eringilliam: customer-listening*

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  1. The results of Gartner’s 2017-2018 CMO Spend Survey are in, and the news is not all good.

    For the first time in three years, growth in marketing budgets has decreased, placing marketers on the hook to justify financial investments and demonstrate solid ROI for existing activity. In this more restrictive environment, Gartner finds marketers are increasingly turning their focus to existing customers, with a spending ratio of 2-to-1 in favor of retention over acquisition. Because of those trends, chief marketing officers are keeping customer experience (CX) programs at the top of their priority lists and they are expecting such initiatives to deliver measurable returns.
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  2. Businesses invest money and time on outside market research firms that bring together focus groups for product testing. The resulting feedback from a very small sample of prospective customers is frequently incorporated across business operations from product development to messaging and go-to-market strategy, indiscriminately. On top of all that, vocal executive teams will also want to weigh in on the process. In the end, the marketing team has blown a hole in their budget and makes major bets based on third-party recommendations.
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  3. In an article for Bloomberg Technology, Fred Reichheld (whose work at Bain and Company has resulted in widespread use of Net Promoter Score® surveying methodology) notes he is also survey fatigued. As such, it is important to remember that the art of customer listening emulates a lesson from the children’s story Goldilocks and the Three Bears. Soliciting customer feedback can be too much, too little, or just right.
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