customer-initiated relationships katherine n. lemon, ph.d. boston college katherine n. lemon, ph.d....
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Customer-Initiated Relationships
Customer-Initiated Relationships
Katherine N. Lemon, Ph.D.Boston College
Katherine N. Lemon, Ph.D.Boston College
Why It’s Important to Get Your Customers
to Make the First Move
Sometimes We Can’t Catch the Customer
Sometimes We Can’t Catch the Customer
Fragm
ented M
edia
DVRs and “T
iVo”
Consu
mer
-Gen
erat
ed M
edia
When traditional methods of reaching and attracting customers fail, what can companies do?
Can they engage in activities that may influence customers to initiate contact with the firm?
When traditional methods of reaching and attracting customers fail, what can companies do?
Can they engage in activities that may influence customers to initiate contact with the firm?
Customers as Initiators: How Are They Different?Customers as Initiators: How Are They Different?
Feel more responsibleMore highly motivatedHave a stronger need for your product or
serviceMore invested in creating a successful
relationshipMore likely to use, repurchase and renewFewer privacy concerns
Feel more responsibleMore highly motivatedHave a stronger need for your product or
serviceMore invested in creating a successful
relationshipMore likely to use, repurchase and renewFewer privacy concerns
Customer Initiated Behaviors Will Influence
Customer Initiated Behaviors Will Influence
How customers think and feel Satisfaction, Commitment, Regret, Power
What they doBuying behavior, Co-production, Word of
mouth, Responses to pricing or product/service failure
How much they’re worth Customer retention, CLV, Profitability
How customers think and feel Satisfaction, Commitment, Regret, Power
What they doBuying behavior, Co-production, Word of
mouth, Responses to pricing or product/service failure
How much they’re worth Customer retention, CLV, Profitability
Example: Two US Airlines
Six Years Ago
Example: Two US Airlines
Six Years Ago
So what should we do?
How can we get customers to initiate?
How can we get customers to initiate?
How Can we get customers to try to “catch the firm?”
How Can we get customers to try to “catch the firm?”
As a firm, you want to be “attractive enough” so that a customer will seek you out
As a firm, you want to be “attractive enough” so that a customer will seek you out
How to Get Customers to “Catch the Firm”
6 Strategies
How to Get Customers to “Catch the Firm”
6 Strategies
Strategy 1Play Hard to Get
Strategy 1Play Hard to Get
Scarcity:
When demand is so much greater than supply, it increases attractiveness and consumer initiation behavior
Scarcity:
When demand is so much greater than supply, it increases attractiveness and consumer initiation behavior
Strategy 2Make it easy and useful for
consumers to take the initiative
Strategy 2Make it easy and useful for
consumers to take the initiative
Be the source of all relevant information
Let them know how to contact you
Be the source of all relevant information
Let them know how to contact you
Relevant competitive
prices
Relevant comparisons
chosenby the customer
Team owner encouragesemails from fans during game
Strategy 3Put consumers in control
Strategy 3Put consumers in control
Let them design their own products
Choose their own advertising
Customize their experiences
Let them design their own products
Choose their own advertising
Customize their experiences
Timbuk2 messenger bags:
Build your own
Choose a model:
“A Private Social Network”www.redtoucan.com
You Control Your Space
Who sees your profileWhat listings are on your siteWho participates in your community“You even pick the advertising on your pages!”
Strategy 4Deliver value through consumer
initiation
Strategy 4Deliver value through consumer
initiation
Encourage customer initiation through interactive tools
Example: ING Retirement Planning Customers provide significant inputING professionals then customize
solutions
Encourage customer initiation through interactive tools
Example: ING Retirement Planning Customers provide significant inputING professionals then customize
solutions
Strategy 5Create opportunities for
customer initiation
Strategy 5Create opportunities for
customer initiation
Communities of customers
Customer co-creation of new products
Communities of customers
Customer co-creation of new products
“Become a member now and get exclusive access to special offers, insider information, and more!”
Kids, 11-15 years,helped update package design, cereal color,and website
Strategy 6Develop consumer trust
Strategy 6Develop consumer trust
Brand perceptions become very important
Authenticity is critical
Brand perceptions become very important
Authenticity is critical
Customers Check Corporate and Brand Ethics
Customers Check Corporate and Brand Ethics
“Swipe ’n Gripe 3000”Corporate Fallout Detector
http://www.jamespatten.com/cfd/
Six StrategiesSix Strategies
1. Play Hard to Get2. Make it Easy and Useful for Customers
to Take the Initiative3. Put Customers in Control4. Deliver Value through Customer
Initiation5. Create Opportunities for Customer
Initiation6. Develop Consumer Trust
1. Play Hard to Get2. Make it Easy and Useful for Customers
to Take the Initiative3. Put Customers in Control4. Deliver Value through Customer
Initiation5. Create Opportunities for Customer
Initiation6. Develop Consumer Trust
What to Measure?What to Measure?
What percent of all communication is customer initiated?
How many unsolicited contacts do you receive from customers?
How often do customers offer suggestions?
How often do they spread word of mouth?
What percent of all communication is customer initiated?
How many unsolicited contacts do you receive from customers?
How often do customers offer suggestions?
How often do they spread word of mouth?
Source: Pete Blackshaw, Nielsen BuzzMetrics, from www.clickz.com (7/26/05)
A Final Note: PrivacyA Final Note: Privacy
Customer initiation behaviors reduce privacy concerns
Customer initiated communication may reduce risk of identity theft
Consumers can be proactive in choosing and managing their interactions with companies
Companies begin to engage with customers “on the customers’ terms”
Customer initiation behaviors reduce privacy concerns
Customer initiated communication may reduce risk of identity theft
Consumers can be proactive in choosing and managing their interactions with companies
Companies begin to engage with customers “on the customers’ terms”
When Customers InitiateWhen Customers Initiate
Customers catch the firm!Customers catch the firm!
How Can You Initiate?How Can You Initiate?
Contact Dr. Lemon ([email protected])
Join a brand community (for a brand you care about)
Comment on “customer engagement” blogs
Create your own “customer initiation” community
Contact Dr. Lemon ([email protected])
Join a brand community (for a brand you care about)
Comment on “customer engagement” blogs
Create your own “customer initiation” community