Topic Images Inc./Getty Images If your customer retention strategy relies on “buying” loyalty with rewards, rebates, or discounts, it is coming at a high cost. And these days, it could also mean that you’re giving up something priceless: your relevance. That’s because the “loyalty era” of marketing, as we’ve known it, is waning. It was built in part on the notion that consumers will keep buying the same things from you if you have the right incentives. Yet, according to recent consumer research from Kantar Retail, 71% of consumers now claim that loyalty incentive-programs don’t make them loyal at all. Instead, in this new era of digital-based competition and customer control, people are increasingly buying because of a brand’s relevance to their needs in the moment. In fact, consumer research we’ve worked on at Accenture shows that in the U.S. market alone, companies are losing $1 trillion in annual revenues to their competitors because they are not consistently relevant enough. Loyalty remains important, but this finding indicates that the future of marketing — and, in the big picture, many businesses — depends on serving a customer’s most relevant needs in the moment. In this way, companies need to become like more like living businesses, building and sustaining symbiotic ties with their customers as if those relationships are with a concierge, butler, or friend. A New Definition of Relevance To become this kind of living business, with a new understanding of customer needs, we need a new definition of relevance. Abraham Maslow’s oft-quoted “hierarchy of needs” — first published in 1943 — provides a good start. Maslow sought to map the psychological needs of humans and their motivations. But his framework also offers a model for rethinking the traditional four P’s of marketing: product, price, place, and promotion. Most companies today are guided by these four facets of engagement. The problem, however, is that brands using the four P’s exclusively often target a static customer archetype (e.g., a high-minded customer for an organic supermarket or a value-conscious customer for a discount chain). The reality is that there is no such archetypical customer. Everyone’s needs vary depending on time and context. And with today’s technologies, companies now have the ability to see and act on these fluctuations in the moment. Customers are increasingly expecting all companies to do just that, both in their marketing efforts and in the experiences they offer. To become a living business, companies should expand their thinking to include the following five P’s as well: purpose, pride, partnership, protection, and personalization. These form a simple and comprehensive test of relevance. The first four extend from the top to the bottom of the psychological hierarchy—from what Maslow called “self-actualization” or fulfilling your full potential, to safety, a more basic need. The fifth, personalization, enables companies to connect with customers around any of these needs. Purpose: Customers feel the company shares and advances their values. Pride: Customers feel proud and inspired to use the company’s products and services. Partnership: Customers feel the company relates to and works well with them. Protection: Customers feel secure when doing business with the company. Personalization: Customers feel their experiences with the company are continuously tailored to their needs and priorities. Soul Cycle provides a good example of what the five P’s look like in practice. By creating a community for indoor cyclers and fitness buffs, SoulCycle’s purpose aligns with customers’ values of health and a positive environment. This experience creates a sense of pride for customers who want to participate in a high-end cycling experience (given the pricing and the tendency for instructors to be young and fit). Customers also feel that SoulCycle is a partnership in the lifestyle they wish to achieve: They feel like they are treating themselves with new, clean facilities, upscale bathroom products, and custom SoulCycle playlists on Spotify. SoulCycle customers also feel protection in their purchase — which is expensive for a 45-minute fitness class compared to the cost of a traditional gym — because they are confident that the staff will help them with their needs and also will help them to make the most of each class. Finally, the SoulCycle experience becomes totally relevant when a customer has an instructor that personally inspires them, thus creating personalization. Many companies will be challenged to satisfy all five P’s at once. The following three principles, however, should help them in their efforts to connect with customers on these fronts: Go outside your comfort zone Many companies have been using the traditional four P’s for decades, and many of those with great success. Often, this means companies will need to extend outside of their comfort zones to position their brands these new, expanded ways. Consider Yoplait, the global yogurt brand owned by food giant General Mills. Consumers typically associate big food companies with mass-production methods and plastic packaging. Companies like these are more typically accustomed to using traditional 4 P’s approaches such as pricing and promotions to attract and retain customers. But Yoplait recently found itself contending with an influx of newer brands, including the Greek yogurt brand, Chobani, that emphasize and compete on meaningful connections to authentic food traditions. In response, Yoplait pivoted toward a focus on customer relevance. Yoplait found that consumers often take pride in using products with a connection to an authentic national tradition – whether Italian olive oil, or Greek and Icelandic yogurt. Recognizing that its long history of making French yogurt could be turned into a market advantage, it embraced a traditional French method in which yogurt is cultured and sold in small individual glass pots. As a yogurt executive at General Mills noted, “The simplicity of this idea, that this is a French method, coming from a French brand, with a French name — that’s authenticity.” It is also something both Yoplait and its customers can take pride in. The company is, at the same time, enhancing its relevance to customers in other ways. For example, it also recognized customers’ desire to feel protected. Their new “Oui” French yogurt product is all-natural, non-GMO, and promotes its very simple ingredient list. It’s still too early to tell whether this targeted initiative will translate into increased sales. Nonetheless, it is a noteworthy example of a company purposefully pivoting to an approach that extends beyond its norms to be relevant to customers. CVS Pharmacy, the retail pharmacy of CVS Health, offers another example. CVS Pharmacy is moving beyond a purely transactional retail model where customers fill prescriptions; instead, the company is focusing on helping their customers on their path to overall better health. In this way, customers share the company’s purpose. It also helps satisfy their desires to feel cared for, and helps build upon the trusted relationship most customers have with their pharmacist – an example of what we’ve termed protection. Extending far outside the traditional retail paradigm, CVS is embracing technologies including predictive analytics, artificial intelligence, and machine learning to send their customers personalized reminders to refill or take their medications, in the spirit of partnership. And, the company has teamed with AI giant IBM Watson to anticipate patient needs, including when they might require more urgent care. These new avenues and practices will enhance the value for customers in maintaining an active engagement with a pharmacy retailer—and make the CVS brand more relevant in the moment through protecting their health and well-being. Timing is everything If the first four P’s are additive, the final one — personalization — is multiplicative. A key component of becoming a living business is conveying exactly the right message, experience, or offer to customers in exactly the right context. It’s a level of personalization that few companies ever attain. Car-rental giant Hertz has worked to develop a “Just in Time” approach to delivering highly relevant offers at the exact moment when the customer is evaluating deals across the channels they prefer, whether it is through call-center agents, counter terminals, handheld devices, or the Hertz web site. Using predictive analytics, Hertz suggests deals based a customer’s propensity to accept certain offers over others. For example, a customer who would be qualified for a buy-one-get-one-free deal might still receive a different (perhaps even less profitable) offer if she passed up similar offers in the past. The company understands that a promotion can only be as profitable as a customer’s willingness to take it — and an unwilling customer is a lost opportunity. That’s why offers are calibrated to a customer’s behavior in a way that all marketing channels can simultaneously use. Don’t be loyal to the status quo To succeed in this era of relevance, marketers and companies must be continuously willing to abandon the old. As new technologies shift customer journeys and expectations, they can (and should) also enhance companies’ abilities to engage with customers in the most relevant ways. Often, the greatest roadblock is a company’s lack of willingness to transform their processes, organizations, and mindsets as needed. To overcome that barrier, some companies have shifted from a product-focused mindset to a platform approach. Under Armour, Inc. offers a good example. Instead of thinking of itself merely as a sports apparel manufacturer, the company has purposefully developed a “connected fitness” ecosystem. In 2015, in fact, it spent more than $500 million to acquire two popular fitness-metrics services in a bid to become the world’s largest tracker of fitness information. The two services — one based in the United States and the other in Europe — had a combined 100 million subscribers when they were acquired. Under Armour intends to enable these platforms to grow independently, while reaping aggregated data that can inform and expand its apparel designs. Ultimately, the goal is to link customers to new services such as innovative start-ups that are developing embedded sensors and biometric readers for apparel. In the words of CEO Kevin Plank, “Brands that do not evolve and offer the consumer something more than a product will be hard-pressed to compete.” Similarly, automaker BMW has embraced partnerships across a broader ecosystem to help its customers navigate their urban environment, with or without their car. Customers can now see their engagement with the brand as an ongoing relationship, rather than a one-and-done purchase. To provide its customers a seamless transportation experience, the automaker links them into a broader of ecosystem of car-share and rental companies, parking aids, electronic-vehicle charging stations, and location-based mobile lifestyle apps. Today’s mobile-enabled consumers are constantly evaluating and re-evaluating their purchasing decisions. They will choose the brands most relevant to them at an increasingly rapid pace. And they’ll pay a premium. Living businesses — those that achieve this profound degree of relevance — will have pricing power and will drive repeat purchases. Those are the ultimate goals of loyalty, now newly attainable, when relevance matters more than ever.
The Zacks Analyst Blog Highlights: BancFirst, Health Insurance, EOG, Wynn and American Airlines
President Trump accuses China of malpractice in relation to intellectual property theft from American businesses and threatens to impose tariffs; China may retaliate.
€8.950 (covers 50% of the tuition fee)До 1 апреляTotal number of scholarship: 2 each scholarship worth €8.950 (covers 50% of the tuition fee)eligible programmes: Hotel and Event ManagementInternational Tourism ManagementInternational Business ManagementRequirements High School diplomaTOEFL iBT (Min. 80), IELTS (Min.6.0)Hotel and Event Management Welcome to the world of top hotels, star restaurants, festivals and sports events. The hospitality sector is looking for you! After completing the Hotel and Event Management bachelor’s degree, you will be able to create the perfect experience for your guests, even online. You will turn any stay and event into a success. International Tourism Management Dubai, Botswana, New York, Venice; the whole world is at your feet. The travel industry is looking for you! After completing the International Tourism Management bachelor’s degree, you will sell the world online and offline. You design trips, purchase at sharp rates and establish contacts all over the world. International Business Management A glorious future: you close a deal with an American organisation and research the possibilities of doing business in Asia. The business world is looking for you! After completing the International Business Management bachelor’s degree, you will excel at establishing international contacts and creating your own opportunities. This study course brings you one step closer to international success.
Retail giant Walmart has entered into a business deal with a Colorado-based cannabis company. But what does it mean?
Financial and energy-oriented stocks have historically performed better this warmer season, while travel and leisure also tend to do well
Top-ranked bank ETFs could be useful investments if the Fed hikes rates.
**Should-Read**: This makes no sense at all. There is nothing in the formal or informal record suggesting that any of the potential deciders and influencers inside the Trump Administration support the steel and aluminum tariffs as some kind of Xanatos Gambit to persuade China to adopt intellectual property rules more to the liking of U.S. firms doing business in China. Absolutely nothing: **Martin Feldstein**: [The Real Reason for Trump’s Steel and Aluminum Tariffs](https://www.project-syndicate.org/commentary/trump-steel-tariffs-targeting-china-by-martin-feldstein-2018-03): "The US tariffs will... increase the likelihood that China will accelerate the reduction in subsidized excess capacity... >...It will be possible to exempt imports from military allies in NATO, as well as Japan and South Korea, focusing the tariffs on China.... The administration has not yet said that it will focus the tariffs in this way.... >For the US, the most important trade issue with China concerns technology transfers, not Chinese exports... The Chinese government was using the Peoples Liberation Army’s (PLA) sophisticated cyber skills to infiltrate American companies and steal technology.... President Barack Obama and President Xi Jinping met in California in June 2013.... Xi then agreed that the Chinese government would no longer use the PLA or other government agencies to steal US technology.... It...
President Vladimir Putin is on track to become Russia's longest-serving leader since Joseph Stalin. As Putin seeks re-election in the upcoming vote, what is the state of Russia's economy? And how will ordinary Russians fare if Putin stays in power? There's been a rise in living standards over Putin's 18 years in office, and despite Western sanctions and volatile oil prices, Russia's economy is still growing. Timothy Ash, a senior emerging markets strategist at Bluebay Asset Management, says the last couple of years have been difficult but "it [Putin's economic politics] has worked in some respects, it's created financial stable exchange rates, inflation has dropped. The problem is... growth has been very weak and disappointing." "Fiscal and monetary policies have been too tight and too aggressive because of concerns about the geopolitical challenges facing Russia. Putin's also held back from structural reforms - the Russian economy is in dire need of deep structural reforms - things like business environment, fighting corruption, demographic issues, so these things haven't been addressed. It's been a cautious micro and macro [economic] policy," says Ash. Ash says the real question is "whether or not Putin is interested in a more ambitious economic reform agenda... Russia is still an oil economy, and beyond agriculture not much focus has brought diversification or investments. In the end, Russia is still struggling in terms of attracting foreign direct investments and that relates to the idea of the business environment: property rights, rule of law, the geopolitical relationship with the West. And if you're a big motor manufacturing company, do you feel secure building physical assets in Russia at the moment when the relationship with the US and Europe is so difficult? Probably not." While Putin has improved the living standards of ordinary Russians, "the last three to four years have been difficult because stagnation has been the order of the day", says Ash. "While Putin himself is popular...if you look at ordinary Russians, they're not very happy because stagnation doesn't go down very well. There is job security but living standards have taken a fairly significant hit and a lot of young liberal Russians are leaving... Russia needs those kinds of people to bring up productivity improvements and raise that growth potential of the Russian economy." "Russia faces a real demographic time bomb, it's a declining population over the longer term, Russia needs to find young dynamic people from somewhere," says Ash. Also on this episode of Counting the Cost: Saudi Aramco IPO: When Saudi Arabia said it was going to sell five percent of its state energy giant Saudi Aramco to public investors, top stock exchanges sat up and took notice. The flotation was tipped to happen this year, but now, Saudi Aramco says it needs to review its options for the listing. Paul Stevens, a Fellow at Chatham House, discusses transparency and foreign investment in Saudi Arabia. Toys R Us: World famous brand Toys R Us has announced it will sell or close hundreds of its stores in the US and at least 30,000 jobs will go. The 70-year-old retailer helped shape the toy industry for decades but has faced stiff competition in recent times from online businesses, as Gabriel Elizondo reports. Zimbabwe economy: Zimbabwe's business community is calling for international sanctions to be removed to help improve the ailing economy. President Emmerson Mnangagwa wants to attract more foreign investors but many are cautious about doing business with Zimbabwe, as Haru Mutasa reports from Bulawayo. Mexico fashion designs: Mexico is famous for its highly patterned, ornate, indigenous clothing, and the fashion world has taken notice. Major brands and designers have been selling clothing inspired by traditional Mexican designs. But the communities where those designs originate say they often do not see the benefits, as John Holman reports from Mexico City. More from Counting the Cost on: YouTube - http://aje.io/countingthecostYT Website - http://aljazeera.com/countingthecost/ - Subscribe to our channel: http://aje.io/AJSubscribe - Follow us on Twitter: https://twitter.com/AJEnglish - Find us on Facebook: https://www.facebook.com/aljazeera - Check our website: https://www.aljazeera.com/
Red line on finances? Who said anything about a red line?
Hong Kong presents itself as one of the world’s easiest places to do business—allowing registration with minimal documentation in as little as a day—and U.N. and U.S. investigators say North Korean front companies are taking advantage.
People with these careers are most likely to be cheaters, according to a new study.
Zacks Industry Outlook Highlights: PPG Industries, Celanese and Eastman Chemical
The Zacks Analyst Blog Highlights: BCB Bancorp, CB Financial Services, Triumph Bancorp and United Community Banks
The Zacks Analyst Blog Highlights: BCB Bancorp, CB Financial Services, Triumph Bancorp and United Community Banks
Главная цель — улучшение делового климата в стране.
Главная цель — улучшение делового климата в стране.
«Коммнсантъ»: «Пенсии растерялись на переходе». Преждевременная смена фондов лишила граждан миллиардов рублей. «Частный бизнес поедет в плацкарте»: Минтранс предлагает приватизацию дальнего следования. «Программа из послания»: в ближайшее время Владимир Путин подпишет перечень поручений. «Ведомости»: «Кто инвестирует в Крым». Экономика региона пока развивается за счет федеральных вливаний, но среди инвесторов появляется и частный бизнес. «"Трансаэро" до сих пор создает проблемы "ВЭБ-Лизингу"»: компания скоро начнет получать заказанные под перевозчика 42 самолета, но не может найти им новых хозяев. «Власть усиливает давление на независимых наблюдателей»: это может быть сигналом о фальсификации явки, считают в «Голосе». РБК: «Опять каникулы». Бизнес освободят от проверок еще на четыре года. «Москве прописали пластик»: Visa подсчитала выгоду от перехода на безналичные платежи. «Партии проявили наблюдательность»: за президентскими выборами будут следит в два раза внимательнее. «Известия»: «Попасть в топ-20 Всемирного банка». Меры МЭР повысят позиции России в рейтинге Doing Business. «Самый дешевый в России автомобиль на метане появится в 2019 году»: пробег Lada Granta CNG на одной заправке составит 1050 км. «Минэкономразвития ускорит темпы продажи имущества»: и улучшит имидж приватизации с привлечением общественного контроля. «Дома и шепотом»: в Верховную Раду готовятся внести закон, запрещающий русский язык. «Путин увидел будущее»: Путин объяснил, от кого зависит успех России. The Economist: «Битва за цифровое превосходство» (The battle for digital supremacy). Технологической гегемонии США угрожает Китай. Bloomberg: «Путин тянет время, а союзники Британии требуют объяснений нападения на шпиона» (Putin Bides His Time as UK’s Allies Demand Explanation of Spy Attack). Лидеры США, Германии и Франции утверждают, что, по всем признакам, Россия ответственна за отравление двух человек в Англии, и требуют срочных объяснений от российского правительства. The Wall Street Journal: «США добавили санкций против россиян за вмешательство в выборы и хакерство» (U.S. Adds Sanctions on Russians for Vote Meddling, Hacking). Администрация президента США Дональда Трампа впервые ввела против России санкции за вмешательство в американские президентские выборы в 2016 г. The New York Times: «США молчали о своем участии в еще одном столкновении в Нигере» (U.S. Kept Silent About Its Role in Another Firefight in Niger). Спустя два месяца после того, как четверо американских солдат были убиты в западноафриканской стране, группа американского спецназа совместно с местными вооруженными силами убила 11 боевиков «Исламского государства» (террористическая организация, запрещена в РФ) в столкновении, о котором не было раньше не писали. Reuters: «Тысячи бежали во время первого массового исхода из осажденной Восточной Гуты в Сирии» (Thousands flee in first mass exodus from Syria's besieged eastern Ghouta). Тысячи сирийских мирных жителей покинули удерживаемую повстанцами территорию в Восточной Гуте. CNBC: «Трамп упрощает демократам задачу победить на выборах в конгресс» (Trump is making it easier for Democrats to win the midterms). Общественное недовольство политикой президента США Дональда Трампа может привести к тому, что на американских выборах в конгресс этой осенью демократы возьмут реванш.