May 2016 - c3centricity | c3centricity

+41 79 93 39 789 info@c3centricity.com

Say Goodbye to Marketing & Brand Building, Say Hello to Consumer Centricity

Marketing is an old profession. It’s been around for hundreds of years in one form or another. If you’d like to see more about its complete history, then I highly recommend this  Hubspot  infographic.

With the advent of digital marketing in the early 80’s, many companies began to take a serious look at their marketing. They realised that their primarily outbound strategy had to change. Consumers didn’t appreciate being interrupted in their daily lives. However, with the creation of inbound marketing, they still irritated consumers with spammy emails, popups and subtle cookies for following their every move.

Br and Building

Many large CPG companies such as P&G  and Nestle changed the name of their Marketing departments to Br and Builders, in the hope of adapting to this new world. But they failed because they continued to run their marketing in the same old way. With few exceptions, it’s still all about them  and their br ands  and not much about the consumer.

Luckily some other consumer goods companies realised that to satisfy the consumer they had to do things differently. They were the ones that moved to consumer centricity. Or to be exact they started on their journey towards putting the customer at the heart of their business. Customer centricity is not a destination because consumers are constantly changing and their satisfaction never lasts for long. The aim for satisfaction and delight will never end. (>>Consumers are constantly changing and their satisfaction never lasts for long. The aim for satisfaction and delight will never end. Click To Tweet<<)

I think we have taught our consumers far too well! They underst and a lot more about “marketing” than they used to. They underst and that companies have marketing plans and regular promotions, so they wait for their price offs. They realise that in today’s world, products have become more and more similar. Their format, colour or perfume might be different, but there are strong similarities in their performance.

That’s why consumers now have a portfolio of br ands from which they choose. They are far less likely to be loyal to only one br and than they used to be. They have come to expect constant innovation so they quickly adapt to the once novel idea and start searching for the next big improvement. According to Accenture’s “ Customer 2020: Are You Future-Ready or Reliving the Past?” almost a half of consumers believe that they are more likely to switch br ands today compared to just ten years ago.

Marketing skills
SOURCE: Korn Ferry CMO Pulse Report 2015

Customer Centricity

In response to these ever more savvy consumers, marketing has to change. In the  2015 Korn Ferry CMO Pulse Report, it is confirmed that new skills are now needed. The most sought-after skills today are analytical thinking and customer centricity. Marketing is now as much an art as it is a science. In order to take full advantage of the enormous availability of information about our customers, we can no longer rely on our creativity alone.

How to Know if you're Customer Centric

Companies which place the consumer at the heart of their business are easy to recognise. Their websites are filled with useful information, entertaining videos and games, and their contact page provides all possible forms of communication. Their advertising is consumer centric and emotional, with the consumer and not the br and as the hero. They involve their consumers in many aspects of their business. (see  "The exceptionally easy and profitable uses of co-creation" for more on this topic.)

If you're not sure how good your customer centricity is, just take a look at your own website, or why not complete the C3C Evaluator?

C3C Evaluator

Move Beyond Br and Building

Whether you are still doing marketing or have already moved to br and building, here are a few of the essential first steps that you need to urgently make to adopt a more modern approach:

  1. Place pictures of consumers everywhere, so people start to naturally think about them. This can be at the beginning and end of presentations, in your office reception, in the lifts or anywhere many employees spend time.
  2. Whenever a decision is taken, ask "What would our consumers think about the decision we have just taken?" (>>Tweet this<<) This will avoid such practices as hiding price increases by reducing pack content without telling the consumer. Or asking credit card details for the use of a "free" trial, in the hope that the consumer will forget and be automatically charged for a service they may not want.
  3. Review the language of your website. If there are more "we's" than "you's" then you know what to do(>> Tweet this<<) While you're online, check out your contact page for possible improvement opportunities, as detailed above.
  4. Take a look at your target consumer description or persona. When was it last updated? If you don't even have a written document clearly describing them, then use C³Centricity's 4W™ Template until you develop your own. (you can download it for free  here)
  5. Examine your advertising. Who is the hero? Consider developing concepts that are more customer centric, by making use of your underst anding of them and their emotional triggers.
  6. Spend time with your front-line staff and consumers. Make use of call centers, in-store promotions and merch andisers to talk to your customers, as well as to the employees who connect with them. They will almost certainly be able to tell you a lot more about your customers than you yourself know.
  7. Share your latest knowledge about your customers with the whole company. Help every employee to underst and the role they play in satisfying the customer. Make them fans of your customers and you will never have to worry about such questionable practices as those mentioned in #2.

These are your starter tasks for moving from marketing and br and building to a more customer centric approach. If you'd like more suggestions about moving to a new-age marketing approach, download a free sample of my book "Winning Customer Centricity". The fun drawings in this post come from the book!

 

 

The Exceptionally Easy & Profitable Uses of Customer Co-creation

One of my clients, who is following the 50 weekly actions for customer centric excellence described in Winning Customer Centricity, asked me for some further ideas on co-creation.

Since working more closely with customers is the best way to underst and, satisfy and delight them, I am impressed that she is taking co-creation even further. In fact, I realised that this is an area that many of you may be interested in learning more about, so I decided to share what I told her, but first …

What is Co-creation?

The term co-creation has been around for decades. However, it is only in the last ten years or so that we are seeing a growth in co-creation in so many different areas of marketing.

According to Wikipedia co-creation is “a management initiative, or form of economic strategy, that brings different parties together (for instance, a company and a group of customers), in order to jointly produce a mutually valued outcome.”

My M&MIndividualisation, which offers higher-priced items with a customer perceived higher-value, has been popular for years. It allows customers to design their own unique products to show off their personality. For instance, customers can personalise their M&M chocolates and design their own Nike running shoes. But these are not strictly co-creation since they are designed by one person for for one person. Co-creation is designed by many for the many. (>>Tweet this<<) 

After the success of such personalised offers, organisations understood that there is value in getting input from customers. They now include them not only in product enhancements, but also in developing their advertising and even in first-stage innovation.

The practice has been further intensified by the internet, which has enabled companies to reach out to customers across the globe, virtually for free. Social media, in particular, is a great source of customer underst anding, as well as for highlighting issues with current offers. This is why co-creation should include social media in some form, as I’ll share further on.

Who to work with?

Winning Customer Centricity BookAs I mention in my book, not all business managers feel comfortable exposing their new ideas and concepts to their customers. If this is the case in your organisation, then you are left with the only option of interviewing employees. This isn’t such a bad thing; after all, they too are customers, but you need to keep in mind their biasses. They probably know more about the br and than the average customer and are also likely to be more positive towards it. However, their passion for the company and its br ands is a valuable asset not to be neglected.

If your management allows you to work with customers, then you will want them to be vetted for different things by the recruitment agency:

  • They shouldn’t work for one of your competitors; nor should their close friends and family members.
  • They shouldn’t work for advertising, media or PR agencies, which could tip off your competitors.
  • They should be creative and curious, but not be one of the infamous “1%ers” (the ultra-creatives) that were popular when co-creation was first used.
  • They should be articulate and be able to describe their thoughts, ideas and problems succinctly.
  • They should be well-informed and knowledgeable, even opinionated if you want to introduce some challenging into the discussions.
  • Depending upon the task you want to share with them, they should be category and / or br and users – or not.

Some suppliers may propose psychographic analysis to hone their selection process. However, this is not essential if you obey the above rules and clearly identify the type of person with whom you would like to work.

Social media again provides a great way to identify and recruit those who are both knowledgeable and passionate about the category. Another source of customers, is from co-creating platforms that copy successful job sites, such as UpWork and Amazon’s Mechanical Turk.

 

Should you compensate customers?

Most co-creation programs compensate customers, at least some of them, for their time and even their ideas on occasions. I have found that customers are usually so happy to share their thoughts and be heard, that they don’t expect compensation other than the opportunity itself. I have often received requests from participants at the end of a project, asking to continue in the panel or online group, because they enjoyed it so much. Customers love to talk to companies about their products and services, so why not make it possible for them to do so in a safe and private environment?

Compensation is therefore not m andatory, but adding prizes and a competitive element to the discussion can encourage a greater level of participation. I give some examples of br ands that have done this further on.

 

When to involve customers?

There are many reasons you might want to get input from your customers beyond the more common anonymous market research. Here are some of the most often used occasions when you might want to include your customers:

  • Involve your customers in co-creationchoosing their favourite names, flavours or perfumes for a product
  • getting reactions to your marketing plans
  • sharing experiences and problems encountered with your category
  • reviewing product and communications’ concepts
  • watching pre-air advertising and choosing the ending, slogans or other details
  • asking for ideas on how to improve a product or service
  • running a competition to solve an issue the company would like to address
  • voting for their favourite new product or service idea
  • creating new flavour and aroma mixes from original ingredients
  • brainstorming with R&D on new product ideas
  • sharing opinions on promotional concepts or competitions.

 

Examples of co-creation

In Winning Customer Centricity, I mention a few companies who successfully use co-creation, such as Nespresso’s “Le Club” and P&G’s “Connect+Develop”. Since I wrote the book, co-creation has become much more widespread and there are many more great examples. Here are just a few to inspire you to invite your own customers to join your initiatives:

Heineken ideas brewery
Source: Heineken
  1. Heineken: Their crowdsourcing platform, called Heineken Ideas Brewery, launched in 2012, asks the public for suggestions, since they believe that innovative ideas can come from everywhere. The first challenge they set was for sustainable packaging and the best idea, the Heineken-o-Mat, was rewarded with a $10,000 prize.

 

 

Lego Ideas
Source: Lego

2.  Lego launched  Lego Ideas as a platform to enable their customers to create and share their ideas for new sets. Other users then voted and commented on these suggested new sets.

The highest-rated ones were often developed and launched by the Lego Group. The original creator of the idea was compensated with a small percentage of the net sales revenue.

 

3.  British Airways: Airlines make a lot of use of customer panels; after all they know all their passengers’ details, so recruitment is relatively easy. BA uses their FutureLab to elicit comments and reactions to their questions and concepts. 

Their panel is made up of a global community who discuss everything from prices, to seating, competitions to services. BA shares their plans and ideas and gets immediate feedback on what their passengers believe might work and what won’t. And all this within a few hours and mostly for free, apart from a few small monetary prizes for the most active or creative participants each month.

 

Coca-Cola Freestyle machine
Source: Coca-Cola

4.  Coca-Cola is one example of companies using co-creation for input to their innovation process. Their Freestyle machines is a fountain dispenser which offers over a hundred products, giving the customer the opportunity to mix their own flavour combination.

An additional mobile app allows them to then save it so they can get the same mix at any other Freestyle machine. Coca-Cola saves all the mixes in their consumer database, which can then be used to learn more about new flavour ideas and consumer preferences.

 

Purina Dear Kitten
Source: Purina

5. The final example comes from social media, where co-creation of content has become the norm. There are literally thous ands of companies using their customers and fans to share their thoughts, ideas, photos and videos on their websites.

Amongst the best is Nestle Purina who started by allowing pet owners to publish pictures of their animals. This then was followed and enhanced by Purina developing and sharing fun videos including Dear Kitten from their Friskies br and and Puppyhoodfrom Puppy Chow. We all know how popular pet videos are on the web, so it is not surprising that many of them went viral.

Making use of co-created content

Speaking of “virability“, there are recent examples of br ands that invite customer input, combined with a marketing promotion or a specific hashtag campaign. These are important for viralbility on such platforms as Youtube and Instagram which are primary sources for fashion and beauty br ands, because of the importance of image.

Chobani is heaven!
Source: Chobani

One br and that was an early adopter of this and and successfully used customer generated content to both improve image and increase sales is the Greek yoghurt company Chobani. It invited its loyal customers to submit photos and videos praising their yoghurt, which were then used on their website as well as in advertising. They generated a lot of excitement with the billboards in particular, as people love to see themselves in print. 

These are just a few of the best uses of customer co-creation that I remember, but I know there are many more. If you have other examples I would love it if you would share them below.

In conclusion, I hope I have inspired you to try co-creation and to include your customers in more of your internal plans and processes. It is not only fun, it also provides you with fresh thinking  and a deeper underst anding of how your customers’ needs and desires are changing. Makes you wonder why you haven’t done more co-creation before, no?

 

Winning Customer Centricity BookIf you would like to learn more about “Winning Customer Centricity” then I am offering my loyal readers – you! – a free download of the first five chapters. Just go HERE.

FREE DOWNLOAD “Secrets to Brand Building”

Everything You Need To Know To Improve Your Marketing & Brand Building

* indicates required