Customer Driven Marketing Strategy
Customer-driven marketing strategy focuses on identifying and meeting the specific needs and preferences of customers. It involves gathering data and insights to understand customer behavior and using this information to tailor products, services, and marketing efforts. By prioritizing customer satisfaction and engagement, businesses can build stronger relationships and drive long-term success.
4 Key excerpts on "Customer Driven Marketing Strategy"
eBook - ePubEnvironment and Innovation
Strategies to Promote Growth and Sustainability
- Clara Inés Pardo Martínez, Alexander Cotte Poveda, Clara Inés Pardo Martínez, Alexander Cotte Poveda(Authors)
- 2021(Publication Date)
- CRC Press(Publisher)
...A satisfied consumer is one who is willing to repeat the purchase, recommend the brand, increase their expenditure or the frequency of the purchase, or even collaborate with the brand by offering their opinion to improve the product or service. In this sense, the main focus of a relationship-marketing plan is loyalty, identifying who the most profitable customers are in order to keep them, and then increasing revenues through the different actions that can be carried out. Customer data provides the information that allows the company to build maximum relevance with the consumer, enabling appropriate communication in terms of the message, context, form, and location. Data-driven marketing is based on data to define the strategy and is intrinsically related to CRM for the numerous reasons commented above. Thanks to the deep knowledge of the consumer and their needs, we can both improve the relevance of the brands through the content within the loyalty program, as well as align better to the business objectives. Through the data and records that it leaves, we are able to design brand strategies that align business objectives with the client’s needs. It is necessary to highlight that although a company undertakes a CRM strategy, this does not guarantee that immediately or even in the long term you will start to obtain higher revenues from your customers...
eBook - ePub- Michael Baker, Susan Hart, Michael J. Baker, Susan Hart(Authors)
- 2016(Publication Date)
- Routledge(Publisher)
...The purpose of addressing business strategy, as part of the CRM strategy development process, is to determine how the organisation’s customer strategy should be developed and how it will evolve in the future.Customer strategyThe other half of the strategy equation is deciding which customers the business wants most to attract and to keep, and which customers it would prefer to be without. No firm can successfully be ‘all things to all people’, and thus finding the best potential customers and retaining them is vital.Customer choice and customer characteristicsThe prior review of business strategy will be instrumental in reaching a judgement on broad customer focus. A consideration of the following issues will assist the organisation to determine more specifically its choice of customers and their characteristics when defining the role of CRM in the organisation:Nature of customer strategy: Do you have one? Is it flexible enough to withstand change in the competitive environment, and strong enough to lead constructive change within the organisation? What is the current nature of your dealings with customers? Are they basic transactions or more formalised relationships? Do you specialise in serving an elite clientele or is your focus more ‘mass market’?Status of customer strategy: Is your customer strategy considered important within the organisation? Does the management of customers receive sufficient and appropriate support in terms of resource, recognition and real commitment? Is it working? If not, why not?Customer segments: Who are your existing and potential customers? Which forms of segmentation are most appropriate rather than easiest to achieve? What are the major segments? What are the opportunities for micro-segmentation, one-to-one marketing and mass customisation?Knowledge of customer base: Can you describe in detail the profile(s) of your customers? Can you identify patterns in their motivations and behaviours? If so, in a refined, or basic, manner? Do you actively and proactively seek to build your customer ‘intelligence’? Do you fully exploit the customer intelligence you have?Product/service involvement and complexity of purchasing behaviour: Who constitutes the decision-making unit in your customers? How are your products/services purchased? How important are they to your customers? Is your average level of customer service quality exceptional/adequate/poor? Are you working to improve/maintain it?Customer relationships: What kinds of relationship do you have or want to have with your customers? How retainable...
eBook - ePubDemand-Driven Business Strategy
Digital Transformation and Business Model Innovation
- Cor Molenaar(Author)
- 2022(Publication Date)
- Routledge(Publisher)
...The platform will understand their customers better, because they have insight into purchasing preferences because of the flow of consumer data (Boora & Singh, 2011). This will result in cross-pollination by consumers to other non-competitive businesses. This increases the power of network effects even more (Choudary, 2015). The success of a focus on loyalty depends on the speed at which the data is used in a buying process. So again: companies have to be agile and flexible (Butscher, 2002). A satisfied customer is the result of a business (Boora & Singh, 2011). Consumer’s Perspective on Personal, Demand-Driven, Marketing It’s important to know what customers expect from geting a demand-driven communication. Their thoughts may influence, sometimes unconsciously, the way they behave (Butscher, 2002). Their behavior is what companies are most likely to measure, because behavior leads to (not) buying behavior. Knowing what customers’ drive is, is an important aspect to aquire new customers. Acquiring new customers is a major driver of growth, and growth is a key priority for every business (Gupta, 2018). Ultimately, the true goal of the economy is to create value (Cinquini et al., 2012). There are three ways a firm can provide information and influence consumers: The first one is through paid media, where you can think of ads on TV and radio. The second one is owned media, which is for example the company’s website. Also, the ranking in online searches can be influenced this way. The last one is through direct communication based on past behavior and predictions. As described before, the key for companies is to focus on what the customer wants. This shift, from product orientation to customer focus, has a couple of effects. The product tunes in better with the customer’s needs. It also increases satisfaction, creates loyalty and results in a more concentrated strategy for companies...
eBook - ePubSupply Chain Strategies
Demand Driven and Customer Focused
- Tony Hines(Author)
- 2014(Publication Date)
- Routledge(Publisher)
...age, lifestyle, location, other identified customer attributes. • Focus marketing activities to match the target customer profile. Market differentiation Offering customers perceived or actual differences through branding. • Promote differences through brand strategy and brand development, e.g. reliability, reputation, service. • Innovation and creativity in marketing communication. • Confuse the market and make product/service comparison difficult. Product differentiation Offering products that differ considerably from competitor offerings. • Innovation and creativity. • Product/service development. • Time to market – quick response. • Continuous improvement (Kaizen). • Confuse the market and make product/service comparison difficult. A market segmentation strategy requires the organization to focus upon a particular group of customers. If you consider the metaphor of an orange you are now focusing attention on one part, a segment rather than the whole orange. In marketing segmentation terms the organization must identify groups of customer with similar characteristics such as demographics, psychographics, geographies and lifestyles. An illustrative example might be a niche retailer such as Agent Provocateur that targets the young and sexy lingerie market or convenience stores targeting time poor cash rich busy professionals. This strategy is what Porter referred to as a focused strategy. A market differentiation strategy creates difference through reputation reliability, branding and service elements. Note the product or indeed service itself may not be that different from competing offers but the way it is communicated to the market place will be. The final strategy is product or service differentiation: a better product, more features, more benefits bundled for the customer to make the product or service more attractive to the customer. Perhaps more peripheral goods and services are included in the offer or the variant is more attractive to the customer...
