Customers form the heart of marketing. But many times marketing is geared to processes instead of focussing on customers’ needs. Real customer orientation spotlights the customer insight and not processes. Thus, consumer insights become the key qualification of successful companies.
In this actual research area, the Institute for Market-based Management attends to the following topics:
- generation of knowledge about customers,
- customers’ preferences,
- mechanisms of action and the drivers of the shown purchase behaviours,
- performance control of marketing tools being applied.
Due to the fact that customer relationships enable to reach higher profits, particular attention is paid to the drivers of customer retention. The influence of customer satisfaction to customer loyalty has been proven in many cases. We try to go beyond that and understand which other factors have impact on the strength of this correlation and make sure that customers continue to be loyal to their provider, respectively. Finally, various parameters can be identified and prioritized, which companies can vary in the framework of their actual marketing and communication activities in order to increase customer retention in a more systematic way. Thereby, the determination of customers’ or customer segments’ preference structures is of particular importance.
If it is possible to include the advantage of a product and the expected price behaviour during the development, a gain of customer orientation and efficiency can be managed.
Modern methods of the Conjoint-Analysis as the choice based CBC-approaches offer surveys and quantifications of the customers’ preference structures that are more valid than those of classical approaches.
For this Hierarchical Bayes Methods are used for the estimation of part-worths on an individual level, which normally after huge disposed simulation studies of IMM are superior to other estimation procedures.
In addition to the knowledge about preferences, the research area “Consumer Insights” also concentrates on data mining and customer relationship management. In that way,
- attractive product bundles can be defined,
- new, promising customer segments can be identified,
- existing customers can be committed.
During the last couple of years, many companies have set up a CRM-system with high investments to manage the relationship to their customers in a more efficient way and to increase their satisfaction. But, this approach was partly dominated by an insufficient customer orientation which made the success turn out little. In empirical studies the Institute for Market-based Management takes a fundamental perspective of the customer and is able to determine the essential parameters to vary for operating CRM successfully.
Find out more about Consumer Insights in the related institute's publications [German].