Customer Value Articles
Improve your Profitability using Behavioural Science
Many Australian retailers are struggling to maintain their turnover and profit margins. We constantly hear that the Internet, global competition and the Aussie dollar are conspiring to depress the Australian retail sector. In essence there are rational reasons why retail spending has been in decline.
There is no doubt that customer purchasing behaviour is not only influenced by rational thought. Behavioural science examines how customer’s perceptions of an interaction are influenced by the amounts and sequencing of painful and pleasurable experiences during buying behaviour. Insight into the pleasure and pain that customers experience directly influences spend levels and customer satisfaction.
Think Different
Whether you are a lover or hater, promoter or detractor, a user of Microsoft Windows or Google Android, there is one thing we can all agree on. Apple Inc. with Steve Jobs at the helm has influenced ours lives in one way or another. You may be a “disciple of the church of Apple” or wishing to bring it down, either way Apple has been on the tip of your tongue. This blog post aims to discuss how brands, especially brands like Apple, can evoke such strong emotional responses in us, either on a conscious or subconscious level, and whether brands are simply a function of clever marketing and advertising or evolve from somewhere deep within the psyche of an organisation.
Taking advantage of tough conditions by building brand loyalty
There’s no doubting that Australia has largely dodged the GFC. On the whole, our economy continues to recover, thanks largely to iron ore demand from China. And whilst life is rosy in the mining sector, many other industries are struggling to recover. Recent interest rate rises and falling consumer confidence is causing many businesses to be cautious.
Tough market conditions do however present opportunities for all businesses. Whilst many companies are retreating away from investment, smart companies are increasing theirs.
Developing a Customer Value Proposition
In today’s challenging market environment, it is imperative to provide the customer with superior value. Providing more for less is what today’s customers expect, if not demand.
Companies are aware of the importance of delivering customer value, but come unstuck when deciding what value is and whether it is being delivered to the customer.
A Customer Value Proposition is a statement of the end benefits customers can expect from a product or service at a given cost of obtaining those benefits. Customer value can be defined in many ways, but ultimately it is what the customer perceives it to be.
Survive the slowdown by building brand loyalty
Harvard Business School Professor, John Quelch says “Instead of cutting the market research budget, you need to know more than ever how consumers are redefining value and responding to the recession.” He also states further that “successful companies do not abandon their marketing strategies in a recession; they adapt them.”
Many organisations simply examine the sales forecasts and cut spending across the board during a period of economic slowdown without considering how these cuts will impact on communication. Companies that do not ‘speak’ to their customers during recession times disengage them and find themselves vulnerable once the economy has regained momentum.