I have learned more than I ever could have thought I would this year. What I have noticed is that this is the first semester in my college career where I have been able to take classes and actually relate the material that I have learned in the past into every single one of my classes. This class in particular for me has been an extremely enjoyable learning experience. Mainly this is because of the group project that we worked on. The first thing I want to focus on that I’ve learned much better now is the research subject in general. Along with research, more specifically for this class, I learned the importance of gaining customer insights to then create products or services that will be successful in the market. In the beginning of the project, my whole group was worried about how we were actually going to get research for this project and then how we would develop key findings from this material. We decided to try our hands at a small focus group, which turned out to be an amazing experience. I can now see how easy it is to make assumptions about target markets and how wrong you can be about those assumptions. In my group, we assumed that high school girls loved pink; one of the biggest findings we got from the focus group was that they were over the color pink and on to bigger and better colors such as blues, grays, and greens. They described those colors as more natural. Also, in regards to research, I learned first hand how once you gather initial research, it is extremely important to then go back and delve deeper into that target segment to learn more. This was easy for our group to see because we certainly didn’t have enough findings from the focus group to understand what it was these teenage girls wanted. What we then realized we needed to do was to create a survey and ask them to create a photo journal for us to get a better picture of their rooms. From this data, we then had a clearer picture in our heads as to what would satisfy our target segment’s wants and needs.
Prototyping is another skill that I feel I have a much better understanding of now than before this class. In fact, I have never made a prototype for another class especially not one to the extent we did for this project. Our group tried to make our “Wave” product look as realistic as possible for the class to get the best idea of what we envisioned for it. I think the most interesting speaker we had come to our class was Michael Luchs. He taught us so much in such a short amount of time about how to make a product or service into something useful and unique. It was from this lecture that our group decided on our product which then led us to creating the prototype. As mentioned before, this was my first experience with creating a prototype, and now I see the importance of creating one especially when you are trying to get other people to see the product exactly how you and your group have imagined it.
This group project for me has been a roller coaster ride of emotions! Our group has a really great dynamic and we have truly worked great together ever since the beginning. The problem came when we had to start our research, and we couldn’t ever find a time when the whole group could get together to discuss research options. This is when frustration set in and I would say even some bad feelings came out. The good news was that we finally found a good schedule to get together and work that fit with everyone’s schedule. Then from then on out, the rest of the project went beyond smooth sailing. In fact, I’ve never worked with a group that worked together as well as we did. We were all very considerate of each others opinions and everyone pulled their fair share of the work to get our presentation ready. We even had enough fun to create a humorous skit that we hope the class enjoyed! I really think this project was helpful in learning the material in this class. Personally I learn best from experience and by putting us through this whole process, we have learned every step of the way how to create a product or a service. Also, I think Professor Walls has been an incredible teacher. This class has always been interesting to go to and all the outside resources we have used, have made learning the material that much more relevant to the real world. I was interested in Malcom Galdwell that I actually went out and bought the book The Tipping Point, which hopefully I can read over Christmas. Professor Walls has always been very open to the students, which has always made me feel comfortable in class. I have also always enjoyed chatting in office hours and getting to know him a little bit better outside of just class material. Overall, this has been a great experience for me and one that I will always look back to when I think of my favorite classes at UT.
Wednesday, December 5, 2007
Wednesday, November 21, 2007
The Power of Wal-Mart
The Power of Wal-Mart (Sorry about the formatting problem. Don't know how to fix it.)
I. Introduction
A. Background and History
1. World’s largest retailer
2. Founded by Sam Walton in 1962 and incorporated in 1969
3. Statistics
4. Culture stayed the same since founding – but their size no longer fits the culture that started with Sam Walton.
5. Company Values
II. Scale of Wal-Mart
A. The Wal-Mart Effect – written by Charles Fishman
1. Always low prices
2. Same quality as more expensive retailers
B. Supplier Relationships
1. Call their suppliers “partners”
C. Bad Reputation and Criticism
1. Lawsuits regarding female discrimination and forcing employees to work off the clock
2. Bad health care plans for employees
III. Reinvention
A. Corporate Social Responsibility
1. New advertising theme “Save Money, Live Better”
a. Getting back to the roots of doing what is best for customers
b. Hired BluSkye to help measure Wal-Mart’s environmental impact of growing and producing all products
2. Going Green
a. CEO Lee Scott wants to turn Wal-Mart into the greenest company
b. Reduce energy used in stores
c. Increase efficiency of trucks
3. Using influence to push suppliers to go green too
a. Only purchasing detergent that is concentrated and in smaller bottles
b. Urging suppliers to use less waste and packing materials Eg. Getting rid of the box packaging for deodorants
IV. Conclusion
I. Introduction
A. Background and History
1. World’s largest retailer
2. Founded by Sam Walton in 1962 and incorporated in 1969
3. Statistics
4. Culture stayed the same since founding – but their size no longer fits the culture that started with Sam Walton.
5. Company Values
II. Scale of Wal-Mart
A. The Wal-Mart Effect – written by Charles Fishman
1. Always low prices
2. Same quality as more expensive retailers
B. Supplier Relationships
1. Call their suppliers “partners”
C. Bad Reputation and Criticism
1. Lawsuits regarding female discrimination and forcing employees to work off the clock
2. Bad health care plans for employees
III. Reinvention
A. Corporate Social Responsibility
1. New advertising theme “Save Money, Live Better”
a. Getting back to the roots of doing what is best for customers
b. Hired BluSkye to help measure Wal-Mart’s environmental impact of growing and producing all products
2. Going Green
a. CEO Lee Scott wants to turn Wal-Mart into the greenest company
b. Reduce energy used in stores
c. Increase efficiency of trucks
3. Using influence to push suppliers to go green too
a. Only purchasing detergent that is concentrated and in smaller bottles
b. Urging suppliers to use less waste and packing materials Eg. Getting rid of the box packaging for deodorants
IV. Conclusion
Tuesday, November 13, 2007
Whats on Your Mind?
Do you ever wonder what it is about something you’ve bought that made you want to buy it? When people are making purchase decisions, they try to think rationally about the product’s attributes to make the best decision, but how do we know that they haven’t already made up their mind about what they want? The film The Persuaders, gives light into this phenomenon of how people decide what they want or why they do what they do.
This film introduces Dr. Clotaire Rapaille who has discovered a method that can reveal people’s unconscious desires and impulses. His method has grabbed the attention of many Fortune 500 companies as they believe that this can give them a competitive advantage by figuring out how to keep their customers happy. His research started when he was working with Autistic children. He had to figure out a way to decode their behavior without the use of words since they can’t communicate verbally. In this time, he learned that messages are engrained in people’s minds from the first time they have the experience related to that certain idea or thing. This is not something they remember though; this explains why people buy certain things without knowing exactly the reason that they want it. Dr. Rapaille discovered that people create mental connections for every word that leads to his method of uncovering this unconscious code. First of all in his method, he leads focus groups that try to get past reason and emotion down to the core of the human being. To get to the actual code, Dr. Rapaille has people lay down in the dark and write out anything that cross their mind which leads them to their primal urges when considering the specific word he is trying to break down. The results from this method give off the hidden reasoning behind why people think the way they do about certain ideas or words. One example that is given in the video, is that the code for SUV’s is domination, so this led to Hummer beefing up their models and tinting the windows. I also found one comment Dr. Rapaille made to be very interesting. He said that he “didn’t believe what people [said]; [he] wanted to understand what they do.” This is a very enlightening statement because I think in reality it is very true. People say one thing, but the most important thing to consider is what they do and the reasoning behind that action. The point is that people have actually no idea of why they do what they do. What Dr. Rapaille does is trying to uncover the hidden desires of people for marketers to understand what it is that their customers ultimately want whether they know what it is they want themselves.
As a marketer, this is a huge development when trying to develop products and services to satisfy our customers. My personal opinion is that Dr. Rapaille has figured out a great way to learn what is in customers’ minds that they don’t even know is there. It’s really quite incredible because by finding out what is in the customer’s subconscious, a company can really cater to what their customers want in their product or service. The best part of this method is that the customers are happy and they still don’t know that you tapped into their unconscious to give them the best product or service for them. They go on being satisfied and rationalizing to themselves why they need to purchase what they do; it’s a win-win situation for everyone!
This film introduces Dr. Clotaire Rapaille who has discovered a method that can reveal people’s unconscious desires and impulses. His method has grabbed the attention of many Fortune 500 companies as they believe that this can give them a competitive advantage by figuring out how to keep their customers happy. His research started when he was working with Autistic children. He had to figure out a way to decode their behavior without the use of words since they can’t communicate verbally. In this time, he learned that messages are engrained in people’s minds from the first time they have the experience related to that certain idea or thing. This is not something they remember though; this explains why people buy certain things without knowing exactly the reason that they want it. Dr. Rapaille discovered that people create mental connections for every word that leads to his method of uncovering this unconscious code. First of all in his method, he leads focus groups that try to get past reason and emotion down to the core of the human being. To get to the actual code, Dr. Rapaille has people lay down in the dark and write out anything that cross their mind which leads them to their primal urges when considering the specific word he is trying to break down. The results from this method give off the hidden reasoning behind why people think the way they do about certain ideas or words. One example that is given in the video, is that the code for SUV’s is domination, so this led to Hummer beefing up their models and tinting the windows. I also found one comment Dr. Rapaille made to be very interesting. He said that he “didn’t believe what people [said]; [he] wanted to understand what they do.” This is a very enlightening statement because I think in reality it is very true. People say one thing, but the most important thing to consider is what they do and the reasoning behind that action. The point is that people have actually no idea of why they do what they do. What Dr. Rapaille does is trying to uncover the hidden desires of people for marketers to understand what it is that their customers ultimately want whether they know what it is they want themselves.
As a marketer, this is a huge development when trying to develop products and services to satisfy our customers. My personal opinion is that Dr. Rapaille has figured out a great way to learn what is in customers’ minds that they don’t even know is there. It’s really quite incredible because by finding out what is in the customer’s subconscious, a company can really cater to what their customers want in their product or service. The best part of this method is that the customers are happy and they still don’t know that you tapped into their unconscious to give them the best product or service for them. They go on being satisfied and rationalizing to themselves why they need to purchase what they do; it’s a win-win situation for everyone!
Tuesday, November 6, 2007
Skeptic Society or Gullible Society?
According to Michael Shermer, “science is a verb that means looking for natural explanations for all phenomenon.” In this respect, when people are considering two different options, they have to decide, “What is the more likely explanation?” As an example, he shows a picture of a crop circle with the word Skeptic written in it. He then asks what is more likely: that this is a natural phenomenon or a Skeptic reader created that picture with photoshop? I couldn’t help but laugh during this Podcast because Shermer really does a good job of bringing to light how gullible society can be. People believe only what they want to believe regardless of thinking about what can happen in reality. It got me thinking. Why do people believe such strange things?
We may never know the answer to that question, but what we do know is that as marketers, we can use this characteristic of humans to our advantage. If people are willing to believe in something such as the image of the Virgin Mary on a cheese sandwich, then they surely have the ability to believe in your product without having experience with it first hand. My personal opinion is that people do believe what they want to believe. For example, I am completely guilty of falling into the traps of infomercials on television. I always want the next hot new product or the next fitness product that is going to give me my “ideal body.” Even though, I know better, I still fall into these traps because I want to believe that buying these products will work for me. My parents always have to remind me that those infomercials are all about stretching the truth. The good news for the marketing industry is that there are many people in the market who are just like me: willing to be your product with full faith that it will meet their every expectation.
Shermer also talked about how people tend to only remember what goes right versus the failures when they are exploring something new. I can definitely see how this is human nature. It very much goes along with a customer and the idea of cognitive dissonance. Say you just bought a new car. Soon after your purchase you continue to take notice of other cars on the street and pay closer attention to car commercials when watching tv. This is because you are still trying to reassure yourself that you made the best decision. When people only take into account the “hits” versus the “misses,” they are in fact reassuring themselves that the product or service they bought is the best choice they could’ve made. Again as marketers, by knowing this information, we can use it to our advantage. Realizing that we just need to reassure our customers after their purchases can be used to our advantage. This can help get repeat business as well as maybe get happy customers to make referrals to other people about our products.
Overall, I found this podcast to be very insightful. It is truly amazing what our eyes can trick our minds into believing. I think it is hard for people to see something incredible and not realize that it is most likely due to chance versus scientific reason. From now on, I will be much more careful about what I choose to believe without having hard evidence to back it up with.
We may never know the answer to that question, but what we do know is that as marketers, we can use this characteristic of humans to our advantage. If people are willing to believe in something such as the image of the Virgin Mary on a cheese sandwich, then they surely have the ability to believe in your product without having experience with it first hand. My personal opinion is that people do believe what they want to believe. For example, I am completely guilty of falling into the traps of infomercials on television. I always want the next hot new product or the next fitness product that is going to give me my “ideal body.” Even though, I know better, I still fall into these traps because I want to believe that buying these products will work for me. My parents always have to remind me that those infomercials are all about stretching the truth. The good news for the marketing industry is that there are many people in the market who are just like me: willing to be your product with full faith that it will meet their every expectation.
Shermer also talked about how people tend to only remember what goes right versus the failures when they are exploring something new. I can definitely see how this is human nature. It very much goes along with a customer and the idea of cognitive dissonance. Say you just bought a new car. Soon after your purchase you continue to take notice of other cars on the street and pay closer attention to car commercials when watching tv. This is because you are still trying to reassure yourself that you made the best decision. When people only take into account the “hits” versus the “misses,” they are in fact reassuring themselves that the product or service they bought is the best choice they could’ve made. Again as marketers, by knowing this information, we can use it to our advantage. Realizing that we just need to reassure our customers after their purchases can be used to our advantage. This can help get repeat business as well as maybe get happy customers to make referrals to other people about our products.
Overall, I found this podcast to be very insightful. It is truly amazing what our eyes can trick our minds into believing. I think it is hard for people to see something incredible and not realize that it is most likely due to chance versus scientific reason. From now on, I will be much more careful about what I choose to believe without having hard evidence to back it up with.
Thursday, October 25, 2007
Do Loyalty Programs Really Work?
Do loyalty programs really create loyal customers? If the incentives disappeared, would the customers keep coming back? These are questions being asked by many people regarding the actual effectiveness of loyalty programs. For example, one of the brands that I am most loyal to is Honda, which has never offered a loyalty program to entice me to buy from them. Instead, I remain loyal to Honda for free because of the quality and service I receive from my Honda car and the Honda dealerships I’ve been to. On Monday, Byron Smith from Microsoft gave a very interesting speech on how Microsoft is trying to use loyalty programs to create incentives for Internet users to switch from their current search engine over to Microsoft Live. In this presentation, he gave examples of how Microsoft will be working to attract more users to its website by giving them X-Box Points that can then be redeemed on other merchandise. American Airlines came to my mind at this time because I could see a parallel between what Microsoft wants to do and what American Airlines started doing over 25 years ago with their frequent flier loyalty program called AAdvantage.
American Airlines has found its loyalty program to be extremely profitable for them. The reason for its profitability is that American sells its frequent flier miles to retailers that then use those miles as rewards for its customers. Since the incremental cost for passengers on airplanes is so low (about $20), American is receiving customer loyalty with very little incremental cost. Also, airlines don’t have to allow customers to redeem miles if there are no available tickets and if there are available seats, it is better for them to give a ticket away than to let the plane leave with many empty seats. So for the airline industry, loyalty programs such as the frequent flyer programs are a great strategic fit for making profit. The question then lies in whether this is actually creating loyalty to the airline or is it just a way for customers to find a great deal on a flight?
For Microsoft, I understand the need for them to create loyalty to Microsoft Live. Right now, Google is the hands-down leader in the Internet search engine profit war because it had the best search engine when it came out. Now, Microsoft has improved its own search engine and is betting that people will love it if they give it a try. They have done research that shows that people will definitely switch to Microsoft if they are rewarded for it, which means that they are not extremely loyal to their current search engine. Byron also mentioned though, that if the products are not equivalent, then the rewards will not have the effect it should. Also, he wonders, just like other people in the marketing world, will this loyalty program create true loyalty to Microsoft’s brand? Or will this just be a temporary fix for the deeper problem of having an inferior product? There is no question that loyalty programs can help switch some users from one brand to another. The ultimate question is how can we get those users to be completely loyal to our brand even if we weren’t paying them.
American Airlines has found its loyalty program to be extremely profitable for them. The reason for its profitability is that American sells its frequent flier miles to retailers that then use those miles as rewards for its customers. Since the incremental cost for passengers on airplanes is so low (about $20), American is receiving customer loyalty with very little incremental cost. Also, airlines don’t have to allow customers to redeem miles if there are no available tickets and if there are available seats, it is better for them to give a ticket away than to let the plane leave with many empty seats. So for the airline industry, loyalty programs such as the frequent flyer programs are a great strategic fit for making profit. The question then lies in whether this is actually creating loyalty to the airline or is it just a way for customers to find a great deal on a flight?
For Microsoft, I understand the need for them to create loyalty to Microsoft Live. Right now, Google is the hands-down leader in the Internet search engine profit war because it had the best search engine when it came out. Now, Microsoft has improved its own search engine and is betting that people will love it if they give it a try. They have done research that shows that people will definitely switch to Microsoft if they are rewarded for it, which means that they are not extremely loyal to their current search engine. Byron also mentioned though, that if the products are not equivalent, then the rewards will not have the effect it should. Also, he wonders, just like other people in the marketing world, will this loyalty program create true loyalty to Microsoft’s brand? Or will this just be a temporary fix for the deeper problem of having an inferior product? There is no question that loyalty programs can help switch some users from one brand to another. The ultimate question is how can we get those users to be completely loyal to our brand even if we weren’t paying them.
Friday, October 19, 2007
Wal-Mart Strives to Improve Lives
Wal-Mart has finally figured it out. Even though it follows a low-cost strategy, it shouldn’t be all about saving money. They have realized that their strategy also needs to be about improving the lives of their customers. With this realization, they have launched a new marketing campaign that is intended to make customers feel better about shopping at Wal-Mart. This new campaign called “Save Money, Live Better,” focuses on customer experiences rather than the older campaign that only concentrated on having the lowest prices. Wal-Mart came in to the market and completely dominated the low-price retail stores. Now, they are hoping to keep low prices while providing more variety and better experiences for their customers. In this article, I will be discussing what Wal-Mart is doing differently now to keep its customers satisfied.
In 2006, Wal-Mart made a mistake when it decided to try and go upscale without first considering its customers. Their main competitor Target had huge success with differentiating itself from the discount retailer by providing much more high fashion products that were still very reasonably priced. When Wal-Mart decided to try this strategy, it failed. They didn’t realize who their core customers were or what they really wanted. Wal-Mart customers are there to get a great deal. In an article from the International Herald Tribune titled “Wal-Mart’s New Strategy Goes Back to Basics: Saving Money,” the author expresses that Wal-Mart’s diverse customers all want the same thing: low prices, just like they always have. As a marketing major, I know the whole idea behind marketing is to discover and satisfy consumer’s needs. Wal-Mart’s failed strategy is a clear example of why finding out what your customers want is essential before ever changing your core strategies.
Once Wal-Mart executives saw that they had chosen the wrong strategy, they realized that they needed to get back to its core values. Wal-Mart needs to be about saving money for the customers to make their lives better. They have scaled back the higher priced and fashionable items and gotten back down to what is really important to the Wal-Mart customer: low prices on great brands and products. Personally, I agree with this newer strategy and it makes me feel better about shopping at Wal-Mart. The new commercials they have been running convey the feeling that Wal-Mart cares about its customers rather than just advertising their everyday low prices. The commercials show normal families in their everyday lives and tells a story about how Wal-Mart helps to make their life better. According to the SEM’s we discussed in class, this new strategy really conveys good feelings that make you think that Wal-Mart cares for its customers.
I have decided to take a closer look at Wal-Mart as my individual report because it is the most powerful company in the world today. It has a huge impact on our society and I am also interested in learning more about their newest goal to become more environmentally friendly. Wal-Mart is hoping to turn around the bad reputation is has and wants to become a company that is seen in a good light that truly cares about its customers. I think they are on the right track. My paper will go beyond the price cutting strategies of Wal-Mart into how it can use its power to better the world.
Source:
http://www.iht.com/articles/2007/03/01/business/walmart.php
In 2006, Wal-Mart made a mistake when it decided to try and go upscale without first considering its customers. Their main competitor Target had huge success with differentiating itself from the discount retailer by providing much more high fashion products that were still very reasonably priced. When Wal-Mart decided to try this strategy, it failed. They didn’t realize who their core customers were or what they really wanted. Wal-Mart customers are there to get a great deal. In an article from the International Herald Tribune titled “Wal-Mart’s New Strategy Goes Back to Basics: Saving Money,” the author expresses that Wal-Mart’s diverse customers all want the same thing: low prices, just like they always have. As a marketing major, I know the whole idea behind marketing is to discover and satisfy consumer’s needs. Wal-Mart’s failed strategy is a clear example of why finding out what your customers want is essential before ever changing your core strategies.
Once Wal-Mart executives saw that they had chosen the wrong strategy, they realized that they needed to get back to its core values. Wal-Mart needs to be about saving money for the customers to make their lives better. They have scaled back the higher priced and fashionable items and gotten back down to what is really important to the Wal-Mart customer: low prices on great brands and products. Personally, I agree with this newer strategy and it makes me feel better about shopping at Wal-Mart. The new commercials they have been running convey the feeling that Wal-Mart cares about its customers rather than just advertising their everyday low prices. The commercials show normal families in their everyday lives and tells a story about how Wal-Mart helps to make their life better. According to the SEM’s we discussed in class, this new strategy really conveys good feelings that make you think that Wal-Mart cares for its customers.
I have decided to take a closer look at Wal-Mart as my individual report because it is the most powerful company in the world today. It has a huge impact on our society and I am also interested in learning more about their newest goal to become more environmentally friendly. Wal-Mart is hoping to turn around the bad reputation is has and wants to become a company that is seen in a good light that truly cares about its customers. I think they are on the right track. My paper will go beyond the price cutting strategies of Wal-Mart into how it can use its power to better the world.
Source:
http://www.iht.com/articles/2007/03/01/business/walmart.php
Wednesday, October 3, 2007
How to Gain Competitive Advantage
Competitive Advantage is a relative term. We hear it a lot about this term, but do companies really know what it means? Do they know how to achieve it? My topic for this individual assignment is about gaining competitive advantage in the retail world. I will discuss how marketing, and more specifically, how using customer insights customer experiences can help your company gain and sustain competitive advantage. I researched this topic and found an interesting article titled, “CRM In Retail Revisited: Using Customer Insight to Build Competitive Advantage.”
The article has many great insights into how companies can gain competitive advantage through expanding their customer insights and enriching the customer experience in the retail store. The author Lane Michel argues that relationships with your customers should be composed of learning what customers need, and it is important to also be proactive in this relationship to create strong loyalty to your company brand. Retailers develop relationships with their customers and then collect data from them. Michel states that “success comes when retailers are able to maximize the value of that customer information to create a meaningful ‘in-store’ experience for their best customers.” As a whole, this article is very insightful for the world of Customer Relationship Management; it gives many great examples of companies who understand how to leverage customer insights to gain sustainable competitive advantage.
In our class we have been learning about the topic of customer insights. I think this article does a great job of summing up the importance of this topic, and I am interested in learning more about how a company can apply this to their marketing strategies to gain an edge against their competition. As I read this article, the first company that came to my mind that exudes this subject is Nordstrom’s. People don’t shop at Nordstrom’s because it has the best clothes, shoes, accessories, etc. People shop at Nordstrom’s because of the experience they have when they walk through the door: the piano man playing, the clean and organized sections of the store, and the fabulous customer service they receive. People are willing to pay more if they feel good when they are done with their shopping experience. I know you’ve all been to a store and left extremely frustrated because the racks were a mess, the store was crowded, and the service was awful! A company like Nordstrom’s know how to please their customers which keeps them coming back and creates very strong loyalty to their brand.
For my report, I will be expanding on this topic of how companies create competitive advantage through building better relationships with their customers. Traditional marketing is no longer enough to be successful in the retail world. Companies have to learn about their customers to keep them happy and use this relationship to lock-in their customers and keep them from switching over to another retailer.
Source:
Michel, Lane. “CRM In Retail Revisited: Using Customer Insight to Build Competitive Advantage.” http://www.microsoft.com/dynamics/rms/product/customerinsightwhitepaper.mspx
The article has many great insights into how companies can gain competitive advantage through expanding their customer insights and enriching the customer experience in the retail store. The author Lane Michel argues that relationships with your customers should be composed of learning what customers need, and it is important to also be proactive in this relationship to create strong loyalty to your company brand. Retailers develop relationships with their customers and then collect data from them. Michel states that “success comes when retailers are able to maximize the value of that customer information to create a meaningful ‘in-store’ experience for their best customers.” As a whole, this article is very insightful for the world of Customer Relationship Management; it gives many great examples of companies who understand how to leverage customer insights to gain sustainable competitive advantage.
In our class we have been learning about the topic of customer insights. I think this article does a great job of summing up the importance of this topic, and I am interested in learning more about how a company can apply this to their marketing strategies to gain an edge against their competition. As I read this article, the first company that came to my mind that exudes this subject is Nordstrom’s. People don’t shop at Nordstrom’s because it has the best clothes, shoes, accessories, etc. People shop at Nordstrom’s because of the experience they have when they walk through the door: the piano man playing, the clean and organized sections of the store, and the fabulous customer service they receive. People are willing to pay more if they feel good when they are done with their shopping experience. I know you’ve all been to a store and left extremely frustrated because the racks were a mess, the store was crowded, and the service was awful! A company like Nordstrom’s know how to please their customers which keeps them coming back and creates very strong loyalty to their brand.
For my report, I will be expanding on this topic of how companies create competitive advantage through building better relationships with their customers. Traditional marketing is no longer enough to be successful in the retail world. Companies have to learn about their customers to keep them happy and use this relationship to lock-in their customers and keep them from switching over to another retailer.
Source:
Michel, Lane. “CRM In Retail Revisited: Using Customer Insight to Build Competitive Advantage.” http://www.microsoft.com/dynamics/rms/product/customerinsightwhitepaper.mspx
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