Tag Archives: customer satisfaction

Why Many Shoppers Like Small Firms

21 Apr

Although this is the era of huge retailers, many shoppers still like patronizing small companies — even though large firms account for most retail sales revenues.

As reported by eMarketer:

“U.S. consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.”

How much do YOU patronize small firms? Why?

US consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.
Read more at http://www.emarketer.com/Article/Consumers-Favor-Small-Businesses-of-Their-Customer-Focus/1010771#EboWWPlBKfOoduRI.99
US consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.
Read more at http://www.emarketer.com/Article/Consumers-Favor-Small-Businesses-of-Their-Customer-Focus/1010771#EboWWPlBKfOoduRI.99
US consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.
Read more at http://www.emarketer.com/Article/Consumers-Favor-Small-Businesses-of-Their-Customer-Focus/1010771#EboWWPlBKfOoduRI.99
US consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.
Read more at http://www.emarketer.com/Article/Consumers-Favor-Small-Businesses-of-Their-Customer-Focus/1010771#EboWWPlBKfOoduRI.99
US consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.
Read more at http://www.emarketer.com/Article/Consumers-Favor-Small-Businesses-of-Their-Customer-Focus/1010771#EboWWPlBKfOoduRI.99

 Click the chart to learn more.
 

 

L’Oréal Ups Its Product Mix in China

20 Apr

L’Oréal is a leading global beauty-care company: “For more than a century, L’Oréal has devoted itself solely to one business: beauty. It is a business rich in meaning, as it enables all individuals to express their personalities, gain self-confidence, and open up to others. L’Oréal has set itself the mission of offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy, and safety. It pursues this goal by meeting the infinite diversity of beauty needs and desires all over the world.” The firm’s annual sales are nearly $30 billion worldwide.

Among L’Oréal’s leading brands are L’Oréal Paris, Lancôme Paris, Giorgio Armani Beauty, Yves Saint Laurent Beauty, Ralph Lauren Fragrances, Maybelline, Cacherel, and Garnier. According to the firm’s 2013 annual report, these are its top cosmetics markets as forecast for the year 2025.

Loreal global

 

With the rapid growth of the Chinese market, L’Oréal is greatly ramping up its efforts there. For example, Laurie Burkitt reports for the Wall Street Journal that:

“As part of its shifting China strategy, L’Oréal recently closed on its €636 million deal ($882.9 million) to acquire Magic Holdings International Ltd., the Chinese owner of the MG brand of beauty products. MG sells 167 different kinds of paper-peel and mud masks across China, ranging from chamomile allergy-relieving to red wine complex whitening. L’Oréal will first look to expand MG masks in the brand’s home market, where the French company is refocusing after pulling its mass-market Garnier beauty-products brand amid intense competition.”

“‘If you are a beauty company, you need to have a Chinese skin care brand,’ said Alexis Perakis-Valat, executive vice-president of L’Oréal’s Asia Pacific region, in an interview. ‘Skincare is to China what makeup is to the U.S.’”

Click the image to read more.


 

The Importance of Customer Service in Marketing to Small Firms

1 Apr

Just like their larger counterparts, small business owners expect their channel partners (especially the manufacturers and suppliers with which they interact) to provide superior customer service. They do not want to be neglected or overlooked.

According to a February 2014 study by Cargo and Toluna (as reported by eMarketer): “Nearly half (47.3%) of small business owners (SBOs) said that poor customer service was the most common mistake brands made. Marketers must make an effort to relate to SBOs: Talking at SBOs (instead of with them), as well as failing to understand their businesses, were also big no-nos, cited by 44.7% and 40.7%, respectively.”

Click the chart to learn more.

 

results from a February 2014 study by Cargo and Toluna suggest that marketers should pay attention to their customer service if they’re looking to benefit from such growth.

Nearly half (47.3%) of SBOs said that poor customer service was the most common mistake brands made. Marketers must also make an effort to relate to SBOs: Talking at SBOs (instead of with them), as well as failing to understand their businesses, were also big no-nos, cited by 44.7% and 40.7%, respectively.
Read more at http://www.emarketer.com/Article/Small-Business-Owners-Wonrsquot-Put-Up-with-Poor-Customer-Service/1010723#CmyPSFEfXZZFMPuo.99

results from a February 2014 study by Cargo and Toluna suggest that marketers should pay attention to their customer service if they’re looking to benefit from such growth.

Nearly half (47.3%) of SBOs said that poor customer service was the most common mistake brands made. Marketers must also make an effort to relate to SBOs: Talking at SBOs (instead of with them), as well as failing to understand their businesses, were also big no-nos, cited by 44.7% and 40.7%, respectively.
Read more at http://www.emarketer.com/Article/Small-Business-Owners-Wonrsquot-Put-Up-with-Poor-Customer-Service/1010723#CmyPSFEfXZZFMPuo.99

 

 

“Incomplete” Products Can Spur Customer Consumption

28 Mar

According to Barbara Kahn, a Wharton professor, we are likely to consume more if we believe we are buying an “incomplete” product. Is this you? Read on.

In the Knowledge@Wharton video below, “Kahn talks about how a complete product encourages more consumption: A person is likely to eat two pieces of cheese with holes in them but only one if it is solid, for example. It’s a matter of perception, Kahn explains. She also discusses her research on the attention that consumers pay to large assortments of goods and how it influences their choices when information is presented visually or verbally. In addition, she describes a study on how consumers behave when goods are stacked vertically versus horizontally.”

 

Enhancing Customer Satisfaction

26 Mar

Take a look at a recent interview that Evans on Marketing did with Rachel Levy Sarfin of OnlyIT.ca on how companies can improve the customer shopping experience.

As Sarfin says: “The well-known adage of ‘the customer is always right’ is no longer enough to improve the shopping experience for today’s consumers. Customers hold certain expectations of their interactions with businesses, and in the Digital Age, if those expectations are not met, they will share their displeasure with thousands of people through social media.”

Click the image to read the interview.

 

How About This Radical Idea? Hold on to Your Smartphone

17 Mar

For years now, we’ve been conditioned to buying a new cell phone every two years. Why? More features, longer battery life, cooler design, status, etc. And mobile companies have sure made it easy for us to do this. In return in for agreeing to a another two-year contract, we get a state-of-the-art shiny brand-new smartphone for a relatively low price. The service carriers subsidize the price of new phones by having us subscribe to contracts that promote high-margin services.

With the above in mind, let’s consider a rather radical idea espoused by Farhad Manjoo, writing for the New York Times. If Manjoo’s ideas are accepted, there will be a substantial impact on our smartphone purchase behavior — and on service providers’ bottom lines.

Here’s Manjoo’s perspective: “Despite their small size, smartphones are expensive, resource-hungry goods, and they deserve a better life cycle than two years of use followed by an eternity in a forgotten desk drawer.” So, “use your phone for more than two years, ideally three; when you run into trouble, try to repair, not replace it; and when you’re done with it, trade it in. When you’re looking for a new phone, don’t just consider the latest high-end devices; many people will find last year’s best phone just as useful as the newest one. You might even consider buying a used phone instead of a new one.”

Manjoo’s tips are to

  1. hold on to your smartphone for a longer time.
  2. sell or trade in your old phone to a company such as Gazelle (there is a growing aftermarket).
  3. buy a used phone (there are many great choices out there).

Click the Gazelle image to read more from Manjoo.

 

Lego Mania Goes Viral

6 Mar

The Lego Movie has turned out to be quite a global phenomenon. Click the image to visit the movie’s Web site.

According to Box Office Mojo, through March 4, 2014, the movie had grossed $333,000 worldwide — $212 million in the United States and $121 million in foreign markets. And, unlike some other blockbuster movies that cost much more to make, The Lego Movie cost $60 million to produce, making it highly profitable.

But The Lego Movie mania goes far beyond the popularity of the film itself. There have been a lot of promotional tie ins (see this article, for example). And Toys “R” Us even set up special displays for Lego movie figures.

Separate and apart from the recent movie, there is also a Lego “YouTube Spotlight” with a number of “fan-made” videos based on Lego characters. Many of the videos preceded the introduction of the movie — nonetheless, they extend Lego brand recognition and continue to be highly viewed. The most popular Lego movie in the spotlight is Battle of the Brick: Built for Combat, which has been viewed nearly 17 million times.

All in all, it’s a great time for Lego.

[Note: The video below, Battle of the Brick: Built for Combat, is 27 minutes long.]
 

 

Generating Customer Passion

17 Feb

Evans on Marketing:

Companies need to do better in pleasing and exciting their customers. It’s all about the satisfiers, not the dissatisfiers.

Originally posted on Retailing: From A to Z by Joel Evans:

As we know, customer satisfaction alone is often insufficient for generating and sustaining long-term customer loyalty. It is important to exceed customer expectations whenever possible and drive greater customer passion.
Consider these findings from a recent Responsysstudy of U.S. adults, as reported by MarketingTechBlog:
  • 73% of people want a long-term relationship with companies/brands that reward them for being loyal.
  • Just 32% of people say that the companies/brands that they love only send them offers/promotions in which they have an interest.
  • One-third of people say they have “broken up” with a company/brand because because of poor, disruptive, or irrelevant marketing messages they have received.
  • 53% of people who say they have broken up with a company/brand have done so because they regularly receive irrelevant content via multiple channels.
Take a look at the following infographic to see how to gain more customer “love.”



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Ignoring Social Media at Your Peril

6 Feb

Last week, we wrote about how many firms are having trouble keeping up with social media (click here for that post). After reading this story, from contacted me about doing an interview on that subject.

This interview was published yesterday. As Levy Sarfin reports:

“Having a social media presence for your business is de rigueur today. Prevailing wisdom says that if you have not created profiles on popular social networks, you are missing a valuable opportunity. However, your brand’s mere presence on LinkedIn or Facebook is only the first step to attracting and retaining customers. Brands need to respond to consumers’ comments through social media channels to show they care about them and are interested in keeping their business. Dr. Joel Evans, professor at Hofstra University’s Zarb School of Business, explained why companies neglect this important relationship and how they can fix the problem.”

Click the image to read the interview. Thanks!!
 

 

How Samsung Became a Global Powerhouse

2 Feb

As we have reported before, South Korea’s Samsung Electronics is a certainly a company to watch (click here, for example). Consider this: For six years, Samsung has been the second leading grantee of U.S. patents, behind only IBM. In the United States, Samsung sells one out of every four TV sets; a decade ago, it accounted for .5 of one percent of TV sales!

According to its Web site: “For over 70 years, Samsung has been dedicated to making a better world.” The company “leads the global market in high-tech electronics manufacturing and digital media.”

And Samsung plans on staying on the fast track. It spends $12 to $14 billion dollars per year on research and development activities.

In this month’s Costco Connection, there is an interesting in-depth cover story about Samsung’s recent growth and its product planning and management philosophy. Eric Traub reports that:

“It’s not just televisions where Samsung has taken the lead. The company now sells 23 different categories of consumer products in North America. Its Galaxy smartphones have become a viable option to Apple’s iPhone. The company has made strong inroads in large appliances, including washers, dryers, and refrigerators, winning praise for innovations and quality. And then there are its Blu-ray players, speakers, microwave ovens, vacuums, and LED lighting, which are also garnering sales.”

‘We’re a company, even from a global perspective, that has anticipated changes in the marketplace,’ says Tim Baxter, president of Samsung Electronics America. Since joining Samsung, Baxter has been a key player in Samsung’s efforts to dramatically increase its American footprint. When it comes to television, ‘we anticipated the change from analog to digital, from picture tube to flat-screen HDTVs, and even from male-centric to female-centric purchases,’ Baxter explains. ‘In the process we decided to make some big bets that helped drive our TV business, our phone business, and even the semiconductor business, which were the three pillars that helped grow the company.’”

Click the image to read more.

Photo from Costco Connect

 

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