According to research by Cap Gemini, brand loyalty customers bring in 23% more profits than regular customers. With so many benefits, it’s not surprising that marketers are gradually shifting from a product-based marketing strategy to a customer-oriented strategy – a tendency to put each specific customer as a customer. center of marketing activities.
We are often familiar with the profit-centered school of all marketing activities. Isn’t profit the driving force behind the goals we’ve set? But do not be surprised that customers are the most profitable objects for businesses.
In order to help you understand the importance of customer-based marketing positioning strategy, this article will provide many visual examples with current practices of businesses.
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The importance of customer-based marketing positioning strategy
How to influence the customer’s purchasing decision process has never been an easy task.
According to a report by BIA/Kelsey and Manta, a “patent” can spend 67% more than a “new customer”. Along with the obvious fact that attracting a completely new customer to the business is less profitable in terms of profit than growing an existing customer base, influencing the purchase decision of customers harder than ever.
Because today, customers have many ways to access information related to products, services and reputation of businesses. Instead of being like “donkeys”, easily being “blanked” on the pink advertising information that the Marketing team has spread, customers actively search for more objective data streams, such as reviews, networks, etc. social groups, community groups, or the Google search engine.
When potential customers understand the strengths and weaknesses behind the products and services they care about, they are the ones in control of the buying process .
When new customers decide to use your brand’s products and services, the best thing every marketer needs to do is create the best experience for the “gods”. And it is the customer-oriented marketing positioning strategy that will solve this conundrum.
What strategic move needs to be taken now to build this experience? “Know you know me, a hundred battles a hundred wins”. Mastering the habits, needs and preferences of your core customer is the key to opening the door to success. With the right marketing tools and a little patience, you can completely control how customers interact and make purchasing decisions, including: frequently used media and tools, or content. Which is the most interesting to the customer?
From there, marketers will use the data on customer behavior to build an appropriate marketing strategy. Of course, these strategies will directly bring value to the business.
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Satisfying what customers NEED
Let’s take an example from Brandfolder, a famous Marketing agency in the United States, from the very beginning of their business, they have always focused on developing the features that can bring the most effective to customers.
In order to know what is best for customers, Brandfolder maintains a convenient communication channel system between customers and the company. From there, relevant departments such as product development department, marketing team can fully be aware of customer reviews and feedback for new products.
This strategy led Brandfolder to create a new feature called Custom Sections. This option gives customers the flexibility to manage and control spending on tangible brand assets. Furthermore, customers can completely propose customizations that, according to them, are suitable for the particularities they need.
Over the next few weeks, Brandfolder started collecting feedback with customers who used the new feature. They asked survey questions like: “How many people are interested in using this new feature? With the number of dissatisfaction, what makes them wonder about the service? Should we replicate this feature to other customers?”
The response from the customer surprised Brandfolder. The problem lies in the need to improve what the customer really needs, not what we think the customer needs. A lot of customers feedback that: Improving features is good, but Brandfolder needs to improve those things that customers complain about, not some fantasy.
Lesson One: It’s important to respond to what customers need in a product or service. But you need to understand the exact behavior of customers, “scratch the itch right”, thereby proposing improvements in accordance with what customers need, not arbitrarily improving what you think is necessary.
>>> Difference between Customer Satisfaction and Customer Loyalty
Improve customer engagement and reduce Churn Rate
What is the Churn Rate ?
To implement a customer-oriented marketing positioning strategy, you need to improve customer engagement with your brand, while reducing attrition rate (or reducing the rate of them leaving your brand to come to your brand). competitors). Further down, to increase engagement and reduce churn rate, the best way to do it is to give them a good impression of your brand.
According to a survey by Cap Gemini, customers who hold a bad impression of your brand (or, in other words, those who claim to be disengaged from your product), account for 13% of the drop in sales. and the profit your company earns. A customer-oriented marketing positioning strategy will help your business improve its position and bring customers long-term value.
Returning to the Brandfolder story, the key solution here lies in two aspects. Firstly, they have informed users of the new feature for their service. This lets customers know that improvements exist, and can suggest what they want and need to change.
Second, in order to effectively implement the first aspect, the product development department decided to inform users of a roadmap (a form of notification of the progress of service updates and improvements), in which, any upgrade Any service provider, large or small, is thoroughly explained to the customer. These explanations, of course, go hand in hand with Brandfolder emphasizing the value for each service patch and update.
Roadmaps make it possible for Brandfolders to see if their customers are aware of the existence of service improvements. In fact, they also know which customers have read this information, and whether the roadmap is an effective method to solve the problem they encountered in the first lesson.
Lesson two: Close contact with support departments, monitor reviews coming from customers. If customers feel that the product is improved better than before, the product value is higher, you will significantly reduce the churn rate from customers.
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Increase the value of the brand in the eyes of customers
The core of customer care activities is a mutually beneficial relationship. For that relationship to last, you need to understand your brand and make it valuable and trustworthy to customers. According to research by Needle, 93% of brands are considered valuable in the eyes of customers, evaluating marketing assets much more important than sales related assets.
To make your brand more trustworthy, you need to do the following:
- Add case studies that demonstrate the success of the product for previous customers.
- Provide quality certifications and customer reviews that have used the product on landing pages.
- Add customer communication channels on social networks (Facebook, Twitter, …)
- Regularly donate useful documents and resources such as Ebooks, manuals, etc.
- Conduct academic events, lectures, etc.
Lesson three: Customers are an extremely valuable resource for businesses, and also the object of spreading the benefits of the product to the general public. Therefore, each business needs to raise customers’ awareness of the true value of the brand, making it valuable and reliable in the eyes of the gods.
Of course, this activity only makes sense when customers are strongly attached to your brand. Therefore, the third lesson can only be successful when you know how to correctly and flexibly apply the previous two lessons.
Hopefully, our recent sharing will help you visualize more about customer-oriented marketing positioning strategies and their importance to brands in the 4.0 technology era. For more useful information on branding and brand management , read here.
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