Technology has empowered customers in such a way that they are now in charge of the business relationship – a fact that’s left many businesses playing catch-up. Companies and supply chains that fail to realise this risk losing customers if they fail to respond to their needs.

These are some of the insights raised by the Institute of Marketing Management’s Mark Peters, who delivered a presentation based on IBM’s Global Chief Marketing Officer (CMO) Study at the recent SAPICS annual conference*.

“Staying close enough to customers to be able to respond to their needs is critical to the success of any supply chain. After all, what good is a supply chain if it doesn’t get the product customers want to them, when they want it and the way in which they want it?” he asks.

“The problem is that most marketing professionals are paying more attention to markets than individuals. It’s no wonder then that some companies are slow in catching on to shifts in demand for certain products in geographic areas – with all of its inventory implications – as well as changing preferences in how customers choose to shop, e.g. placing online orders.”

He says companies that fail, for example, to respond to customer demands for faster delivery of goods may risk losing even formerly brand-loyal customers. “That’s the extent of the fickleness amongst today’s customers. They want what they want – and they want it now!”

Missing the personal touch

Today’s most effective CMOs focus on getting to know customers, not just their markets. Peters says this is what they do well: “They mine new digital information sources and they use customer analytics to turn this data into insights upon which their organisations can act.”

IBM’s CMO Study shows that customer analytics, competitor benchmarking and market research are relied on most heavily by CMOs. “However, sources that could deliver great individual customer insights, such as customer service feedback, blogs, online communications, retail and shopper analysis, appear to be drawn on less,” he adds.

According to Peters, the major challenge facing marketers isn’t the amount of data that is available – CMOs are great at commissioning mountains of the stuff – but he says: “Interpreting the data and making business decisions based on the insights is the real trick.”

This means CMOs must develop skills that enable them to comfortably integrate IT and marketing information so that when customer needs start changing, they’ll see it first.

Recommendations:

Peters recommends that marketers focus on the opportunity to create value for customers as individuals. “Just like the radio has an audience of one, each customer has an individual experience with a product and the company that supplies it.”

However, with the social media revolution, these days the customer’s individual experience very quickly becomes publically shared via social networks.

“That’s why it’s so important that marketers reprioritise their investments to analyse digital channels such as blogs, tweets, social networks and peer reviews to access consumers’ honest, unmediated views, values and expectations.” As Peters points out, one opinion that’s voiced may represent thousands. The same single voice may also influence thousands more.

Peters also suggests using advanced analytics to recognise preferences, trends and patterns across every touch point. The information is out there; it’s all about getting it to work for you.

“Proactive CMOs forge customer relationships that continue after sale and they fortify these bonds by creating a corporate character that manifests itself in everything their employees do and say – and especially how the supply chain responds to their demands,” he concludes.

SAPICS is now accepting proposals for presentations to be delivered at its 2014 conference. For more information visit www.sapics.co.za