September 2016 - c3centricity | c3centricity

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Are You Still Using The Marketing 5Ps? Move To The Improved 7Qs.

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Marketing is a great profession and the marketing 5Ps the code by which we live. I’ve worked in or with marketing teams for almost my whole career. From the outside, others see marketers as those who come to work late and seem to party all night. They’re always watching TV or jetting off to exotic places to talk about advertising.

For people working in operations or finance, marketers just don’t seem to be doing a very serious job; they’re always having too much fun! I’m sure you’ve already heard such comments.

Well, as you yourself know, marketing IS fun, but it’s also a lot of hard work, often close to 24/7 on many occasions. So does all that hard work pay off? Not always in my opinion. And why? Because marketers don’t always ask the right questions!

If you work in marketing, you already know the 5Ps – people, place, product, price and promotion. However, the problem with them is that when you find an issue with one of them that needs attention, you know the “what” but not the “how”.

So I suggest you work with my 7Qs instead. Each question explains not only what to check, but why. And if you can’t immediately answer any of them, then perhaps you need to do a little more work and a little less partying!

 

Q1. Who are your customers?

Your marketing 5Ps are your sourced from customer understandingThe first “P” stands for people and often that is taken to be “Do you know to whom you are selling?” The answer is always yes and that’s accepted as sufficient.

Instead, ask yourself who your customers are. I don’t mean just their demographics. I mean who they really are; what, where and how they use or consume your brand. And especially the why of their attitudes and behaviours. If you can’t give all these details about your customers, then you’re in serious trouble.

See  “12 things you need to know about your target customers” for more details on defining your customer persona.

 

Q2. How are your customers changing?

Hopefully, you answered Q1. without any hesitation – you did, didn’t you? And it’s great that you know a lot about your customers, but people change.

Are you following how your customers are changing? Are you keeping up with them and their new opinion, needs and desires? Do you know the impact of the latest trends and technologies on your customers’ behaviours? Do you know how these changes may alter your market in five, ten or even twenty years from now?

There are countless examples of brands that have disappeared because they didn’t keep up with the changing needs of their customers:

  • Kodak who didn’t understand the impact of digital photography.
  • Borders bookstores who didn’t get into eBooks.
  • Motorola, once the leader in smartphones, who didn’t embrace new communications technology.
  • Sony who resisted MP3 and lost the portable music player market that they had led for years.
  • Blockbuster who survived the transition from VHS to DVD, but failed to adapt to consumers’ dem and for home delivery.

The easiest way to be ready for any future changes is to prepare for them, by developing future scenarios. (Tweet this<<) How many possible future customer changes have you already prepared for?

 

Q3. What does your brand stand for?

Brand extensions need to be complementary to the parent brand's 5P structureI don’t mean it’s marketing identity or slogan; I mean how your customers or your competitors’ customers would describe it, its image? Is it strong and consistent? Does it align precisely with its identity or the positioning you want today? Do you follow the developments in its image regularly? Do you adapt your advertising and promotions to strengthen its desired image and eliminate negative changes before they impact your brand’s image? Is it authenticated by your customers’ experiences with your brand? It should be a direct reflection of your brand’s (internal) identity and promise. (Tweet this<<)

You should be able to describe your brand in one or at most a couple of sentences, using the words and ideas you want it to stand for, like these:

  • McDonalds offers “quick, convenient, family-oriented  and fun, casual dining.”
  • Bic disposable pens, lighters and razors offer “high-quality products at affordable prices, convenient to purchase and convenient to use.”
  • Dollar Shave Club: “Shave and grooming made simple.”

What you notice about these three examples is that they clearly define the customer’s benefit and what the brand is promising to provide. There is a synergy between what the internal image of the brand is and what the customers would say about it. When that is achieved you have a strong brand that your customers relate to and to which they are more likely to remain loyal.

 

Q4. How are sales and distribution?

I don’t mean just the totals. I mean the local specificities. The regional differences and anomalies. Do you know why they occur? Do these differences result from cultural differences, alternative traditions or usage, historical reasons or just distributor practices? Even if you work in marketing and not sales, understanding weekly, monthly and annual trends all mean increased understanding of your customers and their differences.

If you don’t know why your brand is doing better in some regions than others, then you’re probably missing opportunities for growth. (Tweet this<<) Always play to your strengths and correct your weaknesses as soon as they are identified.

 

Q5. Do you know what your brand is worth?

I don’t mean how much it costs to manufacture or to distribute. I mean how it is valued by the end user. How does your brand’s value compare to its current price? Incorrect pricing could mean that you are leaving money on the table!

If you are priced lower than your customers’ perceived value of it, you could be asking for more. If you are priced above the perceived value of your potential customers’, you are stopping many new customers from buying into your offer, as they don’t think you’re worth it.

Either way, you could be earning more and possibly selling more too. (Tweet this<<)

 

Q6. Are you using the right channels for your communications?

The marketing 5Ps include how to communicate consistently with customersMany marketing plans are still just a rehash of last year’s, especially when it comes to advertising and promotions. With today’s huge array of media opportunities, both on and offline, it is important to choose the most appropriate ones for your customers.

If you answered Q1. completely then you will know which ones they are currently using most often, and if you are also able to answer Q2. you’ll know how these are changing or likely to change in the future.

Wasting money with outdated media plans and channels no longer used by your customers is still one of the biggest challenges of marketing. Make sure it’s not yours.

For a fun piece on the topic, check out “ 10 Signs Your CEO Has an Outdated View of Marketing‘ on Hubspot.

 

Q7. Is your messaging consistent and complementary?

Answering Q3. means that you know what you want to stand for and the image you want to portray. Image metrics will tell you which of them need to be boosted, depending upon the desired changes.

Do you want to attract new customers, support current customers, or develop your image in a certain direction? Appropriate analysis of your image data will give you all the information you need to adapt your messaging and strengthen the positioning you have chosen for it.

For more details on image analysis check out the section in Denyse’s latest book “ Winning Customer Centricity: Putting Customers at the Heart of Your Business – One Day at a Time.” It’s been called “A must read for today’s and tomorrow’s marketeers by none other than Paul Pohlman, Unilever’s CEO!

So there you have them, the seven questions that I believe will bring you greater results than just using the marketing 5Ps. What do you think? Next time you review your brand’s performance, why not give the 7Qs a try? They will provide you with a clearer picture of your brand’s current and future development opportunities, and more importantly, will identify the actions you need to take to progress its growth.

If I’ve missed any important points that you check regularly for your own brand, please share your thoughts below by adding a comment. I’d love to hear your own ideas and success stories.

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Is it time to review your own 5Ps?

Let C3Centricity support you with advisory sessions and 1-Day Catalyst training courses. Find out more and download our summary brochures HERE.

 

Forgotten Facts & Fantasies of Customer Delight

If you follow me on social media, you’ll know that I’ve just returned from a three-week visit to Peru. I had the privilege of being the keynote speaker at IIEX-Latam in Lima and decided to take time off to visit the country after the conference. How glad I was that I took that decision, because I discovered that Peruvians are experts in customer delight!

PeruPeru is an understated yet remarkable country that deserves a more amazing reputation than I believe it has today. While its image is dominated by Machu Picchu, this wonderful l and has so much more to offer visitors. From the sprawling cities of Lima and Arequipa to the rugged desolation of the high altitude desert plains and the humid cloud forests, I quickly fell in love with the country and its people.

Of course, my mind is never far from work and I realised that I was so enamoured by this country because it’s people have customer centricity down to a fine art. They are happiest when they are delighting their visitors. Let me share a few of the surprising experiences I had on my trip –  I’m not referring to the amazing l andscapes – and which I hope will inspire your own customer centricity!

 

You’re welcome

Nowhere is this truer than in Peru. The North Americans may be quicker to wish you a good day, or to ask how your trip was, but they don’t really expect nor hear your answer.

It is the opposite in Peru. They go out of their way to ensure you are happy, even when you can’t speak their language.

A warm welcome is something you show your customers, consumers, and clients. (>>Tweet this<<) It is not a simple phrase repeated without depth or substance. It is caring about how you can deliver customer delight. So how do you show your customers that they are truly welcome?

If you have a digital presence and have an opt-in form, then this is by sending back a welcome email immediately, introducing yourself and thanking your customer for signing up. You’d by amazed in this day of simplified automation, that not all websites have this welcome programmed within their sales funnel!

GoldfishAccording to research conducted last year by Microsoft human beings have an 8-second attention span these days. And yes that’s shorter than a goldfish! But more than 70% of consumers expect a welcome email when they subscribe to your offer, according to BlueHornet. So why disappoint a third of your customers before you’ve even started your relationship with them, by not thanking them? Another reason to respond rapidly is that real-time welcome emails see more than 10x the transaction rates and revenue per email over batched welcome mailings according to Experian.

Another way of welcoming your customers’ business is by providing additional value. We all know how Amazon remain the first and best at this with their recommendation engine. But there are many other organisations working with recommender systems, including Netflix, social media platforms Facebook, Twitter and LinkedIn and retail giant Ikea

Do you have something similar to offer your customers? Whether it’s an additional free offer, or a paid product or service, your customers are connected, so make use of their engagement to provide even greater value. And speaking of value:

 

We value your business

The evidence of just how much Peruvians appreciate their visitors again comes down to the warmth of their welcome. But they go even further; I felt that I was treated with real respect. Nothing was ever too much trouble and apologies abounded for even the slightest mishap. The hotel front desk couldn’t immediately answer my question? Profuse apologies, not a canned “sorry to have kept you waiting.” The restaurant waiter had to make me wait thirty seconds to provide something? Profuse apologies and perhaps even a small extra such as a drink or special treat.

QueueOn my first day, I spent the morning getting a local SIM card and changing money. Now I agree that back home these two tasks would have taken me about thirty minutes, but I wouldn’t have enjoyed them nearly as much. They would have been chores to accomplish as quickly as possible. I would have tolerated the queues and been irritated by the time lost waiting to be served.

Not in Peru. In the bank, I was treated to a comfortable sofa, coffee and a TV channel to watch, as my name moved quickly up the waiting list on the large central screen. In the phone company’s retail outlet, I was shown to the front of the line as a “valued new customer.” And then, of course, I got the traditional apology for being kept waiting. None of the tiring, st and-up queues we find in most cities.

How do you show your customers that you value their business? (>>Tweet this<<) I hope not merely by saying that you do – if so, reread the previous point again! Don’t you get irritated when calling a company to hear those automated “your call is important to us” messages before being put on hold for ten, twenty, thirty or more minutes? So why would you think that your customers accept such “lies”? You’re certainly not proving that they are important to you. Find ways to make their wait more comfortable, if not enjoyable. Read ” Changing perception: Simple ways to improve your customers’ waiting experience” on Business.com for some great suggestions from Sarah Pike.

 

We want you to be delighted

There is still a lot of talk about customer delight and satisfaction, but there really is a huge difference. Satisfaction is meeting the minimum st andard of service. Delight happens when people are both satisfied and surprised by the level of service or quality you provide. If you can’t provide an alternative solution such as automatic call back, chat or email response, then at least give the caller an idea of how much time they need to wait. It would be even better if you could suggest a better time for them to call back when lines would be less busy if they prefer, rather than making them merely wait. Treat your customers as you would like to be treated is not a hollow rule for businesses to think about customer delight and service. (>>Tweet this<<)

In Peru, after every interaction with someone, I was always asked if there was anything else I needed. Again not the automatic response upon the completion of a job, but a real desire to provide more than just satisfactory service.

So what are you offering your customers? The lowest acceptable service level at the highest price possible? Do you even know what would delight your customers? When did you last check how their dem ands have changed? We are all excited by novelty, but it makes customer delight difficult to maintain if we don’t have our finger on the pulse of the market. As one of the young digital marketers I follow says “you can never go wrong by offering true value.” (I’m speaking about Neil Patel of course) (>>Tweet this<<) So don’t target anything less than surprise and delight; satisfaction is no longer enough. (See ” The new challenge of marketing: Customer satisfaction is not enough!” for more on this topic)

 

Enjoy the ride, not just the destination

Belmond Group LogoI am sitting on the Andean Explorer as I write the first draft of this post. It is part of what used to be known as the Orient Express Group, which recently changed its name to the Belmond Group because it offers more than just train services. I mention this group because they have customer delight in their blood. You could say it’s old-fashioned in today’s world and I, unfortunately, would agree.

According to Wikipedia, “slow” lifestyles first emerged in the slow food movement. It emerged in Italy in the ’80s and ’90s  as a reaction to fast food, emphasizing more “traditional” food production processes. Too often today we race from one action or experience to another. Think about all the photos you take which mean you never really see the places you visit until you get home and review the slides. What a waste!

I recently experienced just such a regret myself after a flight over the Nazca Lines. I have a few blurry images taken through the scratched windows of the small plane on which I flew. A fellow traveller told me that his pilot told him not to take any photos but to admire the view. I so wish I had done that. What I had expected to be the highlight of my whole trip, turned out to be just an uncomfortable scramble to see all the figures as the plane banked steeply, first in one direction and then the other. The photos on Internet are far better than any I could have taken!

This train ride is another example of luxuriating in a “slow” experience. You could take the luxury coach service from Puno to Cusco and arrive four hours earlier. But you would miss the experience I am having. I actually don’t want the ride to end! Do your customers feel the same about your product or service?

 

We want you to feel comfortable

Cruz del surOne of the many surprises in Peru was their transport system. They rely primarily on coach services between the major cities, but they are unlike anything I’ve seen anywhere else around the world.

The value for money is outst anding. Your luggage is taken from you when you arrive, similar to airport check-in; no hauling your bags on and off the train or coach. Meal service is a three-star affair, not the snacks that most airlines offer today. Cozy blankets and pillows are provided, together with headphones and a personal entertainment system. And the seats, oh the seats! They would put every airline business class to shame! They recline to a comfortable sleeping position with plenty of space for personal belongings.

Starbucks LogoSo how do you make your own customers feel more comfortable? Today’s customers will pay for experience, not for commodities. Which are you offering? With the similarities of products and services today, customers remember how you make them feel, far less than the price they paid. This is why we happily pay five dollars for a cup of coffee at Starbucks or five to ten times the economy price to fly Business or First. Improve your customers’ experience and they will happily pay more. (>>and%20they%20will%20happily%20pay%20more%20[tweetlink]%20%23CEX%20%23Customer” target=”_blank” rel=”nofollow noopener”>Tweet this<<) According to Oracle, 86% of customers will pay more for a better customer experience, but 82% of customers have left a company because of a bad customer service experience. These are HUGE numbers to be ignored at your peril! 

 

We know we can do better

Almost every tour I went on, every guide I had to show me around and every hotel or restaurant I went to, asked me to complete a short survey if I could spare the time. And when I say short I mean short. They rarely if ever went over one page. Just a few, essential questions and a request to comment on what they could have done better to make my visit even more enjoyable.

How many of your own customer satisfaction surveys ask only the essential, actionable questions? Even if you collect answers, do you make regular use of their analysis to improve your customers’ experience? Every business could benefit from following what their customers think of them and I don’t mean by simply tracking your NPS! (Net promoter score) Apart from its now questioned validity, are you even sure that this metric is relevant to your industry? If you’ve never compared your results to sales trends, do so; you are likely in for a shock!

Of course, not everything is perfect in Peru. There’s a lot of rubbish along the side of the roads in the countryside. But there are also a lot of recycling bins everywhere. They are trying hard to educate the locals that the country depends on tourism and as such they must value and protect their own country, as much as the visitors do.

My trip in Peru was truly a “once in a lifetime” experience. Hopefully, the ideas from my experiences have inspired you to make some changes in how you treat your own customers, whatever industry you are in. 

I’d love to hear about any “ah-ha” moments you had while reading this post. If you have further thoughts on how we could all increase customer delight in our businesses then please share them with the thous ands of readers here. Thanks a lot.

And finally, if you know you could be doing better in terms of customer delight, take a look at our and-evaluation” target=”_blank” rel=”noopener”>1-Day Catalyst training sessions and contact us for a quick chat about how we might support you.

 

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