Podcast appearances and mentions of Peter Fader

How can a peer assessment system revolutionize employee performance evaluations?In this episode of The Hard Corps Marketing Show, Casey sits down with Dr. Peter Fader, Professor of Marketing at the Wharton School of the University of Pennsylvania and Co-Founder of Theta & Incompass Labs, to explore an innovative approach to improving employee performance evaluations. Dr. Peter Fader discusses the flaws in traditional performance measurements and introduces a new algorithm originally developed for grading student papers, now adapted for employee assessments.Dr. Peter Fader explains how this incentive-compatible peer assessment system works, correlating evaluations with employees' own performance. Used by companies like Hostelworld, the system measures employees on various dimensions such as productivity and cultural fit, ensuring honesty and accuracy. The discussion also touches on how AI can improve qualitative assessments, detect biases, and the broader implications of Employee Lifetime Value (ELTV) for team performance.In this episode, we cover:The flaws in traditional performance evaluationsHow the new peer assessment system works and its impact on employee performanceThe role of AI in reducing biases and enhancing qualitative assessmentsThe concept of Employee Lifetime Value (ELTV) and its relevance to optimizing team performanceIf you're looking to optimize your company's performance evaluation system and drive better results with data-driven insights, this episode is packed with actionable insights you won't want to miss!

Today I'm joined by Peter Fader, author, keynote speaker, and co-founder at Theta and Encompass Labs, for a fascinating discussion on how to develop your company's customer-centricity and how to be more strategic in your conversations with your CFO.   Sponsored by https://www.b2bframeworks.com   Brought to you in partnership with https://awardsinternational.com

A CMO Confidential Interview with Dr. Peter Fader, Professor of Marketing at The Wharton School of Business. This show is a bookend to "The Rise & Fall of Peloton as Seen Through the Lens of CLTV" with Professor Dan McCarthy.Pete discusses the use of Customer Lifetime Value (CLTV) as key to understanding the true value of the company and explains why it is risky to think "Your company is different." Key topics include: why customer metrics and stock valuations can be temporarily out of synch; why customer metrics eventually win out; how CMO's can use CLTV as a forecasting bridge with Finance; and how Warby Parker's strategic focus did not bend during dramatic stock price fluctuations. Tune in to hear why Warby is the Tortoise and Peloton is The Hare in the classic race.Discover the real story behind Warby Parker's dramatic $6B valuation swing and subsequent recovery through the lens of customer lifetime value analysis. Dr. Peter Fader, Professor at The Wharton School and co-founder of Zodiac (acquired by Nike), reveals how his team accurately predicted Warby Parker's true valuation before its IPO.Get an insider's look at how customer metrics and lifetime value calculations painted a different picture than Wall Street's initial $6B valuation. Learn why Warby Parker's steady approach to growth, unlike Peloton's aggressive expansion, ultimately proved successful. Dr. Fader breaks down the critical customer acquisition costs (CAC) miscalculations in Warby Parker's S-1 filing and explains how proper cohort analysis predicts company value.This episode provides invaluable insights for marketers and business leaders on using customer lifetime value to make strategic decisions, communicate with CFOs, and evaluate company worth beyond stock price fluctuations. Perfect for marketing executives, financial analysts, and anyone interested in the intersection of customer metrics and company valuation.Join Mike Linsing, 5-time CMO, as he explores this fascinating case study that demonstrates why understanding customer economics is crucial for sustainable business growth and accurate company valuation.#growthhacking #performancemarketing #digitalmarketing #marketresearch #warbyparkeripoCHAPTERS:00:00 - Intro02:00 - Using Customer Data and CLTV05:52 - Warby Parker IPO Overview11:29 - Warby Parker's Stock Price Impact15:35 - Analyzing Warby Parker's CAC Error18:18 - Warby Parker's Economic Performance19:36 - Warby Parker: Tortoise vs. Hare Strategy21:36 - Projecting TAM for International Expansion23:17 - Projecting TAM for New Product Lines27:59 - Wrapping Up Warby Parker Insights29:30 - Marketing Advice and Strategies30:16 - Conducting a Customer Base Audit30:56 - Understanding Company Differentiation31:56 - OutroSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Kick off the new year with a fresh perspective on your business strategy! In this episode, Ben Owden chats with Dr. Peter Fader, Wharton professor and co-founder of a predictive analytics firm acquired by Nike. Peter is also the author of Customer Centricity and The Customer Centricity Playbook, and he's on a mission to debunk the myth that “all customers are created equal.” Discover why focusing on your best customers—and even paying more to acquire them—can drive sustainable growth, while treating every customer the same can derail your bottom line. Peter explains the power of customer lifetime value (CLV), sheds light on how to measure it without drowning in data, and shows how a “quality over quantity” approach to customer acquisition can transform your organization. Whether you're planning this year's strategic initiatives or seeking a deeper understanding of customer behavior, this insightful conversation will help you see why the right customers—not all customers—deserve your full attention.Read Peter's Book on Customer CentricityGet in Intouch with Peter FaderImportant Links*Join Thrive in the Middle Today!*Book WhyLead to Train Your Teams*Explore Our ServicesSocial Media*Ben Owden's LinkedIn*Ben Owden's Twitter 

This episode is available in audio format on our Let's Talk Loyalty podcast and in video format on www.Loyalty.TV.This episode explores some of the key concepts that underpin how we as human beings behave with brands, through the academic insights and wisdom of Alex Brown, whose work I have followed on LinkedIn for the last few years.With an incredible career teaching digital marketing and digital strategy in top tier schools including London Business School and Wharton University, I was thrilled when Alex started binge-listening to "Let's Talk Loyalty" a couple of years ago as part of his preparations to teach his students about the power of emotional loyalty and I know he still recommends us to his students!Alex is fascinating to follow given his career focus and pioneering the use of social media throughout his teaching and industry work, and he joins me today to talk about loyalty through the lens of Taylor Swift and Trust.Listen and learn and please do enjoy our conversation.Show notes:1) Alex Brown2) London Business School3) Hierarchy of Trust: A Framework4) #40: Loyalty Lessons From Wharton School's Professor of Marketing, Peter Fader

Peter Fader, Wharton Professor of Marketing, joins the show to discuss how companies are approaching experiential retail, how the consumers' mindset is contributing to this trend, and how these experiences could help cities revitalize their downtown areas. Hosted on Acast. See acast.com/privacy for more information.

This episode, we delve into the story of how three business gurus—Neil Hoyne, Peter Fader, and Alex Hormozi—whose books have revolutionized the way we operate at Sol Insights. It all started with a serendipitous LinkedIn discovery of Neil Hoyne and his seminal book, "CONVERTED," leading to an inspiring podcast interview. This connection opened the door to Peter Fader's enlightening perspectives on customer centricity and Alex Hormozi's strategies in "The $100M Leads." Each author's unique approach has not only reshaped my business but also that of our clients, offering a blueprint for profound growth and efficiency. Join us as I retrace the journey of discovering these leading marketing practices, and share how these approaches are changing everything about my business (it may do the same for your business). Learn more about Sol Insights: ⁠⁠⁠⁠⁠⁠solinsights.com⁠⁠⁠⁠⁠⁠ Connect w/ Phillip on LinkedIn: ⁠⁠⁠⁠⁠⁠@phillipscroggin

A CMO Confidential Interview with Dr. Peter Fader, Professor of Marketing at the Wharton School of Business. Dr. Fader discusses why customer lifetime value (CLTV) is such an important predictor of future financial performance, why some leaders resist the CLTV approach , and his belief that companies often think they have more control and influence over consumers than they really do. Key topics include: how to get started on CLTV; how to understand non-contractual businesses like retail and consumer goods; why win-back strategies aren't as effective as they appear; and why he doesn't like "humanizing marketing." Tune in to hear how CLTV has strong parallels to actuarial science. 00:00 Welcome to CMO Confidential: Inside the World of Chief Marketing Officers00:40 The Power of Customer Data: A Conversation with Dr. Peter Fader01:36 The Evolution of Marketing: Embracing Customer Centricity02:39 Decoding Customer Lifetime Value and Predictive Models04:58 Challenges and Solutions in Applying Predictive Models24:04 The Future of Marketing: Data, Predictions, and Customer Focus30:37 Closing Thoughts and Practical Advice for Marketers#customerdata #marketing #customerlifetimevalueSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How healthy is your customer base? How do your customers differ in terms of their behavior and value? These are crucial core questions; when answered, they provide profitable insights. From season 3, listen to Phillip's interview of Peter Fader on his major book release: The Customer-Base Audit. Get The Customer-Base Audit: ⁠Wharton School Press⁠ Explore Theta: ⁠https://thetaclv.com⁠ Learn more about Sol Insights: ⁠solinsights.com

We launched The Super CMO Show in January this year and it has been a truly rewarding journey so far. This episode is a curation of the top marketing moments we've had with our esteemed guests on the show... moments from our conversations with Unilever veteran Marc de Swaan talking about Humanized Growth and the Da Vinci CMO Model, to Prof Tanvi Gupta of IIM Jaipur on Visual Semiotics in marketing. From prolific author and Prof, Peter Fader on the Customer Base Audit to marketing leader Sukumar Muthya on the need for technology-driven marketers. Amit Tiwari of TCS's Global Demand Centre talked about why marketers need to recalibrate. reskill and reboot…while Prof Venky Shankar, a Ford Chair Professor shared insights on the role of the CMO in today's marketing world. We had the privilege of talking to the one and only David Fradin on Product Design and Management…and the Out of Home Pioneer Srikanth Ramachandran on how app data can influence Out of Home Experiences. Eight Enlightening Episodes! It's been a truly enriching experience talking to the best minds in the industry and we look forward to bringing you much more in 2024. ----- You can access the full episodes on www.contraminds.com. We are also available on all leading podcast platforms and on YouTube as well. Here's wishing you a very happy and prosperous New Year! ----- Listen to the podcast on Apple Podcasts | Spotify | Anchor | Google Podcasts For show notes and earlier guest interviews, please visit www.contraminds.com ----- The Super CMO Show attempts to find answers to all these questions through conversations with the best minds in marketing: - How should the CEO and Company Boards take strategic advantage of marketing to improve the value of their firms? - What do CMOs and Marketers worry about, and what issues or problems make them lose their sleep? - Why is it important to understand customer behaviour if you are involved in marketing as a technologist or a marketer? - What impact does 800-Pound Gorilla – Technology have on the marketing world, and how can it be leveraged for a company's product or brands? - Why is the power of data, analytics, and technology on creative is here to stay? - Why are financial skills as essential for marketers as marketing skills? ----- This episode was made possible by the great folks at Effortless. Effortless has been designed to be user-friendly, aiding you in your journey to streamline financial tasks. Experience the convenience of achieving e-Invoicing and E-way Bill Generation in just a couple of clicks, simplifying your business processes. Visit www.goeffortless.ai to learn more.

The first step to customer-centricity is a customer-base audit. Join Phillip as he interviews book co-author, Peter Fader, on how to analyze the actual customers generating the numbers on financial statements.  Peter Fader is founder of analytics and research firm, Theta, as well as a leading professor of marketing at The Wharton School of Business (University of Pennsylvania). The book he co-authored starts business leaders on the path toward really getting to understand your customers' buying behavior as well as the health of your overall customer base. Get The Customer-Base Audit: Wharton School Press Explore Theta: https://thetaclv.com Learn more about Sol Insights: solinsights.com Follow Good Morning, Market on YouTube: https://www.youtube.com/@solinsights/ Connect w/ Phillip on LinkedIn: @phillipscroggin

Welcome to the What's Next! Podcast with Tiffani Bova.    This week on the What's Next! Podcast, I'm looking back at a conversation I had with Peter Fader, professor of Marketing at the Wharton School of the University of Pennsylvania and the co-founder of Zodiac.   Peter's expertise centers on the analysis of behavioral data to understand and forecast customer shopping and purchasing activities. His insights are reflected in his great book, Customer Centricity.     Customer centricity is one thing. Using customer lifetime value as a corporate valuation metric is an entirely different thing. Peter and several of his students produced some groundbreaking research recently which is turning Wall Street's quarterly predictions on their head. Peter and his team analyzed Dish Networks, Overstock.com, Wayfair and Blue Apron using the public data provided to investors.  They came up with company valuations that within 3-5% difference of the forecasts Wall Street was making.    Next, as a fun academic exercise, his students created forecasts for the next 4 quarters using various statistical methods. Peter compared his students' numbers to Dish's quarterly numbers and noticed two things: (1) the students were within .5% of the number that Dish announced, and (2) the Wall Street analysts were off by about 10%.     His hope is that the CFO will be just as interested in this bottom-up analysis, and it will create a dialogue with the marketers that just ordinarily doesn't happen.     THIS EPISODE IS PERFECT FOR… anybody who wants to learn how to use customer lifetime value (CLV) as a corporate valuation metric.   TODAY'S MAIN MESSAGE… Peter and his current and former students are doing tremendous work calculating CLV and what it means for companies' future growth potential. One groundbreaking way the team is discovering this economic value is by understanding how Wall Street forecasts a company's worth in the stock market by looking at the data rather than using intuition, which is often how Wall Street analysts are doing their job.     WHAT  I  LOVE  MOST… Peter's work shows—through raw data—that companies truly need to master customer lifetime value. As customer experience becomes an emphasis for many companies, understanding which customers to focus on will become even more important. It isn't possible to deliver high-touch, high-value customer service to everyone. Brands must become much more prescriptive in who they serve and with what level of support.     Running Time: 33:45   Subscribe on iTunes   Find Tiffani on Social: Facebook Twitter LinkedIn   Find Peter on Social: LinkedIn  Twitter    Peter's Book: Customer Centricity   Peter's Article: ​​How Wharton Marketing Students Beat Wall Street Analysts at Their Own Game

 The top priority of CMOs is to grow top-line revenue. But the best way to achieve that growth is a matter of debate. Do you go after as many buyers as possible, or focus on winning the loyalty of existing customers? Wharton Professor Peter Fader says the answer lies in examining the behavioural patterns of current customers.    

How do you define customer centricity? What it is not? How does it challenge the traditional view as irresponsible, ineffective and misaligned with best practice? Why ‘unmasking the customer base' is the hidden goldmine within one's business? How should a business go about it? What are the misconceptions? What are some of the best practices? Please provide a few glimpses of the The Analytical Toolkit and unveil the key analyses for customer centric success (e.g., customer cohorts, time between first and second purchase, distribution of customer value) Which are some key CLV misconceptions ? Decoding CLV Calculation – which are the 3 crucial factors. Will this hold true across industries? Why? Please share a case study showcasing the impact of CLV on business performance and decision-making.? (Penn students accurately forecasted Dish Network's customer acquisition, outperforming Wall Street experts. How?) Peter answers the above questions and more as he takes us on a journey or understanding & valuing our customer base. Peter S. Fader is the Frances and Pei-Yuan Chia Professor of Marketing at The Wharton School of the University of Pennsylvania. With a passion for understanding and forecasting customer shopping and purchasing activities through behavioral data analysis, Professor Fader's expertise spans a wide range of industries, including telecommunications, financial services, gaming/entertainment, retailing, and pharmaceuticals. Peter Fader also co-founded a predictive analytics firm (Zodiac) in 2015, which was sold to Nike in 2018. He then co-founded (and continues to run) Theta to commercialize his more recent work on “customer-based corporate valuation.” Latest Book of Peter is The Customer-Base Audit: The First Step on the Journey to Customer Centricity Kindle Edition https://www.amazon.in/gp/product/B0B65KKHN9/ Fader is also the author of Customer Centricity: Focus on the Right Customers for Strategic Advantage (2020, 2012) and coauthor of The Customer Centricity Playbook (2018) with Sarah Toms. Connect with Peter on Linkedin https://www.linkedin.com/in/peterfader/ Visit Peter's University Page https://marketing.wharton.upenn.edu/profile/faderp/ Visit Peter's Cool Numbers Website http://www.coolnumbers.com Jagged with Jasravee is facilitated by Jasravee Kaur Chandra, Director- Brand Building, Research & Innovation at Master Sun, Consulting Brand of Adiva L Pvt. Ltd. Jasravee has over 20 years experience as a Strategic Brand Builder,Communications Leader and Entrepreneur. Please visit Jasravee at https://jasravee.com/ Connect with Jasravee on Linkedin at https://www.linkedin.com/in/jasravee/ Email Jasravee at jasravee@theadiva.com Index 00:00 Preview & Introduction to Professor Peter Fader 03:28 Customer Centricity Unveiled 06:25 Customer Lifetime Value - How Granular Do We Need to Get 08:51 Misconceptions about Customer Lifetime Value 13:53 Measurement of CLV - Recency, Frequency, Monetary Value 17:20 Understanding Cohorts 24:16 Scaling Up: Avoiding the Pitfalls of Losing Intuition & Intimacy 26:39 Product Development Aligned to Customer Value 31:41 Customer-Based Corporate Valuation 34:17 Talent Show: Cool Numbers - The Story of a Dollar Bill's Journey 37:29 Rapid Fire - Personally Speaking with Peter Fader Follow Jagged with Jasravee on Social Media Campsite One Link : https://campsite.bio/jaggedwithjasravee Facebook Page : https://www.facebook.com/jaggedwithjasravee Instagram : https://www.instagram.com/jagggedwith Podcast Page : https://anchor.fm/jagged-with-jasravee Youtube Page : https://www.youtube.com/c/jaggedwithjasravee Jagged with Jasravee, is an initiative of Master Sun, the Consulting Brand of Adiva Lifestyle Pvt Ltd. Website : https://jasravee.com/

Peter Fader, Wharton Professor of Marketing, joins the show to discuss customer centricity in light of the SVB and First Republic Bank collapses. Hosted on Acast. See acast.com/privacy for more information.

Prof. Peter Fader is the Frances and Pei-Yuan Chia Professor of Marketing at The Wharton School of the University of Pennsylvania. His expertise centres on the analysis of behavioural data to understand and forecast customer shopping/purchasing activities. He works with firms from a wide range of industries, such as telecommunications, financial services, gaming/entertainment, retailing, and pharmaceuticals. In addition to his various roles and responsibilities at Wharton, Fader co-founded a predictive analytics firm (Zodiac) in 2015, which was sold to Nike in 2018. He then cofounded (and continues to run) Theta to commercialise his more recent work on “customer-based corporate valuation.” Fader is the author of Customer Centricity: Focus on the Right Customers for Strategic Advantage (2020, 2012) and coauthor of The Customer Centricity Playbook (2018) with Sarah Toms. He has won many awards for his research and teaching accomplishments. In this episode with Swami, Prof Fader gives us a peek into the Customer-Base Audit, talking about: - How A Math Major turned Professor of Marketing - The Importance of Hard Skills for Marketers - Understanding Customer Base Audit - Can we Run Diagnostics on Customer Behaviour? - Customer Based Audit - The Diagnostics of Marketing - Applying the Concept of Customer Base Audit - Customer Based Audits for Contractual Vs Non-Contractual Relationships - Non-Contractual Businesses Need Customer Based Valuations - Understanding the Customer at the Granular Level - The Customer P&L Statement - Prof. Peter's Blueprint of Customer Centricity - Re-engineering Companies for Customer Centric Corporate Culture - Changing the Fundamentals of Market-Mix Modelling - The Marketing Department of the Future - Direct & Indirect Marketing Listen to the podcast on Apple Podcasts | Spotify | Anchor | Google Podcasts Watch the full video episode on YouTube For show notes and earlier guest interviews, please visit www.contraminds.com To sign up for our weekly newsletter, please visit https://contraminds.substack.com/ Connect with Pro. Fader: https://twitter.com/faderp | https://www.linkedin.com/in/peterfader/ Connect with Swami: https://www.linkedin.com/in/sivaraman-swaminathan-9856501/ Connect with Vignesh: https://twitter.com/hrorq Connect with us: LinkedIN: https://www.linkedin.com/company/contraminds/ Instagram: https://www.instagram.com/contraminds/ Facebook: https://www.facebook.com/contraminds Website: www.contraminds.com

The Importance of Auditing your Customers. Peter Fader [Customer Audit]What is the difference between what customers say vs. what they do?What are the three d's of analyzing customer behavior? Distribution, Decomposition, DecileHow has customer behavior evolved?Why is it critical to look at your performance and profitability through the lens of your customer?Help my listeners understand the framework to audit their customer base.What questions should my listeners be asking themselves throughout this audit?From a customer-based audit perspective, what is the fundamental difference between your relationship with your local coffee shop and your electric utility?How do these concepts of audit and analysis sit within the broader concept of customer centricity?What is the best way for companies to start getting their houses in order?How do you align acquisition spending with customer value?What advice do you give my listeners to go from audit to action?ABOUT NICK GLIMSDAHLSubscribe to my bi-monthly newsletterFind Press 1 For Nick on YouTubeFind me on TwitterFind me on LinkedInLISTENER SUPPORTPurchase Nick's books: Reasons NOT to Focus on Employee Experience: A Comprehensive GuideApparel: https://www.teepublic.com/user/press-1-for-nick Support this show through Buy Me A CoffeeBOOK RECOMMENDATIONS:Learn about all the guests' book recommendations here: https://press1fornick.com/books/ BROUGHT TO YOU BY:VDS: They are a client-first consulting firm focused on strategy, business outcomes, and technology. They provide holistic consulting services to optimize your customer contact center, inspiring and designing transformational change to modernize and prepare your business for the future. Learn more: https://www.govds.com/ This podcast is under the umbrella of CX of M Radio: https://cxofm.org/Podcast-Shows/ SPONSORING OPPORTUNITIES:Interested in partnering with the Press 1 For Nick podcast? Click here: https://press1fornick.com/lets-talk/ 

Today's episode further explores topics discussed in this week's essay. In the preamble to that essay I said that there would be no content next week. I am going to reverse that. Next week will be an excerpt from Peter Fader's new book. Stay tuned!Full Transcript:Peter: Ed, I love your piece on strategy versus tactics at Disney, Twitter and Dominion Cards. I love the way that you're weaving together a narrative that's taking three of the super hot, interesting topics and a fourth one that most people don't know about.Edward: It's funny, the whole Dominion Cards thing. I've been, I started playing this card game back in 2011. I went to the national Championships in 2012. And I just really enjoy it. It's like the only game I can think of where you actually need to figure out a strategy at the beginning of every game. I've been sitting on this idea of dominion cards as a way to talk about strategy versus tactics for many, many years now. And I've never felt really found the right kind of hook to put it in. And then when this thing happened at Disney on Sunday, I was like, aha, the hook is here. It's time to pull this out of the filing cabinet.Peter: Love it. Well, as a, reader of the column and as someone who thinks about these issues, there's kind of two natural questions that just has to be asked. I wanna get your take on it. So, first. How do you define or where do you draw the line between strategy and tactics?Edward: I think strategy is figuring out what you should be doing and it's trying to figure out what the end point is of where you're going for, and tactics is all the stuff that gets you there. Strategy can be done a bit in isolation. You can go back into your ivory tower and think about what the dynamics are coming out with your strategy and then tactics are going to be very much based on what's happening on the ground. What's happening at any given moment, how the competition is reacting, how economics is changing what type of people you have on your team and any given moment. Those are all tactical decisions like that a consultant is not going to be able to help you with unless he's actually there on the ground.Peter: So I always have a hard time with it, to be honest. Maybe this is just me being narrow minded or something. It's not just the next move is it the next three or four moves. Be specific about strategy versus tactics in chess, and then let's branch out to these other real world stories.Edward: I'm not an expert in chess. I'm actually teaching my kids how to play now, I'm learning along with them. But I think in chess there is a correct strategy. I think strategy in chess is things like control the center of the board would be a strategy. Be willing to sacrifice your piece in order to gain position in the board, or, move your pieces in such a way that you're able to castle fairly early in the game. Those would all be strategies, things that you're working towards over a longer period of time. Tactics are, given what my opponent has just done, what should I do next? And tactics can, you can look far into the future for tactics. There's nothing that stops you from looking nine moves ahead to the right tactic would be in that particular situation. But I think strategy stays in chess at least. I think strategy stays the same. There are correct strategies into chess and there are incorrect strategies in chess. Whereas tactics are gonna change every given game depending on what your opponent does.Peter: So let's take that, and again, it's still little fuzzy. I mean, you're being more specific, but still, and I'm not gonna press you on exactly where one begins and ends, but Disney. Disney. Disney. Disney. It seems like the narrative as you said is Iger had the strategy. Chapek's job is to come in and execute on it. Few missteps here and there. Expand on that beyond what you've said in the piece about that trade offering strategy and tactics.Edward: I think most people are agreed, even the disgruntled shareholders, is that Iger's strategy was the correct one or is the correct one, which is that the cable bundle is getting hammered and Disney in the past basically had a huge amount of leverage over the cable providers and was able to extract large amounts of money from the cable providers by the fact that they had this differentiated content both the traditional Disney content, but also the sports they had with ESPN. And that was a great place for Disney to be and it still is, frankly, they still extract a huge amount of money from the cable providers, but that is not the future. Clearly we see more and more people, especially young people cutting the cord, not going with cable television and moving into streaming. And it was really a question of when did Disney need to move in that direction and how long could they keep their pound of flesh from the cable companies and hold onto that as long as possible? So the strategy then becomes let's move on. Let's go direct to consumer and scale up our Disney Plus product. There's tactical problems in doing that because, Disney bought Fox, which came with 20th Century Fox, which allowed them to add a whole ton of more content to get like the breadth required to win in a streaming war. They got control over Hulu, but they didn't get full ownership of Hulu. And so Comcast still owns a chunk of Hulu in the US which makes all sorts of challenges for Disney on a tactical level on how to actually get to the place where they wanna be. But I think the strategy is clear. It's we wanna get to the point where we are owning that direct to consumer relationship. We are monetizing through a subscription product. We are monetizing through additional add-ons that people can do on top of that. And we are monetizing through our vast aray of merchandising, theme parks, cruise ships, and everything else to allow people to spend more and more and more with us. That strategy is still where they're going the last two big things Iger did before he left, were launching Disney Plus and buying Fox,Peter: LEt's be clear that Chappek isn't against any of those things. Strategically as you've pointed it out, he's on the same page. It's all just tactics not being quite the same as what Iger might have done or might now do.Edward: And even on tactics, I'm not sure, if you look at the things that have hurt the stock price and where Chap has taken ahead, like first of all, Disney Plus has grown faster than they ever thought they would. He over delivered on that. Whether that was his doing or the, the fact is the metric is much better than anyone expected, but there were mistakes along the way. He has fought. There's been lots of fights with the creative side of the organization. Chapek comes from the theme park side. He came into the CEO role and then immediately Covid hit and the theme parks all went to zero. So he was forced to figure out how to do Disney plus where all their revenues coming from for the foreseeable future. Now things have flipped and the theme parks are just minting money. They're doing really, really, really well. But he's pissed off a lot of people by raising prices dramatically. But again, I'm not sure what Iger would've done differently in that case because the demand for the theme parks has has gone way, way, way up. So in the short term, you can't go and build more theme parks. So supplies is what it is. And so you're left with two choices. Either you are raising prices or you are giving a poor consumer experience, either because the parks are just packed full, and they're just unpleasant, or you're turning away people at the door who have booked a vacation. And so none of those options seem great, and of those options, it feels like raising prices was probably the one that Iger would've done as well.Peter: Exactly. So here's the big question. I agree completely with that. It might be that how things play out now tactically and strategically would be the same regardless of which Bob is at the helm, but just having Iger just seems to have this warm glow that will just make the same tactics, not only more palatable but downright genius because they're coming from Iger instead of Chapek. What do you think?Edward: I think that's absolutely right. They're in such a tough spot right now. There's so much going on and it's super, super, super risky what they're trying to do. I think everyone knows that there's really no choice but to go down this path. But also everyone knows that it's a really hard path to go down. And so not only do you need to have the right strategy, which I think people think that is true. You need to have the right tactics, which frankly I don't think Chapek, if he messed up on tactics, it was on a marginal basis. But where there was a bigger mess up was a bunch of execution of those tactics. And so things like the Black Widow movie early on in the pandemic, they decided to take that out of the theaters and put it onto Disney plus. And I think that was a very rational tactical thing to do given the situation they're in. But in execution, Chapek got into a big fight with Scarlette Johansen, who really came down hard, sued Disney. They hurt their relationship with her. Now. Disney ends up hurting their reputation as a good place to go and work if you're a top tier creative. In the short term, maybe they make a little bit more money on the movie, but in the long run they damage the relationship with the very people that are creating the product that they need to excel with.Peter: Fair point. All right, let's pivot from DS to SBF and FTX. There you say that, or at least you're quoting SBF saying strategy was fine. The tactics were at fault. You don't really mean that, you're just saying that's what he said, but you think otherwise.Edward: I'm no financial expert, but I've been following it as closely as I can and it sure looks to me like there was all sorts of... So Fbf owned two companies. He had ftx, but he also had the trading arm, Alameda Research. And there was money traded back and forth between those two organizations. And what I understand is. So imagine if FTX had, I'm making up a number, 10 million tokens and they're sitting on them and those things are worth whatever someone's willing to pay for them and Alameda comes on and says, Hey, I'll buy one of your tokens for a thousand dollars. So now all of a sudden the stock value of those tokens is a thousand dollars times 10 million, which is a huge amount of money they're sitting on. And then they basically end up using that valuation as collateral to do all sorts of loans and leverage to go and do other things with their money. FTX then takes in a bunch of customer deposits and then loans those customer deposits over to Alameda. Alameda then is then sitting on a bunch of these tokens that they're using as collateral against the borrowing of that real money that people put into ftx. Alameda then loses a bunch of that money and it all comes tumbling down when they realize that their collateral is not worth anything. It's all made up collateral. That's my understanding of what happened. Nothing like that has happened exactly before, but things like that have happened before. It's effectively fraud. It's fraud and theft. SBF, however, went on and interviewed Kelsey Piper over at Vox, and his argument was hey, we were doing was great. We were doing all sorts of awesome things, but our record keeping was terrible. We just made a bunch of like rookie terrible, incompetent mistakes. The new CEO who came in to run the company, Is backing SPF up in that yeah, this whole thing is a mess. That everything here is. What was his quote? I quote, I quoted him on my piece. He said, never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. And this is from the guy who also oversaw the bankruptcy of Enron.So it was a mess. They clearly, clearly, clearly were tactically incompetent and SBF is claiming that they didn't know they were stealing all these funds. It's entirely possible that he's right because they seemed like they didn't really know anything that was going on. And there was no financial backups and no guardrails for anything. But generally the overall strategy was built on a house of cards to begin with. So whether their tactics were correct or not maybe it wouldn't have collapsed as badly if they had great tactics, but it was gonna collapse one way or other.Peter: In this case, it's not strategy versus tactics, as you say in the title of the piece, it's and. They're doing bad and both, and it's hard to, pin the blame on one type of decision or another.Edward: The hard part of writing this piece was that given the fact that their strategy was so unethical and terrible and their tactics were so incompetent, how did they manage to get as big as they did so that they caused this disaster to happen.Peter: It's crazy. But but then speaking of which, it takes us to our third character of the week, Elon Musk. Now, you and I had a conversation a couple weeks back. We were saying generally positive things about verification, badges and just the possibilities of getting the business model right. And of course it's too early to tell for sure. But, these couple of weeks since that conversation, well, things have gone differently.Edward: Specifically the thing that we talked about, which was the Twitter blue, $8 a month to get certified.Peter: Verified.Edward: Verified. Verified. And what happened was that the verification process was effectively just having a credit card. So it wasn't like they matched. Your name that you put on Twitter with the name on your credit card or check the address, or had you send a a driver's license with the verification, it was a matter of pay the $8 and you can name yourself whatever you want. In terms of. Strategic idea, allowing people to pay $8 to get certified seems like a very valid idea and a very, I don't know if it's, it is the right strategy, but arguably, at least we argued a couple of podcasts ago, is that it was a good strategy. In execution what that allowed them to do because they didn't create any of those guardrails, they didn't have any verification process beyond paying the $8 is people impersonated all sorts of companies. They impersonated Elon Musk, they impersonated giant companies and had them say ridiculous things with a certification check next to them, and it became a big joke. And so an example of potentially a good strategy with very weak tactical execution.Peter: And what about the broader issues? The way he's running the company, day to day tactics, strategy, whatever it is, it's not good, but what, which basket would you put it in?Edward: I think there's an overlap. First of all, part of it seems like he's kind of changing his strategy on the fly. He's going back and forth and changing what his strategy is, but I think in general, his thesis going into the company was that this company was mismanaged. We need to eliminate a large number of people at the company and replace them with other people. We need to change the culture of this place from one of working from 10:00 AM until 3:00 PM to one where you're working from 7:00 AM until midnight and coming in on the weekends and turning into a hard driving startup type culture with a much smaller team that's much more dedicated and highly compensated. And it feels like that's his strategy. And he wants to go to create a company that ships product really quickly, makes mistakes, fixes them, and keeps going. That is something that I think most owners of most businesses would want for their companies. The challenge becomes how do you get there from here? And that's where there's been lots of flailing and failing. That doesn't mean the whole process is gonna fail, but there's been lots of mistakes made in that process of getting from A to B. In a situation we're getting from A to A to B is gonna be hard no matter what, even if you did it perfect.Peter: So what's your longer term prognosis? Do you think that he'll get this strategy right and line up the tactics appropriately?Edward: I don't know. It's so hard to know. I think the strategy is right. The question is whether the company will survive the process of getting them there. They're burning through cash. As an example, they laid off a bunch of people via email that work in Europe, and you can't actually do that. It's illegal to do that in Europe, so all those people that they fired in Europe actually aren't fired, they turned off their salaries. They're not making any money anymore, but all those people have a class action lawsuit that's going to go against Twitter and there's going to be a huge fine. That type of stuff matters in a situation where it, if they succeed, it's gonna be by the skin of their teeth. They're the Amazon in 2001 where we need to keep doing everything right and working our butts off to keep this plane flying over the treetops so that we can take off and circle the planet. But before we can circle the planet, we need to get over these trees. If they get over the trees, I think there's a good argument. Twitter's a fantastic, unique product that can do all sorts of incredible things and far more than the old team was doing. But he still has to get over the trees and that's where it's a lot unclear.Peter: Yeah. So it takes us to kind of the bottom line, as you say, and I don't think anyone would disagree. Strategy becomes far more urgent in rapidly changing environments. Who could argue with that yet at the same time, in rapidly changing environments. We start rearranging deck chairs, which is far more tactical.Edward: I think when things are going smoothly, when things are not changing, strategy frankly doesn't matter very much. Tactics matter a little bit, and execution matters a lot. When you're in a place where things are changing rapidly and you need to get to someplace new, all of a sudden strategy matters a lot. But that doesn't mean that tactics and execution matter less. They still matter a lot too. It just becomes like everything matters. It's becomes so easy to fail. You only need one chin in the chain to break and you're not gonna get there.Peter: And I think all three of these cases show that interplay. So again, it's not strategy versus tactics, but focusing on the and, getting to sync up properly and, easier said than done. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketingbs.substack.com

The Customer-Base Audit: The First Step on the Journey to Customer Centricity by Peter Fader, Bruce Hardie and Michael Ross About the Book: As a leader in your organization, you will be very familiar with your organization's key financial statements and monthly management reports. You may have spent countless hours discussing budgets and expenditures. But how much time have you spent reflecting on the fact that these revenues are generated by actual customers―the people who pull out their wallets and pay for your products and services? In The Customer-Base Audit: The First Step on the Journey to Customer Centricity, experts Peter Fader, Bruce Hardie, and Michael Ross start you on the path toward really getting to understand your customers' buying behavior as well as the health of your overall customer base. A customer-base audit is a systematic review of the buying behavior of a firm's customers using data captured by its transaction systems. It will help you answer questions such as: How healthy is your customer base? How realistic are your growth objectives? How do your customers differ in terms of their behavior and value? How has the quality of your customers changed over time? What changes in customer behavior lie behind period-to-period changes in firm performance? What is important to your high-value customers? Which products help you acquire and retain your best customers? Fader, Hardie, and Ross present five “lenses” through which an executive can address questions like those above. The answers are often lurking in various parts of the organization, but it is rare to find all the relevant analyses in one place, let alone performed on a regular basis (as an audit should be). Yet without such a basic, systematic understanding of the foundations of the firm's primary source of cash flow, how can executives make informed decisions? Fader, a Wharton professor, is the author of Customer Centricity and coauthor of The Customer Centricity Playbook, both of which have helped businesses radically rethink how they relate to customers. In this first step of the journey, Fader, Hardie, and Ross assist leaders in gaining a fundamental understanding of their customers' buying behavior―and thus their company as a whole. About the Author: Peter S. Fader is the Frances and Pei-Yuan Chia Professor of Marketing at The Wharton School of the University of Pennsylvania. His expertise centers around the analysis of behavioral data to understand and forecast customer shopping/purchasing activities. He works with firms from a wide range of industries, such as telecommunications, financial services, gaming/entertainment, retail, and pharmaceuticals. In addition to his various roles and responsibilities at Wharton, Professor Fader is also co-founder of Zodiac, a predictive analytics firm that was sold to Nike in 2018. He then co-founded (and continues to run) Theta to commercialize his more recent work on “customer-based corporate valuation.” Peter is the author of Customer Centricity: Focus on the Right Customers for Strategic Advantage and co-author with Sarah Toms of the book The Customer Centricity Playbook (which was featured on episode 222 of The Marketing Book Podcast in 2019). He has been quoted or featured in The New York Times, The Wall Street Journal, The Economist, The Washington Post, and on NPR, among other media. And, interesting fact – he was a math major at MIT! Click here for this episode's website page with the links mentioned during the interview... https://www.salesartillery.com/marketing-book-podcast/customer-based-audit-peter-fader

This episode is part 2 of a 2 part series featuring a very special guest, Professor of Marketing from the Wharton School of Business, at the University of Pennsylvania,  Dr. Peter Fader.  We will talk about how his new book may revolutionize the way Wall Street looks at what a company is actually worth based not on traditional financial metrics alone but the overall health of it's customers.   At some companies, it's already starting to happen. He challenges leaders who spend countless hours looking at traditional financial statements without understanding the health of their customer base.  In this episode we will break down The Customer Base audit with real world examples from his book and from my experience as a CX practitioner and other practical applications. I hope you will keep an open mind as we dive into some groundbreaking concepts that could change the way organizations think about their business.Peter Fader's BioPeter Fader is the Frances and Pei-Yuan Chia Professor of Marketing at The Wharton School of the University of Pennsylvania. His expertise centers around the analysis of behavioral data to understand and forecast customer shopping/purchasing activities. He works with firms from a wide range of industries, such as telecommunications, financial services, gaming/entertainment, retailing, and pharmaceuticals. Managerial applications focus on topics such as customer relationship management, lifetime value of the customer, and sales forecasting for new products. Much of his research highlights the consistent (but often surprising) behavioral patterns that exist across these industries and other seemingly different domains.In addition to his various roles and responsibilities at Wharton, Professor Fader co-founded a predictive analytics firm (Zodiac) in 2015, which was sold to Nike in 2018. He then co-founded (and continues to run) Theta to commercialize his more recent work on “customer-based corporate valuation.”Fader is the author of “Customer Centricity: Focus on the Right Customers for Strategic Advantage” (2020) and co-authored “The Customer Centricity Playbook” with Sarah Toms (2018). A third book, “The Customer-Base Audit,” will be published in Fall 2022. He has won many awards for his research and teaching accomplishments. Among these achievements, he was named by Advertising Age as one of its inaugural “25 Marketing Technology Trailblazers” in 2017, and was the only academic on the list.The Customer-Base AuditThe First Step on the Journey to Customer CentricityPeter Fader, Bruce Hardie, and Michael RossAs a leader in your organization, you will be very familiar with your organization's key financial statements and monthly management reports. You may have spent countless hours discussing budgets and expenditures. But how much time have you spent reflecting on the fact that these revenues are generated by actual customers—the people who pull out their wallets and pay for your products and services?In The Customer-Base Audit: The First Step on the Journey to Customer Centricity, experts Peter Fader, Bruce Hardie, and Michael Ross start you on the path toward really getting to understand your customers' buying behavior as well as the health of your overall customer base.To order the book:https://www.amazon.com/Customer-Base-Audit-Journey-Customer-Centricity/dp/1613631618Contact me if:- You have feedback you'd like to share about the podcast- You would like to be a guest on the show- You would like to book me on your showEmail me at mark@empoweredcx.com

This episode is part 1 of a 2 part series featuring a very special guest, Professor of Marketing from the Wharton School of Business, at the University of Pennsylvania,  Dr. Peter Fader.  We will talk about how his new book may revolutionize the way Wall Street looks at what a company is actually worth based not on traditional financial metrics alone but the overall health of it's customers.   At some companies, it's already starting to happen. He challenges leaders who spend countless hours looking at traditional financial statements without understanding the health of their customer base.  In this episode we will break down The Customer Base audit with real world examples from his book and from my experience as a CX practitioner and other practical applications. I hope you will keep an open mind as we dive into some groundbreaking concepts that could change the way organizations think about their business.Peter Fader's BioPeter Fader is the Frances and Pei-Yuan Chia Professor of Marketing at The Wharton School of the University of Pennsylvania. His expertise centers around the analysis of behavioral data to understand and forecast customer shopping/purchasing activities. He works with firms from a wide range of industries, such as telecommunications, financial services, gaming/entertainment, retailing, and pharmaceuticals. Managerial applications focus on topics such as customer relationship management, lifetime value of the customer, and sales forecasting for new products. Much of his research highlights the consistent (but often surprising) behavioral patterns that exist across these industries and other seemingly different domains.In addition to his various roles and responsibilities at Wharton, Professor Fader co-founded a predictive analytics firm (Zodiac) in 2015, which was sold to Nike in 2018. He then co-founded (and continues to run) Theta to commercialize his more recent work on “customer-based corporate valuation.”Fader is the author of “Customer Centricity: Focus on the Right Customers for Strategic Advantage” (2020) and co-authored “The Customer Centricity Playbook” with Sarah Toms (2018). A third book, “The Customer-Base Audit,” will be published in Fall 2022. He has won many awards for his research and teaching accomplishments. Among these achievements, he was named by Advertising Age as one of its inaugural “25 Marketing Technology Trailblazers” in 2017, and was the only academic on the list.The Customer-Base AuditThe First Step on the Journey to Customer CentricityPeter Fader, Bruce Hardie, and Michael RossAs a leader in your organization, you will be very familiar with your organization's key financial statements and monthly management reports. You may have spent countless hours discussing budgets and expenditures. But how much time have you spent reflecting on the fact that these revenues are generated by actual customers—the people who pull out their wallets and pay for your products and services?In The Customer-Base Audit: The First Step on the Journey to Customer Centricity, experts Peter Fader, Bruce Hardie, and Michael Ross start you on the path toward really getting to understand your customers' buying behavior as well as the health of your overall customer base.To order the book:https://www.amazon.com/Customer-Base-Audit-Journey-Customer-Centricity/dp/1613631618Contact me if: You have feedback you'd like to share about the podcast You would like to be a guest on the show You would like to book me on your show Email me at mark@empoweredcx.com

‘The Customer-Base Audit,' co-authored by Wharton's Peter Fader, argues that firms cannot make fully informed decisions without first understanding their customers' buying behavior and the actual health of their customer base. Hosted on Acast. See acast.com/privacy for more information.

I have been playing around with some AI audio tools. This should allow all podcasts going forward to have full transcripts. It has also allowed for pretty fantastic text-to-voice applications. I spent an hour recording my voice to have it analyzed by the AI. This allows text editing of podcasts (i.e., In the live recording I say “price insensitive” when I should have said “price sensitive”. I can use a text editor to just delete and replace and the AI will put the new words in seamlessly - in my own voice. It's like a personal deepfake).But the tool can do more than just find and replace words. Attached to this post is the full text of last week's essay “Paying for Status” in audio form, read in my voice from an AI. It is also available via the Substack player, and all major podcast apps. If there is any interest at all, going forward I will include audio like this in all essays (and transcripts for all audio).The AI audio is not perfect, but, to me, it sounds a LOT better than most of the “robot” customer service voices one has to deal with in every day life. I would love your feedback on what you think of it. Just reply to this email. What else to expect this week:* This week's essay is coming (Hopefully tomorrow. It was delayed due to Halloween). Topic is VR/AR and Meta's new headset* Weekly marketing take with Peter Fader is on schedule for Thursday morning (now with a transcript!)* For those that are interested in our analytical exploratory take on the early Marvel Universe, a new Super Serious episode will also drop tomorrow - also now with a transcript for those who prefer to read rather than listenKeep it simple,Edward This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketingbs.substack.com

In 2021, initial public offerings (or IPOs) hit an all-time record with 1,000 companies entering the scene, more the doubling the previous year. From investors to managers to board members, business leaders need to understand the true value of companies, but many of the traditional valuation methods are outdated and incomplete. With increasing access to new data, astute forecasters are deploying new methodologies. Among these is customer-based corporate valuation, a field “equal parts marketing and Wall Street” with a central focus on how customer behavior drives success.  Dan McCarthy joins to discuss customer-based corporate valuation, including which customer data points are most important to monitor and how investors and managers stand to benefit from this approach.  Dan is an Assistant Professor of Marketing at Goizueta Business School. His research centers on customer lifetime value, limited data problems, data privacy, and the marketing-finance interface. He is regularly featured as a key expert, with recent coverage in the Harvard Business Review, Wall Street Journal, Fortune, the Economist, and CNBC. Corporate Valuation as a New Approach to Forecasting Until now, evaluating firms has been a question of forecasting future revenues off of past revenues. Customer-based corporate valuation (CBCV) entails looking at data regarding the flow of customer acquisitions over time.  The model consists of four interlocking submodels governing how each customer of a firm will behave. They are:  the customer acquisition model, which forecasts the inflow of new customers  the customer retention model, which forecasts how long customers will remain active  the purchase model, which forecasts how frequently customers will transact with a firm  the basket-size model, which forecasts how much customers spend per purchase   Using this data, predictive models for customer behavior produce forecasts – of revenues, as well as marketing expenses and ultimately cash flows. It's Wall Street meets marketing.  A Perfect Mix of Finance, Statistics, and Marketing McCarthy is the founder of two predictive customer analytics companies, one of which was acquired by Nike in 2018. Along with Peter Fader at Wharton, he has spent countless hours studying and working to refine CBCV over the last several years. His journey into this method combines many of his passions, including finance, statistics, and marketing.    He shares that predictive and analytical tools, such as his CBCV, can be adapted for a multitude of uses for a variety of audiences, including investors, managers, CEOs, and marketing departments. Those business leaders with access to heavy data can receive detailed predictive information that can be leveraged for future decision making. It isn't as simple as, “this is how we will perform”, but rather, McCarthy's tool allows companies to understand the pieces that make them thrive. They can then use this information, such as which customers are more valuable or which marketing tactic is working best, to progress the company and drive growth. This approach, he says, is more of a value management task rather than a value measurement task.   Even amateur investors with statistical aptitude can apply this approach. McCarthy shares the following Excel spreadsheet to make predictions for subscription-based firms.   Corporate Valuation with Movie Pass and Wayfair McCarthy applies the CBCV methodology across industries. He recently evaluated the new three-tier system that Movie Pass implemented earlier this year. MoviePass skyrocketed in popularity in 2018 after it lowered its monthly subscription to $10, garnering 3 million subscribers. But it wasn't sustainable. After burning through hundreds of millions of dollars, MoviePass shut down in 2019 and its parent companies filed for bankruptcy in 2020. Now, Movie Pass just re-launched on Labor Day with a three-tiered payment system. So, what does McCarthy predict? In short, he shares, they likely won't “lose money as quickly”. He predicts that most customers will head for the cheapest option available as they have already experienced this company's market adoption. It's the proverbial free lunch. The national average price of movie tickets is approximately $10. So if the cost of the subscription is $10, then as long as someone buys one movie, the company's going to lose money.   McCarthy's work with ecommerce furniture site Wayfair also underscores the importance of understanding consumer behaviors to accurately interpret company financials. Though its revenue has grown very quickly, he says, there remains a very low margin for profit. A deeper look into consumer behaviors shows that Wayfair has high customer acquisition costs, yet these customers are rarely repeat purchasers. Though the company had been struggling, the COVID-19 pandemic forced buyers into their homes exclusively, and heads turned to ecommerce platforms such as Wayfair. This change helped the company sustain itself for a short period, but it is now realizing the harsh reality of its flawed marketing tactics once again.   Standardization of Data and Definitions One of the biggest challenges that CBCV faces is the disclosure of fully accurate and thorough data, or rather, the lack thereof. Companies are often reluctant to disclose data that may make them look bad, limiting the data sets predictive models can work with. Standardization of industry terminology is also a challenge, because different firms utilize different definitions, and this can lead to the misinterpretation of data. As investors apply pressure, standards are slowly forming. While he recognizes the challenges, McCarthy is hopeful we can converge on “industry specific, informal standards”.  Up Next for Dan McCarthy McCarthy is enthusiastic about what's in store as he continues to refine predictive data models. He looks forward to applying artificial intelligence and other deep learning models to this work. He is grateful to Kyeongbin Kim, PhD candidate in marketing at Goizueta, for her transformational research in this space.   To learn more about Goizueta Business School and how principled leaders are positively influencing business and society, visit www.goizueta.emory.edu. 

We’ve spoken before on the show about the importance of Customer Experience in driving growth, with guests like Wharton’s Peter Fader, Gainsight’s Nick Mehta and Bain & Company’s Stu Berman. But today’s guest says you need to think beyond the customer. If you really want to accelerate growth, you need to focus on the employee experience. Tiffani Bova is the global growth evangelist at Salesforce. She’s also the author of the Wall Street Journal bestselling book GROWTH IQ: Get Smarter About the Choices that Will Make or Break Your Business. Tiffani has been named to the latest Thinkers50’s list of the world’s top management thinkers and is a welcomed guest on Bloomberg, CNN, Cheddar, MSNBC, and Yahoo Finance, among others. In our conversation, we talk about whether your Growth IQ is something you’re born with or something you build, the ten paths to growth, and how Software-as-a-Service has changed what it takes to thrive in Sales. Love the show? Subscribe, rate, review, and share! Here’s How » Join the Subscription Stories Community today: robbiekellmanbaxter.com Twitter Facebook

We’ve spoken before on the show about the importance of Customer Experience in driving growth, with guests like Wharton’s Peter Fader, Gainsight’s Nick Mehta and Bain & Company’s Stu Berman. But today’s guest says you need to think beyond the customer. If you really want to accelerate growth, you need to focus on the employee experience. Tiffani Bova is the global growth evangelist at Salesforce. She’s also the author of the Wall Street Journal bestselling book GROWTH IQ: Get Smarter About the Choices that Will Make or Break Your Business. Tiffani has been named to the latest Thinkers50’s list of the world’s top management thinkers and is a welcomed guest on Bloomberg, CNN, Cheddar, MSNBC, and Yahoo Finance, among others. In our conversation, we talk about whether your Growth IQ is something you’re born with or something you build, the ten paths to growth, and how Software-as-a-Service has changed what it takes to thrive in Sales. Love the show? Subscribe, rate, review, and share! Here’s How » Join the Subscription Stories Community today: robbiekellmanbaxter.com Twitter Facebook

From theory to application and beyond, marketing professor Peter Fader did what most academics fail to do: create a successful commercial business based on what you're doing in the classroom. His work on consumer decision making led him to start Zodiac, a company that looked at consumer buying data to accurately predict future purchasing decisions. His data was a gold mine for entrepreneurs, but the challenge was getting business owners to see the value and trust the forecasting. After three years of side-of desk growth, Peter and his team were working hard on scaling and bringing in new and innovative ideas, when along came an acquisition offer they couldn't refuse from a retailer you might've heard of before: Nike. Peter's answer to the offer? Just do it. Connect with Peter Fader Website: https://thetaclv.com/ LinkedIn: https://www.linkedin.com/in/peterfader/ Twitter: https://twitter.com/faderp Get a copy of Peter's new book, The Customer-Base Audit: https://whr.tn/Customer Connect with Simon Bedard LinkedIn: https://www.linkedin.com/business-sales-sydney/ Website: https://buygrowsell.com/ Website: https://exitadvisory.com.au/

Proper nutrition is essential if we want our pets to live long and healthy lives, but we can't rely on a one-size-fits-all approach. This week, Shawn & Ivan are joined by Trey Steidle of Breed Science for a discussion about nutrition as a wellness tool. Trey recommends Customer Centricity by Peter Fader (amzn.to/3PU4A10) & The Forever Dog by Hodney Habib & Dr. Karen Shaw Becker (amzn.to/3x2oPRr). Learn more about Trey at breedscience.com.

#141 - Top 20 Things That I've Learned From My Guests This week's episode is also sponsored by STOCK MFG. With Stock you get all the style of retail, with the price, continuity, and customer service of a traditional uniform vendor. They offer an assortment of everyday items that are ready to ship with no minimum order quantity, and can also create custom uniforms to fit any aesthetic. Visit: stockmfg.co/chip to get get started. ***** Week after week I have the great privelege of chatting with some of the greatest minds in our industry... chefs, operators, marketers, founders, and more. I'm constantly overwhelmed by their generosity, and so I decided to sit down and share some of my all time favorites insights. They are listed in no particular order. I hope this prompts you to revisit some of your favorites... or maybe an episode or two you might've missed. Links and episode numbers are listed before for each. Enjoy! MY FAVORITE INTERVIEW INSIGHTS: #1 - Martin Lindstrom - #112 - “It’s much, much easier to be a small player than a big player.” (LISTEN HERE) #2 - Christopher Tunnah - #96 - “A logo doesn’t matter, fonts don’t matter, the business cards don’t matter.” (LISTEN HERE) #3 - Peter Fader - #93 - “Frequency, Recency, and Monetary Spend” (LISTEN HERE) #4 - Mark Schaefer - #106 - “80% of the marketing is done behind our backs.” (LISTEN HERE) #5 - Kelly Cooper - #77 - “There are specific, tangible things you can do to make sure your business appears in relevant searches…. GMB, NAP credentials, backlinks, and reviews.” (LISTEN HERE) #6 - Saleem Khatri - #52 - “The data is overwhelming clear… technology… specifically kiosk service helps us drive more revenue, cut expenses, and create a better guest experience.” (LISTEN HERE) #7 - Bob and Kate Carpenter - #49 - “Respond to each and every review on Yelp… those responses are not for the critics, but for the people researching you. It’s an opportunity to show them what kind of an operator you are.”

In today's episode, we're joined by Michael Loban, Chief Growth Officer at InfoTrust as we discuss the topic of understanding the 'why' behind user behaviour - and how to influence it!In this episode we discuss:Why storytelling skills are key in turning insights into actionsCommon pitfalls to avoid when trying to understand user behaviourQuestions to ask yourself before investing in analytics softwareHow to build your storytelling narrativeHow using influence quadrants can help you to understand the necessary actions to encourage specific user behavioursFrameworks, resources and tools that can help you on your journeyReferenced on this episode:Peter Fader: https://twitter.com/faderpMichael speaking on building narratives and creating influence quadrants: https://www.youtube.com/watch?v=LrxJjluJKTwAdam Grant: adamgrant.netLooker: https://looker.com/QuantumMetric: https://www.quantummetric.com/Never Split the Difference by Chris Voss: https://amzn.to/3c7x706Michael Bernoff: https://michaelbernoff.com/CONNECT WITH MICHAEL / INFOTRUSThttps://infotrust.com/https://www.linkedin.com/in/mloban/CONNECT WITH SCOTT:scott.colenutt@sitevisibility.comhttps://www.linkedin.com/in/scottcolenuttCONNECT WITH SITEVISIBILITY:https://www.sitevisibility.co.uk/https://www.youtube.com/user/SiteVisibilityhttps://twitter.com/sitevisibilityhttps://www.facebook.com/SiteVisibilityhttp://instagram.com/sitevisibilityFor all show ideas, guest recommendations and feedback email marketing@sitevisibility.com See acast.com/privacy for privacy and opt-out information.

#93 - INTERVIEW: Peter Fader, Wharton Professor and Bestselling Author This week's episode is sponsored by: CRAVER Get a beautiful, branded app for your restaurant with CRAVER. This isn’t just some cookie cutter software… it will be an extension of your brand in your customer’s pockets. You will own your customer’s data, own the process by which they engage with you, and have direct access to their orders, commission free! To learn more about they can help you build loyalty and drive revenue, visit their website: https://craverapp.com ***** Peter Fader is a sought-after public speaker, a bestselling author, and a celebrated marketing professor at The Wharton School at The University of Pennsylvania. He's a pioneer when it comes to "customer centricity" and something he calls CLV - "customer lifetime value." He founded a company called Zodiac many years back, which he then sold to Nike. (They then used the analytics company to help them pivot from B2B to B2C and it has changed the trajectory of their company. You can read about their move from 2017 on. You can here about that HERE.) On this week's episode Peter is sharing his work on this material, explaining how it applies to companies large and small, and then finally drills down to provide a sort of playbook for restaurants. This is one of the most thrilling interviews I've ever done and I hope you all get as much out of it as I did. ***** IMPORTANT LINKS: Purchase Peter's book, CUSTOMER CENTRICITY Follow Peter on Twitter Find Peter on LinkedIn Learn more about his new company, Theta Equity Partners ***** If you want to record a message for our 100th episode, I hope you'll click the link below and let the community know how this show has helped you and your restaurant. Some insight, breakthrough, idea, whatever... it can be 10 seconds or 5 minutes. Help me share your story: CLICK THIS LINK ***** Happy listening,Chip Klose P.S. - CLICK HERE to download the ONLY Restaurant Budget Template You'll Ever Need

This is a free two-part episode of Marketing BS. My guest today is Peter Fader, professor of marketing at the Wharton School at University of Pennsylvania. Peter was one of my early marketing mentors and I loved this interview. This is Part 2 of the interview where we dive in deeper to the ramifications of Peter's signature research around “Buy until you Die”.You can subscribe to the podcast in your player of choice here: Apple, Sticher, TuneIn, Overcast , Spotify. Private Feed (for premium episodes).TranscriptEdward: This is part two of my interview with Professor Peter Fader. Today we're going to dive into signature research Buy Till you Die. Peter, can you start by explaining what this idea is?Peter: Yeah. That sounds really weird. Buy Till you Die. What's up with that? As we discussed briefly yesterday, it's not a model that I invented. In fact, I was actually against even trying it in the first place. The idea is that if you look at the way customers behave—it's not just customers—if you look at the way that repeated decision-makers make repeated decisions over time. I'll give you a wide range of examples as we go on. There's this remarkably consistent pattern. I'll stop short of calling it universal, but it's so robust, it's so common, that we should treat it that way. Yes, we should acknowledge exceptions, but they don't happen that often.The idea is this. Here's the analogy that I could tell, think about it in the case of a customer making repeat purchases of a particular brand or product. They're basically flipping two coins. Every day, you're going to flip coin number one, the buy coin. Will I buy this thing or not today? Simple as that, but they're also flipping the die coin. When that coin comes up heads, all that means is okay, fine, I'm still alive, I could flip the buy coin. It doesn't mean I will buy but it means I can at least contemplate it. But when that bad boy comes up tails, I'm gone, and I'm gone for good.That's why we call it Buy Till you Die. There's no coming back. There's no resuscitation. You just buy things for a while, and not necessarily at a very steady regular cadence, but you do have an underlying rate and undying propensity to buy things, let's say once a month.I don't know that you going to buy it once a month, but on average, you going to buy it about 12 times a year, but then something happens. I even no longer have a need for this particular product. I move away. You're no longer tracking me. Perhaps I really do die. I don't know, and then that rate, boom, drops to zero. It sounds really artificial. It sounds harsh. It sounds unrealistic, and I don't argue with any of that. I pushed back against it myself. When you put it up against actual data, and you allow these two coins to vary, it's remarkable how well it can capture, explain, and offer useful diagnostics about repeat purchasing behavior or, again, repeat decisions of almost any sort, and we'll dive into some of those almost bizarre examples.Edward: Yeah. Let's talk a little bit about, you said right at the beginning, there are some exceptions, but they're very rare. What would be an example of an exception where this doesn't apply to you?Peter: If you have some product or service where early on your customers either don't fully understand it, they can't use it as usefully as they can. Maybe some of the use cases for it don't emerge until later on, there might be some other complementary products or some changing behaviors. You might find people not just buying at the steady rate and dropping off, but there will be some cases—not just a person, but a whole cohort of people—will actually increase their purchasing for a while. That can happen, but it will level off and it will start to go down.Eventually, the Buy Till you Die will kick in, but sometimes it might take a while. If we started with that theory of going in, we might understate things is. There could be lots of other little twists there. I don't want to get too technical about it.For instance, it could be other changes in the marketplace itself, whether it's promotions that the company does, changes in competition, changes in the macroeconomy, that could make things a little bit less rigid than pure Buy Till you Die, and commercially, we can account for all of that. We have our basic core model, but then we can bring in some of these other situations and bells and whistles to make it just a bit more flexible, and sometimes it's very important to do that.Edward: Are there industries where it doesn't apply like church attendance or travel to Florida? Are there things where that radically different than just like purchasing all of Amazon or it doesn't work? What are those crazy things do?Peter: It's so funny that you mentioned church attendance because that is exactly the domain where this model was first dreamed up. I kid you not, Don Morrison who was a professor at Columbia at the time and then moved to UCLA. He's recently retired but is he just an interesting guy. He dreamed up this model literally while he was sitting in church in the Upper West Side in New York. He was looking at some empty pews and saying Mr. and Mrs. Smith, sit over there.They missed this week, but you know what, they're often sporadic about their attendance, so that's okay, but Mr. and Mrs. Jones, they usually sit over there and they never miss church. The fact that they're not here this week, gets me worried about it. I wonder if they're ever coming back. He actually dreamed up this model, and then did the math behind it in church, and then applied it to lots of other settings like that, whether it's nonprofits. Whether it's event attendance, all kinds of things, works really, really well there.Almost any setting where people are making repeated decisions to do something, whether there's a purchase involved or not. It might be watching a particular media like we've applied these models to Hulu. Whether it's visiting a website. Whether it is making a purchase. Whether it's posting social media content. It's just remarkable how well this simple model can characterize forecast behavior.Edward: Where is the resistance of the idea? You've been working on this stuff for decades, and yet I don't feel that it's like inundated the popular consciousness of business, even among experts in business and people who are the gurus of this stuff. Where's the resistance coming from?Peter: From lots of different sides, especially when we talk about marketing. Yesterday, we were talking about how I have this heightened respect for the finance people. Even though I'm a marketer, there's a lot of BS that goes on in marketing.When I bring these models forward, a lot of people will say, well, that might work well for company A, but our company is different, our practices are different, our customers are different, and besides, we're constantly being disrupted. We're constantly changing.Marketers will come up with all kinds of excuses not to have some formal, regular, predictable characterization of customer behavior. I can go to them and say, give me some data. I'll show you how well it works. I don't even, you know what, you only give me half the data. We'll hold out the other half, and we'll show you how well the forecasts work, and this is what I've been doing for decades, and they'll still push back.They'll say, okay, you know what, you can go talk to the nerds and analytics, but I have a business to run here. I need to focus on the brand. I need to focus on which celebrity we want for our Super Bowl ad, and they just don't want to be bothered with this technical stuff, but it wasn't till we commercialize it through Zodiac, which we spoke a little bit about yesterday.Especially now that we're starting to win over CFOs and other finance people who can see how well these models will help them do their job, and they are willing to trust models. They are willing to look at forecasts and not only accept, but look for regularities in the marketplace. That's been very, very, very helpful. Again, once the CFO accepts something, it makes it much easier to get the CMO on board as well, but sometimes they're still will be resistance. That's one of the reasons why I've been writing a lot besides founding the companies.One of the things that we haven't touched on is all of these kinds of books that I've been writing. All these books on customers' centricity, that are just basically a façade, a motivation, a Trojan horse, to get people to accept the models, to get people to care, to get people of want to run them, to get people to trust the outputs from them.Writing these books on customer centricity has also been very helpful, but again, sometimes companies will say, okay, okay, okay, I'm with you, how do we do this? Then we'll start to bring in the models, and then their eyes glaze over once again. It's hard. It's getting easier, but it's no guarantee.Edward: Can you give some examples of why it matters? Now I have these models, the models predict my future customer purchases far more accurately than anything before. My lifetime value of my customers could be different now. What does it actually change? Now I'm a CMO running my business, and I'm trying to figure out my next Super bowl ad. What is it going to change and what I'm actually doing on a day to day basis?Peter: Yeah. There are some enormous implications that pop right out of the models. One of them is summarized pretty well in the subtitle of my first book. The book is called Customer Centricity, which doesn't really mean anything, but the subtitle, Focus On The Right Customers For Strategic Advantage.There's really three messages there. Message number one is that not all customers are created equal, you better not talk about the customer, and you better not focus on the average customer because they're wildly different from each other. Thing number two is that the customers on the right tail of the distribution, they're not only more valuable than most of your customers, they're orders of magnitude more valuable. I mean, there's, wow, are they good? Wow, are they going to continue to be good? Thing number three is, there are ways that we can build our business around them. Let's really focus on those very, very valuable customers. Again, I'm talking about projected value. Not just historical value, although the two might line up with each other. Let's say what makes them different. How do they use and talk about our products differently from the average soso customers? What other services can we surround them with? How do we acquire more customers like them and what are we willing to pay to do so? If we can build our business around those really good customers, we can make more money in a sustainable, defendable, ethical way than just trying to play it right down the middle, saying, will our average customer find this product or message appealing? It's wildly different than the usual way that people go to market, but the models strongly support it. That's why I spent a lot of time racing, okay, you got the models fine, but let's really talk about these implications, and they really matter.It's been very gratifying to see a number of companies—I wish there were more—but a number of companies waking up smelling the lifetime value and starting to make decisions accordingly.Edward: Is that the opposite of what Byron Sharp would say? Because Byron Sharp says, I think that your loyalty is effectively a function of your market share, and the way to get more loyal customers is just to get more customers and some percentage will be loyal. As you get more market share, your loyalty increases, and your double jeopardy law applies. Do you argue against that or is it a supplement to that?Peter: It's a supplement. I'm glad you phrase it that way because pretty much everything that Byron Sharp, and of course, his original role model Andrew Ehrenberg said, 90% of that stuff is correct. Even there, it's going against the grain of conventional wisdom.I am just adding an extra layer on top of it. I agree with the notions that you just described, the double jeopardy law, the duplication of purchase law. If your listeners aren't familiar with it, and that means that they're not listening to you enough, because I know you do a good job of talking about it.Byron and company don't go quite far enough. I mean that in two ways. Number one, they assume that the models that they build, the fancy word for them would be the Dirichlet Multinomial Model. They assume that it's stationary. They assume that it's static. They assume that yes, there's the heterogeneity, but people don't change over time, and they do. They do in the way that we've been describing, Buy Till you Die, that there will be some non-stationary.There will be some worsening of customers, and it's important to capture that. When we add that extra layer in, it does not take away from double jeopardy, it just adds another light to it. Here's the other part is that, again, Byron and company acknowledge that customers are heterogeneous, but they refuse to acknowledge that some of those customers in the right tail are so, so, so, so, so good that if we put a little bit of extra attention on them, that we can do better than just trying to be everybody's best friend. All these things fit together, and I could get into lots more technical detail with it. Again, I believe everything that Byron says but he's leaving money on the table, by not allowing behavior change over time, and by not fully exploiting heterogeneity as much as I do. His points about, you still need to focus on mass marketing, and you still need to come up with products that are broadly appealing, I actually do believe all of that stuff. It's just that we want to put a disproportionate amount of attention for the care feeding and acquisition of those extra special customers.Edward: I think I've totally bought in on to the acquisition side of things. I think more acquisition is always great. My concern a little bit is about you have these customers who are really, really, really good customers for you already. To go and give them additional incentives to go and buy more, at a certain point, the really good customers are almost spending all their wallets within the category with you already. They're already super loyal. How do you shift them to become even more loyal? Am I missing the point?Peter: I got two words for you. First of all, and I never said the word incentives. That's your word, not mine. We got to find other ways to be crass about it, to squeeze more money out of them. Here are my two words, premium services. It's as simple as that.You think about something like a LinkedIn premium. At first, there was a lot of pushback about a lot of the features and functions of LinkedIn premium offered. Folks at LinkedIn were saying, well, man, most of our customers don't want that stuff. Why should we offer it?Well, the fact is, there are those right tail customers who are so good and use you so much, and use you so differently than everybody else. If we can come up with products and services that meet their fairly idiosyncratic needs and get them to pay for them, then we can make more money than just trying to sell them the same stuff over and over and over.I look at something like Twitter. I'm a big power user of Twitter. I know you are, too. There's no question that I would pay $10 a month for all kinds of features and functions that most people couldn't care less about, to edit my tweets, to have more control over my timeline, to have more visibility, and whatever. There's a whole bunch of things that power users would want to use, but companies like Twitter, Facebook, and so many others are just too chickenshit to go out there and make these premium services a priority.Jack Dorsey has made some noise about it recently but gets to it. That your heavy users want to pay more money, as long as they're getting good value for it. I think that's the key. It's not just giving them incentives. It's not giving them freebies, because you're right. They're going to buy from you anyway. It's getting to pay for more stuff that most customers wouldn't want.Edward: Is the opportunity more in a product than it is in marketing? It should be helping to product team more than the marketing team?Peter: It's a little bit of both. There's no doubt that we need to come up with products and services that are uniquely appealing to those customers will help us acquire more like them, but it is also in the messaging.Instead of just going to an ad agency and saying, hey, ad agency, come up with a fun ad. I look at what some companies doing in my favorite company on these lines would be EA, the game company, Electronic Arts. They will look at their most valuable customers every day, by the way. They're updating lifetime value for every single one of their multi-billion customers around the world. They'll look at the most valuable ones and say let's look at how they're playing a certain game. Whether it's Battlefield, Madden Football, or SimCity, and let's find out how our power users are using the game, talking about the game, what things they're doing in the game, and let's feature those kinds of aspects in our next set of ads.Let's change our messaging as well, to make other customers aware of some of these features and some of these uses because maybe they'll find that appealing, or maybe it will help us acquire new customers, who will then become power users themselves.There are ways to take some of these forward-looking metrics and models and use them in messaging as well, but you're right. It is more about either developing products and services or partnering with other firms. Maybe we won't even make any money on it, but if we can go to our best customers and say, we're going to surround you with all of these different sources of value, we're going to build a whole ecosystem for you. That's the way to lock them in and acquire more like them.Edward: Can we do most of that without your models? I imagine most marketers know who their best customers are, or they can find that out fairly simply without a great deal of math. And then once they know who their best customers are, they can then go and build products and services for them. They can go try to acquire more of those customers. At what point do they need to have a Buy Till you Die model to do that?Peter: It's an excellent point and the answer is yes. Let me elaborate. I'm so obsessed with these models, not only because of their practical value but even just because of their mathy elegance. That maybe I get into the model too much, and I used to really believe as I was writing the books and founding Zodiac that I can just give you the CLV magic wand, that money will just come raining down from the sky.You're right that the models are just a means to an end, and you can actually come up with some decent proxies for lifetime value. It might be based on historical value, it might be based on something like Net Promoter Score.There could be all kinds of proxies that aren't quite as accurate, aren't as predictive, aren't as precise as the models themselves, but they still do a pretty good job of sorting out who the good customers are from the not so good ones.The harder part is, first of all, just to look for that. It's just to say that's what we got to do is to sort our customers out. To develop the insights, the capabilities, the organization, the corporate culture, to allow us to do all the things that I was just talking about a minute ago. That's the hard part, and absolutely, you could get away with some imperfect proxies of lifetime value, as long as you have the capability to do all the other stuff that I mentioned before.You're right. You don't necessarily start with the models. You start with the mindset, you start with the tactics. You start with the organization and the messaging, and then once you're comfortable that you can do that, okay. Now let's bring the models in.Edward: To refine it and make it better. If you're a CMO, and you're looking to make initial steps to move in this direction, because, again, at any large organization, we know that trying to change radically is very difficult. What's the Trojan horse to get this thing started?Peter: Yes. I come in lots of different ways. I mentioned the books before, so let's start the sea level, and say the sky is falling, you're doomed to fail. It's going to be an utter catastrophe unless you repent and follow me. I'm overstating a little bit there, but this basically says there are fundamentally different strategies that you haven't thought about before. They're going to really celebrate the heterogeneity of your customers that can help you make more money. Let's start trying a big picture, like what are the limitations of traditional growth strategies? What are the windows to some of these new ones?There's all that and then there's the data. Again, I've glorified the models maybe too much. I'm in the process of writing my brand new book, with my partner in crime, Bruce Hardy, and yet a new partner in crime Michael Ross, interesting guys. This new book is going to be called The Customer Base Audit: The first step on the journey to customer's centricity. Before we have any models, before we have any forecasts, before we look forward at all, let's just look at our historical data, stuff that's right there at our fingertips. To understand a lot of these ideas that I've been talking about, about how customers differ from each other, about how they differ over time and about how they differ from each other and how they differ over time.Let's take a look back and just understand the basic patterns, but do so in a way that's both simple, but also very sea level motivating. Let's just get you to appreciate the goal that's in them their hills and to really motivate the strategies, the models, and all that thing.I'm coming at it every which way. Whether it's looking at historical data, whether it's writing books, whether it's focusing on finance, whether it's looking at other bizarre use cases of the models, I'm coming at it from every angle, eventually hoping that the message gets through and that the company says, you know what, let's try it out. Again, it's a long, long road ahead, but it's been working reasonably well over the last few years.Edward: When is that book going to be up here?Peter: Well, we're about halfway done with it. Actually, I just sent a revised proposal to my publisher, Wharton School Press. Sometimes, I'm going to guess, the middle of 2021, but then if any of your listeners are interested, I could probably send at least a sneak preview, a quick overview or even a sample table of contents, because we're really interested in these ideas, and the way that it really helped us build a bridge, from the big broad, almost qualitative strategies, to the technical forward-looking models to really complete the whole picture.I think is going to really make a difference, and this is, by the way, is the first place I've spoken about it. You're getting an exclusive, and I hope people find it appealing.Edward: I hope so too. Thank you so much for being on the show today, Peter. Before you go, can you talk to me about your quake book? What book really changed the way you thought about the world, and you can't use one of your own.Peter: I wish it was some mathy kind of thing, and there's no doubt that some of the books, papers, or journals that I've read as a professor have helped me out. But one book that makes me say whoa, and then I go back and read again and again and again, it's going to sound really strange, is Breakfast of Champions by Kurt Vonnegut.I'm sure that a lot of your listeners might have seen that book years ago. Go back and read that book again. It's astonishing, just the creativity, just the mind-blowing alternative worlds that Vonnegut creates. I found that so inspirational, just in how I tried to think that there are no limits, and now I think that I can be just a wild creative guy and get away with it. Besides the literal story there, there are so many lifelong metaphors that are taken from that book. I'm going to sound really strange, but I can't recommend that one enough.Edward: Thank you, Peter. This has been fantastic. I would love to have you on again.Peter: It's always a pleasure talking to you and I look forward to the next opportunity. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketingbs.substack.com

This is a rare two-part set of free episodes of Marketing BS. My guest today is Peter Fader, professor of marketing at the Wharton School at University of Pennsylvania. Peter was one of my early marketing mentors and I loved this interview. In Part 1 we talk about Peter's career as a marketing academic and how he came to his signature theories around how one understands the value of a company's customer base. Tomorrow we will dive deeper into those theories.You can subscribe to the podcast in your player of choice here: Apple, Sticher, TuneIn, Overcast , Spotify. Private Feed (for premium episodes).TranscriptEdward: This is Marketing BS. My guest today is Wharton Professor, Peter Fader. I consider Peter one of my founding mentors for helping me understand how marketing really works. His most important contribution to marketing, in my opinion, is that you can model future customer purchases by assuming that your customer base is made up of a heterogeneous group of customers—each with their own intrinsic purchase rate and churn rate. And that those same models can be used in radically different businesses and industries to create extremely accurate predictions. Most importantly, because these predictions are accurate, it should influence what your actual actions are to grow your business sustainably.Today, we're going to talk about Peter's career and his intellectual path to this important idea. Tomorrow we'll dive into the idea itself and how it can be used for marketers in practice.Peter, can you start by talking a little bit about how you first started exploring the idea of Buy ‘Til You Die?Peter: Sure thing, my pleasure to do so. It's funny because that characterizes my career. That's what I'm most famous for. But (A) it's not my idea, and (B) it didn't even come to me until long after I was a full professor here at Wharton.I've been building all kinds of different models of customer behavior. How many customers will we acquire, how long will they stay, how many purchases will they make, and all that sort of thing. All the time looking at different data sets, thinking about different business settings, and saying, what would be a story? What would be a model that could capture and then project that kind of behavior?Back in 2001—again, I had been a professor here for 14 years already—I was building a model to capture a phenomenon that we see all the time. They did a customer-slow-down as they gained tenure with the company. It's pretty universal. I built a bespoke model to capture that and it was good, it was fine. I got the thing published. But along the way, one of their viewers was saying, you want to benchmark your model against this Buy ‘Til You Die model. Something that was invented back in 1987. But it was really technical, it was really obscured, so I thought it was an unfair request.I went to the editor of the journal and said, don't make me do that. Don't make me benchmarking that old obscure thing. And the editor agreed that I didn't have to. But I wasn't sure he would. I actually did benchmark the models that I was developing against these older ones and found that the old ones were much, much better.It doesn't show up in that paper. I then decided to devote the rest of my life, or at least the next 18 plus years, to exploring that other model—Buy 'Til You Die. Why it's so good, different variations of it, different applications for it, different motivations, and different managerial stories around it. That's basically all I've been doing since then. Taking someone else's model and running with it, calling attention to it, and finding some reasonable success with it.Edward: When did you realize that it was close to a fundamental law and not something that just might explain some of the data some of the time?Peter: Because I took it and started applying it to lots of other data sets. Again, this was more out of curiosity than necessity. That's just what we do as scholars which is just try things out. I wasn't only looking at the breadth of applications, I was looking at the robustness even for any one application. The idea that we don't have to have a long data set, and even if we have a shorter and shorter data set, if there is missing data, or if we don't have the same inputs that we get pretty much the same results.It started convincing me that this is more than just a cute model. It started convincing me that this is actually reality. I know that it's not—and I'm going to lose all credibility with you and your listeners here—but I'd like to make an analogy between this. Brace yourself—the theory of relativity. We all view that the theory of relativity, E=mc2, and all that stuff, we treat it as if it's true. It's not. It's just a theory. It's just a model. But the thing is it's so robust and explained so many different phenomena, even phenomena that weren't observable 100 years ago when Einstein was putting these ideas out there. But we just keep seeing it “proven” over and over and over again that we just treat it as truth.Now, I don't want to say that these BTYD models have anywhere near the implications, the importance, the cosmic explanations as relativity. But I think they're similarly robust and people would just be better off viewing them as if they were true instead of spending so much time pushing back and saying why their situation is different, why the implications don't apply, and why the world is changing. Let's just accept it as truth and our life as managers would be much easier and much more successful.Edward: But I want to go back a little bit to the path that got you here. I have a theory that things people do when they're 12-14 years old affect them for their entire lives. Where were you passionate about at that age? How did those things affect your later career?Peter: Oh my goodness. Wow, a bunch of different things, all really nerdy. The one that was most normal would have been baseball. At that time—I'm embarrassed to admit this, you're getting all this bad stuff out of me, Ed—I was a huge Yankee fan. I've repented since then. I've seen the folly of my ways. I was really, really, really into baseball statistics. Unfortunately, this was before anyone had heard of Bill James, sabermetrics, or Moneyball. All of that stuff was still years, years later. But I was almost—I don't want to say—inventing some of those kinds of things but I was thinking very much along those lines. How can we take the game of baseball and break it down into its underlying components, understand those things, and really focus on the underlying story rather than just the overall observable statistics? I was obsessed over that as I still am today. The other thing is kind of weird. I've always had an obsession with dollar bills with interesting serial numbers. Mom would come back from the grocery store and I would immediately go through her dollar bills. I would say, this one on a 0-100 scale, this one gets a 60. This one, maybe a 40. This one here, that's a 95. I'm going to keep that one. I was just always obsessed with interesting numbers, interesting serial numbers.Finally, when the whole internet thing started, I bought the domain name coolnumbers.com, and still own it today. That's all that site does is you put in any 8-digit number like a dollar bill serial number and it will tell you on a 0-100 scale how cool it is on my own quirky, arbitrary, don't even try to figure out universal coolness index. It's surprisingly popular. There's a lot of other nerdy people out there, or at least with too much time on their hands. That's the kind of stuff that I was doing. Just looking for patterns in data, but without any particular purpose or societal benefit. I'm really lucky that I finally found some meaningful purpose.Edward: I'm glad that you're working for good and not evil because I think on the website, you can enter your Social Security numbers. I'm sure people are doing that every day as well.Peter: Well, right now you can only put on 8-digit numbers. I'm waiting for some kind of undergrad or someone else. Maybe one of your listeners with too much time on their hands to help me flesh out cool numbers. You could deal with, let's say, a Social Security number, a 9-digit zip code, or whatever else. I got the algorithms all worked out. I just need someone to do all the coding.But thank goodness, I haven't wasted that much more time on it over the last 20 years. I had better things to do.Edward: You went to college for mathematics, but then you did a Ph.D. in marketing. Why did you switch?Peter: It wasn't my choice. There are very few people who say, Mommy, I want to be a marketing professor. It doesn't come up on career day when you're in middle school. It's an interesting story by itself because I indeed was just a solid math major. All I liked doing was crunching numbers, playing around with integrals, and all that sort of stuff. I didn't know what I would do for a living. I figured either end up as an actuary—calculating risks for insurance companies, I'd go to Wall Street, or maybe I'd go work for the NSA and break codes or whatever else.I was exploring all of these different options until this one professor, this marketing professor, her name is Leigh McAlister. She's still very active today at the University of Texas now, not MIT where I first met her. She came to me one day back in 1982 and said, you ought to be a marketing professor. You ought to get your Ph.D. in marketing. I looked at her and said, you ought to get your head checked because I'm a math guy, I'm not going into marketing. But she laid out this vision—again, keep in mind this was 1982, that's like 500 years ago.Edward: That's before finance was even getting into mathematics, let alone marketing.Peter: But she laid out this picture of what marketing would become. She was exactly right. That there will come a day when we'll be able to tag and track individual customers, know what they're doing, and then get some sense of which message we should send to which customer at which time. We're going to need rock-solid math underneath all that to figure it out, to make these decisions, and to evaluate those decisions. I didn't believe her, but she was very persuasive and she forced me to get a Ph.D. She literally—I'm not exaggerating—forced me to take this job offer at Wharton. I had offers from lots of other good schools, but she said, “Wharton is the place for you. It will have the people, the resources, the culture to let you pursue your quantitative passions in this domain.” And here I am. Now, this is year 34 on the faculty, calling her up every 6 months or so, saying thank you, thank you, thank you. She did change my life by pushing me in a direction that, again, I would have never imagined, and even actively resisted at that time. But boy was she right on every one of these dimensions. My whole life is just paying it forward to her in every way possible.Edward: If you hadn't met her, where do you think you would have ended up?Peter: Either a Wall Street firm or again maybe an actuarial firm. I took the first bunch of exams that actuaries take. I did an internship with an insurance company. I could see that there was some alignment there, but at the same time, it's not an industry that lends itself to creativity.I want to come up with new models, new explanations, new stories, just new methods. Whereas in insurance, even on Wall Street, and most of these other domains, it's once you have the way of doing things. It's just shut up and do it. I would have ended up doing one of those kinds of things. Maybe I would have been happy, who knows? I like to make myself happy no matter what's going on.But nothing could make me happier than the path that I followed. To have the colleagues, the resources, the incentives to come up with new stuff, and then brilliant students, including people like yourself who have taken some of those ideas and run with them, whether in academic directions or in commercial directions. I've just been super lucky to ride their coattails academically and commercially to find success both ways.Edward: Long before Buy ‘Til You Die, your first significant research was into strategies in a generalized prisoner's dilemma. What exactly did you find?Peter: Wow. That's a blast from the past. My dissertation at MIT—very few people know this because I tend to focus on all these predictive models of customer behavior and so on. But my dissertation couldn't have been more different.Indeed, I was looking at the prisoner's dilemma. I'm assuming that many of your listeners are familiar with it already. If not, they can search for it. There's so much out there on it. There's a lot of people who have been trying to “solve the prisoner's dilemma,” coming up with strategies that would be very effective in this very simple two by two game. Do I take the temptation to rat out that person, cut-price, or do the nasty action; or will I be good?The problem with the basic prisoner's dilemma, as they just implied, is that it has two players—me against you, and only have two alternatives because each of us does the aggressive tactic or the kind of nice tactic. Solving it, in that case, is fine but not very practical because in the real world, there's going to be lots of other complications, and let's just focus on two of them.Number one, there's going to be multiple players out there. There's going to be three or more firms. In fact, just moving from two to three is a giant leap forward because all of a sudden, if person number three does the nasty thing, what do I do? Do I wait for you—the nice guy, or do I respond to the nasty one? It's very, very complicated and we start getting all confused because if I react to him, then you react to me, and you get into this downward spiral.Number two, there can be multiple alternatives. Not just do you do the thing or not, but it can be shades of gray. You can be setting prices or discounts or even oil output levels if you think about OPEC. The generalized prisoner's dilemma that I put forth had a continuous range of alternatives. It was a price-setting and three players. It generalized, it built upon all the basic ideas of the textbook, two by two prisoner's dilemma. But it added all kinds of interesting complications, yet it still lent itself to some surprisingly robust strategies. Strategies that I explored in my dissertation. We've seen an interesting range of examples in business, in sports, and in life itself, where some of these strategies do tend to play out and lead to effective outcomes.Edward: In addition to your research, you've co-founded a few companies. Talk to me about Zodiac and how that happened.Peter: This goes right back to something I was saying a few minutes ago, which is riding the coattails of brilliant students both in the academic direction as well as the commercial. It's building out this Buy ‘Til You Die model, and they're really good. They worked really well. But most of the time, I was either just working on academic stuff to try to come up with new tweaks of them or just going to companies and trying to give them the academic version saying, here you ought to use this. Here, this model is good for you. Here's the code. Here's the spreadsheet. Here's the technical note. Here are some case studies. But the problem is, companies either found it a little bit too academic, or the kinds of data they were looking at was just so messy, so complex, or so large that the academic versions just weren't quite right for them. Back in late 2014, I had a conversation with one of my brilliant undergraduates. He basically had some ideas to make the models much more practical—to be able to run faster, to be able to run just much more efficiently. Brought in a couple of other folks, and we founded this company. First, we called it CLV Metrics—Customer Lifetime Value Metrics—kind of a lame name. And then we decided, you know what, we're getting such good traction on it. Let's make it real. We brought in some venture capital money. We started hiring a whole team. We changed the name to Zodiac, and it was a wonderful success.We work with a wide variety of firms. Whether it's retailers, travel and hospitality, telcos, gaming, pharmaceuticals, or lots of different B2B applications and different kinds of services. Just applying this Buy ‘Til You Die model in a wide range of scenarios and finding all kinds of success, all kinds of interesting tactical-use cases—it was really great. But of course, talking in the past tense, because in 2018 one of our clients came along and said, we want it all, and that client was Nike. We sold to Nike in March 2018, which again, was a wonderful outcome by itself, but also a tremendous validation for the usefulness, not just the academic interest in this, but the commercial usefulness of the models.Edward: We're going to go more into the usefulness of it tomorrow on our second podcast. You later, though, founded another company called Theta Equity Partners and this was different from Zodiac, correct?Peter: Yes and no. On one hand, there's the no part which is, at the very core, this very similar set of models, this Buy ‘Til You Die model. But the motivation and the main use case couldn't be more different. Back in the Zodiac days, besides working with lots of different companies that I described before, one of our clients was a private equity firm. They weren't that interested in figuring out which message to send to which customer. All they wanted to do was to say, listen, can you come up with the projected value of each and every customer, add all that stuff up, and tell us that number because we're thinking of buying that digitally native women's cosmetics company.We figured the best way to judge its valuation isn't through the usual top-down multiple approach, but it's from the bottom-up—how many customers will we acquire, how long will they stay, how much will they spend. That's what we did—the idea of customer-based corporate valuation. After we sold Zodiac to Nike along with one of my Zodiac co-founders, Dan McCarthy, we co-founded Theta Equity Partners. That's all we're doing is customer-based corporate valuation, working with private equity firms, family offices. I'm working with a lot of companies directly just to help them understand, unlock, and fully leverage all of that customer value. It's less about the marketer. It's just less about the tactics. It's more about finance, valuation, corporate governance, big strategic decisions, and again, it's been great. The models work well. It's probably an even more receptive audience—the finance people than the marketing people. Once you go over the finance people, then it becomes very easy to win over the marketing people as well.Edward: It's interesting, 38 years or so after you left finance to go into marketing, you're right back where you started with finance.Peter: I have to admit, I feel like a fish out of water because it's not really my home. It's not my core domain. I've been learning a lot over these last couple of years and I have tremendous respect for the people in finance and more and more every day. I can bring them a tool that they don't have through these models and through these perspectives. But the ways that they deploy it, some of these are very clever, smart, resourceful things they do, you could see why they are the big dog in most organizations and why people respect, maybe even fear finance much more than they do marketing. Because my objective is to bring them together and to get marketing and finance on the same level using the same models for strategic as well as tactical purposes, and we'll talk more about that.Edward: Peter,what was the biggest failure point in your career? What's the biggest mistake that you made?Peter: There's a difference between failure and mistakes. Let me talk about one of each. Maybe the saddest moment in my career—the one night I literally cried myself to sleep—was losing the Napster case. As I've said many times now, I'm interested in a broad variety of applications. I spent a lot of time in the ‘90s and early 2000s working with or maybe fighting with the music industry—there are amazingly good patterns there. It's very predictable. It's one of the better sectors if you want to apply the models, but it's a sector where they don't apply the models.Long story short, I got caught up in the Napster case, the original Napster, an original file sharing service that changed everything. I was with the good guys. Napster is trying to make the case why that file sharing service is the greatest possible thing for the music industry and making that case why it's good and why it will bring in lots of money. I wrote this whole long statement, did all this research about it back in the glorious summer of 2000, but Judge Marilyn Hall Patel, she pretty much rejected everything I said. She basically said, the idea that file-sharing could be good for the industry is preposterous and any research that would draw such a conclusion must be gravely flawed. I think those are her exact words.Edward: Your conclusion was wrong regardless of your methods.Peter: Exactly right. In the end, it didn't really matter. The reason why Napster was shut down, it had nothing to do with whether it hurt or helped the industry. But the fact is, it was against the law. The law might be stupid, that's a whole other question, so it was shut down. But I took it personally. I felt that this was a true failure on my part. I let down the revolution. It wasn't a mistake. It's just that I was betting on the wrong horse.Edward: How'd that changed things? Did you change your strategies going forward because of that event?Peter: Not really. It just made me want to fight harder. It's actually interesting. I said, look, this is just wrong. We need to show the industry that they are making a terrible mistake. In the early 2000s, I spent a lot of time banging on the door of the music industry, saying, listen, let's go after this together. Let's do the research to show the circumstances under which file-sharing helps, hurts, or is neutral. Let's really understand it. Let's understand the business implications. Let's not just stop at music. Let's talk about TV, movies, publishing, and basically all areas of media and entertainment.I set up a Research Center at Wharton for the Wharton Media & Entertainment Initiative. That went nowhere. Then we got a donation to set up the Wharton Interactive Media Initiative, and that was very successful. That then morphed into the Wharton Customer Analytics Initiative, which continues to flourish today. I spent a lot of time expanding on it. One might say pivoting from the work in the music industry to try to make a difference with models and understanding of customer data. It's just that the music industry and entertainment, in general, weren't all that receptive. It's just a matter of shopping these ideas and methods around to find a more receptive audience, which we did find a lot of success with.Edward: Tell me about the iPhone.Peter: Yeah, that was a mistake. A little bit of arrogance on my part. I was big into the BlackBerry. I mean that was a transformative device. Wow. When the iPhone came along, I staked out. I went way out on a limb staking out exactly the wrong turf saying, this device will just never catch on. Look at just how different it is. Look at all the features of a BlackBerry that it lacks. I'm never shy about my opinions. Usually, they're based more on data than just pure hunches. This case, pure hunch, wrong hunch, and I basically said that this is going to go down in history as a colossal failure. And again, I wasn't shy about it.When the iPhone celebrated its 10th anniversary of just a ginormous success a couple of years ago, people went out and found some of these—the incredibly dumb things that I said as it was being launched. I'll admit it. I'm big enough to acknowledge my mistakes. That's far from the only one. But probably the one that I got in—I don't want to say trouble, there's no trouble there—the most s**t for and entirely well-deserved. Even though I'm still not a big fan of Apple—I literally have never owned a single Apple device. Again, not that I'm against them but I just like buttons. I like to press things, whatever. I've learned better than to bet against them.Edward: This has been fantastic. We're going to come back again tomorrow to talk more about Buy ‘Til You Die. Thank you so much.Peter: Sure thing. It's always good talking to you. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketingbs.substack.com

In The Customer Centricity Playbook, Wharton School professor Peter Fader and Wharton Interactive's executive director Sarah Toms help you see your customers as individuals rather than a monolith, so you can stop wasting resources by chasing down product sales to each and every consumer. Fader and Toms offer a 360-degree analysis of all the elements that support customer centricity within an organization. In this book, you will learn how to: Develop a customer-centric strategy for your organization Understand the right way to think about customer lifetime value (CLV) Finetune investments in customer acquisition, retention, and development tactics based on customer heterogeneity Foster a culture that sustains customer centricity, and also understand the link between CLV and market valuation Understand customer relationship management (CRM) systems, as they are a vital underpinning for all these areas through the valuable insights they provide

Dr. Peter Fader author of "Customer Centricity"

Some customer metrics are so good at predicting customer behavior and the value of a company's customer base, says the Wharton School's Peter Fader, that “any sensible investor should be demanding these kinds of metrics. And of course, any sensible executive should be obsessed over these kinds of metrics internally.” In this, the second podcast in our two-part discussion, we talk about how executives can use these same metrics to change the way they look at customer investments.

As a professor of marketing at Wharton, Peter Fader has focused most of his career on analyzing data to predict how customers will behave. He is also cofounder of Theta Equity Partners, which offers customer-based corporate valuation—a way of valuing firms based on the quality of their customer base. His most recent work, in the January/February 2020 issue of Harvard Business Review and cowritten with recent podcast guest Dan McCarthy, is called “How to Value a Company by Analyzing Its Customers.”

Wharton School of Business Professor Peter Fader schools us on the idea of customer centricity. The idea of getting to know them in order to predict their behaviors.  We also take a look back to the birth of direct marketing and bring some of those founding principles into modern day methods.  It's a wild ride throughout the history of marketing with an Ivy League twist and quite a few $10 words! Peter Fader, Professor of Marketing, the Wharton School of the University of Pennsylvania What we talked about: The origins of direct marketing and how those principles still apply How to get to know your customer well enough to put that knowledge to work Expanding your views to consider customer retention a long term goal   This post is based on a takeover episode of the #Flip My Funnel podcast! Guest Host, Casey Cheshire of The Hard Corps Marketing Show talks shop with Peter Fader, Professor of Marketing, the Wharton School of the University of Pennsylvania  -------- Join me for weekly special LinkedInLive sessions where I interview your favorite guests like Pat Lencioni, Seth Godin, Whitney Johnson, and Kim Scott — LIVE. Here's the one-click invite: https://evt.mx/mSGV4Ka8

Dan McCarthy spends his time figuring out what loyalty is worth to shareholders, and how to measure it. As cofounder of Theta Equity Partners and assistant professor of marketing at Emory University's Goizueta Business School, he and his colleague, Wharton professor Peter Fader, have developed a technique called customer-based corporate valuation that helps shareholders value a company by analyzing how its customers behave. Their approach signals a shift from a “growth at all costs” mindset toward sustainable growth based on the acquisition and retention of profitable customers.

How do you prioritize your marketing efforts for customer retention and then use that to find your ideal customer? It's more than just the profile. It's more than the cost of customer retention vs. acquisition. So how is it done? Step through the door and have a seat because class is in session with Marketer, Author, Entrepreneur, Co-Founder & Director at Theta Equity Partners, and Professor of Marketing at the Wharton School of Business, Peter Fader. He educates the audience on what it means to start implementing customer centricity and how to change your mindset from cost to value.   Takeaways: Customer heterogeneity-The idea that customers are wildly different from each other. There is no ONE customer, they are all different. Each customer is the unit of analysis. What do the customers respond to? How can your company build relationships with them? They need to be a business' focus. Customer Lifetime Value (CLV)- “The future projected profitability for each and every customer.”-Peter Fader To consider CLV, the marketer needs to think about how long the overall relationship with this customer will last, how many orders they will buy, what is the size of those orders, and what is the profitability margin of each one? The Recency, Frequency, and Monetary value (RFM) of purchases, that each customer's history has, all influences their customer lifetime value. Recency, frequency, and value only apply to non-contractual purchases, this outlook is best used with one-off purchases. Taking into consideration RFM, allows business owners to decide whether they want to prioritize their efforts towards a customer that is threatening to not purchase again or if they should place their focus on a customer that just signed on. Consider an abundance vs. scarcity mindset, are you more concerned with the cost of customer retention vs. acquisition, or are you concerned with the value that the customer will have overtime for your business? Being an entrepreneur provides for an exciting educational experience. Do not be afraid to take a risk and see if your business model will work.   Links: LinkedIn: https://www.linkedin.com/in/peterfader/ Twitter: https://twitter.com/faderp Theta Equity: https://www.thetaequity.com/ Wharton School Website: https://marketing.wharton.upenn.edu/profile/faderp/ Customer Centricity Book: https://www.amazon.com/Customer-Centricity-Customers-Strategic-Essentials/dp/1613630166/ref=sr_1_2?keywords=Customer+Centricity%3A+Focus+on+the+Right+Customers+for+Strategic+Advantage&qid=1561730651&s=gateway&sr=8-2 Customer Centricity Implementation: https://www.amazon.com/Customer-Centricity-Playbook-Implement-Strategy/dp/1613630905/ref=sr_1_1?keywords=Customer+Centricity%3A+Focus+on+the+Right+Customers+for+Strategic+Advantage&qid=1561730749&s=gateway&sr=8-1   Busted Myths: Businesses need to be concerned with THE Customer.-This is not so, there is no ONE customer. Businesses need to be concerned with understanding all the different customers they might have and prioritizing their efforts to the right kind of customers. Customers are all different, therefore companies need to consider how their product or service should be marketed to these different kinds of customers.   Shout Outs 9:27 Lester Wunderman, Father of Direct Marketing 50:43 Leigh McCallister 54:04 Zachery Anderson, Electronic Arts

Peter Fader and Sarah Toms, the co-authors of Customer Centricity Playbook, share how to think differently about your target audience, which customer acquisition channel seems to always win, and how to become a more customer-centric business by determining exactly who your best customers are. For transcripts, show notes, and more, go to Leadpages.com/podcast  Top Takeaways from the Episode Diversify your idea of the target customer. Individual customers are wildly different from each other, both in terms of what they're looking for from you, and how valuable they are to you in terms of their future lifetime value.  Referrals first. No matter the industry, acquiring customers through referrals tends to be a strong channel, albeit with somewhat limited scalability. Evaluate your metrics in cohorts. Avoid using averages in your data, but explore metrics (like Net Promoter Score) across different customer groups based on acquisition channels, plan levels, activity, etc. Focus on the right customers. Discover the customer groups that will best respond to premium packages, and avoid spending too much energy on those whose customer lifetime value has a low upper limit.  About the PodcastThe Lead Generation Podcast features small business origin stories and marketing lessons for coaches, consultants, service professionals, and leads-dependent entrepreneurs. Our goal is to fire you up for your own business and shorten your pathway to profit while you make a positive impact on your audience.  About Sarah TomsSarah Toms is the executive director and co-founder of Wharton Interactive, a platform for marketing simulations. Her 20 years of being a thought leader in the technology sphere include starting several tech companies, and involvement with Women in Tech Summit and techgirlz.org.    About Peter FaderPeter Fader is the Frances and Pei-Yuan Chia Professor of Marketing at The Wharton School at the University of Pennsylvania. He was named by Advertising Age as one of its inaugural “25 Marketing Technology Trailblazers” in 2017 as the only academic on the list.

Wharton's Peter Fader and Emory's Dan McCarthy explain why customer-based corporate valuation is a novel -- and very accurate -- way of determining a firm's worth. See acast.com/privacy for privacy and opt-out information.

Companies have high-value customers and low-value ones but they all matter for businesses that want to make the most out of them according to a new book by Wharton's Peter Fader and Sarah Toms. See acast.com/privacy for privacy and opt-out information.

Large companies live and die by traditional financial forecasts—earnings estimates, sales targets and so forth. After all, it's how the market measures their value and whether they're worthy of investment.   The intense pressures to meet these goals can cause some executives to make short-term cuts that can undermine their long-term strategies. Some would argue that we need new gauges of corporate strength. The Net Promoter Score is a very powerful measure, but so is another: customer lifetime value. This measure helps companies identify their most valuable customers and build those relationships.  Peter Fader, a marketing professor at the Wharton School of the University of Pennsylvania, returns to the Net Promoter System Podcast to discuss the importance of measuring customer lifetime value. He recently founded a company called Zodiac that specializes in estimating customer value.  

Wharton professor and analytics expert Peter Fader joins WNS executive Raj SivaKumar to discuss the power of harnessing customer analytics for travel agencies and the hotel industry. See acast.com/privacy for privacy and opt-out information.

Wharton professor and analytics expert Peter Fader joins WNS executive Raj SivaKumar to discuss the power of harnessing customer analytics for business success in the airline industry. See acast.com/privacy for privacy and opt-out information.

Wharton professor and analytics expert Peter Fader joins WNS executive Mike Nemeth to discuss the power of harnessing customer analytics in the insurance industry for business success. See acast.com/privacy for privacy and opt-out information.

Wharton professor and analytics expert Peter Fader joins WNS executives Raj SivaKumar and Mike Nemeth to discuss the power of harnessing customer analytics for business success. See acast.com/privacy for privacy and opt-out information.

Tech startup Zodiac was co-founded by Wharton professor Peter Fader and CEO Artem Mariychin to help companies find – and serve -- their most valuable customers. See acast.com/privacy for privacy and opt-out information.

Peter Fader, co-director of the Wharton Customer Analytics Initiative at the University of Pennsylvania, talks about using data to understand consumers (5:20), become more customer-centric (13:08) and target the most valuable customers (32:22).