Chapter 7 : Developing ur customers Flashcards
(31 cards)
What is the difference between customer and consumer?
Customer : someone who pays for a product.
Customers become consumers when they actly use the product.
What is a market?
Place where ppl can sell goods (supply) to ppl who wish to buy those goods (demand).
More precise definition of a market?
A set of actual/potential customers,
For a given set of products/services,
Who have a common set of needs or wants and,
Who reference each other when making a buying decision.
Customer psychology
- Understanding what customers want or need
- Customer may play multiple roles
Actors in the Buying Process
End users
Influencers
Recommenders
Saboteurs
Economic Buyers
Decision makers
End users
The customers who will actually use your product.
Influencers (opinion leaders)
Customers with a large following who have the power to influence purchase decisions.
Recommenders
People who may evaluate your product and tell the public about it.
Their opinions have the power to make or break your reputation.
Ex: bloggers, experts in an industry, influencers with a smaller number of followers
Economic buyers
Customers who have the ability to approve large-scale purchases.
Economic buyers have the power to put your product on shelves, physically or virtually.
Ex: buyers for retail chains, corporate office managers, corporate VPs.
Decision makers
Customers similar to economic buyers who are positioned higher up in the hierarchy and so have even more authority to make purchasing decisions.
Doesn’t have to be CEOs, can also be the parents who approve purchases for their family.
Saboteurs
Anyone who can veto or slow down a purchasing decision - top managers, friends, spouses, children.
They are not simply dissatisfied individuals who voice dissent for a product or brand; they intentionally work to harm the company’s reputation.
Customer Personas
Profiles or representations of your ideal customers based on information and market research.
These personas help you create strategies to connect with your target audience and promote products and services to ppl who will potentially buy them.
Customer personas consist of 6 items
- Demographics
- Psychographics
- Proxy products
- Day in the life
- Biggest fears and motivations
- Challenges and pain points
Customer journey map
- Visual representation of customer experience
- Provides holistic view
- Develop empathy for customers
The benefits of customer journey mapping
- Presents a clear picture of how your customers interact with your business, including their goals, needs, and expectations
- Clarifies what your customers think and how they feel about their experiences by identifying positive and negative emotions
- Confirms whether the customer journey proceeds in a logical order
- Highlights the gaps between the desired and actual customer experiences
- Allows you to connect to customers on an emotional level and provide the optimal customer experience by addressing and resolving key pain points
Elements of a Customer Journey Map
- Discovery (of customer’s need)
- Research
- Purchase
- Delivery
- After sales
Confirming your findings
Useful data in confirming the findings made from your journey map:
- Website Analytics
- Social Media Tools
- Direct Customer Contact
Customer Segmentation
Customers can be divided into separate segments if:
- Their needs validate an offering.
- They are best reached through different distribution channels.
- They call for different types of relationships.
- They have substantially different profitabilities
- They are willing to pay for different aspects of the offer.
Customer segments can be defined in 4 ways
- Who are they? (Their demographics)
- Where are they? (Locations)
- How do they behave? (behavioral and lifestyle habits)
- What are their needs?
Target Customers
- Innovators
- Early adopters
- Early majority
- Late majority
- Laggards
Innovators
The first customers to try a new product. They are enthusiastic about new technology and are willing to take the risk.
Early adopters
They tend to buy new products shortly after they hit the market. Unlike innovators, they are not motivated by their enthusiasm for new technology. They are usually influential ppl from business or government who make reasoned decisions to exploit the innovation for competitive advantage.
Early majority
They take interest in a new product once it begins to have mass market appeal. They are practiccal and extremely risk averse.
Late majority
Skeptical, pessimistic, risk averse and less wealthy than the previous groups. Possible to win them over with simpler products or systems at an affordable cost.
