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September 2023 – New-Customer SOS (Shiny Object Syndrome)
McKinsey & Company has revealed a top-secret competitive advantage for incumbent companies: their existing customers. Customer retention is almost always less expensive than customer acquisition. And the data supporting that common knowledge is striking: McKinsey found that the most effective growth companies produce 80% of their value “from their core business – principally, unlocking new…
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November 2022 – Never Surveyed a Customer We Didn’t Like
Companies are in business to fulfill their customers’ needs and/or wants, and producing satisfied customers is one of the most important business results that a company can achieve. The best companies strive not only to deeply understand the needs and wants of their target customers – but also to understand how well they are fulfilling…
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Changing Tastes are Catching Businesses Off Guard
Changing Tastes are Catching Businesses Off Guard Today some of the biggest names in retail are struggling to understand the quirks of the millennial generation, a critical customer base. McDonald’s has lagged in the trend toward “fast-casual” dining (e.g. Chipotle Mexican Grill, Corner Bakery) that offers healthier ingredients and highly customizable meal options. The chain’s…
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August 2014 – Are Customers Really OK with Online Business Experiments?
Are Customers Really OK with Online Business Experiments? Is messing with the minds of your customers sometimes OK, or is it mostly always wrong? Last month the online matchmaking service OKCupid said it purposely manipulates data to “improve their matchmaking system and help users find love”. And that it’s justified because, “That’s how websites work.” Or…
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July 2014 – Can Customers Like You Too Much?
Can Customers Like You Too Much? Not all customers are good for your company. There is a specific class of customers that could actually signal that a new product will fail. A recent study from the Kellogg School of Management at Northwestern University describes these “harbingers of failure”. These customers tend to have unique tastes, they buy…
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June 2014 – How to increase your customer base 850%, Uber-style.
How to increase your customer base 850%, Uber-style. The evolution of technology presents a continuous challenge to business models – but it also allows old and new companies to gain unique competitive advantages. A recent example is Uber, a company that has developed smartphone apps that allow riders to book livery and ridesharing services with…
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September 2013 – Momma Always Said First Impressions Matter.
Momma Always Said First Impressions Matter Remember the old days when shoppers used to go to the store, compare products sitting on shelves, and then choose one to buy? P&G called that the First Moment of Truth between the customer and the company. Yes, that was a long time ago – maybe 10 years… Now…
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February 2013 – Watered Down Bourbon Misses the Mark
Watered Down Bourbon Misses the Mark We enjoy the occasional bourbon, so we couldn’t help but notice the recent announcement by Maker’s Mark (see link) reversing their decision to add water to their whiskey. In business, there are big decisions and there are small decisions. A decision to dilute a premium product with water in…
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September 2012 | What’s A Customer Really Worth To You?
What’s A Customer Really Worth To You? For several years PriSim has been teaching students to consider the “lifetime value” (LTV) of their customers. And now we’ve published an article describing the LTV process. Click here to read a copy of the article. It’s easy to fall into the trap of valuing customers based solely…
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A WikiLeaks World
Covering your assets in a wikileaks world We’ve all heard about Julian Assange, the editor-in-chief at WikiLeaks. Not too long ago, he published classified government documents and exposed toxic waste in Africa, Scientology manuals, and even water-boarding procedures. Some want to see him as Time Magazine’s Person of the Year. Others want to see him…