by Tiffani Bova
Existing customers are 50 percent: Khalid Saleh, “Customer Acquisition vs. Retention Costs—Statistics and Trends,” Invesp, n.d., www.invespcro.com/blog/customer-acquisition-retention/.
Sixty percent of global consumers: “Global Consumers More Likely to Buy New Products from Familiar Brands,” Nielsen.com, Press Room, January 22, 2013, www.nielsen.com/us/en/press-room/2013/global-consumers-more-likely-to-buy-new-products-from-familiar-b0.html.
In the consumer products: Richard Kestenbaum, “How the Beauty Industry Is Adapting to Change: The Business Plans,” Forbes, June 20, 2017, www.forbes.com/sites/richardkestenbaum/2017/06/20/how-the-beauty-industry-is-adapting-to-change-the-business-plans/#6ce349d26007.
By 2025, Thomson Reuters data: Robert Rynd, “Go Global but What Are the Opportunities and Risks of Expanding into New Markets?,” Thomson Reuters, Inside Financial & Risk, November 11, 2015, https://blogs.thomsonreuters.com/financial-risk/risk-management-compliance/go-global-but-what-are-the-opportunities-and-risks-of-expanding-into-new-markets/.
One in three hundred products: “New Product Development,” Frost & Sullivan, n.d., https://ww2.frost.com/consulting/growth-processes/new-product-development/.
“Don’t find customers”: Seth Godin, “First, organize 1,000,” Blogpost, December 23, 2009, http://sethgodin.typepad.com/seths_blog/2009/12/first-organize-1000.html.
Forbes’s Top Ten: “The World’s Most Innovative Companies,” Forbes, n.d., https://www.forbes.com/innovative-companies/#75db2d541d65.
World’s Most Innovative Companies: Forbes Staff, “Forbes Releases Seventh Annual List of the World’s Most Innovative Companies,” August 8, 2017, www.forbes.com/sites/forbespr/2017/08/08/forbes-releases-seventh-annual-list-of-the-worlds-most-innovative-companies/#745616884373.
“[Millennials] create a community”: Richard Kestenbaum, “How the Beauty Industry Is Adapting to Change,” Forbes, June 19, 2017, www.forbes.com/sites/richardkestenbaum/2017/06/19/how-the-beauty-industry-is-adapting-to-change/#4b04d06a3681.
But independent brands: Ibid.
In the United States, “women are”: Fabrizio Freda, president and CEO of Estée Lauder, quoted in ibid.
“Ever since I was probably fifteen”: “Kylie, the Entrepreneur,” Shopify.com, n.d., https://www.shopify.com/kylie.
“526 million posts that relate to the beauty industry”: “The Beauty Industry Faces a New Reality,” Artémia, September 29, 2017, http://artemia.com/beauty-industry-faces-new-reality/.
“Younger generations are”: Kestenbaum, “How the Beauty Industry Is Adapting to Change.”
#57 on the Fast Company list: P. Claire Dodson, “How Kylie Jenner Built a Makeup Empire Out of Her Most Famous Asset,” Fast Company, May 15, 2017, www.fastcompany.com/40413114/how-kylie-jenner-built-a-makeup-empire-out-of-her-most-famous-asset.
“Spending zero dollars is”: Quoted in Kestenbaum, “How the Beauty Industry Is Adapting to Change.”
$1 billion mark by 2022: Rachel Strugatz, “Kylie Jenner’s Kylie Cosmetics on Way to Becoming $1B Brand,” WWD, Beauty, August 9, 2017, http://wwd.com/beauty-industry-news/beauty-features/kylie-jenner-cosmetics-to-become-billion-dollar-brand-10959016.
“It’s very important”: Josh Cable, “For John Deere, Customer Input Drives Product Development,” AmericanCity&County.com, Government Product News, October 27, 2008, americancityandcounty.com/news/john-deere-customer-input-drives-product-development.
“OK, Houston, we’ve had”: Futurism Staff, “How Apollo 13 Avoided Disaster,” Futurism, n.d., https://futurism.media/how-apollo-13-avoided-disaster.
“Neither RedBox nor Netflix”: “Blockbuster CEO: Redbox, Netflix ‘Not on Radar Screen’ as Competition,” Inside Redbox, December 11, 2008, www.insideredbox.com/blockbuster-ceo-redbox-netflix-not-on-radar-screen-as-competition.
“We don’t have any concern”: Mark Zoradi, quoted in February 2016 in “Foot in Mouth: 42 Quotes from Big Corporate Execs Who Laughed Off Disruption When It Hit,” CBInsights, Research Briefs, February 2, 2018, www.cbinsights.com/research/big-compay-ceos-execs-disruption-quotes.
Enron chose to terminate: Anne Marie Squeo and Bruce Orwall, “Enron and Blockbuster Terminate Partnership for Video-on-Demand,” Wall Street Journal, March 12, 2001, https://www.wsj.com/articles/SB984181374790463655.
Netflix today faces: Brooke Barnes, “Disney Makes $52.4 Billion Deal for 21st Century Fox in Big Bet on Streaming,” New York Times, DealBook, December 14, 2017, www.nytimes.com/2017/12/14/business/dealbook/disney-fox-deal.html.
“Great companies are”: “Tesla Motors CEO Elon Musk: ‘Great Companies Are Built on Great Products,’” Knowledge@Wharton podcast, May 13, 2009, http://knowledge.wharton.upenn.edu/article/tesla-motors-ceo-elon-musk-great-companies-are-built-on-great-products.
PATH 5 CUSTOMER AND PRODUCT DIVERSIFICATION
“Taking an established American brand”: “Mondele¯z International CEO Irene Rosenfeld on Strategy in the Global Snack Market,” Yale School of Management, Recent News, May 1, 2014, http://som.yale.edu/news/2014/05/mondel%C4%93z-international-ceo-irene-rosenfeld-strategy-global-snack-market.
Almost two-thirds: “Looking to Achieve New Product Success?,” Nielsen.com, June 2015, www.nielsen.com/content/dam/nielsenglobal/jp/docs/report/2015/Nielsen%20Global%20New%20Product%20Innovation%20Report%20June%202015.pdf.
Consumers want more new: Ibid.
value of global goods trade: “What Are the Prospects for Global Trade Growth?,” Global Economy Watch, October 2014, www.pwc.com/gx/en/issues/economy/global-economy-watch/assets/pdfs/global-economy-watch-october-2014.pdf.
Southeast Asian economies: Ibid.
“I believe the auto industry”: Joann Muller, “Davos 2016: GM Boss Sees a Revolution in Personal Mobility,” Forbes, January18, 2016, www.forbes.com/sites/joannmuller/2016/01/18/davos-2016-gm-boss-sees-a-revolution-in-personal-mobility/#52c59b8646bf.
Amazon had to write down: Taylor Soper, “Ouch: Amazon Takes $170M Write-Down on Fire Phone,” GeekWire, October 23, 2014, www.geekwire.com/2014/amazon-takes-170m-loss-fire-phone/.
“Companies are successful”: Bruce Rogers, “John Chambers on Market Transitions and Managing Change,” Forbes, May 15, 2017, www.forbes.com/sites/brucerogers/2017/05/15/john-chambers-on-market-transitions-and-managing-change/2/#2abc9f3c5a52.
For many consumer entertainment: Christopher A. H. Vollmer, “How to Make Entertainment and Media Businesses ‘Fan’-tastic,” Strategy+Business 87, Summer 2017, May 8, 2017, https://www.strategy-business.com/article/How-to-Make-Entertainment-and-Media-Businesses-Fan-tastic.
Marvel took home: Mike Sampson, “How Marvel Risked Everything to Go from Bankruptcy to Billions,” ScreenCrush, April 23, 2016, http://screencrush.com/marvel-bankruptcy-billions/.
“the once unthinkable acquisition”: Barnes, “Disney Makes $52.4 Billion Deal for 21st Century Fox in Big Bet on Streaming.”
“The price of inaction”: Margaret Steen, “Meg Whitman: How We Grew eBay from 30 to 13,000 Employees,” Stanford Graduate School of Business, Insights, May 1, 2006, www.gsb.stanford.edu/insights/meg-whitman-how-we-grew-ebay-30-13000-employees.
By 2012, PayPal represented: Will Ashworth, “Ebay-Paypal: A One-in-a-Million Deal,” InvestorPlace, April 15, 2013, https://investorplace.com/2013/04/ebay-paypal-a-one-in-a-million-deal/#.Wiyo2UpKuUk.
PayPal was once again: Jonathan Chadwick, “eBay Takes Control over Online Payments by Ditching PayPal,” ZDNet, February 2, 2018, www.zdnet.com/article/ebay-takes-control-over-online-payments-by-ditching-paypal/?utm_content=buffer7d6cc&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer.
By 2020, the global payments: McKinsey Financial Services Practice, “Global Payments 2016: Strong Fundamentals Despite Uncertain Times,” McKinsey & Company, September 2016, www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/A%20mixed%202015%20for%20the%20global%20payments%20industry/G
lobal-Payments-2016.ashx.
“My goal is to”: “2016 Words of Wisdom: The CEO Edition,” PYMNTS.com, December 26, 2016, www.pymnts.com/news/payments-innovation/2016/2016-words-of-wisdom-the-ceo-edition/.
a suite of targeted products: Dan Schulman, “PayPal’s CEO on Creating Products for Underserved Markets,” Harvard Business Review, December 2016, https://hbr.org/2016/12/paypals-ceo-on-creating-products-for-underserved-markets.
“Successful product launches”: “Consumers in Developing Countries Are More Likely to Be ‘Early Adopters’ of New Products,” Nielsen.com, Press Room, June 23, 2015, www.nielsen.com/us/en/press-room/2015/consumers-in-developing-countries-are-more-likely-to-be-early-adopters-of-new-products.html.
“Belief in oneself”: Attributed to Lydia Maria Child, original source unknown.
“every second, seven new boxes”: James Delingpole, “When LEGO Lost Its Head—and How This Toy Story Got Its Happy Ending,” Mail Online, December 18, 2009, www.dailymail.co.uk/home/moslive/article-1234465/When-LEGO-lost-head—toy-story-got-happy-ending.html.
In 1999, LEGO decided to cut: Alexandra Gibbs and Carolin Roth, “How LEGO Built Itself Back Together Again,” CNBC, November 9, 2016, www.cnbc.com/2016/11/09/how-the-LEGO-group-built-itself-back-together-again.html.
LEGO hit a growth stall: Jacob Gronholt-Pedersen and Julie Astrid Thomsen, “LEGO to Cut 1,400 Staff as Decade-Long Sales Boom Ends,” Reuters, Business News, September 5, 2017, www.reuters.com/article/us-LEGO-results/LEGO-to-cut-1400-staff-as-decade-long-sales-boom-ends-idUSKCN1BG0WK.
“Suddenly the consumer”: Richard Milne, “LEGO Suffers First Drop in Revenues in a Decade,” Financial Times, September 5, 2017, www.ft.com/content/d5e0b6b0-9211-11e7-a9e6-11d2f0ebb7f0.
LEGO has increased sales: “LEGO Expands to Beat Supply Chain Bottlenecks,” Euronews, June 9, 2016, http://www.euronews.com/2016/09/06/LEGO-expands-to-beat-supply-chain-bottlenecks.
10 percent growth in sales: “Global LEGO Group Sales Grew 10% in First Half of 2016,” LEGO.com, LEGO Newsroom, September 6, 2016, www.LEGO.com/en-us/aboutus/news-room/2016/september/interim-result.
“whether we will grow the next two years”: Jacob Gronhold-Pedersen and Julie Astrid Thomsen, “LEGO to cut 1,400 staff as decade-long sales boom ends,” Reuters, September 5, 2017, https://www.reuters.com/article/us-LEGO-results/LEGO-to-cut-1400-staff-as-decade-long-sales-boom-ends-idUSKCN1BG0WK LEGO.
Inge Thulin, president and CEO: Michelle Caruso-Cabrera, “3M CEO: Research Is ‘Driving This Company,’” CNBC.com, June 10, 2013, www.cnbc.com/id/100801531.
According to Harvard: Kurt Schroeder, “Why So Many New Products Fail (and It’s Not the Product),” Business Journals, March 14, 2017, www.bizjournals.com/bizjournals/how-to/marketing/2017/03/why-so-many-new-products-fail-and-it-s-not-the.html.
PATH 6 OPTIMIZE SALES
“Work smarter . . . not harder,”: Attributed to Allan H. Mogensen.
Sixty-four percent of consumers: “Global Brand Simplicity Index 2017,” Siegel+Gale, 2017, http://simplicityindex.com/.
Only about 22 percent: Conversion Rate Optimization Report 2017, Econsultancy.com, October 2017, https://econsultancy.com/reports/conversion-rate-optimization-report/.
Forty-four percent of sales organizations: Miller Heiman Group, 2017 CSO Insights Sales Enablement Optimization Report/Summary, CSO Insights, 2016, 2017, www.csoinsights.com/wp-content/uploads/sites/5/2017/10/2017-SE-Executive-Summary.pdf.
Over half of sales organizations: Ibid.
Sales teams spend an average: Stefanie Jansen, “15 Sales Statistics That Prove Sales Is Changing,” Salesforce Blog, November 17, 2017, www.salesforce.com/blog/2017/11/15-sales-statistics.html.
Overall, 5 percent of shoppers: Shelley Bransten, “How Salesforce Enabled Retailers to Power the Busiest Shopping Days of the Holiday Season,” Salesforce Blog, November 29, 2017, www.salesforce.com/blog/2017/11/salesforce-powers-cyber-week.html.
U.S. firms spend $15 billion: “How to Predict Turnover on Your Sales Team,” Harvard Business Review, July 2017, https://hbr.org/2017/07/how-to-predict-turnover-on-your-sales-team.
“Pretend that every single”: Maribeth Kuzmeski, The Connectors (Hoboken, NJ: John Wiley, 2009), Kindle edition, chapter 5.
“If I’m right”: Brian Stoffel, “America’s 10th Best CEO Will Give You an Investing Edge,” Motley Fool, March 29, 2013, www.fool.com/investing/general/2013/03/29/americas-10th-best-ceo-will-give-you-an-investing.aspx.
CRM continues to be: Louis Columbus, “Gartner Predicts CRM Will Be a $36B Market by 2017,” Forbes, June 18, 2013, www.forbes.com/sites/louiscolumbus/2013/06/18/gartner-predicts-crm-will-be-a-36b-market-by-2017/#949be3a77e31.
“How to energize”: Ken Krogue, “Behind the Cloud Part 4—The Sales Playbook,” InsideSales.com, December 12, 2009, www.insidesales.com/insider/kens-notes/behind-the-cloud-part-4/.
“there was an unrealized”: Marc Benioff, Behind the Cloud (San Francisco: Jossey-Bass, 2009), p. 73.
“The ideal way to win a championship”: Phil Jackson, in Michael Benson, Winning Words (Lanham: Taylor Trade, 2008) p. 123.
Walmart made its own foray: Portia Crowe, “IT’S OFFICIAL: Walmart Is Buying Jet.com for $3 Billion,” Business Insider, August 8, 2016, www.businessinsider.com/walmart-is-buying-jetcom-2016-8.
“Across almost all categories”: Monica Watrous, “Wal-Mart Grocery Sales Surge in Latest Quarter,” Food Business News, November 20, 2107, www.foodbusinessnews.net/articles/news_home/Financial-Performance/2017/11/Wal-Mart_grocery_sales_surge_i.aspx?ID=%7BA34B0D51-CBE8-4358-B3E3-5F9DD0B00533%7D&cck=1.
managing two very distinct channels: John Furth, “Amazon vs. Wal-Mart is shaping up to be a battle of mega-retailers,” New York Daily News, August 30, 2017.
McMillon announced a number: “Walmart CEO McMillon Outlines Vision for ‘Future of Shopping’ at Annual Shareholders’ Meeting,” Business Wire, June 2, 2017, www.businesswire.com/news/home/20170602005650/en/Walmart-CEO-McMillon-Outlines-Vision-%E2%80%98Future-Shopping%E2%80%99.
100 metropolitan areas by the end of 2018: Phil Wahba, “Walmart Grocery Availabilty Delivery Grows to Some 40% of U.S. Households,” Fortune, March 14, 2018, fortune.com/2018/03/14/walmart-grocery-3.
rose 50 percent in the United States alone: Phil Wahba, “Walmart’s U.S. Sales Blow Past Expectations Thanks to E-Commerce and Food,” Fortune, November 16, 2017, http://fortune.com/2017/11/16/walmart-results-2/.
Target acquired Shipt Inc.: Matthew Boyle, “Target to Buy Shipt for $550 Million in Challenge to Amazon,” Bloomberg Business, December 13, 2017, www.bloomberg.com/amp/news/articles/2017-12-13/target-to-buy-shipt-for-550-million-in-bet-on-same-day-delivery.
A recent announcement by Alibaba: Kesha Hannam, “Alibaba Is Spending $2.9 Billion to Challenge Walmart in China, Fortune, November 20, 2017, http://fortune.com/2017/11/20/alibaba-invests-chinas-sun-art/.
world’s second-largest bank: Laura J. Keller and Katherine Chiglinsky, “Wells Fargo Eclipsed by JPMorgan as World’s Most Valuable Bank,” Bloomberg, September 13, 2016, www.bloomberg.com/news/articles/2016-09-13/wells-fargo-eclipsed-by-jpmorgan-as-world-s-most-valuable-bank.
“Products” for the bank: Bethany McLean, “How Wells Fargo’s Cutthroat Corporate Culture Allegedly Drove Bankers to Fraud,” Vanity Fair, Hive, May 31, 2017, www.vanityfair.com/news/2017/05/wells-fargo-corporate-culture-fraud.
He had launched an initiative: Ibid.
biggest scandal in its history: “The Hard Fall of Wells Fargo’s Carrie Tolstedt,” CBS MoneyWatch, April 11, 2017, www.cbsnews.com/news/the-hard-fall-of-wells-fargos-carrie-tolstedt/.
aggressive sales targets: Jana Kasperkevic, “Wells Fargo Eliminates Sales Quotas After Unauthorized Accounts Scandal, Guardian, Banking, September 13, 2016, www.theguardian.com/business/2016/sep/13/wells-fargo-eliminates-sales-quotas-unauthorized-accounts.
3.5 million accounts: Samantha
Masunaga and James Rufus Koren, “Wells Fargo’s Estimate for Unauthorized Accounts Jumps 67%, to 3.5 Million,” Los Angeles Times, August 31, 2017, www.latimes.com/business/la-fi-wells-fargo-accounts-20170831-story.html.
Ethics have become: Mintel Press Team, “56% of Americans Stop Buying from Brands They Believe Are Unethical,” Mintel.com, November 18, 2015, www.mintel.com/press-centre/social-and-lifestyle/56-of-americans-stop-buying-from-brands-they-believe-are-unethical.
PATH 7 CHURN (MINIMIZE DEFECTION)
“The well-satisfied customer”: Attributed to J. C. Penney. Original source unknown.
A 5 percent increase: Alex Lawrence, “Five Customer Retention Tips for Entrepreneurs,” Forbes, November 1, 2012, www.forbes.com/sites/alexlawrence/2012/11/01/five-customer-retention-tips-for-entrepreneurs/#3fd0e1a85e8d.
Sixty-seven percent of consumers: Vala Afshar, “50 Important Customer Experience Stats for Business Leaders,” Huffington Post, The Blog, October 15, 2015, www.huffingtonpost.com/vala-afshar/50-important-customer-exp_b_8295772.html.
Forty-two percent of companies: Genesys, 3 Strategies to Improve the Customer Experience (Daly City, CA: Genesys, 2014), www.genesys.com/resources/3Strategies_improve_CX_EB06022014_screen_(1).pdf.
Retailers and publishers: Forbes Staff, “Investing in Customer Retention Leads to Greatly Increased Market Share, Says Forbes Insights Study,” Forbes, September 14, 2016, www.forbes.com/sites/forbespr/2016/09/14/investing-in-customer-retention-leads-to-significantly-increased-market-share-says-new-study/#78f28022472d.
CMOs invested two-thirds: Lizzy Foo Kune, James Meyers, “A Marketer’s Guide to What Is—and Isn’t—a Customer Data Platform,” Gartner for Marketers, report, March 9, 2018.
“Before going too wide”: Drew Neisser, “How Spotify Curated the Ultimate Playlist for Brand Growth,” Ad Age, March 29, 2017, http://adage.com/article/cmo-strategy/spotify-curated-ultimate-playlist-brand-growth/308452/.
“Customer churn rate is a metric”: Amy Gallo, “The Value of Keeping the Right Customers,” Harvard Business Review, October 29, 2014, https://hbr.org/2014/10/the-value-of-keeping-the-right-customers.