Can we all agree that there is something to what we call the
customer “relationship”, something that has a lot to do with revenue and
profitability? Let me see a show of hands.
By “relationship”, I think we mean a connection between the
marketer and the customer. Not the
gooey-kind of relationship stuff, but a connection that is defined by, and
measured by the creation of a pattern of preferential repurchase.
So if we want to improve the relationship, vis a vis its
measurement, we would naturally do everything we could to increase the
preference that drives the repurchase, both by offering more value and removing
obstacles. Thus, I will posit,
communication, you know like an exchange of ideas, could be a very powerful
tool. Say, Mr. Customer, how do
you define value and do you see or experience any roadblocks to the value? Sort of like a conversation. Still with
me?
Here’s how I, as a customer of many companies, generally
experience the conversation:
I am bombarded by high-decibel, irrelevant marketing
messages at every turn. My guess
is that maybe 1% of it is interesting. Maybe 1% of those are relevant and compelling. I have three choices:
I can buy
I can do nothing (sort of like being numb)
I can opt-out.
Marketing is stuck in broadcast mode. Listening to the individual customer
does not seem to be a priority. This is unfortunate, and a general waste of time, because I, as a
customer, would be happy to share my preferences with selected marketers. Which is probably pretty reliable
information and would save a lot of time and effort on everyone’s part. Here’s
what I’d like to tell them:
Who I am. Remember – I am volunteering this information, so I am opting in (which
is infinitely more effective for any marketer). I am convinced that this is the place for me, so I’m not
afraid to tell you things that will help you to serve me better, within reason
and as they apply to your product or service. I’ll tell you demographics and
psychographics if I am convinced of the relevance, so why guess? BTW - I am categorically not opting-in
to receive miscellaneous offers and promotions from your marketing partners and
affiliates. That would facture our
bond of trust and once that goes, I’m gone like a cool breeze.
Exactly where I see the most value in your product or
service. The greater the value, the greater the satisfaction, which is a
key driver of preferential repurchase. Here’s a good example, – barnesandnoble.com. If I opt-in, they ask me my authors I like best, and will be
happy to notify me when the next Michael Chabon (my selection) comes out. That sounds like a good deal to me.
Aside: I was
once going over a data dictionary with a client and I said, wow, you’ve got a
field called “future purchase plans”. That’s really terrific. How
do you know? Where does this information
come from?
My client told me that they, too, thought it was a terrific
idea but couldn’t develop reliable information so they populate it with the
customer’s last purchase. No new
information is no improvement.
How I’d like to hear about that value - my media and
frequency preferences. While the
specter of putting the customer in charge of media selection and deployment
strikes fear, look at it this way – if a person is averse to a specific medium,
you can sing all day everyday and they’ll never tap a foot. And if you continue the tune, presto,
you get something like the National Do Not Sing Registry.
Conversing with your customer creates such a more efficient
system, delivering messages that arrive with the expectation of value while
eliminating mountains of waste for both the marketer and the customer. Sounds like profitability to me. Think about it, please.