When determining “Who Are Our Customers”, you are once again faced with a choice: which customer groups (and geographies) do we place more emphasis on in the future, and which deserve less of our attention?
The first step in answering this question is acquiring a clear understanding of your current group of customers by reviewing standard metrics such as: customer satisfaction, loyalty, profitability by customer group, retention, and market share.
It’s also vital to experience things from your customers’ point of view in order to glean insights not visible from within the walls of your corporate headquarters. In “Roadmaps and Revelations” Sydney explains to Rory how New York City cleaned up the “Electric Sewer” by doing just that.
The upscale beauty company Estee Lauder, which controls 29 brands including the iconic MAC and Clinique, is currently examining this question, and making strategic choices as a result. Chief Executive Fabrizio Freda has stated that reducing the company's dependency on declining U.S. department stores, which accounted for nearly one-third of Estée Lauder's sales in the last fiscal year, is a top priority. A new geographical focus is in the works as well, as Estee Lauder plans to focus increasingly on emerging markets and Asia.
Often, responses to the questions “What do we sell?” and “Who are our customers” will be revealed in unison, as analysis on one leads to insights on both, ultimately creating answers for both queries. Consider once again, The CW. By making the strategic choice to offer programs geared to young women (What do we sell?) they are simultaneously committing to young women as their core customer group.
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