Understanding & Segmen/ng Your Customer – Part I GeCng the Right Customer For Your Marke<ng Message
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We have spent a great deal of <me talking about the importance of knowing your customer
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But why is it so important?
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Knowing your customer is the basis to geCng your marke<ng performance right. Without a proper customer profile, your message will fail and the results that you expect will not be achieved. h"p://emagine-‐group.com
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So do I need to talk to all my customer to get to know them?
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Sure, if you have hours of unused <me and endless pa<ence to listen to customers tell you things that don’t ma"er to your product or brand h"p://emagine-‐group.com
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While talking to customers is an effec<ve way to get detailed informa<on about your brand, products and services, there are be"er ways… h"p://emagine-‐group.com
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A strong customer profile is a mixture of a number of characteris<cs that define your customer from a variety of items that make it easier to segment, target and sell your product, services and brand to them h"p://emagine-‐group.com
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Nine Need to Knows When It Comes to Knowing Your Customer
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9 Need to Knows Ø
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Revenues are s<ll relevant – Collect informa<on about customers to establish how much cash money they bring to your table Happiness is contagious – Focus on happy customers Price sensi<vity is NOT a good thing – Don’t make your market posi<on about price – When Mickey Drexler took over a CEO of J Crew, he was looking for customers willing to pay more for well-‐made clothing and increased revenue 170% in the first 5 years
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9 Need to Knows Ø
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The bigger the problems the be"er – The bigger the problem your brand can solve, the bigger the market response – In the early days of the internet, AOL went aaer people interested in geCng online but not willing to do it alone – As a result, 30 million people signed up and they became 4th on the list of events that shaped the first 25 years of the web Be on the lookout for something new – Introducing new products and services can generate organic growth companies crave – Focus on your customers that are most interested in new innova<ons from your brand to generate bo"om line growth
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9 Need to Knows Ø
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Out there advoca<ng for your brand – The greater the level of influence a buyer has among their social networks and word of mouth marke<ng, the more a brand’s marke<ng ROI will benefit A hub with lots of spokes – The more ac<ve and engaged a customer is with different social media, the more valuable they can be to your brand – Ford Motor Co. picked out 100 twenty-‐something YouTube storytellers who’d developed a fan community of their own and gave them a Fiesta for 6 months – Each month they share their experiences with their communi<es via YouTube, Facebook, twi"er and Flickr – Ford received 50,000 requests for informa<on and sold 10,000 units in the first 6 days of sales
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9 Need to Knows Ø
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Dis<nc<ve needs and wants – The more similar and predictable a target group’s needs and wants, the easier it is to develop compelling posi<oning and messaging Meaningful to tradi<onal and digital decision makers – Get a sense of how high-‐value customers use tradi<onal, digital and social media communica<ons throughout the pre-‐ and post-‐purchase process – Understand how the like to interact with a brand within different communica<ons channels
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What is Customer Equity?
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A firm is only as good as its customers think it will be the next <me they do business with them
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When we talk about customer equity, we talk about 3 specific things…
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Value Equity
A customer’s objec/ve assessment of the u<lity of a brand based on percep<ons of what is given up for what is received
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Value Equity is determined by: Quality – value of the brand offerings Price – a"rac<veness of the price Convenience – ease of doing business
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Brand Equity
The customer’s subjec<ve and intangible assessment of the intangible, above and beyond its objec<vely perceived value
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Brand Equity is determined by: Building awareness to a"ract customers Building emo<onal connec<ons Remind customers to repurchase
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Reten/on Equity
The tendency of the customer to s<ck with a brand above and beyond the customer’s objec<ve and subjec<ve assessments of the brand
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Reten<on Equity is determined by: Loyalty Programs Special Recogni<on & Value Programs Affinity/Emo<onal Connec<on Programs Community Programs Knowledge Building Programs
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Know Your Customer Types
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There are 2 major dis<nc<ons to customer types before we talk about the actual types of customers you will deal with
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Retail Customers
Retail customers are the buyers that purchase everyday items without regard to the brand – they are price conscious
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Brand Customers
Brand customers are loyal to a brand no ma"er where they purchase it – some<mes paying a premium
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The Resistant Customer Mindset: Hates your company and holds deep resentment for your brand Ø Behavior: – Will spread nega<ve word of mouth wherever possible – Took their experience with your brand personally and is looking for revenge – Will defect to your compe<tor first chance they get Ø Loyalty: Zero Ø Possibility of Defec/on: Extremely High (you can’t save this group) Ø
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The Indifferent Customer Mindset: Sees your company/product/ service as nothing more than a commodity Ø Behavior – Will always try to get lower prices to the point of near zero margin – They will promise volume or future business, but see li"le unique value in your offering – Always willing to walk away from the sale because they have other op<ons available Ø Loyalty: One Ø Possibility for Defec/on: Very High Ø
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