Unit 1: Customer Centric
Evolution of marketing concept
1. Selling what you know how to do Vs. Selling what the customer needs and doing it
profitably
2. Who are our current and potential customers?
3. What does the customer need? What do the competitors offer?
4. What are the sources of profit and how is sustainability achieved?
What is a customer?
The customer is a person or company who purchases goods or services (not necessarily
the final consumer).
1. CONCEPTS, DIMENSIONS AND EVOLUTION OF CUSTOMER MARKETING
Marketing according to the American Marketing Association (AMA) (1960):
‘The execution of certain business activities that, in a planned and systematic way, direct
the flow of goods and services from the producer to the consumer for mutual benefit’.
Marketing according to the American Marketing Association (AMA) (2004):
Marketing is a function of organizations and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships through processes that benefit the organization and all stakeholders.
Main Goal of Customer Marketing – Building Stable and lasting relationship,
satisfaction and loyalty.
Customers don't come first, employees come first. If you take care of your employees,
they will care for your customers.
What do costumers value?
✓ Information, rather than persuasion aimed at selling
✓ Interaction with the company
✓ Personalisation of products
✓ Integrated solutions to individual needs
Customer Knowledge
✓ Reduce the time to obtain insights in real time.
✓ Improve data visualisation for visual analysis.
✓ Develop an architecture the balances flexibility and security in data management.
Insights, the human truths that derive from the way consumers think, feel, or act and that
generate opportunities for new products, strategies, and communication for companies.
Evolution of the marketing concept: from Transactional Marketing to
Relationship Marketing
Elements favouring the development of relationship marketing
Customer – Centric
Customer centricity is a strategy whose primary objective is to align the
conceptualization, development, and marketing of a brand’s products and services with
the needs and desires of its most valuable customers.
This strategy has a very specific purpose: to maximize the brand’s profits in the long term.
Not all customers are the same
From a customer-centricity perspective, there are two types of customers: priority
customers and the rest. This does not mean that the latter should be forgotten, but rather
that investing more time and resources in the best customers is key to the profitability of
your business. The best customers are key to the long-term profitability of the brand. long-
term brand profitability.
Importance of Customer Retention Vs Customer Acquisition
1. Es mucho mas caro adquirir un cliente nuevo que retener a uno que ya tenemos
2. Es una métrica que lo que hace es relacionar todo lo que el cliente nos va a
comprar mientras sea nuestro cliente
3. Esta hace referencia a la facturación total que tenemos con ese cliente en
cuestión
4. Tenemos que analizar que clases de segmentos hay para ofrecer nuevos
productos y aumentar el nivel de satisfacción
5. Aquí tenemos que hacer una defensa de nuestra cuota de mercado y que no se
nos vaya
Customization
This is not about the company selling what it produces, but about satisfying one or more
specific needs of a particular type of customer better than any competitor. With this
mindset, the company can stop worrying about producing the goods it sells and focus on
its real purpose.
Generating the best possible customer experience.
2. Client Typology
There is no single classification. In fact, it is possible for each business area to have its
own, as it is sometimes the commercial spectrum that shapes the character of
customers. In a general sense, a company has two types of customers:
Current customers. These are individuals, companies or organizations that make
purchases from the company on a recurring basis. This type of customer is the one that
generates the current sales volume; therefore, it is the source of the income that the
company currently receives, and it is the one that allows it to have certain market share.
Potential customers. They are visualised as potential customers in the future
because they have the necessary willingness, buying power, and authority to buy.
Existing customers. Existing customers are further broken down into currency,
frequency, purchase volume, level of satisfaction, and degree of influence.
- Active and inactive customers
- Frequent, average and occasional buyers
- High-, medium- and low-volume customers
- Pleased, satisfied, or dissatisfied customers
- Influential, medium-influential, and family-influential customers
Other customer typologies
Impulse Buyers:
1. Make spontaneous, unplanned purchases driven by emotions or in-the-
moment desires.
2. Typically respond well to visual merchandising, promotions, and impulse
items at the point of sale.
3. Have a low customer lifetime value as they are not loyal and make
sporadic purchases.
Bargain Hunters:
1. Primarily motivated by finding the best deals, discounts, and value for their
money.
2. Tend to comparison shop and research prices extensively before making a
purchase.
3. Often take advantage of sales, coupons, and clearance items for the
lowest possible price.
Brand Loyalists:
1. Have a strong emotional attachment to certain brands and are willing to
pay a premium for them.
2. Consistently return to purchase the same brands, even if alternatives are
available at lower prices.
3. Provide valuable word-of-mouth marketing and are less price-sensitive.
Need-Based Customers:
1. Purchase products or services to fulfill a specific, functional need.
2. Focus on the practical features and benefits rather than brand or
emotional appeal.
3. Tend to be more price-sensitive and may switch providers if a better value
proposition is offered.
Experience Seekers:
1. Seek out unique, memorable, and personalized shopping experiences.
2. Value exceptional customer service, engaging environments, and exclusive
offerings.
3. Tend to be less price-sensitive and more willing to pay for a premium
experience.
Passive Customers:
1. Make purchases out of habit or convenience rather than active
engagement.
2. May not have strong brand preferences and are open to trying new options.
3. Requires minimal effort to retain, but can be easily swayed by competitors.
Relationship-Oriented Customers:
1. Seek to develop personal relationships with the business and its
employees.
2. Value individualized attention, customized offerings, and a sense of
belonging.
3. Tend to be more loyal and willing to provide feedback and referrals
