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How to Measure Customer Centricity the Right Way

As a customer first strategist (hopefully just like you), I spend a lot of my time searching how to better measure customer centricity for my clients. I also do a lot of analyses on what customers really want today. I’m always trying to understand exactly the solutions customers need, desire and dream of having.

My regular searches include customer service, customer satisfaction, customer care and similar topic areas. Google is my best friend! However, I recently came across some surprising facts, which prompted this post. I believe they show a serious problem in the business of looking after our customers today. Read the article and then let me know whether or not you agree with my analysis.

 

CUSTOMER CENTRICITY

Wikipedia, another online friend of mine, doesn’t have a definition of customer centricity! If you look up the term, you get redirected to customer satisfaction!  Try it for yourself and see.

My other go-to source for definitions is  businessdictionary.com which defines customer centric as:

“Creating a positive consumer experience at the point of sale and post-sale.”

It then goes on to say

“A customer-centric approach can add value to a company by enabling it to differentiate itself from competitors who do not offer the same experience.”

Now although I find the definition limited, since it refers only to sales and post-sale activities, I do like the fact that it mentions three important elements of customer centricity:

  • a positive customer experience
  • adds value to a company
  • enables differentiation

 

This clearly identifies three huge benefits of becoming (more) customer centric:

  1. A positive customer experience has been shown to increase both loyalty and advocacy. (>>Tweet this<<) As we all know, it costs five times more to acquire a new customer, as it does to keep a current one. Therefore loyalty is an incredibly valuable benefit for a brand.
  2. Adding value to a company also increases the ROI of its marketing investments. This is something that marketing is challenged to prove today, with the risk of seeing their budgets cut. Luckily, what’s good for the customer is good for business. You can see many more facts and statistics about this in Forrester’s report “The Business Impact of Customer Experience.”
  3. The third benefit is just as important to the growth of a business. Enabling differentiation in this complex world is invaluable in standing out from the competition. (>>Tweet this<<) In so many industries product performance and services are almost identical, so how can you stand out? By your customer care, that’s how and knowing what your customers really want . It has been shown that customers are willing to pay more for excellent customer service. You can read a summary of this and more in the summary report of the American Express research.

 

I would also add that what customers really want today is a seamless experience from pre- to post- purchase, as well as from on to offline. That’s how you deliver satisfaction and build loyalty.

Find out how good you are at customer centricity. Take the quiz now.

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THE IMPORTANCE OF CUSTOMER SATISFACTION AND UNDERSTANDING

There is no denying that customer centricity is important. However some companies are (too?) slow to adopt best practices in this area, which concerns me for a number of reasons:

  1. It is now proven that it is important for the business, so what is stopping companies from quickly adopting a more customer centric approach? The longer they wait, the more they risk being beaten by a more customer friendly competitor. It’s no longer (just) about product performance.
  2. Customers are complaining – a lot – about the way they are being treated. Why are companies not accepting these criticisms as the gifts they are? Acting promptly before the issue becomes a social media viral discussion is essential today.
  3. Customer service is confused with customer satisfaction. Companies are happy when their customers say they are satisfied, but they should be looking not just to satisfy them but to delight them too!

 

As mentioned before, the research that prompted this post was a google keyword investigation of terms related to customers. Having seen the strong positive trend for the word customer, I then wanted to understand what it was about customers that was of interest. I found that both customer service and customer care showed almost identical positive trends.

However, when I looked at customer satisfaction and customer understanding the trends were flat and worse, minimal. (You can see the trend graph below with service in green, care in blue, satisfaction in red and understanding in yellow)

Google trends on measuring customer centricity
Click to see original

 

These trends suggest to me that companies search how to improve their customer service and care, but not about how to understand their customers or increase their satisfaction!

How can this be? Surely an interest in customer service should come from an increased understanding of how to deliver customer satisfaction? Apparently not.

And this is when I realised that perhaps businesses are more interested in the process than the real benefit of customer centricity. That is a serious flaw in their thinking in my opinion. What do you think?

To confirm my hypothesis, I looked into customer satisfaction levels and their trends. After all, many more companies are interested in customer service these days. So you would think it should have a positive impact on customer satisfaction.

 

 wAAACwAAAAAAQABAEACAkQBADs According to the latest report from  The Institute of Customer Service on customer satisfaction across Europe, retail, insurance and banking are the three best performing industries.

This was a surprise to me because they used to be the most heavily criticised. However this suggests that they have taken action, albeit because they had little choice, but most other industries continue to ignore what their customers really want. You can see the Infographic overview above; click on it to see the full-sized original.

I then went back to Google to find ways which were suggested for increasing customer satisfaction. I found more than  two million articles on how to do it, but very few on the results. Again, extremely worrying.

According to the US ACSI (American Customer Satisfaction Index) August 2019 report, customer satisfaction is once again on the decline in the USA.

measure customer centricity
National ACSI Scores, 1994 to Q2 2019 (0-100 Scale) (PRNewsFoto/American Customer Satisfaction)

As mentioned in their press release accompanying the Q2 2019 results "With few exceptions, the rate of growth in consumer spending – which accounts for almost 70% of GDP – has declined since 2016. ACSI is still below its high watermark from 2017, yet GDP growth has, by and large, increased over the same time periods."

“This is untenable in the long run,” said Claes Fornell, ACSI Founder and Chairman. “It’s also untenable for customer satisfaction to weaken and for consumer spending to strengthen in the long run. But that’s what happened in the second quarter of 2019.”

The UK is showing a similar negative trend. The UKCSI is currently 77.1 (out of 100), 0.8 points lower than a year ago. This is the fourth consecutive, though small, drop in customer satisfaction since July 2017, when the index score was 78.2. This has no doubt also been negatively impacted by the Brexit vote and ongoing struggle to negotiate terms with the EU.

UK Customer Satisfaction Index 2019

 

THE KEY TAKEAWAYS

So what does a business need to do to deliver what their customers really want today and increase their level of satisfaction? There are seven facts that become apparent from this analysis:

  1. Businesses should always provide a positive customer experience and do whatever it takes to satisfy, but ideally delight.
  2. Companies need to go beyond the mere process of customer centricity, to truly put their customers at the heart of the organisation.
  3. Customer centricity adds demonstrated value to a company; it should be a no-brainer.
  4. Customer centric improvements are happening too slowly in most industries, especially when customers are becoming increasingly demanding.
  5. Providing customer service doesn’t guarantee customer satisfaction.
  6. A positive customer experience increases loyalty and advocacy.
  7. Excellent customer service enables differentiation and even higher prices.

 

In summary, people want businesses to listen and understand them. When a customer takes the time to contact a company because they are unhappy, they expect a satisfactory outcome as a minimum. Those organisations who go beyond, to deliver delight, will see their reputation improve, as well as an increase in their customers’ loyalty and advocacy. 

 

Customers also want companies to be open and transparent. They want answers to their questions and criticisms. They have a right to know the source of ingredients, the ingredients themselves, their country of origin, the charities the company supports, or the organisation’s policies on waste, water and sustainability. What customers really want today is to have their questions answered (almost) immediately, especially on social media. They expect things that go wrong to be put right – quickly, with an equally rapid explanation and apology.

 

So how are you doing? Are you living up to your customers’ expectations? Are you delivering what your customers really want? How have you made progress in this area in the past year or so? Please share your success stories below. 

 

You can no longer wait! You’re getting left behind by your competitors who are taking action today! If you need help in catalysing your organisation in customer centricity and aligning your business to what your customers really want, C3Centricity provides 1-Day training on many relevant topics. See more and download the summary brochures HERE.

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The 6 Best Ways to Show you Respect your Customers

More than one year after the introduction of GDPR in Europe and the CCPA in California, I wondered what has changed. And more importantly, I got to thinking about customer privacy and how to build a mutually beneficial relationship whilst also respecting it.

Customers don’t want to be automatically segmented and followed as they go about the web, viewing different sites. A recent article on Business2Community by Owen Ray said that

The tracking cookie is crumbling. Smart cookie-blocking technology led by Apple’s Intelligent Tracking Prevention (ITP) and Firefox’s Enhanced Tracking Protection (ETP) now block third-party cookies by default, and even Google’s Chrome will soon get controls that let consumers block cookies.”

If you want to understand more on the topic of cookies I highly recommend this two-part article.

Companies who are truly customer centric know that it is important to build a mutually beneficial relationship where there is something for both parties in exchanging information and services. Too many businesses ask too much of their customers, with little if anything in return. I believe this is one of the major reasons that customers today are becoming sensitive to what and to whom they give any information about their interests, habits, needs and wishes.

I, therefore, thought it was useful to review the major points to keep in mind, when a business wants to collect information about its customers in order to offer products and services that better meet their wants and desires.

 

1. Ask Permission to Gather Information

This should be a no-brainer and yet I still find myself on lists to which I didn’t subscribe! You too?

Whether you are connecting with your customers by mail, phone, email or the web, you need to first request permission to ask any questions and to gather the information you are looking for. Not only should you ask for consent; if you are not in direct personal contact, but connecting via email or the web, you should also double-check that permission. You have to ensure that the agreement has been given by your customer and that they are still ready to provide the information.

Being attentive to privacy when starting to build a relationship is vital and shows you respect your customers. It also means asking them to confirm their consent not once, but twice. Double opt-in as it is known, ensures that your customer is correctly identified and that they have indeed themselves agreed to provide or receive information, or to be put on your mailing list.

 

2. There Must be Mutual Benefit

When your customer has agreed to provide information you need to thank them in return immediately. This can be as simple as offering coupons for your products, some valuable information not easily available elsewhere, a free guide or e-book on a relevant topic, or special privileges such as club membership or express shipping. Something that shows them that they were right to agree and that you value their information.

Another thing to keep in mind is not to overwhelm them by asking everything in one go. Since your objective is to build a long-term relationship with them, you can complete the information you require through several contacts with the same customer.

This also has the added advantage of keeping the conversation more frequent than it might otherwise have been. Ask just enough to be able to identify your priority metrics and then refine your understanding of them as you gather more information.

Your objective should be to build a long-term relationship with your customers, so don't gather more information than you can immediately use. #CEX #CRM #CustomerService #CustomerSatisfaction Click To Tweet

 

3. Make them Feel Special

More and more CPG companies and brands now offer a loyalty program, especially to their higher-value consumers. These provide more targeted privileges and even give the opportunity to preview new communications or product concepts. In general customers love to give feedback and it has the benefit of building a closer tie to the brand as they feel ownership of those launched.

This is probably one of the more intimate and bigger win-win relationships that can be developed with your customer. But it does take a dedicated team within the company to manage such a club, as these customers are naturally the most demanding for services and constant information updates. So only set one up when you know you can satisfy their needs, as otherwise they can feel frustrated when they perceive they are not getting the attention they think they deserve.

Over the past couple of years, we have started to see new types of member offers. Sephora launched a members-only social platform, which encourages shoppers to share beauty tips and advice, and to comment about any new products bought, not just those from their stores.

Nike has taken things to the extreme by opening an entire members-only store concept, Nike Live, in Los Angeles.

Both of these provide exceptional recognition to their members, making them feel a part of an exclusive program, which is exactly what they are!

 

4. Keep the Relationship Fresh

Once you start building the relationship with your customers, you must continue to interest them by offering news, information, photos, videos or articles of interest. This can be quite a strain on internal resources, so you may want to (also) consider including user generated content (UGC) on your website.

Not only does this ensure continuously updated content, but also involves the customer in what is shown, so that it remains relevant and of interest to them. People love to post and comment, so include message boards, tip sharing platforms or photo albums, whatever is relevant to your targeted customers.

Beauty, fashion and petcare brands were amongst the first to make use of UGC, as they are in very visual industries. Who doesn’t want to share a photo of themselves when they are looking especially beautiful, or show how cute their cat or dog is?

One great example comes from L’Oreal. Their DermaBlendPro brand encouraged users to share photos or videos of how the brand had transformed their look, by hiding disfiguration or tattoos. They clearly understood that happy customers make the best brand ambassadors, and this was clearly proven by the thousands of entries and immense buzz the brand received on social media platforms such as Pinterest and Instagram.

 

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5. Ask their Advice - Frequently

For your customers to appreciate how much you value them and their business, involve them in it, by asking for feedback on how you are doing. If you have new ideas or plans, share details with them or enable them to vote for new flavors, concepts or advertising ideas.

You can also enable them to preview the ads or products before everyone else, but do make sure you provide them with some great information about it too, so that they can share it with their friends and family members. This will make them feel like the special and valued customer they are, and also help you spread the word - for free!

 

6. Always Offer a Simple Way Out

Once you have made the connection with your customers, recognize that they might change their minds at any time and want to unsubscribe from your club or mailing list. Make this as quick, simple and pain free as possible. This shows respect for your customer and their time, and also enables them to leave with a positive opinion of you and the brand. You never know, they might change their minds and stay after all, or come back again in the near future.

From making the unsubscribe link in tiny font to pale and almost illegible, to using button colours to mislead, many brands think that this will stop people from unsubscribing. It may, but it is more likely just to irritate them and label your communications as spam.

Even large companies get this wrong. Apple may provide full details of all the different ways to connect on their contact page, but it is laid out in an overwhelming block of text that is so off putting I doubt anyone hunts to find the information they need.

Apple shows how not to respect your customers

Another example used by Swiss airlines and their parent company Lufthansa almost had me agreeing to give all my information, not just the necessary data to make my experience more comfortable. Their coloured button draws the eye and without reading you could end up making the same mistake I almost did.

No way to respect your customers

With so much choice available to customers today, it is our responsibility to build an engaging and respectful relationship with them. If there is no trust, there may soon be no sales!

What other ways do you show respect for your customers? Please share your best examples below. Of course, if you have come across a bad example that frustrated that, then please share it too. Let's name and shame!

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Five Rules of Customer Observation for Greater Success

One of the best ways to a deeper understanding of your customers is to watch and listen to them whenever you can. Customer observation is a powerful, but unfortunately too often an under-utilised tool of marketers.

It is, therefore, understandable that so many companies run to conduct market research, usually a qualitative study, as a first step to improved customer understanding. They then (hopefully) invite relevant employees from marketing, sales, packaging, communications or R&D to watch the interviews or group discussions. However, this intense but short observation is likely to do more harm than good. Let me explain.

Have you ever gone to watch a focus group only to discover that the research confirms your hypotheses? You are then irritated that you “wasted” money on the project aren’t you? Well, this may actually be as a result of your very own selective listening and interpretation. You watched and listened only to the topics that interested you. You were looking for confirmation of your hypothesis. There was so much more you could have understood if only you knew how to listen.

True understanding comes from regular interaction with your customers, not just from an infrequent observation or two. Here are some ideas on how to do this more effectively.

 

Make customer observation everyone’s job

There are many, many opportunities for every employee in a company to come into contact with the customer. In a customer-centric organisation, everyone has annual objectives which include connecting with customers on a regular basis. This could be by listening to calls at the care centre, reading blogs and message boards, or participating in / watching promotions, demonstrations, sampling or market research.

Some organisations also make a habit of getting their employees to watch and listen to their customers in direct observation or connection sessions. However, this needs to be managed carefully in order to avoid people jumping too quickly to incorrect conclusions, as explained below.

If you’d like to run more successful connection sessions in your own organisation, I can help.  Please contact me for more on our 1-Day training sessions.

 

Customer observation is not as easy as it looks!

There is a very well-known example of the challenge of observation, in a video showing two teams of young people passing a couple of balls around. If you haven’t seen it you can check out the  Awareness Test  and try it for yourself.

In the exercise, people are asked to count the number of passes made by the team in white, so that is what the observer will concentrate on. In the background a man dressed as a bear, moon-walks his way across the screen, but most people are oblivious to the fact. They are so busy looking for the answer to the question, that they miss this significant event in the short video.

Exactly the same can happen when people watch customers. They are so concentrated on finding the answer to their question, or worse the substantiation of their own beliefs, that they miss a lot of what is actually going on.

Marketers observing customers all too often miss a lot of what is happening because they are concentrated on finding the answer to their question, or worse the substantiation of their own beliefs. #Marketing #Observation Click To Tweet

If they were to actually listen objectively, they might hear something new. And this might lead them to a significant breakthrough in customer understanding.

For this reason, it is essential to run a careful briefing session before every observation exercise. This way people go into it with their eyes and brains fully open. Your Insight team can manage this in most cases, but to summarise what needs to be covered, I have listed below the five rules of observation.

 

The five rules of customer observation

1. ORDINARY: Look for the ordinary not the extraordinary, but do note the things that surprise. These can challenge our preconceptions and help us to keep an open mind. Identify also the details of the ordinary event, things that were never noticed or thought about before.

You may see people finding ways to get around a problem or pain point they have. These may offer opportunities to increase satisfaction, either by resolving them or by developing a new product or service.

When observing your customers, you may see people finding ways to get around a problem or pain point they have. These may offer new opportunities to increase satisfaction. #marketing #brand #Observation Click To Tweet

2. ATTENTIVE: Be careful to record only what you see and hear. Don’t start analysing what you think is going on or you will certainly miss something.

If you are running observation sessions yourself, it is important to define roles for every company participant.

If you are running observation sessions yourself, it is important to define roles for every colleague who is participating. #brand #Marketing #observation Click To Tweet

One person should lead the session, one could take notes and one can actively observe and perhaps take pictures. With these different roles covered, the discussion after the event will be much richer and more complete.

3. ACCURATE & OBJECTIVE: This is the reason why you need to remain attentive, so you get an accurate record of what is happening. Keep notes of what your see, when, where, and how people behave.

If you have direct contact with customers, leave your own preconceptions outside and never judge what is going on.

If you have direct contact with customers, leave your own preconceptions outside and never judge what is going on. #CEX #CRM #CustomerFirst #CustomerCentricity Click To Tweet

It is also important not to react openly to what you see or hear. Pay particular attention to your body language. Keep asking yourself (at least at first) why? Even if something appears obvious, the reason may not be what you think it is. So keep asking this vital question.

This form of iterative investigating is often referred to as the Five Whys“. The technique involves asking the question a minimum of five times to ensure you cover every angle.

4. TIMING: Observe and understand what is going on before and after the event, as well as during the event you are observing itself. The event needs to be put into the context of time and place within a person’s lifestyle and habits. This is the only way to understand its relevance.

Also, be patient as people often change behaviour when being watched, at least to start with. Give them a chance to relax and feel comfortable with being observed. Insight colleagues will certainly have mentioned at some point that in qualitative projects, the best comments come out at the end. Participants think the recording is finished and so relax and completely open up!

In qualitative projects, the best comments come out at the end. Participants think the recording is finished and so relax and completely open up! A gold mine! #CEX #CustomerFirst Click To Tweet

5. DEBRIEF & ANALYSIS: Observation is most valuable if it is completed by an immediate debriefing session. Observers can together share, ask questions and start to analyse what they have seen and heard.

This is important if several groups have been following similar events such as shopping, leisure-time activities or food preparation, but with different respondents.

Of course, the immediate debrief does not preclude a more in-depth exchange and analysis the next day. It is amazing what additional understanding comes from “sleeping on it.”

These five points should ensure that everyone enjoys participating in these customer connection sessions. Both you and your customers will benefit from the experience and a maximum number of ideas and learnings will be gathered.

One last point for International organisations; be aware of cultural differences. Explore and understand the culture (>>Tweet this<<) where the observations are being made, especially if you are not a local. What is appropriate in one culture may be offensive or irrelevant in another.

In international work, be aware of cultural differences. Explore and understand the culture where the observations are being made, especially if you are not a local. #CEX #CustomerFirst #CustomerCentricity Click To Tweet

Checking things out with the locals before going into the field can save a lot of embarrassment – or worse! It is also useful to have local members help in the analysis of what was seen and heard, so that the correct interpretation is made.

If you have run observation or connection sessions and have learned something additional, please share your experiences. I answer all notes and questions personally, usually within a few hours. 

For more ideas on getting closer to your customer, please check out our website: https://www.c3centricity.com/. If you would like support in setting up connection sessions with your own customers I would love to help you get the most out of them. Just contact me contact me here.

This post uses images from Denyse’s book “ Winning Customer Centricity: Putting Customers at the Heart of Business – One Day at a Time.

This post has been regularly updated and expanded since it was first published on C3Centricity. It remains one of our most popular posts years later.

The Secrets to Growth. How to Get New Customers

This shorter than usual post was inspired by a great question on Quora about how to get new clients. Although my original answer was for a web design company, most of my ideas are relevant whatever industry or profession you are in. I therefore wanted to share my answers to the question in the hope of being of help to businesses large or small.

First let me say that if you’re struggling to grow, then you’re not alone! I imagine that this won’t make you feel much better. But please remember that business, especially entrepreneurship and freelancing, is for those who are strong of mind and spirit. There are going to be days, weeks or maybe even months of highs and lows. However, these shouldn’t make you question why you do what you do. For me, as a longtime entrepreneur, it’s the freedom that more than makes up for a day or two without a new client signing me up. And if you work in the corporate world, then it is the chance to impact the lives of thousands or millions of people for the better.

Wherever you work, one thing we all have in common is the need and desire to grow the business and get new customers and clients.

A few ideas for you to think about and above all to action!

Whatever ideas, tips, suggestions you may read or hear about, it is only in the action that you will make a difference. This article is no different. So when you’ve finished reading the post, stop reviewing your emails or surfing the web, and start planning your actions. We all go looking for answers, but only a few of us act on them when we find something useful. Be the exception and beat the competition!

As an aside, this is why my book “Winning Customer Centricity: Putting Customers at the Heart of Your Business – One Day at a Time” (includes link to download some sample chapters) is in a radically different format from every other business book out there. It has 50 chapters, but each one is only two pages long! Two pages of objectives, actions, examples and ideas, as well as an inspiring quote and a fun cartoon. It finally makes learning enjoyable again. Isn’t that what we all want? Now back to the answers.

1. Who were your Past Customers?

Let’s start with where you are today, or were yesterday. What were your past customers’ similarities? Go out and find more like them, using the same method they used to find you.

Was it word of mouth? Then ask for recommendations from them and your closest network. Was it through LinkedIn? Then make some new connections that are similar to them. Reach out to a segment of those who are most like your past customers and you think may have similar needs.

Any of these ideas will bring you more new potential customers than most advertising spend ever will. This is because you are speaking directly to the type of people who are most interested in what you have to offer. Obvious really, but we too often jump on the bandwagon of what big brands and “gurus” are using. You’ll have time for advertising when you are one of them. Until then, spend your money more wisely, when you want to get new clients.

2. Get Intimate with your Current and Past Customers

Ask your current customers, or those for whom you have just finished a project, if they need anything else? Ask them if they know anyone else who may need your services. They have just seen you in action and assuming they are happy with the result, they are probably happy to share their experiences with others. If they don’t have any ideas, then at least get a quote from them that you can share on your website. Social proof remains one of the best ideas to influence people who are unsure about hiring you, so you can get new clients.

Then analyse the profiles and develop a persona of your ideal client, if you don’t already have one. You can use my 4W™ template to help you with this task. Remember that the 4Ws stand for WHO, WHAT, WHERE and most importantly of all WHY. Often it is in the WHY that you will get ideas about who and where else you can go looking for work. Chase the problem and offer a solution. Most entrepreneurs and businesses make the mistake of chasing customers and fail to connect with them.

Chase the problem and offer a solution. This is the most efficient way to find potential new customers. #CustomerFirst #CEX #Customer Click To Tweet

3. Go Online and Find People Talking about your Category or the Type of Work you do

Quora is a good place to start. Answer questions so you get noticed and appreciated for your wisdom. (Hope I’m impressing you with my ideas here! If not then please leave a comment and tell me what I could do better)

Next check the usual social media platforms and again find discussions about what you offer. Reach out to anyone who says they’re frustrated, angry, unhappy etc. Understand why they are saying this and then offer them a solution.

That’s a surefire way to get new clients, because we all love people who come to us with solutions rather than problems, don’t we? And we forget that many executives haven’t got someone else to turn to. Be that person.

We all love people who come to us with solutions rather than problems, don't we? Be that person. #CustomerFirst #CustomerSatisfaction #CEX Click To Tweet We forget that many executives haven't got someone else to turn to when they have problems. Be that person. #Executive #CEO #CMO #ProblemSolution Click To Tweet

4. Offer a Free Analysis of Potential Clients’ Websites

This was in answer to the industry in which the person who asked the question on Quora was working. I do this a lot, as reviewing a potential customer’s website is a great way to see just how customer centric they are – or not! (If you would like a free analysis, just add your name and website URL below and I’ll send you my thoughts) But you can offer potential clients the chance to experience your work for free in many other ways.

Free is one of the most popular words on the internet, so why not make use of it? But don’t overload your response by providing too much detail. Give too much and they won’t need to hire you, they will be able to follow your suggestions and do it themselves. (And I stand guilty of this, I know! I always like to over-deliver.)

Provide a few ideas about things that need changing, but don’t give the solution too. End with a comment like “There’s a lot more I could help you with to make your website shine, but it would be too long to write here in detail. Let me know if you’d like to chat.” Then pitch them your solution when you have the person on the line.

I use this myself. I offer the mini C3C Evaluator™ tool for free and charge for the full quiz. People who try the mini version still get tremendous value and clear actionable results from it, but of course the full tool would provide much more depth – plus a free advisory session with me to discuss next steps. All this for $99 when my hourly rates are more than five times that! I’m sure you can see that they are getting a bargain, and me a very happy potential new client!

5. Frequent Outreach

Perhaps the best tip of all, is this last one – for now; I have many more I can share of course. (See what I just did?!) Go back to everyone who responded to your outreach but said no. Perhaps it was no then, but could be a yes now. However, don’t pester them with daily or even weekly emails. Wait a month or more before reaching out again. Also, go back to everyone who didn’t respond. These days, we receive so many messages that we sometimes delete without reading, or they end up in our spam folder. Send a second and third follow-up email, again waiting a few weeks or even a month or two between each.

So there you have a few ideas on how you too can grow and get more clients. Hopefully these five suggestions and tens of ideas will spark some ideas for action in you for your business. PRINT THIS OFF AND READ IT whenever you are in a low spot on your business curve. It will inspire you to take action in those moments where we feel frozen in panic and lacking in ideas.

And of course, you can always reach out to me for a whole lot more. I’m Denysech on Skype. However, if you do connect there, please explain why you are connecting. I get anonymous connection requests every day – and refuse all those from people I don’t know! Thanks.

What Customers Want Today. (And How to Give It To Them!)

As a customer centricity champion, just like you I hope, I spend a lot of my time researching what customers want.

I’m always trying to understand exactly what their preferences are today, and where these may be going. My regular searches online include customer service, customer satisfaction, customer care and similar topic areas. Google is my best friend!

However, I recently came across some surprising facts, which prompted this post. I believe they show a serious problem in the business of looking after our customers today. Read the article and then let me know whether or not you agree with my analysis.

 

Customer Centricity

Wikipedia, another online friend of mine, doesn’t have a definition of customer centricity! If you look the term up, you get directed to customer satisfaction! Unbelievable isn’t it?  Try it for yourself and see.

My other go-to online resource for understanding terms is  businessdictionary.com, which defines customer centric as:

“Creating a positive consumer experience at the point of sale and post-sale.”

It then goes on to say:

“A customer-centric approach can add value to a company by enabling it to differentiate itself from competitors who do not offer the same experience.”

Now although I find the definition somewhat limited since it refers only to sales and post-sale activities, I do like the fact that it mentions three important elements of customer centricity:

  • a positive customer experience
  • adds value to a company
  • enables differentiation

This clearly identifies three huge benefits of becoming (more) customer centric for any and every business:

  1. A positive customer experience has been shown to increase both loyalty and advocacy. (>>Tweet this<<) As we all know, it costs ten times – if not even more – to acquire a new customer, as it does to keep a current one. Therefore strong loyalty is a valuable benefit for a brand.
  2. Adding value to a company also increases the ROI of its marketing investments. This is something that marketing is challenged to prove today, with the risk of seeing their budgets cut if they can’t. Luckily, what’s good for the customer is good for business. You can see many more facts and statistics in Forrester’s report “The Business Impact of Customer Experience”  HERE.
  3. The third benefit is just as important to the growth of a business. Enabling differentiation in this complex world is invaluable in standing out from the competition. (>>Tweet this<<) In so many industries today product performance and services are almost identical, so how can you differentiate your brand? By your customer care, that’s how. And knowing exactly what your customers want. It has been shown that customers are willing to pay more for excellent customer service. Yes MORE for exactly the same product or service, so why are you waiting? You can read a summary of the American Express research that reported this finding HERE.

I would also add that to summarise what customers want today, it is a seamless experience from pre to post purchase, both on and offline. That’s how you deliver satisfaction, build loyalty and create raving fans.

 

The Importance of Customer Satisfaction & Understanding 

There is no denying that customer centricity is important, no vital to growth and profitability. However some companies are (too?) hesitant to adopt best practices in this area, which concerns me for a number of reasons:

  • Changes are happening too slowly in most organisations. If it is important for the business, then what is stopping companies from adopting a more customer centric approach? The longer they wait, the more they risk being beaten by a more customer friendly competitor. And this is why so many start-ups are stealing significant share from the major brands. It’s no longer (just) about product and service performance any more. It’s about how the customer feels about your brand. Niche brands have understood this better than anyone.
It’s no longer about product and service performance any more. It's about how the customers FEELS about your brand. #Marketing #Brand #CEX #CRM Click To Tweet
  • Customers are complaining – a lot – about the way they are being treated. Why are companies not accepting these criticisms as the gifts they are? Acting promptly before the issue becomes a social media viral discussion is essential today and your complainers may even turn into advocates if delighted with the outcome. Complaints are also a wonderful (free) sources of innovation and renovation ideas. Find out what your customers are unhappy about and then propose a solution. You may even be able to charge more since the new offer will better meet their needs.
  • Customer service is still being confused with customer satisfaction. Companies are happy when their customers say they are satisfied, but that is no longer enough. All businesses should be looking to surprise and delight their customers! Find more inspiration on this in “The Revolutionary Marketing Challenge is Not Customer Satisfaction.”

As mentioned above, the research that prompted this post was a Google keyword investigation of terms related to customers. Having seen the strong positive trend for the word customer, I then wanted to understand what it was about customers that was of interest to those searching online.

I found that both customer service and customer care showed almost identical positive trends. However, when I looked at customer satisfaction and customer understanding the trends were flat and worse, minimal. (You can see the trend graph below)

 

These trends suggest to me that companies search how to improve their customer service and care, but not about how to understand their customers or increase their satisfaction!

How can this be? Surely an interest in customer service should come from an increased understanding of how to deliver customer satisfaction? Well apparently not, at least for most people!

And this is when I realised that perhaps businesses are more interested in the process than the real benefit of customer connection. That is a serious flaw in their thinking in my opinion. Do you agree? Whether you do or don’t, please comment below.

To confirm my hypothesis, I looked into customer satisfaction levels and their trends. After all, many more companies are interested in customer service these days aren’t they? So you would think it should have a positive impact on customer satisfaction.

According to the latest report from  The Institute of Customer Service on customer satisfaction across Europe, retail, insurance and banking are the three best performing industries. This was a surprise to me because they used to be the most heavily criticised!

However this suggests that they have taken action, albeit because they had little choice, and are now leading the pack. But most other industries continue to ignore what their customers want. You can see the full Infographic overview below; click on it to see the full-sized original.

 

 wAAACwAAAAAAQABAEACAkQBADs I then went back to Google to find ways which were suggested for increasing customer satisfaction. I found almost 100 million articles on how to do it, but very few on the results. While this is certainly a significant increase on the measly two million I found just a few years ago, it is still extremely worrying.

The increased interest in customer satisfaction is confirmed by the latest results of the US ACSI (American Customer Satisfaction Index) report. It shows customer satisfaction is stable after showing steady growth since the beginning of last year. That was the latest turnaround after more than two years of disastrous declines.

Customer satisfaction shows what customers want
National ACSI Q1 2018 USA

It has been proven that changes in customer satisfaction are a predictor of future consumer spending. So although we can rejoice at the return to higher levels, the latest stagnation suggests average future spending growth at best.

David VanAmburg, who is Managing Director at ACSI said recently:

“Customer satisfaction will need to increase for the economy to grow at a faster pace. It’s tough to pinpoint one cause of the stagnation, but unless it budges, the national ACSI score paints a dire picture for consumer spending growth.”

In the UK, which leads Europe in terms of customer satisfaction, levels also rose for the first time in four years, reflecting a more positive economy. However, that was before the Brexit vote and before the exit! I am looking forward to seeing whether the Brits’ optimism continues this coming year.

 

Key Takeaways

So what does a business need to do to deliver what their customers really want today and increase their satisfaction? There are seven facts that become apparent from this analysis:

  1. Businesses should always provide a positive customer experience and do whatever it takes to not only satisfy, but ideally delight their customers.
  2. Companies need to go beyond the mere process of customer centricity, to truly put their customers at the heart of the organisation, by adopting a customer first strategy. Read “What a Customer First Strategy Is (And what it’s not!)” for more on this.
  3. Customer centricity adds demonstrated value to a company; it should be a no-brainer for every single business, whatever the industry.
  4. Customer centric improvements are happening too slowly in most companies, especially when customers are becoming ever more demanding and verbose when disatisfied.
  5. Providing customer service doesn’t guarantee customer satisfaction.
  6. A positive customer experience always increases loyalty and advocacy.
  7. Excellent customer service enables differentiation and even higher prices.

In summary, people want businesses to listen and understand them. When a customer takes the time to contact a company because they are unhappy, or even just for information, they expect a satisfactory outcome as a minimum. Those organisations who go beyond, to deliver surprise and delight, will see their reputations improve, as well as an increase in their customers’ loyalty and advocacy. 

Customers also want companies to be open and transparent. They want immediate, if not instantaneous, answers to their questions and criticisms.

They have a right to know the source of ingredients, the ingredients themselves, the country of origin, the charities the company supports, or the organisation’s policies on waste, water and sustainability. What customers really want today is to have their questions answered (almost) immediately, especially on social media. They expect things that go wrong to be put right – quickly, with an equally rapid explanation and apology.

So how are you doing? Are you living up to your customers’ expectations? Are you delivering what your customers really want? How have you made progress in this area in the past year or so? Please share your success stories below. 

You know you can no longer wait; you’re getting left behind by those organisations – and competitors – who are taking action today! Take the C3C Evaluator™ quiz and find out exactly where your greatest opportunities lie. 

For more ideas on how you can understand what your customers want even better, why not organise one of our 1-Day Catalyst Training Sessions? We have them on many areas of customer understanding and service, so you are sure to find exactly what you need to inspire and energise your team. Check out and download our brochures.

If you would rather talk through your specific needs first, so we can personalise the course just for you and your team, then feel free to book time in my calendar. 

This post is an update of one that was first published on C3Centricity in 2011. The featured image at the top is from the book “Winning Customer Centricity – Putting customers at the heart of your business – One day at a time.”

How Well Do you Know Your Customers? 13 Questions your Boss Expects you to Answer

Be a true leader; share this post with the members of your team who need the inspiration and support.


Your boss expects you to be able to answer all his questions and especially to know your customers. Here are the 13 things your boss is likely to ask you and a handy Checklist to prove to him that you know your customers better than he realises.

Everyone speaks about customer centricity and the importance of the customer, but just how well do you know yours – really? The following is a checklist of 13 facts you need to be able to answer in order to know your customers as well as you should.

As you read the post, keep tabs on your answers and share your final score below. I’m offering a personal 50% discount code to spend in store for everyone who publishes their score here in July 2018. And if you’re the boss, I’d love to hear how well you think your team would do – 100% of course, no?!

 

 

#1. Who is your customer?

C3Centricity how well do you know your customerOK I’m starting off slowly, but do you know who your customers are? Not who uses your category, but who the people are that actually buy your product or service today? How much do you really know about them?

Their age, gender and location are the basics, but there’s a lot more you need to know about them. Check out12 things you need to know about your target customers for more on what you need to know to be able to describe them in the depth your boss expects.

The C3Centricity 4W™ Template is a great resource for storing all the information you have on your customer. Download a free copy and watch the related videos HERE.

 

 

#2. What business are you in?

Although this refers more to the category than the customer, it is important to ensure you are looking at it through the eyes of your customers. Many organisations are working with industry definitions rather than customer ones. What about you? If you want to know your customers, you need to understand what category they think they are buying.

This is one of the essential elements you need to understand in order to know your customers deeply. It is something that many organisations don’t take the time to clearly identify, which results in an incorrect appreciation of their market and competitors. By not correctly identifying the category you are in, or plan to enter, your innovations will also lack the success you are hoping for.

Many organisations are working with industry definitions for their category rather than customer ones. They are losing sales! And you? #CEX #Customer #Category Click To Tweet

For instance, are you in the food business or the pleasure business, beverages or relaxation? One of my clients wanted to launch a fruit flavoured soft drink and thought they were competing with other soft drinks. When we worked together we discovered that they were actually competing in the energy drink business!

How many of your brands are not competing where you thought they were? See How to Innovate better than Apple for more on this topic.

 

#3.Who are your major competitors?

KNow your customer checklist on competitionAgain another slow starter to show you know your customers. Here you want to make sure that you have correctly identified what market you are actually competing in and who are your competitors. It just might not be the one you think!

Also, do you know as much about your competitors’ customers as you do about your own? Complete a SWOT to know exactly where you stand with them – although it’s probably best to wait until you have read the next eleven points before actually doing this.

Once you know who your competitors are, use the 4W™ Template again for each of the major ones and add information to it every time you learn something new about them.

 

 

#4. What do they buy?

What and where your customers buy your product should have been covered in point #1. (If it’s wasn’t, make a note to gather that information and add it to your 4W™ template.)

Now you should look at how much your customer spends on your product or service and how much they have available. How does what they spend compare with the amount they spend on your competitors? Is your share of category and wallet growing? If not, why not?

Other information you need to gather to know your customers in this area is how they react to promotions. Do they only buy on promotion? Do they buy in bulk? Do they have size or packaging preferences? All this information will help you to get into the head of your customers and really know them.

Understanding the shopper, who is not always the person who uses or consumes your product, is also essential information you need to have at your fingertips for this section. If they are different people (mothers, housekeepers, single mums) then I would suggest you also develop a 4W™ Persona Template for the shopper too. In this way you can compare and understand the similarities and differences between the buyer and the consumer. I’m sure that having personas for both will also impress the boss and show him/her that you really know your customers!

 

#5. What does your customer need?

I’m not speaking about what he says he needs, but what he really needs and perhaps doesn’t even know yet. What would surprise and delight him? What does he need that he only knows he does when he sees it?

Sometimes customers will compensate without even realising it. By watching and listening to them you will know your customers well enough to be able to offer them even more (satisfaction). Read “Five Rules of Observation and Why it’s Hard to Do Effectively” to become an expert at customer connections.

Apple is one company that seems to be very good at getting at peoples’ unarticulated needs. Be inspired by them to know your customers as deeply as they do.

Apple have people queuing up to buy one of their new products even when they already have a perfectly functioning older model. Do they really need this new version? No. Do they want it? Perhaps! But, what their real emotion is, is a desire, a craving for the latest version, whatever the price! Wouldn’t you like customers to feel the same about what you have to offer?

 

#6. What do they think of your price?

To know your customers you need to understand cost versus value to them.
Source: Dreamstime

Here consider not just the price they pay, but also the cost to them of their actual purchase. Do they buy online with packing and shipping costs extra? Do they have to drive out-of-town or even further to be able to purchase? All of these add to the perceived cost of your brand.

In order to know your customers, you have to calcualte the total cost to them of buying what you have to offer? And how that price compares to the total value they place on it?

Value will automatically include comparison to competitive offers, so ensure you include an evaluation of their brands’ values too.

Review the elements of your offer which your customers value and which they value less. Is there room for renovation to include more of what they like or to remove what does not bring value – and usually involves cost for you. Spend your manufacturing and development budget on things your customers value most.

Spend your manufacturing and development budget on things your customers value most. #CEX #Renovation #CustomerValue Click To Tweet

 

 

#7. What do they think of your packaging?

Packaging today goes far beyond protecting the product inside and making its on-shelf presence more impactful.

It is a further medium for communications and also for showcasing your value and USP (unique selling point). However, many organisations have still not realised this. You can therefore get ahead of the competition when you know your customers deeply and their packaging preferences. Read “Is your packaging product or promotion?” for more on this topic.

Packaging is also an important part of your manufacturing costs so its value to the customer should be critically assessed. Even if you reduce your carton strength or pack content because you can, it certainly doesn’t mean you always should. Perhaps your customers don’t immediately notice the changes, but one day they will wake up and re-evaluate the value they are getting. Your packaging which is now made of flimsy carton, will appear to them as being of lower quality and this perception mat get transferred to its contents. Upon evaluation of your total offer, they then might decide to switch away!

Just because you can reduce your carton strength or pack, doesn't mean you should. Your customers may not notice in the short term but they will in the longer term when you have taken things too far. #Pack #marketing Click To Tweet

 

 

#8. What do they think of your product?

Know your customers product preferencesProduct testing is an often overlooked essential of concept development. Even if a product is tested before launch, and supposingly does well (or it wouldn’t have been launched, I hope) competition is constantly changing, as are your customers’ tastes.

Therefore it is important to keep an eye on your performance over time. Annual measurement at the very least and preferably also of your major competitors is the minimum, to keep your finger on the pulse.

Another important aspect of product testing is to keep track of the metrics over time. It is not sufficient to test versus your previous offer or that of your major competitor. Incremental changes may not be immediately noticed, but can become significant over time. And this applies to product just as much as to its packaging mentioned above.

If you don’t have the budget for regular testing – and I would question why you don’t for such a critical element of you mix – there are other things you can do. Follow social media comments from your customers for one. These provide invaluable input not only on your product’s performance and that of your competitors, but online comments can also supply ideas for renovation and innovation.

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#9. What do they think about your advertising?

As with product testing, this is another of the on-going performance metrics, to ensure you know your customers. In addition, the earlier you start testing within the communications development process, the less money you will waste on multiple advertising concepts. I am continually appalled at just how many companies waste large portions of their marketing budget by producing multiple ads, sometimes to practically air-readiness before choosing the final direction.

The earlier you start testing within the communications development process, the less money you will waste on multiple advertising concepts. #ads #brand #marketing Click To Tweet

Of course, your ad agency will never complain about you working in this way, but couldn’t the money be better spent elsewhere? I highly recommend you check out PhaseOne’s unique tool for early stage, confidential global communications evaluation.

Their clients rarely develop more than two ads and often by testing early-stage concepts, they develop only one. Think about how much money you could save by doing this! Contact me if you’d like to hear how businesses globally are benefiting from this approach and saving tens of thousands in ad testing..

 

 

#10. What do they think about your online presence?

It’s not so much what they think here, but more about do they even notice? Unless you know your customers’ habits online, you are unlikely to be where and when they are ready to receive your messages.

Instead of choosing and using just the most popular online websites – like everyone else – your work completing point #1 will indicate which are the most visited by your customers. For some brands an online presence is of minimal importance, whereas for others it actually replaces more traditional forms of advertising. Think of RedBull as just one powerful example of this. Although they now advertise both on and offline, they started building awareness through social media and word of mouth alone.

 

#11. What do they think of your social media personality?

You can’t hide your personality on social media, nor delete what you have shared. The words you choose for a Tweet, the ideas you share on FaceBook, the images you post on Pinterest, all build to a picture in the minds of your customer. What image do you think was created in the minds of people who read the following Tweet exchange from Nestle?

Know your customer to prevent such disasters
Click to see full conversation

 

 

Treat your online discussions in the same way you would any other form of communications and use the same tone and spirit. Just because it’s new media doesn’t mean it is less important or serious.

As the above example shows, mismanagement of customer connections on such platforms cannot be removed – even if as Nestlé did, you take it off your own website – it will always be online for others to find and haunt you with!

 

#12. Why do they buy?

There are many “why” questions I could have added here, but this is fundamentally the most important. If you know why people buy and how you are satisfying their needs, the more likely you are to satisfy them.

In addition, if you frequently monitor their changing needs and desires through trend following, the more likely you are to continue to enjoy increasing customer satisfaction.

But please don’t stop at trend following alone. Develop the trends into plausible future scenarios and you’ll be years ahead of possible changes in customer desires – now that’s a true competitive advantage! Read Turning trends into future scenarios and the 10-step process you need to do it for more on this topic.

 

 

#13. Why do you sell?

I’ve saved the best for last. Why are you in the business you are in? Are you looking to grow a products’ sales, increase distribution for your other products, make a different product more attractive (or a competitors’ less attractive), or are you just milking profits? All of these are valid reasons, but you need to be very clear on why, in order to know how to answer all the other questions.

 

The BCG Growth Share Matrix is a well-known tool you can use to check that you really understand what you are trying to do. This verification will enable you to eliminate the actions that don’t align with your objectives and mission for your brand.

 

Know your customer by using the BCG share-growth matrix
Source: Shazeeye.com

 

 

So there’s my 13-point “Know your Customer” checklist to enable you to know your customers well enough to answer any question your boss may ask of you. I suggest you go back to the top and revisit each point and answer them truthfully. By reviewing all 13 I am sure that your thoughts will have changed or at least been modified as a result of this new perspective.

These are the essential questions your boss may (should?) be posing and you should be prepared to answer whenever you are asked. And if you yourself happen to be the boss, why not ask your team how many they can answer? Let my know your score below; be the first to confirm that you can answer all 13!

This post is based upon an article first published on C3Centricity in 2013.

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