"Business must be customer-centered," we're told. But what do we really know about our customers? What is a customer? Merriam-Webster offers us the following:
Main Entry: cus·tom·er
Pronunciation: \?k?s-t?-m?r\
Function: noun
Etymology: Middle English custumer, from custume
Date: 15th century
1 : one that purchases a commodity or service
2 : an individual usually having some specified distinctive trait (a real tough customer)
That simple definition belies a number of questions - questions that simply can't be satisfied by understanding only "awareness," "consideration" and "preference" for your products and services.
Your job is to create customers, to drive profitable revenue growth. To do that, you need a more complete picture that includes three things:
- What your customers (or prospective customers) look like - both attitudinally and behaviorally
- What they're worth - in $, €, £, ¥, and so on
- How to reach them - in locations where they can be influenced
In our view, there is no clever shortcut, no single "power question." The three elements above are essential
if you want to confidently take charge of your business, effectively allocate your Marketing budget and build
the case for why you may (or may not) need more to influence the company's top and bottom lines. Why?
Because those elements provide a clear view of opportunities, requirements and costs. Too often, Marketers struggle
to paint a picture of potential, failing to make direct connections to either driving purchases or the actions and investments required.
Parametric has helped companies answer multifaceted customer questions, including:
- How much is a "high value" customer really worth? And what should I spend to get one? How about to keep one?
- I have a lot of data describing customer loyalty. Can I use it to figure out how to target customers with loyalty programs?
- What's the most useful way to segment customers for program and promotional targeting?
- I have a loyal base of professional users. What is the opportunity for going mass-market, and who should be my target?
- There are a small number of people who use my product in a non-standard way. Can you tell me more about them? Is there a new market that I'm missing?
Techniques for better understanding customers and potential are time-tested. We often use the following:
- Adoption research, including System Dynamics modeling
- Choice research using conjoint analysis
- Attitudinal and behavioral segmentation using factor analysis
- Financial analysis, including discounted cash flow analysis and customer equity modeling
To talk with us about how we might help you with a tough customer question, contact us.
