| |
| |
|
Marketing Information |
|
|
|
Creating Customer Value
The purpose of business is to create and retain a customer. Much has been written about customer orientation, customer relationship management (CRM), Customer Lifetime Value (CLV) metrics, Customer Centric organization models, customer retention, customer care?add any high sounding word with 'customer' preceding or succeeding that word and you have a new model, a new theory. Headline hitting books, celebrity author seminars and training till another theory comes along. And we see the poor customer is still the most dissatisfied lot (that includes all of us specialists too, as customers). What a manufacturer or service provider often thinks as a market or value proposition, customers respond in a diametrically different fashion. Why does it happen? While business thinks in terms of products and derived values, customer is looking at satisfaction. The key question is whether all the strategy, product features, add ons and value creation lead to ultimate customer satisfaction. Now this may seem a little contradictory. To illustrate it better let's take the example of Cell phone services. Companies are rolling out a new product every fortnight offering more value, in their perspective. Then the point is why does the customer keep switching over to different service providers and products or packages so often, if the products are offering value. The key here is more value propositions are being rolled out without looking at the very basic. Whether the value proposed gives satisfaction to the customers. If not it is not valuable. The customer is buying satisfaction. Highest value is derived when the customer is fully satisfied with his purchase. Some common myths in Value Creation Myth # 1 More is often considered value Buy one get one free schemes are rolled out. There is of course an instant sales push. However at the end of the scheme the customer feels that he had all along been paying 100% more for the products and perceives that very product as costly once the scheme is withdrawn. May switch to another product at the same price. Conclusion: Dissatisfaction leads to value erosion Myth # 2 Price is value Many business considers lower price as offering more value. More often than not lowest price products end up as the second best with a higher priced product with similar product attributes leading the market. The simple reason is the higher price product may be offering a higher satisfaction due to perceived values and imagery. Car markets are a prime example of this syndrome. Myth # 3 More Features or add ons are value Businesses load a product or service with more features thus offering a higher value. While this may be attractive if the features are not backed by adequate supports the satisfaction may be less and value is reduced. We encounter this everyday. A customer buys a product with many features but not demonstrated properly or may not be serviced properly. Enquiries may not be handled effectively. Airlines offereing add ons like free overnite accomodation are still not favored if the services, like enquiry handling, reservations, and time schedules are poor. Cell phones companies may be offering plenty of add ons like national roaming or free incoming calls etc. However if the billing is poor and billing enquiries are not addressed properly the customer is dissatisfied and leaves the service for another provider. Myth # 4 Products are competing with similar products This is often true in the leisure industry. A movie theatre may not be competing with another movie theatre. If the customer is not satisfied with a theatre or movie he may look at options to other entertainment sources, for instance an amusement park. We may call them discretionary time products. Highest satisfaction levels are very important in this type of business. These are some of the examples of how businesses can go totally wrong in assessing value. While it is all good to talk of value creation some thought must go into the majoe ingredient in value that is the customer satisfaction. And are business really serious about customer retention. As even a novice to business knows it is far cheaper to service and retain existing customers. The cost of acquiring new customer is very high. Now how many business have consumer satisfaction index to monitor this prime factor in customer value creation About The Author R.G. Srinivasan is founder of Born To Win Forum. He is a certified trainer and consultant in training design & methodologies, focused on personal effectiveness and motivational training. He is also the author of ebooks, publishes 2 ezines on success and motivation and Home Business with an international circulation. His articles are published in more than 50 portals and websites across the world. He is featured as an Expert Author in Ezinearticles.com. Check out his home business ezine at http://home-businessleaders.tripod.com.
MORE RESOURCES:
Marketing - Google News |
|
|
|
RELATED ARTICLES
Mailing Lists - Keeping it Simple The right direct mailing list targets people who want your product or service.The direct mail mailing list is a key factor in a successful direct mail marketing campaign and a major point to consider in small business marketing strategies where marketing ROI (Return On Investment) is a key concern. Customers: The Key To Successful Marketing How well do you know your customers?What is the primary reason your customers or clients come to you? Or purchase your product or service? What is the Number One problem you solve for them? Do you know? Are you certain? If you don't, your marketing could be missing the mark, and you could be missing out on sales.Uncovering Your "Key Selling Point"This is the Single Marketing Message that is the central message in all of your communications about your business, product or service. Marketing On The Cheap: Join The What? Your local Chamber of Commerce.Now before you stop reading, I assure you this really works, and no, this is not an advertisement for the Chamber of Commerce although it may read like one. Marketing Strategy and Template for Independent Professionals Having a marketing strategy and marketing approach is very important. Thus, instead of recreating the wheel, here is a short, sweet, easy-to-understand marketing strategy template to help you place your ducks are in a row in designing your marketing strategy. 10 Proven Ways To Accelerate Your Profits 1. Make copies of your web site in many different languages. Create A Business Card That Sells and is Effective Why does your business need a business card?Business card is a powerful piece of card handed out to your clients or given to you by someone which has all that information in such a small space. Business cards are an important part of any business and that gives a first impression of your business to anyone. Increase Your Response with Multi-Step Marketing "There is only one way to judge the effectiveness of a marketing piece, and that is by the number of responses you get." - Heidi Richards -Multi-step marketing is a simple yet extremely powerful strategy when you use it to its full potential. Take It To The Customer In the past, purchasing ad space was the solution to every entrepreneur's marketing challenge. Then it was direct mail, followed by telemarketing. The 4 P s of Marketing: Effective Marketing Programs Depend On Them There is no shortage of marketing programs, many with great profit potential. The challenge is to sift through and choose the ones that are right for your situation -- the ones that have the greatest potential to grow your business. What You Must Know When Marketing Your Business Marketing is both an art and a science. Anyone who says differently probably isn't doing very well marketing his or her business. 10 Effective Ice Breaking Questions Whether you go to a Chamber of Commerce event, a PTA meeting, the racquetball court, the local health club, or practically anywhere else, opportunities to network present themselves constantly. But there are fears which present themselves as well. Make Out Marketing What is the single biggest fear of teenagers, business owners and CEO's alike?The answer is simple. Making out for the first time, with an attractive partner or customer you really want to be with. Why Cutting Prices Is Like Cutting Your Own Throat Why cutting your prices is like cutting your own throat. It's the oldest sales tactic in the world? And one of the worst? Price cutting. Wife's Marketing Prowess Helped Edison See the Light It is well known that Thomas Edison was an inventor, a genius, and he never slept. Did you know that Mrs. Tradeshow Booth Cures - Knick-Knack Knockouts Okay, we were kidding about the smoke, but not about the mirrors. Mirrors are exceptionally useful Feng Shui devices, especially in regards to manipulating the flow of energy. Private Practice Marketing: 3 Secrets I Wish I Knew When I First Started Out I don't know about you, but I am still waiting for my first class in graduate school about how to develop, market, and run a private practice.I'm also still waiting for my father to have a discussion with me about the facts of life. The 3 Unknown Steps of Marketing Success To be your own marketing expert you first need to know where to begin. It's no good learning how to be a good copywriter, if you don't know what medium is best to promote your work through. How to Promote your business website using free online resources. There are many ways to promote your website for free online. Here are 10 highly effective strategies you can use right now. Neuromarketing: Smart Marketing Or Jedi Mind Control Trick? In the international bestseller "Blink," Malcolm Gladwell explains why our decisions to choose brands, select a mate, sue our doctor or make choices that decide Presidential elections, aren't as simple as they seem.Why we often let unconscious biases affect our opinions about people who are taller or have a different skin colour. Corporate Cleavage I enjoy cleavage as much or even more than the next guy. However, after reading my latest issue of Men's Health magazine, I checked my Encarta dictionary and looked up the word "cleavage".
|
| home | site map |
| © 2006 |
