The strategic pathway Strategic thinking and thinking strategically

The strategic pathway Strategic thinking and thinking strategically Market sensing and learning strategy Strategic market choices and targets Customer value Strategic strategy relationships and positioning networks Strategic transformation and strategy implementation

THE CUSTOMER IS ALWAYS RIGHTHANDED: CUSTOMER SATISFACTION, CUSTOMER SOPHISTICATION AND MARKET GRANULARITY

THE CUSTOMER COMES IN ALL SHAPES AND SIZES

Agenda The customer conundrum (puzzle) The sophisticated customer Market shifts and quakes consumer market changes market granularity re-shaped business-to-business markets How can marketing processes respond to these changes?

The customer conundrum Customer service is bad all over Customer satisfaction and customer loyalty satisfaction and loyalty are not the same The real customer problem do we know what service to maximise? can we deliver what we promised? happy customers and happy employees? The problem is strategy

4 BOXES We do it all for you - the customer

Customer satisfaction versus customer loyalty Customer loyalty High Low Happy Satisfied stayers wanderers Customer satisfaction Hostages Low Dealers

Customer expectations and outcomes The service and quality we promise High Good The service and quality the customer receives Bad Low I am in LOVE – I OK. You get what didn’t know you pay for. you were this good! OK. I HATE you It’s bad, bastards – but it’s what you lied to me! I expected.

Service and quality versus customer satisfaction Impact of service and quality on customer satisfaction/retention High Service and quality level Low Smart Overservicers Under. Nonservicers

Customer satisfaction and the internal market External customer satisfaction High Internal customer satisfaction Low Synergy “happy” customers and “happy” employees Low Internal euphoria “Never mind the customer, what about the squash ladder? ” Coercion Alienation “you WILL be committed to customers, or else… “unhappy” customers and “unhappy” employees

The sophisticated customer Issue Customers and markets have changed: Customers wised up to marketing Know what marketers are up to Traditional marketing consistently underestimates intelligence of customer

DO YOU AGREE? Your parents Unwised to marketing No idea what marketers were up to Their intelligence underestimated by marketers who now recognise it

Market shifts and quakes – Consumer markets The typical family The My. Space Generation – – women are a new phenomenon The wealthy that’s me! The pink market ok, but they eat, drink, clothe themselves etc Saga Louts – a new phenom? - too The poor – too – a novelty!

Market shifts and quakes – Consumer markets Ethnic markets – The green and ethical consumer – 21 st C. ? vegetarians? Ethical? The Neo-Cromwellians – Puritans existed pre Cromwell Scared consumers – ho yus!

Market shifts and quakes – Market granularity Shift in focus from “megatrends” to “microtrends” Broad market trends average out important differences The issue shifts from huge cultural shifts to new “identity groups”

Market shifts and quakes – Reshaped business-to-business markets Dominant customers Impact of customer power Bad customers who play the rules who break the rules who make the rules

How can marketing processes respond? Radical and disruptive changes in market structures have left traditional marketing behind The urgent challenge is to update how we “do” marketing to reflect how customers and markets have changed ? ?