What is “outside in” marketing?
In essence "outside in" marketing is starting with the customer first. All definitions of marketing talk about satisfying customer needs but why do so many organisations not use this as the starting point or have all the right customer intentions but then lose the focus?
Marketing facilitates the exchange process between company and customer. Value starts with the customer and works back into the company so it is vital to change from product-focused "inside out" thinking to customer-focused "outside in" thinking.
With the digital age the power really does rest with the customer so it is no longer producers selling stuff to buyers it is buyers identifying what they need and who they want to buy that from. More than that it is about customers determining what type of communication they want and from whom - the growth of permission marketing is a testament to this trend.
To help you become "outside in" focused or to enhance your existing customer orientation contact us now.
| Inside Out Focus | Outside In Focus |
|---|---|
| Strategic Imperatives | Customer Management Strategy |
| Broad, long-term routes to achieving objectives - often not focused on customers or prospects | The management of the exchange or co-creation of value between you and your customer. Value starts with the customer |
| Product Portfolio | Customer portfolio |
| Sets of products produced by an organisation | Sets of customers you serve who buy your products or use your service |
| Product life cycle | Customer life cycle |
| The stages of development that a typical product goes through from introduction to withdrawal | The stages of development of your customer both in terms of loyalty but also in terms of changing needs and wants through life |
| Product metrics | Customer metrics |
| Measures of product and market shares | Measures of share of your customer and share of their wallet |
| Best practice | Innovation & differentiation |
| Copy and follow | Create a point-of-difference and lead |
| Improve company returns | Improve customer returns |
| Focus on company metrics, often the bottom line | Without a top line there is no bottom line - get the customer bit right and the financial benefits will follow |
| Design product | Design customer experience |
| Concentration on product and packaging design | Focus on what's in it for your customer, how will they buy it, use it, repair it, dispose of it? |
| Carry out transactions | Co-create with customers |
| Focus on one-off transactions. Produce and sell | Develop products and services with your customers. Co-create value |
| Communication | Dialogue |
| Broad focus and one way | Encourage and obtain feedback via relevant one-to-one communication |
| Supply chain | Alliances and partners |
| Focus on managing the supply chain often to drive out cost | Who can help affect and enhance your customer's experience, who should you work with for the common good of your customers? |
| Channel Management | Situational touchpoints |
| Managing the process of how the product gets to market | Concentrating on each and every occasion your customer comes into contact with you |
| Cost to produce | Cost to serve |
| Product cost focus | Understanding the costs, but more importantly the benefits, of improved customer service |
| Stand alone | Integration |
| Too many business activities and functions disconnected | Joined up thinking, seamless connections throughout the organisation all with a customer focus |
| Internal communication | Staff collaboration |
| As with consumer communications an inside out focus is on just delivering information to staff | Staff are actively involved, encouraged and rewarded to improve customer focus and experience |
| Features | Benefits |
| Promote product and service features | Explain how your customer will benefit |