Why You Struggle To Meet Your Business Objectives (And how to Crush them)

“There may be customers without brands, but there are NO brands without customers!”

I am often quoted as saying this and yet I still find most companies spend more time thinking about their brands than their customers, which is alarming to say the least! And you? 

Last week I spoke about identifying the exact category in which you are competing. If you missed it, then I suggest you read “You’re Not Competing In The Category You Think You Are!” before continuing. You will never be successful if you don’t understand the category people put you in and the competitors they compare you to.

In the post, I explain that we often work with a category definition that is based upon industry norms rather than that of our customers. For instance you might segment by price or demographic groups, whereas your customers group brands by flavour or packaging.

Understand how customers see the category and its sub-segments, can make a huge difference to your success in satisfying your own target customers.

This week I want to continue the theme of taking the customers’ perspective by speaking about our own business objectives. You know, the topics that make up our business and marketing plans with such lofty ambitions as:

  • Grow our market share to X%
  • Become the category captain/leader in Retailer Z
  • Launch three new brand variants

All of these may be valid business objectives, but they are not customer focussed. They start from the business perspective.

Adopting a customer-first strategy means turning business objectives into customer aims, by taking what is sometimes referred to as a bottom-up, rather than a top-down approach.

Here are some questions to help you identify your customers’ aim, their attitudes and behaviours that you are trying to influence:

1. Who are you targeting?

Every brand has a target audience. This is a sub-segment of all category users. Yes you do need to segment users and target the most relevant and most profitable group of them for your brand, and then ignore the rest. If you are trying to appeal to everyone you end up pleasing no-one!

“If you are trying to appeal to everyone you end up pleasing no-one!”

2. Why are they currently using your competitor’s brand?

In order to attract your competitors’ customers you need to understand their motives, why they are preferring the competitive brand to your offer. This information can come from many sources, such as market research, social media, or care centre contacts.

3. What reason might make them consider switching?

If you are to appeal to your competitors’ customers then you must be able to satisfy them at least as well, and ideally better than does their current brand. What do you know about the criticisms customers have of the brand? What benefits do you offer and they don’t, or only partially? Could these be appealing to some of their customers?

4. Why do you believe that you can appeal to them now but didn’t before?

Do you have benefits that you have never highlighted in the past? Continue Reading

4 “Free” Ways to Connect with Customers for World-Class Understanding

Last week I spoke about five of the most important actions you can take when starting your journey to improved customer centricity. If you missed it, you can read the post  here; it will be good background information to build from for this week’s ideas and suggestions.

In this post, I would like to continue to support your efforts with some suggestions on an area that many struggle with, that of connecting with and underst anding your customers.

I believe that one of the main reasons for this, is that the target customer segment has been poorly defined. Perhaps it is too wide, such as all category users, or only superficially described just in terms of demographics. C³Centricity’s 4W™ Template, free to download in the members area, will provide a simple way for you to complete a more detailed description of your customer. Once you have that, you can then start to connect with them to deepen your underst anding of them.

1. Retail connections

There are numerous ways that an organisation can connect with its customers. If you have a retail presence, then this is as simple as going to a few of them  and then talking to the customers present. If you yourself don’t own the outlet then you will need to ask permission of the owner, but since retailers are also interested in getting to know their customers better, they will usually accept in exchange for your sharing any learnings with them. (>>Tweet this<<) Customers are more sensitive to value than price

Another opportunity to connect with your customers in retail is through promotions, demonstrations and sampling activities. These have the added benefit of being able to speak with customers who are already interested in what you have to offer, because they have stopped beside your st and. They also are generally more willing to take the time to talk to you even if they are busy, something which can be a struggle if you are just walking up to customers in the store. (>>Tweet this<<)

In addition, I have found that both these exercises can be a great way to improve your image with the retailer and may even warrant special treatment for your br and.

2. Secondary connections

If you don’t have the luxury of meeting your customers in person, then there are still ways to learn more about them. If you have a call centre, then why not listen in or even spend time answering calls? It is both a rewarding and useful exercise to do. This is why many organisations such as Zappos, make their new employees do just that in their first few weeks after being hired.

Market research can make you more customer centricMarket research projects are also another easy way to observe and listen to your customers, although in general you will be a silent observer behind the interviewer, who is asking the questions. Some people prefer to follow focus groups or in-depth interviews, even from behind the two-way mirror, since they will have the opportunity to impact the discussions by feeding questions to the moderator. Continue Reading

For Greater Customer Satisfaction, Should Marketers Answer Their Needs or Desires?

In 1943 Maslow proposed his theory about people’s needs in a paper entitled “A theory of human motivation”.

He used the terms Physiological, Safety, Belongingness and Love, Esteem, Self-Actualization and Self-Transcendence to describe the pattern of needs that motivate people. At the time he didn’t present it as a hierarchy, nor as a pyramid, but that has become the accepted representation these days.

Maslow's hierarchy of needs

While the hierarchy remains a very popular framework in sociology, management training and psychology instruction, it has largely been supplanted by attachment theory in clinical psychology and psychiatry. However since attachment theory is concerned with how people respond to hurt, separation and threat within relationships, it has less relevance for marketers.

All br ands, products and services should be designed to satisfy their target’s needs, so Maslow’s hierarchy seems a good framework to use, when defining on what your offer will be based.

If this interests you, and it should especially if your business is global or geographically spread as I will explain below, then here are the three steps for doing so.

1. Satisfying: Firstly identify which of the five needs your br and or service is looking to fulfill. Remember different br ands within the same category can play to differing needs, especially in terms of their communications. Whilst it is generally accepted that the lower needs must be satisfied before higher needs can be addressed, there are exceptions.

Think of consumers in poorer countries who will buy a TV over proper shoes and clothing for their children. In such cases status and in particular consumer emotions are playing an important role, but more of that later.

2. Resonating: Next develop communications for your target audience by incorporating solutions to their relevant needs. These will obviously resonate more quickly and easily with them than pure product or service information alone. They may also be more emotional and will therefore have greater impact on them.

Here are some good examples that I have seen in recent years of easily identifiable needs being addressed through advertising.

Knorr’s packet soup in the UK, based on needs of food, safety and love. See video

Cartier’s corporate campaign from last year, which marked its 165yrs, was appropriately named “L’Odyssée de Cartier” and is clearly based on esteem and self-actualisation.

 – Omo washing powder, one from a long series entitled “Dirt is good”, based on safety and love. See video

Peugeot car, based on self-esteem and status: See video

UK back seat safety belt buckle-up campaign, based on safety. Warning, the ending is violent! See video

Interestingly, all these are examples from a few years ago. Although newer examples are available, they are not as obviously based primarily on need states as are these ones. I believe one reason for this is the increase in the level of pure emotional content of current advertising. In fact all the above examples use emotions as well in addressing the needs they are looking to answer, which is perhaps why they performed better than many. Continue Reading

Halloween Scares & Solutions for Marketing

Halloween is coming, even earlier than usual this year, judging from all the retail displays already in the shops! Although it is now more associated with children dressing up in scary costumes and dem anding “Trick or Treat”,  it is actually a Christian remembrance of the dead on the eve of All Saints’ Day.

So what does that have to do with marketing? Apart from the obvious effort of many companies to include the pumpkin shape, flavour or aroma in almost every product they make, at least in the US, marketing too has its scary moments doesn’t it?

What scares you marketers the most, or to put it another way, what keeps you up at night? One of the most recent studies on the topic, issued a few months ago, comes from The Marketing Institute (MSI) and was summarised by David Aaker of Prophet as seven issues, which he divided into three tiers:

TIER ONE: The hot topics

  1. Underst anding customers and the customer experience with particular emphasis on the impact of social and digital.
  2. Big data and analytics, with how they will impact predictive modelling and the marketing mix.

TIER TWO: The other concerns

  1. Following on from the opportunities of Big Data, the next concern is Marketing Accountability and its ROI.
  2. Developing marketing excellence and the new skills required such as visualisation and storytelling.
  3. Leveraging digital/social/mobile technology and linking it to CRM
  4. Creating and communicating enduring customer value and how to measure it in the social environment.
  5. Developing and delivering integrated marketing

TIER THREE: Previous concerns getting under control

  1. Innovating products and services
  2. Global marketing
  3. Segmentation
  4. Optimizing social contracts

What I find interesting from this and similar studies that I wrote about last year, is the overlap between many of these challenges. Marketers are really concerned about the wealth of information that they have on their customers and how they can manage to turn it all into insights, for more profitable actions and engagement. I therefore thought it would be useful to summarise the “so whats” of all these current challenges and propose actions that will help marketers get these issues under control, so they can change their scares into solutions:

Underst anding the customer experience

SCARE: With the exciting new worlds of social and digital taking up much of the thoughts of marketers, they are struggling to find ways to think integration, but that is the only way to underst and today’s customers. 

SOLUTION: Starting from the customers’ perspective makes looking at the bigger picture much easier. Instead of thinking single channels of communication, think connection and engagement. (>>Tweet this<<). Instead of thinking purchase and loyalty, think advocacy. Creating value for the customer goes way beyond providing a product or service these days. (>>Tweet this<<)

Knowing what to do with data

SCARE: We have gone from an information rich environment to complete data overload. This challenge definitely keeps a lot of marketers up at night. They feel as if they have to use everything available but at the same time are also aware that they are incapable of doing so. Continue Reading

Join Global Customer First Strategists!

Get our latest posts before everyone else, and exclusive content just for you.

* indicates required

Post Navigator Sponsor Premium WordPress Plugin
Send this to a friend