This article introduces the “5ALoyalty Diagnosis” service, which allows you to engage in loyalty marketing based on the original indicators proposed by Philip Kotler, the “father of modern marketing”.
This is a five-part series on why loyalty marketing is needed now, and the purpose and benefits of the service. In this first series, we will explain the changes in modern marketing and outline the service.
Changes in Modern Marketing
It is said that marketing is now undergoing a major change.
While digital transformation (＝ DX) has been cited as the backdrop for major changes in marketing, we must not forget another major factor: the global population decline.
In today’s world, where DX is changing the form of communication and the population of the marketing population is shrinking, the most important thing is to be close to each and every customer and to increase their loyalty. We call this loyalty marketing. The concept of loyalty marketing is that values the relationship with each individual customer and creates a good cycle that allows that customer to expand to another customer, in contrast to conventional strategic marketing, which has been based on the tactic and position of “how to acquire customers as quickly as possible.
In other words, unlike conventional hunting-type marketing, this type of marketing can be called farming-type marketing, in which customers are nurtured and developed.
Encounter with the original indicator “5A (Five A)” proposed by Philip Kotler
In the process of transcosmos (hereafter referred to as “our company”) was considering marketing that would be useful to our clients based on this type of marketing, we came across the book “Marketing 4.0” by Philip Kotler, who is known as the father of modern marketing. At a time when the concept of loyalty marketing was having a hard time gaining traction in the business world, this book presented the exact idea of loyalty marketing. With a desire to measure this concept on a concrete numerical scale and provide it to our clients, we attempted to contact Mr.Kotler. The result was arrived at by two of the co-authors of Marketing 3.0-5.0, Hermawan Kartajaya and Ivan Setiawan.
Eventually, we formed a business alliance with their Indonesian company, Markplus, and we are now the only company in Japan that can provide our clients with Kotler’s original measure of loyalty (i.e., the 5A customer journey).
As a service using the 5A indicator, we offer the “5A Loyalty Diagnosis”. This “5A Loyalty Diagnosis” consists of three major modules, which are described below.
Three modules of the “5A Loyalty Diagnosis”
The first is the aforementioned 5A measurement using Philip Kotler’s original scale. However, in the course of this research, we found that it is difficult to construct a loyalty marketing strategy simply by measuring “who” is more or less loyal, or who is stronger or weaker than the competition. A second and third modules were subsequently developed to provide sufficient information to implement loyalty marketing based on this 5A scale.
The second is a module by Dr. Glen Urban of MIT called “Perception Diagnosis,” which has been applied and improved to the “5ALoyalty Diagnosis” service. This is an analysis to determine the reasons behind strong and weak loyalty. Quantitative analysis is conducted to understand what benefits are important in the surveyed market and which benefits influence purchase intention and becoming a loyal user.
The third module is called CX Diagnosis. It measures how to communicate the content and effective messages found in the second perception diagnosis. DX has brought us, companies and consumers, into many points of contact. This is a diagnosis to quantitatively evaluate which media in the contact points is the most efficient way to transmit the message.
These three diagnoses are collectively referred to as the “5ALoyalty Diagnosis. It can provide a minimum of three elements: the actual state of loyalty, the message that needs to be communicated to improve loyalty, and the method of communication. In other words, we consider this service to provide sufficient information to build a strategy for clients who want to start loyalty marketing in earnest.
（Commentary / transcosmos inc. Tsunehiro Fukushima）
Introduction of 5A Loyalty Diagnosis service; Part 1: Getting Started in Building a Loyalty Marketing Strategy（5 part series）
“Introduction of 5A Loyalty Diagnosis service; Part 2: What is 5A Diagnosis?（5 part series）
“Introduction of 5A Loyalty Diagnosis service; Part 3: What is Perception Diagnosis?（5 part series）
“Introduction of 5A Loyalty Diagnosis service; Part 4: What is CX Diagnosis?（5 part series）
“Introduction of 5A Loyalty Diagnosis service; Part 5: Summary（5 part series）
Tsunehiro Fukushima will direct your marketing efforts
At transcosmos, we offer marketing strategy proposals along the 5A concept advocated by Philip Kotler. For actual proposals, Tsunehiro Fukushima, the commentator of this article, will support loyalty marketing optimized for the digital age. Please tell us your company’s concerns.
Corporate Executive Officer, transcosmos inc.
Director, Japan Marketing Association
After completing graduate studies at Tokyo Institute of Technology, he joined Ajinomoto Co., Inc. He then worked for GE Capital, Mitsubishi Corporation, Gurunavi, Inc., and Medical Data Vision Co., Ltd., where he served as head of big data business and marketing. His areas of expertise include new business and new product development, brand theory, medical business, and loyalty marketing. At transcosmos, he is in charge of marketing-related business development and is the exclusive provider in Japan of the 5A diagnosis introduced in the book “Kotler’s Marketing 4.0”.