Tuesday, April 28, 2009

a new covenant for CRM in Agribusiness


Integrated Direct Marketing

Supports the New Covenant

Achieving sustainable competitive advantage and profitability as we

move into the 21st century requires that we are truly value-oriented and customer focused.

Information and technology and the sensitive use of both hold great

promise for us as marketers, providing the platform upon which to build a

better understanding of our customers' unfulfilled needs. Moreover, with the advance in technology and data capture

as it pertains to everything our growers and producers have done, are doing and intend to do, sensitive use of this data in the context of providing value and building genuine relationships is a reality agribusiness marketers can enjoy in ways very other B2B industries can!

Rather than use this information technology platform to build a fortress to protect your own territory, use it as

an engine to drive targeted direct customer dialogue that collectively support manufacturer, distributor, and dealer. Jointly sponsor and analyze customer needs re s e a rch with your channel partners so you discover customer needs t o g e t h e r, then create a relational database to drive your joint marketing effort. This builds mutual trust, and establishes the foundation

to define what you need to do "t o g e t h e r" in order to fulfill these customer needs and to provide relevance and value in the transaction and service delivery. The expected outcome is a clear demonstration of listeningto customers, and, in turn, greater profits to all channel partners.

We jointly succeed as manufacturer, distributor, or dealer only by providing relevant value. The key for all companies in the 21st century

will be to deliver relevant value to their customers across every point in the value delivery chain. For many of us, delivering relevant value means getting closer to our customers through relationship marketing. That is, using integrated direct marketing which has, as its heart, technology, and, as its soul, a basic sensitivity to people. Customer sensitivity as a value means that we must with align with

our channel partners under a new covenant of doing business. In order for all to be successful, channel partners must collectively understand the wants and needs of our end-user customers better than anyone else, and excite and delight those customers by providing outrageous service and customer-defined value at eve ry point of contact.

For those of us who go to market through a two- or three-step distribution

channel, this marketing approach requires internalizing

several vital concepts:

1. The customer in this new marketing paradigm is not the distributor

or dealer; it is the farmer, the grower or producer.

2. Conflict between members of the distribution channel is unacceptable

for our mutual success.

3. Value needs to be redefined from the perspective of our mutual

end users.

4. Retention of customers is the single most profitable way to grow

our business, and as such, it needs to be separated from customer

acquisition and carry the highest priority.

Like many distribution pathways, agribusiness faces the monumental challenge of dissipating the conflict which has characterized the

question, "Who is our customer?" Today, now that we do know who our real customer is, let's get past the conflict and rise to our new

covenant together.

Communities, Neighborhoods, and Passports

A Civil Way of Doing Business


National Center for Direct Marketing

Conference

July 26-28, 1995 Chicago, Illinois

Growing Sales by Managing

the Channels to Farmers

Presenter: Nick Poulos

As product quality and perfo rmance issues reach pari t y, the bond

b e t ween channel partners is one critical area where true diffe r e n t i a t i o n

can be created. M a nu facturers can assist their channel partners to target

c u s t o m e r s. In order to accomplish this, ri va l ries about who owns the customer

must be remove d .


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