It is a Consumer world
Online Strategic Solutions
…make purchase decisions in an average of
…abandon >50% of shopping carts online
without ever making a purchase
…know fundamentally that power has shifted
from companies to them, and they don’t often
give brands a second chance
…are your business’s scarcest resource and most
I am your customer. A real person, a human
For too long you have treated me as a faceless
number and lumped me into a segment in a
I’m not a segment, and I won’t tolerate that
any more. I am an individual.
There may have been a time when I didn’t
have much choice, but now I have many
choices, so you need more than I need you.
I have the power & I am in control.
The realities of today’s
20% of your customers produce 80% of
10% give you 90% of your profit.
A satisfied customer will tell 3 people,
but a dissatisfied customer will tell
12 other people.
It cost 12 times more to win back
a 5% increase in retention would
increase profits 25-55%
And the Internet gives
everyone a voice today
If you have to ask “why,” then you are already in deep trouble
Dissatisfied consumers are a
real threat to your brand
A very dissatisfied customer will tell 20 others
98% of dissatisfied customers never complain,
they just leave
65% of lost customers are due to negative
experiences, and 75% of negative experiences
are not product related
Biggest reason people leave: “they don’t feel
Consumers have trust issues
with business today
Consumers have rising
expectations and falling trust
1980 1990 2000 2010
segmentation is dead
People now come together by choice:
“You are more likely to build a relationship with
someone you meet on vacation than you are
with your neighbors”
A business that attempts to meet everyone’s
needs will end up not meeting anyone’s needs.
Smart marketers don't rely
on age demographics now
People are “age shifting,” and not living lives based
on traditional age stereotypes
The top end of a common demographic (34) may
have almost nothing in common with the low end
Age-based demographics leave out influencers,
gift buyers, and others for whom a message may be
relevant, which get missed because they aren't the
ultimate recipient of the product
Focusing on age can take you away from
emotional or relevant benefits
People lie about their age all the time.
Businesses need to…
know a few customers very well
rather than a large number
have deep insights into customer
behavior rather than statistical
and numeric averages
meet real emotional desires than
A study done for the White House Office of
Consumer Affairs found that in households
with service problems potentially costing
more than $100, 54% would maintain
brand loyalty if their problems were
Only 19% would repeat their purchase if they
were unhappy with the problem's resolution
For less expensive problems (≤ $5), 70% expensive it is to
would maintain brand loyalty if their lose a customer, few
problems were resolved satisfactorily, only recovery efforts are
46% would repurchase if the problem was too extreme
Bottom Line: what’s more
important, profit or
Having a customer orientation is not about
blindly obeying the customer, but about
working with them so that you understand
their needs and ambitions.
“The sole purpose of a company is to
create and retain customers”
The Zappos’ Formula
Zappos encourages customer reps to bond with
customers. Call times are not measured.
A chat that continues for an hour with no sale is
not a crime at Zappos.
The payoff? That representative has the
customer's undivided attention for an hour and Zappos return rate
is about 35% and
the customer is likely to return next time with a although they sold
sale. And they will bring their friends along. over $800 million
worth of merchandise
"We actually talk to our customers,” Zappos said, they have yet to turn
and that means 5,000 leisurely calls a day. It's a profit.
unsexy and low-tech, he said, but "the telephone
is one of the best branding devices.
What to do?
Customer excellence should be part of a
Create superior value for customers through
deeper insights and solve their problems with
Create shareholder value through sustainable
growth, enhanced margins, and a reduced risk
of customer loss.
Customer value is a starting point - not the
financial value of the customer to us, but the
value you create for them.
Who is Richard Meyer ?
17+ years in consumer marketing, with a strong emphasis
on Internet marketing.
Consultant/Owner of http://www.onlinestrategicsolutions.com
Author of the marketing BLOG, http://www.richsblog.com
Someone who realizes traditional branding is dead
and that consumers have all the power.
MBA in Marketing