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How to Update Your Marketing with a Customer First Strategy

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All marketers know their marketing 5Ps, but how do you update your marketing when you adopt a customer first strategy? Here are some tips and ideas for you to adopt – or adapt.

 

People

This is the easiest of the marketing 5Ps for a customer centric organisation to adapt because a customer first strategy is all about your customers. However, in recent years, there has been a lot of talk about the importance of employees, some even suggesting that they are more important than customers!

I discussed this in detail in a post a couple of months ago, called ” Customers Care About Products & Value, Not Employees.” Click the title link to read my perspective on this topic.

The 4W template is useful for the new marketing 5Ps.

Personally, I believe that customers are your biggest asset, as they are the ones who pay your wages and make your business thrive. It, therefore, makes sense to know them intimately. If you have a different perspective I’d love to hear it; just add a comment below.

In C3Centricity we use the 4W™ Template to record and describe the customer personas of our clients’ brands.

If you still haven’t downloaded our FREE persona template, CLICK HERE to get your free copy and instructions.

In addition to knowing and describing your target customers in detail, the other tip I give when you want to update your marketing when you adopt a customer first strategy. is to start and end every meeting by asking the “magic question.” What is it? It is this: “what would your customers think about the decision you have just taken?”

This one simple idea is incredibly powerful in identifying actions which are not customer centric. I will give examples of these in the remaining 4Ps below.

So a customer-centric approach to your customers is both thinking about them in every action you take, as well as knowing them as deeply as you can and keeping this knowledge constantly updated.   

 

Product

This is often seen as the most important to address when you decide to update your marketing. After all it is what you are selling. It is also the one thing you think about day in and day out. But it’s not the most important in a customer centric organisation. Surprised?

Think about it for a second. Without knowing the P for people in great detail, you won’t be able to optimise your offer in terms of the other four Ps. That’s why it’s a customer first strategy that works better than any other.

Without knowing the customer in great detail, you won't be able to optimise your offer of the other Marketing 5Ps #Marketing #Brand #CMO Click To Tweet

Here are some examples of how companies realised they get their product wrong when adopting a customer first strategy and a couple of right actions for inspiration: 

  • WRONG! Any business that reduces pack content without informing its customers of it and the effective price increase. Read JD Roth’s “Hidden price increases at the grocery store” for more on this.
  • WRONG! Exaggerated claims or twisting the numbers of contained calories by having unnatural serving sizes – seven potato chips anyone? Or saying a product is 95% fat-free, but it refers to the weight, not the calories! I once heard that everything written on the front of a pack is a lie!
Everything written on the front of a pack is a lie! #brand #marketing #packaging Click To Tweet

Check this out with any pack and you’ll see what I mean; there’s sure to be something not strictly correct on it. Please share any funny or annoying examples you find in the comments below.

  • WRONG! Making variant identification difficult for customers. Have you ever bought the wrong product because packs were the same colour and just the names changed? I know I have. Or tried to understand the differences between variants that have five or seven descriptors?
  • WRONG! Running frequent product tests only comparing to the latest version. Although this is standard procedure, if you make regular tests for small changes which go unnoticed in the short term, they can amount to a big, noticeable change over the long term. Better to compare results also to past best ones than only using the current benchmark.
  • WRONG! Any company that makes it difficult for its customers to use their product. Think large bags of pet food or kitchen rolls without easy-carry handles; salad sauce or shampoo bottles which are impossible to open with damp hands; sealed bags which split when opened and need to be stored in a different container.Tropican pack change
  • WRONG! Making pack or logo changes without finding what your customers like or dislike in the current one. Think about the much-publicised Tropicana disaster back in 2009, or the Gap logo change.

Coke holiday edition white canOr more recently the Coke holiday edition white can that consumers confused with the diet version, and were understandably disappointed when they realised they had bought the wrong variant.

 

 

 

  • RIGHT! Taking the customers’ perspective when designing your packaging. Think deeply about how your customers will purchase, open and use your product. Don’t make them struggle in any way, whether to carry, open, close or store it.
  • RIGHT! Working with your customers to perfect current and develop new products. This is by far the best way to guarantee that you stay connected to changing preferences.
  • RIGHT! Be transparent, in your operations, your actions and your plans. If you aren’t, whatever you try to hide will eventually be uncovered and then made public on social media, probably with an accusation of unethical behaviour. United have discovered this many times.
Working with your customers to perfect current & develop new products is by far the best way to guarantee that you stay connected to changing preferences. #NPD #Customer #Marketing Click To Tweet

A customer-centric approach to the product when you want to update your marketing is therefore once again thinking about your customers when developing it. And ideally actually involving them in your decision-making whenever possible.

 

Price

Pricing in my opinion is the most difficult of the marketing 5Ps to get right, especially when updating your marketing when adopting a customer first strategy. You may think that a customer-first price is the lowest possible. It’s actually not! People estimate the value of products and services they purchase, based only in part upon its price.

For example, how many “cheap” products have you bought, perhaps on sale, only to wonder why you ever bought it when you were home? You’d bought on price alone, excited by what appeared to be a “good deal” and then realised your purchase didn’t meet your needs or desires when you contemplated it more rationally at home.

Research shows that customers value a better experience above price and it is expected to surpass both price and product by 2020.

Customers value a better experience above price and it is expected to surpass both price and product by 2020 Click To Tweet

Retailers like Aldi and Lidl have used their pricing strategies to position themselves against more traditional competitors. In these new super-discounters, consumers accept limited choice for the sake of rock bottom prices. However, as they expand their offering to include more well-known brands, they have positioned themselves to appeal to a growing target of purchasers.

However, many manufacturers lose out as their margins are stripped to almost zero. This is why we are now seeing a slow realisation that there is a better way to do business than mere price cutting. Both retailers and manufacturers are adapting to new consumer demands of value and not just low prices.

Consumer goods companies, in particular, have for too long relied primarily on price promotions to meet their sales targets. Amazon has forced pricing down in most other categories because people now check online before buying in many categories. However, as Amazon starts trialling their Fresh online groceries and their bricks and mortar stores the whole world of retail is about to change forever.

As if lowered prices is not challenging enough, people expect to receive something for free in exchange for their personal information online. Data has become the trading currency between consumers and product or service providers. This has resulted in many companies even changing their business models. Just one example of this is telecom that has become geolocalization data providers to many other industries.

Data has become the trading currency between consumers and product or service providers. #Data #Marketing #SMX #CEX Click To Tweet

A customer centric pricing strategy will enable businesses to continue to grow, by understanding how to fix pricing levels more carefully. Knowing the value of what you offer and the importance of brand or service will enable retailers and manufacturers alike to continue to thrive.

 

Place

This is a major difficulty for every brand, especially if they have a lot of variants. The answer to improving your distribution is your customers – of course!

The more variants you have the more difficult it usually is to gain a wide distribution. If you know your customers as deeply as you should, then you will be able to identify their differences by region. You can then use these to make decisions about what to sell where.

Since most retailers provide limited shelf space to each manufacturer, it is best used by showcasing your top selling variants in that area, plus eventual new offers to test their acceptance.

Another “place” that it is important to understand today is social media. The Pew Research Center provides a 2016  US analysis of the major channels by demographics which is a great starting point. Ideally, you should know both where your customers are and when. That way you can be present when they are open to messaging. But more about that in the next topic.

This P is relatively easy for a brand to be customer centric. You just have to offer what your customers need, where and when they need it.

To have customer-centric distribution, you just have to offer what your customers need, where & when they need it Click To Tweet

I know it’s easier said than done when you don’t have full control over your distribution. This is one reason why many manufacturers are now offering their products directly to their customers through online shops.

The change will certainly have a significant impact on retailers and it is only a question of time before they increase the prices of making goods available in physical stores. In so many categories today, outlets are mere showrooms for people to see before they buy – online.

 

Promotion

As with place, knowing what messages your customers are interested in receiving from you and even more importantly where and when are one of the keys to successful communications.

Whether it is advertising, price promotions, social media sharing or other advertising activities, understanding your customers deeply is the other foundation of success.

An organisation which makes it difficult for customers to connect using their preferred channel is not customer-centric.

An organisation which makes it difficult for customers to connect using their preferred channel is not customer-centric Click To Tweet

Take a look at your own website contact page. Does it include email, postal and street addresses? Does it have a telephone number or live chat option? It should.

But if not, then I bet it has a contact form with possibly a drop-down menu from which a customer chooses their reason for reaching out. You probably also ask them for all their details, while not providing them with yours. Definitely not fair play is it?

Another related area of promoting your brands is PR. Quickly owning up when you’ve made a mistake, rather than trying to hide it. This builds trust and customers will even forgive companies that do this. Honesty is definitely the best policy when it comes to your customers.

A customer-centric organisation provides their customers with valuable information where and when they need it. They also communicate in ways which enhance their relationship and shows they value their business. If things go wrong they own up quickly, inform the public, say how and why it happened and what they are doing to put things right. They then go on to do just that by taking the appropriate actions, all the while informing their customers of their progress. 


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Interested in updating your own Marketing 5Ps? 

Check out our 1-Day Training courses and download the brochure for more details on each of them.


 

What Do You Think About Adopting a Customer First Strategy?

Did you notice that the new way of thinking about each of the Marketing 5Ps that I am suggesting involves the customer? Thinking and above all following a customer first strategy is the new marketing objective that gets results.

Thinking and above all following a customer first strategy is the new marketing objective Click To Tweet

I believe that both manufacturers and customers will benefit from a customer-first strategy. In fact, research from both Forrester and Gartner has now proven this; customer-centric organisations grow seven times faster and are 60% more profitable. Makes you wonder why companies are not rushing to change, doesn’t it?

Marketers have been working with the marketing 5Ps (and 7Ps) for decades, so perhaps it’s time for an update. What do you think? Should they be translated into a more customer centric approach? What do you see are the major challenges in doing this? Why are some businesses still hesitating about moving to a customer-first strategy? I’d love to hear your thoughts on the topic.

 

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8 Marketing Essentials for 2014

Over the past few weeks I’ve been in the US catching up with a few C³Centricity partners about marketing priorities for 2014. The meetings were as inspirational as the new products being presented at the Las Vegas CES (Global Consumer Electronics & Consumer Technology Tradeshow)!

We discussed some of the most important challenges marketing will be facing in 2014 and brainstormed some possible solutions. If you are having any of these difficulties then I’m sure you will find the following ideas useful:

Social Media Metrics

Email is a popular customer service connection pointAs many companies transfer budget from traditional to online advertising, it is essential to also shift some of your funds to measuring its impact, even if some people do question the validity of such metrics. However, the most important thing to do is to link the metrics to what is happening in your business. Your CEO isn’t interested in how many Facebook Likes you’ve managed to get, but he is interested in knowing that you gained x% in awareness. Some st andard numbers often followed are mentioned in “ 10 Social Media Measurement Best Practices” but remember that engagement and listening for better customer underst anding are also (more?) important, as mentioned in this Business Insider post. What everyone does agree, is that every campaign must have objectives and metrics to gauge their efficacy; do yours?

Storytelling

There is so much (too much?) information flowing into organisations today, but it is not being sufficiently accessed because most of it is not being integrated and analysed. Even when it is, sharing the insights is often a challenge because of the complexity of the process. Turning knowledge and underst anding into stories and then visualising or videoing them is a better way for both sharing and getting participation in actioning them. Why not review both your insight development and your knowledge sharing processes this year? If you’re comfortable with where you are, perhaps now is a good time to start storing your information and insights in easily-accessible libraries?

Showrooming & Virtual Reality

Virtual realityIt has been suggested that showrooming will be the end of retail outlets, but I believe there will be an integrated, rather than an either / or future. Virtual reality enables shoppers to see how products could be used, or how they would look in their homes, office or even on themselves. It also allows both retailers and manufacturers to improve their offer by identifying any pain points, and enables them to hold less stock and still offer maximum choice to customers. How about going online with 3D catalogues or providing in-store areas to offer your customers product trial and experience?

 

New Communication Opportunities

According to Jay Walker-Smith of Yankelovich

“We’ve gone from being exposed to about 500 ads a day back in the 1970s to as many as 5,000 a day today.”

Whether that second number should be 5,000 or 20,000 as I’ve also heard mentioned, it suggests that little can or is being retained our customers. Since this is unlikely to change in the future, as attention spans shorten even more, finding new messaging opportunities that resonate with our customers is vital. Why not use social media to track your target audience’s expressed wants and needs, and then compare them to what your key competitors are communicating. This will help you to uncover hidden communications’ gaps which you can then use to connect with your customers.

Adapting Communications to Personas

Don't alienate your business from its customersAre you dissatisfied with your current segmentation efforts? Creating personas can already add interest and thus actionability, by visualising their similarities and differences. Have you thought of taking the same approach to your communications too? By crafting personas built from your existing data on media habits and going beyond traditional segmentation, you can focus your attention on how to actually communicate with these different groups.

Channel Management

Mapping your br and’s story as told by the br and across channels can provide a “mosaic” of its communications and quickly highlight areas which need attention.Successful campaigns work across multiple channels but it is important to examine the contribution of each to avoid overlaps and gaps. Why not make 2014 your year of br and building through improved channel management?

Better Communications for Organisational Strategy

Following on from the above point, people’s attention spans are diminishing and we are all skimming rather than reading today. This means that companies need shorter, more impactful copy, for advertising and websites, but also for internal newsletters and communications. Analysing the content of communications can be very informative in underst anding the messages our customers, employees or consumers are receiving. We can no longer be satisfied with knowing just what we are sending out. Make this year the one in which all your communications resonate and provide the right messages to your targets.

Disruptive Innovation

Trends around the worldCustomers are becoming more and more dem anding – no news there! They don’t stay satisfied or surprised for long. What was novel yesterday is normal today and boring tomorrow. I suppose that’s why shows such as CES get so much air-time on local, national and even international media. We all love to dream and imagine a better life just around the corner. The same goes for our customers, who are always open to new and better propositions.   What are you doing to meet these increasing dem ands? Is your innovation linear, exponential or disruptive? If it’s not the second and hopefully the third, you are probably missing out. Why not make 2014 the year you disrupt your innovation process?

These were eight of the tens of ideas that I discussed with my partners to help companies identify their marketing priorities. Have a look at your plans and see whether you are still playing it safe by just repeating what you did last year? The same number of campaigns, the same promotions, even the same type of innovations. There’s still time to make 2014 the year of exponential growth and change for your company. 

The 7 Secrets to Strategic Marketing Success on the Social Web

This week’s guest post is from Felix Relationship Marketing founder Juan Felix. In it Juan shares some great tips on getting people talking about your business; isn’t that what we all want? 

Ever wonder how to get people talking about your business? Start by offering them incredible products and services that solve their problems and fulfill their needs. Make your customers happy and give them something to talk about. Read this article to access 7 key elements that will get people talking about you!

Every strategy comes with its own set of rules, and so does word of mouth marketing. Yes, this means that you can actually create a strategy to generate positive word of mouth support for your business.

But first: why does Word of Mouth matter?

Learn about cognitive dissonance: “this is a discomfort caused by holding conflicting cognitions (e.g., ideas, beliefs, values, emotional reactions) simultaneously. In a state of dissonance, people may feel surprise, dread, guilt, anger, or embarrassment.”

In other words: people are always searching for ways to reduce this cognitive dissonance (to reduce risk and hence fear!).

Receiving positive reviews by word of mouth from friends or family on products or services will reduce the dissonance, as it confirms people in their beliefs that this is a good product or service. You could also define this as the effect of social proof. “If X amount of people share a positive experience, it has to be great!”

So, given that consumers need input to reduce the risk they take, and hence the fear that goes along with buying stuff, here are 7 key elements that will generate positive word of mouth promotion for your business:

 

#1 Make Customers Happy

strategy objectivesIf you value your customers, offer them more than they expect! And do it all the time. It’s not only the great product or service that generates loyalty, but the implicit message that states “you matter to us!”. That’s what every customer wants to hear! Solid relationships thrive on rewarding your customers with a creative surprise. Watch the smile on their faces!

 

 

#2 Focus on Br and Commitment

In Spreading the Word, Tom Brown defined Br and commitment as: “An enduring desire to maintain a relationship with a specific entity.” (Brown e.a., 2005, p. 126)

strategy missionYour Facebook br and page may offer you a unique opportunity to build and nurture a relationship with your fans. But, it takes more than just generating a Like for your Fan page to get people to talk about you! Just watch how many Facebook pages have almost zero engagement.

So, ask yourself these 2 questions every day: “do your customers have an enduring desire to maintain a relationship with your br and?” and “what do you do to earn your fans’ trust each day?”.

If you focus on the enduring desire of fans to maintain the relationship with your br and, this sets the conditions for successful viral word of mouth marketing.

Br ands with a strong and engaging fan base on Facebook can count on daily likes, shares and comments. This engagement will increase your visibility and accelerate your Reach. This social proof will increase your br ands’ attraction and generate more fans. If you want to learn more on this, check out Social Midas.

 

#3 Offer Distinctive Products and Services

strategy 3When it comes to distinctive products, for most people one word is enough: Apple. Steve Jobs has succeeded in building a strong br and that people associate with innovative products that rock! Every time Steve introduced a new product, like the iPod, iPhone or iPad, people just had to talk about it and still do!

When you think about distinctive service, I’m sure Zappos.com resonates with you. Not only does Zappos offer shoes online, they value their customer’s trust more than anything!

If you offer new distinctive products or services, people just want to talk about that. It’s up to you to generate virality by offering them great content about your products or services, so they can share it with friends and family. Think about blog posts, videos, podcasts, badges or other promotion material.

 

#4 Nurture Involvement

strategy 4Offer solutions that connect to the mental relevancy of your customers. Think about how to trigger a big desire or confront huge pains or frustrations. Get into the middle section of your customer’s brain (limbic) to create somatic markers. These markers connect a personal experience with your br and. Just like a can of Coca-Cola will generate happiness and warm feelings for a lot of people. Continue to nurture these feelings and watch how your customers want to share their experience with their family and friends.

 

#5 Connect with Market Mavens

strategy 5Market mavens are individuals who have up-to-date information about many kinds of products, places to shop and other facets of the market. These market mavens are the ones who are most likely to respond to information requests from friends or family. They love to educate others, and it also increases their status. Connect with these market mavens and make them your br and advocates.

 

 

#6 Identify your br and advocates

strategy 6When it comes to word of mouth marketing, referrals by br and advocates are your most effective type of marketing. If you want to include these influencers in your strategy, you need to identify them first.

Fortunately, Satmetrix, Brain & Company and Fred Reichheld developed “The Ultimate Question”.  Ask your customers: “How likely are you to recommend us to a colleague or friend?” and calculate the Net Promoter Score. People that indicate this likelihood with a 9 or 10 are “loyal enthusiasts who will keep buying and refer others, fueling growth”.

 

#7 Invite Social Media Stars

If you want to increase your word of mouth marketing effectiveness on the social web, you need social media stars. These are social media users who reach a great number of people and have much influence. The Klout Score is certainly a great measure to identify these social media stars.

The Klout Score uses data from various social networks -like Twitter, Facebook, Google+, LinkedIn, Foursquare, YouTube, Tumblr and Flickr in order to measure your True Reach, Amplification and Network Impact.

As more social media management tools -like HootSuite or SproutSocial- include Klout Score as the main indicator of social influence, I think it’s worth paying attention to the Klout Score of your online connections.

Take Away: although no one can predict virality of customer experiences on the social web, word of mouth marketing matters more than ever. Underst and these 7 key elements and create your own strategy to stimulate positive word of mouth.

My recommendation on word of mouth marketing: “Word of Mouth Marketing: How Smart Companies get People Talking”.

We love to hear from you! Please share your reaction in the comments box below. Thanks 🙂

To learn more about connecting with your customers, please check out our website here: https://www.c3centricity.com/home/engage/

This post was first published on Felix Relationship Marketing on March 13th 2012 

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