It is all about Customers!
The focal point for business is the customer. Sure businesses must also engage with suppliers and employees, but without customers, suppliers (including shareholders, material suppliers, and others that provide goods and services to support customers) and employees are not needed. Marketing has the responsibility to engage effectively with all these audiences.
Customers are retained based on relationship and value. To manage customers effectively, businesses need to have solid Customer Relationship Management (CRM) and Customer Value Management (CVM) processes in place.
CRM is all about managing relationships from prospecting new customers, through relationship development, to purchase commitment and support. A CRM process allows all the touch points to understand the status of the customer. When all the touch points have this view of the customer, they are empowered to act on behalf of the customer and build the value of the company in the customer’s perception.
CVM is all about managing the value of the goods and services that a company brings to market in the context of the competitive environment. Relationships can carry a company a long way during tough times, but a customer will still have to be able to understand the relative value of the company compared to the competition. At the end of the day, the company with the best perceived value will survive longer than the other competitors. Customers want to take their cold, hard earned cash and spend it in a way to increase their revenues or reduce their costs thereby increasing their earnings. The CVM process helps companies understand their position in the market.
Marketing is the nexus for understanding the information in these processes, adding additional information, and bringing together the key strategies, plans, and implementation. It initiates a conversation regarding the value the company brings to the market. The team analyzes the information from CVM, CRM, Branding Research, and Advertising Research. 17sts delivers this information through Dashboards that connect marketing activity to earnings.
When marketing organizations are engaged with the business, they provide the glue for the organization. Insights from the market place including competitive position, customer perceptions, and industry trends provide business leaders with options to gain share, create new markets, and change processes so that the company can be aggressive in the market and return value to the shareholders.