Concepts like big data analytics and social media just seem like a good thing for business; more information about how customers behave and what they feel should make for better relationships and more targeted products… right?
In reality, the swarm of data can leave businesses struggling to understand their own offering. Even before they address the inevitable skills needs, companies are faced with a more fundamental question – “What do we want to say to our customers?”
For the second of our Six Word Wisdom series we’ve asked for practical business advice in six words from Professor John Fahy, an expert in marketing and strategy and widely published author whose insights draw on behavioural economics, evolutionary psychology and neuroscience.
Irish Management Institute: Summarise your message for us in six words.
“Develop a compelling customer value proposition.”
Irish Management Institute: What does this really mean?
John Fahy: In short, sustainable success comes from giving customers a compelling reason to do business with you. Exceptional organisations, both large and small, from around the world offer one of the following four forms of customer value;
Price value – the lowest prices in their product/markets
Performance value – unique functionality and features not available in competing offerings
Emotional value – offer powerful emotional benefits
Relational value – close relationships with key customers offering them tailored solutions
Irish Management Institute: Where should we go to learn more?
John Fahy: www.johnfahy.net
The pace of availability of data is unlikely to slow in the near future. However, for businesses that focus on what they are truly offering, the new information channels and their pipeline of data will be a resource…rather than a distraction.
In conversation with Eva Maguire, IMI
John Fahy currently teaches about marketing resources and capabilities and how these factors impact on organisational performance on IMI’s Diploma in Marketing Strategy with Digital Marketing, Diploma in Strategy and Innovation and MSc in Management Practice. He is Professor of Marketing at the University of Limerick in Ireland and Adjunct Professor of Marketing at the University of Adelaide, Australia.
Read the full IMI Six Word Wisdom series.