The Five Forces of CEM Why Companies Must Operate With Clear Knowledge of the Customer’s Emotions and Values

Why Companies Must Operate With Clear Knowledge of the Customer’s Emotions and Values

1. The Customer How do I define value? Cheaper? Better? More options? How do I define values? Privacy? Social and family values? Respect for authority? Independence?

How do I define value?

Cheaper? Better? More options?

How do I define values?

Privacy? Social and family values? Respect for authority? Independence?

2. Networks of Data What information about a company or its services can I find: On my cell phone? On the Internet? In guides and reviews?

What information about a company or its services can I find:

On my cell phone?

On the Internet?

In guides and reviews?

3. Networks of Opinion Word of mouth has a significant impact on company performance You must create memorable experiences that delight the customer But these experiences must also reinforce your most authentic brand values

Word of mouth has a significant impact on company performance

You must create memorable experiences that delight the customer

But these experiences must also reinforce your most authentic brand values

Defined by a (self-reported) propensity to recommend NPS subtracts the percent of customer extremely likely to recommend (90 percent or greater agreement) from the percent of customers scoring 60 percent or lower agreement “Promoters” - “Detractors” Net Promoter Score

Defined by a (self-reported) propensity to recommend

NPS subtracts the percent of customer extremely likely to recommend (90 percent or greater agreement) from the percent of customers scoring 60 percent or lower agreement

“Promoters” - “Detractors”

Net Promoter Score Source: Marsden, Samson, Upton, The London School of Economics, Advocacy Drives Growth, September 2005

4. Company’s Character Does it make promises it can keep? Are they relevant promises? Important to the brand? How should marketers and operations directors work together to improve promise-keeping? Does the company live its values?

Does it make promises it can keep?

Are they relevant promises? Important to the brand?

How should marketers and operations directors work together to improve promise-keeping?

Does the company live its values?

5. Experience Of all the forces, one’s direct experience with a company is the most powerful Must reinforce the best of the other forces (products, services, character, value/values, word-of-mouth, etc.) Must focus on being branded , memorable and “ tellable ”

Of all the forces, one’s direct experience with a company is the most powerful

Must reinforce the best of the other forces (products, services, character, value/values, word-of-mouth, etc.)

Must focus on being branded , memorable and “ tellable ”

Wal-Mart in Germany Read the Case Study Discuss the five forces as they affected Wal-Mart’s position in Germany

Read the Case Study

Discuss the five forces as they affected Wal-Mart’s position in Germany

The 5 Forces of CEM Values: What to measure Many frameworks Each is multidimensional Not all dimensions apply in all cultures

Values: What to measure

Many frameworks

Each is multidimensional

Not all dimensions apply in all cultures

The 5 Forces of CEM For example, the CONSUMER STYLES INDEX (Sproles & Kendall) has eight dimensions (factors) Sproles & Kendall, CONSUMER STYLES INDEX PERFECTIONISM CONSCIOUSNESS BRAND CONSCIOUSNESS NOVELTY AND FASHION CONSCIOUSNESS RECREATIONAL AND HEDONISTIC SHOPPING CONSCIOUSNESS PRICE AND VALUE CONSCIOUSNESS IMPULSIVE AND CARELESS CONFUSED BY OVERCHOICE HABITUAL AND BRAND LOYAL

For example, the CONSUMER STYLES INDEX (Sproles & Kendall) has eight dimensions (factors)

The 5 Forces of CEM “ The original U.S. eight-factor model could not be confirmed completely, but support [in German culture] was found for six factors: Brand Consciousness, Perfectionism, Recreational/Hedonism, Confused by Overchoice, Impulsiveness, and Novelty-Fashion Consciousness. Variety Seeking was novel to Germany and replaced brand loyalty and price-value consciousness factors found in previous countries.” German Consumer Decision-Making Styles Authors: Gianfranco Walsh, Vincent-Wayne Mitchell, and Thorsten Hennig-Thurau

“ The original U.S. eight-factor model could not be confirmed completely, but support [in German culture] was found for six factors: Brand Consciousness, Perfectionism, Recreational/Hedonism, Confused by Overchoice, Impulsiveness, and Novelty-Fashion Consciousness.

Variety Seeking was novel to Germany and replaced brand loyalty and price-value consciousness factors found in previous countries.”

Hierarchies of Values Effect of cultural environment on earnings manipulation: A Five Asia-Pacific Country Analysis, Guan, Liming et al, The multinational business review, Volume 13, Number 2 Individualism Power Distance Uncertainty Avoidance Long-term Orientation Professionalism Uniformity Conservatism Secrecy Japan Low (46) High High High Low High High High Hong Kong Low (68) High Low High High High High Low Singapore Low (20) High Low High High High High Low Malaysia Low High Low High High High High Low Australia High (90) Low Low Low High Low Low Low

What Would You Do? Knowing about consumer buying styles, how would you have advised Wal-Mart’s team as they planned their entry into Germany? Knowing about hierarchy of values, how does Germany differ from Australia? Apply to your company.

Knowing about consumer buying styles, how would you have advised Wal-Mart’s team as they planned their entry into Germany?

Knowing about hierarchy of values, how does Germany differ from Australia?

Apply to your company.

What Would You Do? What are your brand values? What are your promises? How can you better keep those promises? In a branded way? In a memorable way? To create measurable emotional impact?

What are your brand values?

What are your promises?

How can you better keep those promises?

In a branded way?

In a memorable way?

To create measurable emotional impact?