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Increase Wallet Share by Engaging Your Customers

by Jennifer Beever on May 17, 2012

One important question B2B marketers have is, “How can I increase sales to customers (also known as ‘increasing wallet share’)?”

It is six to seven times more expensive to acquire a new customer than it is to retain an existing customer (Bain & Company Study). Bain & Company’s study also showed that a 5% increase in customer retention can lead to profit increase of 25-100%.

How can you increase your customer wallet share?

Know your customers. Know which customers are profitable. Know what your customers want and need (and what they don’t know they need).

Track and increase customer satisfaction. Survey your customer’s satisfaction levels and then take action to improve the levels. Do a customer touch point map to analyze each point at which you “touch” the customer. Identify points of friction and resolve them!

Engage your customers. Add value to your customers experience by providing information and learning opportunities related to your products or services. Give valuable information for free to your customers. Increase your customer touchpoints (making each touchpoint a positive experience). Interact with them on social media as well as through traditional marketing channels. More positive touch points will increase brand awareness, which has a direct correlation to wallet share, according to a study done by Ipsos Loyalty and professors at Fordham University and Vanderbilt University’s Owen Graduate School of Management.

Other articles and information I found related to this topic that you might find helpful:

Engagement: The Secret to Profiting From an Upside-Down Economy, by Chris Cottle, Allegiance, Sales & Marketing Management 

Increase your “Share of Wallet” through Customer Experience Management and “Trusted Relationships”
by Rick Graves, CoreBrand, Interactive Intelligence blog

Know Your Customers’ Wallet Share to Retain the Best Customers, by Laura Patterson, Customer Think blog

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Why Focus Groups Are a Waste of Money for B2B Marketers

by Jennifer Beever on May 11, 2012

neuromarketing brainI’ve never been much of a believer in focus groups for market research. They are expensive and, like some, I believe that focus group dynamics lead to group think, which may not amount to true customer response. Now with research being done in neuroscience and the emerging practice of neuromarketing,  there is more thought that focus groups are not effective.

In a Psychology Today blog post, Mind control: Neuroscience in marketing, Ray Williams cites Natasha Singer’s article in the New York Times, “Making Ads That Whisper to the Brain.” In her article, Singer argues that because most of our brain’s activity is unconscious, neuromarketers believe that traditional surveys and focus groups are inaccurate.

The New York Times article also provides some words of caution – that neuroscience doesn’t have all the answers. According to Dr. Robert T. Knight, a professor of neuroscience and psychology at Berkeley, “EEGs can be used to determine whether a person is engaged, but not to decipher the nuances of that engagement…. …That means that neuromarketing may distinguish whether a person’s emotional response is positive or negative, but not whether the positive response is awe or amusement. This is not a mind reader we can only measure whether you are paying attention.”

I believe that primary market research in the form of one-on-one interviews and behavior observation yields more cost-effective results for business-to-business marketers – perhaps for business-to-consumer marketers as well. What do you think? Are you a B2B marketer or researcher who has gotten great results from focus groups?

My firm New Incite offers marketing research and analysis services. Please contact us today for more information on how we can provide “new incite” for your marketing.

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B2B Marketer – Look Before You Leap

About to jump off and launch a new product or service? You should “look before you leap,” and do some market research. Business to consumer (B2C) companies spend hundreds of thousands of dollars on market research before they brand and launch new products. Business to business marketers should do the same. You don’ t have [...]

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B2B Marketers: It’s Time to Claim Your Facebook Company Page

You may not know it, but your company page already exists on Facebook. And, it’s blank. Why? Because your employees are on Facebook, and when they created their personal profile, they said they worked at your company. If your company page did not exist, Facebook created a blank page for you. If an employee types [...]

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Do’s and Don’ts for Re-Purposing Content to Your Blog

It’s efficient to re-purpose content into your B2B marketing blog. But, there is some content that really doesn’t belong. Be careful. Your B2B marketing blog is not a place to cut and paste just any existing content, so you can make your per week blog post quota and bump up your SEO performance. Done right, [...]

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3 Things to Consider When Hiring a Blog Ghostwriter

Effective blogging takes a lot of time and effort. Over 90% of blogs that get started are abandoned. One solution can be to hire a blog ghostwriter. Here are three important things to consider if you hire a blog ghostwriter. 1. Your blog should reflect “the voice” of your company. Any business-to-business blog must reflect [...]

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B2B Blogging – 8 Ways to Promote Your Blog

If you’re going to invest time and effort in writing a blog, you want to get as many customers and prospects as possible to read it. How can you promote your blog? Here are eight ideas: 1. Increase the frequency of your blog post writing. 2. Engage with other bloggers by commenting on their blogs [...]

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Why Spending More on Your Trade Show Increases ROI

But, spending more decreases ROI, doesn’t it? You’ve heard the adage, “To make more money, you’ve got to spend more money.” I believe this is true when it comes to tradeshows. You see, what most businesses do is just show up. Then they go home. They don’t plan strategically. They don’t have a special offer [...]

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Can Social Media Move You from Good to Great?

Social media is not a silver bullet, the be-all and end-all, a panacea. It’s just another tool to add to your marketing toolbox. In his book Good to Great, Jim Collins wrote that great companies never saw or tried to use technology as the way to greatness. Rather, technology was an accelerant, but only if [...]

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Seven Ways to Test Your New Logo

Before you go live with your new logo, you should run it through several tests. Logos take time and effort to develop. You don’t want to launch a new logo and sink money into print materials and other collateral, only to have to redo it. 1. Fax. Yes, there is a good chance your logo [...]

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