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TRANSCRIPT
The Power of Brands in undeniable
Apple is a huge brand
Brand Value >
$200 billion
Millward Brown
Brands are important, but consumers have changed …
More Awareness
More Exposure
Communication
Knowledge driven
economy
Information generation
Business Ethics
Value endowed to products and
services
(as built in the past)
Value endowed to people who are
buying the products and services
(as they will in the future)
Brand Equity
Customer
Equity
There is a shift…
Customer Equity
Create a relationship, creating
demand value to
deliver sales
Sales
Pushing products into the
consumers hands drive sales
The Main Objective of Chief Sales Officers is to Increase sales effectiveness
, Accenture
It’s pretty hard to create and maintain customer loyalty
, Accenture
“Most companies treat sales like an art, but they are discovering that the sales process needs to become more of a science.”
Bain, 2012
We build customer equity by
focusing on the customer
Customer Equity: Definition
“The sum of the customers’ lifetime values to
the organisation”
– Blattberg and Deighton
Customer Equity: Purpose
• Purpose is to maximize value that can be gained from managing customers better, to deliver a better customer centric organisation
• To drive a direct relationship with the consumer, to ensure continued support and loyalty
• To move the consumer from knowing a product to purchasing a product
Customer Acquisition
• To keep the consumer buying the product over and over again
Customer Retention
70% of a company’s revenues are through retained customers
Does marketing spend reflect this?
Marketing Focus
• Creating awareness
Marketing Focus
• Creating excitement
Marketing Focus
• Loyalty
Marketing Focus
• Social Media
70% of a company’s revenues are through retained customers
Does marketing spend reflect this?
NO
What do we do?
Focus on the customer
The Drivers of Customer Equity
Retention Equity
Brand Equity
Value Equity
Customer Equity
Sales and Profit
Connect with the customer
Focus on relationships
1. Understand the customer
2. Same goals and purpose
3. Share the value proposition
4. Keep service oriented
5. Anticipate problems
6. Manage the issues
Maximize Customer Equity
• Determine which drivers impact the business the most
Retention Equity
Brand Equity
Value Equity
Maximize Customer Equity
• Invest in the high value customers first
• Transform product management into customer management
• Reduce costs associated with customer acquisition
• Track customer equity gains and losses against marketing programs
• Relate branding to customer equity (segmentation)
• Build separate plans for customer acquisition and customer retention
Business is always personal
Let us help you drive better results
“There is only one profit centre, and that is the customer” – Peter Drucker
Contact: Jainita Khatri Mobile: +27 (0) 83 414 9796 Email: [email protected] www.pranabusinessconsulting.com Twitter ID @PranaBusCons