Lecture unit 03 - Customer-cenntric marketing Flashcards
What is customer centric marketing?
is designed around customer needs and interest and prioritizes customers over any other factor
What is customer centric marketing about and what is the goal=?
- understanding what makes customers different and unique
- and exploring avenues to bring value to a one-on-one level
Goal: build and maintain lasting relationships
What is the historical focus oof customer-centric marketing?
1900´s: CRM
2000s: Customization
2010´s: Customer experience
What is the goal of CRM?
Goal: establish a continous dialogue across all customer touchpoints with most valueable customers
What is customization?
- Data collection allowed firms to customize offerings
- personlized newsletters, postcards, personalized online advertisement
- focus on pre-purchase phase
What is customer experience?
- big-data analytical capabilities become more important for understanding and potentially personalizing the customer journey
- Research shows that a customer-centric focus is an important facilitator within firms to create stronger customer-experiences
What is customer orientation and customer centricity?
Customer orientation is not the same as customer centricity
What is customer orientiation?
- reactive improvement
- mainly during purchase and use
- focus on product and service
- Goal: sales/revenues
- implemtation by specialists and external service providers
What is customer centricity?
- proactive development around customer needs
- End-to-end, from innovation to servicing
- Product, service, customer experience, business model, brand
- Goal: added value for customer, customer loyalty
- Implemented internally by the entire company
What are the 3 forms of customer-centricity?
-
price centricity: offer low prices
Problem: its not always possible to offer low prices -
Product centricity: focus on design, innovation & functionality of products
Problem: large losses if products fails -
Customer centricity: focus on the customer satisfaction
–>long-lasting stable customer relationship can overcome problems from price centricity
What are the resaons for the importancy of customer-centric marketing?
** Decreasing internet user growth**: pool of availbe internet users is already online and shops elsewhere –>need to target these customers
decreasing customer loyalty:
- customer are more informated and less loyal
- looking for differentiated experiences
- higher tendency to switch brands if customer experience is better
How can loyalty and customer satisfaction be increased?
By employing customer-centricity through offering a
- hollistice
- ordered CX
- with long-term focus
Why is there a decreasing impact of mass advertising?
- people are aware that advertising messages and reality differ a lot, as a consequence:
- increase the advertising pressure
- by sending the same message through various channels
–>Customers fell pursued by that and rather try to escape from it then reacting to it
What is customer acquisition costs?
Sales and marketing expenses/number of new customers
–>CAC have increased significantly in the past few years, therefore always reaching out for new customers, is not a good marketing strategy
–>Focus on customer retention is the only way to maintain sustainable revenues
What is the difference between customer retention adn customer loyalty?
retained customers they continously buy from your brand
Loyal customers: prefer to buy from your brand and act as brand ambassadors
–>Retention is a short-term strategy. The focus should be on building a lonng-lasting and emotional connection to customers
