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 final series, we will summarize and explain how to proceed with the “5A Loyalty Diagnostic” strategy development.
In this series of articles, we have introduced three types of “5A”, “Perception”, and “CX” diagnoses for the “5ALoyalty Diagnosis” service. The “5A Loyalty Diagnosis” is the first step in developing a strategy for loyalty marketing. The “5A Loyalty Diagnosis” will give you the minimum marketing guidelines you need. Now, what is the strategy that needs to be developed?
Loyalty derived from 5A diagnosis
Marketing strategies are generally conceived according to the STP/4P framework. STP is a method of knowing the market segments, determining the targets within those segments, and how to position the company’s brand within those segments. By utilizing STP, a company or brand can establish guidelines on whom to target and how to position itself, and clarify the strategic goals of marketing. This strategic goal can be clearly demonstrated in line with loyalty marketing by conducting a “5ALoyalty Diagnostic” in any market. As you will recall, the first step in the diagnosis is to examine the strength of your company’s loyalty. This is the measurement of “5A” itself. By knowing the strength, we can discuss how strong or weak is loyalty by gender, age, region, and among your own competitors, which areas need to be strengthened or to be weakened. This identifies the goals to be targeted within the STP segmentation as well as the segmentation of the STP. When you want to strengthen loyalty in the market in which you are located, it means that you can visualize who are the segments that you should target. For example, given the current historical context, you may often find yourself saying, “Our target is Gen Z women”. The first measurement of the “5ALoyalty Diagnosis” can provide such an answer.
Messages to customers derived from Perception Diagnosis
So, continuing the example, what kind of message should be conveyed when “targeting Gen Z women”? If this is not determined, the goals to be strategically acquired cannot be defined. Perception Diagnosis is the answer to this. Perception diagnostics will clarify the answers to questions such as how to improve those who are currently weak in loyalty, or how to differentiate their loyalty compared to the competition. And it is very important that the results of this diagnosis are quantitative. Obtaining sufficient qualitative hypotheses is generally done through qualitative research. This makes some sense for getting clues, but when it comes time to actually take action with company resources and budgets, qualitative research can be very difficult to evaluate. In contrast, the “5ALoyalty Diagnosis” provides quantitative results, so there are fewer concerns about strategy implementation. With the results of the Perception Diagnosis, it becomes clear what message should be communicated to the company’s target audience.
Effective media derived from CX diagnosis
So far, we have almost completed the outline of the STP of marketing strategy. However, now we must consider the 4Ps. The 4Ps are product, price, promotion, and place, but a product, price, and place have little to do with this diagnosis, and the important item here is the “sales promotion” part. Specifically, the question is what media should be used to communicate the message to the company’s target audience. Even today, there may be no cheaper media than television in our country to gain per capita recognition. However, as Philip Kotler has said, the TV medium is not good at deep communication that spurs them to action and turns them into fans, although they have an advantage in creating a light relationship with consumers at the beginning of the 5A customer journey. The CX diagnosis quantitatively verifies the touch points with consumers and measures the best way to use a combination of digital, word-of-mouth, and mass media. In our research, we found that in some cases, the campaigns and media that companies spent the most money on turned out to be completely irrelevant to purchases and loyalty, while in other cases, promotions that were not costly but were conducted in the field proved to be very effective.
Implementing a marketing plan without understanding the characteristics and effects of each media is like wielding a sword in the dark.
The “5A Loyalty Diagnosis” consists of three modules, all of which are quantitative in nature: knowing the segment, determining the target, identifying the message to be communicated, and measuring the media used to communicate the message in terms of efficiency. The “5A Loyalty Diagnosis” is not the answer to all your marketing needs, but it will definitely provide you with the minimum necessary and sufficient information for your future loyalty marketing efforts.
（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）
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”.