Is your Coffee Business in the Marketing 4.0 Era?

Article published by CoffeeBI – Year: 2018 – Language: English

To be or not to be digital, that is the question. After surviving the long 4Ps period (Product, Price, Place, Promotion) and arriving in the internet era that boosted us into the 4Cs period (Customer/Consumer value, Cost, Convenience, and Communication), it’s time to combine online and offline interactions between companies and customers.

If you bought some Facebook advertising for your coffee shop and you are now disappointed, or you spent a fortune to be at the top of the first Google page but your business is going wrong, the bad news is that digital is not enough.

I know, for years we have been invited to become ever more digital because,“this is the digital economy, baby”, but this digital interaction alone is not sufficient.

Some analysts suggest that in an increasingly online world, offline touch represents a strong differentiation. That’s right, but it’s probably not the real issue.

Let’s try to reformulate that sentence: In a world increasingly made of products that are commodities, service is a strong differentiation.
Some questions to ask ourselves may be: do my customers really perceive the difference between my products and my competitors’ ones? And what about my activity and that of my competitors?

“Quality” is absolutely the right answer, but this factor impacts between 10% to 30% of your product value in a commodity world, the rest is made from service.

Back to basics. In 1.0 marketing, marketers were (or are!) concerned about the selling of their products; in 2.0 marketing, the priority is “customer need”; in 3.0 marketing more value was placed on triggering the human spirit.

Nowadays, the economy of “sharing”, the “now economy”, omnichannel integration, relationship marketing, and social CRM are pushing us to a convergence between digital and traditional marketing.

The more we become social, the more customers want something that has been created specifically for them.

In this transition era a new marketing approach is required, which must adapt to the different paths taken by consumers in the digital economy, customers should also be accompanied at every stage of their journey.

Philip Kotler, father of marketing, points out how important it is to think of the customer journey with a new 5As approach: Aware, Appeal, Ask, Act, and Advocate.

  • Aware: Where have your clients been exposed to your brand name? And where or whom have they heard from?
  • Appeal: Where have your clients seen or heard about your products? This step is important to develop a short-term memory for your clients.
  • Ask: What are the touch points (online and offline) you set for people questions?
    Act: This doesn’t mean just purchase. It means, above all, customer experience.
  • And experience means service, service, service. Here you can find 70-90% of your value (remember? 10%-30% is made of quality of products).
  • Advocate is retention, repeat visits, and making customers love your products and services. What is a good strategy to build more brand ambassadors?
The Power of Now Economy in the HoReCa World

Article published by CoffeeBI – Year: 2018 – Language: English

Think about how we order meals, find a hotel, suggest a restaurant to friends, even how we take a coffee in some coffee shops, where we can skip the queue with a smartphone app. Our everyday consumer world has been disrupted beyond recognition.

Again, look at consumers’ behaviour over the last few years and how they have embraced immediate communication and instant service faster than many forecasters expected.

Amazon has just launched two new services for a generation of impatient digital natives, who crave instant gratification and immediate satisfaction. And are you carrying out a customer satisfaction survey on your clients the day after (in the best case) they had their experience with your product or into your shop? Yesterday may as well be one year ago.

Ten minutes after living their experience, your customers are already on TripAdvisor to write their feedback, or on Facebook to post about their experience.

So, welcome to the so-called NOW ECONOMY. For better or worse, we have to face this new lifestyle of carrying out instant interactions and highly individualised customer experiences.

These experiences are increasingly context-driven across all devices, tools, and applications, that are revolutionizing the way people consume, communicate, collaborate, and engage in both their personal and professional lives.

It’s estimated that one bad review overrides at least 30 good ones in any one of the popular review websites. People grade their experience in real time, and in a different way. How can you catch and keep your customers if you don’t have the time, tools, and budget to fight against the influence of the net?

It’s important to intercept clients’ feedback in the first 30 minutes after their experience, take an action either when they are satisfied (a reward program?) or unsatisfied (a recovery program?), and do re-marketing campaigns to consolidate their positive opinion, or give them a second chance to change their mind, if they had a bad experience with you.

Today you can make yourself a part of the now economy in a simple way. Technology is important but it’s not enough. You need technology and professionals, a new mindset without any big budget.