Give Them What They Need: Customer Value at the Core

Customers are one of the most important driving forces behind the success of any business.  They invest in goods and services which is essential for all businesses to generate revenue.  In today’s rapidly changing market consumed with emerging technologies and increased competition, customers have more access to and information about numerous choices available when deciding where to purchase their products and services.  Therefore, it is imperative that businesses stay competitive and create value by putting more emphasis on customers.  Applying a customer value-driven marketing strategy which focuses on satisfying customer needs and examines how products and services meet those needs will enable an organization to flourish in any industry.  Moreover, the business will maximize profits, outperform their competitors, and attain longstanding, long term, optimal results.  The key components to consider when utilizing a customer value-driven marketing strategy includes:

  • Identifying the customers within the target market the organization is willing to serve
  • Understanding the customer needs, wants, and demands within the target market (i.e. study their interests, characteristics, values, expectations, perceptions, experiences, and behaviors)
  • Aligning organizational functions to focus on customer needs and exploring how to satisfy those needs using tools such as a marketing mix (i.e. consider the different elements related to the product and brand as well as its quality, pricing, promotion, inventory, and availability of the product or service to customers at the right time and location)
  • Developing an integrated marketing strategy to acquire the customer’s attention (i.e. advertising, social media, sales promotions, direct marketing, public relations)

Building customer loyalty produces continual sales and benefits the business in the long run is another important component to consider regarding customer value-driven marketing strategy.  A key example that supports this principle is reflected in the success of Apple, one of the most thriving multinational technology companies in the world.  For instance, according to the 2017 Customer Loyalty Engagement Index, a study that identifies the factors that engages customers, creates customer loyalty, and drives profits, recognized Apple as the “best representative of customer loyalty and enjoyment in laptop computers, tables, smartphones, and online music.”  Moreover, 87% of Apple’s customers are brand loyal and will continue to purchase from Apple.

Businesses that take the time to get to know their customers, analyze their needs, and make decisions and meet their needs profitably will create loyal customers and ultimately, achieve successful long-term growth (customer lifetime value).  When customers are loyal to a product/brand or service, they show their support by spending their money towards it.  Furthermore, customers will share their opinions with friends and family and encourage them to invest in the product or service.  Keeping a customer loyal and increasing their value to the business drives growth and increases profits.  Moreover, it’s cost-effective because it costs businesses less to keep existing customers than acquiring new buyers.

 

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