Today’s marketing is mainly about makings choices. One of the reasons for this is the rise of digital marketing, which not only increases the visibility of the offer, but also the options for comparison. “For this reason, it is more important than ever to not only distinguish yourself with your product or service, but also with how the consumer first gets acquainted: Start with your marketing.
Philip Kotler, a professor of international marketing and founder of the modern marketing once said:
Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating genuine customer value
The difference between traditional and modern marketing is the switch between product-centric and consumer-centric marketing. In comparison to traditional marketing, modern marketing focuses on the interests and needs of the consumer and not on the product alone, resulting in added value for the consumer. The question is however, how can an organization create genuine customer value with marketing?
In the drive to acquire and retain customers, increase brand awareness, and differentiate one’s place in the marketplace, marketing can create value for consumers in three areas: engagement, experience and exchange.
Offering Value by Engagement Marketing
Engagement marketing is about creating meaningful interactions with people, based on who they are and what they do, continuously over time. This form of marketing ensures the broadening of brand meaning and the strengthening of customer relations and thereby facilitating expansion. Engagement marketing creates value for the customer through building purpose and communities, making connections and designing stories.
Examples of engagement marketing:
• Maintaining an informative blog where you address the questions and problems that potential customers have.
• Offering customer support via social media. Personal, fast and therefore ideal for consumers.
• Using influencer marketing, by linking the product or service to an influencer or image, you create a certain community or a lifestyle that people like to be a part of.
Offering Value by Experience Marketing
Experience marketing directly activates consumers and invites and encourages them to participate in a branded off- or online experience. Its importance lies in its ability to stimulate an emotional connection and reinforce the essence of the brand. Experience value increases the convenience and enjoyment of consumers throughout the customer journey and can therefore also facilitate retention.
Examples of experience marketing:
• Organize a live event where the event provides consumers with a real-world opportunity to directly engage with a brand or product
• Run a contest where customers are challenged to do something creative with their purchase and share it on social media.
• Create a game or escape room on your website before the customer can purchase their product or service
Offering Value by Exchange Marketing
Exchange is the act of obtaining a desired object from someone by offering something in return. Exchange marketing is maximizing the exchange value, most of the times in terms of money, by tailoring the offer to the individual needs and context of the customer. This type of marketing facilitates transactions, boosts conversion and increases personalization.
Examples of exchange marketing:
• Sending an email with recommended products or personalised offers, based on previous purchases and the identified interests, problems and needs
• Tracking the location and environmental factors to offer what the consumer needs at that moment. (Offering an umbrella when it rains)
• Offering products and services based on trend forecasting
Advantages of Customer-Centric Marketing for the Organization
Switching between product-centric marketing and customer-centric marketing creates not only value for consumers but also for the organization itself. Apart from directly generating more revenue through marketing by attracting and retaining consumers, marketing can also indirectly provide more value to the organization. The organization can use data to generate more knowledge and insights from the market. With this knowledge and insights, they can better respond to the needs of the market and therefore further optimize their offerings through marketing. Besides, the insights in the market make it easier to discover new opportunities and business models, allowing the organisation to optimise not only their marketing but also their strategy and businessmodel. Furthermore, the genuine value for customers can create a competitive advantage for the organization.
Are you curious about how customer-centric marketing can widen your knowledge and insights into your customers and market and therefore improve your organization? Do not hesitate to contact us!