Which of these two things would you say is important: product or customer?
A few days ago, one of our followers asked us the above question on Twitter. This question got me thinking about sharing my thoughts in a brief post.
@mauconline trick question, Mauco, what’s more important: product or customer?
— Derric Haynie ?? (@SixPeppers) April 7, 2017
Customer experience versus product: what should you invest in to get the most bang for your buck? Let’s examine product-centric vs customer-centric approaches in detail and determine how they contribute individually to the business growth.
Product-driven Marketing vs Customer-driven Marketing
Product-driven marketing centres communications around items purchased, their availability, and their usability. Customer-driven marketing is using data-driven customer- segments to determine the most effective communication. Product-driven marketing is all about selling something. Customer-driven marketing is all about talking to your customers and getting their feedback on your product. The two styles of marketing are very different and should be approached differently.
Product-driven marketing is about what you offer. It’s about the direct connection with your audience. It’s easier to measure and track than customer-driven marketing, but it’s not necessarily the best approach for every business. Product-driven marketing is the bread and butter of most successful companies. It offers a better chance of pleasing a customer in the short term and boosting conversion rates than customer-driven marketing.
Product-Driven marketing (PDM) is the current marketing paradigm. Customers pay attention to a business only when they have a specific need. Product-Driven companies create products and services which appeal specifically to these customers. In contrast, customer-driven marketing (CDM) emphasises serving all customers and creating an eco-system of products and services that appeal to customers regardless of their specific needs.
It doesn’t mean that companies should stop concentrating on high-quality products. Instead, they should pay more attention to this new battleground and start combining high-quality products with equally high-quality customer experiences.Companies are no longer just selling products to customers they used to be but also approaching customers as individuals. Click To Tweet
According to a 15,000 international respondents survey, 42% of customers said they would pay extra for a pleasant and friendly experience, while 52% would pay more for faster service and efficient customer experience.
According to this article, poor customer service forces your clients to go to your competitors focused on customer satisfaction and treat the customer like a king.
Product-driven marketing is based on what the product is and how it would help the customer. Customer-driven marketing focuses on what you need to bring to the table and how you can help the customer solve their problem or solve their problem with a product. Product-Driven marketing and customer-driven marketing may sound like competing approaches to find success in the marketplace. They’re not. They go hand-in-hand. If the goal is to attract customers and keep them, success must be tied to the product.
Product-driven marketing is to market a product to its market, and customer-driven marketing is to market a product to its consumer. Both are important, but in different ways.
Product-driven companies are always on the lookout for the next big idea, even if it comes early in the product’s development. They focus on driving the customer value even before figuring out how to make the product desirable to existing customers. These are the companies who design their campaigns around the needs of existing customers rather than pleasing themselves with new and exciting ideas. Customer-driven companies set their ads and campaigns with an eye toward attracting new customers rather than retaining customers who have left their previous product.
Customer-driven marketing is a way to know and understand your customer, their needs, desires and problems. Product-driven marketing is a way to create a product that will solve their problem. Customer-driven marketing versus product-driven marketing is a topic of heated debate in e-commerce today. Customer-driven marketing seeks consumer engagement, while product-driven marketing seeks product sales and acquisition.
Customer-driven marketing is the best way to market a product in the modern world. It is more impactful, creative, and relevant to the customer than any other form of marketing. Customer-driven marketing is the most common form of digital marketing today. This idea works by identifying your customer authentically by contacting them and utilising your product (or service) to improve their lives and your business benefits.Poor customer service forces your clients to go to your competitors focused on customer satisfaction and treat the customer like a king. Click To Tweet
At Mauco Enterprises, customer-driven marketing (CDM) is our preferred method for growing a company. We favour this approach because it’s based on identifying what customers want and then building products that fulfil those needs. Customer-driven marketing (CDM) is a term used to describe the basis of an effective and customer-centric marketing strategy. Through small, focused efforts, businesses can build and enhance customer loyalty while providing quality products and services. In addition, improving the overall customer experience can lead to incremental revenue growth.
Customer-driven marketing is a powerful force in the world of retail. Any company that wants to sell products and services to people who want them will consider how their customers perceive them. There is no substitute for customer-centric marketing in organisations. Though many businesses associate customer-centric marketing with big box stores, small independent shops, coffee shops, restaurants and any other company that relies on continual sales, in reality, it applies to almost any industry.
Customer-driven marketing is a newer term that describes how businesses seek customers based on their specific needs. Companies are no longer just selling products to customers they used to be but also approaching customers as individuals. This shift has occurred because the customer no longer needs the brand, but the customer needs the product. Customer-driven Marketing (CDM) is an effective way to grow your own business by getting results from your current customers. By this, we mean tapping into what’s in you, your desires, goals, and desires of your existing customers.
Customer-driven marketing (CDM) is a modern term describing a relatively new marketing approach to building a brand and products. Rather than solely focusing on delivering products to customers, CDM focuses on building relationships with these customers and turning them into loyal advocates for your brand.
Customer-driven marketing deals with getting the customer to know you, promote your brand, and tell their friends about you. It differs from product-driven marketing. Most companies think product-driven marketing, which focuses on marketing the product, is the answer. But customer-driven marketing thinks about the customer, how they use your resources, where they go for help, and how they feel about your products.
Improvement begins with understanding what your customer wants, and your product is giving them–whether it be information or coverage or service. Customer-Driven Marketing (CDM) is a more encompassing term for a multi-channel approach that emphasises optimising how you serve your customers. Not every company can or will adjust its sales or marketing strategies to be purely customer-oriented. But by highlighting the benefits of your products, services or information you provide, you are increasing customer loyalty and retaining repeat customers.How you can provide quality customer service: Product-driven marketing is based on what the product is and how it would help the customer. Click To Tweet
Three Things to Consider
First, it is normal for companies to put the bulk of their resources into improving their product.
But we realise that things have changed a lot in recent times because of globalisation and the internet.
Before, it was possible that if you had the monopoly of a particular product in the market, consumers would have no alternative but to buy from you.
But today, the internet has helped to shift power from the producers to the consumers. The consumer now can search for alternative products on Google, etc., and buy online.
So the customer is no longer shackled to one producer. This freedom of the customer is one reason I say that the customer is more important than the product.
Second, let us also look at it another way. Say you have produced a particular product for some time now in a single colour, e.g. orange.
And business has gone great for you over the years selling your orange product. But what if you get a sizeable number of inquiries for your product in the colour purple!
Would you stick to your guns and try to convince your customer about the virtues of your orange product? What if your customer doesn’t fall for your sales antics but insists on purple? Worse yet, what if your customer goes to your competitor?! Would you say then that power lies with you or with your customers?
Third, without your customers, you can’t be in business. With the aid of social media marketing, it is now possible to find an online “community” for your product before manufacture!
This reason is why I tell business owners to use social listening to get to know what their online community is saying about their product, service or brand and not using social media to blast posts about their brand.
So how can business owners use social listening? It’s by creating buyer personas based on their existing or potential customers. Build a strategy from that by listening to what persons fitting these buyer personas are saying about your brand or industry on selected social networks.In the past, it was possible that if you had the monopoly of a particular product in the market, consumers would have no alternative than to buy from you. Click To Tweet
Want to learn more about how to grow your business? Schedule a consultation. I’ll be glad to help.
Now over to you!… If someone asks you what’s more important: product or customer? Which would you pick, and why? I’d love to know what you think. Please share your thoughts with me on Twitter @ademolaabimbola or @mauconline.
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