Shifting to customer relationship brand management

 Many marketers (and their advertising agencies) still cling to mass communication as the foundation or backbone of their brand building efforts. In the new era of big data and powerful technologies for connecting with customers, marketers must shift their focus from building brands to building customer relationships.

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Never before have marketers had such powerful technologies at their disposal to connect and build lasting customer relationships. And never before have customers / consumers / users been able to interact so deeply with brands, and each other in their communities, to influence the very development of the products and services they engage with. Yet despite this sea change, most marketing organizations are structured pretty much the same as they have always been. Many have not fully grasped the paradigm shift from building brands to building customer relationships. This may explain the short job resistance of most CMOs.

To succeed in the interactive digital age of Big Data and transformative technology, marketers much shift their focus from counting transactions to maximizing the lifetime value of their customers. This means profitability of brands will be less important than the profitability of customers.

Planting Seeds And Harvesting Customer Relationships

What separates an old-school marketing organization from a customer-driven organization is one is organized around activities that sell brands, while the other is designed around activities that serve customers and customer segments. In these transformed marketing organizations, marketing communications is nearly a real-time dialogue, hyper-targeted to thinner slices of customer segmentation. Enlightened marketers have unimaginable access (from abundant sources) to rich customer data, enabling them to be more deliberate and proactive in their tactics for making a customer driven strategy pay off.

Most marketing organizations are still organized around the principle of selling rather than serving.

Serving customers in highly relevant ways requires you to know them and their behavior essentially on a personal level. Competitive advantage is not about features and functions in ever-cheaper products, rather it will be based in serving customers in ways that are unexpected and highly valued. Customer driven marketing organizations are structured to engage narrow segments with two-way communications designed to build trusted relationships through products or services that customer’s will value most at any given time. The customer is at the center of the universe with brands organized around them rather than the conventional model of customers organized around the brand. NPS,  a  very used brand equity indicator is based on measuring relationship quality and customer satisfaction level.

Categories: Branding and Rebranding, Oppinions- Branding Expert

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2 comments

  1. Nice blog Raluca! It's great to see someone on a similar journey......

    1. Thank you dear Simon, well then keep in touch and never know maybe we can make the travel a sharing experience :)

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