Customer Insights and the 4Ps of Marketing
April 14, 2015
Marketing professionals often talk about the “marketing mix” – the elements that make up a successful marketing strategy. There are different schools of thought about what elements to include and how to approach each of them, but the original, classic framework for the marketing mix is the 4Ps: Product, Price, Promotion, and Place.
Although the Voice of the Customer doesn’t have a formal place in this model (it doesn’t start with a “P” after all), customer insights can have a major impact on all four of the Ps:
Product: This one may be the most obvious – listening to customer feedback lets you find out what your customers want, so you can provide it. If they start complaining about your products in social media, you can funnel the feedback to the product team so they can fix your products. Marketers have to be aware of the entire product lifecycle, from the original idea to how long one release will stay on the market. Being aware of customer feedback at every stage gives you the flexibility to make changes that will have a big impact.
Price: Customer feedback gives you information that complements what you are seeing in your sales numbers. If customers are talking about getting a “great deal!” or talking about your price with a very positive sentiment, then you know that there may be room to increase your price point a bit without damaging your sales. Low sales numbers accompanied by a high number of complaints specifically about the cost of the product will let you know that it is price, rather than functionality or packaging that is causing your problems.
Promotion: Positive or negative reactions to your new ad campaigns will show up in your customer feedback before they show up in your sales figures – particularly in social media. By listening to social media comments, you are able to immediately remove or revise campaigns that aren’t working, or decide to invest more in an idea that is getting good buzz. You can also learn more about problems with in-store or online promotions such as coupons or other discounts.
Place: Increasingly, the “place” where we market goods and services is the internet. As online retail increases, so does the importance of the internet as a channel for collecting customer feedback. 90% of consumers say their buying decisions are influenced by online reviews. Similarly, 53% of global online buyers say they won’t buy something unless they have online reviews for validation. Fortunately, there’s plenty there to find: Yelp users post 37,987,200 reviews per day. TripAdvisor has 200 million posts and counting. Text analytics as a part of an overall customer experience management program is the way to keep tabs on this vast location.
Marketing is a major driver and consumer of customer experience insights across industries; in fact, the customer insights program is often part of the CMO’s organization. Whether you are using the 4Ps or some other model, your marketing activities need to take customer feedback into account to be successful.
For more information about how marketers can use customer insights, check out our CX Brief: 6 Reasons Why Marketers Need CX Insights.
Lisa Sigler is Sr. Manager of Content Marketing at Clarabridge. For over 16 years, Lisa has used her writing and editorial skills to bring the value and benefits of technology to life. In her current role, she works to demonstrate Clarabridge’s position as thought leader and trailblazer in the Customer Experience Management market. Lisa holds a B.A. of English from Kent State University. Read more from Lisa on Twitter @siglerLis.