BUSINESS RESEARCH

Customer-Driven Strategy

Customer strategies drive companies’ ability to meet actual and potential customer needs and to deliver on key organisational objectives. As mass marketing principles becomes less and less relevant, personalised customer relationships have become more important than ever. An annual survey of the 25 most popular management tools in 2001 revealed that customer relationship management ranked in the bottom three; however in 2010 it was ranked in the top four.

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January 2013

In many cases, customer-driven strategies are not translating into increased customer satisfaction. A study of 342 companies found that while 80% of companies thought their customer service experience was “superior”, just 8% of their customers agreed. How should companies drive the customer experience?

Marketing: Capture the tastes and standards of every targeted market segments; circulate this knowledge within the company; and tailor consumer communications.

Service operations: Align processes, skills, and practices to every touch point – present-patterns surveys are useful for tracking high-volume touch points, such as call centres.

Product development: Observe how customers use products and services. Do existing products frustrate them and why? Does customer behaviour run counter to the company’s expectations? What needs haven’t been identified?

Information technology: Collect, analyse, and distribute CEM data, integrate the information with that generated by CRM, and monitor progress. Disseminate data appropriate for internal audiences: line managers need less detail than analysts.

Human resources: Put together a communications and training strategy that conveys the economic rationale for CEM. Address how it will alter work and decision-making processes. Study front-line employees’ individual capabilities, work processes, and attitudes. For performance management, reassess links between customer experience and compensation.

Account teams: Move from annual surveys to detailed touch-point analysis – translate present patterns of customer experience and issues identified in recent transactions into action plans that are shared with customers.

Companies tend to know a lot about their customers’ buying habits, incomes, and other target market characteristics, but little about the actual customer experience. To drive the customer experience, find out more about your customers’ thoughts, emotions, states of mind and the way they interact with products, services, and brands.

Referenced techniques

Technique

Customer-driven Strategy

Customer-driven strategy is an essential business philosophy that all organisations should embrace. The concept provides a detailed summary of the key elements of customer-driven strategy and offers critical implementation advice and success factors.

Technique

Customer Relationship Management

This technique explains what Customer Relationships management (CRM) is, what benefits it can deliver, within which contexts it can be used, how it can be implemented and how CRM technologies can be deployed to support customer management strategies and objectives.

Technique

Lifetime Customer Value Analysis

The concept describes the best practice of customer lifetime value analysis, explores its benefits for organisations, and reviews implementation steps and success factors.

Technique

Customer Profiling

Marketers use customer profiling to identify the best customers, their common interests and demographic information. This concept will assist marketers to make informed targeting decisions based on customer profiling analysis by providing an overview of key characteristics and tools.

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