Alan Mitchell’s article (MW March 29) pointing out the need for win-win solutions to sustain the effectiveness of advertising to consumers touches on the importance of a mutually acceptable value exchange between a company and its customers.
As the world becomes more competitive, only those companies that have invested in, understand and can evaluate their customer dialogue, will succeed in communicating and developing products and services to the satisfaction of both parties.
Loyalty is created only when mutual value is exchanged over a period of time. The process comes from understanding perceived value (what each customer or customer segment gets from the brand) and received value (what the brand gets from each customer). This is where I agree with Alan Mitchell that in future, advertising has to be a win for the consumer if it is to be effective for the seller. If this seems an obvious point, look around you at the frequency with which this does not happen.
Develop your product, service and communications based on an understanding of value exchange and in return you will be rewarded with the attention, permission, involvement and ultimate loyalty that supports the commercial success of your brand.
The Interactive Agency