Michael Lowenstein

Prospect Value Management: Maximize Profits, Not New Accounts

Historically, most companies devote considerably more energy and resources to winning or capturing customers than they do on keeping them. The term "conquest" is a frequently used term for new customers, especially among automotive retailers. Consultant and author Robert Tucker has stated, "Companies are...

Social Media: Consider the Impact of Both Offline and Online Communication in Creating Customer...

Over the past few years, so much has changed about the way companies sell to, communicate with, market to, and maintain relations with their customers that comparing effectiveness of both media and message content is very little more than an academic exercise. These are...

If You Can’t Get No Satisfaction, Trade Ratings for Truly Understanding Behavior

More than 40 years ago, Mick Jagger and Keith Richards wrote I Can't Get No Satisfaction. Although the song was meant to be anti commercialism and anti status quo, the lyrics (ignoring the double negative) have deeper meaning for marketers. They look for good...

Optimizing Customer Experience: How One Auto Dealer Group Builds Trust and Commitment

It will not suffice to have customers that are merely satisfied. An unhappy customer will switch. Unfortunately, a satisfied customer may also switch, on the theory that he could not lose much, and might gain. —W. Edwards Deming, from the book Out of the...

Inside-Out Advocacy: Link Employee Attitudes and Actions to Customer Loyalty Behavior

How much influence do your employees have on customer value perceptions and loyalty behavior through their day-to-day interactions? At Royal Bank of Canada, agents can manage and reverse service charges. And through a program called "I Make It Right," an agent who thinks that...

Make Both an Emotional and Rational Appeal to Your Customers: Inside-Out and Outside-In Commitment...

In 2006, American Express became the first company to take on musician and activist Bono's challenge to help the international fight against AIDS, tuberculosis and malaria. It introduced American Express Red, a credit card in the United Kingdom that would pay 1 percent of...

Employee Ambassadors: Employee Attitudes, Beliefs and Actions Affect Customer Loyalty

During his 50-year film career, John Wayne made more than 170 movies. Arguably, one of the worst was The Barbarian and the Geisha, released in 1958, in which he played Townsend Harris, the United States' first official envoy to Japan. The movie wasn't particularly...

Data, Data Everywhere … The Key Is Doing Something With It

Bill Gates, often a prophet, said in Business @ The Speed of Thought (Warner Books, 1999): The best way to put distance between you and the crowd is to do an outstanding job with information. How you gather, manage and use information will determine whether...

Maslow’s Theory Applies Today: Nurture Advocacy by “Tree” Rings Around Touch-Points

If you've ever taken a marketing course, or been exposed to marketing literature, you're probably familiar with Abraham Maslow. In the late 1960s, it was Maslow who developed a hierarchical, or layered, theory of human needs and values. Maslow focused on human potential, believing...

Don’t Rush to Rely on the Magic “One Number” Loyalty Score

The philosopher's stone, in Latin philosophi lapis, is a legendary substance that supposedly could turn inexpensive metals such as lead into gold and/or create an elixir that would make humans younger. It was a longtime "holy grail" of Western alchemy.—Wikipedia The philosopher's stone was first…

Cook Up Customer Advocacy the Way You Would a Lasagna, in Layers

The objective of any supplier is to create a value-based longitudinal relationship with customers, such that the customer will give a high share of wallet to that supplier—optimistically to the exclusion of others. Like lasagna with layers of cheese, pasta and other goodies, the...

Faces in the Mirror: Employees Think They Know What Customers Value

Some may remember an episode of '90s sitcom Murphy Brown, in which Candace Bergen, as Murphy, is viewing a focus group about her news program, FYI, through a two-way mirror. In a key scene, focus group participants are asked to describe the personalities and...

Word of Mouth Is a Powerful Vehicle for Making Advocates–and Enemies

Today, responding to the new complexities and realities of customer decision-making, marketers are zeroing-in on finding methods of creating engagement, trust, commitment and advocacy among customers well beyond traditional advertising and editorial material through formal electronic and print channels. The currency for meeting these...

Cowboys and Saloons. Chickens and Eggs. Customers or Employees. Which Came First?

Which came first, cowboys or saloons? Chickens or eggs? While these important questions may never resolved, the role of employees in leveraging customer loyalty behavior is far simpler to understand. It's impossible to have customer loyalty and advocacy without employees both understanding their role...

The Trust Equation: Build Employee Relationship Credibility, Rapport and Integrity To Leverage Customer Advocacy

The dictionary defines "trust" as "assured reliance on another's integrity, veracity and justice." "Sincere," a related word, means "pure, real, honest and free of hypocrisy." Both sincerity and trust are at the heart of partnerships, contracts, relationships and dealings between people and institutions; and...

Gain Insight Into How Your Customers Think: An Interview With Michael Lowenstein

Every manager understands that having a single integrated view of the customer across the enterprise is a laudable goal, but, according to guru Michael Lowenstein, few companies have actually achieved it. His new book, One Customer, Divisible: Linking Customer Insight to Loyalty and Advocacy...

Letting in the Sunshine: Companies Increasingly Look to Their Customers To Grow the Business

I recently wrote about how LEGO Group had incorporated customer input directly into the enterprise, utilizing both kids and adults as conduits of information and insight to help with product and concept development. But it's not all child's play. Increasingly, companies in different industries...

LEGO Products Aren’t Just Toys, They’re an Example of How To Really Put Customers...

As customer relationship trends go, there is something of a "back to the future" feel about receiving direct input and guidance from customers. This is an extremely effective, but rather infrequently used, method for helping shape product and service strategies and marketing programs. The...

“Customer First” Teams Can Help Companies Succeed

In the late 1960s and early '70s, Xerox Corp.'s Palo Alto, California, research and development labs created embryonic versions of what would become the personal computer. But Xerox didn't capitalize on the opportunity. Executives only saw Xerox as the leading copier company, and no...

CDI: Can Marketers Dance to the Customer’s Tune?

Over the last few years, marketers have been wondering what CRM is really all about; and they have invested billions of dollars trying to find out, and trying to make the "Holy Grail" promise of CRM work for them. Essentially, though, CRM whittles down...

New Posts