Financial/Profit Impact

Customer Experience and Customer Value: Where AI Is Failing

Customer Experience Drives Customer Value In today’s competitive market, customer experience is a critical driver of customer satisfaction. Therefore, companies that excel in delivering positive experiences are more likely to retain customers, increase profitability, and enhance brand reputation. In contrast, poor customer experiences can lead to customer churn, negative word-of-mouth, and lost revenue. Yet, many […]

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How Can Companies Measure the Profit Impact of Their Marketing Budget

The marketing and sales of expense are the basis of a marketing budget and includes these expenses: Company & product advertising, sponsorships, social media, trade shows, retailer promotions, sales & service expenses as well as all people expenses (salary, overhead, travel, etc.) associated with marketing & sales activities. Let’s first look at how companies traditionally

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Why Is Subscription-Based Pricing So Popular?

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?

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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Why Should CEOs Worry About Customer Satisfaction?

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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What Are 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?

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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