Are you reaching out to your potential market en masse or do you use the more subtle, effective method of relationship marketing? Your transactional customers may not sustain your business long term and according to Pareto’s Law approximately 20% of your customers are going to be responsible for 80% of your business. So do you know who these emotively loyal customers are and how are you engaging and communicating with them? Does your business adhere strictly to the traditional marketing mix approach focusing on markets and products or are you developing a more holistic approach and developing relationships with your customers? Is there synergy between your customer service departments, quality management and marketing team and does your strategy recognise that each employee has a marketing function? Are the customers that are initially loyal to your brand about to jump ship because you are not cementing your relationship with them?
It is important to know who your customers are to retain their loyalty to your brand, they are the ones that have developed trust in your brand and need individual attention. Analysing your consumer database offers insights into their needs and demographics. Customer Relationship Management (CRM) is about understanding who your customers are through long term study, improving the way you communicate with them and is aimed at creating relationships that can increase profitability. Vital information about customers such as frequency, recency, type and amount of purchase will help you develop a picture of their Life Time Value (LTV). You can segment your markets and target them more effectively communicating with them about products they truly might be interested in, anticipate their needs and track their response to your personalized approach and promotions. The data from CRM programs should feed back to management to drive the marketing strategy forward and assess the most effective and convenient communication channel for your different customers whether it be point of sale or internet based. Indeed for this valued set of customers you should be acutely aware of how they prefer to be communicated to.
However, there is no point in having lots of data if you are not using it thoughtfully and allocating resources to maximize the return from your 20% of most profitable emotivally loyal customers. Businesses can use free (for basic features) internet data analysers e.g. Google Analytics or invest more deeply by using services such as Omniture or Webtrends. Businesses that choose to use a paid service may already be ahead of the game since they have signaled a deeper commitment to the process of customer analytics. CRM systems are the key to defining your customers; creating customer satisfaction; improving customer service brand loyalty; receiving their feedback; engaging them as brand ambassadors and can result in directed rather than mass marketing.
So how is brand Dubai doing these days? Well, Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, set up the Dubai Media affairs office in 2009. One of its purposes is to investigate and enhance Dubai’s image and if recent reports are to be believed Dubai is rapidly overcoming the backlash the city saw in the wake of the debt crisis and more positive chat is appearing again . Sheikh Mohammed himself has 457,885 twitter followers and growing and it is clear that the relationship strategy for Brand Dubai has key leadership support.
ISM training will run the highly successful Marketing Masterclass public course from September 11th to 13th and also runs more focused Marketing Communications/Strategy courses both in-house and publicly.