Customer Centricity
Percentage of Promotors - Percentage of Detractors = ?
Net Promoter Score
"Favorable Points of Difference" Approach
-B2B environment -requires detailed competitive knowledge
Creating the Demand Landscape
-Erich Joachimsthaler's -tracking several hundred or thousands of consumer behaviors through observation, diaries, journals, & interviews, then grouping them into distinct categories of goals, activities and priorities
Effective Methods of Gathering Feedback
-asking customers to evaluate employees working front line -net promoter score (NPS)
Retro-Marketing
-exclusivity -selective secrecy -amplification -entertainment
Customer-Centric Branding Strategies
-make brand decisions subservient to decisions about customer relationships -builds brands around customer segments -plan brand extensions based on customer needs -develop capability and mind-set to hand off customers to other brands in company -take no heroic measures -change how you measure brand equity
Methods of Gathering Feedback
-satisfaction surveys -sending executives to spend time in the field -"Power Customers"
Touch Point
any point of contact between buyer and seller
Net Promoter Score
categories customers into one of three groups: -promoters -passives -detractors
How to Build Customer- Centric Culture?
engage in four sets of activities -coordination -cooperation -capability -connection
Selective Secrecy
get customers ask "what could it be?"
Customer Perceived Value (CPV)
greatest benefit from the lowest possible cost of the product or service
Exclusivity
hold back supply and delay customers' gratification to avoid excess inventory and make buyers feel lucky
Resonance Focus Model
involves demonstrating a deep understanding of customer's needs and differentiating or highlighting offerings on the few elements that matter most to target customers
"All Benefits" Approach
list all benefits they believe their offering might deliver to target customers -requires least amount of knowledge about customers
Benefits Assertion
make assumptions about feature that may actually provide no benefit to target customers
Entertainment
make pitches engaging, amusing, or flirtatious
Customer Relationship Management
model for managing company's interactions with its current and future customers; the use of technology to organize, automate, and synchronize sales, marketing, customer service, and technical support
Amplification
never keep existence of a secret concealed and generate buzz wherever possible
Customer Lifetime Value (CLV)
present value of the future income stream from a customer, where a customer generates a margin (m) for each period (t)
Why do customer's buy products?
purchase products for the benefits that the product features provide
Brand Equity
set of assets linked to brands name that adds to or subtracts from the value of that product or service
Customer Orientation / Customer Centricity
set of beliefs that puts the customer's interest first, ahead of those of all other stakeholders such as owners, managers, and employees
Marketing Mix
the components of an effective marketing strategy, typically involving product, price, placement, and promotion
Cost of Capital
the cost of fund used to finance a business, typically the cost of equity or the cost of debt (interest rate)
Coordination
BUILDING CUSTOMER-CENTRIC CULTURE -Establishing structural mechanisms and processes that allow employees to improve their focus on the customer by harmonizing information and activities across units
Cooperation
BUILDING CUSTOMER-CENTRIC CULTURE -encouraging people in all parts of the company to work together in the interest of customer needs
Capability
BUILDING CUSTOMER-CENTRIC CULTURE -ensuring that enough people in the organization have the skills to deliver customer-focused solutions and defining a clear career path for employees with those skills
Connection
BUILDING CUSTOMER-CENTRIC CULTURE -involves developing relationships with external partners to make increasing the value of solutions more cost effective
"All Benefits" Approach Drawbacks
Benefits Assertion
value = benefit - cost
Customer Perceived Value
