Lecture 3b Customer Relationships

2images by JAM

customer segments

key partners

cost structure

revenue streams

channels

customer relationships

key activities

key resources

value proposition

CUSTOMER RELATIONSHIPS

what relationships are you establishing with each segment? personal? automated? acquisitive?

Retentive??

We Call Customer Relationships Demand Creation

• Get, Keep and Grow• How will customers hear about your product?• How much will it cost to acquire a customer using these

strategies?• How does market type impact my demand creation strategy?

Customer Relationship Definition

Get

Keep

Grow

6

Get Customers

Who needs to hear about you?

Suppliers

Channels

Government

Partners

End User

Influencer / Recommender

Economic Buyer

Decision Maker

Demand Creation Getting Free Users

• Search Engine Optimization (SEO)• Blogging / Sharable content• Social Media / Gaming Mechanics• Communities• Proven viral coefficient >1

Demand Creation

Demand Creation Paying For Users

Public Relations

Demand Capture SEM “Free” products (e.g. widgets) Biz Dev Affiliate Marketing

Market Education Webinars Email marketing Trade Shows Analyst Reports Direct Sales TV / Radio

Demand

Creation

Aw

aren

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Co

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Inte

rest

Pu

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ase

“Get Customers” Funnel

Get Customers Funnel - Physical

Demand Creation Feeds the Sales Funnel

PayingCustomers

$

Demand

Creation Acquisition

12

Keep Customers

Aw

aren

ess C

on

sid

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n

Inte

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t

Pu

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Earned and Paid

Media Get Customers

Keep Customers

Customer check-in calls

Customer satisfaction survey

product updates

Loyalty Programs

Keep Customers Funnel - Physical

14

Grow Customers

Aw

aren

ess

Co

nsi

der

atio

n

Inte

rest

Pu

rch

ase

Earned and Paid Media

Get Customers

Keep Customers

Customer check-in calls

customer satisfaction survey

product updates Loyalty Programs

Grow Customers

Referrals

Un

-B

un

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g

Up

-Se

ll

Cro

ss-sell

Grow Customers Funnel - Physical

16

Get Customers

“Get Customers” Funnel

Acq

uir

e

Act

ivat

eViral Loop

Get Customers Funnel – Web/Mobile

Earned and Paid Media

“Get Customers” FunnelPR

SEO

Advertising

Blogs/Website

Tradeshows

Acq

uir

e

Act

ivat

e

Viral Mktg

SEM/PPC

Affiliate Mktg

Viral Loop

Demand Creation Feeds the Sales Funnel

19

Keep Customers

Contests,eventsBlogs,

RSS, emails

Product updates Affiliate Programs

“Get Customers”A

cqu

ire

Act

ivat

e

Viral Loop

Earned and Paid

Media

Loyalty Programs

Keep Customers

Keep Customers Funnel - Web/Mobile

21

Grow Customers

Keep Customers

Contests,events

Blogs, RSS,

emails

product updates Affiliate Programs

Grow CustomersN

ext-Sell

Referrals

Up

-Se

ll

Cro

ss-sell

Loyalty Programs

Acq

uir

e

Viral Loop

Earned and Paid

Media

Act

ivat

e

Grow Customers Funnel - Web/Mobile

• How many come through the first step?

• How much does that cost?• What is the conversion between

each level?• How much in revenues can you

get out of each acquired customer?

Demand Creation by Market Type

• Create, drive demand into your sales channelExisting

Resegmented

New

• Educate the market about what’s changed

• Drive demand into channel

• Educate the market• Identify/drive early adopters into your

sales channels

Clone • Copy a business

Market Type

Existing Resegmented New

Customers Known Possibly Known Unknown

Customer Needs Performance Better fit Transformational improvement

Competitors Many Many if wrong, few if right

None

Risk Lack of branding, sales and distribution ecosystem

Market and product re-definition

Evangelism and education cycle

Examples Google Southwest Groupon

Market Type determines: Rate of customer adoption

Sales and Marketing strategies Cash requirements

How does market type influence demand creation?