Transform Your Marketing with Strategic Customer Insights

Newsletter Introduction

Welcome to the newest edition of the Marketing with a Bit of Funk newsletter! Before we start, I appreciate you reading this, sending messages to support me, and sharing it. Please continue.

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And now, off to today's topic! Sorry to keep you waiting.

Introduction

In the latest episode of the podcast, I had the pleasure of hosting my friend Andi Jarvis, Strategy Director and Founder at Eximo Marketing, and a host of the Strategy Sessions podcast, to discuss how customer feedback can revolutionize marketing strategies. We dove deep into various facets of marketing strategy, and the importance of customer insights.

The fastest way to improve your marketing is to talk to your customers.

• That doesn't mean that you ask them what they want.
• It doesn't mean you must change everything based on what they say.
• This isn't always about running a focus group.

It's about listening to the problems your customers have and understanding the role that you and your brand play in solving those problems for them. Too many marketers don't have conversations with customers, and it shows in what they do.

Find the full episode at the link below.

The Importance of Customer Feedback

Customer feedback is a goldmine for any business aiming to refine its marketing strategy. Understanding customers' problems is crucial.

We are all aware of the myth that Henry Ford and Steve Jobs spread: customers can express current problems even though they may not be able to articulate future needs. For instance, Henry Ford realized people wanted to travel more efficiently and comfortably, leading to the development of the automobile, not a faster horse.

And he wasn't wrong! You need to understand your customers better than they understand themselves. You won't get the answers you need just by doing a survey.

It's not that easy, you slacker!

Data Insight: According to a study by Deloitte, companies that regularly incorporate customer feedback into their strategic planning processes are 60% more likely to achieve higher customer satisfaction and retention rates.

Strategy vs. Tactics

There's a clear distinction between strategy and tactics. A strategy is not a plan. I always like to refer here to a piece from Roger Martin .

Think about the vacation analogy. It's summer, after all. Here's what Andi Jarvis said:

• Strategy as a Vacation Plan: Deciding on the destination is akin to defining the strategy. It's about determining where you want to go. For companies, this means understanding who they are targeting, why customers would buy from them, and what the core message should be.
• Tactics as the Travel Plan: Planning how to get to the destination represents the tactics. It involves the practical steps needed to achieve the strategic goals, such as specific marketing campaigns, channels to use, and customer engagement techniques.

Imagine a group deciding to go on vacation. One person thinks they are going to Spain, another to Portugal, and they end up in Marseille. While they still enjoy a sunny holiday with good food and drinks, they are not aligned with their initial plan. This misalignment underscores the need for a clear strategy (destination) before executing tactics (travel plans). ~ Andi Jarvis

Data Insight: Harvard Business Review reported that companies with aligned strategic and tactical plans are 50% more likely to outperform their competitors.

Engaging with Customers

Engaging with customers doesn't always require formal focus groups, or surveys we mentioned. Simple interactions, like handling complaints or conducting informal discussions, can yield valuable insights.

Let's look at the automotive industry.

Customers are describing losing their car for a day as akin to losing a leg. This emotive feedback highlights the car's significant role in their lives, influencing marketing communications to focus more on emotional rather than practical aspects. Trust me, I know that. If you have ever been to or lived in Belgrade, or anywhere in the US, you understand the pain.

Case Study: In a project with a major automotive brand, addressing customer concerns directly led to a 25% increase in customer satisfaction scores within six months.

Real-Life Examples and Case Studies

I'm adding additional real-life examples to illustrate the impact of customer feedback on strategy:

1. Turkish Startup Example: A Turkish startup struggled to define its product category. By listening to customers (their product team and their customer success team are talking to customers regularly), they identified multiple subcategories and tailored their content strategy accordingly. They realized that they could cover a lot more than one. This approach allowed them to better serve different market segments and significantly improved their market position, but they needed to align their efforts and investment to support it. In this case, they created a team of excellent writers who flourished with the right strategies and processes, as well as support.
2. Car Dealership Example: A car dealership transformed its customer experience by guaranteeing service within an hour of a breakdown. This commitment led to increased customer loyalty and willingness to pay a premium for reliable service.
3. Software Company Example: A software company found that different customer groups derived varying benefits from their product. By understanding these differences, they were able to customize their messaging and improve their overall marketing effectiveness.

Data Insight: McKinsey research shows that companies using customer feedback to inform strategic decisions see a 20% increase in customer engagement and a 15% boost in sales.

The Role of Data

Data is crucial in shaping marketing strategies, but it's essential to recognize its limitations. Just like ice cream, data is valuable when it is fresh but quickly becomes useless if left too long. There needs to be a balanced approach, where we use recent data for actionable insights while acknowledging patterns in older data.

Kudos to Steen Rasmussen for this analogy.

Let's sum it up:

• Data as Ice Cream: Data is fantastic when fresh, much like ice cream on a hot day. However, it melts and becomes useless if left too long. This analogy underscores the need for timely data to make informed decisions.
• Patterns in Old Data: While recent data is more useful for immediate decisions, older data can help identify patterns and cycles, guiding long-term strategies. For instance, financial markets operate on the principle that past performance is not always a predictor of future results, emphasizing the relevance of fresh data

Data Insight: A Gartner report indicates that organizations using real-time data analytics are 70% more likely to make accurate strategic decisions than those relying solely on historical data.

Building and Maintaining a Brand

Consistency is key to brand building. I can't stress enough the importance of maintaining a consistent brand message and identity over time.

On LinkedIn, a lot of people change what they talk about very often. They often open the door, then they open another one, and another one, etc.. Open the God damn door and go for it, don't look for another right away!

Look at Coca-Cola and KitKat, they have remained recognizable despite subtle evolutions. For companies, this means resisting the urge to frequently change brand elements and instead focusing on reinforcing a clear, memorable brand identity. ~ Andi Jarvis

Data Insight: Consistent brand presentation across all platforms increases revenue by up to 23%, according to Lucidpress.

Here's brand strategy 101 from Andi Jarvis ! Click below to watch.

The most important condition to maintain your brand presence is conducting regular customer conversations, as we mentioned earlier. There are many types of conversations you can have, based on the parts of the business you want to improve.

Ryan Paul Gibson shared a list of questions he curated to help with these various conversations. Find it below.

Performance Marketing vs. Brand Building

While performance marketing is essential for immediate sales, long-term success hinges on brand building. Companies should aim for a balance, typically around a 60-40 split between brand building and performance marketing. Investing in both areas ensures sustained growth and resilience against market fluctuations.

Data Insight: Research by Binet and Field suggests that brands should invest 60% of their budgets in brand-building activities and 40% in performance marketing to optimize long-term growth

Conclusion

I hope this newsletter edition helped you understand the importance of integrating customer feedback into marketing strategies, maintaining a balance between strategy and tactics, and building a consistent brand identity.

By staying attuned to customer needs and leveraging data effectively, companies can navigate the complexities of the market and achieve sustained success.

If you want to be successful, you need to take action. Find out what works and create a strategy around it. You need to implement your plan and see it through.

Of course, that’s easier said than done. But if you can do it, the rewards will be more than worth it.

I hope you’ve enjoyed this newsletter edition and that you found it helpful. In case you did, share it with someone that needs it badly. That’s why we wrote it.

Feel free to share your thoughts and experiences on this topic in the comments!

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Stay tuned for more thought-provoking discussions in our upcoming newsletters!

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