Lecture unit 03 - Customer-cenntric marketing 2 Flashcards
What is customer centric marketing?
is designed around customer needs and interest and prioritizes customers over any other factor
What is customer centric marketing about and what is the goal=?
- understanding what makes customers different and unique
- and exploring avenues to bring value to a one-on-one level
Goal: build and maintain lasting relationships
What is the historical focus oof customer-centric marketing?
1900´s: CRM
2000s: Customization
2010´s: Customer experience
What is the goal of CRM?
(Uprising in the 1990´s)
Goal: establish a continous dialogue across all customer touchpoints with most valueable customers
How did customization become important, what are the drivers behind this development?
- Data collection allowed firms to customize offerings
- personlized newsletters, postcards, personalized online advertisement
- focus on pre-purchase phase
How did “customer experience” became important, what were the drivers behind this?
- big-data analytical capabilities become more important for understanding and potentially personalizing the customer journey
- Research shows that a customer-centric focus is an important facilitator within firms to create stronger customer-experiences
Is customer orientation and customer centricity the same?
Customer orientation is not the same as customer centricity
What is customer orientiation?
- reactive improvement
- mainly during purchase and use
- focus on product and service
- Goal: sales/revenues
- implemtation by specialists and external service providers
What is customer centricity? Characteristics and the goal
- proactive development around customer needs
- End-to-end, from innovation to servicing
- Product, service, customer experience, business model, brand
- Goal: added value for customer, customer loyalty
- Implemented internally by the entire company
What are the 3 forms of centricity? and what are the problems for each, and the benefit of customer centricity?
-
price centricity: offer low prices
Problem: its not always possible to offer low prices -
Product centricity: focus on design, innovation & functionality of products
Problem: large losses if products fails -
Customer centricity: focus on the customer satisfaction
–>long-lasting stable customer relationship can overcome problems from price centricity and product centricity
What are the resaons for the importancy of customer-centric marketing?
Decreasing internet user growth: pool of availbe internet users is already online and shops elsewhere –>need to target these customers
decreasing customer loyalty:
- customer are more informated and less loyal
- looking for differentiated experiences
- higher tendency to switch brands if customer experience is better
Why is there a decreasing customer loyalty?
decreasing customer loyalty:
- customer are more informated and less loyal
- looking for differentiated experiences
- higher tendency to switch brands if customer experience is better
How can customer centricity increase loyalty and satisfaction?
By employing customer-centricity through offering
- hollistic
- ordered CX (Customer experience
- with long-term focus
Why is there a decreasing impact of mass advertising?
=people are aware that advertising messages and reality differ a lot, as a consequence: the firms
- increase the advertising pressure
- by sending the same message through various channels
Consequence:
–>Customers fell pursued by that and rather try to escape from it then reacting to it
What is customer acquisition costs?
CAC: Sales and marketing expensesn / Number of customers
–>CAC have increased significantly in the past few years, therefore always reaching out for new customers, is not a good marketing strategy
–>Focus on customer retention is the only way to maintain sustainable revenues
What is the difference between retained customer adn loyal customers??
- Retained customers they continously buy from your brand
- Loyal customers: prefer to buy from your brand and act as brand ambassadors
Customer retention and loyalty: On what should a company focus on?
–>Retention is a short-term strategy.
–>The focus should be on building a long-lasting and emotional connection to customers
What are the benefits of customer-centric marketiing?
- increase loyalty
- increase efficiency
- strengthens agility
- fosters differentiation
What are the key factors for efficient customer centric marketing?
- Knowledge about customers
- Personalized Campaigns
- Structured Customer Data Platforms
- Customer Lifecycle Management
- Consistency
- Corporate-wide customer centricity
Key factors for efficient customer centric marketing:
How to gain knowledge about customers? (Methods]
- interviews
- surveys
- social media monitoring
- internal (past) data
- speak to sales and customer support
Key factors for efficient customer centric marketing:
What is important for structured customer data platforms?
requires special attention to data management and collection:
- incentivize customer data collection with offers to produce a trade-off
- gather customer data from multiple sources into one platform
- Develop a 360-degree view of each customer for a better understanding & improved makreting campaiigns
- Multi-channel orchestration allows for the delivery of a unified brand message, regardless of the touch point or department
Key factors for efficient customer centric marketing:
What does customer lifecyle management do?
it offers insights on customer interaction strategies based on the stage of the customer journey they are in
Key factors for efficient customer centric marketing:
What are the requirements for personalized campaigns for every customer?
- Clear brand positioning and customer journeys
- Remove Pain points in your customer journey
- A/B test campaign and define control groups
- Automated processes
- Single customer view
- Consistent multi-channel communication
Requirement for personalized campaings for every customer
How can one get a clear brand positioning and customer journeys?
- Ultimate customer satisfaction achieved by maximizing the overall impression over the course of the end-to-end journey
- FInd ways to enhance the value of the customer journey and demonstrate to long-term customeers that you are participating in the long-run
- Discover the most successful value drivers in the customer journey, with that, triggers can be set
