The Prove­nance Chain has five stages

TravTalk - Middle East - - GUESTCOLUMN -

Prove­nance is a brand’s le­git­i­mate source of ex­per­tise, au­then­tic­ity, and author­ity: It is fa­mil­iar­ity, qual­ity, lead­er­ship, and trust.

Per­ceived value is the cus­tomer’s as­sess­ment of the trusted qual­ity and worth of the brand. Trust is a crit­i­cal el­e­ment of per­ceived value. To­day, cus­tomers make busi­ness, brand and per­sonal de­ci­sions with­out ever see­ing the re­la­tion­ship part­ner. Engi­neer­ing trust into the dig­i­tal ex­pe­ri­ence is es­sen­tial for build­ing us­age, per­ceived value and prof­itabil­ity.

Pref­er­ence means that cus­tomers will choose a brand over equally priced avail­able op­tions, be­cause it con­sis­tently de­liv­ers a dif­fer­en­ti­ated ex­pe­ri­ence. As pref­er­ence strength­ens, cus­tomers will choose that brand even if it is pre­mium-priced. Pref­er­ence leads to in­creased pur­chase fre­quency and loyal cus­tomer re­la­tion­ships – an emo­tional com­mit­ment, not just con­ve­nience. Pref­er­ence gen­er­ates trust cap­i­tal.

Trust cap­i­tal is a form of or­gan­i­sa­tional wealth, along with fi­nan­cial, in­tel­lec­tual and hu­man cap­i­tal. Trust cap­i­tal is the con­fi­dence stake­hold­ers have in the good­will of an or­gan­i­sa­tion to con­sis­tently de­liver prom­ises of value. Good­will is the ex­cess of the price paid for a com­pany over its fair mar­ket value and the part of trust cap­i­tal that ap­pears on the cor­po­rate balance sheet. Trust cap­i­tal leads to high qual­ity rev­enue growth.

High qual­ity rev­enue growth means in­creas­ing both quan­tity and qual­ity of sales. It comes from hav­ing more cus­tomers who pur­chase more of­ten and are more loyal. This leads to in­creased mar­ket share and lower price sen­si­tiv­ity.

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