Digitalization and sustainability Flashcards
Customer lifetime value (CLV)
Customer Lifetime Value is a metric that represents the total net profit a company can expect to generate from a customer throughout their entire relationship. It takes into account the customer’s initial purchase, repeat purchases, and the average duration of their relationship with the company.
The Customer Lifetime Value is also taking the costs to create customers into consideration.
B2B engagement
It’s important to make the customers engage with the brand and the company. This model shows a way to create B2B engagement with the customers.
Moving the customers from only being transactions and monetary value for the company into the stage of relationship. Creating trust and commitment with the customers will help create a sustainable and healthy relationship that can lead to higher engagement. A higher level of engagement will create customer satisfaction, influencing the CLV positively.
Brand engagement
The link between creating a strong brand and relational orientation.
Cognitive-emotional brand engagement:
Thinking about, interested, positive feleing, emotions
Behavioral engagement:
Reading, commenting, participating, sharing
This model: The companies should strive to land in the middle where they are interacting with the three different things when they want to reach their customers.
By interacting the three different things this can lead to a create a higher level of brand engagement.
Brand components
Defining customer brand value
The customer brand value can be measured in the customers:
Brand knowledge
- Brand awareness
- Brand image
Brand attitude
- Brand trust
- Brand affect
Brand behavior intention
- Purchase intention
Brand behavior
- Premium price
- Brand loyalty
- Brand adcocacy
Customer engagement matrix
The goal to reach is true live customers, but it’s important to know that it’s hard to move “true love” customers further. The reason is that the cost of moving them is too big compared to the value/profit you will get from moving them further, which means that moving them further will be non-profitable.
Describe the acticle
Geyer, F. and Niessing, J. (2020). The definitive guide to B2B digital transformation: How to drive uncommon growth by prioritizing customers over technology. Cambridge, MA: B2BDigitalTransformation.com, ch. 3.1-3.3, pp. 171- 215.
Chapter 3.1 of the article discusses the importance of customer-centricity in B2B digital transformation. The authors emphasize the need for companies to put their customers at the center of their digital transformation efforts, rather than simply implementing new technologies for the sake of it. They provide examples of companies that have successfully transformed their businesses by focusing on customer needs and preferences, such as Salesforce and Amazon.
Chapter 3.2 focuses on the role of data in B2B digital transformation. The authors argue that data is a critical component of digital transformation, as it enables companies to gain insights into customer behavior and preferences, and to make data-driven decisions. They discuss the importance of collecting and analyzing data, as well as the challenges of managing and interpreting it.
Chapter 3.3 explores the concept of the “digital customer journey” and how it can be used to drive B2B digital transformation. The authors emphasize the need for companies to understand the various touchpoints and interactions that customers have with their business, and to use that knowledge to optimize the customer experience. They provide examples of companies that have successfully used the digital customer journey to transform their businesses, such as Airbnb and Uber.
Overall, the article provides a comprehensive guide to B2B digital transformation, emphasizing the importance of customer-centricity, data, and the digital customer journey. By prioritizing customers over technology, the authors argue, companies can drive uncommon growth and realize the full potential of digital transformation.
Sustainability
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Consuming resources at a rate which allows them to be replaced, and only producing pollution at a rate that the environment can assimilate
The effect business has on the environment
The effect business has on society
Different types of CSR initiatives (Examples)
“Corporate social initiatives are major activities undertaken by a corporation to support social causes and to fulfill commitments to corporate social responsibility”. There are the following:
- Cause Promotions
- Cause-related Marketing
- Corporate Philanthropy
- Community Volunteering
- Corporate Social Marketing (mainly related to
extended producer responsibility) - Socially responsible business practices (mainly the
operational business practices)
Describe the article
Vesal, M., Siahtiri, V. and O’Cass, A. (2021). Strengthening B2B brands by signalling environmental sustainability and managing customer relationships. Industrial Marketing Management, Vol. 92, pp. 321-331.
The article explores the relationship between environmental sustainability, brand image, and customer relationships in the context of B2B marketing. The authors argue that environmental sustainability can be an important signal of brand quality and can help strengthen customer relationships in B2B markets.
The authors first discuss the importance of environmental sustainability in B2B markets, noting that businesses are increasingly looking for suppliers that can help them achieve their own sustainability goals. They argue that environmental sustainability can be a valuable signal of brand quality, as it demonstrates a company’s commitment to social responsibility and can help differentiate it from competitors.
The authors then discuss the role of customer relationships in strengthening B2B brands. They argue that strong customer relationships can lead to positive word-of-mouth, repeat business, and increased brand loyalty. They also note that environmental sustainability can be an important factor in building and maintaining customer relationships, as it demonstrates a shared commitment to sustainability and can help build trust between the customer and supplier.
Finally, the authors present the results of a survey of B2B buyers that investigated the relationship between environmental sustainability, brand image, and customer relationships. The survey found that environmental sustainability was positively associated with brand image and customer relationships, and that the strength of these relationships was influenced by factors such as trust, communication, and the supplier’s reputation.
Overall, the article highlights the importance of environmental sustainability in B2B marketing and the role it can play in strengthening brand image and customer relationships. By signalling a commitment to sustainability and building strong customer relationships, B2B companies can differentiate themselves from competitors and build a loyal customer base.
Sustainability vs Greenwasher
No universal understanding of sustainability!
Practices and communication have to be aligned, to create authenticity
- Sustainability credibility
- Concern for environmental impact
- Careful consideration of stakeholders
- Resource effeciency
- A holistic philosophy
However–>
- Greenwashing or window-dressing
- What may hinder focus on CSR?
- Business power vs. and economic interest
- Most companies are not brands
- Lack of long-term outlook in operations
- Limits to the extent to which companies can be held
responsible for sustainable development
So companies can actually be seen as both “sustainable or greenwashers” depending on how the investors and customers are looking at them.
Example: Tesla
Is Tesla sustainable?
Yes, if you look at they have made an electronic car which is not using fossil fuel they will be considered sustainable.
But no, if you look at the way of producing the batteries for electric cars. Electric cars are behind on CO2 points when they roll out of the factory. The reason is the cars’ batteries, which are climate-heavy to produce.
Describe the article
Joyce, A. and Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, Vol. 135, pp. 1474-1486.
The article by Joyce and Paquin introduces a new tool called the “Triple-Layered Business Model Canvas” (TLBMC) that can help businesses design more sustainable business models. The TLBMC is based on the well-known “Business Model Canvas” (BMC) developed by Osterwalder and Pigneur, but includes three additional layers that focus on sustainability: the Environmental Layer, the Social Layer, and the Economic Layer.
The authors argue that traditional business models often prioritize economic benefits over environmental and social concerns, which can lead to negative impacts on the environment and society. The TLBMC helps businesses consider sustainability concerns in a more holistic way, by incorporating environmental and social factors alongside economic considerations.
The Environmental Layer focuses on identifying and minimizing the environmental impact of a business model, such as reducing energy use, minimizing waste, and using sustainable materials. The Social Layer looks at how the business model impacts people, such as providing fair wages and working conditions, promoting diversity and inclusion, and contributing to community development. Finally, the Economic Layer looks at the financial aspects of the business model, such as revenue streams, cost structure, and profit margins.
The authors provide several case studies to illustrate how the TLBMC can be applied in practice, including a sustainable fashion brand and a renewable energy company. They argue that by using the TLBMC, businesses can create more sustainable and resilient business models that are better equipped to address the challenges of the 21st century, such as climate change and social inequality.
Example of the “Triple Layered Business Canvas Model” TLBCM
Example of Nespresso’s TLBCM
