Two key kinds of products exist in the market at the moment; they are either product-driven or they are customer-driven. The first kind is made on the assumption that a worthwhile product will eventually find its customers, whereas the second one is about analyzing customers and creating something which specifically suits their needs.
In the same manner, two key methods to promote these products are present. They are helpful in making them visible so they can reach customers. Now we will focus on customer driven marketing strategy to understand key aspects of such a marvelous data marketing strategy.
Learning about a customer-driven data marketing strategy?
A customer driven marketing strategy helps marketing teams embrace shifting their focus from a product to its end user. It also means changing the basis of the marketing strategy, plans and strategy to focus on customer needs and objectives on first priority.
It may sound counterintuitive at first but in reality, customer-driven marketing is customer centric (i.e. it is more of customer service in comparison to marketing).
The main objective of companies is to satisfy their customers, deliver exactly what they want (and need) and they should be as flexible as they can for them. Companies hence concentrate on their existing customers and retain them in the best possible manner.
Companies do not need to go far in the search of examples because they can find a lot of products that are customer-driven with a marketing strategy that corresponds quite well with their tactics and strategies.
Why is value driven marketing important?
Value driven marketing strategy is important and has one major objective i.e. making meaningful value for customers. Through such an approach, the business/brand/organization starts attracting new clients and prospects.
What it needs is a firm commitment to look for ways to add value to the clientele. They are the ones who help determine the worth of the products/services a company/brand/business offers. Here are some key reasons a value based customer driven marketing strategy is important to successful companies:
Achieving a higher customer lifetime value (CLTV)
Identifying marketing segments and creating programs which are targeted by specific customers is a key component of such a marketing strategy. It is key in delivering a unique value proposition to the right customers at the right time. This helps raise customer loyalty towards a company in a short time span.
It amplifies the customer base
A presence of a value driven marketing plan is instrumental in giving customers the exact value they are searching for. If a brand or an organization is successful in impressing their clientele in the first turn, their customer base increases with referral customers and via word of mouth as well. Moreover, any customer driven marketing activity done right also raises the customer base nicely.
It helps cultivate customer loyalty
Almost 60 percent of customers loyal to their favorite businesses, brands or firms will purchase from them more frequently. Companies can connect customer data through data marketing in an ethical way, and utilize it to create a dynamic and worthwhile experience for customers.
This is key in terms of delivering delightful experiences to customers which hence raises revenue and brand loyalty among customers.
Steps in creating a successful customer-driven marketing strategy
Understanding customers is crucial when it comes to helping a customer-driven marketing strategy become successful. The customer-centric approach goes beyond traditional responsibilities of any data marketing team. The sales and support team should also understand ways to provide top-notch customer service and experiences.
Now it is time to discuss the main attributes of developing a worthwhile customer driven marketing strategy to make you business, brand and organization alike.
Identifying the target audience
Making a customer driven marketing strategy focusing on identifying the target audience and understanding their needs is a must. This is instrumental in formulation of buyer personas which then helps personalize the marketing activities. Approximately 50 percent of companies who achieved superb sales and revenue objectives always maintain their buyer personas.
Buyer personas are also known as customer personas. They add a great amount of value to businesses through representation of various segments.
In this manner, Using data-driven marketing research helps understand who the target audience is and what motivates them to purchase the products and services offered by a particular business. Data marketing collected from various sources and channels helps make a clear picture about the target audience and market.
The vital component of a buyer’s persona’s influence is improving customer experience. Personas that are well made also result in marketing and sales driven by value.
Here are some ways buyer personas help in such a marketing strategy:
- Boosting value propositions aligning with the needs of customers.
- Speeding up profits by providing customers with the things they are looking for.
- Providing a good understanding of buyers, their needs, their problems and solutions to their problems.
- Raise lead conversions by aligning teams around a customer-centric culture.
Segmenting the target audience
Making segments allows firms to see the audience from a broader perspective. Segmenting the audience is critical because consumers today are quite empowered. They are making buying decisions quicker than they used to.
The challenge for digital marketers is understanding how to catch them during the buying decision making process. To do it, they must do everything they can to understand how their audience thinks and behaves.
Targeting the right audience with the right messaging is vital. Here are some benefits to segmentation that can help improve customer experience of the target audience:
- Making tailor made marketing initiatives to match the products in a much better manner, or doing the same with services to match the audience segment’s needs.
- Boost the products or services offered. Market segmentation can help companies know what works, what doesn’t work and what needs to change.
- Enabling businesses to retain more customers by offering products/services that are more appealing as per their lifestyle.
Making the product strategy a good fit as per the market
Finding customers and designing a product based on market intelligence and information any company has gathered is free of risk and a much better thing to do. It is a customer centric approach making products relevant to the customers.
When focus is put on customer needs everything from product development to marketing strategies becomes a success.
Key tips towards making a successful customer driven marketing strategy are as under:
- Making a positioning map.
- Highlighting the value proposition.
- Selecting the competitive advantage.
XCreating a multiple channel customer engagement plan
Today’s customers expect brands to deliver a multiple channel experience. They want to buy using their phones, tablets and computers. For a successful value driven strategy, a multichannel customer engagement plan is needed.
Multichannel strategies help firms gain valuable insights into customer interactions and such behavior across their life cycle. Businesses using this tactic retain almost 90 percent of their customers.
Omnichannel engagement empowers customers to connect with their favorite brands through their desired channels. This is done through a smooth transition in the same interaction. In turn, satisfaction rises and the lifetime value of customers rises too.
Hence it is crucial to plan a strategy in delivering worthwhile multichannel customer experience. The key elements for such a plan are as under:
- Connecting with customers across their desired channels.
- Engaging with customers by using the necessary tools.
- Personalizing the interaction.
Investing wisely in customer service experience
Customer service is a key part of any consumer driven marketing strategy. They always remember brands through the kind of service offered. A lackluster customer service experience strategy will make businesses lose out on a lot.
When businesses invest in a customer service centric culture, they can make customer loyalty and raise customer lifetime value (CLTV). Here are some worthwhile tips:
- Companies must provide real time support using live chat software and visual engagement tools.
- They can automate customer support tasks using chatbots to provide round the clock service and replies to customer queries.
- Delivering consistent support across all channels by being active whenever customers are present.
- The support team should be trained with the right communication strategies for customer service to deliver top experience and service quality.
Using customer feedback to improve the marketing strategy
One of the key aspects of a customer-driven marketing approach is customer communication. The support team plays a vital role in the overall marketing plan. Customers interacting with the business should have excellent experience to bring benefits to both sides.
Positive customer experience helps create a better brand reputation whereas negative customer experience brings in bad feedback.
Moreover, implementing customer feedback helps companies better products and services, and gives them a feeling that their customers are valued. Customers then are assured their opinions are listened to which are important to create loyalty and trust.
Getting more customers through word of mouth marketing
Raising the customer base through referrals and word of mouth strategies can be a very good part of the customer driven marketing strategy. Customers can be encouraged to share their positive experiences and success stories on social media platforms. This can help attract new customers.
A customer driven company has a positive impact on customers. For the brands that customers are loyal to, they show willingness by following the brand’s customers who are using word of mouth tactics.
Customer driven marketing helps create strong links between brands, businesses and organizations and their customers. A presence of a customer-centric strategy not only helps with making a strong brand and customer acquisition process, but also helps complete the feedback loop and helps companies become aware of the changing customer needs.
In short, each business desiring to deliver a worthwhile experience through its products/services to customers must focus on the experiences in their value marketing strategy and have a customer centric focus in their marketing efforts.