business strategy - c3centricity

10 Key Questions CPG Leaders Should Ask About Customer-First Strategies for Expanded Loyalty

Posted on September 17, 2024September 18, 2024 by Denyse Drummond-Dunn

CPG leaders (Consumer Goods Companies) understand that delivering exceptional consumer experiences is crucial for distinguishing their brands.

A customer-first strategy has emerged as a pivotal approach to business success in every industry, prioritizing customers’ needs, preferences, satisfaction and delight across all facets of an organisation.

This strategy is particularly vital for CPG companies given the direct impact on consumer choices and brand loyalty. It encompasses a comprehensive understanding of consumer behaviour and leverages advanced technologies like AI and data analytics to create personalized and seamless experiences from product development to point of sale and beyond.

For CEOs and business owners in the CPG sector, implementing a customer-first approach enhances customer loyalty and retention and drives profitability and long-term success in a rapidly evolving market.

Here are the ten most important questions that CPG leaders should ask when adopting a consumer-first strategy and culture in their organization.

1. What Does a Consumer-first Strategy Entail in the CPG Industry?

A customer-first strategy in CPG involves prioritizing consumer needs and experiences across all business operations, from product development to marketing and customer service. This approach requires CPG businesses to:

– Integrate consumer feedback into their product innovation processes
– Develop products that meet and ideally surpass consumer expectations for quality, convenience, and sustainability
– Provide exceptional consumer service across all touchpoints, including retail partners and e-commerce platforms

Companies like Honeywell and Medline Industries emphasize transparency and honesty, even when delivering uncomfortable truths, to build trust with their customers (Zendesk) (Graph Digital).

According to a study by Zendesk, 90% of companies collect customer feedback, but only 10% act on it, and just 5% communicate back to their customers about the changes they made based on their feedback. This highlights a significant gap that customer-first strategies aim to fill by fostering transparency and building trust.

Procter & Gamble’s (P&G) “Consumer is Boss” philosophy exemplifies a customer-first strategy. P&G regularly conducts in-home visits and observational research to understand consumer needs deeply. This led to innovations like Tide Pods, which addressed the consumer desire for convenient, pre-measured laundry detergent.

According to a study by IRI and Boston Consulting Group, CPG companies that excel in consumer-centric practices grow their revenue 2.5 times faster than industry peers.

2. How Can We Understand Our CPG Customers Better?

Understanding CPG consumers requires leveraging data analytics and AI technologies to gain insights into their behaviours, preferences, and needs. This is particularly crucial in an industry where consumer trends can shift rapidly.

– Use advanced analytics to interpret point-of-sale data, social media sentiment, and e-commerce behaviours
– Implement AI-driven personalisation in marketing and product recommendations
– Conduct regular consumer panels and focus groups to gather qualitative insights

A McKinsey report found that companies using data-driven personalisation see 5-8 times the return on their investment (ROI) and can lift sales by 10% or more.

In addition, 71% of consumers today expect companies to deliver personalized interactions, and 76% get frustrated when this doesn’t happen (TSI).

A … Click to continue reading

Maximising Customer Value: Answering Your Top Questions About Customer Centricity

Posted on May 16, 2023May 16, 2023 by Denyse Drummond-Dunn

As a customer-first strategist, I am frequently asked about customer centricity and the value it brings to a business when they adopt the strategy.

I, therefore, thought it would be useful to share the topics my clients ask me about most frequently and my responses to them. If you, too, have questions about customer centricity, I’m sure you will find the answers you’re looking for below. And if not, you can always DM me.

So you have questions about customer centricity?

Good to know! Let me start by saying that adopting a customer-first strategy can be daunting for any organization. You should, therefore, not dwell upon your reticence in the past. However, in today’s rapidly changing business landscape, it is more important than ever for you to prioritize customer centricity.

What is a customer-first strategy?

A customer-first strategy is an approach to business that prioritizes the needs and preferences of the customer. It means putting the customer at the centre of every decision an organisation makes, from product development to marketing and sales. Put simply, it involves a shift away from traditional product-focused strategies to a more customer-centric approach.

This means that it’s not just about providing good customer service; it’s about understanding your customers’ needs, preferences, and pain points, and then designing your products, services, and marketing strategies to meet those needs.

Why is a customer-first strategy important?

In today’s highly competitive marketplace, focusing on your customers is more important than ever before. You can no longer hesitate. Nor can you not make it a top objective for your organisation.

A customer-first strategy can help you build stronger customer relationships, increase customer loyalty and retention, and ultimately drive revenue growth.

By focusing on your customers’ needs and preferences, you can differentiate your brand from your competitors and create a sustainable competitive advantage. Isn’t that what we’re all searching to do?

A customer-first strategy is important because it can increase customer loyalty and satisfaction. When customers feel that a business truly understands their needs and is committed to meeting them, they are more likely to remain loyal to that business and recommend it to others.

In addition, a customer-first strategy can help businesses identify new opportunities for growth and innovation. By focusing on the customer, businesses can gain a deeper understanding of their market, and create products and services that truly meet the needs of their customers.

How do you implement a customer-first strategy?

To implement a customer-first strategy, you must start by understanding your customers. For me, this starts with simply watching and listening to them. I say “simply”, but this is one of the most powerful ways to not only know, but truly understand your customers and how your product or service fits into their lives.

Once you have done this, you can supplement your knowledge, if you have found gaps in it, by conducting market research surveys, collecting customer feedback, and analyzing customer data.

All the information you gather can be used to … Click to continue reading

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

Posted on January 18, 2022October 4, 2024 by Denyse Drummond-Dunn

Did you know that using marketing quotes can improve your plans? Do you have a plan you are following that will (hopefully) enable you to reach your goals?

To meet our objectives, we often look to make changes, large or small, in our organisation. At times like these, I find it useful to motivate with inspiring marketing quotes from people much wiser than I am. If you are looking for ways to motivate and inspire your team, then I am sure you 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 … Click to continue reading

Tag: business strategy