Welcome to the era of commercial transformation
Let’s start with the basics of marketing, the 4 Ps: Product, Place, Price and Promotion. They were introduced by McCarthy in the 1960s and have been used ever since to define marketing strategies. Since then, we have come a long way and although the 4 Ps are still valid, we now also have to decide on omnichannel approach, customer experience, customer value and technology.
New customer expectations
Customers today expect a seamless shopping experience, whether they are interacting with a brand through physical stores, computers, mobile devices, TV, catalog, kiosks or other touch points. This creates an increasingly complex customer journey, changing the way companies organize their business and back-end systems.
With these new customer expectations the traditional sales and marketing approaches are feeling the pressure. Companies need to transform their commerce office by introducing new capabilities in customer insights and segmentation, go-to-market strategies, omnichannel marketing, digital solutions and intelligence-driven growth.
The key to unlock your potential?
Understand your customer. Thoroughly.
If you have a complete understanding of your customers, you will be able to define the most successful marketing mix. In order to do so companies should create a single view of each customer’s purchasing history, characteristics and preferences and use all of that recombined information to communicate only relevant marketing messages based on your customer’s unique customer DNA.
Companies already know a lot about their customers. We all have a huge amount of data about them, but we are only using a fraction of that information.
Companies need to connect the dots, and add logic. You should bring together all your information silos and create a unique customer DNA. But the real value for your company is when you use those customer DNAs to optimize your sales and marketing strategies.
How much do you spend on increasing your customers’ experience?
This is where a potential conflict emerges. Is creating value for your customer automatically creating value for your company? Or in other words: do additional costs automatically generate new profits?
Influencing your customer’s experience and optimizing his journey so he becomes and remains loyal is one thing, but at what cost? There will be a tipping point (depending on each unique customer DNA) that will decide how much more you can spend on increasing the customer experience. And at what point it is no longer profitable.
The real exercise is to calculate the exact sweet spot: create the optimal customer journey (with the most effective and efficient sales and marketing campaigns) against the best profit.
Influence your touch points in real time
Today, already a small number of companies works on this advanced approach to execute unique sales and marketing strategies, driven by customer DNAs. And even this is now being challenged. Retailers and e-tailers are now looking to use this BigData-thinking in real time in order to influence your touch points in real time.
Imagine a customer enters your supermarket and you have mapped his unique customer DNA:
- Based on his preferences: you have local displays promoting only the products he likes
- Based on his purchase history: you give an additional discount when he purchases those items that were bought in combination with the current items in his basket
- Based on his customer lifetime value: you push relevant marketing messages to optimize the profitability of his shopping basket in real time.
We capture real-time information and adjust our commercial messages in real time.
And even now are we only at the very beginning of possibilities. When you connect the latest technologies with the latest marketing-thinking, you get a complete transformation, away from our traditional static commercial models.
Companies worldwide are searching for the ideal combination to deliver the optimal customer experience with the optimal lifetime value and profitability.
If your company is able to perform this exercise the best, you create a tremendous competitive advantage and will come out on top.
The use of advanced customer insights is a critical success factor for companies in the future.
The era of commercial transformation has arrived.
The era of real-time customer equity management is now.
PS: On Thursday February 5, we shared our ideas about extreme personalization and the use of (big) data to ensure a holistic, single customer view. Leveraging the huge amount of data we can gather from various data sources can mean a huge win for your company. Let us steer you in the right direction.
We recorded the webinar ‘The countless benefits of the single customer view’ for you. Here you go!