Customer Focus, Voice, and Experience (MM Notes) PDF

**Unit 1: Customer Focus, Customer Voice, and Customer Experience** **Voice of the Customer (VoC)** Captures and interprets customers\' expectations, preferences, and experiences with a brand or product. - **Data Collection**: Involves gathering data from various sources, like social media,...

**Unit 1: Customer Focus, Customer Voice, and Customer Experience** **Voice of the Customer (VoC)** Captures and interprets customers\' expectations, preferences, and experiences with a brand or product. - **Data Collection**: Involves gathering data from various sources, like social media, complaint forms, and opinion aggregators. **NPS (Net Promoter Score)**: Measures customer loyalty, though recent studies suggest it should be supplemented with tools like Customer Journey Maps and multi-question surveys. To calculate the NPS: % promotors - % detractors. **However, NPS has become overrated. Recent studies that analyzed thousands of customer interviews claimed that NPS does not correlate with revenue or predict customer behavior any better than other survey-based metrics.** **Given the limitations of NPS, it is clear that a more comprehensive approach is needed to measure and assess customer satisfaction. This involves supplementing NPS with other sources of information, such as the Customer Journey Map, Multi-question Satisfaction Surveys, and AI Techniques for VoC analysis.** **\ ** **2. Customer satisfaction: Customer Journey** **The Customer Journey Map** is a tool that helps to understand the journey that a potential consumer takes in their interaction with the brand, from the moment they are not even aware of a need that can be met to the conversion, loyalty, or recommendation stage. With this tool, we can understand the experiences, emotions, and stages that this consumer goes through as they progress in their relationship with the brand. This journey comprises multiple touchpoints, which can be any interaction or exposure the customer has with the brand, either directly or indirectly.  1\. **Definition of Buyer Persona**: semi-fictional representations of your ideal customer based on actual data\ 2. **Identification of Phases of the Journey**: Establish the main stages the customer goes through, commonly categorized as awareness, consideration, decision, purchase, and postpurchase.\ 3. **Touchpoint Mapping** identifies all the touchpoints that the customer has with the brand in each phase, including online and offline interactions.\ 4. **Identifying Moments of Truth**: These are those critical points in the journey where the customer forms a strong impression (positive or negative) about the brand.\ 5. **Customer Experience Analytics**: This is not just about assessing customer feelings but about gaining deep insights into their satisfaction and needs at every touchpoint, which is crucial for a successful marketing strategy. **2. Customer Satisfaction: Experiential Marketing** **Experiential marketing** is a strategy that focuses on creating memorable and emotionally meaningful experiences for customers to deepen their connection with the brand and increase loyalty. This technique is based on the idea that consumers do not just buy products or services but are looking for experiences that resonate on a personal and emotional level **Neuromarketing** has shown that experiential marketing can generate a profound emotional impact on current or potential customers. *Key Aspects of Experiential Marketing:*\ Direct interaction\ Emotions and Memories\ Multisensory Engagement\ Customisation **Connections of Experiential Marketing with Customer Satisfaction, Loyalty and Retention:** - Creating Positive Memories: Memorable experiences are more remembered and valued than conventional advertising messages. - Differentiation from the Competition: In saturated markets, offering a unique experience can differentiate a brand from its competitors. - Emotional Engagement: Emotions play a crucial role in purchasing decisions. - Perceived Value: By offering experiences rather than just products, brands can increase perceived value. - Direct Feedback and Continuous Improvement: Experiential interactions allow brands to receive real-time customer feedback. - Sharing on Social Networks: Impressive and exciting experiences are likely to be shared on social networks. **3. Customer satisfaction and profitability**  Customer-centric companies offer high levels of value to their customers and other stakeholders. More satisfied and loyal customers increase profitability (customer lifecycle). This result is obtained through a customer-focused culture shared by employees, executives, and suppliers. Increased sales and margins are not the result of cost-cutting, but of a strategic investment in those areas of the company that are proven to drive customer satisfaction and value, demonstrating a long-term vision and planning. Complaint forms as an example: A diagram of a company Description automatically generated **\ ** **4. Building a customer-centric organization: Marketing 7C Compass Model**  The **7Cs Compass Model**, developed by Professor Koichi Shimizu, is a framework in marketing designed to address both comarketing and collaborative marketing efforts. - This model is known for its holistic approach, focusing attention not only on the product and the consumer but also on external factors that can affect the customer experience. - It serves as an alternative to the traditional 4Cs model by adding additional components to better understand the complex dynamics between companies and their markets. Chapter 2: Marketing Strategies and Plan **1.Marketing Management** Marketing Management could be defined as the art and science of choosing target markets and building stable relationships with them. That is, finding, attracting, keeping, and growing target customers by creating, delivering, and communicating superior value. (Kotler & Armstrong, 2013). In the field of marketing, the concepts of strategy, tactics, and objectives are fundamental to the development of an effective marketing plan. **1.Differences Between Strategies, Tactics, and Objectives** **Strategies** are the high-level plans that an organization establishes to achieve its long-term goals and objectives. They are the framework within which all tactical decisions are made and are aligned with the company\'s mission and vision. In marketing, strategies include the choice of product market, the choice of target market, and the positioning of the brand. **Objectives** are specific, measurable, achievable, relevant, and temporary goals (SMART criteria) that the company expects to achieve and that must be aligned with the overall strategy. Goals are more concrete than strategies and are set to ensure that the company effectively works towards its vision and mission. **Tactics** are the specific actions or steps taken to achieve the established objectives; they are concrete initiatives implemented to execute the strategy and achieve the objectives **2. Choice of Products/Markets: Growth** Marketing Management is primarily responsible for contributing to the rest of the organization to achieve profitable company development. To this end, Marketing Management is usually responsible for identifying, evaluating, and choosing market opportunities and establishing strategies to take advantage of them. The Product/Market Expansion Matrix (also called the Ansoff Growth Matrix) is one way to identify growth opportunities. **The Product/Market Expansion Matrix** is a powerful portfolio planning tool designed to pinpoint the company\'s growth opportunities, be it through market penetration, market development, product development, or diversification. A diagram of a product strategy Description automatically generated **Market penetration** \> same product, same market. This could be a re-launch of a product.\ **Product development** \> new product, same market. This could be a line extension of a product.\ **Market development** \> existing product, new market. Selling your product in a different country.\ **Diversification** \> existing product, new market. Completely new product in a new market. Different types of diversification strategies: **Vertical integration**\ Backwards \> the organisation becomes its own supplier so it can control its inputs (Zara)\ Forwards \> the organisation becomes its own distributor and can control its outputs. **Horizontal integration**\ Related \> happens when a company combines with other companies in different, but related, industries. Computer + phones.\ Unrelated \> happens when a company combines with other companies in different and unrelated industries. Banks with hotels (shareholders). **CONSOLIDATION**\ On other occasions, the Marketing Department also participates in Divestment Decisions necessary to contribute to the development of the organisation.  On other occasions, the Marketing Department also participates in Divestment Decisions necessary to contribute to the development of the organization Entrenchment, some of the references/versions of a product are no longer marketed in all or some of the geographical markets in which they were marketed: The Coca-Cola Company stopped marketing the CocaCola Light Lemon flavor in Spain in 2011. Product Contraction, a term used in Divestment Decisions, refers to a product (with all its versions) that is no longer marketed in all or some of the geographical markets in which it was previously available: Pepsico launched the Mirinda brand in Spain (1957) for the first time, with several flavors. In the 90s of the last century, it stopped distributing it in Spain, although it continues to market it in many countries. Business Contraction, another aspect of Divestment Decisions, is when the company sells a brand or division to another company or, if this is not possible, abandons that business. This process is often guided by the Marketing Department\'s strategic insights: Coca-Cola Company will stop producing the Tab brand in 2020, the company\'s first sugar-free soft drink and an icon of the 1980s. **3. Marketing Plan: Concept** **Marketing Plan: a** marketing plan is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives. It contains strategies, tactical guidelines for the marketing programs and financial allocations over the planning period **Content** A diagram of a marketing strategy Description automatically generated **4. Conclusion** **EXAMPLE OF DECISION-MAKING IN MARKETING:\ ****\ ** **\ ** **Strategic vs tactical process** A close-up of a chart Description automatically generated Strategic marketing: Takes a longer-term time frame and broadly defines the organization\'s marketing activities. Tactical marketing: This takes a shorter-term time frame and concerns day-to-day marketing activities  **Why does planning matter?** **Adapting to change**: Planning provides an opportunity to examine how changes in the business environment have/will affect the organization. It enables management to focus on strategic issues as opposed to day-to-day operational problems.\ **Resource allocation**: Planning allows us to deploy resources to effectively meet opportunities and threats. No plan can succeed without appropriate resources.\ ** Consistency**: By providing a common base to work from (e.g. techniques and assumptions) the overall decision-making process can be enhanced. Additionally, common methods and formats should improve internal communication.\ **Integration**: As a strategic process, planning should facilitate the integration and coordination of the marketing mix. By providing a strategic focus it should be possible to generate synergy from the individual elements of the marketing mix.\ **Communication and motivation**: The plan should clearly communicate strategic intent to employees and other stakeholders. Clear objectives and an understanding of the individual, or group, contribution to the process serves to generate 'ownership' and motivation.\ **Control**: All control activities are based on some predetermined plan. The planning process should set meaningful targets, thus defining the criteria by which success is measured. A diagram with blue and white text Description automatically generated **Chapters 3+4** **1.Customer Segmentation and Product Positioning** Should you only focus on the "Poster Child"?\ Poster Child: someone or something that is used to represent a particular quality or characteristic  **2. STP Process** Profile development: Customer segments according to their need A diagram of a pie chart Description automatically generated Forces Creating Customer Needs-Based Segments  A diagram of a company Description automatically generated  A blue and yellow pie chart Description automatically generated Steps in Customer Segmentation: 1\. Need identification 2\. Determine needs importance 3\. Needs-based segmentation (for insight) 4\. Segment profiling (for actionability) 5\. Segment attractiveness 6\. Segment profitability 7\. Segment positioning 8\. Segment strategy "Acid test" 9\. Implement strategy for customer focus  A group of people sitting at a table Description automatically generated **\ ** **Implementing Strategy for Customer-Focus** Segmentation strategies must be expanded to include all marketing mix elements to be successful. A strategy may include only product and price, for example, but a complete marketing mix strategy also includes promotion (communications) and place (sales and distribution).  **3. Target Market Selection Strategies** A diagram of a business strategy Description automatically generated  A diagram of different types of yogurt Description automatically generated **4.Customer Satisfaction and Segment Monitoring**  **5. Conclusion** Customers in different market segments may face different problems. Or they may seek different solutions for the same problem. Each situation translates into customers seeking a different product or service benefits. A company should focus on customers in its target segments and use their needs, behaviors, customer experiences, and customer satisfaction to develop a segment persona. Segment descriptors sharpen a company's understanding of customers' different needs and divide them into actionable groups. Taking into consideration segment attractiveness, profit potential, and available resources, businesses may choose from several positioning strategies, from mass-market to subsegment strategies. Once customer-focused businesses have identified their target customer segments, they seek to satisfy each group's unique needs and continually monitor the segment. **Chapter 5: Objectives in Marketing** **1.Hierarchy of Objectives** There is a hierarchy of objectives in an organization, with corporate objectives defining the directions and goals for the organization. Corporate objectives may take many forms, from them, appropriate corporate strategies are identified and selected as the means of their achievement. These corporate strategies are then passed down the hierarchy of command and communicated to the functional levels. Accepting the fact that the corporate level has decreed what must be done, it is then up to the functional levels to translate the corporate strategies into workable functional objectives. A stack of colorful boxes Description automatically generated **2. Purpose of Marketing Objectives** The main purpose of marketing objectives is to achieve the corporate objective(s). There are 3 viewpoints of researchers. **McKay's (1972):** - To enlarge the market - To increase the market share - To improve profitability **Gultinan and Paul (1988) -- they argued that 6 objectives should be given consideration:** - Market share growth - Market share maintenance - Cash flow maximisation - Sustaining profitability - Harvesting - Establishing an initial market position **Ansoff (1968) argued that marketing objectives can only ever be about:** - Products and markets - Product and markets are either: existing or new. **3. Types of Marketing objectives** **Sales Objectives:** - In euros for sale - In physical units - In market share - Conversion rate **Profit objectives:** - Net profit - Profit on sales **Brand awareness objectives:** - Brand image - Brand awareness - Brand reputation **Loyalty objectives:** - Reduce the abandonment rate - Increase repurchase rate - Increase cross-selling **Engagement objectives:** - Increase social media interaction - Increase user-generated content **Web traffic objectives:** - Increase the number of visits to the website - Improve time spent and navigation on the site **Customer satisfaction objectives:** - Complaint forms - Satisfaction indices - Recommendation ratings **New product launch objectives** - Create expectations and excitement around a new product - Generate quick sales after launch **4. Developing Marketing Objectives (SMART)**  To be of value, objectives must be relevant to the staff responsible for achieving them. This is the responsibility of the marketing director or manager. Examples \> A close-up of several colorful rectangular signs Description automatically generated **5. Conclusions: Benefits and Problems** **Benefits \>** Give a clear direction to the personnel involved. Everyone involved knows exactly what is expected of them and how they are supposed to be working. Can create unity. A common goal unites people in all circumstances, particularly when the goal is seen as being worthwhile. Allow for measurement of achievement. Because the objectives specify targets and time scales, monitoring can be carried out to check progress. The setting of standards can become a powerful motivator for personnel as they will strive to do better. Can reduce risk. If all personnel know what it is they are working towards, there will be less risk of \"mavericks\" doing what they think is best, rather than what has been laid down by the objectives. Can improve decision making. Managers at lower levels will be able to make day-to-day decisions based on their knowledge of the objectives and the progress made in achieving them. **Problems \>** Fear of failure. If previous objectives were not achieved, planners may be reluctant to define new objectives and will not strive to achieve. Apathy. If the personnel in the company are demotivated for some reason, they will not be interested in any new objectives as they will see them as \"just another ploy to get us to work harder\". Success. When a company is doing well, a new objective is often seen as being unnecessary. This is the \"if it works why try to fix it?\" syndrome. Organizational culture. A lack of marketing orientation in an organization can prevent objectives from being formulated. Lack of knowledge. Perhaps the biggest problem in formulating marketing objectives is the fact that knowledge is necessary. Thus, to formulate an objective you would have had to investigate all the factors influencing your plan before you could even begin. **Chapter 6: Marketing Analytics, Performance, and Profitability** 1. **Marketing Analytics and Marketing Metrics**  A diagram of a company\'s marketing metrics Description automatically generated with medium confidence  2. **Marketing Performance Dashboard** MD is a visual tool that provides an at-a-glance overview of key marketing metrics and performance indicators in real-time. It consolidates data from various marketing activities and channels, such as social media, email campaigns, website traffic, lead generation, and sales conversions, into a single interface. This allows marketers and business leaders to track performance, assess progress toward goals, and make data-driven decisions A diagram of marketing performance dashboard Description automatically generated **Key Features of a Marketing Dashboard** **1. Real-time Data Visualization:** Displays up-to-date data in visual formats like charts, graphs, and tables to help marketers quickly interpret trends. **2. Performance Metrics:** Tracks KPIs such as Return on Investment (ROI), Cost Per Acquisition (CPA), conversion rates, customer lifetime value (CLV), and engagement metrics. **3. Customizable:** Allows users to customize the dashboard to display the most relevant data according to specific marketing goals or campaigns. **4. Integration:** Connects with various platforms like Google Analytics, social media tools, email marketing software, and CRM systems, providing a holistic view of marketing efforts. **2. Marketing Performance Dashboard** *How do we make a Dashboard that works?* **1. Develop marketing objectives** that are measurable and congruent with the company\'s strategy. **2. Identify critical** indicators for the company (those directly related to strategy and objectives). **3.** Marketing people must **update data** acquired through third parties or from other areas of the organization with the regularity required by the indicator. **4.** Design a **dynamic and interactive interface** to handle the large volume of information provided by the studies acquired and by the other departments. **5.** Create a **marketing management committee** with the following roles: Responsible/head, marketing director recommended\ Project leader will be responsible for achieving the objectives\ Support (a person with knowledge of projects and organizational changes-HR) 3. **Net Marketing Contribution and Operating Income**