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September 15, 2004

Customer Learning Curve



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The Customer Learning Curve
by Karl Hellman, Ardis Burst

Review
by Therese Padilla

Several years ago, when we were forming the AIPMM, I asked a colleague (who was a developer) to look at our first web site. Expecting him to come back with glowing praise, I was embarrassed when I received a long list of criticisms. On the top, in big, bold letters, was the word CUSTOMER. He remarked that he had done a search on the pages for the word customer and found zero (0) results. Now, one could argue that I didn't need to insert the word customer in our web pages to be customer centered, but I got his point. I was reminded of this lesson when I picked up The Customer Learning Curve. The goal of the book is to teach any marketing manager how to create profits from marketing chaos.

In the middle of that chaos, sits the customer; whom marketers struggle to understand. In the quest of understanding, a company will launch an initiative to become customer-centric. CEO's urge their marketing staffs and managers to talk to customers regularly. They purchase books and attend workshops about customer-centric requirement building, relationship marketing, and placing the customer at the center of the business strategy. Guess what? For $39.00 ($27 from Amazon -- look at the button on the left) a company can use this book and put a handsome amount in the kitty for the product managers' bonuses.

The Customer Learning Curve (CLC) approach has two major components, the first one is Customer Insight. Customer Insight can be boiled down to simply remembering "the most important marketing process is the one that goes on in the customer’s mind." The second component of CLC are the Financial Models. The financial models present a customer-oriented framework for determining which tools and marketing investments will deliver the most impact on revenue and profit. The financial models consists of eight steps measuring customers’ mental and buying process: Need, Awareness, Access, Motivation, Purchase, Know-how, Experience value, Retention/Loyalty.

This methodical and mathematical approach builds on these eight separate processes. CLC is filled with case studies that have been garnered from the authors’ years of working with strategic marketers. There are also exceptional case studies and examples. One of the great features of the book is the Customer Learning Curve Model which is live on the author's web site. If you jump to http://www.resultrek.com/curve/ you can use this modeler to evaluate the effectiveness of your marketing efforts. However, you need the book to interpret the results to refine each metric.

I highly recommend this book for all product managers and product marketing managers.

Book Description
The Customer Learning Curve examines every aspect of selling a product or service from the customer’s point of view. It enables you to take an integrated, customer-centered approach and help move the customer through the learning curve more effectively. It helps you cope with too many choices, deal effectively with disruption, make midcourse corrections, assess the progress of a new product or service, and assist top management in making good choices. Companies need a strong model for understanding customers, but their approach is often piecemeal because each department focuses on a different component – technology, price, service, communications, and distribution. This book starts with the premise that a company’s most important marketing process is the one that goes on in the customer’s mind. From the customers’ perspective, the company’s division of labor is irrelevant: The mental process of learning about, deciding to buy, purchasing, and using a product or service is a single continuum. That continuum is the Customer Learning Curve (CLC), that ranges from customers having a need (but perhaps not even knowing it) to being loyal -- repeat users. The CLC is a proven model, grounded in years of research and consulting with business-to-business and consumer goods companies—companies that have consistently achieved breakthrough results from their CLC-guided marketing efforts. This book will give you the information you need to join these marketing success stories and make the CLC work for your business.

Posted by Therese at 8:34 AM

August 13, 2003

In Search of Stupidity





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There are lessons in failure and Rick (Merrill) Chapman thinks that by sharing his experience in his latest book, "In Search of Stupidity: Over 20 Years of High-Tech Marketing Disasters" mistakes can be avoided. I am not so sure. Make no mistake about it, I love the book. I will read the book over and over and recommend it to friends, colleagues, AIPMM vistors and association members. The problem is, I've been to the puppet show. I have seen the strings. I know that I can replace every person in each chapter of the book with the current list of "who's-who" and smililar mistakes will happen. It's the nature of the beast. Success breeds know-it-alls. Fast growth covers up weak foundations.

Co-misery loves company

Ok. Call me cynical. Reading this book is a great release of frustration. Especially if you are currently working in an environment where you have a high-profile leader (ala Phillipe Khan) or low energy leader (ala Ed Esber). This book will make you laugh and think, both at the same time. You will experience moments of "ah-ha, that's what happened". But at the end of the day, Jim Manzi, Ed Esber and Ray Norda all parachuted out with more money than some countries in developing nations.


High-Tech Trainwreck

Rick describes several high-tech marketing trainwrecks, however the lessons that can be derived from this book are not limited to this industry. This is an important book to share in any industry. Share it with your sales team, development (however, they will use it as validation--that it is all marketing's fault), marketing, and your local schools. And more importantly, share it with your family. Now you can say, "see, I really did have a bad day."

Book Description

"In Search of Stupidity" is National Lampoon meets Peter Drucker. In Search of Stupidity is a funny and well written business book that takes a look at some of the most influential marketing and business philosophies of the alst twenty years and, through the dark glass of hindsight, provides a educational and vastly entertaining examination of why they didn't work. And make no mistake, most of them did not work.

Richly illustrated with cartoons and reproductions of many of the actual campaigns used at the time marketing wizard Richard Chapman takes readers on a hilarious ride through the last twenty years. Filled with personal anecdotes spanning Chapman's remarkable career (he was present at many now famous meetings and events) "In Search of Stupidity" takes a no holds barred look at the uncreative and hopeless marketing ideas surrounding the technology industry. It offers clear, detailed analysis of what happened, why, and what you can do to avoid acting stupidly in the future.

Posted by Therese at 6:57 AM

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