Customer Centricity

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Glossary

Clarify the terms still open for you around customer relations with the help of appropriate descriptions and discover interesting aspects from all areas of Customer Intelligence.

A

Agile project management is an iterative development methodology that values human communication and feedback, adapting to change, and producing working results.

A highly agile organization reacts successfully to the emergence of new competitors, rapid advancements in technology and sudden shifts in overall market conditions.

The Ansoff Matrix (also product-market matrix) is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. It is named after Russian American Igor Ansoff, an applied mathematician and business manager, who created the concept.

B

Business Model Canvas is a strategic management and lean startup tool for developing new or documenting existing business models. It is a visual chart with elements describing a company’s or product’s value proposition, infrastructure, customers, and finances.

A buyer persona (also customer persona) is a semi-fictional representation of your ideal customer based on market research and real data about your existing customers. When creating your buyer persona(s), consider including customer demographics, behavior patterns, motivations, and goals.

A buying center, also called decision-making unit (DMU), brings together all those members of an organization who become involved in the buying process for your particular product or service. The concept of a DMU was developed in 1967 by Robinson, Farris and Wind.

C

Category design is a business strategy and discipline that helps your company create, develop, and dominate new categories of products and services. Category design extends beyond a leadership team’s narrower focus on products, company culture and business models.

Churn rate, in its broadest sense, is a measure of the number of customers or users leaving your customer base. It is one of two primary factors that determine the steady-state level of customers a business will support.

Customer Acquisition Cost (CAC) as a unit economic is the cost associated in making one customer to buy a product/service. This cost is incurred by the organization to convince a potential customer. This is an important business metric.

Customer analytics is a process by which data from customer behavior is used to help taking your key business decisions via market segmentation and predictive analytics. This information is used for direct marketing, site selection, and customer relationship management.

Customer Centricity is a concept in sales, marketing and product development placing your customer and not the product in the center of attention. Customer Centricity defines the value chain in such a way that it starts with the customer: the expectations, needs and wishes of the customer thus form the starting point for marketing measures.

Customer churn, also known as customer attrition, customer turnover, or customer defection, is the loss of your clients or customers.

A customer data platform is software that creates a persistent, unified customer database that is accessible to other systems. Data is pulled from multiple sources, cleaned and combined to create a single customer profile. This structured data is then made available to other marketing systems.

Customer development is a process, a formal methodology actually for building startups and new corporate ventures. It is one of the three parts that make up a Lean Startup. The process assumes that early ventures have untested hypotheses about their customers and business model. This methodology can also be used by large companies to better understand their customers.

Customer Discovery as one part of Customer Development is about understanding customers and their needs that you may be able to satisfy.

Customer empathy is all about understanding your customers on a deeper level; who they are, what they’re going through and what their motivations are. It’s about delivering a delightful experience which anticipates customer needs and meets them before they’re needed because you understand the problem’s impact.

A Customer Empathy Map is a tool used when collecting data about your customers to better understand target customers. It allows you to visualize customer needs, condense customer data into a clear, simple chart, and help you see what customers want — not what you think they want.

Customer engagement is a business communication connection between your external stakeholder and your organization through various channels of correspondence. This connection can be a reaction, interaction, effect or overall customer experience, which takes place online and offline.

Customer expectations refers to the perceived value or benefits that your customers seek when purchasing a good or availing your service or product. They are the result of the ‘learning’ process and can be formed very quickly because even first impressions matter a lot.

Customer experience is the result of interaction between your organization and a customer over the duration of your relationship.

Customer feedback is information provided by your customers about whether they are satisfied or dissatisfied with a product or service and about general experience they had with your company.

Customer Forces Canvas is a tool created by Ash Maurya to validate/invalidate assumptions you have with your customer’s current and future situation. It has the elements of inertia and friction that holds customers to their current solution.

Customer Happiness is when your customer is completely content with your product, and has no issue with it or its involvement with their business.

A customer insight, or consumer insight, is interpretation and deriving trends in human behaviors which aims to increase effectiveness of a product or service for the consumer, as well as increase sales for the financial benefit of those provisioning the product or service.

Customer Intelligence ist der Prozess, um Informationen über Deine Kunden, deren Details und Aktivitäten zu sammeln und zu analysieren, um tiefere und effektivere Kundenbeziehungen aufzubauen und die Entscheidungsfindung der Anbieter zu verbessern.

Customer interviews are a great way to go deep into the needs of a specific persona or customer type. You get to ask specific questions that’ll generate information you need to make decisions about your product or service.

The customer journey is the sum of experiences that customers have when interacting with your company and brand. Instead of looking at just a part of a transaction or experience, the customer journey documents the full experience of being a customer.

A customer journey map is a visual representation of every experience your customers have with your product or service. It helps to tell the story of a customer’s experience with your brand from original engagement and into hopefully a long-term relationship.

Customer lifecycle management (also CLM) is the measurement of multiple customer-related metrics, which, when analyzed for a period of time, indicate performance of your business.

Customer lifetime value, lifetime customer value, or life-time value (LTV) is a prediction of the net profit attributed to the entire future relationship with your customer.

Customer loyalty is the result of consistently positive emotional experience, satisfaction and perceived value of an experience by your customer, which includes the product or services.

A customer need is a motive that prompts your customer to buy a product or service. Ultimately, the need is the driver of the customer’s purchase decision.

A customer persona (also known as a buyer persona) is a semi-fictional archetype representing the key traits of a large segment of your audience, based on the data you’ve collected from customer insights analytics.

A customer profile is a description of your business’ customers based on their demographics, backgrounds, hobbies, and interests. Businesses that offer ongoing services, as well as subscription-based and product-based businesses, should use customer profiles.

Customer relations are a company’s interaction with your current and potential customers. It uses data analysis about customers’ history with a company to improve business relationships with customers, specifically focusing on customer retention and ultimately driving sales growth.

A customer relationship is your company’s interaction with current and potential customers. You improve business relationships with customers, specifically focusing on customer retention and ultimately driving sales growth.

Customer relationship management (CRM) is an approach to manage your company’s interaction with current and potential customers. It uses data analysis about customers’ history with a company to improve business relationships with customers, specifically focusing on customer retention and ultimately driving sales growth.

Customer retention refers to the ability of a company or product to retain its customers over some specified period. High customer retention means customers of the product or business tend to return to, continue to buy or in some other way not defect to another product or business, or to non-use entirely.

Customer retention management is the process of managing your customer experience and customer satisfaction efforts within your organization, with the ultimate goal of keeping the customers you acquire for as long as possible.

Customer Retention is the process of building strong relationship to your customers in order to hold them from churning or leaving your customer base. The technology used for it to enable churn prevention is often called customer retention technology.

Customer satisfaction is a term frequently used in marketing and product context. It is a measure of how your products and services supplied by a company meet or surpass customer expectation.

Customer success management is the process of overseeing and maintaining a customer success strategy to proactively assist, delight, and support existing customers.

Customer support is a range of customer services to assist your customers in making cost effective and correct use of a product. It includes assistance in planning, installation, training, troubleshooting, maintenance, upgrading, and disposal of a product.

The customer touchpoint analysis discovers touchpoints between your company and your customers during the customer journey. The touchpoint might be on stage (visible) and off stage (invisible for you).

A customer value proposition is the sum of benefits your customer will receive when using your products or services.

Customer Validation is a series of phase-gated, customer-facing product tests that collectively provide comprehensive coverage of your product quality, interoperability, and UX during the final stages of development and throughout product maturity.

D

Design Thinking is your systematic, human-centered approach for solving complex problems within all aspects of life.

Digitalization integrates digital technologies into everyday life by the digitization of everything that can be digitized. The literal meaning of digitalization gives an apparent idea of development and technology dependent world.

Digital Transformation is the use of fast, new and frequently changing digital technology to solve problems. It often utilizes cloud computing, reducing reliance on user owned hardware but increasing reliance on subscription based cloud services.

A disruption is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances.

G

Go-to-market or go-to-market strategy is the plan of your organization, utilizing your inside and outside resources, to deliver unique value proposition to customers and achieve competitive advantage when entering a market or launching a product.

A Go-To-Market plan is a strategic action plan specifically focused on your steps needed to move in a new direction. This could be entering a new market, launching a new product, or re-launching a company after a merger or carve-out.

Growth is the increase or size of your market, customer base or user base for a product or service over time. It is typically measured as the percentage change in total usage or sales in an industry or product category.

A growth strategy is the plan of action that allows you to achieve a higher level of market share than you currently have. Contrary to popular belief, a growth strategy is not necessarily focused on short-term earnings—growth strategies can be long-term, too.

I

An ideal customer profile is a hypothetical description of the type of customer that would reap the most benefit from your product or solution. These customers tend to have the quickest, most successful sales cycle, the greatest customer retention rates and the highest number of evangelists for your brand.

Innovation in its modern meaning is “a new idea, creative thoughts, new imaginations in form of device or method”. Innovation is often viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs.

L

Lean startup is a methodology for developing businesses and products that aims to shorten product development cycles and rapidly discover if a proposed business model is viable.

P

Pain Point is a specific problem that prospective customers of your business are experiencing. In other words, you can think of pain points as problems, plain and simple. Like any problem, customer pain points are as diverse and varied as your prospective customers themselves.

Positioning refers to the place that your brand occupies in the minds of the customers and how it is distinguished from the products of the competitors.

Predictive analytics encompasses a variety of statistical techniques from data mining, predictive modelling, and machine learning, that analyze current and historical facts to make predictions about future or otherwise unknown events.

Problem/solution fit (also problem-solution fit) means how your developed solution is accepted by your customers to match their problem they are currently having.

In business and engineering, product development covers the complete process of bringing your new product to the market.

Product/market fit, also known as product-market fit, is the degree to which your product satisfies a strong market demand. Product market fit has been identified as a first step to building a successful venture in which the company meets early adopters, gathers feedback and gauges interest in its product.

S

Sales Battlecards are short, sales-ready documents that provide sales teams with an understanding of your own company’s storyline and a specific competitor’s marketing strategy, key sales messages, product information, and tactical value propositions to use when communicating your unique selling proposition.

A scaleup (company) or scale-up is a company who has an average annualized return of at least 20% in the past 3 years with at least 10 employees in the beginning of the period.

Scrum is an agile process framework for managing complex knowledge work, with an initial emphasis on software development. It has also been used in other fields and is slowly starting to be explored for other complex work, research and advanced technologies.

A startup or start up (also start-up) is a company or project initiated by an entrepreneur to seek, effectively develop, and validate a scalable business model.

A storyline in marketing and product context is a stringent and from your customer understandable story going from a situation now to a future situation your customer can immerse herself.

Storytelling is the social and cultural activity of sharing stories, sometimes with improvisation, theatrics, or embellishment used in marketing and product context.

T

Touchpoints can be defined as any way a customer can interact with your business, whether it be person-to-person, through a website, an app or any form of communication.

U

A unique selling proposition (USP) refers to the unique benefit exhibited by your company, service, product or brand that enables you to stand out from competitors.

123

The 360-degree customer view is the idea, sometimes considered unattainable, that your company can get a complete view of your customers by aggregating data from the various touch points they may use to contact your company to purchase products and receive service and support.

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