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CUSTOMER ACQUISTION Customer acquisition is a process of identifying. but have a positive impact on the overall brand of the business. approaching and developing new customer relationships. It is inevitable that this strategy will acquire customers but not necessarily the customers who will best suit the business needs. Companies with successful acquisition strategies recognise that consumers. Cultural beliefs and values of the company need to be highlighted in any acquisition campaign a business implements in order to not only acquire but retain high value and profitable customers. . Some companies will take the decision of land-grab customers in order to secure new business. heightening it‘s brand awareness to the customers. this fully integrated method means businesses increase availability to their potential customer base. instantly creates a positive impact on potential customers. but the profitability and value that the customer will bring. communication channels evolve throughout the customer lifecycle. enables you to target customers which will be profitable and add value to the organisation. The importance of acquisition not only lies in the volume of customers acquired. in order to ensure a sustainable future. Adopting a strategic approach is advised when it comes to acquiring customers. Determining what type of customer best suits the business needs. It is important that new relationships formed are acquired from the right type of customer. Another important factor of customer acquisition is ensuring that a company‘s brand immersion methodology is aligned with their customer acquisition strategies. A successful customer acquisition strategy is that of which adopts a fully integrated multi channel approach. This will not only create a positive experience for the customer. Also. Acquiring customers is one of the most important factors in the success of a business. Giving customers the choice to utilise their preferred channel. This enables the company to prepare to adapt to such changes in a responsive manor.
US and Japan). Vodafone is achieving these objectives by continually updating the range of phones and services offered to keep ahead of its competitors. particularly with young people. they make new demands and seek added value through product improvements. WAP) continue to develop the Vodafone brand. Manchester United has a massive supporter base. To keep its leading edge. In order to retain market leadership. Soon. Vodafone is continually looking to add value to the services it provides and to the packages it offers to customers. Company vision Vodafone To become a global mobile leader in terms of profit. within the UK.1. Manchester United to remain the most pioneering. These supporters represent potential customers for . the dual branding process that Vodafone is currently progressing means that sponsoring such a renowned sporting team. there will be few new customers available.However. Vodafone also communicates regularly with its customers to keep them well informed of the benefits of all Vodafone products. Consumers are becoming more demanding and suppliers have to listen. including areas such as the Far East. Through this. Vodafone‘s strategy is product-led. Sponsorship deal with Manchester United In February 2000 Manchester United and Vodafone UK announced a commercial alliance. customers and value. best supported and most successful football club in the world. the company is continually developing new products and services which utilise the latest technological advances. In the UK. It was a logical step for Vodafone to seek ties with Manchester United. So the challenge is to provide added value services and competitive charges to existing customers who are becoming more sophisticated and demanding. making mobile networks the ―nervous system‖ of the networked economy spanning three major developed markets (Europe. Vodafone became the principal sponsor as well as the telecommunications and equipment service partner of the club. Case study : Vodafone UK Introduction This case study examines how two businesses that have global appeal are co-operating to achieve their shared visions for their companies and brands. as consumers become increasingly sophisticated users of modern mobile technology. The four-year agreement started on 1st June 2000. the mobile phone market has approached maturity in a very short space of time. Due to Manchester United‘s global appeal. These are to: • • • • obtain new customers keep the customers it already has introduce new technologies and services (eg text messaging. Vodafone has established a set of marketing objectives. Vodafone’s marketing strategy Vodafone‘s marketing aim in the UK is to retain market leadership. Both brands have a global appeal. exposes the Vodafone name in countries where it may not have been previously known. Vodafone must feed this back into its product strategy.
• Extending the range of products and services Through the link with Manchester United. fun and emotion to the Vodafone brand. Vodafone has become Manchester United‘s communication and technology partner. the deal fits with Vodafone‘s marketing objectives of obtaining new customers. Vodafone is offering a range of Manchester United phone covers and cases with different designs. enhancing the brand and introducing new technologies to an informed and enthusiastic target audience. through Vodafone‘s value-added services. also adds excitement. In addition. the rights to use the Manchester United logo in promotions. Vodafone has the opportunity to increase sales of phones and accessories. advertising and perimeter signage at all Manchester United home games (ex-cluding European Champions League). With a variety of ‗Reds‘ phones and accessories. especially Manchester United. Vodafone is able to develop new value added services specifically for Manchester United fans. • Adding value to services The Official Mobile Communications Service for Manchester United fans is manUmobile. Thanks to manUmobile. Also. because Manchester United has a global fan base. having its name on the shirts of the world‘s best known and most highly visible football club is a clear benefit.Vodafone. however. Offering Manchester United branded phones and accessories enables Vodafone to win more customers and increase brand awareness across the globe wherever there is a Manchester United fan. Marketing benefits The marketing benefits for Vodafone from the alliance cover three main areas. passion. keeping its present ones and continuing to develop the brand. through their mobile phone. Vodafone‘s alliance with the club is enabling Vodafone to develop its own global presence. From Vodafone‘s point of view. The partnership has done much more than that. Conclusion Manchester United and Vodafone each stand to benefit enormously from their sponsorship and commercial alliance. . to the latest news from the club 24 hours a day. fans have direct access. Added value services such as manUmobile enable Vodafone to meet its marketing objectives of gaining and retaining its customer base. Equally important. enabling the fans of the club to get news and information on the Reds wherever they are. It is typical of the added value services that Vodafone is creating. The association with a football team. • Enhancing brand awareness and image The agreement includes the incorporation of Vodafone‘s brand logo on the playing kit. Clearly.
. According to a recent study by DDB Worldwide and Opinionway Research (as reported by Ad Age ). The implied meaning is that Facebook. Typical advertisement media—radio. Social media now allows near-real-time two-way engagement that has the ability to turn lukewarm consumers into brand advocates. There‘s no questioning the power of Facebook. At first glance. With Facebook‘s massive audience— currently 750 million active users—brands are practically foaming at the mouth to use the tool to bring new customers aboard. but to reconnect with existing ones and foster relationships (or reignite old ones). Facebook is a place where users connect with those they already know. TV. it‘s not the brand that defines the platform. is much less of a customer acquisition tool than most brands have thought. this may be surprising to many brands. billboards—were always one-way. as opposed to a tool like Twitter or a service like Groupon where users are more likely to connect with new people or try new brands.2. print. Even Facebook‘s worse-than-clunky search functionality makes it apparent that the platform is not the place to find new friends. quite new in the grand scheme of marketing. as a tool to engage with fans on a deeper level and with more regularity than anything before it. New social media tools such as Facebook have allowed those brands we hold dearest to be treated as family . Case study : Facebook Does not have strong customer acquisition strategies. while an incredibly effective customer retention and engagement tool. it‘s the users. 84% of a typical brand’s Facebook fans are existing customers. However.
this . By grouping customers based on likelihood to make a purchase. while having engaged employees and engaged customers returns a revenue gain of 3. Get the basics right and track them continuously Start by measuring the basics of retention behaviour on a regular basis to answer three questions: how often do customers make a purchase. Successful customer retention starts with the first contact an organisation has with a customer and continues throughout the entire lifetime of a relationship. it‘s about exceeding their expectations so that they become loyal advocates for your brand.7 times more revenue than normal customers.CUSTOMER RETENTION Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections. but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace. A company‘s ability to attract and retain new customers. The key differentiator in a competitive environment is more often than not the delivery of a consistently high standard of customer service. and retailer identifies their valuable customers and targets marketing actions designed to increase profitability. is not only related to its product or services. Frequency and Monetary (RFM) metrics in concert with more sophisticated behavioural markers (such as an abandoned online shopping cart analysis). what types of purchases are those customers making and what is the value of those purchases? By synthesizing basic Recency. Customer retention is more than giving the customer what they expect. Research by John Fleming and Jim Asplund indicates that engaged customers generate 1. By focusing relevant marketing efforts to the most likely to respond customers. Creating customer loyalty puts ‗customer value rather than maximizing profits and shareholder value at the center of business strategy‘. Customer retention has a direct impact on profitability. Strategies 1. this retailer can focus scarce marketing resources where they will make the most impact.4 times the norm.
Facebook traffic. they found that certain product categories and mixes of categories within market baskets were highly linked to a ‗second year‘. Because of this critical insight. Twitter followership. One retailer is using their web site click stream data. For instance. turned this trend upside down and attrition became an issue across the entire customer base. Inject Voice Of Customers (VOC) into the mix Establish a systematic method for getting the Voice of Customer captured. track and ultimately influence ‗first year‘ customer behaviour to increase the likelihood of long term retention. enabled by predictive analytics. They measure the efficacy of their programs by evaluating engagement factors to understand where their best customers prefer to interact with the brand and giving them rewards for doing so more frequently and with a higher level of intensity than the average. 4. Exploratory analysis found that markers beyond simple visit frequency. long term retention. 3. This strategy. they were searching for behaviour markers that would enable them to monitor. Conversely. the client developed a set of predictive models that were applied to ‗first year‘ customers. those customers with higher quality and levels of interaction were not offered marketing treatments or discounts. Track retention across retail channels Enable tracking of engagement and retention markers across retail channels to minimize retention gaps created when customers migrate from one channel to another. Armed with these and other key findings. Many leading class retailers are actually focused on both customer engagement and retention across channels. 2. spend per visit and recency of visit. Not satisfied with merely examining the statistics. An upscale retail client had historically recorded retention metrics that varied significantly across the customer base. analysed and leveraged for identifying retention improvement opportunities. What they found was that the . they found that higher annual spend customers returned year to year at a much higher rate than lower spend customers. allowed the retailer to focus scarce marketing resources where they would count most. These types of markers are generally a predictor of future purchase behaviour. Not surprisingly. and other non-purchase engagement factors to identify these customers at different points in the purchase lifecycle The engagement score that is developed from this data is then leveraged to award that customer for their loyalty to the brand by giving them targeted incentives to make purchases. The recent economic turmoil. one retailer learned that new customers who remained active beyond their first year as a customer were five times more likely than others to remain customers for multiple years into the future. In short. this retailer set off on a journey to identify the ‗first year‘ behaviour patterns of customers whom they had previously retained longer than one year. Develop usable analytics Develop customer engagement analytics and research to gain a more in depth understanding of key drivers of retention behaviour. and thus. inviting them to unique events and making special service channels available when needed. the retailer recently conducted primary customer research and spoke with sales associates to get a better handle on why attrition had become so widespread across the customer base. Customers found to be lagging in their interactions were treated with marketing strategies designed to stimulate retention-driving behaviours. Through intensive customer data analysis. were prevalent in the data. These models assessed the customers‘ behaviour patterns and demographics to determine both their level and quality of interaction with the retailer.retailer has also seen a positive trend in their retention because customers value the less frequent but more relevant messages. however.
however. pricing. Retention measurement is a fundamental building block for success in today‘s retail environment. Netflix met that challenge by delivering videos in mailing envelopes that also served as prepaid return mailers.9 million in October 2010. then does all it can to keep them on board. Engaging valuable customers in today‘s environment is an achievable objective. Today. Here are some customer-retention strategies used by Netflix that may have applications in your business: Build trust from the first day. taking lessons from the aforementioned leading practices enables a more thorough. service model) adjustments. attitudes. Netflix does not scare potential customers away by asking them for credit card information when they begin their trial membership.e. This may seem like a complex endeavour. This manifests itself in rapid changes in behaviour. but it also has to be supplemented with customer behaviour root cause analysis leveraging Voice of Customer research and predictive analytics. . Case study: NETFLIX situation Netflix faced a difficult marketing challenge when it started operations in 1997. and sentiments quickly. Management actions may take the form of assortment.commission based sales associates were fighting over the best customers and ignoring the customers with unknown value. The insight that the sales and service model was actually causing customers to defect at both ends of the spend spectrum led to changes intended to create a more team based selling approach targeted at known high value customers and incentives for engaging customers that are new and/or of unknown value. Netflix is striving to convince customers to pay a monthly fee for streaming Internet video. Take action we‘ve learned only one thing that is: consumers change preferences. that baseline understanding must then be used to hypothesize and test the right actions to improve retention. or customer experience (i. While the state of the consumer and economy is still very fragile. All Netflix wants is an email address. don‘t employ well designed tests to truly understand the efficacy of the actions they take. however. those that do it well are already thinking creatively about the problem and using a variety of resources to make a positive impact on customer retention. This skewed service model was essentially driving customers to competitors‘ stores that offered more egalitarian service. And it‘s working. It had to convince customers to rent videos through the mail instead of in video stores. marketing communication. Many retailers. Netflix attracts new customers by giving them one-month trial memberships. the preferred course of action is to get started with information that is easily accessible. understanding of retention drivers.. and on-going. PC Magazine reports that in January 2011 Netflix had signed up more than 20 million members — up from 16. Adapting to the pace of those changes will make a difference in retaining the existing level of trips and basket size. However. only adding data and resources when the organization‘s capabilities are mature enough to use them and the business case is warranted.
Based on what they say. If a Netflix customer signs up for a trial membership and does not start using it. New Netflix members fill out a short questionnaire about their film preferences. trial members are watching their first streamed video. Within minutes. . customers are greeted by personalized viewing recommendations every time they sign in. Netflix sends a gentle reminder email within a few days. Generate customized follow-up communications. Deliver a glitch-free experience. Use your database to trigger communications that turn fence-sitters into committed customers. Personalize the customer experience. Positive interactive experiences often build strong customer advocates. It‘s important to work out the kinks before you launch a new product to the public.
Each one of those five Ps represents an area of opportunity for the company to improve. Companies often spend a lot of money in areas that don‘t pay back. The companies that perform best have engrained that sense of ownership in everyone across the organization. There are various ways through which it can be achieved by the company: Focus – The companies that really stand out have a very clear understanding of who in their organization owns the customer experience.CUSTOMER DELGHIT Customer delight is the very favorable experience of the client of a business when they have received a good or service that significantly surpasses what they had initially anticipated. What is really important to intentions and future behavior is not satisfaction itself but the emotional response to the experience. product quality. which results from surprising and positive levels of performance. price. Although meeting expectations can satisfy. presentation. . A marketing department can use instances of customer delight to a company's advantage by requesting referrals and obtaining testimonials from delighted customers that can help attract new customers. the drivers of customer satisfaction should be looked into like that of people. and the process that a customer goes through. it is the emotional response to a surprise—whether delight or outrage—that has a real impact on customer loyalty. Customer delight is conceptualized as an emotional response. Quantify – What is most important for a company is their customers but it varies according to the company and brand. Cross-sectional consumer behavior research found that the cluster of consumers reporting the highest levels of surprise and joy were more satisfied than others.the importance of delighing your customers in the current economic environment is crucial as it would result into an increase in financial performance for companies that come with improving their customer satisfaction. Thus it is crucial to know what are the important factors so that the company can focus and improve on things that are going to have the most value to your customers–and the greatest payback for your company.
In a digitally enabled business environment. Also the customers should feel the changes and improvements made by the company. provides a competitive advantage and results in increased sales and profit for the company. Thus a company has to deliver on the customers expectations and exceed it. but not the destination. It would be easy to see why this customer is now a raving fan and well beyond any level of mere satisfaction. Customer delight links an emotional experience with the customer to create an emotionally positive and memorable experience. The customer was overwhelmed by the experience and the personal touch. it has become relatively easier for brand to plan and implement strategies to provide customer delight. Monitor and make course corrections – Getting good at delighting your customers is not an event. but all have a significant impact on the attitudes and behaviors of customers. Proactive marketing: Identifying customer needs well ahead so as to supply them with information/service and to help them in deciding on a purchase . The key for businesses is determine the right customer experience for the right return. The destination through an excellent customer experience is commitment–that part of a customer‘s behavior that creates power for a brand. Thus delighting customers is a win for the customers. the contentment one feels when one has fulfilled a desire. Creating a customer for life requires companies to take their customers to the next level. or expectation. to take great pleasure or joy.Some of the ways of ensuring customer delight through a customer base which is captured digitally are: Loyalty programmes: Providing incentives for customers to stay with your brand Collaborative marketing: Leveraging the power of your database to get other relevant brands to provide incentives to your database. It is important to have a continuous customer feedback loop. Single service window: the ability to recognize a customer as a single entity across the many products/.services that your organization may have marketed to him. creating a robust database of customers is the first step in making the task of providing continued customer delight easier and efficient for the organization. For example: A customer forgot a presentation at the hotel. Thus customer delight is the path. The primary input to commitment is the experience of delight that customers have. Delighted customers will be more loyal and a business can create create customers for life. Though it requires an initial investment in time. An employee then flew to Hawaii to hand deliverer it the customer. Prioritize actions based on benchmarks – Who/what are the target customers? Why are they defecting? Why are they shopping for an alternative solution? Knowing this information will help you understand and forecast the customers‘ expectations and needs. Loyalty is having the feelings of allegiance.Customer Deight occures when companies need to go beyond simple satisfaction to retain customers and attract new ones who are the raving fans. satisfaction is based on fulfilling the expected while delight occurs from the unexpected. . Delight is. These three simple words have a slightly different meaning. resources and technology. There is a significant difference between satisfied and delighted customers. 24x7 support: initiatives like call centers and help desks are rendered more effective by use of a customer information Customer satisfaction is defined as. Cross-selling: Identifying the most relevant products from your portfolio that your customer will benefit from and offer it to them… perhaps at an incentive for being a member of the brand. need.
at the call centre alerts on credit card usage.mix of notes from the atm. mini score-card at the call centre front-end .Instant pin at the branch or at the call centre. the ability to give a Rs. .5 lakh cash advance to a customer when he/she is overseas. There were technological upgradations in the bank like: auto credit enhancement. Thus the bank invested in a state-of-the-art call centre solution and also increased the number of people at the call centre . 2. For example the mortgage unit of the bank seeing large attrition surveys showed call centre service to be an issue.premier cash advance .Immediate access to the account instead of waiting 5 days for a pin to arrive.Case Study: HDFC Bank They focused investment in technology which lead to customer .ability to link a credit card to a savings account . The banks will have to continually evolve alternate delivery channels so as to produce customer delight. The possible requirement was a profiling system that more accurately modeled risk of existing customers to reduce their rate before attrition. speech recognition. Customer satisfaction surveys jumped but attrition continued delight for these customers came from competitors who pro-actively offered them a lower re-finance rate.
made a vow to customers that this wouldn't happen again. JetBlue pledged to compensate customers based on the length of time their flights are delayed with vouchers ranging from $25 up to the full price of the ticket. However. Some customers do a particular company a great service by offering favourable word of mouth publicity regarding a product. Loyalty is build by… Keeping touch with customers using email marketing. reviews. You build it by truly giving a damn about them and figuring out how to make them more success. you build customer loyalty by treating people how they want to be treated. or a group of programs geared toward keeping a client happy so he or she will provide more business. which is well-known for its customer service. The term customer loyalty is used to describe the behaviour of repeat customers. David Neeleman. Under the customer bill of rights. telling friends and family. It is a process. Showing that you care and remembering what they like and don‘t like. customer loyalty includes much more. JetBlue has received praise from some CRM analysts for its approach to customer service. outlining a "customer's bill of rights" in a video posted on JetBlue's Web site. a program. Treating your team well so they treat your customers well. happy and joyful. For most customers there is a level of service that they expect from a business. Loyalty equals growth and profitability for your business also customers whose problems are resolved to their satisfaction are significantly more loyal than those never experiencing a problem in first place. You build it by rewarding them for choosing you over your competitors. as well as those that offer good ratings.CUSTOMER LOYALTY. The company's founder and CEO. The fiasco did take its toll on the low-cost airline. It has also earned CRM accolades for its . so business that exceed the expected level of service build a roster of loyal customers. thank you cards and more. In short. or testimonials. thus adding them to the number of loyal customers. Customer loyalty case studies JetBlue Airways acted quickly to try to salvage its reputation for customer service in the wake of a Valentine's Day 2007 storm that left its planes stranded on icy runways and its customers fuming. Market research has proven that loyal customers or repeat customers represent 80% of your business.
KarmaLoop encourages its customers to become sales reps for the company. email. the Novato. allowing service representatives to take reservations at home. and predefined business rules can trigger a session. Va.customers are increasingly taking control of relationships. including the CEO himself. CompUSA launched an application from Bazaarvoice.phone.many are looking for help recovering data after a fire. Its Web store grew from 3% of total sales to 4% between 2004 and 2005.-based data recovery company. the endless menu of touch-tone options is not a factor because there isn't one. they've done away with interactive voice response (IVR). and the company is planning to expand chat on its Web store. Calif. the real uptake in chat has come over the past year because of a growing trend -. Texas-based company.com" directly into the address bar on their browser. Customers generally call with some sort of emergency -. has found a way to save on its marketing expenses by letting customers do the work. and everyone.is an important part of EarthLink's customer strategy.early use of at-home agents. an online seller of urban street wear. Customers who came to CompUSA after finding a review on AOL. Currently. All employees in the support organization. with more than 240 retail stores.. That means a call must be answered quickly and by a live person. KarmaLoop was able to create an active and loyal customer base by railing against the large and trendy clothing stores found in malls. text chat has already proven its value. JetBlue's cache of customer service served it well during the storm. Offering a variety of support channels -. Visitors to the company Web site can hit the "click to chat" button when they need help. If those calls aren't answered after a ring or two. Dallas-based CompUSA Inc. The Boston-based company relies on its customers to market the site and the business. Chat is paying off for Sprint. answers the phone. an Austin. . Google. turned to outside help in getting its online customer review program up and running. 60% of the traffic to KarmaLoop's corporate Web site is direct load -. Yet it has established itself as a leader in urban clothing and the top online marketplace for young adults seeking unique apparel. To promote its customer strategy internally. and then they go on to the engineers and then to management. Sprint.-based Telecommunications Company. Another key to a smooth running support operation is backing from top management. At DriveSavers. automated answering systems and lengthy phone trees. MSN and Yahoo! had a 50% higher conversion rate and spent an average of 20% more per order than the typical CompUSA visitor. The company has a filtering system where incoming calls first reach a group of about 25 inbound marketers. and offers actionable analysis on the content. the Reston. According to Right Now Technologies CEO Greg Gianforte. and the company attributes 15% of that growth to chat. whether customer-facing or not. KarmaLoop.people type "karmaloop. The company counts 750. Internet chat and Web self service -.000 unique visitors a year to its Web site and has just one paid marketer on staff. At DriveSavers Data Recovery Inc.. must listen to calls to understand the customer point of view. CompUSA has seen some impressive early results. the ISP recently created the "I am EarthLink" campaign to empower all employees to do whatever it takes to help the customer. Sprint uses both proactive and reactive chat. Bazaarvoice hosts the application.. provides a team of readers to check the reviews to ensure they follow established guidelines. EarthLink's support staff works magic by serving its 5 million customers consistently. There are about 80 employees at DriveSavers. they're forwarded to another group of about 20 who take calls but also have other responsibilities.
Blue Cross of Northeastern Pennsylvania replaced a touch-tone response system with a speech-enabled interactive voice response (IVR) application from Aspect Software at the end of 2003. That shift has delivered efficiency gains and greatly expanded the customer base's access to service. The speech-enabled IVR system handles about 20% of all calls into the insurer's contact center. and because call center representatives have more time to address customers' complex questions and issues. Customers are more satisfied because they can quickly find information via the speech-enabled IVR system. . Blue Cross of North eastern Pennsylvania is also in the process of using its IVR application to enhance employee performance by implementing speech-enabled IVR post-call surveys.
the extent to which customers prefer a supplier and refer others to it. According to research 80% of customers who switch suppliers express satisfaction with their previous supplier. To facilitate a resolution by bringing together the appropriate department heads. well known Cisco Systems refers to their entire Customer Care/Customer Service function as Customer We can define Customer Advocacy as follows: ―A cross-functional role empowered to marshal organizational resources to resolve troublesome customer issues and identify root cause while balancing the financial realities and strategic goals of the company. Many companies are recognizing the importance of "customer centricity" and the implied customer focus and are thus choosing to implement a Customer Advocacy role. setting service call appointments based on the customer's. and profitability. They are trained in cross-functional roles and empowered to provide customers with assistance in all areas of the business. not an individual department. Revenue growth has everything to do with advocacy. The role of the customer advocate is three-fold: To be the main contact for the customer in handling a question or problem and keeping the customer updated with timely and frequent updates as to the progress of resolving the issue. Customer advocacy can be integrated into a company‘s strategic goals and measured through customer satisfaction. retention. The fact is that delighted customers have an affiliation for the brand that translates into bottom line growth.‖ Some examples of a customer advocacy approach are suggesting a product even if the profit margin is less for the company. A customer advocacy policy encompasses all aspects of customer contact. To implement a procedure that ensures the problem does not occur again or recommends products or services to better meet customers' needs. Customer advocates are facilitators between customers and the company. Customer Advocacy is a function that focuses on the customer. not the company's preferred hours. Turning customers into advocates Traditional measures of customer satisfaction have little to do with financial performance. It is a change in a company's culture that is supported by customer-focused customer service and marketing techniques.CUSTOMER ADVOCACY Customer advocacy is a specialized form of customer service in which companies focus on what is best for the customer. including products. So how do you create a level of customer satisfaction that is so strong that customers become your best sales people? The answer lies in creating a . organization or division of a company. services. In fact. The principles of customer advocacy hold true whatever the nature of your industry and customer base. sales and complaints. or recommending a competitor's product because it better meets the customer's needs.
US-based Johnson & Johnson (J&J). one of the largest healthcare companies in the world that has over the years built up a reputation as a marketing-savvy company. 2008.customer experience that is so distinctive and valuable that it goes beyond satisfaction – and beyond loyalty. 'Camp Baby. While some analysts appreciated J&J's initiative to build better relationships with its target segment by harnessing new media channels. Camp Babygate On April 2. In his HBR article ‗The one number you need to grow‘ Frederick Reich held argues that the only measure of performance that really matters is the ‗NetPromoter Index‘. The three day event. The purpose of the exclusive free camp was to provide an opportunity for the mommy bloggers and the company to know each other better on a common platform and to develop a long lasting relationship. Case Study : Johnson & Johnson The case discusses in detail. Customer advocacy requires you to know who your most profitable customers are and to consistently deliver a customer experience so as to create a high degree of trust in your brand. By focusing on delighting highly profitable customers. i. New Jersey6. where 56 most influential mommy bloggers8 from the US participated. Only then will these loyal and highly profitable customers be prepared to recommend your organization to others.e. The company organized the event in order to build relationships with mommy bloggers by interacting with them on a common platform. This is the result of subtracting those customers who are dissatisfied from those who are highly satisfied. It also discusses the criticism the company received for organizing the event. mothers.'an event organized by Johnson & Johnson (J&J). Our term for this is the ‗Advocacy Index‘ and our customer experience management survey measures this to determine the extent to which your firm will grow organically through attracting and retaining profitable customers through word-ofmouth. one of the largest healthcare companies in the world organized a unique event called 'Camp Baby'at its headquarters in New Brunswick. the events held during the camp and the benefits the participants and the company derived from it.7 The three day event was designed especially for parenting community. held at J&J's headquarters in News Brunswick. The case details the organization of the camp. others felt that it was nothing short of a public relations fiasco for the company and that the case highlighted the challenge in building relationships with customers in the digital age. New Jersey was not used as a platform to hard sell any of the J&J products but to connect to a core group of customers. . companies keep them loyal and eventually turn them into advocates who attract others who value the same things.
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