Customer-centered company: customer perspective
Client-centered companies strive not only to satisfy their needs, but also to deliver a value significantly exceeding expectations, including initiating unforgettable impressions and unforgettable consumer experience.
To achieve this, they change the key moments of working with clients (Figure 5.4).
Customer's vision. The client is an individual with an individuality, own convictions and values. Traditionally, marketing relies on segmentation and the choice of the target market - searching for people with similar needs, their deeper understanding and working with those who provide the maximum benefit. However, today consumers want an individual approach, attention to their personal needs, respectful attitude, understanding of their values and beliefs. As F. Kotler notes, marketers should treat consumers as integral human beings, possessing body, mind, emotions and soul.
Fig. 5.4. Features of working with clients in client-oriented
Modern marketing is focused on the beliefs and values of the consumer. The authors of the book Firms carrying love note the profound changes in people's perception of such a thing as "business culture". Today, more and more managers of companies in the usual usage introduce concepts that are somehow related to the word "love": joy, passion, sincerity, affection, trust, compassion, sincerity. Firms, "bearing love", as a task set before themselves not winning a share in the client's wallet - instead they are trying to win a piece of his heart. In an era of commodity abundance, people rarely acquire faceless products, they need things behind which values and history stand.
Appeal to values
The company New Balance was established in 1906, when the British immigrant U. Riley decided to establish the production of insteps and orthopedic shoes for people with musculoskeletal disorders. For more than a century of history, the company has won the image of the manufacturer of the most comfortable sneakers in the world. A wide range of models is in demand from a wide range of people, from students to bankers. Sneakers New Balance - is a combination of high-end materials, advanced designs and stylish design solutions. Steve Jobs preferred this brand. Young and Simon wrote about him: "He, almost always and everywhere appearing in his traditional black T-shirt, jeans and sneakers New Balance
Company New Balance from the very beginning was based on the principles of healing. The number of people with orthopedic problems is constantly increasing, especially as the population ages. Culture of healing is manifested in the functional qualities of shoes, in the company's constant cooperation with orthopedic doctors.
The company shows its concern for people who have entered the age of maturity. The time of maturity is associated with the manifestation of new, unfamiliar problems. The psychic energy of a person shifts from social actualization to self-actualization, to its inner "I". People feel the need, which is expressed in the slogan of the company "Look inside yourself - find a new balance". Especially bright values of this company are manifested in comparison with the values of the company Nike.
The values of the company Nike are addressed to the younger generation, striving for leadership and masculinity. The company New Balance appeals to the values of adulthood, when a person becomes more contemplative.
Companies strive to have comprehensive information about the client: not only the history of sales and services, but also data on interests, personal connections, tastes, preferences, habits. This information is collected from various databases and the Internet. Experts believe that the heyday of marketing, based on a combination of information technology and relationship marketing, is yet to come. In the future, through software that can "understand people", the key task of building psychological models of the consumer's personality, constructing his psychological profile will be solved.
Strategy - orientation to the lifelong value of the client. The cycle of forming relations with the client includes three crucial stages: attraction, retention, and adherence (Figure 5.5).>
1. Attraction. Historically, marketing has emerged as a tool to attract customers, and he used aggressive, offensive strategies for this. It was necessary to convince the client to buy the goods, highlighting the merits of this product, promising significant benefits
Fig. 5.5. The strategy of forming a lifetime value of the client
and offering various incentives (discounts, coupons, etc.). For the most part, these were short-term actions, in growing markets, when the recruitment opportunities for new customers were great, customer care was easily compensated for by acquiring new ones.
2. Hold. In a saturated market, it became clear that the attraction resources are limited, and the engagement has become more expensive, and the companies faced the task of retaining the customer. From single sales, the companies moved to establishing sustainable and mutually beneficial relationships with customers. Unlike companies that are focused on individual transactions or transactional marketing, efforts with a customer retention policy are aimed at establishing trust and long-term relationships with the client. Such relationships were once characteristic of small enterprises, when the owner himself was doing business and knew his customers personally - in the current conditions of the company it is also much more beneficial to have regular customers than to attract new ones. Studies confirmed that the cost of retaining existing customers is significantly lower than the cost of attracting new ones. A dedicated customer is less sensitive to the price, in dealing with it, less spending on marketing communications is required, it is easier to forgive mistakes. In addition, he recommends the company and its products to others. The main condition of retention at this stage is to achieve customer satisfaction. Companies conduct regular measurement and assessment of their customers' satisfaction. Based on the information received, marketing programs are designed to increase satisfaction, increase repeat purchases and win loyalty. It is also necessary to restore the trust of departed customers and develop special measures aimed at their return.
3. Creating commitment. At this stage, the client's commitment is formed. Relationships become more stable, partners know each other well, so the company can respond to customer requests, offering novelties, improving existing products and services. The client also has a full understanding of the company, knows what to expect, what products and services the company represents. Adherence means not only behavioral loyalty, expressed in regular repeat purchases and profitability. Commitment is also emotional loyalty; a deeper and rooted sense of attachment to the company and all products. Affected customers actually become apostles brand, fans, volunteers and promoters.
The main indicator of the effectiveness of the strategy aimed at the formation of long-term relationships with the client is an indicator of the lifetime value of the client.
As a result of single actions to attract, implement programs to improve customer satisfaction and retention, client assets of the company are consistently formed. Client assets (client capital) consist of customers who, through their commitment, are the source of a sustainable long-term cash flow from purchases made by them. Customer's capital (customer equity) - is a monetary valuation of the client's assets of the company, is defined as the sum of lifetime valuables of all present and future clients of the company.
Value - from economic and functional characteristics to complex value. The concept of value reflects how fully the company's proposal meets the needs (or solves problems) of the client. From what value a company provides to a consumer, its choice depends, i.e. preference of some goods and services to others.
In general, the value is the difference between what the consumer receives and what the consumer gives. The consumer acquires a set of benefits, while bearing certain costs (not only money). The greater the difference between benefits and costs, the higher the value to the consumer.
The consumer should clearly understand what the value that he receives is. The task of the marketer is to provide this understanding through marketing communications, as well as the delivery of this value and the observance of obligations to the customer all through the use of the product.
In a traditional economy, value is primarily a set of economic and functional benefits of the commodity, i.e. those values that are tangible benefits and, as a rule, can be measured quantitatively. But as the saturation of markets occurs, and the producers of goods of a certain category are leveled by the level of quality and given to tangible values, competition passes into the plane of the provided psychological benefits.Previously, companies turned to clients, emphasizing rational elements of the offer: they tried to differentiate the brand by some characteristic and to consolidate this characteristic in the mind of the consumer. For example, they used advertising slogans that emphasize
Functional qualities of the goods: the safest car, shampoo & "two in one", the ideal whitening (toothpaste). Companies determined the rational characteristics of their proposal, which met certain needs.
Later came the realization that the emotional side of the human psyche is very important. There was a concept of emotional branding, which states that in order to win loyal consumers, companies need to be amazed not by the mind (with the help of rational proposals) but by the heart, making them experience emotions.
In the modern economy, consumers are willing to give money not only for traditional offers, but also for what at first sight will not succumb to any quantitative assessments - sensations and impressions. Beauty, care, attention, pleasure and even spiritual saturation acquire economic value and become no less real than goods, services and raw materials. Provide delivery of impressions - the task of marketing in saturated markets. The quality of goods and services is not enough to win customer loyalty, customers are hungry for new emotions and are willing to pay a lot for them.
The authors of the concept of the economy of impressions, Joseph Pine and James Gilmore, determined the evolution of value in the economy. They described the economy of impressions as the next stage in the row of the agrarian economy, industrial economy and the most recent economy of services. Just as the society in its development has consistently passed from the agrarian economy to the industrial one and further to the postindustrial, or service, the supply of value has also undergone changes (Figure 5.6).
Figure 5.6. Evolution of value in the economy
Initially, at the agricultural stage, the exchange of natural resources, as well as agrarian products, prevailed in commodity-money relations. Further, due to industrial revolutions that occurred in many countries of the world, commodity production replaced commodity production.
And this does not mean that the goods completely replaced raw materials on the market (even now the raw material component prevails in the export of many countries). The industrial economy did not replace the agrarian one, but it created an additional economic proposal in the form of goods, more expensive in value than the raw materials necessary for its production, and which later became dominant in the market.
In the 20th century, with the increase in the share of services in the world's leading economies, it was the service that was the next step in developing the value of the offer, adding value to the value of the product. The next stage in the development of value will be the delivery of impressions.
According to J. Paine and J. Gilmore, the impressions are the fourth economic proposal, which is as strikingly different from services as services from goods. When a person buys an impression, he pays for unforgettable moments of his life, prepared and staged (as in theatrical play) by the company, i.e. for their own feelings and sensations.
In the focus of the economy of impressions are impressions and unique consumer experience, and the main task is to turn a client from a simple consumer into an adherent of the company, loyal to it as much as possible. A truly loyal customer is the most valuable thing that a company can have. For him there is no alternative to favorite products, the presence of other firms on the market does not matter to him. The acquisition of such customers allows the business to develop faster, and also to securely retain the previously won positions.
The main task of marketers is to determine the values that matter to consumers, and to recreate with their help specific emotions. Even the sale of water can become a trade in impressions. To do this, you can bring water, say, from the Arctic, add the appropriate legend to the description of the goods, and also provide a price tag that corresponds to that proposal. Examples of setting impressions can be theme restaurants such as the "Hard Rock Cafe", "Pushkin", where food is just one of the elements of the impression. They also offer a unique atmosphere, combining special design, architecture and style. Many restaurants differentiate through entertainment programs, shows, the involvement of consumers in interactive games.
Customer Experience Management - Understanding , measuring and improving customer experience at each point of contact. Consumer experience is the sum of the client's impressions of contacting the company throughout their relationship.
Customer experience is an internal and subjective response of the client to any direct or indirect contacts with the company.
In this case, the longest path of consumer's contacts (travel of the consumer) is considered, the stages of which can be: knowledge of the product or service, detection, learning, interaction, acquisition, use, accumulation and analysis of experience, reuse.
Consumer experience occurs in any areas that the consumer encounters or interacts with.
Under the contact points (English touch points.) refers to a variety of the region of contact with the consumer: places, situations, objects, interfaces.
At the contact points, customers make very important decisions:
• Is it worth starting cooperation with the company
• Is it worth making repeated purchases;
• Is it worth to expand the number of purchased goods and (or) the frequency is consumed by the ID.
At the point of contact, the client, for example, if he could not reach the company, might change his mind about working with her and switch to a competitor that is more accessible. On the other hand, if the point of contact causes a positive reaction from the consumer - a sense of care, comfort, surprise with original solutions, this can serve as a good incentive for making primary or repeated purchases.Managing client experience is a modern business strategy based on managing the overall impression of the customer about the company, which consists of the emotions and sensations experienced by the client in the process of involving, acquiring, owning and evaluating all the services, products and manifestations of the company in his life .
Managing client experience involves building an ongoing process of relationship with the client at various points of contact.
Communication with the consumer: from the strategy of pushing to the retraction strategy. In the new reality, the channels of distribution and communication are increasingly shifting from pushing strategies (push) to retraction strategies (pull). When developing communication strategies, marketers take into account that the initiator of modern communications is a client who himself determines what exactly he needs to know and how he wants to receive information. Thanks to the development of the network Internet and mobile communication, most customers can stay in touch with the company almost around the clock. The company can formulate its proposals depending on the location of the client and his actual need.
Modern communications are increasingly personalized, meet the needs and desires of the client, situationally appropriate.
Involvement of the consumer: partnerships and the joint creation of value. Formed in the 1990s, the concept of marketing partnerships has been further developed in the concept of marketing co-creation ( co-creation marketing ), or marketing a joint value creation (value cocreation). As part of this concept, customers no longer They are considered as passive recipients of the value created by the company, but are perceived as active partners of the company. The authors of the concept of marketing joint creativity K. Prahalad and V. Ramaswamy define it as a process of creating value in which sellers and consumers interact to share knowledge and resources with the goal of jointly creating additional value.
Marketing of joint creativity - the interaction of the firm and customers, during which the participants' resources are consolidated for the joint creation of additional value.
The company's market in this case is a kind of forum on which there is an exchange and consolidation of resources (opinions, ideas, knowledge, product design and design, etc.). It is important that the central element and moderator of this forum was the company itself. Otherwise, the process will become uncontrollable and value can be created (destroyed) outside the company.
Examples of marketing joint creativity are found everywhere: it is an opportunity to order a pizza with its own original filling, buy a T-shirt with an author's inscription. We are increasingly meeting such appeals to the client, as Develop your tariff plan (mobile carrier) or Compile your credit product (bank). Sites of automobile companies contain a car configurator. This tool enables potential customers to independently compile a car selected by them and find out its value without leaving home. Wikipedia is a classic example of marketing co-creativity. and software products with the so-called open source: Linux , Mozilla Firefox.
Companies are attracting consumers and experts to find ideas about a new product, to develop packaging and design, to participate in promotions and sales (Figure 5.7).
Thus, the technologies of marketing of joint creativity essentially differ from traditional marketing, built on the type of "active company - passive consumer". Co-creation is that the customer becomes an active party, he makes suggestions on the characteristics of the goods, in some cases independently puts forward the terms of the transaction relating to the consumer properties of the goods (for example, the equipment of the car) and even its price (a cafe, working on the principle of "Pay, how much do you think is necessary? ").
Fig. 5.7. Forms of marketing of joint creation of value
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