. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Hulu also targets advertisers in addition to subscribers. And if
you are wondering if Clorox only targets women in their marketing campaigns, that
is not the case. Headlines such as “Cleans & kills germs: Helps build
business” show that their strategy and creativity go further than traditional
segments and that they also cater to business owners. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Booking.com is another great example of company with unique ad
campaigns running simultaneously but targeting distinct audiences. Besides
travelers (“Book the perfect stay with peace of mind”), they also promote their
services to hotel professionals (“Attract summer bookings”) and business
professionals (“All your company’s travel in one place”).<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Standing Out from Competitors<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The origin of these powerful headlines is in the company’s value
proposition. Many marketers underestimate the importance of crafting a well-written
value proposition, skipping this important step that dictates the entire
marketing strategy. The combination of what your customer wants and what you
are able to offer like no other business is what will help you create
outstanding marketing strategies to propel your growth. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Strong taglines such as Amazon’s “Spend less. Smile more.” or
Gillette’s “The best a man can get.” translate these companies’ value
proposition in an attractive way and reinforce the reason why their dream
customers should buy from them, and not from the competition. <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The same happens with the creation of marketing campaigns. The
high-level understanding of your customer will come into play at the execution
phase as well, with the development of variations of ad creative and copy that
translate both the company’s positioning and the fulfilment of the client’s
desires. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">By highlighting benefits (instead of features), showing the
removal of problems, elevating power-status, or providing sensory
gratification, marketers create opportunities to continuously drive customers
that are interested in each offer. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">As Philip Kotler says, “Good marketing is no accident. It is both
an art and a science”. And it does take a lot of testing and optimizing to
create winning strategies. And if something doesn’t seem right, it is probably
time to revisit the initial definition of what your company is and who your
dream clients really are before going back to the drawing board of your ad campaigns.
<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b>Sources:</b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">- <span style="font-size: x-small;">Consumer
Behavior, Leon Schiffman & Joe Wisenblit, 12<sup>th</sup> edition, 2019.<o:p></o:p></span></p>
<p class="Default"><span color="windowtext" face="Calibri, sans-serif"><span style="font-size: x-small;">- A Framework for Marketing Management, Philip
Kotler & Kevin Lane Keller, 6<sup>th</sup> edition, 2016.<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="font-size: x-small;">- Facebook
Ad Library</span></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">* Fernanda Almada is a digital marketing strategist with 15 years of
professional experience. She currently works as a marketing project manager at
a digital marketing agency in South Florida in addition to managing her own
online business. Fernanda has an MBA with a concentration in Marketing from
Nova Southeastern University and can be found on Instagram @fernanda.almada.<o:p></o:p></span></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com10tag:blogger.com,1999:blog-5822238157430691095.post-70674611617311731372021-08-27T12:04:00.003-04:002021-09-29T11:51:46.704-04:00Can Non-Owner Stakeholders Select CEOs to Create Value? by Gautam Mahajan * [34]<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTbH8I1YI2ye_tbHlRLVs1byNMiFM16iS9Fdtbx7k17OJfX5T39vEEKCdp-zvDuPoyGPqtuk79qPvuLTMClNOFFCftIunqXrdEELiLyWNjWmGm3gp-84_jo9ox6TLXsbYIdw4ReRNA9vQ1/s232/TOTAL-CUSTOMER-VALUE-MANAGEMENT.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="232" data-original-width="150" height="284" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTbH8I1YI2ye_tbHlRLVs1byNMiFM16iS9Fdtbx7k17OJfX5T39vEEKCdp-zvDuPoyGPqtuk79qPvuLTMClNOFFCftIunqXrdEELiLyWNjWmGm3gp-84_jo9ox6TLXsbYIdw4ReRNA9vQ1/w192-h284/TOTAL-CUSTOMER-VALUE-MANAGEMENT.jpg" width="192" /></a></div><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">I was in a conversation with an executive who had been head of Business Excellence and Chief Culture Officer and Chief Sustainability Officer in a large company. He reminded me of the importance of sustainability for our happiness and good health, and for creating a planet that could continue to sustain human beings. He said that he did not think that any CEO would drive his business strategy through sustainability. After all they are appointed by shareholders and their eye is on quarterly profits and profits. So, what the Business Roundtable is saying and what Davos has stated that the purpose of a company is to create value for all stakeholders is a far cry from ground reality. He also suggested that maybe a non-shareholder selected CEO could work better at making the stakeholder role more cogent.</p><p style="font-family: Georgia, serif;">It is the norm that the CEO is chosen by the shareholders and remains at their pleasure.</p><p style="font-family: Georgia, serif;">Should this really be the case?</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">If both Davos and the Business Roundtable have suggested that the purpose of a company is to engage all its stakeholders in shared and sustained value creation. In creating such value, a company serves not only its shareholders, but all its stakeholders – employees, customers, suppliers, local communities and society at large. The best way to understand and harmonize the divergent interests of all stakeholders is through a shared commitment to policies and decisions that strengthen the long-term prosperity of a company.</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">So, what is the role of sustainability leaders or customer leaders? Customer leaders have typically belonged to marketing and do become CEOs, but do sustainability leaders or community development leaders in a company or outside become CEOs. Why? And why not?</p><p style="font-family: Georgia, serif;">For that matter, few HR people become CEOs. Why?</p><p style="font-family: Georgia, serif;">Probably because they are functional in style and thinking and do not really create value.</p><p style="font-family: Georgia, serif;">Employees, of course become CEOs, but those who do from within the company, do they represent employees?</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">I think it is going to take time and serious thinking before any of the other stakeholders can become CEOs or select CEOs. This will require a serious effort to have a proper Purpose of the company.</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">Bold thinking purpose to improve the quality of life and happiness can bring great dividends. These improve the values of our company. We know from past work with power companies that over 60% of doing business with a company was their image and values. Values, we learnt from studies such as with Tata Power create value.</p><p style="font-family: Georgia, serif;">Since leaders can also be shareholders, should they look at creating happiness?</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">93% of 2000 leaders surveyed could not state why their company is in business. This means that many purpose statements do not have a proper sense of purpose. Are yours one of them?</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">As a leader you must have a purpose. What is a meaningful purpose you can express in terms of values, meaning ethics and morals etc. and in terms of what you want to achieve in life for yourself and your family? What will inspire those around you. Is it clean air, a happier environment, or a product with lowest costs and highest quality? The last is practical but it is your job to do so. Value Creation is going beyond your job and should be your purpose.</p><p style="font-family: Georgia, serif;">Do you know what your customers value, what your stakeholders value? How does your purpose reflect some of these aspirations and goals?</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">How can you inspire your people and family to create value and for whom and how? Granted it goes beyond the purpose but it can help you formulate and articulate purpose better.</p><p style="font-family: Georgia, serif;">At the very least your purpose should go beyond making money and increasing shareholder wealth.</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">This purpose will help you revise your vision and then your mission. Working on a strategy for each of your stakeholders will get you to a great business strategy, and re-inforce your purpose.</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">The purpose to create value for stakeholders makes you ally with employees, customers, society, environment and partners in learning from them and co-creating value with them. They become part of your succeeding.</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">Many of your employees prefer meaning to money. Should you too? Purpose improves employee participation and buy in. It creates value for employees by improving their well-being.</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">Helping employees with creating value for themselves and having a purpose engenders thinking about themselves and deciding what matters in life. It builds on the self, a sense of freedom and thinking about others.</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">Perhaps the selection process can be from a team consisting of all stakeholders, community leaders, suppliers/partners, employees, outside customers and environmentalists. This may help a polluting company change, or a company do more for the community and imbibe values in a better way, or become more customer and employee focused. Today it may not seem practical but it could become a norm in the future.</p><p class="has-text-align-justify" style="font-family: Georgia, serif; text-align: justify;">This selection process will lead to greater stakeholder participation in decision making and in choosing CEOs. This will make stakeholder strategy a reality, and change the business face around us from only making money to thinking of the future and creating happiness and a better place to live. This is Creating Value at its best.</p><p style="font-family: Georgia, serif;">* Gautam Mahajan is the President of the Customer Value Foundation and the Founder Editor of the Journal of Creating Value, <span class="skimlinks-unlinked">jcv.sagepub.com. He may be reached at: </span><a href="http://mahajan@customervaluefoundation.com/" style="color: #cc6600; text-decoration-line: none;">mahajan@customervaluefoundation.com</a> . Article reprinted with permission of the author.</p><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p style="font-family: Georgia, serif;"><br /></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com3tag:blogger.com,1999:blog-5822238157430691095.post-8507944893263648202021-08-26T08:46:00.003-04:002021-09-29T11:51:25.698-04:00The Joint Value Proposition as a Differentiator by Huba Rostonics * [33]<p><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjaUODCYWqkAvjDrnmkJAJw4m1ToG46GbSUq5Ms0Q3ctA7hVdvFY_-oeteNoMlP4Kg8j4sIsdT2QCpeID59ogzRSeVDaJcnJIjmG2OFRODneIdi5VbkM4kK3LY3Wx5dCnnc_CP_mlLKVf1Y/s1717/SMALL-pexels-suzy-hazelwood-1325467.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1717" height="201" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjaUODCYWqkAvjDrnmkJAJw4m1ToG46GbSUq5Ms0Q3ctA7hVdvFY_-oeteNoMlP4Kg8j4sIsdT2QCpeID59ogzRSeVDaJcnJIjmG2OFRODneIdi5VbkM4kK3LY3Wx5dCnnc_CP_mlLKVf1Y/s320/SMALL-pexels-suzy-hazelwood-1325467.png" width="320" /></a></div><div><br /></div> Photo by Suzy Hazelwood from Pexels<div><br /><p></p><div style="box-sizing: border-box; margin: 0px; padding: 0px;">In today's complex business environment, there is almost no product or service that is made, or delivered, end-to-end by one single company. There is almost always an intricate network of supply chain elements and partnerships involved. With the exception of the few of us who are deeply wading in the waters of partner ecosystems, these complexities tend to be ignored.</div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br style="box-sizing: border-box;" /></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;">Not even in some partner-friendly company settings is everyone adequately acquainted with their own delivery models. More than a few times, I have found myself briefing an executive about the differences between their own Value Added Resellers and Agents.</div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br style="box-sizing: border-box;" /></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;">Very often, these relationships are also simplified, mentally classifying them like a "supplier" or even worse, "the middle man", as if for some inherited privilege they have earned the right to collect some type of tax that they don't really deserve.</div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br style="box-sizing: border-box;" /></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;">The truth is that many companies rely on partnerships to deliver their products to the market, and their partners are an integral part of their Go-To-Market strategy. In today's world, it is a rare find a company that is capable to deliver their product or service all the way from the source, to the hands of the customer. Along this journey, several companies -or "partners"- may perform services, attach other products, etc. <span style="box-sizing: border-box; font-weight: bold; text-decoration-line: underline;">adding value</span> to the final product that lands at the customer. It is from this journey and the several steps of value-add that the concept of the value chain stems from, and the product or service that is delivered to the customer is experienced through its <span style="box-sizing: border-box; font-weight: bold;">Joint Value Proposition.</span></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br style="box-sizing: border-box;" /></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;">While these concepts are omnipresent in the tech industry, they are all over our economy as well. Two of the most noticeable ones are the Distribution Channel, and the Service Delivery Partners. As for the first one, we see it everywhere, from the grocery store, the car dealership, or our trusted IT guy. For example, it is impossible -and not cost-effective- for car manufacturers to set up dealerships in every town, so they rely on entrepreneurs who are willing to enter in this business. In a similar way, growers and other foodstuff manufacturers cannot afford to go to every town to sell their goods, so they engage in the distribution network (channel!) that brings those goods to your local grocery store.</div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br style="box-sizing: border-box;" /></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;">It is very important to recognize the value that each of these partners offers for the consumer. Yes, they take a piece of the profits to pay for their services, but they also add value to the product or service. For example, the local dealership makes it easy to get there, they offer financing (they basically bring together the automobile, and a financial product, the loan), and they can also service your car.</div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br /></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;">In the case of the grocery store, besides making it really convenient to buy, with extended business hours, refrigeration, and now even home delivery, they are also an "aggregator", allowing us to buy apples, milk and honey, without having to visit the orchard, the dairy farmer, and the beekeeper.</div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br style="box-sizing: border-box;" /></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;">A Service Delivery Partner can be a key player in the value chain, especially if the product or service requires installation, servicing, or any form of customization. They can be as simple as the independent contractor that may install the carpets that you bought at the big home-improvement store, or as complex as Microsoft's partner network, where partners specialize in specific technologies. Think about the difference in value of the carpet just delivered to your house in a roll, vs. actually being able to step on it. How much more value does that have in terms of your ability to enjoy the product?</div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br style="box-sizing: border-box;" /></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;">The way we experience a product or service is the result of all the value transactions that occur throughout the value chain, before they reach us. Some of these value transactions and the players involved, have evolved over time, filling a need. Others have been created intentionally, by design. This is where some companies have the opportunity to differentiate themselves from others by designing value chains that complement each other, delivering value to their customers.</div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br style="box-sizing: border-box;" /></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;">In your journey, What would you build if you could do it all? What are you missing? What kind of partner do you need that complements the value that you create? What would be the differentiated joint value proposition?</div><br /><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br style="box-sizing: border-box;" /></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><p class="MsoNormal">* Huba
Rostonics is a go to market, marketing and channel strategist that has helped
companies in the cloud, virtualization, networking, IT security, and telecom
verticals to build strong and resilient partner ecosystems, and attain
ambitious sales objectives. Visit his website at http://www.channelmeister.com<o:p></o:p></p><p class="MsoNormal"><br /></p>
<p class="MsoNormal"><br /></p><p class="MsoNormal"><br /></p><p class="MsoNormal"><br /></p>
<p class="MsoNormal"><o:p> </o:p></p></div><div style="box-sizing: border-box; margin: 0px; padding: 0px;"><br style="box-sizing: border-box; color: #333333; font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Fira Sans", "Droid Sans", "Helvetica Neue", sans-serif; font-size: 14px;" /></div></div>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com0tag:blogger.com,1999:blog-5822238157430691095.post-60854981415227153112021-05-01T15:05:00.002-04:002021-09-29T11:50:58.125-04:00How a Small Colombian Language Training Institute is Reshaping its Marketing Strategy by Esteban Ochoa * [32]<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjN_u4t59TIvJzH5xZfWC5KwYaeyKSuBaIl94KGSdR118IoIKxUPWZbh_rFFpVInPXA4aOHqNl9B3XoxeNzITTrmW5FsVR8UDrOhhY35olUGi3SsAav1MEumHgX6iUt_aGQOJwomZpatK52/s566/LI-R545ccc995bcc75b51d8dd4c20c39e2ef.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="566" data-original-width="566" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjN_u4t59TIvJzH5xZfWC5KwYaeyKSuBaIl94KGSdR118IoIKxUPWZbh_rFFpVInPXA4aOHqNl9B3XoxeNzITTrmW5FsVR8UDrOhhY35olUGi3SsAav1MEumHgX6iUt_aGQOJwomZpatK52/s320/LI-R545ccc995bcc75b51d8dd4c20c39e2ef.jpg" /></a></div><span style="font-size: medium;"><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;">Established
in 1978, A.V.C is a premium language institute in Medellin, Colombia. The firm utilizes
a customer intimacy strategy. The Institute developed strong relationships with
</span><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;"> </span><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;">students by having an open-door policy about
personal/life issues, granting scholarships based on program excellence, regular
communication with family members, and an end-of-year award ceremony.</span></span><p></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: medium; text-indent: 0.5in;">A.V.C.
offers programs in English, French, German, and Italian to a Spanish-speaking market.
Although the Institute has been in business for more than 40 years, only 600 students
achieved full proficiency in their chosen languages and graduated. Given the
difficulty of the program, nearly half of the students were unable to complete
the coursework. The Institute has always focused on offering small classes, custom-tailored
learning programs, and tutoring sessions with an emphasis on building lifelong customer
relationships. Graduates still visit the school and often send their own
children there.</span></p><p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: medium; text-indent: 0.5in;">Although
A.V.C reached a high level of customer intimacy with students and alumni, due
to lack of technological preparation, the Institute had to close at the
beginning of the COVID-19 pandemic and lay off 85% of its employees. Service
firms have had to look for ways to operate remotely to survive. VOC Digital was
retained to re-imagine A.V.C.’s business model. The project started with identifying
the right target market. Additionally, new sources of income were required to
fund the virtualization of the different courses and re-hire of teachers.</span></p><p class="MsoNormal"><span style="font-size: medium;"><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;">Instead
of looking to compete in the crowded city, VOC targeted rural residents, ages
15 through 45 in the outskirts of Medellin, Colombia. Using a geodemographic
segmentation approach, there were two reasons that rural Colombian towns were selected
as the target market:</span><span style="color: #0070c0; font-family: "Times New Roman", serif; text-indent: 0.5in;"> </span></span></p><p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: medium; text-indent: 0.5in;">1)
<i>Service availability</i>: Typically, formal foreign language lessons in Colombia
are limited to middle and upper-class families in the city and those studying
in citadel universities. Rural residents generally leave their towns for
opportunities that only the big cities can offer, education being one of them.
The service itself is almost non-existent in rural communities. VOC Digital and
A.V.C. recognize this untapped market opportunity.</span></p><p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: medium; text-indent: 0.5in;">2)
<i>Number of rural towns in Antioquia and throughout Colombia</i>: In the west region
of Antioquia alone (Antioquia is the equivalent of a state in the United
States), there are approximately 23 rural towns with an average population of more
than 25,000 residents. In all of rural Antioquia, which is only one state in
Colombia, there are over 8.5 million inhabitants. Furthermore, Colombia has 32 departments
or states (User, S. n.d.).</span></p><p class="MsoNormal"><span style="font-size: medium;"><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;">The
solution for the an alternative income generation source will be supplied by
renting out a large portion (75%) of the school (a land asset) as office
spaces. The two-story building is located in a prime central location in the
heart of downtown Medellin which adds value and demand due to heavy foot
traffic. </span><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;">Creating a new revenue stream combined with the proposed
segmentation strategy and digital technology (adding virtual courses) will
reinvigorate the educational services offered.</span></span></p><p class="MsoNormal"><span style="font-size: medium;"><span style="font-family: "Times New Roman", serif; text-indent: 0.5in;">VOC
Digital is currently creating all of the online programs that combine small (in
student count) recorded virtual classes, custom-tailored learning programs, and
online tutoring all under one centralized portal designed for cell phones which
is funded by the rental spaces. All of the guides, course materials, and tests
given will be compatible and optimized as well for mobile devices. Such a
seamless integration is not only to make the program more user-friendly and accessible
to its future student body but to be able to do it at a cost low enough to
establish an ongoing relationship with consumers in rural Colombia.</span><span style="color: #0070c0; font-family: "Times New Roman", serif; text-indent: 0.5in;"> </span></span></p><p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: medium; text-indent: 0.5in;">The
hiring process for teachers begins in June 2021 and will be finalized by
November 2021. A pilot course is set to launch at the end of the second quarter
of 2022 to collect real time user data and will be offered free of charge to 15
individuals. During the remainder of 2022, three more free courses will be
opened to further improve user experience and build customer intimacy with the
first set of students taking language classes via the new approach. The launch
of all the courses is planned for the start of 2023. Data will be collected
monthly to continue to improve user experience. A.V.C is excited about the new
strategy and creating long-term value for its clients.</span></p><p class="MsoNormal" style="text-indent: 0.5in;"><span style="font-size: medium;"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: medium; text-align: center;"><u>Reference</u></span></p><p style="margin-left: 28.35pt; text-indent: -28.35pt;"><span style="font-size: medium;">User, S. (n.d.). 3.2.1-Proyecciones de población según ÁREA GEOGRÁFICA en Los municipios DE antioquia. Años 2015 - 2017. Retrieved March 21, 2021, from http://www.antioquiadatos.gov.co/index.php/3-2-1-proyecciones-de-poblacion-segun-area-geografica-en-los-municipios-de-antioquia-anos-2015-2016</span></p><p style="margin-left: 28.35pt; text-align: left; text-indent: -37.8px;"><span style="font-size: medium;"><span style="text-align: justify; text-indent: 0.5in;">* Esteban Ochoa is the owner of VOC Digital, a marketing agency. He may be reached at: vocdigitalco@gmail.com </span><span style="font-family: "Times New Roman", serif; text-align: justify; text-indent: 0.5in;"> </span></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: medium;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color: #0070c0; font-family: "Times New Roman",serif; font-size: medium;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color: #0070c0; font-family: "Times New Roman",serif; font-size: medium;"><o:p> </o:p></span></p>
<p align="center" class="MsoNormal" style="text-align: center;"><span style="color: #0070c0; font-family: "Times New Roman",serif; font-size: medium;"><o:p> </o:p></span></p>
<p align="center" class="MsoNormal" style="text-align: center;"><span style="color: #0070c0; font-family: "Times New Roman",serif; font-size: medium;"><o:p> </o:p></span></p>
<p align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: "Times New Roman",serif;"><o:p> </o:p></span></p>
<p align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: "Times New Roman",serif;"><o:p> </o:p></span></p>
<p align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: "Times New Roman",serif;"><o:p> </o:p></span></p>
<p align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: "Times New Roman",serif;"><o:p> </o:p></span></p>
<p align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: "Times New Roman",serif;"><o:p> </o:p></span><span style="font-family: "Times New Roman", serif;"> </span></p>
<p align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: "Times New Roman", serif;"> </span></p>
<p align="center" class="MsoNormal" style="text-align: center;"><br /></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com1tag:blogger.com,1999:blog-5822238157430691095.post-84663259962710204642021-03-02T21:00:00.001-05:002021-09-29T11:50:34.812-04:00Nobody Does it Better - How an Australian Denim Brand Wins Globally through Supply Chain Transparency by Kanika Meshram * [31]<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgz90hiQq1PsNj5_wywiKm5YgzmQYt_qYx5JsU-0kWvOAyUt7fT4YpJ6pg20hgI4BZQkZT0LhvPRxykf9IB08s3nIdGgx5WOWvNtTz_buEU_ypx40JNiLr8PvvPxuQJQZqwGvde88ggd4me/s600/Nobody-Denim-Womens-Belong-To-Nobody-Slogan-T-Shirt-Printed-Graphic.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="600" data-original-width="600" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgz90hiQq1PsNj5_wywiKm5YgzmQYt_qYx5JsU-0kWvOAyUt7fT4YpJ6pg20hgI4BZQkZT0LhvPRxykf9IB08s3nIdGgx5WOWvNtTz_buEU_ypx40JNiLr8PvvPxuQJQZqwGvde88ggd4me/s320/Nobody-Denim-Womens-Belong-To-Nobody-Slogan-T-Shirt-Printed-Graphic.jpg" /></a></div><p><span style="font-family: arial;">Denims are a fundamental part of modern fashion.
Everyone seems to own a pair. The massive popularity of denim product has a lot
to do with its symbolic value</span><i style="font-family: arial;">—</i><span style="font-family: arial;"> the notion of cowboys, American Wild
West, rock ‘n’ roll, punk rebellion (think Mick Jagger, Blondie, and John Lydon aka Johnny Rotten);
the hippie movement in the ‘70s; grunge of the ‘90s; and the supermodel brigade.
Titans of denim industry sustained competition using linear business models that
massively reduced their production costs. But, at the cost of opaque supply
chains with questionable working condition of factory workers and environmental
damage </span><span style="font-family: arial;">(Ethical Fashion Report., 2019)</span><span style="font-family: arial;">.</span></p><p></p><p class="MsoNormal" style="line-height: 150%;"><i><span lang="EN-GB"><span style="font-family: arial;">What if we tell consumers who made
their clothes?<o:p></o:p></span></span></i></p><p class="MsoNormal" style="line-height: 150%;"><span lang="EN-GB"><span style="font-family: arial;">This is the question Nobody Denim’s CEOs John and Nick
Condilis asked each other when they decided to create supply chain transparency
as their competency. Born in 1992, Nobody Denim is a Melbourne, Australian
based denim company. This legacy brand was initially a denim laundry which
gives a denim its ‘distress look’ and ultimately its price value. In mid 90s the
Condilis brothers decided to expand their denim laundry into denim
manufacturing. In this blog I unpack the business model of Nobody using the
dynamic capabilities perspective to demonstrate how this brand competes in the
premium denim market (see Figure). A business model is the architecture of an
organization that is enabled by its dynamic capabilities (Wirtz, Pistoia, Ullrich, & Göttel, 2016). According
to Teece (2018), a dynamically capable
organization will rapidly <a name="_Hlk36135517">capture, create, and deliver
customer value</a> through sensing, seizing and transforming capabilities.</span></span></p><p class="MsoNormal" style="line-height: 150%;"><span style="font-family: arial;"><i><span lang="EN-GB">Sensing a value opportunity: </span></i><span lang="EN-GB">Sensing is inherently
involved with scanning the business ecosystem to identify and propose new customer
values (Teece, 2011). For Nobody, the
sensing activity was about educating customers on the value of ethical
manufacturing in the fashion industry. To achieve this Nobody, opened their
factories for customers to experience denim making from cut to finish and importantly
interact with their garment workers. To assure customers about their brand integrity
in fair work practices they also obtained Ethical Supply Chain accreditation. The
rationale for this approach according to John was, ‘<i>we are nobody, we don’t
make a lot of noise, but those who wear us, do</i>’.</span></span></p><p class="MsoNormal" style="line-height: 150%;"><span style="font-family: arial;"><i><span lang="EN-GB">Seizing the value opportunity: </span></i><span lang="EN-GB">The seizing activity
involves designing a value chain to satisfy customers and capture value (Teece, 2011). This activity also includes
securing access to capital and the necessary human resources. Similarly, for
Nobody, the seizing activity involved building competency in eco-centric denim production in
Australia. For this, Nobody invested in ‘cut and sew operations’, ‘trained
workers’ and ‘innovative techniques’ that consume less water during denim
washing. To minimize their carbon footprint, Nobody also emphasized a shorter supply chain — their head
office, factory, laundry, and retail store are all within a 6-km radius in
Melbourne.</span></span></p><p class="MsoNormal" style="line-height: 150%;"><span style="font-family: arial;"><i><span lang="EN-GB">Transforming the value opportunity:
</span></i><span lang="EN-GB">Transforming
capabilities involves shifting firm emphases to radical new opportunities. This
activity is also needed periodically to soften rigidities developed over time
from standard operating procedures (Teece, 2011).
For Nobody Denim, the transformation process took place during the COVID-19
pandemic when the global fashion industry faced a massive drop in sales (Walk Free Foundation, 2020). However, Nobody
survived the pandemic by capitalizing on their worker capabilities in
stitching, sewing, and designing to make medical protective clothing for health
care workers. This transition is not a short-term fix but a long-term strategy
for Nobody. According to John, the pandemic has exposed the fragility of
Australian supply chains and our heavy reliance on other countries for medical
supplies. As part of the solution, Nobody invested in infrastructure that will
enable it to make up to four million masks, 300,000 gowns, and 170,000 scrubs
per year.</span></span></p><p class="MsoNormal" style="line-height: 150%;"></p><ul style="text-align: left;"><li><span lang="EN-GB"><span style="font-family: arial;">Thus, the key takeaways from Nobody’s business model is
how this brand kept customers and their workers central to all their value creation
activities. Second, how Nobody built consumer trust by caring for their
workers, paying fair wages and being transparent about their production process.
Nobody also entices customers with lifetime free repair on their denim. </span></span></li><li><span lang="EN-GB"><span style="font-family: arial;"><span style="background-color: #01ffff;">Value added</span>: For
readers of this blog, John shares some great advice on the perfect way to wash your
jeans, “<i>All jeans should be washed as little as possible, turned inside out
and washed on a cold cycle and line dried for the longest life. No dryers
please!</i>”</span></span></li></ul><p></p><p class="MsoNormal" style="line-height: 150%;"><span lang="EN-GB"><span style="font-family: arial;"> Figure - The Business Model of Nobody Denim</span></span></p><p class="MsoNormal" style="line-height: 150%;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7RGEA5dZfEYqSycou_XZxfNyOGz43BmcP2v6nN4tl7l_ILWkoaZGjjvqkSIXD9Uh3Wa9hfo6MVzNrtpVwggfnEISxfTD2aFsR7pFYt_CoDGXw3BmMjy8YcC-YbPxsziRCqIU5LiyFMPXP/" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="336" data-original-width="576" height="187" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7RGEA5dZfEYqSycou_XZxfNyOGz43BmcP2v6nN4tl7l_ILWkoaZGjjvqkSIXD9Uh3Wa9hfo6MVzNrtpVwggfnEISxfTD2aFsR7pFYt_CoDGXw3BmMjy8YcC-YbPxsziRCqIU5LiyFMPXP/" width="320" /></a></div><p></p><p class="MsoNormal"><span style="font-family: arial;"><b><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;">VP</span></b><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;">: What is offered to
customers? Sensing opportunities in ethical supply chains that are of value to
customers.<o:p></o:p></span></span></p><p class="MsoNormal"><span style="font-family: arial;"><b><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;">VC</span></b><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;">: How is the value proposition
created? Building eco-centric capabilities to seize new customers, business
clients and resources<o:p></o:p></span></span></p><p class="MsoNormal"><span style="font-family: arial;"><b><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;">RM</span></b><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;">: How is revenue created? Using
worker capabilities to transform the revenue to a changing environment.</span></span></p><p class="MsoNormal"><span style="font-family: arial;"><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;"><br /></span></span></p><p class="MsoNormal" style="line-height: 150%;"><i><span lang="EN-GB"><span style="font-family: arial;">* Dr. Kanika Meshram is a Lecturer in Management and Marketing at the University of Melbourne. She may be reached at kanika.meshram@unimelb.edu.au. </span></span><span style="font-family: arial;">This blog is based on the author’s forthcoming paper
and interview with John Condillis from Nobody Denim for their research project
on modern slavery in fashion industry.</span></i></p><p class="MsoNormal"><span style="font-family: arial; font-size: x-small;"><b><span lang="EN-GB">Key Reference: Meshram, K</span></b><span lang="EN-GB">.,
Bhakoo, V. & Bove, L. (forthcoming) Building and Sustaining an Anti-Slavery
Business Model: A Tale of Two Fashion Brands. <i>Journal of Strategic Marketing.</i></span></span></p><p class="MsoNormal" style="line-height: 150%;"><span style="font-family: arial; font-size: x-small;"><b><span lang="EN-GB">Additional References</span></b><span lang="EN-GB"><o:p></o:p></span></span></p><p class="EndNoteBibliography" style="margin-left: 0.5in; text-indent: -0.5in;"><span style="font-family: arial; font-size: x-small;">Ethical Fashion Report. (2019). <i>The Truth Behind the Barcode</i>. Retrieved from https://baptistworldaid.org.au/resources/2019-ethical-fashion-report/<o:p></o:p></span></p><p class="EndNoteBibliography" style="margin-left: 0.5in; text-indent: -0.5in;"><span style="font-family: arial; font-size: x-small;">Teece, D. J. (2011). Dynamic capabilities: A guide for
managers. <i>Ivey Business Journal, 75</i>(2),
29-32. <o:p></o:p></span></p><p class="EndNoteBibliography" style="margin-left: 0.5in; text-indent: -0.5in;"><span style="font-family: arial; font-size: x-small;">Teece, D. J. (2018). Business models and dynamic
capabilities. <i>Long Range Planning, 51</i>(1),
40-49. <o:p></o:p></span></p><p class="EndNoteBibliography" style="margin-left: 0.5in; text-indent: -0.5in;"><span style="font-family: arial;"><span style="font-size: x-small;">Walk Free Foundation. (2020). <i>Protecting People in a Pandemic: Urgent collaboration is needed to
protect vulnerable workers and prevent exploitation</i>. Retrieved from https://cdn.minderoo.org/content/uploads/2020/04/30211819/Walk-Free-Foundation-COVID-19-Report.pdf</span><o:p></o:p></span></p><p class="EndNoteBibliography" style="margin-left: 0.5in; text-indent: -0.5in;"><span style="font-family: arial;"><span style="font-size: x-small;">Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel,
V. (2016). Business models: Origin, development and future research
perspectives. <i>Long Range Planning, 49</i>(1),
36-54. </span><o:p></o:p></span></p><p class="MsoNormal"><span lang="EN-GB"><span style="font-family: arial;"> </span></span></p><p>
<span style="font-family: arial;"> </span></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com16tag:blogger.com,1999:blog-5822238157430691095.post-23290446487092895702021-02-26T18:50:00.001-05:002021-09-29T11:50:11.028-04:00The 7 Foundational Characteristics of Customer Value by Sara Leroi-Werelds * [30]<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhWcbJTeg3TozjLM8fDW0WhnpWtE56UE-I1kGSZaP9wkjF3dqRS5BR7kYWPHudFrv6Hib3uGZ7QjYzN7m_0AwC7msT33ko5jET7ixLLW3ULsOxlbOm12Ufqv_h-_a8Of50JXn3K-M4EkVrl/s1024/costs-benefits-and-customer-value-l.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="768" data-original-width="1024" height="299" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhWcbJTeg3TozjLM8fDW0WhnpWtE56UE-I1kGSZaP9wkjF3dqRS5BR7kYWPHudFrv6Hib3uGZ7QjYzN7m_0AwC7msT33ko5jET7ixLLW3ULsOxlbOm12Ufqv_h-_a8Of50JXn3K-M4EkVrl/w418-h299/costs-benefits-and-customer-value-l.jpg" width="418" /></a></div><br /><p></p><p></p><p class="MsoNormal" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">“There
is only one boss. The customer. And he can fire everybody in the company from
the chairman on down, simply by spending his money somewhere else.” Sam Walton,
founder of Walmart<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">This
quote nicely shows the link between value for the customer and value for the firm.
Put simply, if there is no value for the customer, there is no value for the firm.
For this reason, customer value has been recognized as one of the most
fundamental concepts in marketing. Based on recent work (Leroi-Werelds 2019),
we can discern seven key characteristics of customer value: <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b style="mso-bidi-font-weight: normal;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">1. Customer value implies an interaction between a subject
and an object <o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">Customer
value involves a customer (i.e. the subject) interacting with an object. The
object can be a product, a service, a technology, an activity, a store, … <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b style="mso-bidi-font-weight: normal;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">2. Customer value involves a trade-off between the benefits
and costs of an object<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">One
of the most often cited definitions of customer value is the one offered by Zeithaml
(1988, p. 14) defining it as “the consumer’s overall assessment of the utility
of a product based on perceptions of what is received and what is given.” This
means that customer value involves a cost-benefit analysis made by the
customer. The benefits are the positive consequences of using a product,
encountering a service, visiting a store, using a technology, performing an
activity, … The costs are the negative consequences.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b style="mso-bidi-font-weight: normal;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">3. Customer value is not inherent in an object, but in
the customer’s experiences derived from the object<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">Customer
value is experiential and is thus not embedded in the object. This is in line
with the notion of ‘value-in-use’: “value is not created and delivered by the
supplier but emerges during usage in the customer’s process of value creation”
(Grönroos and Ravald 2011, p. 8).<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b style="mso-bidi-font-weight: normal;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">4. Customer value is personal since it is subjectively
determined by the customer <o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">It
is the customer and not the supplier who determines if an object is valuable.
This implies that customer value is subjective and personal. Each customer has
his/her own value perceptions based on personal characteristics such as
knowledge, needs, skills, previous experience and financial resources.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b style="mso-bidi-font-weight: normal;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">5. Customer value is situation-specific<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">Customer
value depends on the situation and is thus context-specific. For instance, if
you are in a hurry, the efficiency of a store visit will be more valuable than
when you are ‘fun shopping’.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b style="mso-bidi-font-weight: normal;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">6. Customer value is multi-dimensional<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">Considerable
agreement exists on the multi-dimensional nature of customer value given that
the concept is too complex to be conceptualized and operationalized in a
one-dimensional way. Hence, customer value consists of multiple value types. A
recent update on customer value (Leroi-Werelds 2019) proposed 24 potential
value types (see below). However, it is important to note that not all value
types are relevant for each object.</span></p><p></p><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody><tr>
<td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><b><span lang="EN-GB"> BENEFITS +<o:p></o:p></span></b></p>
</td>
<td style="border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><b><span lang="EN-GB">COSTS -<o:p></o:p></span></b></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Convenience<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Price<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Excellence<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Time<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Status<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Effort<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Self-esteem<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Privacy risk<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Enjoyment<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Security risk<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Aesthetics<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Performance
risk<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Escapism<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Financial risk<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Personalization<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;">Physical risk</p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Control<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Ecological costs<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Novelty<span> </span><span> </span><span> </span><span> </span><o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Societal costs</span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Relational
benefits<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB"> </span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Social benefits<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB"> </span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Ecological
benefits<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB"> </span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB">Societal benefits<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt;" valign="top">
<p class="MsoNormal" style="margin-bottom: 0in;"><span lang="EN-GB"> </span></p>
</td>
</tr>
</tbody></table><span face="Verdana, sans-serif" style="font-size: 9pt;"> </span><p></p><p class="MsoNormal" style="line-height: 150%;"><b style="mso-bidi-font-weight: normal;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">7. Customer value is created by the customer by means
of resource integration<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">By
means of resource integration, the customer transforms the potential value of
the object into real value.</span> <span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;">The customer thus
integrates the resources provided by the firm (e.g. products, services,
information) with other resources and skills to create real value. For
instance, the value of a car is created by the customer when he/she integrates
and combines this car with other resources (such as fuel, public roads, car
insurance, maintenance/repair service), but also his/her own driving skills.
Without these other resources and the needed skills, the customer cannot create
value.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;"><o:p><u>References </u></o:p></span></p><p class="MsoListParagraph" style="line-height: 150%;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;"><o:p>Key Reading: Leroi-Werelds, S. (2019), "An Update on Customer Value: State of the Art, Revised Typology, and Research </o:p></span><span style="font-size: 9pt;">Agenda," </span><i style="font-size: 9pt;">Journal of Service Management</i><span style="font-size: 9pt;">, Vol. 30, No. 5, 650-680.</span></p>
<p class="MsoNormal" style="line-height: 150%;"><span style="font-size: 9pt;">Gronroos, C. and Ravald, A. (2011), "Service as Business Logic: Implications for Value Creation and Marketing,"</span><span style="font-size: 9pt;"> </span><i style="font-size: 9pt;">Journal of Service Management</i><span style="font-size: 9pt;">, Vol. 22, No. 1, 5-22.</span></p><p class="MsoNormal" style="line-height: 24px;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 18px; mso-ansi-language: EN-US;">Zeithaml, Z. (1988)</span><span style="font-size: 9pt;">, "Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence,</span><span style="font-size: 9pt;"> </span><i style="font-size: 9pt;">Journal of Marketing</i><span style="font-size: 9pt;">, Vol. 52, July, 2-22.</span></p><p class="MsoNormal" style="line-height: 24px;"><span style="font-size: 9pt;">* Dr. Sara Leroi-Werelds is an Assistant Professor of Marketing at Hasselt University, Belgium. She may be reached at sara.leroiwerelds@uhasselt.be </span></p>
<p class="MsoNormal" style="line-height: 150%;"><b style="mso-bidi-font-weight: normal;"><span face=""Verdana",sans-serif" style="font-size: 9pt; line-height: 150%; mso-ansi-language: EN-US;"><o:p> </o:p></span></b></p><br /><p></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com9tag:blogger.com,1999:blog-5822238157430691095.post-54838068553707931622021-02-08T18:57:00.002-05:002021-09-29T11:49:43.230-04:00Perceived Value in Business Relationships - It's Not Always Rational by Maja Arslanagic-Kalajdzic * [29]<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgui-iMPj7ay96PWH-3Iz3LgASr4DTTCaCX8_pvxN7CLJ7gyGihrirCXY_K8aeVpWZCqY1HI9xFCR7oq3CgCZMPzsEqLQ_Zgm7IldkMHAvjTCYvAlK3xzBPcEAhwvxw9vwAvoNb0NAyw6HS/s264/EFS-Value.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="200" data-original-width="264" height="254" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgui-iMPj7ay96PWH-3Iz3LgASr4DTTCaCX8_pvxN7CLJ7gyGihrirCXY_K8aeVpWZCqY1HI9xFCR7oq3CgCZMPzsEqLQ_Zgm7IldkMHAvjTCYvAlK3xzBPcEAhwvxw9vwAvoNb0NAyw6HS/w335-h254/EFS-Value.jpg" width="335" /></a></div><br /><span style="font-family: arial;">When we think about the perception of value in business
relationships, we usually regard business customers as rational entities that are driven by functional motives. Namely, as the main mantra of businesses is usually to increase profit, either by increasing the sales or by lowering the costs, we often believe that this is the case with business customers, too.
Hence, value propositions in B2B markets are functional in their essence,
meaning that they aim at demonstrating benefits (e.g., quality) and/or sacrifices (e.g., costs). However, is this always the case? Is there
anything more to the functional value dimension in B2B relationships?</span><p></p><p class="MsoNormal"><span style="font-family: arial;"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;">Research findings indicate that perceived value complements
business customers’ satisfaction and plays a vital role in various behavioral
outcomes. However, most evidence are still made on the functional value
dimension only. By focusing on the professional services industry, it can be shown that
other dimensions of perceived value exist in business relationships and that
they are indeed relevant for relationship outcomes. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;">Relying on the theory of consumption values that is
predominantly used in B2C research, functional, emotional, and social
value are defined. The functional value dimension assumes rational, economic and monetary
benefits and costs. Utility of choice (taken from the field of economics) and
means-end theory serve as justifications for this dimension. Two of the most
prominent components of functional value are quality and price of goods/services.<i> Functional value</i> is the utility derived from perceived quality, a
perceived reduction in short-and long-term costs, and the expected performance
of service offers and processes. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><i>Emotional value</i> is often neglected in business research due to the underlying notion that organizations are rational formations that
can only assess functional value elements. When talking about business
services, purchase units are operated by people, and service
providers need to work with people from client firms. In the context of
professional services, people are the key element on both sides. On the side of
the provider, they are the key “ingredient” of the services provided. On the
side of the client, without expressing needs and conceptions, and without close
cooperation with people, the provider will hardly understand the client’s
expectations. Emotional value in business relationships is the utility derived
from the feelings or affective states that the service generated for the buying-center participants of the client firm.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;">The third dimension, <i>social value</i> is explained through
social self-concept in the theory of consumption values. It has already been
researched in the business relationship context, mostly pertaining to the
social bonds between a provider and a client. The assessment of the social
value of a provider’s services may differ in terms of its relevance to either
the client’s products/services or the client’s firm. In terms of professional
business services, a client’s product/service may be socially perceived in a
certain way since a specific service provider is engaged (e.g., if an advertising agency is known in the market for highly rated video production,
a client’s products/services can be more highly valued if they are using that
agency’s services in their new ad campaign). Yet, professional business services
may also have a social value in terms of business references for the client’s
firm in general, so that a firm is valued more highly (e.g. working with a
specific provider may boost the credibility of the client itself). Social value
is the utility derived from the acceptance, positive impression and social
approval of the business client firm and its products/services that the service
relationship generated. Social approval encompasses the approval of different
stakeholders (e.g., owners, clients, industry partners). <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;">Research results of the study with ad agencies and their
clients show that all three dimensions of value indeed exist and that they have
differential effects on relevant outcomes – satisfaction and loyalty. A strong
link between perceived functional value and satisfaction is confirmed. However, it is also shown that satisfaction is further explained by
perceived social value. Surprisingly, emotional value does not have a direct
effect on satisfaction, but it directly influences loyalty. On the one hand,
this finding can be interpreted through the view that emotional value has a particular
role for loyalty, which is defined as deeply held long-term commitment, and
that for that reason, emotional value serves as an argument for continuance or
termination of a relationship with a provider. On the other hand, functional
and social values primarily elicit satisfaction as an immediate outcome, and
influence loyalty only indirectly.</span></p><p class="MsoNormal"><span style="font-family: arial;"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;">These findings show that service providers cannot solely
rely on functional value, and that developing positive emotional and social
value notions in their value proposition should also be considered. By building
and sustaining a good corporate reputation, making investments to improve
credibility and by ensuring high relationship quality, service providers could
improve different facets of perceived value and through them positively impact
their clients’ attitudinal and behavioral outcomes. We start with perception of
ad agencies as providers of professional services. However, probably similar
conclusions could be derived for other professional services industries (e.g.,
IT services, consultancy services, accounting services, banking and insurance
services) and they should also yield consistent results. When it comes to other
industries, especially if we talk about manufacturing industries or supply
chain relationships, we are of the opinion evidence for emotional and social
value existence could be found, too. However, their relevance would probably
depend upon various factors, such as the level of knowledge/expertise the
provider offers, the length of the purchase phase, the general
intensity of the relationship with the provider and the role of the
decision-making unit in more complex purchase situations.</span></p>
<p class="MsoNormal"><span style="font-family: arial;">* Maja Arslanagić-Kalajdžić, Ph.D. is an Associate Professor
of Marketing at the University of Sarajevo. She can be reached on <a href="mailto:maja.arslanagic@efsa.unsa.ba">maja.arslanagic@efsa.unsa.ba</a>.</span></p>
<p class="MsoNormal"><span style="font-family: arial;">This blog is based on an article: <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;">Arslanagic-Kalajdzic, M., & Zabkar, V. (2017). Is
perceived value more than value for money in professional business services?
Industrial Marketing Management, 65, 47–58. doi:10.1016/j.indmarman.2017.05.005
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="mso-spacerun: yes;"> </span> </span><o:p></o:p></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com1tag:blogger.com,1999:blog-5822238157430691095.post-1522733320903460452021-02-01T14:14:00.002-05:002021-09-29T11:49:23.394-04:00Value Creation and Value Capture by Shekhar Misra * [28]<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibVp-DXt7OKBfkRyvSa73dI8KDReM-u0k1CxzoaFflD-xxJQ2XBWOuODmVoTMVHF_KjZ_sldCcZ948CQTg58msO8jzxUivzE3zEnC0ui6RHZWNzK_fq-x21vHplOuGQ8qj8MvFfGhVSUJF/s1031/ValueCreationCapture.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="604" data-original-width="1031" height="239" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibVp-DXt7OKBfkRyvSa73dI8KDReM-u0k1CxzoaFflD-xxJQ2XBWOuODmVoTMVHF_KjZ_sldCcZ948CQTg58msO8jzxUivzE3zEnC0ui6RHZWNzK_fq-x21vHplOuGQ8qj8MvFfGhVSUJF/w409-h239/ValueCreationCapture.png" width="409" /></a></div><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none;"><span face=""Arial",sans-serif" style="font-size: 12pt;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none;"><span face=""Arial",sans-serif" style="font-family: arial; font-size: 12pt;">Value creation and value capture have
been extensively studied in both management and marketing. Yet, as recent work
in this area has grown, their meaning has become ambiguous. I believe that value
creation and value capture are distinct yet interlinked constructs. Value
creation is determined by customers’ subjective evaluations of a firm’s
offerings while value capture is determined by the profits a firm is able to generate.
<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none;"><span face=""Arial",sans-serif" style="font-family: arial; font-size: 12pt;">Value creation is a central concept in
marketing as customer perceptions of value are pivotal determinants of product
choice and buying behavior. Customer value is based on the principle of utility
maximization and is summarized as the customer’s overall assessment of the
utility from a product based on her perceptions of what she “gets” in-return
for what she must “give” up. The “get” aspect concerns the overall benefits
customers derive (or expect to derive) from a product while the “give” aspect
pertains to the overall costs customers incur (or expect to incur) to enjoy the
product’s expected benefits. From this perspective, customer value can be
defined as the <i>“customers’ net valuation
of the perceived benefits accrued from an offering that is based on the costs
they are willing to give up for the needs they are seeking to satisfy”</i>. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none; tab-stops: .25in;"><span face=""Arial",sans-serif" style="font-family: arial; font-size: 12pt;">The “give” aspect of
value creation is comprised of all the costs incurred by customers to obtain
the benefits of product consumption. Customers sacrifice money and other
resources such as time, energy, effort, etc. to find, buy and use products.
These costs include those related to finding, acquiring, consuming,
maintaining, and if necessary disposing of the product. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none; tab-stops: .25in;"><span face=""Arial",sans-serif" style="font-family: arial; font-size: 12pt;">The “get” dimension of
value creation includes the benefits customers derive from a product, which may
be functional, experiential, and/or symbolic. Functional benefits are the
intrinsic benefit customers derive from a product and are primarily based on
its objective and perceived quality. Objective quality is the aggregate
performance of all product attributes, while perceived quality is a customer’s
subjective evaluation of the product’s overall superiority compared to other
products in the customer’s evoked set. Experiential benefits capture customers’
personal experience using a product corresponding to product-related
attributes, such as sensory pleasure, stimulation, variety, etc. For example,
color is an important product attribute on which customers have varying
preferences. Finally, symbolic benefits concern the extrinsic advantages of
using the product. These benefits are generally linked to non-product related
attribute benefits such as self-expression and social approval. Therefore,
perceived value is the consumer's overall assessment of the utility of a
product based on perceptions of what is received and what is given. This
assessment is based on consumers’ idiosyncratic preferences and choices and as
a result, varies from one consumer to another. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none; tab-stops: .25in;"><span face=""Arial",sans-serif" style="font-family: arial; font-size: 12pt;">However, value creation
for customers is only one element of the overall economic value process. The
second critical element is the value captured by the firm in return—not least
because in the absence of value capture a firm has limited incentives to create
customer value. The concept of firm value capture is rooted in the economic
principle of profit maximization, and similar to customer value creation, it
implies a tradeoff between “give” and “get” elements from firm’s perspective.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none; tab-stops: .25in;"><span face=""Arial",sans-serif" style="font-family: arial; font-size: 12pt;">The “give” aspect of
value capture is the firm’s offering to the marketplace that creates customer
value. To deliver a product to the market the firm has to incur various costs
related to conceiving, creating, delivering, and communicating the benefits of
the product to the market. Broadly, these costs can be broken down into R&D
costs, manufacturing costs, distribution costs, and marketing and sales costs.
R&D expenses are those operating expenses incurred in the process of
searching for new solutions and products or seeking to update and improve
existing products and services. Manufacturing costs cover materials, and labor
and factory overhead expenses incurred in converting raw materials into finished
products. Distribution costs are those incurred to transport and deliver the
product from the producer to the end user. Marketing expenses include costs
associated with advertising, promotion (such as on-shelf advertisements, floor
ads, etc.), public relations, package design, and market research. Finally,
selling expenditures includes sales force compensation (such as benefits,
profit sharing, etc.), travel costs, consulting fees, etc.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none; tab-stops: .25in;"><span face=""Arial",sans-serif" style="font-family: arial; font-size: 12pt;">The “get” aspect of
firm value capture is the revenue the firm’s offerings generate in the
marketplace. Revenues from the firm’s offerings are a function of the number of
product units sold and the realized price of each unit. A firm therefore has
only two primary mechanisms to increase its revenues—either by selling more
units of the product or by selling them at a higher price. A firm can sell
higher numbers of units by either attracting more customers to the product or
by increasing the usage of the product by existing customers. Alternatively,
firms can increase the revenue from a product by achieving a higher realized
price for the product. Based on the above, firm value capture is the firm’s
appropriation of financial resources based on the difference between the
revenues and the total costs of delivering the firm’s offerings to the
marketplace. Therefore, value capture can be defined as <i>the firm’s ability to appropriate financial resources from the
marketplace,</i> i.e., how effectively a firm can convert the value present in
the marketplace into profits. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none;"><span face=""Arial",sans-serif" style="font-family: arial; font-size: 12pt;">The central premise is that value creation
and value capture are distinct from each other but still interlinked. Value creation is the perceived value in customers’ minds resulting from the
firms’ actions; and, value capture is the economic benefits a firm derives. This
conceptualization of value creation and value capture enables us to
independently look at the impact of firms’ resources and capabilities. Importantly,
this view also demonstrates that value creation and value capture are not
necessarily a zero-sum game. Both customers’ utility (value creation) and a
firm’s profits from providing customer utility (value capture) can be
simultaneously increased. Hence, a win-win results for the customer and the company.</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none;"><span face=""Arial",sans-serif" style="font-family: arial; font-size: 12pt;"><span style="background-color: whitesmoke; font-size: 13px;"><b>* Shekhar Misra</b></span><span style="font-size: 13px;"><b><span style="color: black; font-size: 10pt; line-height: 16.6667px;">, Ph.D.</span></b><span style="color: black; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: 16.6667px;">, is an Assistant Professor of Marketing at Grenoble Ecole de Management, France. He can be reached at:</span></span><span style="color: black; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: 16.6667px;"> Shekhar.MISRA@grenoble-em.com</span></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; margin: 6pt 0in; mso-pagination: none; text-indent: 0.5in;"><br /></p><p></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com6tag:blogger.com,1999:blog-5822238157430691095.post-89468807678772944852021-01-27T11:30:00.001-05:002021-09-29T11:48:40.555-04:00The Customer Value Proposition as a Basis for Business Strategy by Ravi Chinta * [27]<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuC9lpvAkgqQZI6op9XCo5YIemS54x44NSaxBcBEMxWuguD_LuyVAkStVLN7XBgr2h1LesbSHW63HT81bI5dQlXQw1PU1_fMD_ZATmxh0BI1AKbXQV0hbKy10K9YVwCvJW9_-dmQML-I5f/s494/VP2.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="494" data-original-width="452" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuC9lpvAkgqQZI6op9XCo5YIemS54x44NSaxBcBEMxWuguD_LuyVAkStVLN7XBgr2h1LesbSHW63HT81bI5dQlXQw1PU1_fMD_ZATmxh0BI1AKbXQV0hbKy10K9YVwCvJW9_-dmQML-I5f/s320/VP2.png" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><p></p><p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;"><b>Customer Value Proposition</b> (CVP) has become
one of the most widely used terms in business in recent years. A CVP is the value perceived by customers in the product mix that
your business is offering, in light of competitive options. Most
businesses will conduct marketing research to identify benefits and cost savings to customers to induce purchases. Such research
focuses on understanding customer needs by asking potential buyers what they want with respect to goods and services. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Product enhancement and new product introductions are
often based on a process of continuously “productizing” the needs and wants explicated by customers via research studies. These are
in essence <i>market-based innovations</i> driven by addressing
the desires explicated by the customer. However, in the pre-automobile
era if you asked customers about what they wanted in transportation vehicles;
they would have said they would like to have faster horses. And we know how
automobiles made their debut and made horses obsolete as transportation
vehicles. Thus,<i> technology-based innovations</i> often come in
and transform the mindsets of customers in how they assess perceived value.
Simply stated, the primary difference between market-based innovations and
technology-based innovations is that the former is driven by explicit needs and
the latter is driven by both explicit and implicit needs of the customers.
Thus, the customer-centric view should be expanded to include both explicit
needs (expressed by the customer) and the implicit needs (elicited by a deeper
and unobtrusive observations of customer behaviors). <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Shadowing the customer and evaluating daily behaviors can help understand the implicit needs of
consumers and businesses. For example, </span><span style="font-family: "Times New Roman", serif; font-size: 16px;">in a research project</span><span style="font-family: "Times New Roman", serif; font-size: 12pt;"> at Hill-Rom company, a hospital beds manufacturer based
in Batesville, Indiana, hospital nurses were observed as to how they spend their 8-hour work shifts. And, that analysis led to electronically adding vital signs data entries at the bedside instead of taking notes and then typing in the data at the nursing stations.
Addressing the implicit needs of customers also gives businesses a pioneering
advantage because these initiatives are more difficult to imitate than product
modifications based solely on explicit needs.</span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">I contend that customer value propositions that are properly
constructed and delivered make a significant contribution to business
strategy and overall performance. To ensure market leadership, I recommend that a
firm continuously adds new features to their product/service
offerings based on newly uncovered implicit needs of customers. Apple’s
market dominance is easy to understand when viewed in this way. That is what
sustainable competitive advantage is all about. Thus, customer value propositions must be viewed as a dynamic concept that enables a firm to
self-cannibalize its own product lines and keep up its lead in the
market. It should be noted that customer intimacy is a prerequisite to product
excellence, and it is the responsibility of senior management not just marketing management, to ensure that their customer value
propositions reflect both the explicit and implicit needs of the customer. <o:p></o:p></span></p><p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;"><span style="background-color: whitesmoke; font-family: "Times New Roman"; font-size: 13px;">* <b>Ravi Chinta</b></span><span style="font-family: "Times New Roman"; font-size: 13px;"><b><span style="color: black; font-size: 10pt; line-height: 16.6667px;">, Ph.D.</span></b><span style="color: black; font-family: "quot"; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: 16.6667px;">, is a Professor of Management at Nova Southeastern University. He can be reached at:</span></span><span style="color: black; font-family: "times new roman"; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: 16.6667px;"> rchinta@nova.edu</span></span></p><p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;"><span style="color: black; font-family: "times new roman"; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: 16.6667px;">See "The Value of a Value Proposition" (Post 11) for additional insights on the CVP.</span></span></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com3tag:blogger.com,1999:blog-5822238157430691095.post-9276768029463057472020-12-25T10:50:00.001-05:002021-09-29T11:48:25.552-04:00Magical Marketing - Houdini's Secrets [26] *<div class="ember-view" id="ember10458" style="-webkit-text-stroke-width: 0px; background: none; border-image: none; border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-variant: normal; letter-spacing: normal; margin: 0px; orphans: 2; padding: 0px; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
<div class="reader-article-content" dir="ltr" style="background: none; border-image: none; border: 0px; box-sizing: inherit; margin: 0px; padding: 0px;">
<div style="background: none; border-image: none; border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.75); font-family: "Source Serif Pro", serif; line-height: 3.2rem; margin: 3.2rem 0px; padding: 0px;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_nAd-eATUy7Vg3Fm0z5OBw7KhYlTqCtHiEMBrWHygQTxxKe_afCBgVrXb1MoaxN6s0YmujRdZO4reTyke3y-zY1Q9H_hDspyWjq8lg4gfWOu4aqrb_3v74lH2NhA-HaxRUv8XoTDzlnJV/s1600/2144569119-harry-houdini.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1138" data-original-width="765" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_nAd-eATUy7Vg3Fm0z5OBw7KhYlTqCtHiEMBrWHygQTxxKe_afCBgVrXb1MoaxN6s0YmujRdZO4reTyke3y-zY1Q9H_hDspyWjq8lg4gfWOu4aqrb_3v74lH2NhA-HaxRUv8XoTDzlnJV/s400/2144569119-harry-houdini.jpg" width="266" /></a></div>
<div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;">
<span style="font-family: "times new roman" , serif; font-size: 18pt;"><br /></span></div>
<div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;">
<span style="font-family: "times new roman" , serif; font-size: 18pt;">Harry
Houdini, born Ehrich Weiss in 1874, dazzled American and European audiences
with spectacular magic and illusion feats until his death on Halloween, 1926.
Adapting his name from his hero, J. E. Robert-Houdin, a French magician,
Houdini quickly established himself as the top entertainer in the world in the
late 19th and early 20th centuries. While everyone knows about his marvels as a
legendary magician and escape artist, few know that much of his success was due
to superb marketing.</span><span style="font-family: "times new roman" , serif; font-size: 12pt;"></span></div>
<div style="background: none; border-image: none; border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.75); font-family: "Source Serif Pro", serif; line-height: 3.2rem; margin: 3.2rem 0px; padding: 0px;">
</div>
<div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;">
<span style="font-family: "times new roman" , serif; font-size: 18pt;">Here
are <u>5</u> marketing lessons learned from Houdini that you can apply to your
entrepreneurial venture (and you don't need to wear a strait-jacket or be
handcuffed to pull off this marketing magic).</span><span style="font-family: "times new roman" , serif; font-size: 12pt;"></span></div>
<div style="background: none; border-image: none; border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.75); font-family: "Source Serif Pro", serif; line-height: 3.2rem; margin: 3.2rem 0px; padding: 0px;">
</div>
<div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;">
<span style="font-family: "times new roman" , serif; font-size: 18pt;">1.
<b><span style="border: 1pt none windowtext; mso-border-alt: none windowtext 0in; padding: 0in;">Always be prepared! </span></b>Houdini always had a plan and was
very resourceful. He was ready for any physical or mental challenge. While
Houdini clearly took chances, he believed in managing risk. He used his
superior intellect to conduct research and obtain knowledge of all situations
and always had the right tools to get the job done. It was not uncommon for
Houdini to spend up to 10 hours a day practicing challenging escapes.</span><span style="font-family: "times new roman" , serif; font-size: 12pt;"></span></div>
<div style="background: none; border-image: none; border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.75); font-family: "Source Serif Pro", serif; line-height: 3.2rem; margin: 3.2rem 0px; padding: 0px;">
</div>
<div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;">
<span style="font-family: "times new roman" , serif; font-size: 18pt;">2.
<b><span style="border: 1pt none windowtext; mso-border-alt: none windowtext 0in; padding: 0in;">Leap-frog the competition</span></b>. Houdini constantly studied
the market and prepared for imitators and new competitors. He dissected
strategies used by his rivals and never let his competitors know what he would
do next. He read every book that was published on magic acquiring a personal
library of more than 5,000 volumes on the subject. While rivals were content to
break out of handcuffs, Houdini did this while suspended upside down from
skyscrapers, on top of bridges or immersed in water.</span><span style="font-family: "times new roman" , serif; font-size: 12pt;"></span></div>
<div style="background: none; border-image: none; border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.75); font-family: "Source Serif Pro", serif; line-height: 3.2rem; margin: 3.2rem 0px; padding: 0px;">
</div>
<div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;">
<span style="font-family: "times new roman" , serif; font-size: 18pt;">3.
<b><span style="border: 1pt none windowtext; mso-border-alt: none windowtext 0in; padding: 0in;">Fine-tune your positioning strategy</span></b>. Houdini understood
the sheer power of a brand name a century before this became all the rage in
marketing. Quality was at the heart of his value proposition, always exceeding
customers' expectations in his live performances. He knew that perception was
reality and had every detail worked out in advance to provide a superior
customer experience. While other magicians made rabbits disappear, Houdini
vanished a full-grown elephant in plain sight. To extend his brand, Houdini
went global and conquered Europe, as well as America.</span><span style="font-family: "times new roman" , serif; font-size: 12pt;"></span></div>
<div style="background: none; border-image: none; border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.75); font-family: "Source Serif Pro", serif; line-height: 3.2rem; margin: 3.2rem 0px; padding: 0px;">
</div>
<div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;">
<span style="font-family: "times new roman" , serif; font-size: 18pt;">4.
<b><span style="border: 1pt none windowtext; mso-border-alt: none windowtext 0in; padding: 0in;">Build a world-class product</span></b>. Houdini carefully guarded
his trade secrets and invested in his product. He diversified to build his
product line and product mix. An advocate of the kaizen approach (continuous
improvement), Houdini regularly sought incredible new offerings while enhancing
his existing repertoire of tried and true stunts. His three-minute water
torture escape from a steel-encased cabinet was world renowned. This was one of
his several signature acts that could not be replicated.</span><span style="font-family: "times new roman" , serif; font-size: 12pt;"></span></div>
<div style="background: none; border-image: none; border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.75); font-family: "Source Serif Pro", serif; line-height: 3.2rem; margin: 3.2rem 0px; padding: 0px;">
</div>
<div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;">
<span style="font-family: "times new roman" , serif; font-size: 18pt;">5.<b><span style="border: 1pt none windowtext; mso-border-alt: none windowtext 0in; padding: 0in;"> Be creative and never stop promoting</span></b>. Houdini was the
consummate sales pro as well as the master showman and publicist. He stimulated
word-of-mouth promotion in every city he visited by promising unimaginable
events that he later successfully executed. Houdini often dropped in on local
police stations during the day in the cities he was visiting and challenged
them to keep him from escaping their most secure chains/restraints, handcuffs,
jail cells, or locks (his arsenal of four hidden keys/picks always got the job
done). The publicity gained from these teaser appearances drew huge interest to
his evening shows. The word spread nationally and internationally in an era
that had no television or internet!</span></div>
<div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;">
<b><span style="border: 1pt none; font-family: "times new roman" , serif; font-size: 18pt; padding: 0in;"><br /></span></b></div>
<div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;">
<span style="font-size: medium;"><b><span style="border: 1pt none; font-family: "times new roman" , serif; padding: 0in;">Art
Weinstein, Ph.D.</span></b><span style="font-family: "times new roman" , serif;">, is a</span><span style="border: 1pt none; font-family: "georgia" , serif; padding: 0in;"> Professor of
Marketing </span><span style="font-family: "times new roman" , serif;">at Nova Southeastern University. His research
interests are customer value, market segmentation and entrepreneurial marketing
strategies. He may be reached at art@nova.edu</span><span style="font-family: "times new roman" , serif;"> </span></span></div><div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;"><span style="font-family: "times new roman" , serif;"><br /></span></div><div style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; vertical-align: baseline;"><span style="font-family: "times new roman" , serif;">* This post is extracted from his article "Houdini's Magical Marketing Strategies" published in the <i>Journal of Strategic Marketing</i> (2020). </span><a href="https://www.tandfonline.com/eprint/JTXAPFJTSYMWMFJVWFXU/full?target=10.1080/0965254X.2020.1825985">Full article: Houdini’s magical marketing strategies (tandfonline.com)</a></div><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<div style="background: none; border-image: none; border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.75); font-family: "Source Serif Pro", serif; line-height: 3.2rem; margin: 3.2rem 0px; padding: 0px;">
</div>
<br />
<div style="background: none; border-image: none; border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.75); font-family: "Source Serif Pro", serif; line-height: 3.2rem; margin: 3.2rem 0px; padding: 0px;">
<b></b><i></i><u></u><sub></sub><sup></sup><strike></strike></div>
</div>
</div>
Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com11tag:blogger.com,1999:blog-5822238157430691095.post-15505926563991244632020-12-25T10:49:00.006-05:002024-01-30T17:15:12.971-05:00Global Customer Satisfaction and Experience Management [25] *<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvQh7m06YhYfnwFjwiRtYc4t3LD7H-ngbpmYkLkuAjaWw9xonHWrvNN_33DdWWNaBLsG-4bcsC32GvQSjzTYWZQYha2cl0LNhjS33iPY9IN-YjPpqWnt1dys5sVOnFUm1b40SDpSx0GKxI/s236/GlobalCustomerSatisfaction.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="180" data-original-width="236" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvQh7m06YhYfnwFjwiRtYc4t3LD7H-ngbpmYkLkuAjaWw9xonHWrvNN_33DdWWNaBLsG-4bcsC32GvQSjzTYWZQYha2cl0LNhjS33iPY9IN-YjPpqWnt1dys5sVOnFUm1b40SDpSx0GKxI/w449-h180/GlobalCustomerSatisfaction.jpg" width="449" /></a></div><br /><span style="font-family: "Times New Roman", serif; font-size: 12pt;">Customer satisfaction (CS) is a key performance
measure for global marketers. Recently, there has been a shift to applying newer
digital metrics. Others contend that customer delight may be a more relevant construct
than customer satisfaction. How has customer satisfaction measurement changed
in the past few years? Does it differ by country and industry sector?</span><p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Many marketers believe that customer
satisfaction is the one customer value metric that matters the most. A large research study (70,000 customers,
1,068 managers, and 97 countries) revealed that managerial perceptions of CS is
not aligned with customer perceptions. Managers overstated CS and loyalty rates
and underestimated the impact of customer complaints on future loyalty (Hult,
et al., 2016). The University of
Michigan’s American Customer Satisfaction Index (ACSI) has found a strong
correlation between CS and firm’s financial performance. Customer satisfaction
analysis can predict and improve financial outcomes such as sales growth, gross
margin, operating cash flow, market share, and shareholder return (Mittal &
Frennea, 2010).<sup> </sup><b><o:p></o:p></b></span></p>
<p class="MsoNormal"><b><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%; mso-bidi-font-style: italic;">Customer Satisfaction and Experience Management
Applications</span></b><b><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;"><o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">HappyOrNot is a Finnish company and
innovator in customer satisfaction research. Their experience shows that if
product/service assessment is made easy, people will readily provide feedback
without the need for consumer incentives. Their core research tool is a
terminal with four large buttons -- dark green/smiley (very happy), light
green/less smiley (happy), light red/frowny (unhappy) and dark red (very
unhappy) – accompanied with a sign asking customers to rate today’s experience
by pushing one of the buttons. This simple premise has been used effectively by
their global clients. This includes: a European gas station chain which
measured managers’ overall performance; a Swedish sofa retailer for
understanding why sales varied greatly throughout the day; medical facilities
that evaluated doctors’ care and treatment; and the San Francisco 49ers
football team to monitor the NFL game-day fan experience. In the latter
application, more than 20,000 responses were recorded during the first game of
the season via 60 devices – this was equivalent to the total feedback the team
received for the entire previous season. The HappyOrNot devices track responses
instantaneously to provide data-based, real-time feedback to organizations
(Owens, 2018).<sup> </sup> <span style="color: red;"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">The Temkin Experience Ratings (headed by Bruce Temkin,
formerly of Forrester) ranks 331 companies in 20 industries based on feedback
from 10,000 U.S. consumers. Three dimensions of customer experience are
evaluated -- success, effort, and emotion. For example, in 2017, the wireless
industry tied for 16<sup>th</sup> place with a 65.5% customer experience rating
which is up 7.5% from 2011. While AT&T matched the industry average (66%),
they did increase their customer experience rating an impressive 10% from 2016
showing a strong commitment to improving customer service. (Their overall rank
in the study was number 224). The top wireless carrier was US Cellular at 71%,
ranked number 137, overall (Temkin Group, 2017).<sup> <o:p></o:p></sup></span></p>
<p class="MsoNormal" style="line-height: normal; text-align: justify;"><b><span style="font-family: "Times New Roman",serif; font-size: 12pt; mso-bidi-theme-font: minor-bidi;">Customer Experience Impacts Business Performance<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt; mso-bidi-theme-font: minor-bidi;">While under-performing firms may survive in the short term, they
will not last long-term unless they change their ways and become truly value creating
for customers. Two global billion-dollar companies clearly illustrate this
point. A transaction-based company learned that customers with the best
experiences spend 140% more than those with the poorest experiences. The second
firm was subscription-based; they found that customers with the best
experiences had a 74% likelihood of renewing for another year versus 43% of
those with the worst experiences. Furthermore, those with the highest customer
experience scores were likely to remain members for six more years (Demere,
2017).</span><sup><span style="font-family: "Times New Roman",serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></sup></p>
<p class="MsoNormal" style="line-height: normal;"><b><span style="font-family: "Times New Roman",serif; font-size: 12pt;">METHODOLOGY<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The “State of Marketing – Fifth Edition”
provides insights and trends on customer satisfaction and related metrics from
4,100 marketing leaders in 17 countries in 13 business sectors (Salesforce
Research, 2018). This report identifies the top 13 marketing metrics used by
global companies and contrasts high- performing from under-performing
organizations. Four metrics – revenue growth (74%), sales effectiveness (64%),
web traffic analytics (61%), and customer satisfaction (60%) were used by 60%
or more of the respondents. Nine other popular metrics – customer retention,
customer acquisition rates, qualified leads, digital engagement, social
analytics, customer referrals, customer acquisition cost, mobile analytics, and
customer lifetime value – were used by 43-59% of the global marketing
organizations. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><b><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Research Questions<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">RQ1. The usage of customer satisfaction as
a marketing metric varies by country <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">RQ2. The usage of customer satisfaction as
a marketing metric varies by business sector<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">RQ3. High-performing organizations are
more likely to track customer satisfaction than low- performing organizations. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">RQ4. The use of customer satisfaction as a
performance measure has declined as global organizations are prioritizing new marketing
metrics.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><b><span style="font-family: "Times New Roman",serif; font-size: 12pt;">RESULTS AND DISCUSSION
<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The following findings are based on the “State
of Marketing” report. Customer satisfaction was rated as a top 5 marketing
metric in 11 countries - Australia, Belgium, Canada, France, Ireland, Mexico, Netherlands,
New Zealand, Singapore, The Nordics, and the United Kingdom. Surprisingly, it
was not ranked as a top 5 metric in 6 major countries - Brazil, Germany, Hong Kong, India, Japan, and
the United States (see Table 1). Hence, RQ1 was supported. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Customer satisfaction was rated as a top 5
marketing metric in 9 business sectors – communications, financial services, healthcare,
hospitality, life sciences, manufacturing, media, transportation, and travel.
It was not ranked as a top 5 metric in automotive, professional services,
retail and consumer services, and various business sectors (see Table 2).
Hence, RQ2 was supported. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">High-performing organizations were 1.4
times more likely to track customer satisfaction than under-performing
organizations (RQ3 was supported). The use of customer satisfaction has
declined as global organizations are prioritizing new marketing metrics.
Overall, CS has slipped from the number 1 marketing metric in 2016 to the
number 4 marketing metric in 2018 by global companies (RQ4 was supported). <o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">CONCLUSIONS AND IMPLICATIONS FOR THEORY
AND PRACTICE<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Undoubtedly, customer satisfaction is a key metric for
global marketing. New digital metrics (e.g., customer acquisition and
retention, mobile analytics, social engagement, and web traffic) have grown in importance in recent years. As a result, CS now shares the marketing
dashboard with other insightful performance measures. Nonetheless, the
effective use of customer satisfaction tracking is a strong differentiator for
how high performing companies outpace their rivals. Since customer satisfaction usage varies by
country and business sector, specialized multi-country, multi-market studies
represent a useful stream of inquiry.
Marketing scholars may emulate the research approach used by John L. Graham and
his team as they studied international sales negotiations in many countries for
more than two decades (e.g., Campbell, Graham, Jolbert, and Meissner, 1988).<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">In addition, customer delight is related to customer
satisfaction and has received much attention in the marketing literature.
Barnes & Krallman (2019) advocate that customer delight is a distinct
marketing construct – i.e., “an emotional state where customer expectations are
exceeded.” Others believe that customer delight is an extreme form of customer
satisfaction (i.e., highly satisfied) or a customer-centric business philosophy
(marketing strategy). It is recommended
that this variable be incorporated into future studies.<o:p></o:p></span></p><p class="MsoNormal"><span style="font-family: inherit; line-height: 107%;"><b style="color: rgba(0, 0, 0, 0.9);"><span style="border: 1pt none; padding: 0in;">Art Weinstein, Ph.D.</span></b><span color="rgba(0, 0, 0, 0.9)">, is a</span><span color="rgba(0, 0, 0, 0.9)"><span style="border: 1pt none; padding: 0in;"><i> </i>Professor of Marketing<i> </i></span></span><span color="rgba(0, 0, 0, 0.9)">at Nova Southeastern University. His research interests are customer value, market segmentation and entrepreneurial marketing strategies. He may be reached at art@nova.edu</span><span color="rgba(0, 0, 0, 0.9)"> </span></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: 12pt; line-height: 107%;"><b>* </b><i>This material was presented at the Academy of Marketing Science, Annual Conference (virtual), December 14, 2020. </i></span></p><p class="MsoNormal"><b><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Key References <o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Barnes, D.C. and Krallman, A. (2019), “Customer
Delight: A Review and Agenda for Research,” <i>Journal of Marketing Theory and Practice</i>,
27 (2), 174-195.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Campbell, N.C.G., Graham, J.L, Jolbert, A. and Meissner, H.G. (1988), “Marketing
Negotiations in France, Germany, the United Kingdom, and the United States,” <a name="_Hlk19955748"><i>Journal of Marketing</i>, 52 (2), 49-62.<o:p></o:p></a></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Demere, N.E. (2017), There’s a Correlation between CX
and Revenue – and Here’s the Data to Back it Up”, <i>Medium.com</i> (January
25). <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Hult, T., et al. (2016), “Do Managers Know What Their
Customers Think and Why?” <i>Journal of the Academy of Marketing Science</i>, 45
(1), 1-18.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif;"><span style="font-size: 12pt;">Mittal,V. and Frennea, C. (2010), </span><i><span style="font-size: 12pt;">Customer
Satisfaction: </span>A Strategic<span style="font-size: 12pt;"> Review and
Guidelines for Managers</span></i><span style="font-size: 12pt;">, Cambridge, MA: Marketing Science Institute, msi.org/.</span><o:p style="font-size: 12pt;"></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Owens, D. (2018), Customer Satisfaction at
the Push of a Button,” <i>New Yorker</i> (February 5).<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Salesforce Research (2018), <i>State of
Marketing – Insights and Trends from over 4,100 Marketing Leaders Worldwide</i>,
Fifth Edition.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Temkin Group (2017), Temkin Ranking,
Temkin Group Q1 2017 Consumer Benchmark Study, temkingroup.com/.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Table 1. Customer Satisfaction as a Marketing Metric –
A Global Perspective *<o:p></o:p></span></b></p>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody><tr>
<td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b><span style="font-family: "Times New Roman",serif;"> </span></b></p>
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b><span style="font-family: "Times New Roman",serif;">Countries<o:p></o:p></span></b></p>
</td>
<td style="border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b><span style="font-family: "Times New Roman",serif;">Respondents/<o:p></o:p></span></b></p>
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b><span style="font-family: "Times New Roman",serif;">Percent
of Sample<o:p></o:p></span></b></p>
</td>
<td style="border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b><span style="font-family: "Times New Roman",serif;">Customer
Satisfaction Rating in Top 5 Metrics<o:p></o:p></span></b></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">Belgium<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;"> 150 / 3.7 %<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;">1<sup>st</sup><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">Singapore<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;"> 150 / 3.7 %<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;">2<sup>nd</sup><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">France, Mexico, Netherlands<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;"> 800/ 19.5%<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;">3<sup>rd</sup><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">The Nordics, United Kingdom/
Ireland<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;"> 450/ 11.0%<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;">4<sup>th</sup><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">Australia/New Zealand, Canada<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;"> 600/ 14.6%<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;">5<sup>th</sup><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">Brazil, Germany, Hong Kong, India
, Japan, United States<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;"> 1,950/ 47.6% <o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;">Not
ranked in top 5<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">17 countries<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;"> 4,100/ 100%<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;"> Varies<o:p></o:p></span></p>
</td>
</tr>
</tbody></table>
<p class="MsoNormal"><span style="color: white; font-family: "Times New Roman",serif; mso-color-alt: windowtext;">*Adapted from State of Marketing 2018</span></p>
<p class="MsoNormal" style="text-align: justify;"><b><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Table 2. Customer
Satisfaction as a Marketing Metric by Global Business Sector *<o:p></o:p></span></b></p>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody><tr>
<td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b><span style="font-family: "Times New Roman",serif;"> </span></b></p>
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b><span style="font-family: "Times New Roman",serif;">Business
Sector <o:p></o:p></span></b></p>
</td>
<td style="border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b><span style="font-family: "Times New Roman",serif;">Respondents/<o:p></o:p></span></b></p>
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b><span style="font-family: "Times New Roman",serif;">Percent
of Sample<o:p></o:p></span></b></p>
</td>
<td style="border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b><span style="font-family: "Times New Roman",serif;">Customer
Satisfaction Rating in Top 5 Metrics<o:p></o:p></span></b></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">Healthcare, Life Sciences<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;"> 320/ 7.8 %<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;">2<sup>nd</sup><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">Financial Services, Hospitality,
Transportation, Travel<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;"> 838/ 20.4%<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;">3<sup>rd</sup><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">Communications, Media,
Manufacturing<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;"> 674/ 16.4%<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;"> 5<sup>th</sup><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">Automotive, Professional
Services, Retail and Consumer Services, Other<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;"> 2,268 /55.3%<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;">Not
ranked in top 5<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td style="border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.8pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;">Various Business Sectors<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;"> 4,100/ 100%<o:p></o:p></span></p>
</td>
<td style="border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 155.85pt;" valign="top" width="208">
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif;"> Varies<o:p></o:p></span></p>
</td>
</tr>
</tbody></table>
<p class="MsoNormal"><span style="color: white; font-family: "Times New Roman",serif; mso-color-alt: windowtext;">*Adapted from State of Marketing 2018 </span><span style="font-family: "Times New Roman",serif;"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif;"> </span></p><p></p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com2tag:blogger.com,1999:blog-5822238157430691095.post-12912140197282644972020-07-25T17:22:00.007-04:002021-09-29T11:47:53.607-04:00Rethinking Customer Experience Management in the Novel Economy by Brian Solis * [24] <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh86RE_6paLIP-dfhQjQmGUGVJ-NpGF55HYYwQq_5Pq8p6LZxU1Ik6b8mE-JrUF1bUbz-UhMhIeQsPWmafuOfaAQ3gp93oweq50mW37IyemtBaEcvmlpvibmN6EYjxjFkrk4RoNRhi7HkX1/s970/how-to-develop-a-covid-19-product-with-long-term-potential.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="450" data-original-width="970" height="231" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh86RE_6paLIP-dfhQjQmGUGVJ-NpGF55HYYwQq_5Pq8p6LZxU1Ik6b8mE-JrUF1bUbz-UhMhIeQsPWmafuOfaAQ3gp93oweq50mW37IyemtBaEcvmlpvibmN6EYjxjFkrk4RoNRhi7HkX1/w500-h231/how-to-develop-a-covid-19-product-with-long-term-potential.jpg" width="500" /></a></div><div><br /></div><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">New
research shows that brands that embrace innovation and agility with an aim on
humanizing the customer’s experience, outperform their peers, especially in a
global pandemic.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">COVID-19
has disrupted markets and lives at levels not seen by many. As cases around the
world soared, executives were stunned, unprepared for the rapid shifts that
would test even the most experienced of experts. The disruption wreaked by this
pandemic was swift, unprecedented, and underestimated. While it largely reset
the world we once knew, the term “new normal” became a staple in how we defined
these novel times. But the impact on, and shifts in, markets and human
behaviors were far from normal and definitely elusive of offering insights
necessary to recognize any sense of normalcy or clear path forward.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Businesses
that don’t take the time to understand what’s changing and why, as times and
trends continue to evolve, will miss their opportunity to earn relevance and
thrive in this new world. The most meaningful way forward is to place the
customer at the center of your vision and decision-making in two distinct
strategic phases: one with-COVID and the other, post-COVID.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Like
the Novel Coronavirus, businesses are operating in uncharted territory. I refer
to these times as the Novel Economy, a socioeconomic period that is, just like
its namesake, new and unusual. Brands don’t have access to a disruption vaccine
nor do executives possess a playbook for responding to and thriving in a global
pandemic. At the same time, decision-makers are without best practices and case
studies to skillfully guide their actions. The most direct source of insights
resides in the signals and inputs customers willfully share with those who are
willing to pay attention. What executives don’t want to do right now is make
assumptions about customer needs and predilections. This was clear in the
unanimous customer response to seemingly timed marketing campaigns in the early
days of COVID-19. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">This
isn’t a time to upset anyone. It is a time to be a light in the lives of
consumers, to find ways to add value or remove friction, especially when
customers feel overwhelmed and anxious by the impact of the pandemic in their
lives. I call this #IgniteMoments. It’s an opportunity to humanize and
enliven <i>touch</i>points, to touch the customer in a novel and
refreshing way that creates memorable experiences.</span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span style="color: #333333; font-family: "times new roman", serif; font-size: 18pt; mso-fareast-font-family: "Times New Roman";">The digital transformation of legacy marketing to modern,
personal customer experiences</span></b></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">With
a global pandemic still raging, marketers must operate with compassion and
attentiveness led by a “with COVID” mindset. The existing brand style guide and
marketing playbooks do not account for these times nor the speed and breadth at
which they’re operating. Traditional marketing will no longer have the same
effect moving forward. If anything, it will negatively affect customer relationships
rather than enhance them. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">In
its research, Salesforce learned that 69% of marketers say that today’s
traditional marketing roles limit customer engagement — up from 37% in 2018.
This sets the stage for more meaningful, personalized engagement now and also
in a “post COVID” world aka the next normal. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">As
such, customer-centricity, whether you call it CX or marketing or digital
transformation, will be rooted in empathy, purpose, and compassion. This means
that the next generation of style guides and playbooks need development in
real-time.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span style="color: #333333; font-family: "times new roman", serif; font-size: 18pt; mso-fareast-font-family: "Times New Roman";">COVID-19 accelerates digital customer behaviors <i>and</i> amplifies
importance of empathetic experiences<o:p></o:p></span></b></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">A
significant majority of customers are more than ready for brand humanization.
According to Salesforce research, 84% of customers say the experience a company
provides is as important as its products and services — up from 80% in </span><a href="https://www.salesforce.com/form/pdf/state-of-the-connected-customer-3rd-edition/" target="_blank" title="https://www.salesforce.com/form/pdf/state-of-the-connected-customer-3rd-edition/"><span style="color: #003891; font-family: georgia, serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">2018</span></a><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">. This means that
marketing is evolving from a classical, one-to-many approach, toward delivering
customer experiences that connect, build trust, and guide mutually beneficial
outcomes. </span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">In
time of a global pandemic, when emotions are running high, experience is
personal. That’s what an experience is after all, an emotional, mental and
physical reaction to a moment. This is why CX leaders define the customer’s
experience as the sum of all experiences a customer has with their business.
Each touchpoint counts in their own right, but also are keystones to the
bridges that connect entire experiences together. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span style="color: #333333; font-family: "times new roman", serif; font-size: 18pt; mso-fareast-font-family: "Times New Roman";">Marketing transformation takes on a new sense of urgency,
requiring true 360 customer understanding and engagement<o:p></o:p></span></b></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">It’s
critical for marketers to have a real-time 360 view and understanding of a
customer’s full journey, at every stage, from discovery to engagement to
retention and loyalty to advocacy. Sixty-nine percent of customers are
reporting that they <i>expect</i> connected experiences. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
</p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Legacy
roles that only focus on stages of the customer journey, in isolation, without
coordinating with those who manage other connected touchpoints, will lose favor
with customers. By design, the brand message and the experiences they deliver
will be disconnected and likely confusing. Said another way, if it’s not
complementary, intuitive, and additive, individual experiences are likely
taking away from its total potential. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span style="color: #333333; font-family: "times new roman", serif; font-size: 18pt; mso-fareast-font-family: "Times New Roman";">Data-driven empathy helps marketers deliver personalized and
meaningful customer experiences as customer expectations and preferences evolve</span></b></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Customers
are changing as a result of COVID-19 and the emotions and health advisories
guiding their well-being. Shelter-in-place, physical distancing, concern for
their own health and well-being, as well as for their loved ones, is
accelerating digital-first behaviors in every touchpoint across their
journey. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">During
these times of disruption, data-driven empathy enables empathetic marketing,
customer engagement, and genuine experiences. As customers’ circumstances,
needs, and sentiments evolve rapidly, accumulating a clear understanding
becomes mission critical for AI-powered platforms and CX and marketing
strategies. Marketers are turning to an ever-increasing number of digital
signals and data sources to assess transactional data, declared interests and
preferences, known digital IDs, offline IDs, second-party data, inferred
interests and preferences, and more. In fact, progressive marketers plan to use
60% more data this year than the overall industry average. Combined with AI,
marketers can achieve personalization across the journey at scale by distilling
insights from data and guiding teams on how best to take action.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">The
experiences that customers have in each touchpoint must also not only meet
their needs, but also strive to surpass their expectations. High performance
marketers report that they are increasingly turning to a sophisticated array of
modern digital tools and intelligent, connected platforms. Artificial intelligence
(AI), for example is helping marketers learn from real-time customer activity
and corresponding data signals to personalize engagement with the right context
at the right time in the right channel on the right device. Eighty-four percent
of marketers report using AI, which is up from 29% in 2018 (an increase of 186%
in two years).</span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span style="color: #333333; font-family: "times new roman", serif; font-size: 18pt; mso-fareast-font-family: "Times New Roman";">Customer-centric metrics matter, count what counts to the brand
and to the customer’s experience<o:p></o:p></span></b></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt;">CX
is dependent on the “customer’s experience and as such, their experience, hence
the apostrophe, becomes a key CPI (customer performance indicator). New and
upgraded metrics, beyond those of vanity and general engagement, need to
demonstrate performance and also customer-centered benefits. </span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">High
performance marketers (72%), for example, are already analyzing performance in
real time, versus 49% of underperformers. And, fewer than half (48%) of
marketing organizations today track important experience metrics such as
customer lifetime value (CLV/LTV). There’s plenty of room for growth
here.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Customer-centric
metrics correlate to business performance. Experienced marketers are being more
strategic about ways to invest in customer experiences to showcase customer
satisfaction and retention in addition to complementing customer acquisition
strategies. By measuring the customer’s real-time and aggregated experience,
marketers can learn exactly how and where to improve them, in times with-COVID
and post-COVID markets.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span style="color: #333333; font-family: "times new roman", serif; font-size: 18pt; mso-fareast-font-family: "Times New Roman";">Innovation is the ability to see change as an opportunity<o:p></o:p></span></b></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Innovation
is defined as many things. But at its core, innovation is about creating new
value that didn’t exist before. This is different than iteration, which
incrementally improves existing value. Both are important.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">During
this pandemic, and even after there’s universal treatment, a vaccine, we
establish herd immunity, or all of the above, the customer’s experience is not
only an ongoing priority, but also a primary driver of innovation. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Following
the series of disruptive events, shutdowns, impacts on public health and global
economies, and waves of setbacks, customer preferences and behaviors evolved
rapidly and will continue to evolve as the Novel Economy unfolds. Even as the
world starts to open up as it learns to co-exist with a novel coronavirus and
even after its eradication, CX must always be human-centered to genuinely and
effectively engage customers. The same is true for CX innovation. Research
found that 76% of high performers say they do a great job at innovating
marketing technology, tactics, and strategies, versus 47% of
underperformers. </span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><b><span style="color: #333333; font-family: "times new roman", serif; font-size: 18pt; mso-fareast-font-family: "Times New Roman";">Stay alive in an era of disruption, aim to survive in this interim
normal, and learn to thrive in the Novel Economy<o:p></o:p></span></b></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">To
thrive in the Novel Economy, during and following COVID-19 disruption, it’s
imperative to unlearn BC (legacy) mindsets, learn from the high performers, and
most importantly, learn from your customers. Furthermore, embrace a growth
mindset and an empathetic <a href="https://edgeperspectives.typepad.com/edge_perspectives/2018/11/mindset-and-heartset.html" target="_blank" title="https://edgeperspectives.typepad.com/edge_perspectives/2018/11/mindset-and-heartset.html"><span style="color: #003891; font-size: 12pt;">heartset</span></a> to effectively…<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; margin-left: 1in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">1.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Shift
from classical marketing to a relentless focus on the customer experience.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; margin-left: 1in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">2.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Embrace
an ethos and commitment to helpfulness, relevancy, and trustworthiness.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; margin-left: 1in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">3.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Create
a culture of innovation in parallel with the continual practice of iteration.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; margin-left: 1in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">4.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Also
create a culture of data-driven empathy.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; margin-left: 1in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">5.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Empower
and incentivize employees to do the right thing while also learning the next
thing.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; margin-left: 1in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">6.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Personalize
all forms of engagement and use modern technology to humanize experiences.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; margin-left: 1in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">7.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Make
the offline and online customer journey integrated, intuitive, productive,
true, and even joyful.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
</p><p class="MsoNormal" style="line-height: 22.5pt; margin-left: 1in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;">8.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: georgia, serif; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Transform
touchpoints into #IgniteMoments to articulate and project what your brand
stands for and empower mutually beneficial, memorable experiences; values beget
value.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 22.5pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">* <b>Brian Solis</b> studies disruptive technology and its impact on business and society. This post is an excerpt from his recent article in Forbes.com. He may be reached at brian@briansolis.com and @briansolis (Twitter). </p>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com2tag:blogger.com,1999:blog-5822238157430691095.post-36003439531923020882020-05-15T18:22:00.001-04:002021-09-29T11:47:39.851-04:00The Value of a Value Proposition [23]<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjc-IHZ98nKHj7xc2_tF-8FLUIA_ICsZ7ZFYJt08GK9zxfObJZ0hShMqWH4tfdQJfKruFeO9Pby-lQL3bC41fcsbdSlnB1PwHVYJ6gpFe7UCKCNMQ4AKwRWbUt34vV8fZqh0sNkTSDeEAHw/s1600/VP+-+OIP2HUYB3DK.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="172" data-original-width="203" height="338" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjc-IHZ98nKHj7xc2_tF-8FLUIA_ICsZ7ZFYJt08GK9zxfObJZ0hShMqWH4tfdQJfKruFeO9Pby-lQL3bC41fcsbdSlnB1PwHVYJ6gpFe7UCKCNMQ4AKwRWbUt34vV8fZqh0sNkTSDeEAHw/s400/VP+-+OIP2HUYB3DK.jpg" width="400" /></a></div>
</div>
<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
One of the most critical challenges for organizations is to differentiate themselves from competitors. It is easy to be like everyone else but great companies have their own identities and carefully conceived value propositions. <span style="background-color: yellow;">Realize that different isn’t always better, but better is always different!</span></div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span>
<br />
<div style="border-image: none; border: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin: 0px 0px 1.2em; outline: 0px; padding: 0px; text-align: left; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
<i><u>Think about the following 5 questions (and answers)</u></i></div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span><i></i>
<br />
<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
<b style="box-sizing: border-box; font-weight: bold;">1. What is a customer value proposition (CVP)? How does it differ from a mission and vision, slogan, or positioning? </b></div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span>
<br />
<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
A value proposition is a brief but powerful statement of overall business strategy, such as Lexus’ ‘passionate pursuit of perfection.’ It is the company’s promise to the customer. It should be clear, concise, comprehensive and company-specific. A well-designed CVP is a strategic business tool that considers customer needs and wants, offerings, pricing, promotion, channels, and a competitive advantage via people, processes and technology. Mission statements explain what the business is doing today while vision statements are forward-thinking. Slogans are creative advertising phrases that capture attention. Positioning may be product- or image-based and relate to designing and delivering value to target markets.</div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span>
<br />
<div style="-webkit-text-stroke-width: 0px; border-image: none; border: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; letter-spacing: normal; line-height: 1.5em; margin: 0px 0px 1.2em; orphans: 2; outline: 0px; padding: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
<b>2. How about some great examples of customer value propositions? </b></div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span><b></b>
<br />
<ul style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; list-style-image: none; list-style-position: outside; list-style-type: disc; margin-bottom: 1.5em; margin-left: 3em; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
<li style="border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; font-family: inherit; font-size: 100%; font-style: inherit; font-weight: inherit; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; vertical-align: baseline;">Amazon.com and you're done</li>
<li style="border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; font-family: inherit; font-size: 100%; font-style: inherit; font-weight: inherit; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; vertical-align: baseline;">Citrix Systems - work anywhere and on any device</li>
<li style="border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; font-family: inherit; font-size: 100%; font-style: inherit; font-weight: inherit; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; vertical-align: baseline;">FedEx - when it absolutely, positively has to get there overnight</li>
<li style="border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; font-family: inherit; font-size: 100%; font-style: inherit; font-weight: inherit; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; vertical-align: baseline;">Gillette - the best a man can get</li>
<li style="border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; font-family: inherit; font-size: 100%; font-style: inherit; font-weight: inherit; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; vertical-align: baseline;">Intel inside</li>
<li style="border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; font-family: inherit; font-size: 100%; font-style: inherit; font-weight: inherit; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; vertical-align: baseline;">Office Depot - taking care of business</li>
<li style="border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; font-family: inherit; font-size: 100%; font-style: inherit; font-weight: inherit; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; vertical-align: baseline;">Target - expect more, pay less</li>
<li style="border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; font-family: inherit; font-size: 100%; font-style: inherit; font-weight: inherit; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; vertical-align: baseline;"> Uber - the smartest way to get around</li>
<li style="border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; font-family: inherit; font-size: 100%; font-style: inherit; font-weight: inherit; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; vertical-align: baseline;"> Visa - it’s everywhere you want to be. </li>
</ul>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span>
<br />
<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
<b style="box-sizing: border-box; font-weight: bold;">3. How should managers build a customer value proposition?</b></div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span>
<br />
<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
Customer value consists of four core components: <i>service, quality, image and price.</i> These elements provide the basis of an organization’s value proposition. The <i>S-Q-I-P</i> diamond can be used to create value for customers, establish a solid business philosophy for the organization, guide strategic decisions and, ultimately, affect business performance. The vertical axis on the diamond — service and quality — represents the backbone of the firm’s offerings, while the horizontal axis — image and price — provide signaling/communicating cues to the target market. The key is to select one or two dimensions to dominate and stay competitive in the other areas. Examples include ‘where shopping is a pleasure’ for Publix’s service; ‘solutions for a small planet’ for IBM’s quality; ‘what can brown can do for you’ for UPS’ image; and ‘always low prices’ for Walmart’s pricing. </div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span>
<br />
<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
<b style="box-sizing: border-box; font-weight: bold;">4. How does a customer value proposition relate to competitive strategy?</b></div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span>
<br />
<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
According to Treacy & Wiersema’s influential book, ‘The Discipline of Market Leaders,’ companies can excel by practicing one of three business strategies: best product like Nike’s product leadership, best deal like Target’s operational excellence, or best friend like Nordstrom’s customer intimacy. Innovation, process efficiency, low cost and relationship building are key in implementing value-based strategies.</div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span>
<br />
<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
<b style="box-sizing: border-box; font-weight: bold;">5. How can organizations improve customer value propositions?</b></div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span>
<br />
<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
Current CVPs can be enhanced via innovation and adding value. Think about offering legendary customer service like Ritz-Carlton, cutting-edge products like Apple, unique customer experiences like the Virgin Group or pricing innovations like eBay. There are many ways to add value, such as adding benefits, branding, breaking ‘accepted’ industry rules, customization, dominant merchandise<br />
assortments, frequency marketing programs, hassle reduction, internet options, segmented marketing, solving problems, supply chain management or technological superiority. <br />
<br />
<em style="background-attachment: scroll; background-clip: border-box; background-image: none; background-origin: padding-box; background-position: 0% 0%; background-repeat: repeat; background-size: auto; border: 0px none currentcolor; box-sizing: inherit; color: black; font-family: arial, helvetica, sans-serif; font-size: large; margin: 0px; outline-style: none; outline-width: 0px; padding: 0px; vertical-align: baseline;">This blog post is the 11th in a series extracted from Superior Customer Value – Finding and Keeping Customers in the Now Economy, 4th Ed. (2019, Routledge Publishing/ Taylor & Francis). For further information, contact Art Weinstein at artweinstein9@gmail.com , 954-309-0901, </em><a href="http://www.artweinstein.com/" rel="nofollow noopener" style="background-attachment: scroll; background-clip: border-box; background-image: none; background-origin: padding-box; background-position: 0% 0%; background-repeat: repeat; background-size: auto; border: 0px none currentcolor; box-sizing: inherit; color: #665ed0; cursor: pointer; font-family: arial, helvetica, sans-serif; font-size: large; margin: 0px; overflow-wrap: break-word; padding: 0px; text-decoration-line: none; vertical-align: baseline;" target="_blank"><em style="background-attachment: scroll; background-clip: border-box; background-image: none; background-origin: padding-box; background-position: 0% 0%; background-repeat: repeat; background-size: auto; border: 0px none currentcolor; box-sizing: inherit; margin: 0px; outline-style: none; outline-width: 0px; padding: 0px; vertical-align: baseline;"><u style="box-sizing: inherit;">www.artweinstein.com</u></em></a><em style="background-attachment: scroll; background-clip: border-box; background-image: none; background-origin: padding-box; background-position: 0% 0%; background-repeat: repeat; background-size: auto; border: 0px none currentcolor; box-sizing: inherit; color: black; font-family: arial, helvetica, sans-serif; font-size: large; margin: 0px; outline-style: none; outline-width: 0px; padding: 0px; vertical-align: baseline;"> . </em></div>
<span style="background-color: white; color: #404040; display: inline; float: none; font-family: inherit; font-size: 100%; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
</span>
<br />
<div style="-webkit-text-stroke-width: 0px; border-bottom-color: currentColor; border-bottom-style: none; border-bottom-width: 0px; border-image-outset: 0; border-image-repeat: stretch; border-image-slice: 100%; border-image-source: none; border-image-width: 1; border-left-color: currentColor; border-left-style: none; border-left-width: 0px; border-right-color: currentColor; border-right-style: none; border-right-width: 0px; border-top-color: currentColor; border-top-style: none; border-top-width: 0px; box-sizing: border-box; color: #404040; font-family: inherit; font-size: 1em; font-style: inherit; font-variant: normal; font-weight: inherit; letter-spacing: normal; line-height: 1.5em; margin-bottom: 1.2em; margin-left: 0px; margin-right: 0px; margin-top: 0px; orphans: 2; outline-color: invert; outline-style: none; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; word-spacing: 0px;">
<br /></div>
<b></b><i></i><u></u><sub></sub><sup></sup><strike></strike><br />Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com0tag:blogger.com,1999:blog-5822238157430691095.post-91307690900720645632020-05-15T18:13:00.004-04:002021-09-29T11:47:25.622-04:00The Value of Investing in Customer Value Management by Laura Patterson * [22]<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="wp-caption alignleft" style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; margin-left: 1em; margin-right: 1em; margin-top: 10px; max-width: 100%; padding: 0px; width: 310px;">
<div class="wp-caption-text" style="box-sizing: border-box; color: #999999; line-height: 16px; padding: 5px 15px; text-align: right;"><br /></div></div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; font-size: 16px; margin-bottom: 12px;">My very first business job was in the financial services industry and my title was customer relationship manager. This was long before the emergence of customer relationship management (CRM) tools. My boss at the time was four decades ahead of the mainstream thinking articulated by Phil Kotler in his 2017 article, Customer Value Management - "a company’s job is to create superior customer value in the mind of the customer.” Looking back, I’d say a more accurate title would have been customer value manager because my job was less about the customer experience and increasing customer satisfaction and more about employing data to identify customers from whom we could create and extract more value. This is the focus of customer value management.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; font-size: 16px; margin-bottom: 12px;">
<a class="external gtrackexternal" href="https://www.amazon.com/Customer-Value-Management-Optimizing-Marketing/dp/0982387741" style="background-color: transparent; box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none; word-break: break-word;" target="_blank">Peter C. Verhoef and Katherine N. Lemon</a>, define customer value management (CVM), as the optimization of the value of a company’s customer base. CVM expands on customer relationship management. CRM focuses on how a company manages the interaction with current and potential customers with an emphasis on developing long-term customer retention. Relationship management emphasizes satisfaction and uses measures such as NPS or <a class="external gtrackexternal" href="https://visionedgemarketing.com/customer-engagement-measure-it/" style="background-color: transparent; box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none; word-break: break-word;" target="_blank">Gallup’s customer engagement metric</a>. CVM focuses on aspects of the relationship such as commitment and trust and seeks to use and analyze customer data explicitly to increase customer value. Gautam Mahajan, president of the Customer Value Foundation reinforces this idea when he says, “CVM focuses on creating value for customers.”</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; font-size: 16px; margin-bottom: 12px;">
Many companies are embracing and investing in customer value management. To achieve CVM, you must know what customers value, which can vary greatly among customer segments. You must discern what customers perceive as important, why they buy, why they prefer one company or product over another, and what benefits they believe the product or service delivers. An example of trying to surmise customer values can be illustrated in the traditional car purchase. If you’ve ever been in a conversation with a car salesperson, you may have heard this common question: “Which is more important to you, how much you pay a month or the loan rate?” Different customer segments value different benefits – such as return policies, warranties, service level, and as this example shows, financing options.<br />
<span style="font-family: merriweather, georgia, serif; font-size: large;"><br /></span>
<span style="font-family: merriweather, georgia, serif; font-size: large;"><b>Creating a Metric to Determine Customer Value</b></span></div>
<div>
<span style="box-sizing: border-box;"></span><br />
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; font-size: 16px; margin-bottom: 12px;">
<span style="box-sizing: border-box;">Customer value reflects the economic value of the customer relationship to your organization. To create and extract customer value you need to know what is truly important to the customer in the buying process, the relative importance of price and benefits, and the associated attributes in relation to the value you provide and the value you derive.</span></div>
<span style="box-sizing: border-box;">
</span>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; font-size: 16px; margin-bottom: 12px;">
<span style="box-sizing: border-box;">Customer value management relies heavily on data and analytics to build long-term relationships and expand share of wallet without increasing the cost of acquisition and cost to serve. You will need data related to value attributes, tenure, share of wallet, recency and frequency of purchase, cost to acquire, and cost to serve. Fortunately, advances in data management and analytics are making it possible for organizations of all sizes to cost-effectively acquire this data and employ it to measure customer value. To support this work, we’d recommend you classify your customer data into four different categories:</span></div>
<span style="box-sizing: border-box;">
<ol style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; font-size: 16px; margin-bottom: 10px; margin-top: 0px;">
<li style="box-sizing: border-box; margin-bottom: 5px;">Customer firmographic data (name, company, title, contact info, location info, industry, initial date of acquisition, etc.)</li>
<li style="box-sizing: border-box; margin-bottom: 5px;">Customer transaction data (recent purchases, frequency of purchases, products purchased, quantities, pricing info, etc.)</li>
<li style="box-sizing: border-box; margin-bottom: 5px;">Customer interaction/engagement data (behavioral data such as touches, channels, service tickets, content consumption info, etc.)</li>
<li style="box-sizing: border-box; margin-bottom: 5px;">Customer financial data (cost to acquire, lifetime value, profitability data, rate of consumption, etc.)</li>
</ol>
<div><br /></div>
<div>
<span style="background-color: white; color: #333333; font-family: lato, sans-serif; font-size: 16px;">As you gain insight into what customers value, you can use this data to determine which customers are of the most value to your organization. Use the data to evaluate customers in terms of:</span></div>
<div>
<span style="background-color: white; color: #333333; font-family: lato, sans-serif; font-size: 16px;"><br /></span></div>
<div>
<ul style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; font-size: 16px; margin-bottom: 10px; margin-top: 0px;">
<li style="box-sizing: border-box; margin-bottom: 5px;">lifetime value</li>
<li style="box-sizing: border-box; margin-bottom: 5px;">transaction value</li>
<li style="box-sizing: border-box; margin-bottom: 5px;">referral value</li>
<li style="box-sizing: border-box; margin-bottom: 5px;">influencer value</li>
<li style="box-sizing: border-box; margin-bottom: 5px;">market share contribution</li>
<li style="box-sizing: border-box; margin-bottom: 5px;">customer profitability</li>
</ul>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; font-size: 16px; margin-bottom: 12px;">
This type of analysis enables you to identify and decide which customers to invest in and how to allocate your budget across customer segments. You can also use this analysis to identify what services and capabilities your most profitable customers leverage. It will also help you reap the value of your investment in CVM. Armed with the data and analysis you can create a customer value metric. To create a customer value metric, check out this companion post on a <a class="external gtrackexternal" href="https://visionedgemarketing.com/three-variables-to-create-a-customer-value-metric/" style="background-color: transparent; box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none; word-break: break-word;" target="_blank">measure that provide insight into customer value</a>. If you’re just getting started, a book I often recommend on the topic is Bradley Gales’ <a class="external gtrackexternal" href="https://www.amazon.com/Managing-Customer-Value-Creating-Customers/dp/1451612923" style="background-color: transparent; box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none; word-break: break-word;" target="_blank"><em style="box-sizing: border-box;">Managing Customer Value</em></a>.</div>
</div>
<div>
<h2 style="background-color: white; box-sizing: border-box; color: #333333; font-family: merriweather, georgia, serif; line-height: 1.33; margin-bottom: 15px; margin-top: 30px;">
<span style="box-sizing: border-box;"><span style="font-size: large;">CVM as a Competitive Advantage</span></span></h2>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; font-size: 16px; margin-bottom: 12px;">
Every business must create value for customers to survive and thrive. When you see creating customer value strategically, you can develop the infrastructure, culture, strategies, and programs that optimize every opportunity to positively impact how customers perceive the value offered.</div>
We can turn to three points emphasized by Art Weinstein in his book, <em style="box-sizing: border-box;">Superior Customer Value</em>, to ensure a company builds a competitive advantage in a climate where value reigns supreme:</div>
<div>
<br />
<ol style="background-color: white; box-sizing: border-box; color: #333333; font-family: lato, sans-serif; font-size: 16px; margin-bottom: 10px; margin-top: 0px;">
<li style="box-sizing: border-box; margin-bottom: 5px;">Design strategies that provide superior customer value.</li>
<li style="box-sizing: border-box; margin-bottom: 5px;">Focus on excellence. Customers will not pay more than a product is worth.</li>
<li style="box-sizing: border-box; margin-bottom: 5px;">Build a customer-centric culture throughout your organization and mandate providing outstanding customer value.</li>
<div class="wp-caption alignleft" style="box-sizing: border-box; float: left; margin: 10px 20px 0px 0px; max-width: 100%; padding: 0px; width: 310px;"><br />
<div class="wp-caption-text" style="box-sizing: border-box; color: #999999; font-size: 11px; line-height: 16px; padding: 5px 15px;">
The ability to determine and extract customer value is a competitive advantage.</div>
</div>
<div style="box-sizing: border-box; margin-bottom: 12px;">
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_vJfpyBY8dqs-kpEDJz1MbGvLFKV-80c5lGiJUMIiJGB4z2PhjmZN1nigV_n1UqNADUfl2Vu7oAFhI7fI_HGFssddzlMy1Gy5YsUgUGn8gEkcq6GFDLTlwweqf2olWzhbk79yrfQJwLl0/s900/investment-performance-bar-chart-with-value-magnified.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="600" data-original-width="900" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_vJfpyBY8dqs-kpEDJz1MbGvLFKV-80c5lGiJUMIiJGB4z2PhjmZN1nigV_n1UqNADUfl2Vu7oAFhI7fI_HGFssddzlMy1Gy5YsUgUGn8gEkcq6GFDLTlwweqf2olWzhbk79yrfQJwLl0/s320/investment-performance-bar-chart-with-value-magnified.jpg" width="320" /></a></div><div style="box-sizing: border-box; margin-bottom: 12px;"><br /></div>Today’s customers are smart and have access to more information and choices than ever before. In such a market, your company must create maximum value and solve relevant problems. The ability to determine and extract customer value is a competitive advantage that reflects the degree to which your customers perceive your organization as more valuable than the alternatives. CVM helps you determine whether your brand is important to customers and what about it they value most. While customer value management requires a bit more effort than customer relationship management, it provides excellent guidance as to who and what to invest in.</div>
<div style="box-sizing: border-box; margin-bottom: 12px;">
Customer value is not something you can create in one day. To sustain it, you need to combine service quality, product quality, and innovation into a strategy.</div>
<div style="box-sizing: border-box; margin-bottom: 12px;">
*<b> Laura Patterson</b> is a marketing practitioner, consultant, and speaker. Contact her at laurap@visionedgemarketing.com</div>
</ol>
</div>
<div>
<br /></div>
</span></div>
<div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div>Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com1tag:blogger.com,1999:blog-5822238157430691095.post-5595548119307718622020-02-20T11:51:00.001-05:002021-09-29T11:47:14.061-04:00Misconceptions About Store Brands by Selima Ben Mrad * [21]<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJWtdGj1vo-B4grpLE5qAtFmn-qM5xNX4yAjhYktIMxmcaPbePHeMSnis6X8sisscWbyHvlgJm-i8v5haFk-IRX6M_jYAsvqiedzKyJTmMRFQqjf_3st4PAyA89qwR5mCApYGUlt1gmme2/s1600/Private-Label12.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1024" data-original-width="1536" height="425" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJWtdGj1vo-B4grpLE5qAtFmn-qM5xNX4yAjhYktIMxmcaPbePHeMSnis6X8sisscWbyHvlgJm-i8v5haFk-IRX6M_jYAsvqiedzKyJTmMRFQqjf_3st4PAyA89qwR5mCApYGUlt1gmme2/s640/Private-Label12.jpg" width="640" /></a></div>
<div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot; font-size: 13px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; margin-bottom: 0.3em; margin-left: 0px; margin-right: 0px; margin-top: 0.6em; orphans: 2; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
National or manufacturer brands have been for a while the choice of consumers and a signal for quality. Consumers usually trust manufacturers’ brands and associate them with a certain level of quality. However, this is not the case for store brands. US consumers still lack the knowledge about private label and avoid buying them unless the product does not generate any risk. Private-label brand success is strongest in commodity driven, high-purchase categories and products where consumers perceive very little differentiation (Nielsen 2014) . While store brands or private label market share keeps growing in many European countries, this is not the case in the United States. Indeed, the market share in several European countries is more than 30% with UK , Spain, and Switzerland having the highest market share among European countries. (PLMA’s International Private Label, 2017). The United States private label market share has been lower than its counterparts in Europe and it is only lately that this trend has been changing. Today, the market share of store brands has reached nearly 25% of unit sales in the U.S. and is expanding faster than national brands (PLMA 2017).</div>
<div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot; font-size: 13px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; margin-bottom: 0.3em; margin-left: 0px; margin-right: 0px; margin-top: 0.6em; orphans: 2; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
<strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">So What is Private Brand or Store Brand?</strong><br />
<strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><br /></strong>
Private brand is any brand that comprises the retailers’ name or any name created by the retailer (PLMA 2017). Target, Walmart, CVS Pharmacy, and Walgreens market their own brands. For instance, Target has a store brand “Up & Up” in their household product line that is much diversified. Some retailers, such as Walmart, see private label as part of the road to their future success. Indeed, Doug McMillon, president and CEO of Walmart, when speaking at the Bank of America Merrill Lynch 2017 Consumer & Retail Technology Conference in New York, stated that “The widespread availability of name-brand products online will compress the margins of private brands over time.” He also added that "having a private brand from a margin mix point of view has always been important, but it is even more important now.” Therefore, it is important to educate customers about private brands. Indeed there are some misconceptions about store brands:<br />
<br />
1. They are of lower quality than manufacturer brands<br />
2. They are manufactured by the retailer<br />
3. There is only one category of store brands<br />
4. They have low prices<br />
5. They generate high risk</div>
<div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot; font-size: 13px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; margin-bottom: 0.3em; margin-left: 0px; margin-right: 0px; margin-top: 0.6em; orphans: 2; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
The truth about store brands is that they are indeed similar to manufacturers’ brands and sometimes even of better quality. Here are some clarifications about store brands:</div>
<div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot; font-size: 13px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; margin-bottom: 0.3em; margin-left: 0px; margin-right: 0px; margin-top: 0.6em; orphans: 2; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
<strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Who Manufactures Store Brands?</strong><br />
<strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><br /></strong>
According to PLMA (2017), there are different ways that store brands are manufactured. They can be produced by:<br />
<br />
• Large manufacturers who produce both their own brands and private label products.<br />
• Small and medium size manufacturers that specialize in particular product lines and concentrate on producing private label almost exclusively.<br />
• Major retailers and wholesalers that operate their own manufacturing plants and provide private label products for their own stores.</div>
<div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot; font-size: 13px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; margin-bottom: 0.3em; margin-left: 0px; margin-right: 0px; margin-top: 0.6em; orphans: 2; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
<strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Categories of Store Brands</strong><br />
<strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><br /></strong>
Private label brands are classified into generic brands, standard brands or copycat brands or flagship brands, premium brands, and value innovators.<br />
<br />
1. Generic brands are usually cheap, inferior products. Usually they do not carry the name of the retailer on the package , but simply the name of the product, such as ‘milk’ or ‘butter’, in plain script . They usually use very cheap packaging .<br />
2. Copycats or flagship brands or standard brands. They usually carry the name of the retailer and tend to copy the main manufacturer within that category, they have packaging and price points very similar to the main manufacturer.<br />
3. Premium store brands are usually of higher quality than the manufacturer brand and compete directly against the manufacturer’s brand. Kumar and Steenkamp (2007) define two types of premium brands: the premium private label which is exclusive, higher in price, and superior in quality to competing brands; and the premium-lite store brand which is promoted as being equal or better in quality to the competing brands, while being cheaper.<br />
4. The fourth category is value innovators which consists mainly of retailers reducing costs and processes to simplify the production and marketing of product ranges, so that a good quality product can be offered at very low prices. They are usually limited in number.</div>
<div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot; font-size: 13px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; margin-bottom: 0.3em; margin-left: 0px; margin-right: 0px; margin-top: 0.6em; orphans: 2; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
<strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Benefits of Store Brands</strong><br />
<br />
Store brands provide retailers with several key benefits. It gives them exclusivity to offer their customers special products, which make consumers loyal to them. In addition, store brands create a unique brand image and generate more retailer brand recall and recognition. Finally, store brands increase retailers’ revenues and have higher profit margins.</div>
<div style="-webkit-text-stroke-width: 0px; color: black; font-family: &quot; font-size: 13px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; margin-bottom: 0.3em; margin-left: 0px; margin-right: 0px; margin-top: 0.6em; orphans: 2; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
<strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Attitude Towards Store Brands</strong><br />
<br />
The positive or negative attitude towards store brands has been attributed to several causes. Consumers evaluate store brands based on price/value of those brands, the products’ attributes, on the perceived risk and on their own self-perception (smart shopper). Consumers who buy store brands realize that when they are indeed purchasing store brands they are paying for certain “marketing” practices for manufacturers’ brands, which is not the case of retailers' brands.</div>
<div class="aboutSection" style="-webkit-text-stroke-width: 0px; background-color: whitesmoke; border-left-color: rgb(59, 121, 167); border-left-style: solid; border-left-width: 2px; color: black; font-family: &quot; font-size: 13px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; margin-bottom: 0.3em; margin-left: 0px; margin-right: 0px; margin-top: 10px; orphans: 2; padding-bottom: 10px; padding-left: 10px; padding-right: 10px; padding-top: 10px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">
<strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">References:</strong><br />
<strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><br /></strong>
Hamstra M (20017) “Walmart CEO cites growing importance of private label Store brands seen as driver of margins, loyalty” www://www.supermarketnews.com/walmart/walmart-ceo-cites-growing-importance-private-label<br />
Kumar, N and J.B E.M. Steenkamp, ‘Private Label Strategy’, Harvard Business School Press, 2007.<br />
Nielsen (2014) https://www.nielsen.com/content/dam/nielsenglobal/kr/docs/global-report/2014/Nielsen%20Global%20Private%20Label%20Report%20November%202014.pdf<br />
PLMA (2017) ; http://www.plmainternational.com/in<br />
<br />
* <span style="font-family: "&quot" , serif;"><b>Selima Ben Mrad<span style="color: black; font-size: 10pt; line-height: 125%;">, Ph.D.</span></b><span style="color: black; font-family: "quot"; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">, is an Associate Professor of
Marketing at
Nova Southeastern University. She can be reached at:</span></span><span style="color: black; font-family: "times new roman"; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;"> sbenmrad@nova.edu</span><br />
<span style="color: black; font-family: "times new roman"; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: 125%; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;"><br /></span></div>
<b></b><i></i><u></u><sub></sub><sup></sup><strike></strike><b></b><i></i><u></u><sub></sub><sup></sup><strike></strike><span style="font-family: "&quot" , serif;"></span><u></u><span style="color: #000118;"></span><u></u><br />Art Weinsteinhttp://www.blogger.com/profile/05011519859160178160noreply@blogger.com47