What Most Companies Miss About Customer Lifetime Value

For managers and marketers alike, the power to calculate what customers might be worth is alluring. That’s what makes customer lifetime value (CLV) so popular in so many industries. CLV brings both quantitative rigor and long-term perspective to customer acquisition and relationships. For all its impressive strengths, however, CLV suffers from a crippling flaw that blurs its declared focus.

Four Ways to Win Over a Digital Customer

As business and IT executives increasingly explore the use of digital capabilities to empower customers and increase overall engagement, four distinct platform types have emerged. Agile companies that adjust their operating models to include one or more of these tools stand to gain by retaining the loyalty of their existing customer base and attracting prospects looking for more tailored, differentiated service experiences.

The Differences Between Feedback From Paying Customers vs. Free Users

Customers – the people who pay to use your product – should be central to everything you do. It sounds simple, but when you have free users in addition to paying customers (like us), things get a bit trickier.

Managing New User Satisfaction On A Daily Basis

Brad Feld discusses a very simple operant conditioning loop framework for increasing conversion which uses a binary measurement for each new user – they are either healthy or unhealthy.

Editor’s Note: This is a short read that more or less echoes the ideas found in a detailed article by Myk Pono.

A Simple Framework for Handling Customer Feedback

David Cancel of Drift explains how to categorize the feedback that you’re getting, then how to take action and measure the results.

Designing Your Product’s Continuous Feedback Loop

While every product team I’ve worked with leverages customer feedback to inform product decisions in some way, most fall short of designing their customer feedback loop to maximize the benefits to the product team of gathering, recording, and synthesizing feedback. They also often treat customer feedback as a point-in-time activity as opposed to a far more helpful continuous process. I wanted to share some of … [ Read more ]

The Myth of the Coveted Loyal Shopper

Bottom Line: When it comes to consumer goods, infrequent purchasers, not faithful customers, seem to drive market-share growth.

The 30 Things Customers Really Value

Breakthroughs may be worth pursuing, but most companies benefit more from incremental innovation efforts that add new forms of consumer value to their present products and services. The trick is to determine what elements to add in order to boost the perceived value of your offering. You don’t want to expend resources adding features that consumers don’t care about. While what constitutes “value” can be … [ Read more ]

What It Takes to Deliver Breakthrough Customer Experiences

To create distinctive customer experiences, large companies need to push the boundaries and adopt next-generation digital thinking and practices in seven key areas.

Customer Psychology Frameworks

One of the first rules in making your business successful is to know your target audience or, to be more specific, who your customers are. Therefore, it is imperative that businesses should look closer at their customers: who they are, what they want, what motivates them, what drives their decisions… basically, businesses should have a clear idea what makes their customers tick.

When we speak of … [ Read more ]

Putting the Naysayers in the Spotlight

Early adopters get most of the attention from analysts and marketers, but focusing on consumers who are resistant to innovations is another way to bring new products to market.

The Unexpected Benefits of Product Returns

Product returns are typically seen as a necessary headache and a cost drain. But companies can use their return policies to enhance customer loyalty and increase profits. Research by J. Andrew Petersen of the University of North Carolina at Chapel Hill and V. Kumar of Georgia State University.

8 Customer Discovery Questions to Validate Product Market Fit for Your Startup

During a typical customer research process, we will interview customers and might ask them questions like these. All of these questions are customer and product discovery questions, almost identical to the ones product managers use to understand if the company has unlocked product-market fit. In addition, these interviews surface insights about marketing positioning and true perception in the market; customer support effectiveness; overselling; and product … [ Read more ]

Thriving with the Crowd: Marketing with (and against) the New Influence Peddlers

Moving at the speed of the crowd has become mandatory for any company that is on the Web (which is just about every company). These companies must understand how influence gets peddled in the marketplace today (and constantly refresh their understanding) – and they must constantly reevaluate how customers are influenced and what the appropriate response should be. Readers will learn what the responses should … [ Read more ]

How to Deliver Superior Customer Service

Customer service is a crucial part of your business, and one that deserves your attention and your money—you are trying to build a life-long customer relationship. Here are four focus areas to help you achieve your customer service goals.

Energetic, Enthusiastic and Creative

Companies have learned a sobering truth during the past decade or so: Building a truly customer-centric culture and organization is never primarily a top-down affair, to be implemented solely with the levers of conventional management. It is always a bottom-up process, with people throughout the organization actively developing and supporting the company’s culture. Employees need to see the fundamental connection between the work they do … [ Read more ]

The Benefits of a Competitive Benchmark Net Promoter Score℠

High Net Promoter Scores are certainly better than low ones. They indicate that a company has earned more promoters than detractors. But how do we interpret the scores these companies are reporting? What is a good score? How should we set goals and targets for improvement?

To begin, we should make sure we look at the right sort of Net Promoter Score. Seasoned practitioners of the … [ Read more ]

Focus on the Customer

Companies that seek to be the best at something may have to be only average at everything else.

Five Key Metrics You Need to Create a Customer-Centric Company

To ensure the customer-centric vision takes root, you need to establish clear metrics that are linked to the company’s strategic, operational, and financial goals. Those metrics will help with determining priorities and shifting the orientation of the company toward a more customer-centered business model. Ideally, the marketing team will work with the executive team to establish the metrics.

Once the metrics are selected, it is a … [ Read more ]