Customer change of assets, marketing the new rules 


  

 

 

In the customer economy, the customer has become an important force in deciding the life and death. Only for customers to become an effective asset in order to greatly enhance the viability of enterprises.

  In the past three decades, most Chinese companies follow the success of this logic: do first large-scale, do ring brand, as the market share gains, profits capital input.

  However, more and more entrepreneurs have found that the past experience of Souls million test seems insurmountable obstacles encountered:
Yiqijuechen lap down which large tracts of land, just a muddy swamp, and not to bring their own expectations of a good harvest; is like the TCL as an air win for Alcatel mobile phone business, and Tom Thomson TV business, but cause its huge losses.
  Carefully cultivated flowers of the brand, though very beautiful, but a lot of marketing expenses out of the relentless encroachment on the meager profits; as singing "more healthy non-fried," the grain temple as a "spoiler" status turned born, and almost Hukouduoshi success, but because of problems such as excessive marketing costs, resulting in tight financial chain, now has now phased out the people's vision.

  Dash global business empire, missing because it is too rigid, too believe that the logic of success in the past, but ignored the policy response to the new environment, and ultimately to the effect loss of Jingzhou, miscues; such as Ebay a big push into China, but no serious analysis of China market environment, blind adherence to charging mode, did not fully consider the customer experience in China, and ultimately frustrated the Chinese localization.

  While many companies in distress, there are some companies relying on its own business logic to achieve a great success:

   There is such a company, adhere to customer demand as the center, with a full range of diversification strategy in the world, to lose ground, dash, 500 in the world, only he can say, half the people in the world every day, directly or indirectly access to their products, he does not seem related to the orderly operation on thousands of products, he is the 3M company.

   There is such a company, stressed that the customer experience, increase customer value, a low price strategy and service innovation to break the rules of the game the aviation industry, creating high customer satisfaction, and ultimately become a global benchmark for business aviation industry, he is the Southwest United Airlines company.

   Such a company around customer needs, satisfy customer needs and then guide the excavation and to strong innovation, service and expansion capabilities, to build China's largest Internet business ecosystem, providing integrated solutions, he is Ariba Group.

   Throughout the process of interpretation of a variety of business segments, we can see that when the Chinese business community from the public economy, after the transition to the customer economy, the success of yesterday's logic has been unable to answer today's new business proposition, and today's success story also contains The success of the new logic.

   Times have changed the potential difference, potential difference is prepared change. Into the customer economy, the customer has become an important force in deciding the life and death. Therefore, only allow customers to become an effective asset in order to greatly enhance the viability of enterprises.

Is changing the business rules

   When the economic history since the era of access to customers, is quietly changing business rules:

  First, in the public economy is treated as a group to the customer, the surface of the common conceal their individual needs vary, the value resulting from the world but also to diversity;

  Second, the "blue ocean" of the word appears, in fact, have revealed an indisputable truth: growing homogenization of products, all companies can use the same manufacturing technology and branding tool, so that brand differentiation increasingly difficult;

   Third, the Internet has changed the entire process of production, supply chain and access to information the way - the Internet so that customers can not rely on manufacturers and retailers to get product information, product and delivery can be customized, the price mechanism is changed . According to a survey shows that consumers "need to buy at lower prices and better products to a higher level of service for completion of daily business, they need to experience the satisfaction of, and through the network, E-mail, telephone, shops, open-air pavilion spread more readily available to all. "

The economy is quite different from the public new rules of business, marking the arrival of the customer economy.

   In the customer economy, although most companies are aware of the new environment, companies no longer sell their products, but as something they need for customers to buy products, but also clearly integrate the supply chain collaboration, to provide customers with personalized and timeliness of products and services is important, but can not fundamentally solve the problem.

   What is more, many still regarded as the market share for the decision power of the brand influence of its corporate existence as a benchmark, leading enterprises have difficulties or even bankruptcy. Bibi are both examples of this:

   IBM has created a great popular success of economic times, but in 1993 its deep trouble, there is no technical background in Gerstner led a comprehensive reform - and establish a customer-centric organizational structure and corporate culture, technology and reduced product's role in corporate strategy, and focus on customers to provide total solutions, so IBM remodeling brilliant;

   However, more enterprises are not so fortunate, such as foreign Eastern Airlines, American Pet Online has had the great influence of the more famous brands, but the company eventually bankrupt; China in the 1990s, many emerging companies such as love and more Qin pool, three also have a very strong brand equity and market share, but eventually embarked on a road of no return.

  Obviously, they follow the traditional business logic has been unable to cope with new business rules.

   Then, in the customer economy under the new rules of the game, in which the wisdom of the enterprise to survive what and how to change themselves and adapt to the market?

   Now, passing the health of the financial statements of their own ability to greatly enhanced, but there are still an unforgivable flaw: the value of customers did not have the company's financial statements show. The market share, brand penetration and other indicators even though it can clearly manifested in the position of enterprises in the competition, but the major drawback of these indicators is a direct deduction of the brand's audience - customers, while ignoring a simple logic: business all marketing activities are designed to profit, but the source of profits is to attract and keep customers, customer purchasing value determines the size of the number of corporate profitability, so the customer purchase value of the company's profitability, can be said that customers are the profits go directly to contributors. Meanwhile, a company's capital equipment, personnel and management activities are aimed at customers and services, the size of corporate assets by the customer decisions. Therefore, the customer is the business of real assets, which require companies to the assets as an important element of the customer to re-evaluate their asset value.

The three strategies to maintain customer

   Specific assets of the customer, the more important is to find and maintain the value of customer assets to become effective, but not too much worthless fraudulent claims for negative value customers, this will only increase the burden on enterprises.

  Emotional value, experiential value and economic value of enterprise customers to maintain the core in the critical point, there are only three values for the customers to truly achieve an effective balance of customers. On this basis, the customer to maintain the policy in three ways: first by segmentation strategies, the distinction between the value of a variety of customers, followed by a strong enforcement system, "the customer put in place an effective asset", and finally to achieve synergy through co-branding strategy , strong support for the customer retention tactics.

One strategy: segmentation

   Correct segmentation of customers is the beginning of the customer assets of enterprises not only to grasp the "customers first" principle, but also to know exactly what the customer is first, what the customer is the second, third, fourth or even the first five. Correct segmentation strategy is to correct the value of the right customers, is a "smaller, deeper and more profitable" strategy, the specific can be understood as maintaining high profitability of customer groups, improve the profitability of customers in the lower profitability, to stop for customers who do not plan to profit, and the existing non-profit clients for processing. Heavy machinery such as Australia, the shipper (Skelton Tomlinson) was aware that some customers spent more than they value their customers raised non-profit non-mechanical costs, and abandon the other non-profit customers, but makes profit rose to $ 8,200,000.

Strategy II: Executive

   Strong execution is the value of enterprises to maintain customers, allow customers to become a core part of effective asset. Strong enforcement, including four parts: people-oriented customer culture, institutionalizing a comprehensive view of the customer information, the right organizational structure and comprehensive point of contact services.

   People-oriented culture to establish customer needs employee loyalty. Typically, companies with high rates of staff to maintain the same high customer retention rates. Good pay is the basis of employee loyalty, so that employees feel their pay and rewards are matched. On this basis, through training, empowerment and awareness, increased feelings of psychological staff of the enterprise identity is the key to improving employee loyalty. When the internal management and staff culture of self-recognition of the customer to have to lay the foundation for a strong executive. Through powerful brands such as IKEA in strategy, greatly improves employee loyalty, and ultimately created a high customer satisfaction.

   Institutionalization of a comprehensive vision of the customer information to outside help to improve the reaction speed of business. Accelerate problem identification and resolution, while its institutional, corporate customers will be able to provide appropriate services for each grade, thereby enhancing the value of customer assets.

   Right organizational structure is essential for the achievement of customer assets. Business strategy through market research, access to retain customers, improve customer loyalty, product and service delivery, technology and processes to collect profits, and establish a customer-centric processes of the organizational structure to support the implementation of customer assets. Support Center Ping An Group, the practice of building a good proof of this: Ping of the branch by completing the integration of resources, not only reduces the cost and enhance the risk control, but also for creating an efficient and standardized professional services, providing customers with comprehensive resources to provide comprehensive financial solutions to a greater possibility of fully reflects the intensive management model.

   Contact the customer service is the direct implementation of the measures of assets. The key to improve the customer experience is not a department in contact with the outside world, but to all employees, customers and employees should take a real moment of every exposure, transmission of high-quality service experience. Have understood the importance of the point of contact service, great company at this point are very good. Dell's success comes from the legendary Indian DNA in the company's words: "customer experience: have it!"

Strategy three: the United

   Markets have become too crowded, the product becomes too similar, the customer can not become too tired to make purchase decisions ... ... in the new business world, companies only in the ability to pass on customer value and competitive edge can really make the customer be an effective asset. This requires good coordination of all the allies involved in the action to meet customer requirements. Here's allies, including strategic partners, suppliers, supply chain partners and even customers.

   Customer word of mouth will help promote the growth of enterprises, suppliers must meet quality, product or service to submit, and other criteria. Sales channel partners, we must expand the ability to deal with customers. Strategic partners must provide a way to access to markets, innovation, and funding. Effective joint parties, will greatly enhance the overall coordination capacity, to a certain extent, improved the customer the possibility of an effective asset. PPG effective integration of industrial chain, such as resources, to create a highly efficient supply chain management system, strong writing by the parties, to meet customer needs while creating a successful business myth.

Customer Equity: Measuring corporate customers a new tool assets

   When customers become effective assets, how to quantify it? This requires the customer benefits of this new tool to borrow.

  Customer equity is the customer lifetime value depreciation over time. This value from the present and the future profitability of customers and word of mouth such as the respected and intangible benefits generated. Repeat customers are willing to buy interests include the kind of loyalty and initiative to forgive the inevitable errors of the kind of trust. Such as intellectual property and reputation, even though in the balance sheet can not find the customer equity, but it is a measure of the size of the important ways of enterprise assets.

  Customer interest in the profitability of selling began in the first. Over time, more profit from the additional sales, lower the cost of the service existing customers. Additional revenue comes from recommendation or word of mouth marketing. While marketing may initially recommended less, but they maintain this relationship will gradually become important under.

   Customer interest calculated is needed or should have been calculated for each company number. These figures include the profit, customer acquisition costs (or marketing costs), cost of goods or services, and maintain proportion. Ideally, companies should also follow the leader and the customer life cycle.

  The calculation is easy, and sales from the company can understand all aspects of customer interest. Many foreign companies have noticed a sense of     the importance of customer interest, Australia is aware of a number of heavy machinery shipper customers consuming more than their value, so customers improve the non-profit non-mechanical costs, other non-profit customers account was also sold, profits will increase year to 820 million.

   Maintain customer loyalty and by quantifying the impact of increased customer interest in the value of enterprise assets. It passed a decision-making O'clock in the Cai Wu Yi customers as oriented view. In addition, customers can help distinguish between rights and interests of customers, the company focused on the customer rather than product or market share.

The advantage of customer interest, including:

1. To "keep the money rolling"

   McKinsey estimates that quarterly profits of an existing customer a new customer 2 times, repeat purchase customers can bring a 10% growth in earnings growth of 9.5%. The profitability of a low cost of sales from customers additional purchase. Required to sell a new customer to sell an old customer is 4 times the effort required. Another source of profit is related to the goods purchased - or change the value of cross-selling of goods to buy, that is, the so-called up-selling. High profitability of credit card giant Capital One Financial Corporation U.S. (Capital One) has been focused on customer interests, created its glory today.

2. Allow enterprises to "targeted"

  Not every customer values are equal. The profitability of highly profitable customers are those customers with low earnings of 6 to 10 times. The value of the customer is not always determined by the scale. Usually the largest customers have the most expensive services, have a longer sales cycles and lower margins. United States Fidelity asset management company found that 10% of its assets of more than 2 million U.S. dollars that "personal access" customers are unprofitable.

  Know which customers are unprofitable, can significantly improve access to customer's return on investment. By distinguishing between high-profit customers, the general profitability of customers and non-profit customers, customers not only help promote the best interests of the customer to maintain and improve the target prospects. To marketing activities, "targeted." Customer equity to get a customer to be able to show how much. Those who focus on corporate sales or market share, because of the consumption of too much cost and lost customers. Customer equity also shows that the investment is to maintain a customer number, or how much the price must be increased in order to maintain profitability, which enables businesses to remedy.

3. To "keep the gaze"

   The past activities of enterprises are scattered, but by the dynamic management of customer equity, we can find what customers are loyal and profitable. This makes corporate marketing activities to attract customers to buy from, change how to maintain customer-oriented problems and repeat sales.

4. Let customers "loyal"

   Customer loyalty marketing costs far less than potential customers. A survey shows that customers are loyal customers of up to 37% of the customer retention rates. In car sales, more than 50% of sales, is derived from the recommendation of friends and family complete. Moreover, loyal customers affected by the cost to get customers, get customers through other means than the cost to be low. In addition, loyal customers are less likely to be competitors to lure more likely to forgive some of the company's fault.

   In the new commercial society, we need to know that a variety of business success model, the answer does not the only, the key is how you choose. But one thing is certain, the customer is always decide whether you live or die, powerful or the weak fundamental. Customers to be your assets, not necessarily make you successful, but will not let you fail.