Chapter 2 - Customers Flashcards
What are characteristics of modern customers?
Customers control what they want
Customers are always connected
Customers expect personal connections
Customers constantly compare everything
Customers trust word of mouth
Customers want to get everything right away
Customs are highly opinionated
What is marketing funnel?
The stages a customer goes through before making the final purchase
At each stage of the marketing funnel, the number of potential customers diminishes, therefore it is described as a funnel
What are the 6 stages of the marketing funnel?
Awareness
Consideration
Preference
Action
Loyalty
Advocacy
Awareness
Knowing the company or product exists
Consideration
Recognise the potential value of a product
Preference
The intention to purchase a product or having a preferred company
Action
The purchase of a product or service
Loyalty
Staying loyal to the firm
Advocacy
Writing reviews, recommending the company to others
What are the 5 core customer behaviour
Access
Engage
Customise
Connect
Collaborate
Access strategy
They seek to access digital data, content, and interactions as quickly, easily and flexibly as possible
What is mobile commerce
Travellers are already accustomed to using QR codes on their phone screens as tickets to board planes and trains, receive discounts, redeem coupons, purchase
Omni channel experiences
Increasingly, businesses are recognising that customers are looking for an integrated experience across all digital and physical touch points
On demand services
Start ups like the Khan Academy, Coursera, and EdX are pushing the limits of on demand education
Engage strategy
They seek to engage with digital content that is sensory, interactive, and relevant to their needs. From the early popularity of Web portals, to the spread of online video, to next generation virtual realities - their digital desires are marked by a thirst for content
Product demos (engage strategy)
Content that demonstrates the value proposition of a business or product in a compelling and engaging way can be extremely effective
Storytelling (engage strategy)
In other cases, brands can reach a broader audience by creating an emotionally compelling story that is less product specific
Utility (engage strategy)
Content is not always about stories and emotions, however it can also be about utility
Brands can effetely engage customers by providing useful content at just the right time
Brands as publishers (engage strategy)
In some cases, brands move beyond individual pieces of content and engage customers by becoming publishers in their own right
Customise strategy
They seek to customise their experiences by choosing and modifying a wide assortment of information, products, and services
Recommendation engines (customise strategy)
To help viewers find what to watch from its large catalog of streaming television and move titles
Personalised interfaces (customise strategy)
Lance’s magic mirror on its Facebook page allows customers to select one of their Facebook photos and then try out various beauty products
Personalised products and services (customise strategy)
Coke sales were declining among young adults in Australia when Coca Cola introduced its personalised Share a Coke cans there. The company chose the 150 most popular names for young adults in Australia and printed those names on the cans in place of the brand’s own name
Connect strategy
They seek to connect with one another by sharing their experiences, ideas, and opinions though text, images, and social links
This behaviour has driven the entire explosion of social media - from blogging, to social networks like Facebook or LinkedIn.
Social listening (connect strategy)
Customer conversations can be a tremendous source of market insight for businesses, which can listen and learn wit the help of numerous tools
Social customer service (connect strategy)
Many businesses find that social media can serve as an effective channel within their customer service mix, alongside call centres, instant chat, and other tools
Joining the conversation (connect strategy)
Test if social media could help its corporate communications
Asking for ideas and content (connect strategy)
Many times, companies will connect with customers by using social media to ask them for ideas, suggestions, or content in the form of photos or videos
Hosting a community (connect strategy)
In some cases, ti may make sense for a business to host its own online community around a shared topic of interest
Collaborate strategy
As social animals, they are naturally drawn to work together
Accordingly, they seek to collaborate on projects and goals through open platforms
Passive contribution (collaborative strategy)
As little as customers’ consent so that actions they are already taking can be used to power a collective project
Active contribution (collaborative strategy)
Customers are invited to contribute their efforts directly to a cause, taking on a small part of a large project
Crowdfunding (collaborative strategy)
Seeking collaborators to contribute to and raise funds for a new project, product launch, or initiative
Open competitions (collaborative strategy)
Can be used to enlist a diverse group to find theist answer or solution
Collaborative platforms (collaborative strategy)
In this approach, the burins creates a context for collaboration but lets the network of collaborators define the challenges to be addressed
What are the different steps in customer network strategy generator?
Objective setting
Customer selection and focusing
Strategy selection
Concept generation
Define impact
What are the two types of objectives for objective setting?
Direct objectives
Higher order objectives
Direct objectives
Objectives that you are directly responsible for addressing in your project
Higher order objectives
Higher order, objectives you are are seeking to support through your initiative
These are objectives that you are not solely responsible for but that your project should support
What is the customer selection and focusing step?
It is to get a clear picture of the customers that you are seeking to address. This starts with selecting which customer segments are most relevant to your stated objectives
What the strategy section step?
Access, engage, customise, connect, collaborate
What is concept generation step?
A concept is a specific, concrete idea for a product, service, communication, experience, or interaction you design for customers
What is the defining impact step?
To articulate a measurable benefit to your company and clarify how you think the strategic concepts you have developed will achieve this outcome
What are challenges of customer networks?
Enabling the network inside
Adding new skills and replace old habits
Bridging silos
Enabling the network inside (challenges of customer networks)
Important to also use the five customer network strategies internally
Should also be used by employees
Most difficult is to change company culture, reducing the hierarchical control and spiking information more widely across the company
Bridging silos (challenges of customer networks)
The firm should anticipate that rivalries may arise due to the clashing objectives of departments and confusion about leadership
For instance, which department will be in charge of the social media accounts?
What are silos?
Departments working independently and avoid sharing information with each other
