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Factfile 41

Problems of corporate myopia

The London Business School survey of world-beating companies (Ambler, 2000) revealed that boards are happily reviewing historic financial performance data, but failing to review lead indicators to do with customer preferences.

• Yet, it is customer preferences that open up the cash flow. At a time when the market is uncertain, this behaviour doesn' seem to make sense. Revenue and margin depend on satisfied customers.  
  
  
• The strange thing that showed up in this London Business School survey is that while companies readily measure sales volume, value and profit, only two thirds measure customer satisfaction ? and, worse, only one third report on it to the board.  
  
  
• Is this supply chain management? Or is it an opportunity for marketers? Supply chain management is perceived to be the province of the purchasing profession, but it's about time that marketers woke up to the fact that they may be looking down the wrong end of the telescope. Much more is being expected of companies throughout the supply chain.  
  
  
• To meet the ultimate end-users' needs, they have to understand what motivates them and to determine what their future needs are likely to be. Market research results among Leading Edge Management Consultancy b2b clients re-emphasise time and again that end-users just want solutions and also think that they are buying certainty with them. (See also Robert Lauterborn 'New marketing litany' Advertising Age, Oct 1991.)  
  
  
• The corporate myopia of focussing on the present way of meeting the immediate customer's needs only is missing the real opportunity. Marketers need to stick their heads over the parapet and look up at the end of the supply chain. This is demand chain management.

CIM are currently seeking contributions in the area of alignment of marketing activity and sales effort. Help shape best practice by submitting your articles, research case studies and marketing tools to this canon project. In the first instance, email: editor@cim.co.uk. Please use the title: M2B ? Alignment. All work submitted will be protected by copyright, retained by the author.

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