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How Can A Company Differentiate Its Offerings From Competitors?

Brand Strategy, Customer Engagement, Customer Focus /

From customers’ perspective, a market is commoditized when most competitive offerings are undifferentiated from each other. In such a market, customers can choose from the many available options without incurring any risk. Naturally, they gravitate toward the lowest price option. This forces competitors to aggressively compete on prices and erodes a brand’s pricing power. Over […]

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Why Is Subscription-Based Pricing So Popular?

Customer Engagement, Customer Focus, Financial/Profit Impact /

Consumers use many product categories on a continuous basis. These include beauty, grocery, health and baby care, automotive parts, electronics, industrial supplies, lawn and garden, pet supplies, office supplies and sports and toys. Today websites such as Amazon.com offer customers the option of “One-Time Purchase” versus “Subscribe-And-Save” plans. According to Amazon.com, more than 51% of

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Why Distributors & Wholesalers Are Thriving in an Era of E-commerce?

Customer Engagement, Financial/Profit Impact, Market Focus /

With more and more people shopping online, many have been predicting the demise of distributors and wholesalers. It was believed that manufacturers could bypass channel intermediaries such as distributors, wholesalers, and retailers by “selling directly” to customers. Theoretically, if customers could bypass distributors and retailers and buy direct from manufacturers it would lower costs, make

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How Can Companies Capture the Voice of the Customer?

Customer Engagement, Customer Focus /

Capturing the voice of the customer (VOC) entails listening to customers to develop an understanding of their needs and value drivers. Without capturing their customer’s voice, companies risk alienating them, lowering customer satisfaction, and slowing financial growth. Undoubtedly, the first and most critical step in value creation for customers is to gather their voices. Capturing

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Why Should CEOs Worry About Customer Satisfaction?

Customer Focus, Financial/Profit Impact, Marketing Metrics /

Customer satisfaction is the extent to which a company can meet or exceed the most important needs of the largest proportion of its customers. How does customer satisfaction benefit a company? A 2023 paper published in Marketing Letters synthesized 245 articles representing a combined sample size of 1,160,982. The results show a positive association of

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How Does Product Positioning Drive Customer Strategy?

Brand Strategy, Customer Engagement, Market Focus /

Product positioning is a systematic process to ensure that the benefits associated with the company’s offering meet the target customers’ most important needs in a way that (1) satisfies customers and (2) increases sales and profits for the company. The benefits not only include product attributes but also brand reputation, pricing, distribution, communication, and customer

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What Are Marketing Metrics?

Financial/Profit Impact, Market Focus, Marketing Metrics /

Marketing metrics help a company measure its marketing performance. CMOs, marketing executives, brand managers and product managers can use marketing metrics to assess and demonstrate marketing’s contribution to a company’s sales and profitability [1]. As seen in Figure 1, a marketing metrics dashboard helps executives develop marketing strategies and relate them to marketing and company

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How Does Customer Satisfaction Impact Company Profits?

Customer Focus, Financial/Profit Impact, Marketing Metrics /

Customers who are Extremely/Very Satisfied with a company have an important impact on company profitability (1). A summary of 40 years of research representing more than 1 million customers concluded that customer satisfaction predicts company profits (2).  Extremely/Very Satisfied customers account for a disproportionately large portion of a company’s profits. To grow profits, companies should

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