How Your Business Can Quickly Adopt a Customer First Strategy

Every few days there seems to be another customer service disaster that fills the newspapers and goes viral on social media. Amongst the most notable recent examples include United’s Flight 3411 incident disembarking passengers by force and Walmart refusing to match their online prices in-store. These types of incidents almost only ever happen when an organisation doesn’t adopt a customer first strategy, so the solution is relatively easy.

Every single organisation, big or small, recognises the importance of their customers today. They talk about customer centricity but very few actually go beyond voicing their opinions. Perhaps yours is one of these? Do you know why this is? What’s stopping you from taking the necessary actions?

A customer first strategy is not that difficult to implement. Just think customer first in everything you do! So how come most businesses get it spectacularly wrong?

I think one reason, and probably the most common, is because they don’t see an immediate return on their investment. You see, it costs money to make changes in internal processes and procedures.

Another possible reason is because some organisations have hesitated to start for so long, they now feel that they have been left so far behind that they don’t know where to start. What do you think?

The good news is that if you’re in one of these situations, then help is at hand. Read on because this article shares some of the most useful tips I’ve seen on the topic of adopting a customer first strategy.

 

REASONS TO ADOPT A CUSTOMER FIRST STRATEGY

There has been enough research done to prove that the return on a customer-first strategy is significant. Here are just a few of the most noteworthy numbers I found during my research online; if you are still not sure it’s worth it, then this data will no doubt convince you.

  • 86% of buyers will pay more for a better customer experience. But only 1% of customers feel that vendors consistently meet their expectations. (Source: CEI Survey)
  • 74% of consumers have spent more due to good customer service (Source: Entechus.com)
  • 89% of consumers have stopped doing business with a company after experiencing poor customer service.  (Source: RightNow Customer Experience Impact Report)
  • 49% of consumers have left a brand in the past year due to poor customer experience. (Source: Emplifi)
  • Companies earning $1 billion+ can expect to earn an additional $700 million within 3 years of investing in CEX. (Temkin Group now Qualtrics)
  • A 10% increase in customer retention levels result in a 30% increase in the value of the company. (Source: Bain & Co)

Those are numbers that would make any CEO sit up and take notice! But will it make them act? What’s holding yours back from investing in your customers rather than (just) in developing and marketing the products and services you offer?

I believe that those numbers can no longer be ignored. It’s time every CEO started to adopt a customer first strategy. NO more excuses! This has to be (one of) your organisation’s top priorities! Continue Reading

5 Rules for Rolling Out a Successful Local Brand into Global Markets

I remember reading an article in the Financial Times a few years ago, that challenged companies to search for a new style of marketer.

Now you might be forgiven for thinking that they were speaking about the current need for marketers to be both creative and tech-savvy. But they weren’t. They were referring to the growing demand for marketers who could take successful local brands to global fortune.

After all, thanks to the internet, we live in a global market and the recent pandemic has highlighted this more than ever before, with online shopping booming. The marketer who understands when local specificities make sense and when they don’t, is the one who will succeed in today’s global economy.

In this networked world, more and more successful local brands are attempting global roll-outs. What does it take to repeat the success you’ve had at market level when you launch globally? Here are my five rules to fortune:

 

1. Understand the Market and How It’s Changing

This is the basis of any new product launch and applies just as well to global rollouts as it does to local brand developments. Today’s customers are demanding, so find out as much as possible about them. Understand their rational needs but also their emotional desires, even if they don’t openly articulate them.

For global rollouts, additional information is required, including a comparison of the similarities and differences between the customers in the local and future markets. This is where trend following is of particular use, even if you haven’t (yet?) developed plausible future scenarios, as I recommend here.

 

Let’s look at some of the latest trends which are growing across regions today.

  • Conscious consumerism: Consumers have become much more thoughtful about what and where they purchase.  They support companies that demonstrate the same values that they have and brands are tapping into this trend with campaigns showing their position on various topics. Check out these examples of latest campaigns:
  • I want it now! Consumers and shoppers want information – and their purchases too! – where and when they need it. This has been the case for years. But now they expect to get near-instantaneous answers to all their questions, sometimes using visual search to identify and buy whatever they see, wherever they see it. Ikea’s Place App offers shoppers the possibility to snap an article they like and then see it in their home environment. Ikea also offers a visual search function for shoppers to identify an item seen in a magazine or real life, and then find similar ones. Dulux’s Paint Colour Visualizer offers shoppers a similar service; you can try out paint colours virtually in your home to see how it will look with your furnishings before you purchase it.
  • Personalised Experiences. Despite the desire for data privacy control, consumers are ready to provide their information in exchange for a better, highly personalised experience. ZozoSuit is one example in Japan which enables consumers to order clothing online that will fit them perfectly.
Continue Reading

13 Most Inspiring Marketing Quotes and Questions to Live By in 2022

Are you like most businesses? Do you have a plan you are following that will (hopefully) enable you to reach your goals?

In order to meet them, we are often looking to make changes, large or small, in our organisation. At times like these I find it useful to motivate with some inspiring quotes from people much wiser than I. If you are looking for ways to motivate and inspire your own team, then I am sure you too will enjoy these.

This is my selection of great quotes from some of the best marketers around, together with a relevant question to ask yourself for each. If your favourite quote is not included, then please add it to the comments below the post.

 

#1.  “Strategy and timing are the Himalayas of marketing. Everything else is the Catskills” Al Ries 

This quote refers to the Catskills, a province of the Appalachian Mountains, located in southeastern New York and only 1270m high. It compares them to the Himalayas, a range that includes some of the world’s highest peaks, including Mount Everest (8,849m).

It uses this comparison to suggest that to succeed in marketing you have to afront the highest peaks of strategy and timing, and not be satisfied with scaling simple hills. In other words, be in the right place at the right time with the right offer. Simple!

QUESTION: Are you going to upgrade your marketing this year to meet this lofty challenge?

 

#2.  “In marketing I’ve seen only one strategy that can’t miss – and that is to market to your best customers first, your best prospects second and the rest of the world last” John Romero

I love this quote because it refers to knowing and understanding your customers. The best ones, however you define that, come first and your best prospects come second. If you’d like to know if you’re targeting your very best customers and best prospects, then check out the following post: How Well Do you Know Your Customers? 13 Questions your Boss Expects you to Answer

QUESTION: Do you know who your best customers are and everything you should about them?

 

#3. “Business has only two functions – marketing and innovation”  Milan Kundera

This post shows the often forgotten importance of marketing to business. I know those of you in sales or operations etc will complain, but if customers don’t know and love your brands then you don’t have a business. It really is as simple as that. I also like that innovation is included, because especially today, customers have become so demanding that we need to constantly upgrade our offers to them.

QUESTION: Does your business value marketing? If not, how can you help them to recognise its value?

 

#4. “The wise man doesn’t give the right answers, he poses the right questions” Claude Levi-Strauss

Are you better at asking questions or answering them? Which is more important in your job? Why? A leader doesn’t have all the answers but should surround himself with people who do. Continue Reading

Top 10 Most Popular Articles on Customer Centricity of 2021

Happy New Year to all you Customer-first strategists. May your year by bright and your customers surprised and delighted!

Each January we like to celebrate our most popular posts on customer centricity that were published on C3Centricity during the year. Just like 2020, covid has forced all of us to be a little more creative and a little less demanding in our work.

Here at C3Centricity, we reviewed and updated many of our cornerstone, evergreen articles, so you may recognise a few of them from last year in this list. However, they still make great reading and a reminder that we’re all in business to satisfy and delight our customers. And if you’d like a surprise too, then I have one for you at the end of the post. Enjoy!

 

#1. The 6 Best Ways to Show you Respect your Customers

Show you respect your customersThis is another evergreen post that has been popular amongst our readers for several years. It has moved from second position, to take the top spot in 2021. The article shows you how to connect with your customers and gather their information.

It also has some tips on how to build a good relationship with them and respectfully let them leave if they no longer want to connect with you. Making it hard for them just makes you lose image.

If you’re ready to adopt a customer-first strategy, check out our online course on the topic HERE.

 

#2. Five Rules of Customer Observation for Greater Success

Measure your company image

This post has been amongst the top articles on C3Centricity for many years. It is regularly updated so it remains highly relevant in today’s marketplace.

Its popularity clearly shows the need we all have to understand how to get up close and personal with our customers – the right way.

The 5 rules it includes are easy to follow and will make every occasion to watch and listen to your customers so much more interesting and valuable.

And if you want to learn how to watch and listen more effectively to your customers, then check out our training courses HERE

 

#3. Five Brilliant Ideas to Boost your Insight Development

Boost your insight developmentThis post remains the third most popular one on C3Centricity. Ever wondered why you struggle to develop actionable insights? This post shares some of the main reasons why even large companies fail at this essential art.

Insights are the foundation on which every single successful brand is built. If your brands are lacking strong positive growth, they are probably missing that insight that will make them powerhouses.

So it is vital that you learn how to develop them and then how to action them in your communications and innovation. Again, if you struggle to action your insights, you’re most certainly missing one of the steps covered in this post.

To stimulate your thinking, the article includes many real-world examples of how great insights can be turned into powerful ad campaigns that connect with customers and motivate them to buy.

If you’re ready to finally learn how to develop actionable business insights, check out our online course on the topic HERE. Continue Reading

10 Ways to Immediately Improve Your Customer Centricity

We all know that adopting a customer-first strategy is essential for business growth and profitability. However, customer centricity has become even more important today, as a result of all the changes in our customers’ behaviour following the global covid lockdown. We are now even more impatient and demanding of businesses, and quick to complain publicly when things go wrong, or rather when we are not totally satisfied.

All companies need to put their customers clearly at the heart of their organisation. But I know that many struggle, even in more normal times, to be customer centric. They just don’t know where to start. Am I right? If you’re in this situation yourself, then this article is for you. In it I share ten simple actions to accelerate your organisation along its path to an improved customer-first strategy.

 

#1 Review & Revise the Description of your Target Audience

Do all your brands have a clear description of their target audience? These days we tend to speak about personas or avatars.

Complete this 4W persona template for customer centricityIs it as complete as it should be? If not, then regular readers will know about and probably use the C3Centricity 4W™ template for storing all this information. You can download it and get the accompanying workbook for free here.

In your avatar, you must include not only your customers’ demographics and consumption / purchasing habits, but also information about where they do these things, what values they have that you can tap into and what emotions motivate them to purchase and use your brand.

 

#2 Assess the Optimum Way of Connecting with Your Customers

Do you know the best way to contact your target customers, as well as their preferred place and time to connect?

Review how you communicate with your customers and what information exchange there is at that time. Is it one-way or two? Are you in a monologue or a dialogue?

Obviously the second is what it should be. You can learn far more about your customers by listening, especially when they are ready to share their information with you.

For an original take on engaging your customers see “You’re missing out on a Free Communication Channel!” (Any guesses what it is?)

 

#3 Identify the Needs Your Brand is Addressing

Maslow's hierarchy of needsDo you know what needs your customer has and which of them you are tapping into?

They certainly have more than one need, but you must identify and address only one at a time.

If you attempt to address more than one and especially if they are not sequential, your customer may be confused.

Mixed brand messages on what the brand can do for them, will leave your customers perplexed. This will, in turn, reduce the likelihood that they will be convinced your offer can meet their needs and objectives.

Knowing where your brand sits on Maslow’s hierarchy of needs has one additional benefit. It can increase the success of regional and global launches by identifying cultures with similar levels of a specific need. Continue Reading

Never Give Up! How to Succeed in Business When Everyone Else is Failing

I was recently reminded of a famous and inspiring quote from Winston Churchill’s address to Harrow School in the UK back in 1941. It was certainly one of his shortest speeches, but probably also one of his most quoted. He said:

“Never give in, never, never, never, never”

You can read his full speech – which is not much longer! – here.

Hearing this quote got me thinking about failure. Failure in our lives, our businesses, our jobs, our relationships. And more importantly, about how we often fail merely because we give up too quickly. Unfortunately we’ll never know, but we can do something to avoid failure. In fact we can do a lot!

Now whereas I believe that advising you on your private life is best left to my other platform https://finding-your-happy.com, I do feel sufficiently knowledgeable to speak about your business failures here.

I recently wrote about the 7 reasons most companies fail to adopt a customer first strategy. They were the conclusion to a post on what a customer first strategy is, and what it isn’t. If you missed it, then click the link above to read the full article. And if you want to learn more about how to adopt a customer-first strategy, then I’m sure you’ll be interested in checking out my new course on Udemy called “A Customer-First Strategy for Accelerating Brand Growth.” It is a success roadmap for putting your customers at the heart of your business for faster growth & profitability.

Over the many years of blog posting, I’ve written many posts on numerous topics, including my solutions to failing in countless areas of marketing. I therefore thought it would be useful to share four summaries of the most important articles related to failure in business and innovation in a single post. Let me know what you think.

 

 

How you React to Failure could Make You a Success

For this first summary of a post, I’d like to share not a list of solutions but a selection of inspiring quotes on reacting to failure. I think it sets the stage beautifully for the three other summaries to come.

In the full post (which you can read by clicking the above link) you can also find suggested actions for each of them. They will make you realise that there is great opportunity in every failure! So don’t be afraid to fail. Just don’t miss the chance of learning a valuable lesson!

1. “It’s fine to celebrate success but it is more important to heed the lessons of failure” Bill Gates, American Businessman

2. “Failure is not fatal, but failure to change might be” John Wooden, American Coach

3. “By failing to prepare, you are preparing to fail” Benjamin Franklin, American Politician

4. “Failure is simply the opportunity to begin again, this time more intelligently” Henry Ford, American Businessman

5. “The difference between average people and achieving people is their perception of and response to failure” John C. Maxwell, American Clergyman

6. Continue Reading

Do Companies Still Benefit From Having a Market Research Department?

What’s your gut response to the title question about Market Research Departments? Yes? No? Being Swiss I would say it depends!

I am probably in the third camp. Yes, if it is a department that integrates and analyses information from multiple sources, and then delivers actionable insights and recommendations to the organisation. No, if it is the traditional market research department, whatever that is.

I first asked this question a few years ago and it generated a lot of – sometimes heated – discussions. Now after so many changes in the past couple of years, I thought it was worth revisiting. Please add your own perspective into the comments below and let’s get those discussions started again.

Thanks to social media and websites, the IoT (Internet of Things) and smart products, companies are inundated with information these days. Who better than market research to help in its analysis? But in order to become this new business decision support group, new skills are required.

Insights 2020 by Kantar-Vermeer ran some interesting research into the future of market research and insights. In their report, they spoke about the need for researchers to have five critical capabilities:

  • Research & analytics mastery
  • Business acumen
  • Creative solution thinking
  • Storytelling
  • Direction setting

The fieldwork is now a few years old but I still think it makes good background reading to make companies think about their own needs in terms of data analysis. Also, the world and business environment has changed dramatically in the last eighteen months.

Another study by BCG and GRBN resulted in an Invest in Insights Handbook to help organisations report on the ROI of the insights function. They reported that those who measure the ROI of their information have found a seat at the decision table, increased budgets, and more control. Those are the department objectives that the FMCG world in particular desires today, be they in a manufacturing or retail environment.

As the handbook mentions:

“Architecting a world-class Insights organization requires executive, cross-functional commitment/engagement”

To do this, the report mentions the following six points:

  • Vision & Pace
  • Seat-at-the-table and leadership
  • Functional talent blueprint
  • Ways of working with the Line
  • Self-determination
  • Impact and truth culture

The analysis concludes that:

“The biggest barriers to experimenting with innovation in CI are resources, both time and money. A lot of times there’ll be [a need for] an innovation project but it can’t find a home.”

Invest in InsightsThis seems to suggest, at least to me, a chicken and egg situation. Resources are insufficient because the business doesn’t see the benefit of investing in market research and insight development. But the Market Research Department is struggling with insufficient budget and personnel to provide the support that they should – and often could – provide.

In the GRBN report, they mention the largest barriers to the measurement of the ROI of market research and insight. These were found to be:

  • Difficult to do – studies are used in many different ways
  • Difficulty in isolating impact of consumer insights
  • Time lag between insight delivery and business results

The secondary concerns are:

  • Consumer insights distant from business decision-makers
  • Business objectives not clearly defined
  • Insufficient staff to measure
  • Lack of alignment on important metrics

Looking at this list, it is clear that the market research profession is in need of a significant overhaul. Continue Reading

7 Secrets to Business Growth from Leading Global Brands

Consultants get contacted for all sorts of – admittedly sometimes strange – requests for support from their clients.

However, when I get several people asking for help in the same area, I know something important is happening in the marketplace. This is exactly what happened to me a few months ago. I was repeatedly asked to share my secrets to Business Growth.

Most marketers have now returned from their vacation and are realising just how little time they have left in which to meet their annual objectives. Their brands have not performed as well as they had hoped this year and they are looking for a solution – fast!

No less than two of my current clients and four new companies have asked me for support in growing their businesses in just the past month! In particular, they have all said that one or more of their brands is stable – to be polite – and that they want to reverse the (non-existent) trend. Is this your situation too? If so, then I have a useful 7-step process that will bring rapid, if not instantaneous change. (although if I was one of the self-declared gurus we all see on social media these days, I probably should guarantee you results in days!)

 

How to Recover a Declining Brand

OK, let’s get straight to the point with the most painful of situations first, that of a declining brand. A few years ago I wrote a popular post about using brand image metrics to understand what is happening with a brand and how to identify the best actions to take.

It is called “How to Stop Brand Decline: Following Brand Image is More than Meets the Eye.” I highly recommend reading it now, for a short but in-depth understanding of all the information that can be gleaned from a simple brand image study.

Almost all brands use their own brand image data in a very basic way, but there is so much more that can be done with the information, even without harnessing AI to do it for you!

Business growth from brand image measurement

In the above post I speak about the different kinds of attributes that should be measured and how to find them. They must cover the three aspects of customer benefits, namely:

  • Rational, functional benefits
  • Emotional, subjective benefits
  • Relational, cultural benefits

However, what is even more important is how you analyse the data once you have it. I suggest looking at, as a minimum:

  • Total and splits by demographics – gender, age, location etc
  • Segments as you have defined them – attitudes, values, motivations etc
  • Steps of the customer journey – aware, consider, try etc

 

Changes in your Brand image are just one of the things that you should look at when you are trying to understand why your business is flat, or even worse, declining. It’s one of the best kept secrets to brand growth!

Let’s now look at some of the others.

Next Steps

So you’ve gone through all seven steps. Great! Continue Reading

How to Make a Great Customer-Centric Web Design

Web design is a variable that changes as fast, if not faster than we can get our latest creation published!

In just the past twelve months, digital adoption has expanded five to ten times faster than was expected, thanks to the pandemic and lockdowns. This, together with the increased economic uncertainty and loss of predictability, has driven customers online in ever greater numbers.

This migration has further shifted the balance of power to the customer, who now has far more control of their relationship with brands. As if this weren’t challenging enough for marketing, customers have also become less loyal and more open to new experiences.  

That’s why it’s important for a brand to always be improving their online presence. Not the “rearranging the deckchairs on the Titanic” type of superficial updates, but changes that make the experience better for current and potential customers. What are they? Read on to find out.

 

 

What Google wants

What Google wants, Google gets. Since it launched its core web vitals last year, some websites have dramatically increased their search result rankings (Like C3Centricity did!), while others have disappeared off the front page, and the following pages too!

Google announced the introduction of Core Web Vitals last year as a set of metrics related to speed, responsiveness and visual stability, the three most important ones for a good customer experience. These are:

  • Largest Contentful Paint: This is the time it takes for a page’s main content to load. An ideal LCP measurement is 2.5 seconds or faster.
  • First Input Delay: The time it takes for a page to become interactive. An ideal measurement is less than 100 ms.
  • Cumulative Layout Shift: The amount of unexpected layout shift of visual page content. An ideal measurement is less than 0.1.

Google said it would give six months notice before introducing these metrics, to give everyone time to adapt and improve their websites. I haven’t yet seen an announcement but I have seen changes in my rankings (for the better) so I am wondering if they have in fact already been introduced. Do you know if they have?

Taking the perspective of the customer

One of the most frequent reasons why websites fail is because the creator has not taken the perspective of the visitor.

The content has been designed by an organisation with the objective of distributing information that it wants to share with its current and potential customers. Not what they believe their customers might need or desire. And even less the differences between the needs of current and potential customers. Even when the customer is considered, it usually comes as an afterthought, often as a review the day before its launch!

Customer-centric web designs use customer input all along their development, not as a late-stage verification that customers can use it, which is what many companies measure. (if at all!) There are so many opportunities to see how customers are using our websites that there is no excuse for frustrated visitors leaving early, before doing what they came to do. Continue Reading

24 Factors to Consider in Pricing your Product, Service or Solution.

We have a treat for you today. It’s a guest post from the highly respected global expert on customer centricity, Alan Hale of Chicago.

He writes about the importance of getting pricing right and generously shares twenty-four (!) factors to consider when pricing your product, service or solution.


Over the past several decades, I have managed over 250 projects, and am currently serving as the President of Consight Marketing Group. During that time,  I have noticed that some of these clients experienced customer erosion or profit sub-optimization due to poor pricing practices. The following article discusses some of the issues seen, as well as other pricing challenges described in other marketing journals and textbooks.

  1. Pricing needs to cover your costs. Pricing needs to cover COGS (cost of goods sold), and contribute towards an allocation of fixed costs like rent, utilities as well as profit. Selling a high volume of products does not guarantee a profit. “We will make it up in volume” does not make sense.
  1. It is related to capacity, the economic supply and demand. If you have strained capacity like oil pipelines, prices are substantially raised. Conversely, if a contractor has no backlog, they might be willing to discount prices. For you econ majors, it is the intersection of the Marginal Revenue and Marginal Cost curves.
  1. Price according to the Market Lifecycle. Early adopters in the growth stage pay more than laggards in a mature or declining market. A major computer manufacturer used to price their line of PCs 10% higher than the competition due to their brand, perceived status and support. As PCs became more commoditized, the pricing premium came down. If you have a well-known brand name with a high amount of loyalty, you can charge a premium. If it is a mature/commodity item it is difficult to charge more. Would you pay 50 cents more for a pack of nails on the retail shelf?
  1. Price insensitivity is positively correlated with ROI. Cost is not as important in the business arena if there is a high ROI. Look at ERP (Enterprise Resource Planning) systems that can cost millions upfront over the first few years with consultants and implementation. But it saves the organization tens of millions over many years.
  1. Pricing depends on the amount of the cost of the components versus the total cost of the product. Bottling companies fill bottles with cola or other liquids. These polypropylene bottles are significant to the costs, and contract prices are negotiated heavily every year or contract period.
  1. Pricing is dependent on selling to the MRO (maintenance repair and operations) channel or OEM (original equipment manufacturer). Because of volume OEM’s can demand much lower pricing. Car manufacturers can buy tires at a much lower price than the customer off the street for example.
  1. Pricing is related to value. I have been privy to many research and consulting proposals. Some companies do a cost-plus calculation, the labour will cost so many hours, at an average cost plus markup for profit is the price for the proposal.
Continue Reading

Should CMOs Concentrate on Brand Building or Business Growth?

Do you remember when Coca-Cola did away with their CMO in favour of a Chief Growth Officer? Then two years later they brought back the position. At the time, I asked if they were wise or foolhardy to make such a change, but they answered the question themselves!

In an interview with Marketing Week, their global vice-president of creative claimed that it had “broadened” the company’s approach to marketing. Obviously, this didn’t live up to their optimistic expectations. I think that other companies who followed suit, also realised that they need a CMO after all. However, their role has changed significantly. 

 

HOW MARKETING HAS CHANGED

Marketing is an old profession. It’s been around for hundreds of years in one form or another. If you’re like me and are fascinated by how change happens, then I’m sure this complete history of marketing Infographic by Hubspot will be of interest.

With the arrival of digital marketing in the early 80’s, many companies began to take a serious look at their marketing. They realised that their primarily outbound strategy had to change. Their consumers didn’t appreciate being interrupted in their daily lives. However, with the creation of inbound marketing, they still irritated their consumers with spammy emails, popups and “subtle” cookies for following their every move. No wonder the EU felt inclined to develop its GDPR (General Data Protection Regulation).

What has changed over the past five years is marketing’s deeper awareness of, if not complete adherence to, what customers like and dislike. The major trends that we have seen and their impact on marketing, include:

  1. Chatbots, especially through Facebook Messenger and WhatsApp, to catch consumers on the go with highly personalised messaging.
  2. The use of voice. With the battle between Amazon, Microsoft and Google in the voice search and commands domain, customers can get answers just by asking. This is a huge challenge for businesses because being on the first page of search results is no longer enough; you have to be first!
  3. Video is taking over social media, with its rapid rise on YouTube, Vimeo, Twitter and Facebook.
  4. Influencer marketing is giving way to customer journey mapping with the increased detail that IoT can provide. Many organisations have moved their marketing plans to mirror their customers’ path to purchase. Or rather paths, as personalisation continues to trump mass engagement.
  5. Zero-party data. As social media platforms have seriously reduced the collection of their subscribers’ data, brands are increasing their direct engagements with their consumers. Through polls, quizzes and competitions, they openly ask for consumers’ details, bypassing the need for cookies.

Have you taken these megatrends on board and adapted your marketing accordingly? If not, why not? 

 

BRAND BUILDING

In the past decade or so, many large CPG companies such as P&G  and Nestle renamed their Marketing departments as Brand Builders, in the hope of adapting to this new world. They failed, miserably.

I believe the reason they failed is that despite this name change, they continued to run their marketing in the same old way. Continue Reading

How to Measure Customer Centricity the Right Way

As a customer-first strategist (just like you I hope), I spend a lot of my time searching how to better measure customer centricity for my clients. I also do a lot of analyses on what customers really want today. I’m always trying to understand the exact solutions customers need, desire and dream of having.

My regular searches include customer service, customer satisfaction, customer care and similar topic areas. Google is my best friend! However, I recently came across some surprising facts, which prompted this post. I believe they show a serious problem in the business of looking after our customers today. Read the article and then let me know whether or not you agree with my analysis.

CUSTOMER CENTRICITY

Wikipedia, another online friend of mine, doesn’t have a definition of customer centricity! If you look up the term, you get redirected to customer satisfaction!  Try it for yourself and see.

My other go-to source for definitions is  businessdictionary.com which defines customer centric as:

“Creating a positive consumer experience at the point of sale and post-sale.”

It then goes on to say

“A customer-centric approach can add value to a company by enabling it to differentiate itself from competitors who do not offer the same experience.”

Now although I find the definition limited, since it refers only to sales and post-sale activities, I do like the fact that it mentions three important elements of customer centricity:

  • A positive customer experience
  • Adds value to a company
  • Enables differentiation

This clearly identifies three huge benefits of becoming (more) customer centric:

1. A positive customer experience has been shown to increase both loyalty and advocacy. As we all know, it costs five times more to acquire a new customer, as it does to keep a current one. Therefore loyalty is an incredibly valuable benefit for a brand.

According to recent research by Bain & Company, along with Earl Sasser of the Harvard Business School increasing customer retention by just 5% can increase profits by between 25% and 95%. OK a very wide range, but I’m sure we’d all be happy with even a 25% increase in profits, wouldn’t we?

One further piece of research, this time from Marketing Metrics, shows that the probability of selling to an existing customer is 60 – 70%, whereas the probability of selling to a new prospect is less than 20%.

Clearly placing more attention on keeping our current customers satisfied brings greater rewards than going after new ones. And yet that is what most companies set as a priority. Any ideas why?

2. Adding value to a company also increases the ROI of its marketing investments. This is something that marketing is constantly challenged to prove these days. With the risk of seeing their budgets cut if they are unable to provide convincing arguments to their bosses.

Luckily, what’s good for the customer is good for business. You can see many more facts and statistics about this in Forrester’s report “The Business Impact of Customer Experience.”

Customers also want companies to be open and transparent. Continue Reading

I hope you enjoy reading this blog post.

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