The document discusses creating power customers rather than power brands by focusing on building deeper relationships with individual customers. It discusses managing customer migration rather than just attrition by focusing on changes in customer value over time. It also discusses creating experience brands by focusing on staging memorable experiences for customers rather than just advertising. The document provides an overview of Hansa Cequity's trip segmentation framework which analyzes customer trips at the store and product level to provide insights to increase customer spending and retention.
Future Economics of Loyalty US - Manu SarnaManu Sarna
The document discusses how retailers can shift marketing spending from traditional mass promotions like flyers to more targeted loyalty programs using customer data. It argues that while flyers are very expensive, retailers see them as necessary but loyalty programs offer a better return on investment. The document advocates for a strategy called "nanotargeting" where customers receive highly personalized offers based on their past shopping behavior to generate more store traffic and sales. Retailers are cautious about this approach due to risks but it is presented as the future of retail marketing.
How does Marketing Strategy Create Value for Customers Journey?PPCexpo
Dow does Marketing Strategy Create Value for Customers Journey?
The opening passage of Charles Dickens’ A Tale of Two Cities paints a reflection of pre-revolution Paris and London. It is also a reasonably accurate description of the state of marketing in the Digital Age.
Loyalty Economics for Retailers - WhitepaperAmy Stephan
Today the path to purchase is radically different than it was 20 years ago. Today's empowered, distracted shopper navigates a fragmented, multi-channel universe. Marketers are re-evaluating the money they spend on traditional tools to win. To meet the needs of shoppers and stay ahead in a competitive landscape, retailers must present shoppers with the right offer at the right time and in the right channel, with messages customized and tailored to meet individual consumers’ needs.
This document discusses shopper marketing and outlines various disciplines and trends in the field. It discusses how up to 87% of purchase decisions take place at the point of sale and more than half of purchases are unplanned. It also outlines trends like the use of augmented reality and touch technologies in shop windows, the growing roles of social media and mobile, the need for consistency across omnichannel experiences, and the shift in loyalty programs away from points towards personalized rewards and engagement. The document emphasizes understanding shoppers, influencing them at key touchpoints along their journey, and improving their overall in-store experience.
The Challenge How to create value in retail banking The recent financial crisis has led many banks to return to more sustainable business models with less-leveraged balance sheets and a much more customer-centric approach to retail banking. In part, this “Back to Basics” trend is a response to regulatory pressure and a need to restore customer and investor confidence.
The document discusses 5 formulas for calculating customer loyalty:
1. Repurchase rate measures the percentage of customers that make multiple purchases.
2. Net promoter score (NPS) measures customer satisfaction and likelihood to recommend to others on a scale from detractors to promoters.
3. Up-selling and cross-selling ratios measure the percentage of customers who purchase additional related products.
4. Frequency and recency measure how often and how recently customers make purchases.
5. Redemption rates measure the percentage of customers who use coupons or loyalty points for future purchases. Tracking these metrics helps businesses understand customer loyalty and identify opportunities to improve satisfaction and retention.
Future Economics of Loyalty US - Manu SarnaManu Sarna
The document discusses how retailers can shift marketing spending from traditional mass promotions like flyers to more targeted loyalty programs using customer data. It argues that while flyers are very expensive, retailers see them as necessary but loyalty programs offer a better return on investment. The document advocates for a strategy called "nanotargeting" where customers receive highly personalized offers based on their past shopping behavior to generate more store traffic and sales. Retailers are cautious about this approach due to risks but it is presented as the future of retail marketing.
How does Marketing Strategy Create Value for Customers Journey?PPCexpo
Dow does Marketing Strategy Create Value for Customers Journey?
The opening passage of Charles Dickens’ A Tale of Two Cities paints a reflection of pre-revolution Paris and London. It is also a reasonably accurate description of the state of marketing in the Digital Age.
Loyalty Economics for Retailers - WhitepaperAmy Stephan
Today the path to purchase is radically different than it was 20 years ago. Today's empowered, distracted shopper navigates a fragmented, multi-channel universe. Marketers are re-evaluating the money they spend on traditional tools to win. To meet the needs of shoppers and stay ahead in a competitive landscape, retailers must present shoppers with the right offer at the right time and in the right channel, with messages customized and tailored to meet individual consumers’ needs.
This document discusses shopper marketing and outlines various disciplines and trends in the field. It discusses how up to 87% of purchase decisions take place at the point of sale and more than half of purchases are unplanned. It also outlines trends like the use of augmented reality and touch technologies in shop windows, the growing roles of social media and mobile, the need for consistency across omnichannel experiences, and the shift in loyalty programs away from points towards personalized rewards and engagement. The document emphasizes understanding shoppers, influencing them at key touchpoints along their journey, and improving their overall in-store experience.
The Challenge How to create value in retail banking The recent financial crisis has led many banks to return to more sustainable business models with less-leveraged balance sheets and a much more customer-centric approach to retail banking. In part, this “Back to Basics” trend is a response to regulatory pressure and a need to restore customer and investor confidence.
The document discusses 5 formulas for calculating customer loyalty:
1. Repurchase rate measures the percentage of customers that make multiple purchases.
2. Net promoter score (NPS) measures customer satisfaction and likelihood to recommend to others on a scale from detractors to promoters.
3. Up-selling and cross-selling ratios measure the percentage of customers who purchase additional related products.
4. Frequency and recency measure how often and how recently customers make purchases.
5. Redemption rates measure the percentage of customers who use coupons or loyalty points for future purchases. Tracking these metrics helps businesses understand customer loyalty and identify opportunities to improve satisfaction and retention.
Momentum – new perspectives on demand generationBANNER
Demand generation is the number one focus of an ever-increasing number of marketers. Faced by ever higher quarterly targets, they need to deliver predictable results from their activity. But, all too often, the traditional six week B2B campaign is simply failing to deliver.
In this white paper we explode the myth of the traditional sales funnel. We show how it is now time to move to a perpetual trigger-based approach. One recognising that different customers will need different information at different stages.
Today, this information can be triggered by easily observable customer behaviour using modern marketing automation systems such as Eloqua. The result is a more personal, more relevant and ultimately more effective way to generate and nurture demand.
Shareholders vs Customers: Now is the time for a balanced equation in retailQuantum Retail
The document discusses balancing the needs of shareholders and customers in retail. It argues that focusing solely on one or the other leads to problems, as pleasing shareholders by cutting costs reduces customer satisfaction, while increasing inventory to please customers hurts profits. The author proposes that retailers use Quantum's inventory management system, called Q, to better understand customer demand and optimize inventory allocation at the store level, maximizing sales and margins while balancing shareholder and customer interests.
This document discusses the evolving role of the customer marketer. It begins by contrasting the traditional role of customer marketer, which focused on campaigns, to the current role, which emphasizes ongoing customer relationships and engagement. The modern customer marketer is challenged with measuring the impact of engagement activities and proving the value of customer marketing. Key metrics for success discussed include renewal rates, referrals, references, and advocacy/engagement. Overall, the role of the customer marketer is shifting from campaigns to building deep, long-term customer relationships and experiences.
Creating loyal omnichannel customers is critical. Retailers who embrace the customer-centric trend and build better shopping experiences will leap ahead of the competition.
Building a blended customer experience isn't easy. Need some help getting started? Check out our latest in retail trend research.
Acxiom moment of truth white paper (10 6-10)[1]Ian Baynes
This document summarizes a white paper about developing new marketing capabilities to optimize customer engagement. It outlines a capability model with four main concepts: 1) Transitioning from broadcasting to narrowcasting advertising to reach the desired audience; 2) Using multidimensional consumer insights rather than a single data point; 3) Creating a marketing central nervous system to analyze customer behavior and optimize campaigns; 4) Achieving personalized and coordinated customer engagement, especially at the moment of interaction. The document argues this model can redirect 15-30% of marketing spend to more effective alternatives.
In this ebook, Copernicus’ Peter Krieg and Jeff Maloy take direct aim at the points in the shopper research process that frequently hold back the profitability and ultimate performance of shopper marketing programs.
They offer the current lay of the land in shopper insights, explaining problem areas in the research process and offering specific fixes to improve the actionability and relevance of results.
White paper - Customer Experience TransformationPablo Junco
This white paper highlights the business value of customer experience as a differentiator and explores three critical enablers to guide organizations embarking on the transformation journey.
A Fashion Brand's Guide to Building Consumer Intimacy in the Digital AgeAndy Larsen
The document provides a guide for fashion brands to build consumer intimacy in the digital age. It discusses the importance of understanding customers' preferences across all touchpoints to foster loyalty through personalized experiences. It outlines five essential steps: 1) having a single customer view, 2) personalization, 3) real-time contextual insights, 4) customer-centric pricing, and 5) sentiment analysis. Following these steps can improve strategic planning, build loyalty, increase retention and advocacy, and enhance the customer experience. The guide is intended to help fashion businesses better connect with consumers and achieve a competitive advantage in today's omni-channel retail landscape.
This document discusses the importance of customer centricity and loyalty for business success. It advocates establishing a customer centric culture and obtaining regular customer feedback. The 80/20 rule is mentioned, where 20% of customers generate 80% of revenue, so it is vital to acknowledge and respect loyal, high-value customers. Customer loyalty stems from a focus on customer experience. The document provides strategies for businesses to become more customer centric, such as using customer advisory boards, monitoring online feedback and interactions, and focusing on customer service rather than just sales and marketing.
Direct selling can build trust, passion, and community around brands. To develop trust, direct sellers must deliver on promises and empower representatives to provide excellent customer service. Brands like Natura have seen success by developing a passionate culture around their mission and ensuring representatives believe in and enjoy promoting the brand. Direct selling also allows brands to become an active part of the communities they serve through personal relationships between representatives and customers.
This document summarizes the findings of a survey on consumer attitudes toward personalization in retail marketing. Some key findings include:
- Consumers are generally okay with personalization if the communications are relevant to them and from brands they have purchased from recently. However, 67% find it intrusive if brands they haven't purchased from use their personal data.
- When asked, consumers indicated they were most comfortable having their data used to provide discounts on past purchases or relevant deals near their store.
- Marketers see personalization as important but need to ensure it adds value for consumers by being relevant and not just personalizing for the sake of it. Otherwise it risks annoying customers.
- The type of brand and a
The document discusses how customer experience is transforming business-to-business sales due to the rise of social media. It argues that companies must shift their focus to downstream customer interactions in order to build loyalty and competitive advantage. A good customer experience is crucial as negative feedback on social media can now be easily shared with large audiences, while positive experiences help build trust and advocacy.
AS SHOPPER MARKETING CONTINUES TO GAIN
A FOOTHOLD IN CANADA, CONFERENCES LIKE
THIS ONE ARE BECOMING MORE AND MORE
VALUABLE. AGENCIES, RETAILERS, AND
MARKETERS ALL NEED TO UNDERSTAND
NOT ONLY THE UNDERPINNINGS OF THE DISCIPLINE,
BUT PERHAPS MORE IMPORTANTLY,
HOW THE DISCIPLINE IS AFFECTED BY THE
NUANCES OF THE CANADIAN RETAIL LANDSCAPE.
THIS DECK IS AN ENCAPSULATION
OF WHAT WE HEARD OVER THE TWO DAYS OF PRESENTATIONS AND DISCUSSIONS.
This document discusses the results of a survey of over 900 senior-level marketers about the state of marketing leadership. Some key findings include:
- Most marketers see creating a cohesive customer journey across channels as critical, though fewer companies actually use the term "customer journey".
- Bigger companies are more likely to have adopted a customer journey focus, but small businesses rate themselves as more effective at creating one.
- Integrating customer data across systems is seen as important for effectively mapping the customer journey, though only 17% of companies have fully integrated data.
This document provides marketing strategies and tactics for navigating a recession. It recommends focusing on customer intimacy through structured and customer-centric efforts. Marketers should evaluate how to convert leads into loyal customers rather than just focusing on lead generation. Both outbound and inbound marketing approaches are discussed, with inbound suggested as a better approach that avoids wasting efforts on uninterested prospects. The document concludes by advising marketers to devise a recession marketing framework and focus on areas where competitors have reduced presence.
51 Types of Marketing Strategies in Use TodayPeter vinosh
An organization's strategy combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the product mix in order to achieve the maximum profit and sustain the business. The marketing strategy is the foundation of a marketing plan.
The document discusses how retailers are eliminating brands and product lines due to having too many choices that confuse consumers. It also discusses how consumers are seeking simpler products and services with fewer features. The document suggests that marketers should shift their focus from products to customers by putting customers at the center and listening to their needs. It emphasizes the importance of customer service, market research, and customer relationship management in building customer-driven brands. The role of the Chief Customer Officer is discussed as the executive responsible for maximizing customer profitability and creating a customer-centric culture.
customer relationship management of hero motor PROJECT REPORTMURMUSOREN
Here are the key points about customer relationship management (CRM) based on the literature:
- CRM involves managing relationships with customers to increase their lifetime value and generate greater profits for the company. It focuses on customer retention and relationship building.
- CRM uses technology like customer databases and analytics to better understand customer needs and behaviors. This helps companies personalize marketing, improve customer service, and increase sales.
- Operational CRM supports front-office functions like marketing, sales, and customer service. It involves managing customer touchpoints and interactions.
- Analytical CRM analyzes customer data to design targeted marketing campaigns, understand customer behavior, and aid business decisions.
- The goal of CRM is
The document discusses key concepts in marketing management. It defines marketing as building profitable relationships with target customer segments through understanding customer needs and delivering value. A successful marketing strategy requires selecting target customer segments and determining the value proposition - the benefits delivered to satisfy customers. Companies must choose a marketing orientation such as production-oriented, product-oriented, or customer-oriented to guide their strategies. The customer-oriented marketing concept focuses on understanding customer needs rather than just production or selling.
Momentum – new perspectives on demand generationBANNER
Demand generation is the number one focus of an ever-increasing number of marketers. Faced by ever higher quarterly targets, they need to deliver predictable results from their activity. But, all too often, the traditional six week B2B campaign is simply failing to deliver.
In this white paper we explode the myth of the traditional sales funnel. We show how it is now time to move to a perpetual trigger-based approach. One recognising that different customers will need different information at different stages.
Today, this information can be triggered by easily observable customer behaviour using modern marketing automation systems such as Eloqua. The result is a more personal, more relevant and ultimately more effective way to generate and nurture demand.
Shareholders vs Customers: Now is the time for a balanced equation in retailQuantum Retail
The document discusses balancing the needs of shareholders and customers in retail. It argues that focusing solely on one or the other leads to problems, as pleasing shareholders by cutting costs reduces customer satisfaction, while increasing inventory to please customers hurts profits. The author proposes that retailers use Quantum's inventory management system, called Q, to better understand customer demand and optimize inventory allocation at the store level, maximizing sales and margins while balancing shareholder and customer interests.
This document discusses the evolving role of the customer marketer. It begins by contrasting the traditional role of customer marketer, which focused on campaigns, to the current role, which emphasizes ongoing customer relationships and engagement. The modern customer marketer is challenged with measuring the impact of engagement activities and proving the value of customer marketing. Key metrics for success discussed include renewal rates, referrals, references, and advocacy/engagement. Overall, the role of the customer marketer is shifting from campaigns to building deep, long-term customer relationships and experiences.
Creating loyal omnichannel customers is critical. Retailers who embrace the customer-centric trend and build better shopping experiences will leap ahead of the competition.
Building a blended customer experience isn't easy. Need some help getting started? Check out our latest in retail trend research.
Acxiom moment of truth white paper (10 6-10)[1]Ian Baynes
This document summarizes a white paper about developing new marketing capabilities to optimize customer engagement. It outlines a capability model with four main concepts: 1) Transitioning from broadcasting to narrowcasting advertising to reach the desired audience; 2) Using multidimensional consumer insights rather than a single data point; 3) Creating a marketing central nervous system to analyze customer behavior and optimize campaigns; 4) Achieving personalized and coordinated customer engagement, especially at the moment of interaction. The document argues this model can redirect 15-30% of marketing spend to more effective alternatives.
In this ebook, Copernicus’ Peter Krieg and Jeff Maloy take direct aim at the points in the shopper research process that frequently hold back the profitability and ultimate performance of shopper marketing programs.
They offer the current lay of the land in shopper insights, explaining problem areas in the research process and offering specific fixes to improve the actionability and relevance of results.
White paper - Customer Experience TransformationPablo Junco
This white paper highlights the business value of customer experience as a differentiator and explores three critical enablers to guide organizations embarking on the transformation journey.
A Fashion Brand's Guide to Building Consumer Intimacy in the Digital AgeAndy Larsen
The document provides a guide for fashion brands to build consumer intimacy in the digital age. It discusses the importance of understanding customers' preferences across all touchpoints to foster loyalty through personalized experiences. It outlines five essential steps: 1) having a single customer view, 2) personalization, 3) real-time contextual insights, 4) customer-centric pricing, and 5) sentiment analysis. Following these steps can improve strategic planning, build loyalty, increase retention and advocacy, and enhance the customer experience. The guide is intended to help fashion businesses better connect with consumers and achieve a competitive advantage in today's omni-channel retail landscape.
This document discusses the importance of customer centricity and loyalty for business success. It advocates establishing a customer centric culture and obtaining regular customer feedback. The 80/20 rule is mentioned, where 20% of customers generate 80% of revenue, so it is vital to acknowledge and respect loyal, high-value customers. Customer loyalty stems from a focus on customer experience. The document provides strategies for businesses to become more customer centric, such as using customer advisory boards, monitoring online feedback and interactions, and focusing on customer service rather than just sales and marketing.
Direct selling can build trust, passion, and community around brands. To develop trust, direct sellers must deliver on promises and empower representatives to provide excellent customer service. Brands like Natura have seen success by developing a passionate culture around their mission and ensuring representatives believe in and enjoy promoting the brand. Direct selling also allows brands to become an active part of the communities they serve through personal relationships between representatives and customers.
This document summarizes the findings of a survey on consumer attitudes toward personalization in retail marketing. Some key findings include:
- Consumers are generally okay with personalization if the communications are relevant to them and from brands they have purchased from recently. However, 67% find it intrusive if brands they haven't purchased from use their personal data.
- When asked, consumers indicated they were most comfortable having their data used to provide discounts on past purchases or relevant deals near their store.
- Marketers see personalization as important but need to ensure it adds value for consumers by being relevant and not just personalizing for the sake of it. Otherwise it risks annoying customers.
- The type of brand and a
The document discusses how customer experience is transforming business-to-business sales due to the rise of social media. It argues that companies must shift their focus to downstream customer interactions in order to build loyalty and competitive advantage. A good customer experience is crucial as negative feedback on social media can now be easily shared with large audiences, while positive experiences help build trust and advocacy.
AS SHOPPER MARKETING CONTINUES TO GAIN
A FOOTHOLD IN CANADA, CONFERENCES LIKE
THIS ONE ARE BECOMING MORE AND MORE
VALUABLE. AGENCIES, RETAILERS, AND
MARKETERS ALL NEED TO UNDERSTAND
NOT ONLY THE UNDERPINNINGS OF THE DISCIPLINE,
BUT PERHAPS MORE IMPORTANTLY,
HOW THE DISCIPLINE IS AFFECTED BY THE
NUANCES OF THE CANADIAN RETAIL LANDSCAPE.
THIS DECK IS AN ENCAPSULATION
OF WHAT WE HEARD OVER THE TWO DAYS OF PRESENTATIONS AND DISCUSSIONS.
This document discusses the results of a survey of over 900 senior-level marketers about the state of marketing leadership. Some key findings include:
- Most marketers see creating a cohesive customer journey across channels as critical, though fewer companies actually use the term "customer journey".
- Bigger companies are more likely to have adopted a customer journey focus, but small businesses rate themselves as more effective at creating one.
- Integrating customer data across systems is seen as important for effectively mapping the customer journey, though only 17% of companies have fully integrated data.
This document provides marketing strategies and tactics for navigating a recession. It recommends focusing on customer intimacy through structured and customer-centric efforts. Marketers should evaluate how to convert leads into loyal customers rather than just focusing on lead generation. Both outbound and inbound marketing approaches are discussed, with inbound suggested as a better approach that avoids wasting efforts on uninterested prospects. The document concludes by advising marketers to devise a recession marketing framework and focus on areas where competitors have reduced presence.
51 Types of Marketing Strategies in Use TodayPeter vinosh
An organization's strategy combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the product mix in order to achieve the maximum profit and sustain the business. The marketing strategy is the foundation of a marketing plan.
The document discusses how retailers are eliminating brands and product lines due to having too many choices that confuse consumers. It also discusses how consumers are seeking simpler products and services with fewer features. The document suggests that marketers should shift their focus from products to customers by putting customers at the center and listening to their needs. It emphasizes the importance of customer service, market research, and customer relationship management in building customer-driven brands. The role of the Chief Customer Officer is discussed as the executive responsible for maximizing customer profitability and creating a customer-centric culture.
customer relationship management of hero motor PROJECT REPORTMURMUSOREN
Here are the key points about customer relationship management (CRM) based on the literature:
- CRM involves managing relationships with customers to increase their lifetime value and generate greater profits for the company. It focuses on customer retention and relationship building.
- CRM uses technology like customer databases and analytics to better understand customer needs and behaviors. This helps companies personalize marketing, improve customer service, and increase sales.
- Operational CRM supports front-office functions like marketing, sales, and customer service. It involves managing customer touchpoints and interactions.
- Analytical CRM analyzes customer data to design targeted marketing campaigns, understand customer behavior, and aid business decisions.
- The goal of CRM is
The document discusses key concepts in marketing management. It defines marketing as building profitable relationships with target customer segments through understanding customer needs and delivering value. A successful marketing strategy requires selecting target customer segments and determining the value proposition - the benefits delivered to satisfy customers. Companies must choose a marketing orientation such as production-oriented, product-oriented, or customer-oriented to guide their strategies. The customer-oriented marketing concept focuses on understanding customer needs rather than just production or selling.
The Ultimate Guide to Customer Loyalty in 2017Margaret Link
For brick-and-mortar businesses, building true customer loyalty is both an art and a science. At Thanx, we're bringing you the stats, tools, and takeaways to help you capture data that grows business through customer loyalty.
This document provides an overview of developing an effective customer marketing strategy. It discusses defining goals, understanding target audiences through customer personas and segmentation, mapping products to customer segments, and designing a demand generation strategy. The strategy aims to increase retention, cross-sell, and upsell existing customers by delivering personalized experiences across the customer lifecycle. An effective strategy requires alignment between various teams like marketing, sales, success, and understanding each customer's journey.
E book puttingthecustomer_atthecenter_accountplanningstrategies_togrowrevenue...zubeditufail
The document discusses account planning strategies for growing revenue by putting the customer at the center. It emphasizes understanding each customer as a complex marketplace and developing long-term business relationships through collaborative account planning. Key elements of effective account planning include researching customers, competitors, and one's own company for insights; treating every customer interaction as a promise to benefit the customer; and focusing on customer satisfaction, retention, and growth over the long run.
The document discusses 5 major forces placing pressure on companies: customer retention, shift to service-based differentiation, one-to-one marketing, expanded product diversity, and power shifting to customers. It emphasizes the importance of understanding customer costs, profitability, and lifetime value in order to prioritize high-value customers and make strategic marketing decisions. Customer lifetime value (CLV) treats each customer as an investment and focuses on the long-term profit stream from customers, helping companies evaluate marketing ROI and target attractive new customers.
In a world where consumers have infinite access to information and choices, brands must embrace "the power of now" and focus on small, immediate interactions rather than large marketing campaigns. The author proposes a strategic growth model for retailers centered around five experiential elements: harmonized channels, personalized experiences, localized context, social influences, and amplified relevance. To succeed, brands must own the "micro-moments" that occur when consumer needs arise by being present in a compelling and relevant way.
This document provides guidance on marketing financial services firms. It discusses the need to update traditional marketing approaches to compete in today's market. Key recommendations include focusing marketing efforts on the customer experience and outcomes rather than just products, ensuring consistency in branding across all touchpoints, prioritizing personal relationships and communication with clients, and learning from growth hacking techniques by integrating marketing into daily operations. The overall message is that marketing must be a unified, ongoing process rather than an isolated function in order to build a strong brand in financial services.
Beyond the Clicks_ Building Loyalty with Effective Digital Marketing in Retai...pixel studios
Move beyond clicks and build lasting loyalty with your customers through effective retail digital marketing. Learn how to craft a compelling brand narrative, personalize the customer journey, and leverage the power of storytelling. Embrace omnichannel engagement, build a thriving online community, and prioritize customer service to turn clicks into connections.
Let customer insight guide your bank's content marketing strategySounds About Write
While many banks and financial institutions continue to turn to content marketing to engage their prospective buyers and customers, the reality is the overwhelming majority are struggling to achieve success.
Aaron Musgrove of The Brand Makers, a sponsor company at the marcus evans CMO Summit 2023, discusses how CMOs can ensure branded gifts add value to a marketing campaign.
This document provides an overview of marketing as both a philosophy and set of techniques. As a philosophy, marketing puts customers at the center of an organization's considerations and values understanding and responding to customer needs. As techniques, activities like market research and advertising are used to learn about customers and communicate product benefits. While techniques have been adopted, many organizations still need to fully develop a customer focus, which is core to the marketing philosophy. The document discusses how marketing differs in centrally planned versus market-based economies and provides definitions of marketing from leading professional bodies.
Changes in consumer behavior, fueled by technology, require new marketing capabilities. Each year, $112 billion in advertising is wasted1. A new capability model, to optimize customer value at every interaction, is required. Progressive marketers that embrace this capability model have already realized hundreds of millions annually
for their firms.
This paper explores the fundamental changes in the business of marketing, then introduces a capability model for driving customer engagement in a connected world. This capability model enables robust optimization at “the moment
of truth,” when customers engage directly with brands.
Consumer packaged goods companies are facing challenges in traditional markets and need to adjust their marketing strategy. They must embrace digital and multichannel approaches to engage consumers who now shop anytime, anywhere. Data-driven, direct-to-consumer initiatives can increase engagement by sending personalized messages through the right channels. To successfully engage consumers, companies should take five steps: define objectives; obtain appropriate consumer data; ensure relevance through segmentation; put insights into practice with tailored communications; and measure, learn and adapt strategies.
1. The document discusses the emergence of customer relationship management (CRM) as a business strategy to focus on building relationships with customers rather than just individual transactions.
2. It outlines some of the key benefits of CRM like increased sales, customer satisfaction and margins as well as decreased costs. CRM allows for more effective cross-selling of products.
3. The document also explores how industries have been affected by CRM and how businesses now operate in the age of customization and personalization enabled by new technologies.
This document provides an overview of cross-channel marketing. It discusses how most customers experience a fragmented brand experience across different channels. To improve this, marketers must coordinate efforts across channels and have a unified understanding of customers based on data. Having an identity mapping strategy is key to connecting customer interactions and IDs across channels. This allows delivering a consistent experience. The document also stresses the importance of attribution to understand what is driving results across channels.
Similar to Hansa Cequity Creating Power Customers (Global) (20)
Customer experience strategy-Return on Customer not ROI!Ajay Kelkar
This document discusses how marketing is changing to focus more on customer experience and data-driven personalization. It notes that customer expectations have changed and they want personalized, easy interactions across channels. It emphasizes that data will rival brand equity in importance if used to improve the customer experience. Finally, it discusses how to embed analytics in a company, the need for analysts to tell stories with data, and lessons learned around transforming marketing approaches.
Hansa Cequity is part of the RK Swamy Hansa Group, a leading multi-disciplinary marketing communications and services group in India and the US with over 40 years of experience working with leading Indian and multinational companies. Hansa Cequity helps companies reach every one of their customers individually and intelligently by bringing together experts in data integration, analytics, and digital marketing to build customer insights from big data and deliver targeted campaigns.
The document discusses the applications and maturity of analytics in India. It describes an initiative by NASSCOM and Hansa Cequity to collect over 250 case studies on analytics solutions from Indian organizations. The case studies covered applications across various industries for customer experience, revenue improvement, cost/operations optimization, and risk/compliance management. An expert panel reviewed the case studies. Many case studies demonstrated predictive and prescriptive analytics capabilities in areas like mining, energy/utilities, and other industries.
How Hansa Cequity can help you enrich your Customer Equity?Ajay Kelkar
Cequity is a unique company. We help bring together your digital, analytics & campaign management into a unique Customer Relationship Centre that enriches your Customer equity. We do this by using superb Customer marketing processes that align these different disciplines into a coherent offering.
This document discusses how Hansa Cequity helped a leading digital satellite television provider increase its Average Revenue per User (ARPU) through a Subscriber Preference Modeling (SPM) framework. The SPM framework utilized customer data and analytics to create customized campaigns tailored to individual subscriber preferences and needs, rather than mass campaigns. This approach resulted in higher customer engagement, response rates, and incremental revenues for the client compared to their traditional marketing strategies. Key aspects of the SPM framework included customer segmentation, predictive models to determine preferred products and offers for each subscriber, and campaign design and optimization across multiple channels. The client benefited from increased ARPU, reduced customer churn, and more cost-effective campaigns through this customized data-driven
Targeted Campaigning to improve Response!!Ajay Kelkar
The document discusses how Hansa Cequity helped a leading digital satellite television provider sharpen its competitive edge through a new campaign management framework. The framework leveraged customer segmentation and preferences to increase key metrics like ARPU and reduce churn through more targeted campaigns. It shifted the approach from pushing predetermined offers to identifying customer behavior patterns and allocating the most relevant offer. This allowed for increased cost savings compared to conventional analytics approaches.
Hansa cequity creating power customers (global)Ajay Kelkar
The document discusses creating power customers rather than power brands by focusing on building deeper relationships with individual customers. It discusses managing customer migration rather than just attrition by focusing on changes in customer value over time. It also discusses creating experience brands by focusing on staging memorable experiences for customers rather than just advertising to build brands. The document provides an overview of Hansa Cequity's trip segmentation framework which analyzes customer trips at the store and product level to provide insights to improve business transformations.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
Accelerating Customer Insights & enhancing Business impactAjay Kelkar
How do you convert data into insight and then use that to drive business impact. Here are some lessons from my experience in HDFC bank and also as an entrepreneur at Cequity
Cequity provides a marketing solution called Cequity ACETM for retail banks that allows banks to gain insights into customer data and behavior. This helps banks increase customer value, experience, and efficiency while also identifying risky customers and migrating customers to electronic banking. Cequity ACETM integrates customer data from various bank systems and uses analytics to create a single customer view. This enables banks to acquire profitable customers, maximize customer share of wallet, and increase customer retention through targeted campaigns.
1. Creating Power
Customers
From Power Brands
The Marketing Mind Series
Thoughts and viewpoints from
an analytical marketing professional on
all things marketing, from
the elementary to the profound.
2. Contents
Creating Power Customers not Power brands
Marketing to Power Customers
Manage Customer Migration not Just Attrition
Creating Experience Brands
Building a Successful Experience Brand
About the Author
The Hansa Cequity Trip Segmentation Framework
The Hansa Cequity Advantage
3. Creating Power Customers From Power Brands
I'm waiting in line with my 4-year-old daughter, Tina, at a fast-food restaurant. It is
1:30 on a Saturday afternoon, and we've "forgotten" to eat lunch. Tina is hungry and
tired from running errands with me. It's been raining all day, and we're both soaked.
Now we've been waiting ten minutes to place our order seven minutes beyond the
industry standard. Finally, I order for Tina. "Sorry, sir," the salesperson says. "We can
give you your meal, but there are no more toys." Five-year-olds may understand "no
toys," but Tina begins to wail. For her, this restaurant is about trinkets, not food. In
her eyes, its failure to supply the toy has condemned the brand.
It happens every day. Customers are disappointed and even mistreated. Most
companies fail to quantify the cost of poor service and instead mistakenly believe
that more advertising will somehow take care of the problem.
Now Tina doesn't want to go back to that restaurant. Like many dissatisfied
customers, she won't risk another disappointment. She is the principal decision-
maker in this meal occasion fast-food lunch and her preference carries the rest of
the family. Moreover, with a life expectancy of more than 70 years, Tina is worth at
least a few hundred dollars in discounted revenues to this restaurant chain and even
more if she grows up to become a "group influencer" or the head of a large
household.
One often reads about "power brands" and how some of the larger FMCG companies
have tried to pull out of the recession by focussing on these brands. But isn't it time
for businesses to look for "power customers" - who contribute disproportionately to
the company's topline and profits. But to put in place a "power customer strategy"
needs companies to think about individual customers and not amorphous masses.
Most marketing in modern economies are however dominated by "product centric"
initiatives which rely on traditional mass marketing channels and advertising as the
dominant medium. On the other hand, retailers, banks, airlines, and other service
businesses are leveraging their superior customer relationships and retailing skills
to take a share of the limited customer budget.
But there is a way out. If brands could form deeper relationships with their
customers, they would enjoy greater share of wallet. By expanding the amount and
range of business they do with individual customers, they would be in a position to
use relationship pricing-trading off margin on individual products for volume in the
total bundle of offerings-to compete more effectively with the product specialists.
Developing this kind of customer franchise requires a radically new approach to
Marketing.
Increasingly developing economies are becoming more service oriented, but the
mindset still remains manufacturing focused. It is far easier to market a "product"
which a consumer can hold versus a "service" which is by nature fragmented. There
is also an increasing trend towards "servisation" of products. As modern economies
move increasingly towards services, consumers move from commodities, to services
to brand experiences. Case in point, coffee is priced low at the local wholesale
market, but is sold as an "experience" at coffee retail chains such as Starbucks for
$5/cup.
1
4. Creating Power Customers From Power Brands
A silent revolution is brewing in the minds of urban consumers. And the revolution is
about a change in expectation about how brands "build relationships" with
customers. The question is, are marketers who have been used to "building brands"
able to fathom the changes that "building relationships" demand? And what do
traditional Marketers need to do to effectively compete in the service economy?
Marketing to Power Customers
The first paradigm shift the marketer needs to make is to think "one to one" vs.
thinking mass. Most marketers are used to thinking mass, and it becomes a struggle
to think "one on one". Most service providers like advertising and promotion
agencies are geared to tackle mass market action. Today technology allows the
marketer to run extremely personalized campaigns. Increased relevance and
personalization can actually allow marketers to "mass customize" relationships.
In fact, most business that drive "Database acquisition" are today not in "Retention"
mode. As the Cellular, Retail, Insurance and Banking businesses mature, those
opportunities will open out. And yet the opportunity to build "Relationship Marketing"
in developing economies is large because most consumers are still eager to hear
marketing messages despite being inundated with huge amounts of junk mails and
telephone calls. Consumers are far more amenable to allow marketers to build a
relationship if the message is "relevant".
The other issue is that most corporate decision makers still don't have a body of
"Relationship Marketing" experiences which spell winning case studies. There is a
huge need to evangelize with top management on the science of marketing to
"power customers". Marketing to individual customer segments is an expertise
which needs far more "Left brained" thinking than the usual forms of marketing.
Even today the best marketers would rather produce a "winning advertising
campaign" which is largely visible than invest energies in the analytical methods
required to market to "Power customers". An example of this is how a Retailer can
use the huge volume of customer data that he has to devise profitable "customer
paths" within his stores.
At Hansa Cequity, we call this methodology Trip segmentation. Every customer is
different from the other, and every trip he makes to the store is different from his
other trips. Trip Segmentation helps retailers analyze these trips individually, and
helps them increase the overall revenue from the customer by:
Increasing the frequency of trips to the outlet
Increasing the value of each trip to the outlet
Trip Segmentation describes trips in terms of a set of variables (e.g., total dollars
spent) and segments customer shopping trips into groups, and identifies differences
that can be leveraged to create value.
2
5. Creating Power Customers From Power Brands
Manage Customer Migration
not Just Attrition
Based on insights from McKinsey research studies, the greatest profit lever is to
focus on customer migration - the change in customer value over time. Managing
customer migration is a powerful new approach that is used very successfully at
Hansa Cequity. In the credit card industry, for example, the annual value lost from
customers who defect is only one-third of that from those who remain customers
but use their cards less.
The implication for marketers is that there is an opportunity, which is substantially
larger than traditionally reported by top loyalty research; but focusing on defection
alone misses most of it. Managing customer migration is more powerful than other
approaches for several reasons. It captures much more of the total opportunity than
narrower measures like defection. And it is a leading indicator that allows marketers
to catch customers before they are gone for good. Also managing migration is highly
actionable because it relies on readily available customer behavior data.
Of course this does not mean one does do not look at attrition. Declining customer
loyalty means that customer retention is under pressure in many markets. The
problem is exacerbated by online media which today allows you to get comparative
quotes for almost any product or service in seconds. All the more surprising then
that most marketing budget is disproportionately allocated to acquisition. This
makes perfect but unprofitable sense when you consider that if little money is spent
on retention without any formal strategy, you will lose large volumes of customers.
You will also feel compelled to constantly increase customer targets to top up a very
leaky customer base. It has been widely documented that new customer acquisition
is nearly five times costlier than retaining existing customers. Still most marketers
end up apportioning lower marketing budgets for customer retention. Solving the
problem of customer retention is not complex, but it does require the development of
a focused plan and the ability to observe and measure customer behavior.
One of the great challenges in retail is identifying customer attrition and retaining
customers that may leave the brand. Retailers are extremely savvy in measuring
Gross margin returns on three vectors: GMROI (Gross margin return on Inventory),
GMROF (Gross margin return per square feet) and GMROL (Gross margin return on
labour). At Hansa Cequity, we do a lot of work with retailers on the overall customer
strategy. One vector that we added to this troika is GMROC (Gross margin return on
customers).
What needs to be kept in mind is the fact that retail attrition is silent: customers do
not need to close an account or terminate a service. They simply walk out and never
return.
3
6. Creating Power Customers From Power Brands
Creating Experience Brands
The third paradigm shift the marketer needs to make is to look beyond advertising to
build the brand. Years ago a successful birthday party would be centered on a cake
made from scratch. Today, a "successful" birthday party must be staged at some
special place like McDonalds. And customers are willing to pay a thousand times
more for such a birthday "experience" than for the raw ingredients of a birthday
cake!
Historically, modern economies have three outputs - Commodities, Goods and
Services. "Staging Experiences" has become a fourth, previously unarticulated and
with higher value economic output. While Commodities are fungible, Goods tangible
and Services intangible, Experiences are memorable.
Staging experiences is about engaging customers. The richest, most memorable
engagements involve all Four Realms of an Experience - Entertainment, Education,
Escape, and Estheticism plus the five senses. Not surprisingly, the notion of
"experience brands" was developed in the context of the retail market, specifically
Retail & Banking. According to the above theory, a brand is a promise to consumers
that they can rely on to guide their choices. There are four general approaches to
developing such a promise. While not necessarily mutually exclusive, these
approaches represent different levels of ambition and can have different levels of
financial/bottom-line implications for the company. The simplest approach (level) is
called "threshold branding". This is limited to communication and requires
promoting name recognition and an image of corporate strength and stability. This
branding approach can foster brand awareness, but does not offer any differentiation
in the market place.
The next level of branding is "functional branding." Here the focus is on product
features. The brand promise needs to emphasize specific functional benefits and
distinctive attributes. Advertising is then used to communicate these differences.
This works well for pharmaceuticals where differences in product specifications are
important to consumers/physicians. The vulnerability lies in fast-moving me-too
players.
The third approach (level) of branding is termed "image branding." The focus is not
only on product features and benefits, but on communicating an image that is
appealing to the consumers' ego, and is consistent with personal aspirations of
targeted segments. Image brands are most applicable for products with visceral
appeal, such as cars, perfumes, etc.
The final and highest level of branding is "experience branding." This, although the
most challenging to achieve, once established, is the easiest to defend. Also, this is
most applicable for organizations that are in the service industry and have a large
number of customer-facing employees.
4
7. Creating Power Customers From Power Brands
The focus is on the "experience" that the customer gets. Not only is this experience
required to be of highest quality but it also needs to be consistent over multiple
occasions and across multiple touch-points.
Note that the first three levels of branding can be executed via marketing initiatives.
However, experience branding requires the "people" to "live the brand." It requires a
strategic high-level commitment in the organization, followed by measurement,
communication, and training to all employees at all levels.
Building a Successful Experience Brand
A successful experience brand delivers effectively on its promise of a particular
experience. The steps to building such a brand are straightforward but require
thorough application and consistency. They are, First, to define an experience that
customers will value; Second, to deliver that experience through everything that the
company does with particular emphasis on front-line employee behavior; Third, to
measure the impact of that delivery on the customer; and Fourth, to lead and
motivate the organization to deliver the experience consistently.
At this stage, most service organizations are far too focused purely on customer
acquisition. But as the market for services evolves, companies will need to deliver
relevant value to "Power customers" and build "experience brands" to survive and
grow in a competitive environment.
5
8. Creating Power Customers From Power Brands
The Hansa Cequity Trip Segmentation
Framework
It is highly obvious that individual customer needs and resultant shopping habits
vary greatly from each other. Leveraging these huge amounts of data enable
retailers to increase the revenue accrued per customer, by being able to analyze
each shopping trip individually. Hansa Cequity's unique Trip Segmentation approach
creates further opportunities to sell more, by describing trips in terms of set of
variables (e.g., total rupees spent), segmenting trips into groups, and identifying
differences that can be leveraged to create value. What it achieves in offering is a
ready opportunity to:
Increase the frequency of trips to the store, and
Increase the value of each trip to the store, by grouping customer shopping
visits in clusters based on intent, time and demographics.
For example, a customer buying groceries may not be inclined towards buying
doughnuts, but a customer buying dairy products and sweets shows a higher
probability of buying dough nuts. By being aware of individual customer trends, we
should be able to propel our customers through aisles where doughnuts and other
related bakery products are merchandised. Another piece of information that may
be come handy is the fact that customers would show a greater propensity to buy
dairy products in the morning than in the later hours of the day.
Changing Retail Business Dynamics
Increasing number of mass-campaigns have
Changing Customer Requirements negative effect customers
Customer requirements change with trips Need to innovate and come up with
Product categories bought in each trip is promotions suited to every customer trip
based on this requirement
Referencing with Time Understand Customer Mindset
Products sold in the morning need not be sold Customer buying "dairy products" have a
in the evening different mind set to the customers buying
Month-end or a weekend shopping is different "groceries" for stock up
to middle of the month/week shopping Purchase of products will change according to
his mind-set
6
9. Creating Power Customers From Power Brands
Process Methodology
Store Profiling Product Profiling
Helps identify the store dynamics Helps analyze product assocoations
based on the customer demographics, and customer behaviour with respect
customer behaviour, MPV and store to particular product.
catchment area profile
Demographic Details
Promotion Details
Market Potential
Store catchment
Category Details
Product Details
Transaction
area profile
Customer
Customer
behaviour
Product
Details
Analyze customer behaviour and trip type Value Capture the transaction details for product
distribution categories
Creating derived variables to capture dynamic Create the derived variables to capture
behaviour and trends timeline trends
Create indices and score customers Create product association matrix
Construct Profiles Construct profiles
Trip
Store Profiles Segments Products Profiles
Insights and Actionables
The following is an overview of insights and actionables that are generated post
implementation of the Hansa Cequity Trip Segmentation framework:
What products are most likely to be in the basket on Immediate Need trips?
Which brands skew toward smaller fill-in trips and reflect demographic tilt in
case of smaller households?
Which product is sold more in quick "Urgent Need" trips leading to more
impulse shopping?
Which products should be merchandised together to improve their sales?
Which product is more susceptible to the shelf influences?
Which customers can be given promotions based on their current trip data,
thus increasing their frequency of trips?
What kind of in-store promotions and campaigns need to be created to
increase customer wallet share for the particular shopping trip?
How does your trip mix vary across outlets and retailers?
What are the different types of trips taking place in my store and what are the
profiles of customers for such segments?
7
10. Creating Power Customers From Power Brands
The Hansa Cequity Advantage
Our unique trip segmentation framework analyzes customer trips at two levels -
store and product. For every store a complete profile of the customers is created
basis their age, gender, pin code wise distribution, visit frequency, ticket size,
vintage, items purchased, etc. At a product level the profiling is done basis product
association, transactions and promotions. This information is then mapped to draw
insights, identify opportunities and recommend new tactics for better business
transformations.
Read our insights and thoughts on how to drive better business transformations
through analytics based approaches at http://blog.hansacequity.com/.
8
11. Creating Power Customers From Power Brands
About the Author
Ajay Kelkar is the COO and Co-Founder of Customer Equity Solutions (Hansa
Cequity), a marketing analytics company. He has over 18 years of experience in
customer-driven marketing across a wide range of industries like soft goods,
banking & financial services & retail. In his earlier stints he was Head of Marketing
at HDFC Bank and prior to that at Shoppers' Stop. He is among the most respected
analytical marketing professionals in India. He has extensive experience in starting
with simple data-led marketing and scaling-up complex analytics based cross-sell,
up-sell programs.
Know more about Hansa Cequity at http://www.hansacequity.com/.
Read our insights and thoughts on analytics and better marketing practices at
http://blog.hansacequity.com/.
9