Importance of consumer centric approach marketing Essay
Importance of consumer centric approach marketing
A consumer centric approach is a method in marketing that focuses on the needs and wants of an individual consumer (Kaufmann & Mohammed 302). The approach does not deal with customers like the mass market. It makes constant interaction with the customers. This is done so as to get information that makes a business understand what are customers’ expectations, perceptions and desires. By acquiring all the necessary information the business is able to design new and best strategies to increase its loyalty in the services and products. The businesses also use this approach to increase the customer’s satisfaction. The customer centric is like focusing on what the customers’ value in life. After finding that value is when the business can dedicate its efforts on a particular high value customer segment.
Internal and external factors associated with consumer-centric
According to Jham & Puri (3) there are internal and external factors that affect the consumer- centric method from identifying the customers’ behavior. They make it difficult for a business and its consumer to have an interaction. The external factors are the environmental influences and the internal factors are the individual differences. The external factors such as social class, personal influence, attitudes and family: complicate the consumer’s decisions (Jham & Puri 3). The internal factors include; motivation knowledge, personality, attitudes, lifestyle, consumers’ resources and values. They also affect the consumer’s decisions. The consumer resource as part of internal factors; reflects on time and money. It is difficult to establish an interaction with the consumer if he or she is not financially stable. The most crucial factor is behavior. Most of the customer’s can buy the product out of convenience not because they believe in the brand.
Why do we need to focus on consumers?
The customers are very important in a business. They are the ones who determine the success of any organization. When an organization focus on consumer satisfaction; it becomes easy to find some metric that it can use to improve its business. However, it also becomes easy to manage the selling of the products and services. Concentrating on consumers has advantages to the business. It helps the business identify the consumer’s loyalty (Beard 1). The consumers’ acts like advocates in a business. They can help the business grow. A satisfied customer is able to share with others the goodness of the product or a service. This help increase the rate of consumers in a certain business. They are like small marketers or “evangelists.” Unhappy customer results to a risk of losing many consumers in the business. This is because of the negative word of mouth.
Concentrating on consumer help bring differentiation (Beard 1). A market is a competitive place that every business fights to get more customers. In order to succeed in this kind of environment one need to focus customer satisfaction. The customer can only choose to associate with the business that satisfies them. They find that kind of businesses unique and different from others. Customer satisfaction reduces Churning. Poor services make customers want to experience products from the competitors. A certified customer does not find it necessary to experience the quality of other products. In a business, it is very expensive and difficult to acquire new customers. The organization may spend resources on marketing and adverts so as to acquire more customers. The best option to avoid these circumstances is by retaining customers through satisfaction. It is the only way for a business to succeed.
Consumer-centric in companies
Customer centric marketing is used by many companies in the world today. The companies that use this approach become knowledgeable on ways to enhance their products and services. However, the consumer-centric companies have more qualities compared to others. They are accessible. The customers find it easy to connect with them. They are responsive. They are able to reach out to their customers by different channels and respond to their suggestions and needs. Customer centric marketing (CRM) has been upgraded into eCRM in many companies (Kaufmann & Mohammed 302). The advances in the technology have changed the way consumers such for information of the products they need. The old CRM did not satisfy the needs of all consumers.
With the help of the new technology both eCRM with traditional CRM are now used by companies to enhance consumer quality service standards. The eCRM is a new tool being used by many companies to enhance their marketing skills. This is because it allows transferring of information across channels through the data driven tools. The companies that use eCRM are able to increase consumer satisfaction, their services and loyalty. However, some of them have increased online sell through this new technology. Customer centric companies have large market share compared to others. This is because they are able to reach out the market through “customer satisfaction.” This is very important thing. Other companies that do not have CRM have small market share. The business can only have a large market share by being the heart of the consumers.
Concept of relationship marketing in consumer-centric approach
Relationship marketing is a concept in the business related to Consumer-centric marketing. Its main agenda is to achieve the consumer’s loyalty. The approach makes sure the businesses have interaction and long term engagement with the consumers (Learning business 1). The approach allows open communication with customers and gives them information suited for their needs. It makes the business develop an emotional connection or relationship with the customer. This approach is same as the consumer-centric. It deals with loyalty and developing a good interaction with the consumers. It has the same agenda of satisfying consumers. The methods used in relationship marketing apply in CRM. They use methods such as; marketing campaigns. This can be used by the CRM to promote organizations, the products, special offers and the brand.
Methods such as competitive prices, excellent customer services and quality products are essential in providing a good relationship with the customers (Learning marketing 1). They lead to best buyer- consumer relationship. They are the best methods of retaining customers in a business. However, the relationship marketing monitoring methods used to ensure customer satisfaction are appropriate for CRM. Personal interview by use of questionnaires or phone calls is best to find out consumers view regarding products and services. The mystery shoppers can also be applied. They include suggestion boxes, online surveys. Customer complaints and customers’ general comments are also important. They help business know where they stand in the market. The CRM help the business to come up with the best market segmentation. It is because they can know the needs of each individual in a certain area.
The fit of marketing offering in consumer-centric approach
Marketing offering is appropriate when using the consumer- centric approach. It is because it deals with additional values to the customers (Hunt 1). In order to deliver values such as availability, technical support, convenient delivery or quality service; CRM is the right approach. It deals with maintaining a good relationship with the consumers. Adding the values to CRM helps the consumers be more loyal and trust the products or services. The offering marketing fits in the CRM because before it is carried out. The business needs to understand customers’ important factors. They help understand if the products are supportive or convenient. The convenience acts like a differentiator between the values offered to that of the competitors. The offerings are determinants whether the customer can buy from a certain company or not. They also involve the customer service similar to the CRM. If a business responds to the request of customers immediately; it gives them confidence.
Customer- centric is a good approach for business. It enable establish a good relationship between the business and consumers. However, it responds to customers request which a very important aspect. Customer satisfaction is a very important thing. Consumers determine the growth of the business. They are advocates. A business that practices consumer satisfaction has a competitive differentiation. However they do not experience churning since their services and products are convincing than others. CRM is related to the relationship market. All this approaches are interested in customers’ loyalty. They are approaches that help the business acquire a large market share. Customers’ are always attracted with satisfaction than any other thing in the product or service.
Beard, R. Why customer satisfaction is very important (6 reasons). (2014). Retrieved on 27th February 2015. < http://blog.clientheartbeat.com/why-customer-satisfaction-is-important/>
Hunt, Shelby D. Marketing Theory: Foundations, Controversy, Strategy, Resource-Advantage Theory. Armonk, N.Y: M.E. Sharpe, 2010. Print.
Jham, Vimi, and Sandeep Puri. Cases on Consumer-Centric Marketing Management. Hershey, PA: Business Science Reference, 2014. Internet resource.Kaufmann, Hans R, and Mohammad F. A. K. Panni. Customer-centric Marketing Strategies: Tools for Building Organizational Performance. Hershey, PA: Business Science Reference, 2013. Print.
Learning marketing. (2014). Relationship marketing. Retrieved on 27th February 2015.< http://www.learnmarketing.net/relationshipmarketing.htm>