Retailers are eliminating brands
The world's biggest retailers are wrestling with having too many types of brand-name products. At the same time, shoppers are buying less and looking for bargains. Unless a particular brand is a top seller in its category, it's getting knocked off the shelf -- and sometimes getting replaced by a cheaper store brand. Market research firm ConsumerEdge Research, expects Wal-Mart and other sellers will trim several name-brands across categories in coming months, or negotiate deals to get better pricing.
Too many brands & too
many line extensions The feeling is that as these companies keep extending their [product] lines, it's only causing confusion for shoppers and not really driving them to buy more products.
And way too many brand
choices for consumers As a consumer, "Do I really need to decide between 15 different types of detergent when I go to a store?"
Consumers are saying “enough is
enough” Easy access to information and friction- free purchasing is making consumers ever more agile—and less loyal. Outraged by corporate malfeasance, people are punishing companies for unethical governance. Even those who don’t need to economize are pursuing a more wholesome and less wasteful life.
In an era when consumer
demand for simplicity is increasing Consumers are seeking uncomplicated, user-friendly products and services that simplify their lives.
The new consumer buzzwords “functional+simple”
Captures the phenomenon of simple, small and/or cheap products and services; Smaller and/or limited number of features, to keep prices low. Simpler, or easier to use, for inexperienced consumers. Energy efficient (or not using any traditional energies at all) and/or easy to repair and/or waste-reducing. Robust, as some of them are used in rugged conditions. Well-designed .
Which in turn decreases the
value of the brand But as marketers continue to focus on value to lure consumers away from private label, or retail store brands, some analysts questioned if food makers will have a tough time getting consumers to trade up again.
Old metrics are being replaced
OLD METRIC NEW METRIC Product Profitability Customer Profitability Current Sales Customer lifetime value Brand Equity Customer equity Market Share Customer equity Mass Market Ultra target market Segmentation Microsegmentation Mass Message Personally relevant messages Talking Listening Gross Rating Points Brand Ambassadors via social media
Customer Service Empower customer service
people to solve customer Customer problems on the spot. Service Customer service is not an integral part of your brand & company. Have your marketing people call customer service as a customer to ensure that the experience is representative of your brand. Ensure that customer service people have a way to alert key decision makers as problems become prominent. Quantify customer service complaints and solve bottlenecks quickly or else your marketing dollars could be wasted.
Market Research Don’t use market
research to validate what you should already Market know. Research Market research should provide insights not validation. Social media can provide a wealth of valuable insights in real time. Web analytics can actually show you how consumers are going through the decision making process when it comes to your product. Ensure that when you do market research that the panel is representative of your best customers. Market research online can save you lot’s of time and money.
Customer Relationship Management Focus
all your efforts on managing the customer relationship. CRM This means listening to what your customer wants and ensuring that the relationship is of value to your customers Segment your audience by demographics and psychographics to ensure that CRM communication is personally relevant. Measure and optimize CRM programs and evolve into more segments if necessary. This is essential in an era of microsegmention.
Research & Development Is your
R&D customer focused or do they do what’s best for your business and production costs? R&D If you have a hard time explaining what your product does to customers in prototype than you’re way off the mark. Focus on making life easier for consumers. If you improve the product but not the customer brand experience you’re farting in the wind.
Chief customer officer “An executive
that provides the comprehensive and authoritative view of the customer and creates corporate and customer strategy at the highest levels of the company to maximize customer acquisition, retention, and profitability.” Responsibilities include; Drive profitable customer behavior Create a customer-centric culture: Delivering and demonstrating value to the CEO, the Board, peers, and employees Your decisions reveal who and what you really value
Drive profitable customer behavior To
help customers spend more, and more often, the CCO must focus on initiatives such as; profitability segmentation customer retention customer loyalty, satisfaction improving the customer experience. CCOs should use in-depth customer insight to inform the sales and marketing efforts to acquire more of the “right.
Delivering and demonstrating value CCO
must strive to deliver demonstrable value to all stakeholders, such as the CEO, the Board, and peers. CCOs must be very clear about their performance metrics to allay concerns about performance.
Create a customer-centric culture Strong,
customer-centric culture complete with accountability and ownership at all levels in the company. CCOs must prioritize customer initiatives to drive the most profitable initiatives with the greatest customer impact. They must put a face on customers and help employees (especially the non-customer- facing employees) remain focused on driving customer value.
In the end…. Your decisions
on how you treat your customers reveal who and what you really value. The best marketing in the world is not going to save your company or brand if you can’t execute and put the customer at the center of everything you do. Peter Drucker was right “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself”
About me Richard Meyer
My CV http://www.richardameyer.com My marketing BLOG http://www.richsblog.com MY DTC BLOG http://www.worldofdtcmarketing.com http://www.twitter.com/richmeyer http://www.facebook.com/richardameyer http://www.linkedin.com/in/richardameyer