Much of what I've learned over the years about sales, marketing and customer service has to do with the critical importance of customer data, and how those data are converted to actionable insights. It's how companies generate the right customer data, manage and share data the right way, and use it at the right time. It's also how they use data to the best effect, to optimize loyalty and profitability, that makes them successful, or not, on an individual customer basis. Culture, leadership, and systems will facilitate effective information gathering, storage and application; and, CRM, CEM, ERP, or other acronyms notwithstanding, it's impossible to be successful without having as much relevant anecdotal and dimensional content about customers as possible.
About 30 years ago, Paul Simon wrote a song entitled "One-Trick Pony." The song describes a performing pony that has learned only one trick, and he succeeds or fails with the audience based on how well he executes it. As Simon conveys in the lyrics: "He's got one trick to last a lifetime. It's the principal source of his revenue."
A couple of years ago, our local newspaper, The Philadelphia Inquirer, ran a disturbing story about how a mortgage loan company in Phoenix had sent spam advertising messages which appeared on the screens of thousands of wireless phone customers. Not only were the messages not requested, but these customers had to pay to retrieve them.
Stating that all customers are not created equal is hardly an oversimplification. But, just like the pigs in Orwell's "Animal Farm," some customers are more equal than others. No company has unlimited resources to equally service or support all its customers. Repeat buying power, the essence of customer loyalty, is everything. Some customers are worth a great deal, some may become more valuable over time, some may be valuable for a brief period but may be easily lured away, and some are never likely to become valuable.
We’ve all witnessed how impaired corporate or brand image can undermine both consumer trust and financial performance. Recently, Target’s CEO was relieved of his duties because of the massive customer account security breach which occurred during his watch. The poster child of negative reputation, at least in the U.S., has been British Petroleum. BP’s then-president of U.S. operations was forced from office because of some ill-conceived and dismissive language, and BP’s corporate behavior since the Gulf of Mexico oil disaster has been of little help in image recovery.
With a serving concept originally generated about four years ago, and then intensively beta-tested, Starbucks has begun rolling out its new drink and munchies menu, serving beer, wine and its version of bar food to thousands of locations. The new wrinkle, called "Starbucks Evenings," has been thoroughly designed and cascaded into key markets; and alcoholic beverages will be served only in locations where demand is expected to be—high.