Rudy Moenaert - What Do I Know About My Customers - Human Inference

Visionary MarketingVisionary Marketing

and an and an

Integrated Customer ViewIntegrated Customer View

Prof. dr. Rudy MoenaertProf. dr. Rudy MoenaertTiasNimbas & Vision2BTiasNimbas & Vision2B

www.moenaert.bewww.moenaert.be

Science-basedScience-based

PracticalPractical

RobustRobust

ConciseConcise

MarketingMarketing==

BuildingBuildingSustainableSustainable

BusinessBusiness

MarketMarketMakingMaking

MarketMarketFarmingFarming

MarketMarketHuntingHunting

© © Moenaert , Robben & GouwMoenaert , Robben & Gouw

MarketMarketMakingMaking

MarketMarketHuntingHunting

MarketMarketFarmingFarming

Is about acquiring the right customers.Is about acquiring the right customers.

Is about retaining the right customers, and Is about retaining the right customers, and create up- and cross-selling.create up- and cross-selling.

Is about developing the customer value Is about developing the customer value proposition and determining the hunting proposition and determining the hunting grounds for your organization.grounds for your organization.

Customers’ Outlook on Differentiating Advantage(The CODA-model)

• Product/ServiceThe core functional product or service your The core functional product or service your company offerscompany offers

• Customer ProcessThe company/customer- interaction process, as The company/customer- interaction process, as perceived by the customer, by means of which perceived by the customer, by means of which your company identifies, builds and maintains your company identifies, builds and maintains relationships with its customers and delivers its relationships with its customers and delivers its offeringoffering

• PriceThe financial and non-financial costs your The financial and non-financial costs your customers make in order to own or consume customers make in order to own or consume your products/services your products/services

• ImageThe beliefs, images, ideas or impressions the The beliefs, images, ideas or impressions the market holds about your company and/or the market holds about your company and/or the products you offerproducts you offer

Customer Customer ProcessProcess PricePrice

ImageImage

Product/Product/ServiceService

© Moenaert, Robben & Gouw

NeedsNeedsEnvironmentalEnvironmental

SafetySafety

Styling &Styling &DesignDesign

FunctionalFunctionalperformanceperformance

CompatibilityCompatibility UserUserconvenienceconvenience ServiceabilityServiceability Pre-transactionPre-transaction

processesprocessesTransactionTransactionprocessesprocesses

SwitchingSwitchingcostcost

BrandBrandimageimage

CorporateCorporateReputationReputation

Reliability &Reliability &ConsistencyConsistency

AcquisitionAcquisitioncostcost

DisposalDisposalcostcost

OperatingOperatingcostcost

ProfessionalismProfessionalism

Post-transactionPost-transactionprocessesprocesses

Availability inAvailability inthe channelsthe channels

EmpathyEmpathy

User User communitycommunity

Bundling &Bundling &ComplementaritiesComplementarities

ProductProductServiceService

PricePrice ImageImage

CustomerCustomerProcessProcess

BenefitsBenefits OfferedOffered

ProductProductimageimage

Source: “Visionary Marketing” by: Moenaert, Robben & Gouw

SymbolicSymbolic

FunctionalFunctional ExperientialExperiential

CustomerCustomerNeedsNeeds

It requires hard work

to beaverage.

It requiressmart work

to bedistinctive.

Customer Lifetime Value

CustomerCustomerLifetimeLifetime

ValueValue

BaseBasePotentialPotential

GrowthGrowthPotentialPotential

NetworkingNetworkingPotentialPotential

LearningLearningPotentialPotential

cash flow fromcash flow fromproducts andproducts andservices thatservices thatform the coreform the core

of the relationshipof the relationship

cash flow fromcash flow fromcross-selling,cross-selling,uptrading, auptrading, a

higher ‘share-of-higher ‘share-of-wallet’ etc.wallet’ etc.

cash flow fromcash flow fromnew relationshipsnew relationships

through customer’sthrough customer’sword-of-mouth,word-of-mouth,

referrals, etc.referrals, etc.

cash flow fromcash flow fromknowledge createdknowledge createdthrough interactionthrough interaction

within thewithin therelationshiprelationship

BaseBaseBusinessBusiness

ExtendedExtendedBusinessBusiness

LeveragedLeveragedBusinessBusiness

““Between 65% and 85%Between 65% and 85%of customers who defectof customers who defectsay they were satisfiedsay they were satisfied

with their former supplier”with their former supplier”

ReichheldReichheld

Loya

lty

Satisfaction

Non-competitive

Zone

Highly Competitive

Zone

“Marketers cannot afford to be democratic. They must invest their efforts and budgets where they will produce the most return. The most valuable customers deserve special treatment to build and retain their loyalty. The risk of not giving it to them is great. If a marketer treats high-profit consumers like everyone else, they will treat the marketer’s brand like any other”

(Hallberg in All customers are not created equal”)

Pre-Pre-ConsumptionConsumption

ActivitiesActivities

Consumption Consumption of Core Offeringof Core Offering

Post-Post-ConsumptionConsumption

ActivitiesActivities

Make decision forMake decision forHimalaya trekHimalaya trek

Information searchInformation searchon trekking organizationson trekking organizations

Making a reservationMaking a reservationwith a trekking organisationwith a trekking organisation

Journey to NepalJourney to Nepal

Trekking, eating and lodgingTrekking, eating and lodgingin Himalaya regionin Himalaya region

Journey homeJourney home

Experience pictures Experience pictures and videosand videos

Stories to family Stories to family and friendsand friends

Visit to Visit to KathmanduKathmandu

Evaluation of alternativesEvaluation of alternatives

Get together withGet together with trekking teamtrekking team

Plan next trekPlan next trek

Administrative formalitiesAdministrative formalities(visa, insurance, currency,...) (visa, insurance, currency,...)

Buying (additional)Buying (additional)trekking equipmenttrekking equipment

Get-together withGet-together withtrekking teamtrekking team

RBVRBV

(Resource-Based View)(Resource-Based View)

Competitive advantage

and resources

are two sides

of the same coin

EfficientEfficient& Customized& Customized

ConvenienceConvenience24/724/7

CompetitiveCompetitivePricesPrices

Image :Image :The proactive, The proactive,

trustworthytrustworthyPhonebankPhonebank

AwarenessAwareness(45 %)(45 %)

PressPresscampaignscampaigns

QualityQualityawardsawards

Word-of-Word-of-mouthmouth

recommendationsrecommendations

SuccessfulSuccessfultrack recordtrack record

CustomerCustomerSatisfactionSatisfaction

(delight)(delight)

Leeds WorkforceLeeds Workforce(empathy; language)(empathy; language)

StaffStaffRecruitment &Recruitment &

TrainingTraining

TeamsTeams

RotationRotation

EmployeeEmployeesatisfactionsatisfaction

Cross-Cross-SellingSelling

LimitedLimitedStaffStaff

ACD : AutomaticACD : AutomaticCall DistributionCall Distribution

MidlandMidlandTechnologyTechnologyBase (ATM)Base (ATM)

HealthyHealthyCustomerCustomer

Base (50 %Base (50 %Acceptance)Acceptance)

LeedsLeedslocationlocation

BRs handle 85%BRs handle 85%of inquiriesof inquiries

HotHotdeskingdesking

CentralizedCentralizedofficeoffice

MINDMINDICTICT SupervisorsSupervisors

Business Innovation

Realizing

extraordinary objectives

with

ordinary people

Launched player-card program (Total Gold) in 1997

Discovered that 26 % of gamblers generate 82 % of revenuesThose high-value customers do not match stereotypesHigh value customers are triggered by gambling offers

Very happy customers increase gambling spending by 10 %/yearUnhappy customers decrease gambling spending by 10 %/year

Differentiate service for Gold, Platinum and Diamond cardholdersIntegrated transactional data from all 26 sitesDeveloped and patented technology to do it

Linked employee rewards to customer satisfaction

““To really deliver on the brand promise, we've got to beTo really deliver on the brand promise, we've got to beable to capture the hearts and the minds of people. We able to capture the hearts and the minds of people. We focus on four things: greeting customers warmly, callingfocus on four things: greeting customers warmly, calling

them by name every time, thanking them for the businessthem by name every time, thanking them for the businessand asking them if there is anything we can do to help and asking them if there is anything we can do to help

them. them.

And we measure that; And we measure that; currently we're up over the 90 percent level"currently we're up over the 90 percent level"

Judith HatleyJudith Hatleyvice-president, Marketing & Customer Managementvice-president, Marketing & Customer Management

Internal MarketingInternal MarketingMaking promises possible!Making promises possible!

External MarketingExternal MarketingMaking promises!Making promises!

Interactive MarketingInteractive MarketingDelivering the promises!Delivering the promises!

CustomerCustomerSegmentSegment

VolumeVolumeofof

purchasespurchases

ContributionContributionto profitabilityto profitability

LifestyleLifestyleand valuesand values

WebsiteWebsiteinloginlog

addressaddress

BannerBannerreactionsreactions

ProfileProfileof purchasedof purchased

productsproducts

LifetimeLifetimevaluevalue

ClickstreamClickstream

MailingsMailingsto customerto customer

RecencyRecencyofof

purchasespurchases

LocationLocationof purchasesof purchases

Share ofShare ofcustomercustomer

CustomerCustomersatisfactionsatisfaction

WarrantyWarrantytermsterms

Exit ofExit ofwebsitewebsite

CustomerCustomersizesize

Length ofLength ofwebsitewebsite

visitvisitCustomerCustomer

demographicsdemographicsand and

classificationclassification

IdentifierIdentifierand and

AddressAddress

CustomerCustomercontactcontact

personnelpersonnel

FrequencyFrequencyofof

purchasespurchases

TermsTermsofof

paymentpayment

MailingMailingresponseresponse

PaymentPaymenthistoryhistory

ServiceServicelevellevel

agreementsagreements

Legal statusLegal statusof customerof customer

Finance/resource allocationFinance/resource allocation

ControlControl

Procurement/vendor selectionProcurement/vendor selection

Channel designChannel design

Order fulfillmentOrder fulfillment

LogisticsLogistics

Channel relationship managementChannel relationship management

PricingPricing

Selecting target marketsSelecting target markets

Operations/manufacturingOperations/manufacturing

Technology developmentTechnology development

ICT-implementationICT-implementation

Managing brand equityManaging brand equity

Human resource managementHuman resource management

Service deliveryService delivery

Strategic planningStrategic planning

Selling and communicationsSelling and communications

Customer relationship managementCustomer relationship management

Market sensing and intelligenceMarket sensing and intelligence

Strategic partnering and alliancesStrategic partnering and alliances

New product/service developmentNew product/service development

0% 10% 20% 30% 40% 50% 60%

20072007

20032003

19991999

Making a profit

is not an option.

Making a profit

is a duty.

Making a profit

is not an option.

Making a profit

is a duty.

LearningLearningandand

GrowthGrowth

InternalInternalBusinessBusinessProcessesProcesses

Vision &Vision &StrategyStrategy

FinancialFinancialResultsResults

CustomerCustomerResponseResponse

ValueValue@@

Your CompanyYour Company

ValueValue@@

Your CustomerYour Customer

RunningRunningyouryour

BusinessBusiness

ChangingChangingyouryour

BusinessBusiness

© Moenaert, Robben & Gouw

My name is Rudy Moenaert (1961) and I am a professor of strategic marketing at TiasNimbas Business School (University of Tilburg - TU Eindhoven) and a part-time professor of marketing at Nyenrode Business University. My research interests focus on strategic marketing (‘business roadmapping’) and the management and marketing of technological innovation in B2B settings.

I consider my business to be the business of fun. As a scholar, teacher and consultant in the field of strategic marketing, I try to develop science-based knowledge that is relevant to the business community. I have won the TiasNimbas best teacher award twice, and have published in journals such as the Journal of Product Innovation Management, Management Science, R&D Management, IEEE Transactions on Engineering Management, and the Journal of Management Studies.

Together with Henry Robben, I have published ‘Visionaire Marketing’ (Lannoo, 2003, 2006). Henry Robben, Peter Gouw and myself have now published 'Visionary marketing. Building sustainable business’ (LannooCampus, 2008).

In addition to research, I enjoy family life, diverse sports, fine cuisine, good wine, and motor biking.

Please visit www.moenaert.com or www.visionarymarketing.nl for resources on business roadmapping or advice on and supervision of business roadmapping projects.