When the Customer is King April 01, By Lisa Harrington No tags available Customer relationship management CRM helps companies maximize the value of every customer interaction and drive superior corporate performance. And the value of CRM grows considerably when it is tightly integrated with supply chain functionality.
Contact The Customer is King: But do you know who the Customer is? Even my favorite Management and Marketing guru Peter Drucker has a good quote relating to it: But how many companies actually live and breathe it?
More fundamentally, how many companies actually know who their customer actually is? And, are they right?
The customer is king; the consumer is king? It appears that in the consumer goods world there is a clear, implicit belief that the consumer is the customer. Indeed, from the responses to this question posted on LinkedInit appears that the words consumer and customer can be used interchangeably.
The word switch from consumer to customer is made almost subconsciously in many posts here, which leads me to conclude that the words are completely synonymous in the minds of many in the industry.
And what is wrong with that? This is the consumer goods industry after all! We know that consumers are important — and that not satisfying them is likely to lead to a very short-lived brand.
Why do you need to know who your customer really is? Consumers in one market like to drink beer at parties: A brand decides to corner the party market and launches in only a jumbo 48 pack. They launch it at a discount to the market because in research consumers expected to pay less for a bulk pack, but they had also made it a premium quality brew as the target consumer was planning to serve at upmarket events.
Needless to say they researched heavily with consumers and created a brilliant communication message which they leveraged through all available media. So far, so good, but what happens when it is presented to the trade? Well — it gets rejected by most customers. Retailers are disappointed with the lower than average margin, and the fact that it trades down other premium beer buyers on a bottle to bottle comparison.
Junior managers are dispatched to stores to see what is happening. The product is listed, they report, at the right price. But nothing is happening.
Nobody could spot the problem, until one bright young manager observes the shoppers. Even those with trolleys buy only a few items.
Following some shoppers back to the parking lot, she observes that there are very few cars, but lots of free courtesy buses. The pack is way too big to carry home on a bus. The story is exaggerated, but only a little. Trade was relatively weak and highly fragmented, so big national brands could easily call the shots.
But things have changed. Trade consolidation has given retailers power, and that means brands need to serve this customer too. Shoppers are much more influential, and behave differently and are influenced by different things than that which influences consumers.
If all we do is focus on them as consumers, we will miss much of the opportunity to learn about them, to connect with them, and to influence them. The consumer is still king of kings: But brands must be configured to ensure that they serve all three customers.
Branding models may still have the target consumer at their heart; but should also reference what the brand delivers for shoppers and retailers. The shopper, as the newest king on the block, is most often the one who gets neglected.
Ensure your colleagues and peers know the difference between the shopper and the consumer, and how this varies by store type. Your customer is a king too. The customer is king, but the consumer goods industry has three kings: Marketing must move on to a marketing approach which recognizes the need, and indeed the opportunities which come from marketing to these three customers in an integrated manner.After all, the reason "customer is king" is considered marketing gospel is because of the implicit assumption of a competitive market, where the .
Jan 22, · After all, the reason "customer is king" is considered marketing gospel is because of the implicit assumption of a competitive market, where the customer has all the choice in the world.
A variation frequently used in Germany is "der Kunde ist König" (the customer is king), while in Japan the motto "okyakusama wa kamisama desu" (お客様は神様です) meaning "the customer is a .
The Customer is King unknown A corporate cliche meaning that the direction of a business is ultimately determined by its customers.
The business is compelled to sell products and services that customers want/need, at a price they are willing to pay, and provide an acceptable level of service, otherwise customers will look elsewhere and . Customer relationship management (CRM) helps companies maximize the value of every customer interaction and drive superior corporate performance.
And the value of CRM grows considerably when it is tightly integrated with supply chain functionality. A "customer is king" approach is replacing the. The customer is king; the consumer is king? It appears that in the consumer goods world there is a clear, implicit belief that the consumer is the customer.
Indeed, from the responses to this question posted on LinkedIn, it appears that the words consumer and customer can be used interchangeably.