Customer Analysis & Value Creation + Ch4 & 5 Flashcards
3 components of Total Customer Experience (TCE)
Purchase experiences
Usage experiences
Replacement experiences
4 components of purchase experiences (IPEO)
Information gathering
Prioritizing needs
Evaluating alternatives
Order placement & payment
4 components of usage experiences (DPPP)
Delivery & installation
Product usage
Product maintenance
Product repair
4 components of replacement experiences (PRPP)
Product upgrades
Returns and warranty
Product replacement
Product disposal
Empathetic design
Truly understanding and improving customer experiences and needs
Lead users and why to leverage their experiences
Highly knowledgeable
Push product boundaries
Provide ideas and insights
Identify key benefits
Features, advantages, and benefits (FAB)
Features - tangible/intangible characteristics
Advantages - performance results
Benefits - individuals value the advantage provided, how the product meets needs
eg: Taylormade driver
F = latest tech/materials
A = longer drives
B = lower golf score
Reverse innovation - invent to order
Usually associated with discontinuous innovations
Learn what customers want but cannot get from current products. If feasible, the firm can invent to order
Reverse innovation - invent to order 5 steps (LICDL)
Listen
Identify
Choose
Develop
Launch
Mass collaboration
Open-ended group collaboration and info exchange
Crowdsourcing
Focused problem solving and product idea generation usually from internet users
Economic value
Comparison of a product’s life-cycle cost versus that of a competitor’s
6 sources of economic benefit and value creation (PAUFMD)
Price paid
Acq costs
Usage costs
Financing and insurance costs
Maintenance costs
Disposal costs
Customer value and relative performance/price metrics
CV, relative performance, and relative price are all metrics for comparing a product against the competition
3 types of perceived performance/benefits (PSB)
Product benefits
Service quality
Brand/company reputation
Conjoint analysis and value drivers
Used to identify which attributes are most influential in decision making
3 key components to effective needs-based segmentation (FPP)
Features
Performance
Price
7 steps in segmentation
Needs based segmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment strategy (acid test)
Marketing mix strategy
Needs-based segmentation
Group clients based on needs and benefits sought
Segment identification
Determine demographics, lifestyle, usage
Distinct, identifiable and actionable
Segment attractiveness
Access, market growth, competitive industry
Segment profitability
NMC
ROS
ROI
Segment positioning
Value proposition includes all key elements of the situation and all the benefits the target customer is looking for
Segment acid test
Present groups of target consumers with storyboards, see if consumers identify with the message
Segmentation strategies
Mass market (generic value prop)
Large market (address one of the core customer needs)
Adjacent segment
Multi-segment
Small segment
Niche
Subsegment
Adjacent segment strategy
Move into the next closest market (slow build)
Multi-segment strategy
Various segments distinguish the overall market
Small segment strategy
Focus on a small segment often ignored by big firms
Niche segment strategy
Highly defined marketing effort aimed at a small group
Sub segment strategy
Allows for a business to add value
