Customer understanding - c3centricity

How to Measure Customer Delight and Prove Its Impact on Brand Loyalty

Posted on August 20, 2024August 23, 2024 by Denyse Drummond-Dunn

As we all know, customer satisfaction is no longer enough to secure brand loyalty – if it ever was!

Companies must strive to go beyond mere satisfaction and aim to delight their customers.

Customer delight refers to exceeding customer expectations to create a positive emotional reaction, leading to stronger loyalty and advocacy.

This post explores the importance of measuring customer delight, its impact on brand loyalty, and practical methods to achieve and assess it.

The Evolution from Satisfaction to Delight

Customer satisfaction has traditionally been the benchmark for evaluating customer experiences. However, research shows that satisfied customers are not necessarily loyal customers. According to a study by the Harvard Business Review, 20% of satisfied customers reported they would consider switching to another brand. This indicates that satisfaction alone does not guarantee loyalty.

Customer delight, on the other hand, involves creating an exceptional experience that surprises and excites customers. This emotional engagement fosters a deeper connection with the brand, leading to higher levels of loyalty. A delighted customer is more likely to become a brand advocate, spreading positive word-of-mouth and contributing to long-term business success.

Measuring Customer Delight

Measuring customer delight requires a different approach than traditional satisfaction surveys. Here are some effective methods to assess customer delight:

1. Net Promoter Score (NPS)

NPS is a widely used metric that gauges customer loyalty by asking how likely customers are to recommend a brand to others, on a score of 1-10.

It categorizes respondents into Promoters, Passives, and Detractors. While NPS primarily measures loyalty, it can also indicate delight when customers express a strong willingness to advocate for the brand.

According to Bain & Company, companies with high NPS scores grow at more than twice the rate of their competitors. For instance, Apple, known for its high NPS, has consistently seen strong brand loyalty and customer advocacy.

Trader Joe’s also uses NPS to understand customer loyalty. Their high scores reflect the company’s emphasis on friendly service and unique product offerings, creating delighted customers who frequently recommend the store to friends and family.

2. Customer Effort Score (CES)

CES measures the ease with which customers can interact with a company, including problem resolution and purchasing processes. A low effort score often correlates with higher delight, as customers appreciate frictionless experiences. Gartner found that 96% of customers with a high-effort service experience become more disloyal, highlighting the importance of minimizing customer effort.

Glossier, a beauty brand, simplifies the shopping experience through a user-friendly website and seamless checkout process. Their low customer effort scores contribute to high levels of customer delight, evidenced by their strong customer retention rates.

3. Emotional Response Surveys

Traditional surveys can be enhanced with questions designed to capture emotional responses. For example, asking customers how they felt during their interaction with the brand can provide insights into their level of delight. Emotions such as joy, surprise, and excitement are strong indicators of customer delight.

Lush Cosmetics incorporates emotional response questions in their customer feedback forms, asking how their products … Click to continue reading

Twenty Ways to Delight Your Customers: Transforming Satisfaction into Loyalty

Posted on May 12, 2024September 14, 2024 by Denyse Drummond-Dunn

Today, most markets are saturated, and companies are fighting for the same customers. This is why organisations should no longer aim for customer satisfaction but rather delight. But how can you delight your customers so they remain loyal advocates?

With fewer and fewer differences between the products and services offered, many companies have realised that they can – and should – differentiate by improving their customer experience. Here are twenty ways to get started, together with best-in-class examples, but I’d love to hear how you delight your own customers and turn satisfaction into loyalty.

1. Deliver Exceptional Customer Service

Exceptional customer service is the first essential step to plan. It’s about creating an unforgettable positive experience that fosters loyalty and word-of-mouth promotion.

A study by American Express found that 70% of consumers are willing to spend more with companies they believe provide excellent customer service.

Nordstrom sets a high standard in this regard, famously accepting the return of car tyres they never sold to satisfy customer expectations and demonstrate their commitment to service.

This example underscores the importance of empowering employees to make decisions that prioritize customer satisfaction, fostering a strong customer-centric culture.

Another company renowned for its customer service is Zappos, an online retailer. The company has a 365-day return policy and is known for going above and beyond for customers, such as when a customer service representative sent flowers to a customer who had lost her mother.

2. Personalise the Experience

Personalization makes customers feel uniquely valued and understood. It is the second most important way to delight your customers.

According to a report by Epsilon, 80% of consumers are more likely to purchase from a brand that provides personalized experiences.

Spotify exemplifies personalization by using sophisticated algorithms to tailor playlists to individual tastes, improving user engagement and increasing subscription retention rates.

This approach demonstrates how leveraging data and technology to understand and anticipate customer preferences can significantly enhance the user experience.

Netflix offers another excellent example of personalization. It analyzes viewing patterns to recommend shows and movies, enhancing user satisfaction and retention. I bet you’ve clicked on many of their suggested titles. I know I have!

3. Offer a Loyalty Program

Loyalty programs reward and encourage repeat business, creating a tangible incentive for ongoing patronage.

This strategy boosts sales and delights customers by enhancing their emotional connection with the brand and making members feel valued and special.

Sephora’s Beauty Insider program offers a compelling example with tiered rewards, including birthday gifts, exclusive discounts, and early product access.

Any way that makes your customers feel special will also increase their loyalty and advocacy.

4. Maintain High Quality and Reliability

A company’s commitment to quality reassures customers and confirms their purchase decision, fostering trust and satisfaction.

Especially where larger and exceptional purchases are made, your customers need ongoing reassurance that they made the right decision.

Toyota is renowned for the durability and reliability of its vehicles, which has cultivated a loyal customer base

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The New Strategic Growth Blueprint for Successfully Reimagining Market Research

Posted on March 26, 2024October 4, 2024 by Denyse Drummond-Dunn

It is a well-known fact that when budgets are tight, marketing is usually one of the first departments to suffer cuts, and market research in particular!

Why is this? I believe it is because their ROI is longer-term and often difficult to prove. They therefore make the perfect target for sweeping reductions. What they all need is a strategic growth blueprint.

A few years ago, I was asked to talk on this topic at the Planung&Analyse conference in Frankfurt. Despite rave reviews of the talk itself, many commented that they would have liked me to propose some sort of formula to help them to better defend themselves. So I decided to do just that with this post, but first a warning; customer understanding is being lost!

According to research by BurtchWorks, 20.7% of researchers changed jobs after an average of 3.1 years in their position. However, those with over ten years experience showed slightly lower levels of churn (17.8% and 3.4 years)

A study from Spencer Stuart among CMOs of Fortune 500 companies found that the average tenure is 4.2 years, roughly on par with the rest of the C-suite (4.4 years), with B2B companies (4.4 years) slightly better off than B2C (4.1 years).

These numbers made me realise that customer understanding risks being forgotten and then constantly reinvented by newly hired people in marketing and market research positions. What a waste of resources!

But there is something that you can do to increase the ROI of your spending, which is something the C-suite has long demanded of marketing departments. And that is to develop a CMO Strategic Growth Blueprint that includes reimagining market research and how data and information are used.

The ROI of Market Research

The challenge of proving the value of market research (MR) has also been a hot topic for more than a decade. And yet we didn’t seem to be any closer to solving it, at least until recently. I think that this is because all the studies I have seen on the topic concentrate on identifying what is wrong, but rarely offer help in what to change to provide more visible value to their companies. I want to put this right.

The CEB / Gartner Analysis: This analysis concludes that MR provides two types of value. Firstly from new projects and secondly from accumulated knowledge over time. By plotting these two, they came out with a three-phase progression of how MR can add value to an organisation. (see below)

However, with both marketers and market researchers changing jobs (too) frequently, there is far less accumulated knowledge than previously. But don’t worry I have the solution in the form of a new model of CX, which I will explain in a moment.

The BCG Analysis: A few years after the CEB study, BCG (Boston Consulting Group) updated their own analysis of research they first ran in 2009. They came out with a slightly more differentiated four phases of value for MR as … Click to continue reading

Do Less Market Research But Know Much More About Your Customers

Posted on October 10, 2023October 4, 2024 by Denyse Drummond-Dunn

Do you always need the market research studies you run?

You might have seen a recent post of mine on LinkedIn where I said how frustrated I am with marketers who start with a survey when they have a question, rather than ending with one.

If you too have this habit, then I want to share how you can do fewer surveys and yet still know much more about your customers.

Let me start by saying that I am not suggesting that companies don’t run market research. Rather, I am proposing that they don’t conduct a survey before having reviewed their current situation in detail. And in particular, the information that is already available inside the organisation.

In many companies, there is far more information available than people realise. Research shows that 68% of data is not used by businesses who invest in it — that’s over two-thirds of data – and budgets – wasted!

To make optimum use of your resources – time, money, and people – my suggestion is to first gather and analyse what is already available. In this way, any research that is conducted will be far more focused, and usually faster and cheaper too!

In my CATSIGHT™ process for actionable insight development, data gathering is the sixth of the seven steps! If you’d like to learn more about it, then do check out my online course on the topic. In under two hours, you will learn how to easily develop insights that can be immediately put into action.

Ten Reasons NOT to Run Market Research

One of my cornerstone posts here, which continues to receive hundreds of views every month is “Ten reasons NOT to conduct market research.” In summary, I advise leaders to avoid surveys:

Where the objectives are not well defined, and the issue or opportunity needs further clarification.
Where the cost of running the survey exceeds its value, especially in how the information will be used.
Where the budget is too small to do an adequate job of information gathering. In this case, corners will be cut, either in terms of the depth of the investigation or in the sample size.
Where the time available to run and report on the project is too short. This is often a problem when new products or communication campaigns are being tested, and there is a delay in their delivery for testing.
That could “tip off” the competition by researching the confidential topic. Obviously running projects on ultra-secret development work is ill-advised unless you carefully control who is interviewed.
Where the findings would not be actionable. Hopefully, this can be avoided by having detailed clarification of the objectives of the study.
That are motivated by internal politics, such as to prove a point, rather than by a need for information.
That are designed to measure trends that progress too slowly or too fast and thus will provide insignificant changes.
Where the agency used to gather the information is unreliable or unethical. This may

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Are You Giving What Customers Want Today?

Posted on July 3, 2022October 4, 2024 by Denyse Drummond-Dunn

As a dedicated customer centricity champion, just like you, I spend a lot of my time researching what customers want, just like you do too, I hope. In this period of great global unrest, understanding our customers has become more important than ever before.

Just a few short months ago, I didn’t think that it would be possible for customer-centricity to become any more important. But things change and now everyone is fighting to keep their businesses afloat. So the new and constantly altering needs and desires of our customers should be a top priority for all of us to follow.

To help me keep abreast of the changes, I’m regularly checking online searches for such terms as customer service, customer satisfaction and customer care. Google and Bing have become some of my best friends!

A couple of years ago, I came across some surprising facts, which prompted this post when I first drafted it. But with the incredibly unforeseen events of the past few years, I feel it deserves a update.

Already at the time, my analysis suggested a serious problem in the business of looking after our customers. Today it is clear that any organisation that hasn’t spent time putting things right, will most certainly be suffering in this post-pandemic, global unrest in which companies are trying to do business. I’d be interested to hear your own thoughts once you have read the article.

Customer Centricity

Wikipedia, another of my faithful friends, doesn’t have a definition for customer centricity! If you look up the term, you get directed to customer satisfaction! Unbelievable. Try it for yourself and see!

Gartner defines customer centricity as:

“The ability of people in an organisation to understand customers’ situations, perceptions, and expectations.”

It then goes on to say:

“Customer centricity demands that the customer is the focal point of all decisions related to delivering products, services and experiences to create customer satisfaction, loyalty and advocacy.”

What I particularly like about this definition, is that it refers to customer understanding and the need for customers to be the focus of decision-making. It also highlights the need to create not just customer satisfaction, but loyalty and advocacy too.

Now whereas it seems to be difficult to build longterm loyalty these days, especially in B2C businesses, advocacy is essential in today’s connected world. Of course the latter means that customers are surprised and delighted rather than just satisfied, so that they are excited to share their positive experiences with others.

Need help in adopting a customer-first strategy?

Check out our Brand Accelerator™ Course in the C3Centricity Academy

Aim for Advocacy Rather than Loyalty

As we all know, it costs between 5 and 25 times more to acquire a new customer as it does to retain existing ones. (Invesp) Therefore strong loyalty is a valuable benefit for a brand. But covid saw us all changing our purchasing behaviours, as we researched, compared and then bought more online. So although loyalty is difficult, it … Click to continue reading

The 6 Best Ways to Show you Respect Your Customers

Posted on May 15, 2022September 14, 2024 by Denyse Drummond-Dunn

I was recently asked to speak about how to build relationships with clients, in this case for a realtor association. In preparing for the interview, I got to thinking about customer privacy and how important it is to build a mutually beneficial relationship to respect customers.

Customers don’t want to be automatically segmented and followed as they go about the web, viewing different sites. An article on Business2Community by Owen Ray says 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 about the topic of cookies, I highly recommend this two-part article.

Companies that 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. Many businesses ask far too much of their customers, with little if anything in return. I believe this is one of the major reasons customers today are becoming sensitive to what and to whom they give information about their interests, habits, needs and wishes. And why cookies are rapidly becoming a thing of the past.

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 intentionally, if at all, subscribe! You too?

Whether you are connecting with your customers by mail, phone, email or the web, you must first request permission to ask any questions and gather the information you are looking for.

Not only should you ask for their consent if you are not in direct personal contact, but you should also double-check that permission when connecting via email or the web. You have to ensure that the agreement has been given by your customers and that they are still ready to provide the information.

Being attentive to privacy when starting to build a relationship is vital and shows that you respect your customers.

This 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 agreed to provide or receive information or to be put on your mailing list.

Far too often, I see requests where permission is encouraged by using colourful buttons to click, or an implied criticism if you don’t, with phrases such as “No, I have enough sales” or “No, I don’t want to save money”.

2. There Must be Mutual Benefit

When your customer has agreed to provide information, you need to thank them immediately. This can be as simple as … Click to continue reading

The 5 Essential Rules of Customer Observation for Greater Business Success

Posted on March 25, 2021September 12, 2024 by Denyse Drummond-Dunn

One of the best ways I know to understand your customers is to watch and listen to them whenever you can.

Customer observation is a powerful, but unfortunately under-utilised tool these days. So when was the last time you got intimate with your customers? If it wasn’t in the last week or two, you’re not getting out enough!

Before going on, I should explain that I use the word “customer” to describe the person who buys and/or uses your product or service. For the B2B business, the recommendations in this article are still valid but would be of particular value when you work with your supplier or retailer, to help them to better know their own customers.

It is, therefore, not surprising that most companies run to conduct market research when they want to know something about their customers. 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? I bet you felt disappointed and even a little irritated that you “wasted” money on the project weren’t you? Well, this may be the result of your selective listening and interpretation. You watched and listened only to the topics that interested you. You were looking for confirmation of your hypothesis. But there was so much more you could have understood if only you had bothered 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 an organisation to come into contact with their customers. 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 posts on social media and message boards
participating in / watching promotions, demonstrations, and sampling in retail outlets
joining market research fieldwork

Some organisations also habitually get their employees to watch and listen to their customers in direct observation or connection sessions. However, these need to be managed carefully in order to avoid people jumping too quickly to incorrect conclusions, as I’ll explain in more detail below.

If you’d like to know more about running successful connection sessions in your own organisation, I can help. Please contact me for more information about 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. You can check out the Awareness Test and try it if you haven’t seen it.

In the exercise, people are asked to count the number … Click to continue reading

The Secrets to Growth. How to Get New Customers

Posted on December 18, 2018October 4, 2024 by Denyse Drummond-Dunn

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 … Click to continue reading

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

Posted on July 17, 2018September 14, 2024 by Denyse Drummond-Dunn

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?

OK 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 out “12 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.

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! Reklama internete ir SEO optimizacija https://seopaslaugos.com/117-seo-optimizavimas

How many of your brands are not competing where you … Click to continue reading