Keeping Up with Your Customers eval(ez_write_tag([[250,250],\'businessknowhow_com-box-3\',\'ezslot_3\',122,\'0\']));
Have you been blindfolded by the customer\'s changes?
Do you feel like half or more of your marketing money is wasted?
Is surprise and waste really inevitable?
Perhaps the most insidious strategic risk facing the company today is to destroy the customer base through changes in behavior, preferences and demographics.
These shifts may take place overnight.
They can destroy the business design anyway.
Customers are people. -
Unpredictable, irrational, emotional, curious, very easy to change.
Customers can\'t keep moving.
They switched themselves from \"product buyer\" to \"value buyer\" to \"price buyer\" and then again.
Their focus ranges from \"quality\" to \"price\" to \"solution\" to \"style\" to \"brand \".
\"They become richer.
They are poor.
They are excited and attracted by different styles, different products, different ways of buying.
They got better news.
They are demanding higher.
They decided to shop in different places;
They began to buy shirts through catalogues, jewelry from TV networks, and vacation online.
They want a bigger car. Then smaller.
Then it\'s bigger.
Then fuel. efficient.
They pledge allegiance to the product brand.
Then the brand store. Then no brands.
They want carbs, but they don\'t.
They want big cars.
Then it\'s small and frugal.
Then it\'s huge. -
Then they decided they valued fuel.
Efficiency and ecological virtues, after all.
Every time a customer priority changes, our business design is at risk.
Our value proposition has become a bit vague, a bit off the point.
We lost a little bit of business to some of our clients;
They decided to peel off once in a while and buy several items from another supplier.
Then we start to lose our customers completely. (
This is a bit more worrying.
But at least we still have old things to trust. )
Then, we started to lose the most profitable customers, 20% of whom generated more than 80% revenue.
A little change turned into a torrent of departure.
1% of the loss of income became 6% of the loss of profit.
Customer risk is the most subtle and common strategic risk any company faces.
This is also the least necessary.
How to take measures to prevent customer risks?
You can\'t force people to buy your stuff.
As Joji Bella once said, \"You can\'t stop people if they don\'t want to come to the stadium.
\"No, you can\'t, but you can reduce the risk of losing a customer by reducing the uncertainty that initially creates a risk.
After all, this is where the risk is--
Don\'t know what will happen, what your customers are thinking, what they want, what they will do, and what they will react.
If you know these things, you can respond appropriately to pricing, marketing, and services that motivate them to stay.
This is why the first countermeasure to beat customer risk is to create and apply continuous proprietary information about customers.
This is about answering a question: what do we know about other customers who don\'t know?
And then use that knowledge to create and keep customers profitable for life.
The first step is to develop a healthy fear of ignorance, and the next step is to shift your organization from speculation to understanding ---
Transfer the frontier that separates what you know from what you don\'t know, thereby reducing the area of the bet (
Even a 5% shift in this area can generate millions of dollars in revenue and profits.
Ultimately, risk is just a very expensive alternative to information.
Companies that have moved from risk takers to risk shapers save money and increase their chances of success by creating and then using information that others do not have to establish unbreakable connections with their customers.
For example, Coach, who makes handbags and other fashion accessories for women.
Coach spends more than $5 million a year on market testing for new products.
It uses many lenses to read the market, including more than 60,000 lenseson-
One customer interview, one telephone survey with 500 customers, a large number of market experiments, competitive analysis, prototype research and in-
Store product testing.
Coach\'s customer database has grown to include more than 9.
7 million households.
CEO Lou Frankfurt himself goes to Coach stores and department stores several times a week, eager to replenish the bird
Eye view provided by ground survey data-
Express the level impression directly from the customer\'s mouth.
Coaches constantly look at their customer base from many different angles and study indicators such as customer satisfaction, competitive rating, active purchase intention (cross-
Check the actual purchase behavior)
New customers, failed customers, price response, response to new product varieties and response to Microlevel (
Demand for deep red and scarlet or blue and aquamarine).
The combination of all these partial views helps Coach to build very precise moving pictures for customers.
Based on an early response to the proposed product, Coach frequently changes the design, abandons the poorly tested product, and expands the style plan that proves surprisingly attractive. (
Recently, the testing of a new product is very popular with baseline data.
Production plans have doubled. )
Frankfurt particularly liked what he called \"fast\"and-dirty research--last-minute, small-
Provide scale surveys onlinethe-
Identify a strategy on the spot or highlight the need to make a change.
Combining all of these windows into customer behavior, attitudes and preferences provides Coach with unparalleled proprietary information about the market-
Information to help companies anticipate and respond to customer changes.
Proprietary information is a key component of customer risk insurance, but not the whole story. For state-of-the-
For artists like coaches, proprietary information is the cornerstone of a system with several key components.
These questions include: persistently asking the toughest and most exploratory questions about customers, their needs and interests, and how the company\'s business processes can better serve these customers.
Always ask, \"What are you afraid of discovering today?
How can I know?
\"Have a model or algorithm that converts proprietary information flow into\" ahas!
\"Companies can take action, especially to adjust the pricing system of customer preferences and the company\'s economy to maximize the value stream of customers and the profits of the company.
Program with the most important elements of an organization\'s customer relationship (
Such as customized products, incentive programs, service interventions, etc)
As a result, satisfactory transactions have gradually evolved into strong, lasting and low
The relationship between Beta and profit. A customer-
Culture-centric, instilling and strengthening culture through training and incentives gives employees the skills and enthusiasm they need to continue to do the right thing for their customers and businesses.
The end result of building a business around proprietary customer information is the creation of knowledge intensity ---
A way of doing business by systematically tracking, quantifying, researching, analyzing and compiling countless unknowns for each company in order to reduce uncertainty and improve predictability, enables managers to make more accurate decisions than ever before. How often?
All the time?
It\'s far from that place.
However, increasing the frequency of correct actions from 40% to 50% has a huge impact on the success of any business. Even a one-
The percentage increase will make a big difference.
\"Work numbers\" are hard, but those who have done it know it is rewarding. Is it genius? Not really.
It\'s just to be obsessed with customers and to persevere in seeking information that will help you get to know them.
Knowledge-intensive companies like Coach apply ten to twenty times more information than their competitors.
They have been looking for more.
As a result, they have moved from passive victims of customer risk to active risk shapers, reading the changing patterns of customer choice and making informed decisions about how to respond.
Ordering benefits from Amazon. comADRIAN J. SLYWOTZKY --
Quoted by industry Weekly as \"for most of the 20 th century, Peter Drucker was a management guru and all others were measured \"---
Director of Oliver Weiman.
He is the author of the best-selling book Profit Zone (
Selected by Business Weekly as one of the top ten best sellers in 1998)
Pay attention to immigration and how to grow when the market does not grow.
He also spoke at the Harvard Business Review and The Wall Street Journal, and at the World Economic Forum in Davos, the Microsoft CEO summit, the Forbes CEO Forum, and the fortune CEO Conference. See www. crownbusiness.
Fortune CEO Conference. See www. crownbusiness. com