| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Innovation Last Updated: Mar 4, 2011 - 6:31 AM

Companies reconsidering how to identify their most valuable customers according to new report
By Finfacts Team
Mar 4, 2011 - 6:27 AM

Email this article
 Printer friendly page

Companies are reconsidering how to identify their most valuable customers, against a backdrop of the proliferation of new customer communication channels, including social networks, microblogs and wikis, that has led to a deluge of information. Customers are sharing not only their opinions about the brands with which they do business, but their ideas for new products and marketing strategies as well, according to a new report.

Beyond improving how they respond to customers, companies that are able to interpret and act upon these insights can also enhance how they develop new products and operate their businesses.

As a result, this new wealth of information is forcing a majority of companies to reconsider how they determine the value of their customers. This is the main finding of a new report, Redefining customer value: corporate strategies for the social web, produced by the Economist Intelligence Unit and sponsored by software firm, SAS. The report, the first of a two-part series, includes a survey of nearly 400 executives from around the world, as well as in-depth interviews with business executives and experts.

The EIU says while this effort is still nascent - - very few companies have figured out just how to rewrite the definition of a valuable customer - - a majority of respondents (75%) say that customers are now a critical source of innovative ideas. And more than half (55%) say that customer service is now an enterprise-wide responsibility, indicating a recognition among firms that customer insights need to be harnessed more effectively and by more than just the marketing function.

“Executives realise that customers need to be approached in new ways, to give them a greater opportunity to share insights and ideas about new products and services,” says Debra D’Agostino, managing editor of business research at the Economist Intelligence Unit and editor of the report. “However, companies still struggle with how to measure the actual value of that effort, or how to create processes that allow for the easy transfer of customer insight across the enterprise. Firms that can find ways to do this will have an edge over their rivals.”

Other findings from the report include:

  • Extracting a competitive edge from these new channels will require improved analysis of customer behaviour. Analysing the new patterns of customer interactions will not be easy, considering their high volume and frequency. Given the many ways in which companies are interacting with customers, data will need to be shared more widely and analysed quickly and effectively so that the appropriate action can be taken. This presents a significant challenge: just 52% of survey respondents are confident that their companies are using technology adequately to understand customers, and just over one-quarter believe that their companies are able to respond adequately to new business environments. 
  • Organisations need to broaden their approach to market information. In the C-suite (CEO level), this means that the CMO (Chief Marketing Officer) should consider how to integrate multi-channel customer feedback–including via social networks, blogs and online communities—with conventional inputs. Marketing executives will need to be as comfortable interpreting these data as they are with traditional means of tracking customers. 
  • The CMO should partner with the CFO, and share information more frequently with the legal and risk departments. Currently, this link has been forged primarily in the heat of crisis, when companies are facing falling revenue or a situation that can harm the firm’s reputation.

The quantitative findings presented in the report are based on an online survey conducted by the Economist Intelligence Unit in October 2010. A total of 391 senior executives from a broad range of industries participated in the survey, of which 45% are CEO or above. Around 30% of executives are based in Europe, 25% in the US and Canada, 26% from the Asia-Pacific region, and the remainder from the Middle East and Africa. Participants also represent a wide cross-section of company sizes, with 25% posting annual revenue of over US$5bn per year.

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Digital Taylorism: Amazon's chief rejects depiction of "soulless, dystopian workplace"
Most surviving startups do not grow; Tiny number powers jobs engine
Despite euro dip China & US remain most competitive manufacturing nations
Business startup rates up in most OECD countries led by Australia and UK
NASA's Kepler mission has confirmed the first near-Earth-size planet
Energy subsidies at 6.5% of global GDP; Commodity prices to remain weak
US startups rely on personal savings, debt; Venture capital funds less than 1%
Europe produces 13 $1bn+ "unicorn" startups in one year; London is Europe's digital capital
Irish-based firms raised €120m in VC funding in Q1 2015; Some top recipients Irish for tax purposes
Ireland: Fourth highest 25-34 year old ratio of third-level graduates in developed world: So what?
Business dynamism/ employer firm startups in US secular decline
Innovation Union Scoreboard 2015: Sweden, Denmark, Finland and Germany are on top
Education systems failing to provide students with skills for success in 21st century
US, Switzerland, Denmark, Sweden, Finland have best higher education systems
Handbook of Service Innovation: Ireland moving up the value chain?
Switzerland revives silk industry that thrived for two centuries
Sales of Irish tech firms create 300 millionaires in 15 years and no scaleups
Apple warns of 'material' tax payments from EU's Irish tax investigation
Apple earnings surge 33% on higher price and iPhone sales jump in China
Big Pharma's internationalisation of R&D to China
The dangers of romanticising entrepreneurs despite key role
UK and Irish business R&D heavily reliant on foreign-owned firms
Silicon Valley and the development of the silicon microchip - Part 2
Ireland: Innovation with or without R&D/ scientific breakthroughs
UK government most open/ transparent in world; Ireland & Greece lowest ranking in Europe
10 questions about Switzerland's Solar Impulse aircraft – answered
Silicon Valley loses its silicon; Typical household income stagnates - Part 1
21st century skills are 18 century skills + a computer
Growing ICT sector in Europe accounts for 5% of employment
Should Ireland copy Singapore's scientific research investment plan?
Startups vs Scaleups: 4% of UK startups have 10+ employees 10 years later
Irish patent filings at European Patent Office fell in 2014
Facebook's maze of privacy settings maybe in breach of European law
Apple to invest €1.7bn in Irish and Danish data centres
Silicon Valley insider warns of dodgy $1bn valuations of private companies
Israel's Startup Nation not a jobs engine; Nor is Irish high tech
Established industries often beat new technology investment returns
Ireland: Noonan said EU to drop Apple tax case; Now expects court case
Irish R&D Tax Credit: No evidence of rising business innovation; Facts don't matter
Apple reports biggest profit of a public company in history