Powerpoint 2: Customer Analysis

Question 1

meal kit startups

Blue apron,

Answer 1

customer retention problem

Question 2

Nike’s acquisition of Zodiac

Answer 2

zodiac is the consumer data analytics company.
helps them forecast individual CLV customers lifetime value.
Fader helped!

Question 3

How to increase customer base CLV

increasing customer base CLV:

Answer 3

(1) Customer Acquisition
(2) Customer Expansion
(3) Customer Retention

Question 4

how to increase customer retention:

Answer 4

• customer satisfaction
• customer loyalty
• higher switching costs
• bundling
• contracts

Question 5

Customer equity

Answer 5

see image 4

• make sure to have financial and strategic value of customers
• (1) Direct value (2) information value (3) Communication value (4) relationship value

Question 6

The AIDA funnel

Answer 6

see image 5
you lose customers at each step so to increase customer base, try to eliminate space.
- has some lacking

Question 7

The AIDA funnel lacks:

Answer 7

(1) basically only about acquisition. Emphasis on influence/sales closure/acquisition and not customer experience and CLV
- no post purchase phase or repeat purchase
(2) fails to capture all touch points. like digital/social channels. well- informed customers
(3) action is NOT the finish line

Question 8

The Customer Journey; The loyalty loop

Answer 8

see image 6

• initial consideration set
• active evaluation
• moment of purchase
• trigger

Question 9

initial consideration set

Answer 9

Evoked short-list of brands to fulfill need/solve problem
-ands in initial consideration set is 3X more likely to be purchased than brands added later (other brands can be added in active evaluation)

Question 10

active evaluation

Answer 10

people add subtract brands as they evaluate options

Question 11

Prospect theory

Answer 11

actually losses are harder than gains. “loss aversion”
see image 7
- Va l u e i s j u d ge d b y changesrelative to a reference point

Question 12

cash back twice citi

Answer 12

example of loss eversion thing

customers get 2 gains and 1 loss

Question 13

Post purchase experience

Answer 13

Consumers collect information online AFTER purchase!•Satisfaction•Performance/quality –not highly predictive•Va l ue r a t i o•Equity/Fairness•Expectations/Disconfirmation

Question 14

disconfirmation

Answer 14

satisfaction/ or dissatisfaction is confirmed if expectations are exceeded or not

Question 15

triggers examples

Answer 15

(1) amazon prime
(2) amazon buttons,
(3) Starbucks rewards

Question 16

Loyalty

Answer 16

(1) active

(2) passive

Question 17

active loyalty

Answer 17

• brand advocate
• emotional connection
• net promoters

Question 18

passive loyalty

Answer 18

• habitual
• no word of mouth
• open to switching

Question 19

assumptions

Answer 19

(1) No reference-point dependence:
(2) No Loss Aversion
(3) No Diminishing Marginal Value
(4) Effort Optimization

Question 20

(1) No reference-point dependence:

Answer 20

customers have well-articulated valuations of the offerings’ performance on different attributes like difference between the “regular” and the “sale” price or the “new and improved” product development strategy

Question 21

(4) Effort Optimization

Answer 21

buyers consider all available information about an offering in a systematic fashion. Heuristics - buyer takes shortcuts to minimizing decision effort like satisficing - selecting the first option that meets the buyers’ criteria without necessarily considering all of the available options or elimination-by-aspects - reducing the number of attributes on which they evaluate the available options.

Question 22

Points of difference

Answer 22

involve attributes that are important for target customers and on which the company’s offering is perceived to be different from that of its competitors.
competitive advantage, disadvantage, which reflects important attributes on which an offering dominates the competition

Question 23

Points of parity,

Answer 23

on the other hand, refer to attributes on which an offering’s performance matches that of the competition.

Question 24

Strategies for Creating Superior Customer Value:

Answer 24

think value function
VA = f(wi, ai)
Improve the offering’s performance on a given attribute (a) Like speed of software
Add a new attribute on which the offering has an advantage. (increase i)
Increase the perceived importance of an attribute on which the offering has an advantage. (w)

Question 25

types of framing

Answer 25

Noncomparative framing:

(1) Need-based framing - particular customer need. For example, Coca-Cola’s (1929) positioning as “the pause that refreshes” appealed directly to customers’ need for a refreshment
(2) User-based framing - particular type of buyer. Eg. upper class or Honda’s (1963) campaign You Meet The Nicest People on a Honda
(3) Category-based framing - relating it to an already established product category. For example, Coca-Cola’s (1906) positioning as The great national temperance beverage
(4) Comparative framing: ( usually niche offerings trying to gain market share from market leader or companies targeting new customer segments )
(5) Competitive framing - explicitly contrasting it to competitors’ offerings
(6) Product-line framing - comparing it to other offerings in the company’s product line.

Question 26

how to increase profit growth

Answer 26

increase sales revenue or lower costs
increase sales volume
(1) market growth (new customers)
(2) steal share
(3) market penetration (awareness,  attractiveness, affordabilityavailibilitym) decrease adoption gaps

Question 27

how to close awareness gap

Answer 27

improving company communications, involve its collaborators in creating awareness, foster third-party communications

Question 28

how to close attractiveness gap

Answer 28

improving the benefits of the offering, reformulating/redesigning, temporary incentives, improving communication and samples

Question 29

how to close affordability gap

Answer 29

orrecting price misperceptions, lowering cost

Question 30

how to close availabiltiy gap

Answer 30

ramping up production to meet demand, improving the geographical coverage of distribution channels

Question 31

how to close purchasing gap

Answer 31

introducing time-sensitive incentives, such as short-lived price discounts, coupons, and financing options.

Question 32

increase sales by managing usage

Answer 32

satisfaction
usage freuquency
usage quantity
replacement frequency
availability

Question 33

how to close satisfaction gap

Answer 33

enhancing the benefits and reducing the costs of the offering, adding variants to the offering’s product line to reduce boredom and address variety seeking

Question 34

how to close Usage-frequency gaps

Answer 34

: increasing the frequency, identifying new ways to use the offering eg. Arm & Hammer promotes baking soda not only for baking but also as a household cleaner and deodorizer.

Question 35

how to close Usage-quantity gaps:

Answer 35

educating customers about the optimal usage quantity.

Question 36

how to close

Replacement-frequency gaps

Answer 36

: increasing the frequency with which customers replace the product. Eg. Gillette added blue bristles on its Oral-B Indicator toothbrush, which fade to alert users that they need to replace their brush.

Question 37

how to close Availability gaps

Answer 37

: ensuring continuous consumption without disruptions like toner-levels in printers.