The basic purpose of formulating a customer-driven marketing strategy is to target a specific segment of the market. A firm should use the marketing research techniques well to identify some common demographic characteristics such as gender, age and vocation and income level to know which customer like what type of goods.
Once the company gets such idea, then it would be simpler to frame its relevant policies keeping the target customers in its mind. When a firm knows more about its customer base, it will be easier to develop a business plan accordingly.
It reduces wastage of money, time and efforts. Such strategies focus towards meeting the needs of the customers first by offering them better quality products and services. The latest consumer support survey claims that around 91% of the consumers prefer products and services that especially cater to their interests and needs than the generic products.
Formulating Customer-Driven Strategies Tricks and Techniques
1) Address the Consumer’s Needs:
The primary step towards building a customer-driven marketing strategy is to address the need of the consumers while trying to live up to their expectations and demands. For example, if the initial market research says that your customers want a high level of services, then the firm has to fulfill that goal of the consumers at the earliest.
2) Towards Building Customer Loyalty:
Creating a permanent base of consumers is equally significant. Customer-driven marketing strategy prompts a firm to build a team of faithful customers who can stand by with the company’s decision every time the company takes an important decision or launches a new product.
The 2016 market research study has stated that having 20% of the trustworthy customers are far greater than having 90% of the undecided ones. Therefore, a firm should always stress more towards creating a pool of loyal customers first then comes the rest.
3) Taking Customer Feedback:
Taking customer’s feedback regularly is a good idea to let them feel delighted, and do things as per their strategy or wish. For example, if a customer wants a modern FMCG product that meets the international standards, then the firm must try to launch such products without wasting any further time.
In addition, if consumers give feedback that they want a new office or store of the company to open near the railway station, then the company must do so.
4) Gaining Referrals:
Generating referrals is a part of a firm’s customer-driven marketing approach. The firm should encourage the existing customers to spread the word about the firm and its products or services to masses leading to wider mouth publicity, which is equally as evocative as the print media advertisement and TV Commercials.
5) Let Customers Decide:
This trick is highly successful in the restaurant business when consumers get an option to choose their appropriate food and menu depending upon their tastes. For example, let the consumers or visitors choose what kind of vegetables, fruits, and soups they want in the breakfast menu.
6) Shift Goal Towards Customer Retention:
Interestingly, 70% of the companies offering excellent product and services to the consumers do have enormous faith in customer feedback. Therefore, apart from finding new potential clients, the company should also try to retain its existing customers. Existing customers are always an asset to the firm and form a part of the company’s customer-driven marketing strategy.
7) Need-Based Marketing Policies:
A customer may have immense expectations of a company. However, the company has to fulfill those needs that are feasible and profitable from the business angels. For example, certain customers may need lower priced products while other customers may need costly products, thus, it is important to analyze the need of the customers and frames the company’s policy accordingly.
8) Geography and Cultural Factors:
The culture factor plays a lead role in the customer’s purchasing decision. For example, a person sitting in the England might not require Indian spices owing to the lesser demand for Indian spices in those areas.
Therefore, an entrepreneur needs to chalk out his strategy effectively as per the location of his business operation. Around 80% of the consumers are likely, to use products that pertaining to their nation’s boundaries. Rest is the consumers who prefer buying products outside their geographical boundaries.
9) Offer Unique and Innovative Products:
Customers also get bored with the availability of similar products in the market. Every time they go to market, they always search something creative and unexpected. The 2017 survey on consumer behavior has stated that 90% of the consumers are likely to buy products that are new and improved. Therefore, a company needs to leverage it for a greater response.
10) Free Offers and Discounts:
As a part of the customer and market-driven strategy, the company should offer free-gifts and discounts to customers from time to time. Free-gifts create memorable impacts in the minds of the customers while compelling them to buy more products from the same company repetitively.
The 2016 customer survey report claimed that 93% of the customers keep buying a product from the same brand repeatedly that offers alluring offers and massive discount rates. However, there a thin line between what a company offers to its new customers and old customers. Ideally, a company should offer equal benefits and offers to both of them.
However, in some sectors, such as the telecom business, new customers are able to derive more benefits than old consumers are. It is strictly bad and may prove detrimental to the health of the company and its business strategy. Any partiality between old and new customers could literally disappoint the existing loyal customers of the firm and might infuriate them to such an extent that they stop buying products from that company.
It is true that one angry customer can do irreparable damage to a firm. So, any customer-friendly organization should always maintain equality between its new and old customers and offer them the same benefits and offers without aggrieving both the parties.
The Business Philosophy
Every entrepreneur should have a philosophy to give impetus to its market-driven business strategy. Without appropriate school of thoughts, the company is just like a directionless ship that moves on here and there without a specific destination.
In recent times, to create a successful market and customer-driven strategy, every company comes out with a completely new philosophy. It acts as a strong foundation to fulfill the company’s dream of accomplishing a customer-driven market strategy.
1) The Concept of Right Production:
If the company wishes to target middle-class customers, then it has to start developing affordable products at a convincing price. The Accenture statistics revealed that around 87% of the customers forsake a brand due to its poor consumer service. Therefore, apart from the product, the company has to look at the quality of the customer support services as well.
2) The Concept of Right Selling:
If people are reluctant to buying products such as insurance, and other financial products, then large-scale selling and promotion are keys in this regard. A firm needs to campaign aggressively to augment its marketing strategy and get desired success.
KYC or Know Your Customer initiative is a good way to know about customers and their preferences. Companies can keep it as a reference to future use. In most countries, around 80% of the insurance firms and Banks make it mandatory for the customers to fill KYC form.
3) Social Marketing Concept:
A firm has to consider about customer's short-term wants and fulfill the company's operational requirements, and then it should follow the customer's long-term interests while retaining the company's loyal customers. By doing so, the company will be able to deliver valuable services to customers. It is sufficient to step to maintain a short-term and long-term relationship with the company’s countless consumers.
Retaining Long-Time Success in Market-Driven Strategy
The basis of a lucrative market and customer-driven strategy begins by keeping the customers’ requirement paramount. A customer and market-driven strategy are completely futile if it does not give due importance to consumers.
The 2016 statistics on the consumer survey have revealed that around 90% of the consumers immediately stop using a product because of the firm’s poor service quality. Such things are a strict no-no in entrepreneurship. In order to ensure that the company fulfills its customer-centric goals, tweaking business strategy from the customer’s point of view will be extremely helpful and fruitful.