3. 60%
of marketers allocate < 20%
their budget to nurturing
customer relationships
70% of marketers allocate < 20% of
their people to this goal
Source: adage.com
4. “A PRODUCT CENTRIC ORGANIZATION
IS ONE THAT IS FOCUSED ON THE
PRODUCTS IT BRINGS TO MARKET
RATHER THAN THE CUSTOMERS THAT
BUY THOSE PRODUCTS”.
18. CASE STUDY: BEST BUY
Best Buy wants to focus on customers’ individual wants and
needs— to become “that trusted advisor capable of
helping customers use technology the way they
dreamed,” says Anderson.
Source: Principles of Marketing
19. CASE STUDY: BEST BUY
“We started this [customer-centricity] journey by learning
how to see the differences in the desires of our
customers, and then learning how to meet them,” says
former CEO Brad Anderson.
Source: Principles of Marketing
20. CASE STUDY: BEST BUY
Best Buy’s “customer-centricity” strategy serves its best
customer segments better while sending less
attractive customers packing.
The result: Sales are jumping despite the recently gloomy
economy.
Source: Principles of Marketing
32. RESEARCH FIDINGS: ACQUISTION THOUGH REFERRAL
Source: Philipp Schmitt, Bernd Skiera and Christophe Van den Bulte
Researchers compared two groups
of customers acquired,10.000
customer, by a leading German
bank over a three year period.
All of the first group were
customers acquired through
the bank´s referral program
The second group comprised a
random sample of customers
acquired through other means
such as direct mail or advertising
over the same period of time.
33. RESEARCH FIDINGS: ACQUISTION THOUGH REFERRAL
Source: Philipp Schmitt, Bernd Skiera and Christophe Van den Bulte
25%
Referred customers are more profitable
Researchers compared two groups
of customers acquired,10.000
customer, by a leading German
bank over a three year period.
All of the first group were
customers acquired through
the bank´s referral program
The second group comprised a
random sample of customers
acquired through other means
such as direct mail or advertising
over the same period of time.
34. RESEARCH FIDINGS: ACQUISTION THOUGH REFERRAL
Source: Philipp Schmitt, Bernd Skiera and Christophe Van den Bulte
25%
Referred customers are more profitable
18%
Referred customers are more loyal
Researchers compared two groups
of customers acquired,10.000
customer, by a leading German
bank over a three year period.
All of the first group were
customers acquired through
the bank´s referral program
The second group comprised a
random sample of customers
acquired through other means
such as direct mail or advertising
over the same period of time.
35. RESEARCH FIDINGS: ACQUISTION THOUGH REFERRAL
Source: Philipp Schmitt, Bernd Skiera and Christophe Van den Bulte
25%
Referred customers are more profitable
18%
Referred customers are more loyal
16%
The difference in customer lifetime value varies
according to customer
Researchers compared two groups
of customers acquired,10.000
customer, by a leading German
bank over a three year period.
All of the first group were
customers acquired through
the bank´s referral program
The second group comprised a
random sample of customers
acquired through other means
such as direct mail or advertising
over the same period of time.
36. RESEARCH FIDINGS: ACQUISTION THOUGH REFERRAL
Source: Philipp Schmitt, Bernd Skiera and Christophe Van den Bulte
25%
Referred customers are more profitable
18%
Referred customers are more loyal
16%
The difference in customer lifetime value varies
according to customer
60%
The referral program pays off
Researchers compared two groups
of customers acquired,10.000
customer, by a leading German
bank over a three year period.
All of the first group were
customers acquired through
the bank´s referral program
The second group comprised a
random sample of customers
acquired through other means
such as direct mail or advertising
over the same period of time.
38. Apple’s research uncovered a key
insight about how people want to
consume digital music—they want
to take all their music with
them, but they want personal
music players to be
unobtrusive.
47. Source: marketing.wharton.upenn.edu
Nordstorm is a retailer, it is famous for HOW it sells – with
truly outstanding customer service. In 1975, an unhappy
owner of a set of worn-down tires walked into the Nordstorm
outpost and asked to return them.
Nordstorm DID NOT SELL TIRES at all. But the store granted
the request anyway. Because they want to know as the store
that not only SAYS the customer always right, but actually
BELIEVES the customer is always right.
53. Conclusion
Fair-value
solutions
Reduce
Defection
Valuable
customers
#1 - Which is the most valuable customer?
RFM, Cluster Analytics, Social Listening
#2 - How to fine them and more like them?
STP process, Cluster Analytics
#3 - What dose the customer want?
Research, 5W1H, Value Map, Social Listening
#4 – How to increase profit from them?
Cross selling, Low Cost, Premium Prices, Referral
54. PRODUCT-CENTRIC & CUSTOMER-CETRIC
Product-centric Customer-centric
Strategy Goal Best product Best solution
Main offers New products Personalized package
Most important Most advanced customer Most profitable, loyal customer
Structure Organizational concept Product team Customer team
Processes Most important New product development Customer relationship management
Rewards Measures Number of new product
Market share
Customer lifetime value & Referral
lifetime value
Customer Share/Retention
People Approach of personnel Power to people who develop
products
Power to people with in-depth
knowledge of customer’ business
Mental process How many possible use of this
product?
What combination of product is the
best for this customer?
Sales bias On the side of the seller On the side of the buyer
Source: marketing.wharton.upenn.edu
55. REFERENCES
Research:
- Acquisition Methods and Customer Lifetime Value – Steffen Zorn (2009)
- How Valuable Is Word of Mouth? – V. Kumar (2007)
- Why Customer Referrals Can Drive Stunning Profits – Philipp Schmitt (2011)
- Branding in the Digital Age: You’re Spending Your Money in All the Wrong Places – David C. Edelman (2010)
- Zero Defections: Quality Comes to Services – Frederick F. Reichheld (1996)
Article:
- Why Aren't More Companies Shifting to Treat Their Best Customers Best? – Adge.com
- A Customer Loyalty Measurement Framework – Business Broadway
- The change in Marketing – Barbara Kahn (2015)
- Moving from Product-Focused to Customer Focused Brands – Barbara Kahn (2015)
- Not All Customers Are Created Equal – Peter Fader (2015)
eBook:
- Understanding Digital Marketing – Damian Ryan
- Principles of Marketing – Philip Kotler
Further reading: https://twitter.com/hashtag/CustomerCentricity?src=hash