Customer Focus

Customer Value Showdown: How Walmart can Close the Gap with Amazon

Customer Focus /

Walmart’s Commitment to Customer Value In sharing its results on August 15, 2024 Walmart exceeded Wall Street expectations, with total revenue climbing 4.8% to $169.34 billion, driven by everyday low pricing (EDLP), a focus on convenience, and a broad assortment of products and brands. CEO Doug McMillon highlighted Walmart’s dedication to customer value during the […]

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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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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 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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