July 2012 - c3centricity | c3centricity

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The 7 Keys to Word-of-Mouth Marketing

Ever wonder how to get people talking about your business? Start by offering them incredible products and services that solve their problems and fulfill their needs. Make your customers happy and give them something to talk about. Read this article to access 7 key elements that will get people talking about you!

Every strategy comes with its own set of rules, and so does word of mouth marketing. Yes, this means that you can actually create a strategy to generate positive word of mouth support for your business.

But first: why does Word of Mouth matter?

Learn about cognitive dissonance: “this is a discomfort caused by holding conflicting cognitions (e.g., ideas, beliefs, values, emotional reactions) simultaneously. In a state of dissonance, people may feel surprise, dread, guilt, anger, or embarrassment.”

In other words: people are always searching for ways to reduce this cognitive dissonance (to reduce risk and hence fear!).

Receiving positive reviews by word of mouth from friends or family on products or services will reduce the dissonance, as it confirms people in their beliefs that this is a good product or service. You could also define this as the effect of social proof. “If X amount of people share a positive experience, it has to be great!”

So, given that consumers need input to reduce the risk they take, and hence the fear that goes along with buying stuff, here are 7 key elements that will generate positive word of mouth promotion for your business:

 

#1 Make Customers Happy

If you value your customers, offer them more than they expect! And do it all the time. It’s not only the great product or service that generates loyalty, but the implicit message that states “you matter to us!”. That’s what every customer wants to hear! Solid relationships thrive on rewarding your customers with a creative surprise. Watch the smile on their face!

 

#2 Focus on Br and Commitment

In Spreading the Word, Tom Brown defined Br and commitment as:

“An enduring desire to maintain a relationship with a specific entity.” (Brown e.a., 2005, p. 126)

Your Facebook br and page may offer you a unique opportunity to build and nurture a relationship with your fans. But, it takes more than just generating a Like for your Fan page to get people to talk about you! Just watch how many Facebook pages have almost zero engagement.

So, ask yourself these 2 questions every day: “do your customers have an enduring desire to maintain a relationship with your br and?” and “what do you do to earn your fans’ trust each day?”.

If you focus on the enduring desire of fans to maintain the relationship with your br and, this sets the conditions for successful viral word of mouth marketing.

Br ands with a strong and engaging fan base on Facebook can count on daily likes, shares and comments. This engagement will increase your visibility and accelerate your Reach. This social proof will increase your br ands’ attraction and generate more fans. If you want to learn more on this, check out Social Midas.

 

#3 Offer Distinctive Products and Services

When it comes to distinctive products, for most people one word is enough: Apple. Steve Jobs has succeeded in building a strong br and that people associate with innovative products that rock! Every time Steve introduced a new product, like the iPod, iPhone or iPad, people just had to talk about it and still do!

When you think about distinctive service, I’m sure Zappos.com resonates with you. Not only does Zappos offer shoes online, they value their customer’s trust more than anything!

If you offer new distinctive products or services, people just want to talk about that. It’s up to you to generate virality by offering them great content about your products or services, so they can share it with friends and family. Think about blog posts, videos, podcasts, badges or other promotion material.

 

#4 Nurture Involvement

Offer solutions that connect to the mental relevancy of your customers. Think about how to trigger a big desire or confront huge pains or frustrations. Get into the middle section of your customer’s brain (limbic) to create somatic markers. These markers connect a personal experience with your br and. Just like a can of Coca-Cola will generate happiness and warm feelings for a lot of people. Continue to nurture these feelings and watch how your customers want to share their experience with their family and friends.

 

#5 Connect with Market Mavens

Market mavens are individuals who have up-to-date information about many kinds of products, places to shop and other facets of the market. These market mavens are the ones who are most likely to respond to information requests from friends or family. They love to educate others, and it also increases their status. Connect with these market mavens and make them your br and advocates.

 

#6 Identify your br and advocates

When it comes to word of mouth marketing, referrals by br and advocates are your most effective type of marketing. If you want to include these influencers in your strategy, you need to identify them first.

Fortunately, Satmetrix, Bain & Company and Fred Reichheld developed “The Ultimate Question”.  Ask your customers: “How likely are you to recommend us to a colleague or friend?” and calculate the Net Promoter Score. People that indicate this likelihood with a 9 or 10 are “loyal enthusiasts who will keep buying and refer others, fueling growth”.

 

#7 Invite Social Media Stars

If you want to increase your word of mouth marketing effectiveness on the social web, you need social media stars. These are social media users who reach a great number of people and have much influence. The Klout Score is certainly a great measure to identify these social media stars.

The Klout Score uses data from various social networks -like Twitter, Facebook, Google+, LinkedIn, Foursquare, YouTube, Tumblr and Flickr in order to measure your True Reach, Amplification and Network Impact.

As more social media management tools -like HootSuite or SproutSocial- include Klout Score as the main indicator of social influence, I think it’s worth paying attention to the Klout Score of your online connections.

Take Away: although no one can predict virality of customer experiences on the social web, word of mouth marketing matters more than ever. Underst and these 7 key elements and create your own strategy to stimulate positive word of mouth.

My recommendation on word of mouth marketing: “Word of Mouth Marketing: How Smart Companies get People Talking”.

We love to hear from you! Please share your reaction in the comments box below. Thanks 🙂

To learn more about connecting with your customers, please check out our website here: https://www.c3centricity.com/home/engage/

This post was first published on Felix Relationship Marketing on April 12th 2012

6 Tips to Thinking Outside the Innovation Box

Does your business have an innovation process? No? Then perhaps you should count yourself lucky! Most businesses that do have one, sometimes get stuck in it, stopping them from thinking Bigger and Bolder, and therefore also stopping them from dreaming. If this is the case with your own organisation, then this post should offer some inspiration for change.

When companies are starting up, they often begin with just one or a few products or services to offer. However, as they grow, they get ideas about other products or services they could add, sometimes at the suggestion of their current customers. As business continues to grow, they might set up an innovation process or put someone in charge of searching for new ideas and unfortunately this tends to be when they start to lose contact with their customers and what they really desire.

Today we all underst and the importance of customer centricity, the power of putting the customer at the heart of the business and yet we still manage to forget them somehow when looking to innovate. For this reason, I thought it would be useful to share my six tips to help you to think outside the innovation box in your organisation, whether you are a big multinational, or just a small local firm.

#1. Start with your customers in mind

This makes so much sense and yet we all seem to forget it at times. Big companies have R&D departments so their innovations tend to be technology and skill driven. Smaller ones have maybe more limited resources, so ideation falls on the desk of the owner, marketing head or the person responsible for operations. All businesses have customers, so why not start with them? What do they dream about improving, what are their biggest issues with your category? Finding solutions to their frustrations will almost certainly guarantee the success of your next new product or service.

#2. Why do you want to innovate?

The answer to this simple question will give you some ideas of the solutions you need to create:

  • Is competition growing? If so, what do they know about your customers that you don’t? What can you do about it, both now as well as in the future to stop it happening again?
  • Is the market segment growing faster than you are, so even though your sales are growing you are losing market share? If so, why; what products and sub-categories are increasing, what benefits are attracting customers more than in the past? Can you follow or lead with a different benefit area?
  • Is your image getting old and in need of updating? Where are your comparative weaknesses and is competition filling all possible positionings in the category map?

#3. Do you need to innovate or renovate?

The difference between the two can make a huge difference in what you develop. If you need to innovate but actually produce a “small” innovation, closer to a renovation, you are less likely to succeed, at least in CPG, according to Steenkamp. Identify which end of the innovation scale you are aiming for and rework your ideas until you reach it.

#4. Can you innovate outside your box?

Most companies innovate in very predictable ways, so that even their current customers are less excited or inspired to try their new offers. This is unfortunately a trait of human behaviour; we all get bored in the end, even with the best product or service that excited us when it was launched. What was once seen as a breakthrough can quickly become taken for granted as customers become used to it. Therefore why not think outside the box, using different levers? For example food companies continuously bring out new flavours, when maybe a new sensation is what’s needed. Nestlé’s chocolate mousse is a great example of this.

#5. Reinventing innovation needs a new culture, not a new process

As mentioned above, new processes are usually not the best answer to more successful innovation. According to a recent Forbes article likeminded people develop likeminded products. To create breakthrough innovation, you need a culture shock, people who think differently. This can be as simple as taking people from different departments to work together, or hiring people from the outside, with very different mind-sets to stimulate new thinking.

#6. Innovate in answer to scenarios not trends

Most customer-facing organisations follow societal trends. The problem with this is that their competition is doing exactly the same thing, which means that they will be in a constant rush to launch faster than their competitors, and at best end up leading a new segment of two or more almost identical products.

A much better way to innovate is to respond to opportunities or challenges identified by developing future scenarios out of the trends. These have the advantage of being unlikely to be duplicated, at least in the beginning, and are further out time-wise so they will allow more time to create a new offering even before your customer knows they have the need. In some cases this might mean you will have to be patient until the customer is ready – it took Nespresso more than 20 years to become the phenomenal success it is today! – but at least you are less likely to be faced with a competitor offering a similar product.

If you follow these six tips, you can be sure your innovation will meet with greater success and your business will be well prepared to capture future opportunities better than the competition. If you are already doing all of these, I congratulate you. Still struggling to grow as fast as you would like? Well then here is my seventh, only for the bravest innovators:

EXTRA #7. What business are you in?

If you are constantly met with innovations from your major competitors just before or after your own launches, then it is time to get out of the fight be changing the territory. What do I mean by that? Ask yourself what business you are really in.

For example a cigarette manufacturer could see itself as a provider of personal pleasure; now that opens up innovation doesn’t it, far beyond just a different cigarette br and? And suppose a food company became a nutrition business offering supplements and meal replacements; a home cleaning corporation widens to become a home carer and beautifier; a pet food company shares its passion for animals be offering insurance and medical treatments. Asking what business you are really in and not the one you thought you were in, can sometimes be just the spark that is needed to truly successful innovation.

So which one of these are you going to use this month to start reinventing your innovation? Take action today, so that you get a positive ROI on your reading of this post.

Would you like to share your own ideas for improving innovation? Please add a comment below; we reply to all comments and might invite you to write a guest post on the topic for us.

If you want to know more about innovation, please check our website here: https://www.c3centricity.com/home/vision/

Do you know someone who is struggling with their own innovation? Please share this post with them.

Does your organisation need more help in reinventing its own innovation? We can run a 1-Day Catalyst session to get you started FAST; contact us here for more information.

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Successful Innovation comes from answering Desires not Needs

What is the difference between a need and a desire? Emotion, that’s what. A need is something for which someone has a necessity; a desire is something they want or crave, whether they know it or not.

There are the three main types of products or services that companies offer; it is important that you underst and the difference between them as well as what you are offering or planning to innovate, if you are to be successful.

Some organisations speak about articulated, unarticulated and unimagined needs, but they miss the power of emotions if they are considering all three as simply needs to be addressed. Unless there is an emotional connection between what you are selling and what your customer perceives he is buying, you are likely to remain at the level of a commodity, or at best are restricted in the price you can charge. Only emotional connection brings passion into the equation, when customers desire or crave your product or service and are willing to pay (almost) anything to have it.

Examples of Great Emotional Connection

Think about Apple as a great example of a company that brings passion into their products, so that potential customers pre-order or spend the night queuing in front of the shop in order to have the privilege to give Apple their money in exchange for the latest gadget.

Now I love Apple as much as most people, but are their products really worth more than their competitors? Was the iPod really that much better for listening to music on the go? Probably not, but it is their customers’ desire to be a part of the Apple “family” that makes them crave their products.

Another example is Marlboro cigarettes. Do they really taste better than other br ands? Maybe, but it is not the taste (alone) that makes smokers remain loyal to the br and; rather a feeling of community and adherence to a desired image.

And speaking of taste, what about colas? The now famous brain imaging study run by Baylor College of Medicine – you can read more about it here – showed that consumers thought Pepsi tasted better that Coke, but there was something very different happening in the brain when consumers thought they were drinking Coke or Pepsi. It was what the consumers were thinking that made the difference, a result of br anding.

So what can you do to make your customers think differently about your br and, so that they remain loyal to it, desire it and even crave your product or service? Bring in and stimulate their emotions; here are four ideas on how this can be done:

#1. Make them feel special, different, privileged

This can be achieved through:

  • higher prices – many premium and luxury products are priced more on image than on cost and their customers are happy to pay more for the associated image that has been created
  • membership to a br and club with special privileges – Nespresso is a great example of this; their clients get to order online and even get asked their opinion or to choose new flavours
  • personalised offers – unlike clubs, these are offered to a wider group of purchasers (on a mailing list for example) but the wording of communication and the offers proposed are personalised to each target group, so they are perceived as more personal

#2. Stimulate more of your customers’ senses

So that competitive products are disappointing in comparison. As Nigel Hollis, Chief Global Analyst at Millward Brown, mentioned in his blog post Sensory br anding and sensible questions, “The research conducted for BRANDSense confirms that memories of the sensory br and experience do have an important role to play in encouraging br and loyalty. The stronger, more positive and differentiating, people’s sensory memories are of a br and, the more likely they will be to consider it for repeat purchase”. For example:

  • add sound and texture to a food through a hard coating, as many ice-creams offer today
  • provide extra sensations in the mouth through additional ingredients; c andy and chewing-gum often offer these as new sensations
  • surprise through special perfumes for household products; remember the popularity of “green apple” a few years back?
  • astonish with unusual colours for personal care products; have you tried the range of Pantene colours, the shampoo I mean!
  • amaze through special textures of creams or clothing; luxury face products are often claimed to have a richer, creamier or more “melting” texture.

#3. Involve your customers in the innovation process

Even if your customers don’t always know or can’t express what they want, they are usually much clearer about what they don’t want. Listen to them describe their experiences with your product or service category and the pain-points they have. What do they like, dislike; what would they change? And more widely, what do they think about the category, their situation when needing or using your product or service, what feelings they have using ir?

By getting them involved from the start, you are much more likely to satisfy their rational needs and emotional desires, AND you will encourage discussion as they share their experiences with their friends, family and perhaps even wider on the web.

#4. Build excitement through communications

Many products and services are launched with a “teaser” campaign that sets and builds customers’ expectations for weeks, if not months before launch. This certainly can make your target audience excited with anticipation, but the new product must deliver on its promises.

Remember the launch of the completely redesigned BMW Series 5 in Europe about 10 years ago, which had to be quickly replaced with the older design when current owners rejected the modernisation? Or what about the more recent launch of the BMW 5 Series GT in the US, which had 5 Series Touring customers running to rival Mercedes-Benz and many current Series 7 owners downgrading to the cheaper car? As with any product or service, you must deliver what is promised and this becomes doubly important if you fire your future customers with excitement for the new launch.

These are just four ways in which you can bring more emotion into your innovations; I know there are many more, so why not share your own experiences here? We would love to hear how you have brought more emotion into your products and services.

For more on Innovation, please check out our website here: https://www.c3centricity.com/home/underst and/

If you are struggling to bring emotion into your products or communications, please contact us, we can certainly help support you through advice or a 1-Day Catalyst session. NO obligation, just a great OPPORTUNITY!

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10 ways Customer Excellence can Ignite Your Business: And Why You Need It Now

Why are so many businesses looking at building a Customer Excellence (CE) department today?

Customers, consumers and clients are demanding more attention; they want to be heard, they want to be seen and understood for who they are; they want their needs and desires answered. Social media has increased our attention to them, but many organisations are still struggling to walk the talk of customer centricity. If this is your own case and you are looking to develop customer excellence, then this post is for you.

Several companies have contacted me in the last few months, to ask for help in creating a Consumer / Customer Excellence Department. Having already gone through the challenges of doing this when I worked in the corporate world, I knew that I could certainly help others with this exciting objective. However, each time, my first reaction was to ask “Why”; not why they had contacted me but why they wanted to create the group and why now?

Setting up a Customer Excellence (CE) department is not just a structural change; it is more importantly a cultural change that must go deep into the whole organisation if it is to work. #CEX #CMO #CustomerFirst Click To Tweet

It is often the CEO or CMO who makes the original request, since they feel that the company is not paying enough attention to their customers. However, the initiative will only succeed if everyone in the company not only buys into the vision, but is also excited by the changes it will bring.

 

Let me share some of my own experiences to help you on your own journey, by illustrating a few of the imperatives to succeed in such an initiative:

#1. CE should report into the Board

This new department must report into the board and ideally have a seat there too. The initiative must be seen as an organisational and not a departmental objective. If CE reports into marketing, it will be seen as a marketing support group; maybe just a new name for the traditional marketing services, market research or insight departments, as I am sad to report was once said to me by my CEO!

 

#2. CE should group all customer-facing departments

Customer Excellence should include all customer-facing departments, including market research and insight of course, but also care centres, consumer services, web services, CRM and perhaps even the promotions teams.

Customer Excellence should include all customer-facing departments, including market research & insight, care centres, consumer services, web services, CRM and perhaps even the promotions teams. #CEX #Customer #CustomerFirst Click To Tweet

This means that CE will watch over both personalised and anonymous connections with customers, but these can provide valuable information that can be integrated and used cross-functionally.

 

#3. CE ensures the business connects with the same tone & vocabulary

Every personalised contact with the customer must use the same tone and voice. They should also be based upon background information about every previous connection, by whatever medium used. In this way, the customer who already sees them all as links to the company, will perceive that the business cares about them and wants to build a deep relationship and understanding of their needs and desires. Everyone likes people who take a positive interest in them, so this is a true win-win.

 

#4. CE should be multi-category

In order to truly integrate all the knowledge and understanding, the CE group should also work across categories and brands in a multi-category company. In this way they will comprehend the person as a whole, and not just as a category user.

This also has the added benefit of giving the organisation an opportunity to cross-sell and up-sell when a connection is made, by proposing appropriate products and categories.

I am sure you have all been contacted at some time in the past for an inappropriate product, by a company that didn’t do this, right? For example diapers promoted to single men, a new desert to people on a diet or who are diabetic, innovative new alcoholic beverage to teetotallers etc etc. Irritating for the customer and damaging the image of the brand.

 

#5. CE should be Global

Wherever relevant, Customer Excellence should have a worldwide remit, integrating all regions and markets. This enables them, and the business, to be aware of global as well as regional category and societal trends, which in turns helps the company be prepared for future opportunities and challenges.

In addition, this can build a useful community spirit, especially in decentralised organisations. Markets should always be looking for information from countries ahead of them on any relevant trends, whilst also looking back to help those who are following them on other trends.


Customer excellence roadmap in the book Winning customer centricityThe book Winning Customer Centricity: Putting customers at the Heart of Your Business – One Day at a Time  includes a simple roadmap for adopting a customer first strategy. It covers the four foundational topics that need to be addressed.

Find out more and about the book and reserve your spot for the webinar:

 

 

 

 


#6. CE should develop Scenarios

Most organisations today follow trends, but these do not bring competitive advantage unless they are developed into future scenarios. By doing this, Customer Excellence can prepare management for the future, identifying possible changes to the market, so that opportunities can be grabbed and response to possible challenges well prepared in advance.

Business relevance will always be higher for scenarios than trends. In a regional or multinational organisation, scenarios can help markets to be better prepared, by sharing information across borders and continents, rather than using geographic closeness to define regions.

Language rather than geography sets the boundaries in todays connected world, so innovation and new product roll-outs should follow them. Surprisingly, companies still favour launching based on market proximity; this is a big error.

Language rather than geography sets the boundaries in todays connected world, so innovation & new product roll-outs should follow them. Surprisingly, companies still favour launching based on market proximity; this is a big error. #NPD… Click To Tweet

 

#7. CE should be Market / Brand agnostic

By being market and brand agnostic, the Customer Excellence department is free to give advice and to share their true opinions, without fear of upsetting the business unit or regional head. Corporations today must get comfortable with cross-departmental team working and the creation of a Customer Excellence department is a great way to catalyse this change.

 

#8. CE should Integrate all Customer Information

Understanding and insight development from the information gathered by market research, sales, marketing, finance, supply chain, and all the other available sources within an organisation, can only come from total data and knowledge integration. Consumer Excellence can again provide the analytical expertise and the cross-category perspective to reap the full benefits for everyone.

Having a one-stop shop for a company’s customer and market information, knowledge, understanding and insights means that work is not replicated when requests come in from different departments. Additionally, multiple categories may be interested in similar target groups, which means that customer excellence can provide deeper insights to both groups without twice the work.

 

#9. CE should cover costs through better negotiation

This also applies to the purchasing of external information and reports. Few suppliers would ever tell a company that they have already purchased a report or database. They are happy to make that second or even multiple sales to different departments within an organisation. However, if all information requests are handled by one group, companies can certainly avoid this and also negotiate better deals for multiple purchases for reports that are relevant in several business units and which should be made available across the organisation.

This is a particularly valuable additional benefit for decentralised corporations, since there is generally little collaboration at the purchasing level. However, from my own personal experience, savings can even be found for centralised enterprises, through simply negotiating volume discounts.

 

#10. CE Ignites Customer Centricity & Business Growth

Last but not least, the customer benefits from a CE function, since all employees are thinking about the role they play in satisfying them. Becoming customer centric is a long journey, so the more people that are involved at the start, the more likely that cultural change will happen. This is because each employee reinforces the thinking of putting the customer at the heart  of the business.

To conclude, the creation of a Customer Excellence department sponsored at board level, can put the customer at the heart of the company, as well as of every department within it. The business will benefit, the customer will benefit and hopefully the employees too.

What have been your experiences with the creation of a Customer or Consumer Excellence Department? Please share your own stories here and add the other benefits you have found from your own experiences. 

For more about the processes of enhancing customer centricity or creating a Customer Excellence Department, please check out our website: https://www.c3centricity.com

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