Conceptual Framework of ReConnect
Process to strengthen Consumer Brand
Relationship
Nishant Singh
Dr Bilal Mustafa Khan
Dr Anuja Pandey
Presentation Flow
• Consumer as a source of Competence
• Evolution from Brand to Consumer driven Marketing
• Rising cost of Consumer attention
Introduction
• Consumer Experience
• Consumer Decision Journey
• Co- creation new pathway to value
Literature
Review
• New age engagement platforms
• ReConnect Process for 2-way Engagement
• Profitable Consumer Engagement
Conceptual
framework
• Reconfiguration of Resource allocations
• Co- creation than Validations of decisions
Managerial
implications
• Limitations & Future research potentialLimitations and
Future Research
Introduction
Shifting locus of Competence for the Brand
Seller dominated market to virtual marketplace
Future sources of Competence:
• Co-create personalized experiences
with consumers
• Build Efficiency and Innovation
around Brand core
• Rapid Reconfiguration of Resources
Evolution from Brand to Consumer driven Marketing
visible shift to build relationship and reduce consumer’s risk
Managers or teams are
assigned to product
categories or brand
Managers or team are
assigned to segment of
similar consumer
Success is measured by
volume of sales and
market share
Success is measured by
consumer-level profitability
and depth of relationship
Developing and testing of
products based on
product or ingredients
related competencies
Development and testing
based on segment needs or
Co –creation with Consumers
Focus is on developing
marketing skills
Focus is on developing
knowledge of consumer
segment
Era of Aggregation (pre 00s) Era of Disaggregation (post 00s)
Organization
structure &
leadership
Key Business
success/
growth
measures
New Product
Development
& Innovation
Training
SBM*
*Strategic Brand Management
• In an information rich environment consumer disaggregation is vast more efficient and
profitable than aggregation
• Disaggregation is seen as an opportunity to restore balance power between manufacturer
and retailer, it provide medium to influence consumer behavior independent of retailer
Rising cost of Consumer Attention
triggered by quality (complete views) than quantity (total views)
• Shift in Consumers preference form information to entertainment through
captive and non-captive platforms led to the need for sharper definition
of purpose of campaign and linked strategy before developing
communication stimulus
• This led to transition from concept of ‘Lean Advertising’ to ‘Advertising
Symbiosis’- process of creating content that allows for mutual benefit, of
both the consumer and the advertiser
• In the 1950-60s the standard length of a TV ad was 60 second. By the
1970-80s, 30 second became the norm. And by 2005, one‐third of all TV
ads were only 15 second long
• In 2013, the average American was exposed to about 52,000 TVCs, % of
ads considered fully viewed and getting high attention has decreased
dramatically, from 97% in the early 1990s to less than 20% today (note:
time is not strictly ordered as studies overlap in time of data collection or publication)
In Sep’04, Dove launched “Campaign for Real Beauty” campaign, the purpose was to
challenge the stereotypes set by the beauty industry. The strategic objective was to :
‘Create Advertising That Inspires Women And Society To Think Differently About What Is
Defined As Beautiful’’
Stage 1: Billboard Stage 2: Firming Stage 3: Dialouge Stage 4:112s Film ‘Evolution’ Consumer PoV
Literature
Review
Consumer Experience
revolution from being an audience to actively engage with Marketers
Not so long ago, every business assumed that the keys to success were the highest quality product,
the best value for the buck, and the best consumer service. Now all we hear about is providing the
best “consumer experience.”
Pine and Gilmore (1998-99) were some of the first scholars to address the notion of the consumer
experience. Since then several authors (Carbone & Haeckel 1994 and Johnston 1999, Shaw and Ivens
2002, Voss 2003, Prahalad and Ramaswamy 2004, Meyer and Schwager 2007), have made the point
that the consumer experience may provide a new means of competitive advantage.
Providing a good experience is critical because it affects consumer satisfaction (Liljander & Strandvik
1997), delivers consumer loyalty (Yu & Dean 2001, Pullman & Gross 2004, Mascarenhas et al. 2006),
influences expectations (Johnson & Mathews 1997, Flanagan et al. 2005), instils confidence (Flanagan
et al. 2005), supports the brand (Grace & O‟Cass 2004 Berry & Carbone 2007) and also creates
emotional bonds with customers or, conversely, leads to emotional scarring (Pullman and Gross 2004).
A recent article in the HBR “The Truth About consumer Experience” defines it as your customer’s end-
to-end journey with you, not just the key touchpoints or critical moments when customers interact with
your organization. Consumer experience is the cumulative impact of multiple touchpoints over time,
which results in a real relationship feeling, or lack of it.
Hence, Consumer Experience is the #1 priority for CMOs in 21st Century
Once you know how to improve your consumers' experience, you need to also know how to
benchmark it. Remember the old adage, “If you can’t measure it, you can’t manage it.” So how do you
measure consumer loyalty and relationships? One new metric now commonly used is called the Net
Promoter® Score (NPS).
Trigger – First level action
Active scanning
Consideration set
Purchase
I went to a
retailer
nearby
I explained
my problem
to the sales
guy
He suggested
3 brands of
Refrigerators
that fitted my
needs
I choose the
brand that
best fitted
my needs
and feelings.
19952015
I read reviews,
descriptions, social
info by experts
and people like me
I chose the
brand that best
fitted my needs
and feelings
based on that
information
I started with
Googling my
problem
Then I decided
where to buy
it, based on a
mix of price,
convenience
and service
Consumers are shopping in a different way that requires companies
to change how they think about and interact with their consumers
Consumer Decision Journey
my journey for buying a
refrigerator
Co Creation a new pathway to Value
Co-Creation has attracted serious research attention in the recent past
C.K.Prahalad and Venkat Ramaswamy (‘00) introduced the concept of co-creation in their HBR article
“Co-Opting Consumer Competence” in which they said that consumer are not only customizing, they are
participating with providers to create value. Co-created value arises by the personal experiences, by
some uniqueness, by better and services in form of satisfaction, loyalty or through strong relationship.
Co-creation has been implemented by very few
counted companies which have brand value and
highly established (refer the table next).
The benefits of co-creation cut both ways. While
consumers benefit from greater personalisation and
value as a result of co-creation processes, the
motivation for companies is about building
competitive advantage by turning knowledge from
customers into for their organisation.
‘Connect + Develop’ is P&G’s version of open
innovation that encourages and enables partners
and other stakeholders to contribute and assess
new ideas. A.G. Lafley, the CEO of P&G quotes:
In order to trigger change by innovation co-creation
needs to be implemented as disruptively as
necessary and as non-disruptively as possible.
Key Scholars referred for the literature review
Linda Hollebeek
University of Auckland
David Allen Aaker
Prophet Consultancy
Dr. V Kumar
"Legends in Marketing"
Marc Rutschmann
University of St. Gallen
PAUL D. BERGER
Boston University
C.K. Prahalad
1941 – 2010
Conceptual
Framework
companies admit they have
limited to no understanding on
how their customers interact
with them digitally*
*a survey by The Economist in 2014
Consumer Brand Relationship Spectrum - Stranger to Advocate
Things consumers wish marketers knew about them
Building great product is just not enough, it need to have Triggers too
1
4
New age engagement platforms
Means of interacting with consumer at segment or even at individual level
Virtual
Community
Consumer
Care centre
In an information rich
environment these are
far more efficient and
profitable platforms
Consumer ‘ReConnect’ Process
Engage with Consumers to drive Loyalty & Advocacy
After servicing his/
her need, check
his/her consent
for ReConnect
Capture the connect
and profile data in
integrated CRM tool
Create platforms for
periodic & relevant
2-way exchange
with the Consumer
Track the Consumer
connecting with the
Brand using any
Touch points
Strengthen the
relationship by
offering mutually
beneficial stimulus
Leverage the
relationship to Co-
create value for
Business & Society
Encourage the
Consumer to Advocate
his experiences with
the Brand
Key pillars for success Actions to mitigate the Risks Benefits to the Business
Authenticity of database and
positive intent for connect
• Solicit interest while attending the first contact
• Assess the interest triggers and plan alike inputs
• Listing exercise to map Need
state & Profile data
• Consent based Trials for Brands
• Information exchange at specific
periodic breaks
• Sustainable Consumer Equity
Create futuristic and flexible DBMS
to aid info needs for faster decision
by stakeholders
• Longitudinal mapping basis lifestyle variables
• Track CDJ in TG profile & their behaviour towards
Category/Market segment
keeping the participants energized
and engaged for a long duration
• Tools to keep the participants engaged overtime
• Track & encourage participants to create buzz and
advocate the Brand
YES NO Unsubscribe
Leverage the Consumer care setup as an
Engagement platform
ReConnect to appreciate
their consent and keep them
abreast of Touch Points/
Beliefs
Drive consent based trials,
feedbacks, future
preferences and open
communication channel
Explore for two-way
information exchange with
Consumers/ Customers to
strengthen the Advocacy
for Company/ Brands
Stage 1 Stage 2 Stage 3
Benefits Buzz for Company/ Brands
engagement drive
Familiarity for proposition
across Brands
Efficient feedback process
on Brand Actions
TG profile based trails for
stimulus/ prototypes
Positive WoM from Consumers
leading to more Trials & Advocacy
Foresight & Co create with target
consumer – innovation, value
Challenges Low probability of real &
sustained interest from
Consumers
Lower RoI due to absence of
strong ‘Right to Exists’
High probability of bias
behaviour
High dropouts due to
motivation to participate
Building active community platforms
for engagement & sharing
Marketing is the art of attracting and keeping the most profitable consumers (Kotler & Armstrong, 1996).
Profitable consumer is defined as “a person, household or company whose revenue over time exceed, by
an acceptable amount, the marketer cost of attracting, selling and servicing that consumer”.
By leveraging their CRM, Companies can increase their visibility to how much each consumer has
purchased and how often, which they may supplement with detailed demographic profiles. Managers can
use these data to estimate a potential lifetime value for every consumer and to determine whether,
when, and how to contact each to maximize the probability of realizing (even increasing) his/ her value.
Consumer lifetime value [CLV] is the sum of the discounted net contribution margins over time of the
consumer, which is the revenue provided by the consumer less the cost associated with maintaining a
relationship with the consumer (Berger and Nasr 1998). Its includes all consumers purchasing behaviour,
whether it be repeat purchases or additional purchases through up-selling and cross-selling.
https://hbr.org/2007/10/how-valuable-is-word-of-mouth
Profitable Consumer Engagement
The one number every marketer need to grow
Ideally, the company that wanted to know a consumer’s full
value, hence, its imperative to track consumer referral
behaviour as it relates to the acquisition of new customers.
This can be a firm initiated and incentivized formal referral
programs (extrinsically motivated) or self advocacy
(intrinsically motivated).
Calibrated value of CLV & CRV is termed as Consumer
Engagement Value (CEV), similar to RoI for the Brand
There are few other metrics in evolution e.g. Consumer
Influencer Value (CIV) and Consumer Knowledge Value (CKV)
to further sharpen the measurement of CEV
Managerial
Implication
Reconfiguration of Resource allocations
measurements going granular and sharper
Through effective tracking of CEV metrics, marketers can design
Consumer value matrix (CVM) to facilitate efficient decision marking.
This will also help them to employ focussed and segment based Brand
actions. Also it can be tailored to respond to consumer needs and
influence their buying patterns. Brands need to allocate resources using
filters as mentioned below:
1. Relationship building entity mechanism (B2B2C)
2. Targeted communication (O2O or O2F)
3. Obtaining expertise in new products (Co creation)
Decision journey for consumers has changed and this change is Global -
The ultimate goal for all Brands is to reach the automated loyalty loop
and by-pass need for the Brand to battle for consumer preference in the
first two phases of the CDJ*
CDJ has evolved from a liner funnel to cyclic frame this reflect the
significance of 2-way communication over traditional advertising (1-way
communication) – marketers need to recalibrate the resource allocation
across the touch points *
The core idea for ReConnect process is to create platforms for 2-ways
engagement – Consumer care setup is the only touch point where
consumers take effort to connect with Brand, delivering delightful
experience through that will impact their disposition (WoM) for long term
Consumer Value Matrix (CVM)
*New CDJ has been framed after extensive research examining the purchase decisions of 20K consumers across five industries and three continents
Consumer
care is one of
the critical TP
to leverage
this trend
Co- creation than Validations of decisions
moving from stage gate to an iterative process of value creation
Structured score card can be conceptualized basis key Brand pillars :
Consumer : Define the Consumer (mind-set & demographic)
Insight : The trigger for Consumer’s to actively listen Brand messages
Value proposition : The benefits and reason to believe that will make
them buy and recommend the Brand
Making the consumer a co-producer or co-creator aims to generate more
value than through traditional transactions. It also brings efficiency and
higher probability for success of growth plans.
This implies a longer process of relationship-building and it is generally
assumed that a breakthrough is more likely to occur with more frequent
and intense conversations between collaborators from diverse
backgrounds.
Rather than viewing it as a tool for the creation of ideas, co-creation
should thus be seen as an adaptive framework that facilitates innovation
in a ‘boundary-spanning’ way by connecting customers and other
members of the organisation
Adapting the 2-way engagement through ReConnect process will eliminate
the boundary between the firm and its consumers. This can be leveraged,
just as in psychotherapy, the analyst are able to be both subject and object
as they reflect on their desires, identities and wishes.
Limitations and
Future Research
Potential
Limitations and Future research potential
As the research area was fairly new in the engagement platforms domain, the
key limitations included the availability in-depth and longitudinal past studies.
The inferences were drawn from a mix of conceptual understanding of
consumer care set-up and secondary data on CRM platforms. Further work is
needed to further test the findings in using actual data from organizations.
Research limitations
This work brings together disparate but highly relevant consumer-brand
relationship theories to progress the engagement literature and improve
understanding of the influence of co-creation upon the brand and customer.
The study also organises the current literature on the customer experience,
distinguishes between ‘service’ and ‘experience’, and provides a structured
process for improving the 2-way engagement with consumers.
Further work is needed to test the concept in real environment across sectors.
Future research potential
Comparing CLV based metric with others

ReConnect process for Consumer Brand Relationship

  • 1.
    Conceptual Framework ofReConnect Process to strengthen Consumer Brand Relationship Nishant Singh Dr Bilal Mustafa Khan Dr Anuja Pandey
  • 2.
    Presentation Flow • Consumeras a source of Competence • Evolution from Brand to Consumer driven Marketing • Rising cost of Consumer attention Introduction • Consumer Experience • Consumer Decision Journey • Co- creation new pathway to value Literature Review • New age engagement platforms • ReConnect Process for 2-way Engagement • Profitable Consumer Engagement Conceptual framework • Reconfiguration of Resource allocations • Co- creation than Validations of decisions Managerial implications • Limitations & Future research potentialLimitations and Future Research
  • 3.
  • 4.
    Shifting locus ofCompetence for the Brand Seller dominated market to virtual marketplace Future sources of Competence: • Co-create personalized experiences with consumers • Build Efficiency and Innovation around Brand core • Rapid Reconfiguration of Resources
  • 5.
    Evolution from Brandto Consumer driven Marketing visible shift to build relationship and reduce consumer’s risk Managers or teams are assigned to product categories or brand Managers or team are assigned to segment of similar consumer Success is measured by volume of sales and market share Success is measured by consumer-level profitability and depth of relationship Developing and testing of products based on product or ingredients related competencies Development and testing based on segment needs or Co –creation with Consumers Focus is on developing marketing skills Focus is on developing knowledge of consumer segment Era of Aggregation (pre 00s) Era of Disaggregation (post 00s) Organization structure & leadership Key Business success/ growth measures New Product Development & Innovation Training SBM* *Strategic Brand Management • In an information rich environment consumer disaggregation is vast more efficient and profitable than aggregation • Disaggregation is seen as an opportunity to restore balance power between manufacturer and retailer, it provide medium to influence consumer behavior independent of retailer
  • 6.
    Rising cost ofConsumer Attention triggered by quality (complete views) than quantity (total views) • Shift in Consumers preference form information to entertainment through captive and non-captive platforms led to the need for sharper definition of purpose of campaign and linked strategy before developing communication stimulus • This led to transition from concept of ‘Lean Advertising’ to ‘Advertising Symbiosis’- process of creating content that allows for mutual benefit, of both the consumer and the advertiser • In the 1950-60s the standard length of a TV ad was 60 second. By the 1970-80s, 30 second became the norm. And by 2005, one‐third of all TV ads were only 15 second long • In 2013, the average American was exposed to about 52,000 TVCs, % of ads considered fully viewed and getting high attention has decreased dramatically, from 97% in the early 1990s to less than 20% today (note: time is not strictly ordered as studies overlap in time of data collection or publication) In Sep’04, Dove launched “Campaign for Real Beauty” campaign, the purpose was to challenge the stereotypes set by the beauty industry. The strategic objective was to : ‘Create Advertising That Inspires Women And Society To Think Differently About What Is Defined As Beautiful’’ Stage 1: Billboard Stage 2: Firming Stage 3: Dialouge Stage 4:112s Film ‘Evolution’ Consumer PoV
  • 7.
  • 8.
    Consumer Experience revolution frombeing an audience to actively engage with Marketers Not so long ago, every business assumed that the keys to success were the highest quality product, the best value for the buck, and the best consumer service. Now all we hear about is providing the best “consumer experience.” Pine and Gilmore (1998-99) were some of the first scholars to address the notion of the consumer experience. Since then several authors (Carbone & Haeckel 1994 and Johnston 1999, Shaw and Ivens 2002, Voss 2003, Prahalad and Ramaswamy 2004, Meyer and Schwager 2007), have made the point that the consumer experience may provide a new means of competitive advantage. Providing a good experience is critical because it affects consumer satisfaction (Liljander & Strandvik 1997), delivers consumer loyalty (Yu & Dean 2001, Pullman & Gross 2004, Mascarenhas et al. 2006), influences expectations (Johnson & Mathews 1997, Flanagan et al. 2005), instils confidence (Flanagan et al. 2005), supports the brand (Grace & O‟Cass 2004 Berry & Carbone 2007) and also creates emotional bonds with customers or, conversely, leads to emotional scarring (Pullman and Gross 2004). A recent article in the HBR “The Truth About consumer Experience” defines it as your customer’s end- to-end journey with you, not just the key touchpoints or critical moments when customers interact with your organization. Consumer experience is the cumulative impact of multiple touchpoints over time, which results in a real relationship feeling, or lack of it. Hence, Consumer Experience is the #1 priority for CMOs in 21st Century Once you know how to improve your consumers' experience, you need to also know how to benchmark it. Remember the old adage, “If you can’t measure it, you can’t manage it.” So how do you measure consumer loyalty and relationships? One new metric now commonly used is called the Net Promoter® Score (NPS).
  • 9.
    Trigger – Firstlevel action Active scanning Consideration set Purchase I went to a retailer nearby I explained my problem to the sales guy He suggested 3 brands of Refrigerators that fitted my needs I choose the brand that best fitted my needs and feelings. 19952015 I read reviews, descriptions, social info by experts and people like me I chose the brand that best fitted my needs and feelings based on that information I started with Googling my problem Then I decided where to buy it, based on a mix of price, convenience and service Consumers are shopping in a different way that requires companies to change how they think about and interact with their consumers Consumer Decision Journey my journey for buying a refrigerator
  • 10.
    Co Creation anew pathway to Value Co-Creation has attracted serious research attention in the recent past C.K.Prahalad and Venkat Ramaswamy (‘00) introduced the concept of co-creation in their HBR article “Co-Opting Consumer Competence” in which they said that consumer are not only customizing, they are participating with providers to create value. Co-created value arises by the personal experiences, by some uniqueness, by better and services in form of satisfaction, loyalty or through strong relationship. Co-creation has been implemented by very few counted companies which have brand value and highly established (refer the table next). The benefits of co-creation cut both ways. While consumers benefit from greater personalisation and value as a result of co-creation processes, the motivation for companies is about building competitive advantage by turning knowledge from customers into for their organisation. ‘Connect + Develop’ is P&G’s version of open innovation that encourages and enables partners and other stakeholders to contribute and assess new ideas. A.G. Lafley, the CEO of P&G quotes: In order to trigger change by innovation co-creation needs to be implemented as disruptively as necessary and as non-disruptively as possible.
  • 11.
    Key Scholars referredfor the literature review Linda Hollebeek University of Auckland David Allen Aaker Prophet Consultancy Dr. V Kumar "Legends in Marketing" Marc Rutschmann University of St. Gallen PAUL D. BERGER Boston University C.K. Prahalad 1941 – 2010
  • 12.
  • 13.
    companies admit theyhave limited to no understanding on how their customers interact with them digitally* *a survey by The Economist in 2014 Consumer Brand Relationship Spectrum - Stranger to Advocate Things consumers wish marketers knew about them Building great product is just not enough, it need to have Triggers too
  • 14.
    1 4 New age engagementplatforms Means of interacting with consumer at segment or even at individual level Virtual Community Consumer Care centre In an information rich environment these are far more efficient and profitable platforms
  • 15.
    Consumer ‘ReConnect’ Process Engagewith Consumers to drive Loyalty & Advocacy After servicing his/ her need, check his/her consent for ReConnect Capture the connect and profile data in integrated CRM tool Create platforms for periodic & relevant 2-way exchange with the Consumer Track the Consumer connecting with the Brand using any Touch points Strengthen the relationship by offering mutually beneficial stimulus Leverage the relationship to Co- create value for Business & Society Encourage the Consumer to Advocate his experiences with the Brand Key pillars for success Actions to mitigate the Risks Benefits to the Business Authenticity of database and positive intent for connect • Solicit interest while attending the first contact • Assess the interest triggers and plan alike inputs • Listing exercise to map Need state & Profile data • Consent based Trials for Brands • Information exchange at specific periodic breaks • Sustainable Consumer Equity Create futuristic and flexible DBMS to aid info needs for faster decision by stakeholders • Longitudinal mapping basis lifestyle variables • Track CDJ in TG profile & their behaviour towards Category/Market segment keeping the participants energized and engaged for a long duration • Tools to keep the participants engaged overtime • Track & encourage participants to create buzz and advocate the Brand YES NO Unsubscribe
  • 16.
    Leverage the Consumercare setup as an Engagement platform ReConnect to appreciate their consent and keep them abreast of Touch Points/ Beliefs Drive consent based trials, feedbacks, future preferences and open communication channel Explore for two-way information exchange with Consumers/ Customers to strengthen the Advocacy for Company/ Brands Stage 1 Stage 2 Stage 3 Benefits Buzz for Company/ Brands engagement drive Familiarity for proposition across Brands Efficient feedback process on Brand Actions TG profile based trails for stimulus/ prototypes Positive WoM from Consumers leading to more Trials & Advocacy Foresight & Co create with target consumer – innovation, value Challenges Low probability of real & sustained interest from Consumers Lower RoI due to absence of strong ‘Right to Exists’ High probability of bias behaviour High dropouts due to motivation to participate Building active community platforms for engagement & sharing
  • 17.
    Marketing is theart of attracting and keeping the most profitable consumers (Kotler & Armstrong, 1996). Profitable consumer is defined as “a person, household or company whose revenue over time exceed, by an acceptable amount, the marketer cost of attracting, selling and servicing that consumer”. By leveraging their CRM, Companies can increase their visibility to how much each consumer has purchased and how often, which they may supplement with detailed demographic profiles. Managers can use these data to estimate a potential lifetime value for every consumer and to determine whether, when, and how to contact each to maximize the probability of realizing (even increasing) his/ her value. Consumer lifetime value [CLV] is the sum of the discounted net contribution margins over time of the consumer, which is the revenue provided by the consumer less the cost associated with maintaining a relationship with the consumer (Berger and Nasr 1998). Its includes all consumers purchasing behaviour, whether it be repeat purchases or additional purchases through up-selling and cross-selling. https://hbr.org/2007/10/how-valuable-is-word-of-mouth Profitable Consumer Engagement The one number every marketer need to grow Ideally, the company that wanted to know a consumer’s full value, hence, its imperative to track consumer referral behaviour as it relates to the acquisition of new customers. This can be a firm initiated and incentivized formal referral programs (extrinsically motivated) or self advocacy (intrinsically motivated). Calibrated value of CLV & CRV is termed as Consumer Engagement Value (CEV), similar to RoI for the Brand There are few other metrics in evolution e.g. Consumer Influencer Value (CIV) and Consumer Knowledge Value (CKV) to further sharpen the measurement of CEV
  • 18.
  • 19.
    Reconfiguration of Resourceallocations measurements going granular and sharper Through effective tracking of CEV metrics, marketers can design Consumer value matrix (CVM) to facilitate efficient decision marking. This will also help them to employ focussed and segment based Brand actions. Also it can be tailored to respond to consumer needs and influence their buying patterns. Brands need to allocate resources using filters as mentioned below: 1. Relationship building entity mechanism (B2B2C) 2. Targeted communication (O2O or O2F) 3. Obtaining expertise in new products (Co creation) Decision journey for consumers has changed and this change is Global - The ultimate goal for all Brands is to reach the automated loyalty loop and by-pass need for the Brand to battle for consumer preference in the first two phases of the CDJ* CDJ has evolved from a liner funnel to cyclic frame this reflect the significance of 2-way communication over traditional advertising (1-way communication) – marketers need to recalibrate the resource allocation across the touch points * The core idea for ReConnect process is to create platforms for 2-ways engagement – Consumer care setup is the only touch point where consumers take effort to connect with Brand, delivering delightful experience through that will impact their disposition (WoM) for long term Consumer Value Matrix (CVM) *New CDJ has been framed after extensive research examining the purchase decisions of 20K consumers across five industries and three continents Consumer care is one of the critical TP to leverage this trend
  • 20.
    Co- creation thanValidations of decisions moving from stage gate to an iterative process of value creation Structured score card can be conceptualized basis key Brand pillars : Consumer : Define the Consumer (mind-set & demographic) Insight : The trigger for Consumer’s to actively listen Brand messages Value proposition : The benefits and reason to believe that will make them buy and recommend the Brand Making the consumer a co-producer or co-creator aims to generate more value than through traditional transactions. It also brings efficiency and higher probability for success of growth plans. This implies a longer process of relationship-building and it is generally assumed that a breakthrough is more likely to occur with more frequent and intense conversations between collaborators from diverse backgrounds. Rather than viewing it as a tool for the creation of ideas, co-creation should thus be seen as an adaptive framework that facilitates innovation in a ‘boundary-spanning’ way by connecting customers and other members of the organisation Adapting the 2-way engagement through ReConnect process will eliminate the boundary between the firm and its consumers. This can be leveraged, just as in psychotherapy, the analyst are able to be both subject and object as they reflect on their desires, identities and wishes.
  • 21.
  • 22.
    Limitations and Futureresearch potential As the research area was fairly new in the engagement platforms domain, the key limitations included the availability in-depth and longitudinal past studies. The inferences were drawn from a mix of conceptual understanding of consumer care set-up and secondary data on CRM platforms. Further work is needed to further test the findings in using actual data from organizations. Research limitations This work brings together disparate but highly relevant consumer-brand relationship theories to progress the engagement literature and improve understanding of the influence of co-creation upon the brand and customer. The study also organises the current literature on the customer experience, distinguishes between ‘service’ and ‘experience’, and provides a structured process for improving the 2-way engagement with consumers. Further work is needed to test the concept in real environment across sectors. Future research potential
  • 24.
    Comparing CLV basedmetric with others

Editor's Notes

  • #5 This covers the majority of introduction section elements, the message is to show the Eco system for the Business and set the context for the framework in next chart.
  • #6  Encourage active dialogue Mobilize communities of customers Manage consumer diversity Co-create personalized experiences with customers
  • #7 Up to 90% of marketing spend goes to advertising and retail promotions. Yet the single most powerful impetus to buy is often someone else’s advocacy
  • #9 Building from these insights, recent definitions of consumer experience include that “The consumer experience originates from a set of interactions between a consumer and a product, a company, or part of its organization, which provoke a reaction. This experience is strictly personal and implies the customer’s involvement at different levels (rational, emotional, sensorial, physical, and spiritual)” (Gentile, Spiller, and Noci 2007, p. 397). I like the insights outlined in the new book “Summit,” by F. Scott Addis, who is an experienced business executive and recent Inc. “Entrepreneur of the Year” finalist. He ties business success and your personal summit to elevating your consumers' experience with the following specific recommendations and key differentiators: Listen to the individual consumer Exploit your product and service differences Demonstrate the value of your offering Show your passion and creativity in every solution Demonstrate your personal commitment Shoot for the consumers' hearts
  • #10 A.G. Lafley, the CEO of Procter & Gamble, said there were two moments of truth businesses face with their customers. The First Moment of Truth is the moment of purchase. A consumer is looking at a number of brand choices — imagine the shelves of different laundry detergents at the supermarket — and they either choose your brand or a competitor’s. All your marketing up to that point, from TV ads to in-store displays, comes down to that moment. Do you win the sale? The Second Moment of Truth is the moment of experience. When the consumer gets your product home and tries it for the first time, do they like it? That is the key to winning brand loyalty and repeat purchases Companies, therefore, must be prepared to identify which touch points they can continue to affect if they want to win and retain customers. For example, customers may find your business online or in an ad, see ratings and reviews, visit your website, shop at your retail store, or contact your consumer service.
  • #11 Access to wider, richer experiences Better, quicker, less risky innovations From experience to advocacy Online collaboration: more than just innovation outcomes Measuring impact: from subjective to objective
  • #14 Here are some stats to help drive this point home:  For every consumer who bothers to complain, nearly 26 others remain silent A dissatisfied consumer will tell between 9-15 people about their experience -  White House Office of Consumer Affairs Negative interactions with a business are spread to twice as many people as quality ones. - The Grass Roots Group 67% of people spend money after getting recommendations from their friends on online communities like Facebook and Twitter.
  • #18 consumer lifetime value (CLV) is defined as the net present value of all earnings from an individual consumer (Berger and Nasr 1998; Dwyer 1989; Gupta, Lehmann, and Stuart 2001; Rust, Zeithaml, and Lemon 2000). The long-term value of customers (CLV) is suggested to be a more stable and relevant metric of firm value than financial metrics, like market capitalization or price-earnings ratio. In view of this, it appears important to consider the concept of consumer lifetime value as an appropriate metric to assess the overall value of a firm (Bauer and Hammerschmidt 2005). While the Service marketing companies have nearly full visibility to the Consumer transactions variables hence deriving CLV (incld WoM referral) is relatively easier however Product marketing companies are also heading towards similar level of visibility. They will start demanding Consumer details from Retail or e-commerce firms