Understanding Archives - c3centricity | c3centricity

+41 79 93 39 789 info@c3centricity.com

Three Clever Ways to Know the Competition Better

What is the secret to success in business? That’s easy! It’s how well you know the competition.

Alright, maybe this is a slightly over-simplified perspective, but it always surprises me how many companies work with a primarily internal focus.

I have written many posts about knowing your customers, such as “Why Customers Are The Answer To All Your Problems (If You Ask the Right Questions).” Watching and listening to them in order to fully understand their rational needs and emotional desires is a great – and free! – way to start.

But today I would like to speak about doing exactly the same thing for your competitors. If you are going to succeed in attracting their customers away from their products and services, then it would make sense to know them as well as you do your own.

Here’s a simple three-step process to do so. 

 

Encourage employees to use competitive products & services

Know the competition better by trying their products and services.In most organisations today, using competitive products is still frowned upon; after all, we make the best don’t we, so why use those of other companies?

However to challenge and beat the competition you have to intimately know what you are up against. Regular contact with competitive products will encourage your employees to evaluate your own offering. They will also be encouraged to suggest competitors’ strengths and weaknesses that were perhaps not evident before. It will also ensure that you are rapidly aware of any improvements made by the competition. You won’t get left behind and find yourself suffering from declining sales due to competitive improvements of which you are unaware.

To challenge & beat the competition you have to intimately know what you are up against through regularly experiencing their product and service offers. #marketing #competition #brand Click To Tweet

This intimacy with competitors’ products and customers should be requested of employees at all levels, by being one of their annual objectives. Of course, in some industries this might not be possible, due to the selective nature of the product or service, but certainly for most consumer products and service companies, this can easily be done on a regular basis.

Now encouraging people to use competitive products is easy to say, but you should also be prepared to invest in it, by paying for your employees to experience them. It would be unfair, and would certainly be resented, if your people had to spend their own money to make such experiences. This knowledge gathering should be seen as an investment by your organisation, of at least equal value to offering your employees discounts on your own products and services.

Why don’t you start a similar process and add these experiences to everyone’s annual objectives? It’s a great way, and a free one at that, to know the competition better than you do today.

 

Make a Library of Competitive Products and Material

KNow your competition better by sharing what you knowIn one of my previous positions, the company had an incredible competitive library. This included every single competitive product that was available from all around the world, classified by country and organised by segment.

Everyone found this library extremely useful, especially when discussing such topics as shelf impact, packaging or in trying to understand our competitor’s portfolio strategy.

However, it was managed by the marketing services team and was hidden away in the lower ground floor where people rarely passed by. Additionally, the packs were emptied of their contents, to avoid infestations of vermin and insects, so people never got to try the products.

It would have been even better had the products been displayed in a location that was easily accessible to everyone. In addition, the products should have ideally been sampled before the packages were emptied of their contents. That said, they still remain one of the few companies I know that have been observing and following their competitors in such a consistent way for decades. As you can imagine, they were always ahead of the market and up-to-date with their competitive intelligence!

Stay ahead of the market & up-to-date with what you competitors are doing with a competitive library of products and communications material. #brand #marketing #communications Click To Tweet

Another client of mine has made a library of communications material. Their advertising agency is of course the major source of the samples, but employees who travel are also encouraged to take photos of ads and promotional materials which are then added to the library. You would be amazed how inspiring it is to review this work whenever a group is discussing their own advertising and promotions. They avoid duplication, get great ideas from countries to which they don’t normally have access, and can again take their customers’ perspective when comparing the samples with their own work.

What could you do to make your competitors’ products and communications more easily accessible to your employees? If you’re serious about wanting to know the competition better than you do today, you have to stay on top of what they are doing at all times.

 

Understand your Competitors’ Customers too

Observe to know the competition betterThis same curiosity to know your competitors’ products can also be used to know and better understand your competition’s customers as well.

When your employees go out to observe your own customers, they should also pay attention to those people who are not using your products or services. In this way they can gather additional information that can then be compared with your knowledge of your own customers.

Whether it is getting a better understanding of your competitors’ products and services or the people that use them, the information accumulated must be stored and shared internally to be of any benefit. Some companies organise weekly or monthly sessions where people from different departments can share their latest knowledge and observations. For more ideas on how to share effectively read “Knowledge sharing and how to WOW!” 

Other companies organise customer connection sessions where teams of employees from different departments – with differing perspectives – go out together with a task to complete or a question to answer. These could be for example:

  • How, where and when do people use our product or service?
  • What is their biggest frustration in shopping for the category?
  • If they could make one change to our major competitor’s product, what would it be?
  • What differences are there in the way the category’s brands are displayed?
  • Which social media channels are most popular with category users?

Employees gather ideas and information by first observing and only afterwards asking questions for clarification purposes. Upon their return, the teams can meet up to share their ideas and learnings, as well as to discuss the impact of their findings and agree on what actions if any need to be taken. For more details on how to observe customers, whether your own or those of your major competitors, read “Five Rules of Customer Observation and Why it’s Hard to Do Effectively.”

I have witnessed these customer connection sessions being run in countless organisations. Every single time I see just how excited and energised employees get about improving the way the company makes, packs, sells or communicates its products and services.

Isn’t it time your organisation got closer to your customers and those of the competition? 

 

These are three ways you can easily and quickly know the competition better than you do today. Do you have other ideas that you’d like to share? I’d love to see your comments below. 

Have you run any such customer connection exercises, or built a competitive library of products in your own organisation? If so please share your experiences too.

For more ideas on how you can know the competition even better, why not organise one of our 1-Day Catalyst Training Sessions? We have them on many areas of brand building, so you are sure to find exactly what you need to inspire and energise your team. Check out and download our brochures here. If you would rather talk through your needs first, then feel free to book time in my calendar. 

This post is an update of one that was first published on C3Centricity in 2011. All images in this article are 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.

blue arrowIs you Marketing Mix Optimal?

Does your Team need training in Brand Building?

Check out our Latest Training Courses and Advisory Offer one-pagers.icon

#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.

blue arrow

If you or your team can’t answer all 13 questions, I have a solution.

Book a 1-Day Catalyst training session and be amazed at the progress & changes!

Check out our Latest Training Courses and Advisory Offer one-pagers.icon

The New Way to Innovate You Must Start Using Today!

When I get several requests in the same week on exactly the same topic, I know something is happening in the marketplace. This week was one such occasion.

A Pharma company wants a presentation on it; a CPG company asked me to give a half-day workshop about the topic; a conference requested a keynote speech about it; a major US business school wants a guest lecture covering the idea  and a consumer goods company wants an article for their newsletter. What’s the topic? The new ways to innovate, that’s what.

With all this interest, and despite having written some popular posts in the past on best-practice innovation, such as “ How to innovate more creatively”, “How to get R&D as excited about consumer innovation as you are”  and “Never succeed at innovation: 10 mistakes even great companies make”, I thought I would summarise the latest trends around how to innovate more successfully today. So here are some ideas to get you thinking about the changes you might want to bring to your own innovation processes.

Customers react to new innovation1. Start with the customer in mind – always

So many organisations still have an innovation process that starts with R&D or operations. It’s time to reverse your innovation funnel and start with the customer. (>>Tweet this<<) What are their problems with current products and services; what do they dream of having? How are they compensating or compromising?

 

If I had asked people what they wanted, they would have said faster horses” Henry Ford

“People don’t know what they want until you show it to them” Steve Jobs

However, as Henry Ford and Steve Jobs remind us, customers don’t usually know what they want. They are usually very clear about what they don’t like, but they also often know the solution they are looking for – even if they don’t express it as such. It is our job to interpret what they are saying into what they need. Therefore, identify the result they want but not how they want to achieve it, otherwise you will be looking for that “faster horse”!

2. Stage-gate innovation is essential for a successful business

Today’s world is fast paced and customers never stay satisfied for long. What surprises and delights today, is ordinary and normal, if not tomorrow, at best in a couple of weeks or months. That’s why it’s vital to work on new product and service developments even before you launch your latest offering.

NEW INNOVATION STAGE-GATESMany companies today work with generation pipelines, with three, four or five stages of innovation preparation. This ensures that they are already working on the replacement of each product they launch, whether or not it’s a success.

3. Line extensions can only do so much

Innovations risks opportunities

According to the McKinsey article “ Reinventing Innovation in CPG“, real growth comes from ground-breaking innovations, not simplistic renovations. However, line extensions do provide the time for organisations to prepare their true innovations, while responding to today’s customers incessant desire for novelty.

They are also easier to develop and launch, which means they are less dem anding on resources. Companies which are satisfied with only incremental innovations are unlikely to see significant growth in the long-term. For this reason successful br ands need to do both. (>>Tweet this<<)

4. Launch before you’re finished

Many tech companies use this approach, by involving customers as beta testers. In this way, they get their customers help – for free – to improve and mould the final offer. It also allows them to launch more quickly and gain the positive image associations of being first to market.

If you are concerned about confidentiality or competitive speed to respond, then work with customers through co-creation. (>>Tweet this<<) Involve them at every stage of the development process from ideation to launch preparation. If your management are  concerned about the risks of sharing innovative ideas outside the company, involve employees instead, perhaps from other divisions so they are less biassed.

5. Review the category in which you’re playing

Are you sure that your customers see your br and in the same light as you do? Many times I have heard a customer correct an interviewer in a research project, when asked about br ands in a category. “That br and isn’t in that segment, category A” they say; “It’s not a competitor of X, but of Y and Z, the main br ands in category B”. Some examples include dried soups which today compete with sauce mixes, carbonated soft drinks with fruit juices and body gels with shampoos.

Another advantage of underst anding the category in which your customers place your br and is that this can provide you with new ideas for expansion.

Mars ice creamMany confectionary br ands have moved into ice cream and desserts. They have understood that they are being seen as more of a “treat” than merely “just” a chocolate bar. When your customers choose between products from several different categories when deciding what to eat or buy, it is a clear indication that you are not (only) competing in the category you first thought you were. (>>Tweet this<<)

In conclusion, there are many reasons why innovations fail:

  • A short-term mindset where success is dem anded in weeks or months rather than years.
  • Top management instils a fear of failure, so no-one will defend ideas that are unpopular.
  • The innovation process itself is biassed towards current knowledge and skills.
  • A lack of deep customer underst anding.

These five ideas will help you to reinvent your innovation and also make it more customer-centric. After all isn’t that what all best practices should do today, involve the customer? If you have other – better? – ideas, then why not share them below?

Winning Customer Centricity BookThis post includes concepts  and images from Denyse’s book  Winning Customer Centricity. You can buy it in Hardback, Paperback or EBook format in the members area, where you will also find downloadable templates and usually a discount code too.

The book is also available on Amazon, Barnes and Noble, iBook and in all good bookstores. If you prefer an Audiobook version, or even integrated with Kindle using Amazon’s new Whispersync service, you’ll have to be patient just a little longer – but it’s coming soon!

 

 

4 “Free” Ways to Connect with Customers for World-Class Understanding

Last week I spoke about five of the most important actions you can take when starting your journey to improved customer centricity. If you missed it, you can read the post  here; it will be good background information to build from for this week’s ideas and suggestions.

In this post, I would like to continue to support your efforts with some suggestions on an area that many struggle with, that of connecting with and underst anding your customers.

I believe that one of the main reasons for this, is that the target customer segment has been poorly defined. Perhaps it is too wide, such as all category users, or only superficially described just in terms of demographics. C³Centricity’s 4W™ Template, free to download in the members area, will provide a simple way for you to complete a more detailed description of your customer. Once you have that, you can then start to connect with them to deepen your underst anding of them.

1. Retail connections

There are numerous ways that an organisation can connect with its customers. If you have a retail presence, then this is as simple as going to a few of them  and then talking to the customers present. If you yourself don’t own the outlet then you will need to ask permission of the owner, but since retailers are also interested in getting to know their customers better, they will usually accept in exchange for your sharing any learnings with them. (>>Tweet this<<) Customers are more sensitive to value than price

Another opportunity to connect with your customers in retail is through promotions, demonstrations and sampling activities. These have the added benefit of being able to speak with customers who are already interested in what you have to offer, because they have stopped beside your st and. They also are generally more willing to take the time to talk to you even if they are busy, something which can be a struggle if you are just walking up to customers in the store. (>>Tweet this<<)

In addition, I have found that both these exercises can be a great way to improve your image with the retailer and may even warrant special treatment for your br and.

2. Secondary connections

If you don’t have the luxury of meeting your customers in person, then there are still ways to learn more about them. If you have a call centre, then why not listen in or even spend time answering calls? It is both a rewarding and useful exercise to do. This is why many organisations such as Zappos, make their new employees do just that in their first few weeks after being hired.

Market research can make you more customer centricMarket research projects are also another easy way to observe and listen to your customers, although in general you will be a silent observer behind the interviewer, who is asking the questions. Some people prefer to follow focus groups or in-depth interviews, even from behind the two-way mirror, since they will have the opportunity to impact the discussions by feeding questions to the moderator.

A third way for you to make these less direct connections is by following social media discussions. These can either be on the major platforms such as Twitter, FaceBook, Pinterest and Instagram, or your company’s own panel if you are lucky enough to have one. In either case, I would encourage you to observe and not get actively involved in the conversations. There have been many infamous embarrassments caused by under-qualified people responding to heated customer conversations on social media. DiGiorno (Nestle) and Progressive are just two of the more recent examples; this post gives many others that can heed as a useful warning should you be tempted to get personally involved.

3. Website connections

Today, most organisations rely on some form of online presence, to be available wherever and whenever their customers would like to connect with them. Understanding why your customers need to contact you is important to providing them with the best experience. 

Understanding why your customers need to contact you is important to providing them with the best experience. Click To Tweet

The first place to ensure you are supplying the right information is on your contact page. Are you requesting customers to complete an online form where you request many details from them? If so, it is definitely worth checking if everything you are dem anding is really necessary for that first connection. Name, email address and perhaps telephone number if you plan to call them back, should be sufficient, together with the reason they are wanting to contact you.

Connect with customersSecondly check that you are giving your customers multiple ways for them to contact you. (>>Tweet this<<) The form mentioned above is a rather anonymous connection, since there is no way for the customer to follow up, other than by sending a second completed form. The vast majority of consumers hate such forms with a vengeance and prefer to chat directly, or at least to be given alternative contact choices. Therefore you should provide your email address, telephone number and ideally a postal address. How many times have you been interested in a company only to find that you don’t know in which country they are based? Frontiers today are more linguistic than geographical, so your customers have the right to know whether or not they can visit your offices in person.

One area where this becomes vital is in online purchasing. Ensure that you make it as easy for customers as possible to shop your website. Enable them to check-out as a guest if they want, rather than imposing the completion of a long form of their details. Kissmetrics wrote a great post on this topic, with good and bad examples, which is worth a read if you are selling online.

Finally you should check the performance of your website; how many visitors do you have, where do they come from and what are they looking for in terms of information? This underst anding could be a whole post topic on its own, but since there are many already available, suffice it to say that if your website is getting few visits or your customers are bouncing away quickly, then it is not serving its purpose of building a relationship with your customers. (>>Tweet this<<)

4. Sharing connections

Meeting and getting to know your customers is probably one of the most enriching and inspiring experiences an organisation can have. (>>Tweet this<<) There is so much you can underst and about your current category and br and users by talking to them, that everyone should find ways to do so on a regular basis. As already mentioned, this could be by speaking with them directly whilst shopping, during a market research project, or over the internet. Share experiences when you connect with customers

You won’t be able to speak to everyone, so you will also rely on your colleagues to make such connections, or even external hostesses. This is why it is important that you get a full debrief, ideally in person, whenever you can.

It amazes me every time I speak to demonstrators, that they just go home at the end of the day with rarely any sort of debrief back to the client. On the rare occasions when they do tell their supervisors something of interest that they discovered, they are generally met with a lack of interest and enthusiasm. What a waste of intimate knowledge about the customer, their likes, dislikes and unmet needs and desires! Therefore share whatever you learn with your colleagues and ask them to do the same.

These are four ways for you to get a deeper underst anding of your customers  and which are probably already available to you today. How many are you using on a regular basis? Which have you found to be the most useful or inspiring. Please share your experiences below; it would be great to hear about your own successes.

Winning Customer Centricity BookThis post has been inspired by the first chapters of Winning Customer Centricity and includes images from the same book. You can buy it in Hardback, Paperback or EBook format in the members area, where you will usually find a discount code. It is also available on Amazon, andnoble.com/w/winning-customer-centricity-denyse-drummond-dunn/1121802409?ean=9782970099802″ target=”_blank”>Barnes and Noble, iBook and all good bookstores. If you prefer an Audiobook version, or even integrated with Kindle with Amazon’s new Whispersync service, you’ll have to be patient a little longer.

For Greater Customer Satisfaction, Should Marketers Answer Their Needs or Desires?

In 1943 Maslow proposed his theory about people’s needs in a paper entitled “A theory of human motivation”.

He used the terms Physiological, Safety, Belongingness and Love, Esteem, Self-Actualization and Self-Transcendence to describe the pattern of needs that motivate people. At the time he didn’t present it as a hierarchy, nor as a pyramid, but that has become the accepted representation these days.

Maslow's hierarchy of needs

While the hierarchy remains a very popular framework in sociology, management training and psychology instruction, it has largely been supplanted by attachment theory in clinical psychology and psychiatry. However since attachment theory is concerned with how people respond to hurt, separation and threat within relationships, it has less relevance for marketers.

All br ands, products and services should be designed to satisfy their target’s needs, so Maslow’s hierarchy seems a good framework to use, when defining on what your offer will be based.

If this interests you, and it should especially if your business is global or geographically spread as I will explain below, then here are the three steps for doing so.

1. Satisfying: Firstly identify which of the five needs your br and or service is looking to fulfill. Remember different br ands within the same category can play to differing needs, especially in terms of their communications. Whilst it is generally accepted that the lower needs must be satisfied before higher needs can be addressed, there are exceptions.

Think of consumers in poorer countries who will buy a TV over proper shoes and clothing for their children. In such cases status and in particular consumer emotions are playing an important role, but more of that later.

2. Resonating: Next develop communications for your target audience by incorporating solutions to their relevant needs. These will obviously resonate more quickly and easily with them than pure product or service information alone. They may also be more emotional and will therefore have greater impact on them.

Here are some good examples that I have seen in recent years of easily identifiable needs being addressed through advertising.

Knorr’s packet soup in the UK, based on needs of food, safety and love. See video

Cartier’s corporate campaign from last year, which marked its 165yrs, was appropriately named “L’Odyssée de Cartier” and is clearly based on esteem and self-actualisation.

 – Omo washing powder, one from a long series entitled “Dirt is good”, based on safety and love. See video

Peugeot car, based on self-esteem and status: See video

UK back seat safety belt buckle-up campaign, based on safety. Warning, the ending is violent! See video

Interestingly, all these are examples from a few years ago. Although newer examples are available, they are not as obviously based primarily on need states as are these ones. I believe one reason for this is the increase in the level of pure emotional content of current advertising. In fact all the above examples use emotions as well in addressing the needs they are looking to answer, which is perhaps why they performed better than many.

We find much more content today that addresses primarily desires rather than needs. One reason for this is that marketers have finally realized that people often buy out of desire and not because of a need alone. However, what makes it difficult for marketing to respond, is that people find it easier to speak about their needs or what they don’t want, than their desires.

Henry Ford apparently already knew this when he said:

“If I had asked people what they wanted,

they would have said a faster horses”

He resonated with them by providing a solution to their need of travelling more quickly, but in an exciting new way. A more recent quote with a similar sentiment comes from the late Steve Jobs of Apple. People often claim that he was against Market Research, but that was not true. He was in fact only against market research in which questions were simply being asked of consumers, an nd marketers were then responding directly to the answers given without further thought. As he was quoted as saying:

“It’s really hard to design products by focus groups.

A lot of times, people don’t know what they want until you show it to them” (>>Tweet this<<)

I believe he understood that it was better to respond to a consumers desires than to their needs. Look at Apple’s advertising; it has almost always been resonating emotionally rather than merely rationally with its target customers. As a typical example, check out their ad from last Christmas, a real tear-jerker called “Misunderstood“.

http://youtu.be/nhwhnEe7CjE

However, I know that many good examples of needs-based advertising do still exist. If you yourself have any representing identified human needs, then it would be great if you would share them in the comments below.

3. Going Global: Another advantage of using Maslow’s hierarchy of needs to position your br and / service, is that the same needs are felt by all human beings. That is why these communication ideas are often referred to as “Human truths”. This means that you are more likely to be able to successfully roll out such a campaign regionally or even globally, than if you were basing communications on local specificities alone. The examples above, although mentioned as being from certain markets, were actually all regional or global campaigns.

So coming back to the question asked in the title of this post, the answer is BOTH. To guarantee satisfaction, your customers must feel that you really care about them, truly underst and their needs and that your offer also resonates with them emotionally. If you are successful in doing that, then your communications will be understood without any effort on their part. It will be so obvious to them and they will simply identify themselves with what is being shown. Furthermore, an emotionally charged ad is more likely to be shared with their friends on social media. An important additional benefit that is particularly appreciated today.

If you believe that your communications are not appropriately addressing your target customers’ needs AND desires, then please contact us. We have some great case studies from some well-known br ands that we can share to inspire and support your own improvements. You will also be excited by the unique methodology we use to underst and the meaning your customers take away from your ads.

This post is based on a much shorter one that was first published on C³Centricity in September 2011.

C³Centricity used images from Dreamstime and Microsoft in this post.

Halloween Scares & Solutions for Marketing

Halloween is coming, even earlier than usual this year, judging from all the retail displays already in the shops! Although it is now more associated with children dressing up in scary costumes and dem anding “Trick or Treat”,  it is actually a Christian remembrance of the dead on the eve of All Saints’ Day.

So what does that have to do with marketing? Apart from the obvious effort of many companies to include the pumpkin shape, flavour or aroma in almost every product they make, at least in the US, marketing too has its scary moments doesn’t it?

What scares you marketers the most, or to put it another way, what keeps you up at night? One of the most recent studies on the topic, issued a few months ago, comes from The Marketing Institute (MSI) and was summarised by David Aaker of Prophet as seven issues, which he divided into three tiers:

TIER ONE: The hot topics

  1. Underst anding customers and the customer experience with particular emphasis on the impact of social and digital.
  2. Big data and analytics, with how they will impact predictive modelling and the marketing mix.

TIER TWO: The other concerns

  1. Following on from the opportunities of Big Data, the next concern is Marketing Accountability and its ROI.
  2. Developing marketing excellence and the new skills required such as visualisation and storytelling.
  3. Leveraging digital/social/mobile technology and linking it to CRM
  4. Creating and communicating enduring customer value and how to measure it in the social environment.
  5. Developing and delivering integrated marketing

TIER THREE: Previous concerns getting under control

  1. Innovating products and services
  2. Global marketing
  3. Segmentation
  4. Optimizing social contracts

What I find interesting from this and similar studies that I wrote about last year, is the overlap between many of these challenges. Marketers are really concerned about the wealth of information that they have on their customers and how they can manage to turn it all into insights, for more profitable actions and engagement. I therefore thought it would be useful to summarise the “so whats” of all these current challenges and propose actions that will help marketers get these issues under control, so they can change their scares into solutions:

Underst anding the customer experience

SCARE: With the exciting new worlds of social and digital taking up much of the thoughts of marketers, they are struggling to find ways to think integration, but that is the only way to underst and today’s customers. 

SOLUTION: Starting from the customers’ perspective makes looking at the bigger picture much easier. Instead of thinking single channels of communication, think connection and engagement. (>>Tweet this<<). Instead of thinking purchase and loyalty, think advocacy. Creating value for the customer goes way beyond providing a product or service these days. (>>Tweet this<<)

Knowing what to do with data

SCARE: We have gone from an information rich environment to complete data overload. This challenge definitely keeps a lot of marketers up at night. They feel as if they have to use everything available but at the same time are also aware that they are incapable of doing so.

SOLUTION: The answer lies in the old “eating an elephant” solution. Rather than worrying about what is not being managed, marketers should review what they already have, and only then decide what else they could use to help answer all their questions. There is so much information available today that we can’t work with it all, but we can ask better questions that can be answered by analysing this data. Start with the right question and then use the data you have to answer it. (>>Tweet this<<)

Engaging customers

SCARE: Every br and has some sort of web presence today. Whether that is a website, Facebook page or Twitter account, most companies have rushed into social media without a detailed underst anding of why they are there. If this is your case, it’s time to take a step back.

SOLUTION: How are you connecting with your customers today, both offline and online? The two should be complementary. However if there is too much overlap and you are doing the same on both, then you are wasting your money. You are also wasting your money if you don’t know why you are online in the first place! (>>Tweet this<<)

I had a client once who wanted help in updating one of their websites. In running a first analysis of all their websites, I found that more than 80% of them were being visited by less than 30 visitors a month! We cancelled all those websites and invested the money in the remaining active ones, improving both their ROI and the engagement with their customers. Maybe it’s time to take a look at your own web statistics?

Marketing ROI

SCARE: Marketers are scared for their budgets and even more so for their jobs. With the rise in the importance of technology and IT, marketers need to move from br anding  and creativity alone, to embracing data and analytics much more than they have done in the past.

SOLUTIONBecome friends with your CIO and see IT as a support of rather than as a threat to your budgets. Yes managing new technologies and data analysis will need more investment, but that won’t (shouldn’t) come at the expense of br and building. In fact with the increased power of the customer and the number of channels on which to reach them, marketing needs increased budgets to be where and when the customer dem ands connection and information. (>>Tweet this<<)

Acquiring new skills

SCARE: As already mentioned, marketers must get comfortable with large amounts of different data. They also need better ways to analyse and make sense of it all, often in near real-time. This is a challenge in itself, but the new skills they have to acquire don’t stop there. They also need to turn their information into actionable insights and then share them with the rest of the business to gain acceptance and impact.

SOLUTION: Your market research and insight colleagues are the best people to help in making sense of the data and developing actionable insights. It will be the marketer’s job to share these with the rest of the business in a more creative way. Visualisation & storytelling are the new must-have skills for today. No longer can you expect PowerPoint presentations to excite and engage your C-suite executives – if they ever did!

These are five of the most pressing current scares of marketing and some simple solutions to address them. Are you challenged by something else? If so, add a comment below and I’ll help you find a solution. Or if you prefer, you can contact me here.

C3Centricity used an image from Microsoft in this post.

 

 

The Ultimate Guide to Developing Actionable Insights

One of the biggest challenges of many marketers is developing actionable insights about the market and it’s customers.

Are you satisfied with the way you turn your data and information into underst anding and then develop insights on which you can take clear actions? If not, then you will find this post tremendously useful in helping you to update your practices.

Even if you are happy with your insight development process, converting them into actions can still be a stumbling block. In January 2013 Forrester wrote an article suggesting that last year would be the year for market insights. Eighteen months on, things don’t seem to have progressed much, so hopefully this post will enable your own organisation to advance and to get ahead of the competition.

#1. Be precise in your objectives

Your objectives for developing an insight should be presented as a desired change in your target (>>Tweet this<<). For example, if you are looking to increase your market share, you could be looking to find a way to convince competitive br and purchasers to buy your br and instead.

Identifying the change you are looking to encourage is the first step to uncovering a true actionable insight. Are you identifying the change you desire in your customers? If not then this is something you should start doing; it will make developing actionable insights more focused and thus also easier.

#2. Involve a wide range of experts

Insights are not the sole responsibility of the Market Research & Insight Department (>>Tweet this<<). Everyone in the company can bring valuable information and underst anding to address the identified opportunity. Therefore, involving people with a wide range of perspectives can make insight development more effective.

Gather a team of experts to provide a 360° perspective of the category or br and, including for example:

  • R&D, who can bring underst anding of available internal & external technical skills
  • operations who can share current defects and development aspects
  • sales who can add retail perspectives, including distribution, packaging and shelving limitations or opportunities
  • marketing who will provide the communications, image, equity and competitive environment
  • customer services who can add current customer sensitivities, problems or suggestions
  • finance who can highlight any budgetary limitations and ensure financial goals are met

The group you bring together will be a function of the change you are looking to make. I personally believe that the exercise should be run by your market research and insights team, since it is their profession to underst and people and behaviour. They also generally have the widest and most detailed perspective of anyone in the company

#3. Review all available information & knowledge

All organisations have far more information than most employees realise (>>Tweet this<<), including your market research, insight, strategy and planning teams. This highlights the need for having a group of people from different departments since they will bring alternative perspectives and information sources to light.

Once the team has been formed and the objectives for the insight development exercise have been agreed, it is time to organise a complete review of all the available information and knowledge.  You should look for recurring themes, expressions and words across the different information sources that might provide indications of the issues or opportunities around the identified objectives.

As everyone completes the review of the information, a number of working sessions can help to share the information already found and start the process of getting closer to an insight. The actual insight development exercise will take place in another meeting once all available information has been assessed and any information gaps filled.

#4. Walk in your customers’ shoes

I am always disappointed that social media has further encouraged marketers to stay behind their desks instead of getting out and meeting their customers. Is this the case in your own organisation? Although you can certainly learn a lot about your customers’ opinions and needs online, it is only when you take their place that you get the chance to really see things from their perspective (>>Tweet this<<).

Walking in your customers’ shoes can be done in numerous ways and will depend upon the issue or opportunity you have identified, as well as the underst anding you have gained from reviewing all the information you have gathered. You could for instance:

  • go out shopping and purchase item as one of your target customers. This will help you underst and the decision making process of your target customers.
  • compare competitive offers online for a service you propose. Is your website as user-friendly as your competitors’? Have you thought of all the important elements you need to include?
  • call up the customer service departments of a number of your competitors and ask questions about their br and’s uses, reliability etc. Do your own staff provide the same information? Are they as knowledgeable, credible, empathetic?
  • role play your target customer in using your product and identify opportunities to improve for instance its packaging. If your product is used by mothers of toddlers, is it easy to open with one h and? If your product is used in certain dem anding surroundings, such as outdoors, in the car, in the country, at night, is it easy to open and consume in such situations?

Whilst walking in your customers’ shoes, you should be extremely sensitive to any pain points you uncover in considering, evaluating, shopping and using your br and. If you are looking to define a completely new offer, then it is the pain points of your competitors’ offers that you also need to consider. Taking your customers perspective, rather than just observing them, can provide a wealth of information you might not get in any other way.

#5. Fill the gaps

Having gathered as much information and knowledge about your customer as you can, including walking in their shoes, it is important to turn it all into underst anding. This also enables you to identify any information gaps there may be. Never do any market research until you have first identified all the information that is already available on the topic under review (>>Tweet this<<). These gaps can be filled by running a market research project or by acquiring the required information from other sources.

Before continuing with insight development, these new findings need to be summarised and integrated into the knowledge and information already reviewed. If the objectives of the project have been well defined, this should be relatively easy to do, as you had already clearly identified the need.

#6. Develop the insight

At this stage, you will certainly have a better underst anding of your customer in relation to the identified issue or opportunity than you have ever had before. Insight development needs input from every member of the multidisciplinary team (>>Tweet this<<), which can take anything from a few hours to several days. Don’t hurry this process; we are often too keen to get to the action and accept to work with something that is not a true insight.

You will know when you have an insight. When you summarise it in one (or maximum two) sentences phrased as if it were being spoken by your customer, it creates what is known as an “ah-ha” moment. This is when everyone sees it is obvious and wonders why no-one ever thought of it before! I am sure you will agree with me that it is a wonderfully rewarding feeling when you get there.

 

These are the six essential steps to developing true insight, but the most important step of all is still to come, that of actioning them. This is where the multi-disciplinary team really comes into its own. As all the team have agreed on the objectives and the insight, it is extremely easy for them to define the next steps that need to be taken. It also means that all areas of the organisation will work together to take the appropriate actions, rather than just the marketing department which may otherwise happen.

From my experience actioning insights is only a problem when not enough time has been spent at the beginning of the whole process, in underst anding the change in your customers that you are looking to encourage. If you have trouble with this part of the process, then I would suggest reviewing the completeness of the definition of your objectives.

What areas of insight development do you find the most challenging? Do you have any questions about generating or improving your own insight development process? If so, then please add a comment or question below. I would be happy to answer them for you.

For more information on insight development, please check out our website at: https://www.c3centricity.com/home/underst and/ as well as available trainings at: https://www.c3centricity.com/training- and-evaluation/

C³Centricity used images from Dreamstime and Kozzi in this post.

Award Winning Communications are Powered by Insight & Customer Understanding

This time last month, many marketing and communications professionals had just returned from Cannes, France, where they had attended the annual Lions Awards Festival. They are now back in their offices and have probably been comparing their own communications to this year’s winners and wondering what they can do to get one of these coveted prizes in the near future.

For the rest of us, we are also looking at the winners, but more for gathering learnings on how to make our own communications more creative and impactful, without any ambition of winning a Lions one day.

That is why I decided to review a selection of the anding/worlds-17-best-print-campaigns-2013-14-158466″ target=”_blank”>Press Lions Category  and analyse how they might appeal to their target customers. I found three dominant themes running through all the prize-winners, some of which even incorporated several of them in one single campaign. If you’d like to see all the winning ads from these campaigns they can be found in the AdWeek article linked above.

1. Simple & clear messaging

We are all in a hurry these days; we have far too much to do and so we no longer read with as much attention as we did in the past. Today we just skim headlines and articles, and quickly decide whether they’re worth digging into in more detail or whether to pass over to the next one. It is therefore essential that ads communicate their message in a way that is quick to read, underst and and capture. Examples of this from amongst the print winners:

Harvey Nichols – Gr and Prix Campaign

Harvey Nicols insight built communicationsThese are clean, simple ads showing nicely packaged but cheap seasonal gifts, because you decided to  #SpendItOnYourself, as the campaign is entitled. The eye is naturally drawn to the simple red words, since the articles themselves are white on a white background. The reader gets the message and immediately thinks whether they too could give such items, but then also reflect on why they don’t spend (more) on treating themselves. This feel-good reaction makes for good recall of the campaign as well as the positive image transfer to Harvey Nichols.

Zwilling J. A. Henckels – Gold Lion Campaign

Zwilling insight built communicationsRather than saying how sharp these high-end knives are, this is illustrated by the incredibly thin slices of different foods shown in the campaign. The thin slices are then overlapped to show the shape of the blade and the text below is kept in the form of the h andle. The artful design of the whole ad further complements the idea that these are special – definitely not cheap – knives, for connaisseurs only.

 

2. Emotional resonance

The UK was one of the first countries to use shock tactics in their road safety and other public service campaigns. Stimulating people’s emotions is guaranteed to get ads noticed and remembered, but it doesn’t all have to be negative.  Examples from amongst the winners:

Shanghai General Motors / Buick – Gold Lion Campaign

Buick ads built with insightThese ads show real people who have been injured in road accidents, holding up the signs that the drivers that hit them had ignored. The tagline “Signs are there for a reason” is clear and simple, and the images of the injured people emotionally impactful. The reader immediately thinks about occasions when they too have driven recklessly, but were lucky enough not to have injured anyone. The impact of the visuals remains long after the reader has turned the page.

Volkswagen – Gold Lion Campaign

Volkswagen communications built on insightA completely different and definitely light-hearted approach to travel is taken by Volkswagen in this winning campaign. They show how getting from one place to another can be fun in these playful, product-free ads. The visuals appeal as the viewer takes the extra few seconds to underst and it and then takes away the message that driving a Polo GTI is fun too.

 

3. Confirming intellectual superiority

In today’s overcrowded urban areas, people look for ways to differentiate and prove themselves, whether physically or intellectually. This is one of the reasons that gaming has become so popular in all age groups. Finding the hidden signs in an image or underst anding a play on words in an ad can increase the engagement, provided of course that they are neither too difficult nor too easy to solve. Examples from amongst the print winners:

Jeep – Gold Lion Campaign

Jeep communications built on insightsThis campaign includes ads that are both a play on words and images, doubly clever. Jeep shows images of animals which, when inverted became different animals or birds. The tag line “See whatever you want to see” refers to both this as well as to the advantage of the Jeep to place the driver higher up, with better visibility.

Penguin Group China – Gold Lion Campaign

Penguin communications built on insightAt first you might find these Penguin ads rather crowded and confusing, and therefore you don’t immediately “get” the joke – I admit it took me a few seconds!. But look carefully and you will see penguins holding microphone booms in otherwise classical illustrations of well-known literature. The ads are for Penguin’s new audiobooks and are a clever and amusing way to communicate the novelty.

To sum up my findings from this quick analysis, the winners have three points in common:

      • Their messages are clear and simple to underst and
      • They connect emotionally with their audience
      • They offer the viewer something in return for their looking at it

All these ads clearly demonstrate that working with customer underst anding and insight increases the likelihood that your communications will resonate with your target customers. Now we need to wait until next year to see how well these ads perform in impacting the sales and images of the br ands. Which of these will be the real winners of Cannes? I would love to hear what you think.

If you would like in improving your own communications, or in underst anding and engaging with your customers, whether using traditional or new media, then why not give us a call? Let us catalyze your own communications with some of our unique tools; contact us here.

C³Centricity uses images from Forbes  and AdWeek in this post.

How Well do you Know your Customers? Can you Answer these 12 Questions?

How well do you know your target customers? I mean really know them? Are they men, women, young, old, Fortune 100 companies, local businesses? If you can at least answer that, then you have the basics, but how much more could you know about them? Can you answer the following twelve questions?

I was recently working with a local service company who was looking for help with their online presence. They were keen to get more active on social media and had asked for advice about the best platforms, optimal frequency of publishing and possible content ideas.

C3Centricity how well you know your customers

However they were in for a surprise. Rather than getting straight onto the “sexy” topic of social media, I started by taking them through the basics of target customer identification. Lucky for them that I did! When we had finished the exercise, we had found five different targets for them to target, rather than the mere two they had been addressing until now. This clearly would have a huge impact on the where, what and how they communicated online.

These are the twelve questions that enabled us to brainstorm, identify and then complete a better and more complete description of their target customers. Their use also resulted in clear differentiated segments for their services – three more than they had originally thought!

How would you like to double your own market potential? Read on:

  1. WHO DEMOGRAPHICS: OK this is usually a “no-brainer” and is how most organisations describe their customers. Not really original and definitely not competitive, but still the essential foundation.
  2. WHAT THEY USE: Whether you are offering a product or service, you need to know what your customers are using today. And not only for your category, but in adjacent categories too. What do they use – if anything – if your product / category is not available?
  3. WHAT THEY CONSUME: Here we need to underst and what types of information and media they are consuming; what do they read, watch, listen to in their spare time. Which social media do they use, what websites do they consult on a regular basis?
  4. WHAT THEY DO: How do your customers spend their time? What type of lifestyle do they have? What are their hobbies? What do they do all day, and in the evening and at weekends?
  5. WHAT THEY BUY: This is where you describe their current category purchasing habits. How frequently and what quantity do they buy? Do they have regular buying habits? Do they do research before buying or repurchasing? Do they compare and if so how, where, why?
  6. WHERE THEY USE: Is the category consumed in home, in work, on vacation? With friends, with their partner, their children, with colleagues? Are there certain surroundings more conducive to consumption? What makes it so?
  7. WHERE THEY BUY: Do your target customers have certain places and times they buy? Is it an habitual or impulse purchase? Is it seasonal?
  8. WHERE THEY CONSUME: Today “consume” covers not just traditional media but new media as well. From where do they get information about products? From manufacturers, friends, family, colleagues? Do they access it online, in print, on radio or TV, at home or on the road? What websites and people do they follow, listen to and value the opinion of? What interests do they have in general and concerning the category?
  9. WHERE THEY SEE: One reason to target a specific group of customers is so that you can better communicate with them. Where are they most likely to be open to your messages; what media, what times, which days?
  10. WHY VALUES: What values do your customers have that you are meeting with your product or service, and explain why they are using it? Do they have other values that are not currently addressed, either by you or your competitors? Do these values offer the possibility of a differentiated communications platform or product / service concept?
  11. WHY EMOTIONS: What is the emotional state of your customers when they are considering a purchase or use, both of the category and the br and? Clearly identified emotions enable you to more easily resonate with your customers through empathising with their current situation. You are more likely to propose a solution that will satisfy their need or desire when their emotional state is precisely identified.
  12. WHY MOTIVATIONS: What motivates the customer to consider, buy and use their category and br and choice? Emotions and motivations are closely linked both to each other and to the customer’s need state. By identifying the need-state you want to address, you will be better able to underst and your customers and increase the resonance of your communications.

If you can answer all twelve of these questions in detail, then you certainly know your customers intimately. But before you sit back and relax on your laurels, remember that people are constantly changing and what satisfies them today, is unlikely to satisfy them tomorrow. Therefore you need to keep a track on all four layers of your customer description to stay ahead of competition, as well as to satisfy and hopefully delight your customers.

As mentioned above, by answering and completing a detailed description of the target audience for my client, we were able to identify a couple of new segments that my client’s services could address. Although their demographics were similar, their emotional and need states were quite different. This gave us the opportunity to respond with slightly different service offers for each group.

If you would like to try out this exercise for yourself, we have some useful templates that we make available to C³C Members. Why not sign up and get access? It’s FREE to join.

For more information on better identifying and understanding target customers, please check out our website: https://www.c3centricity.com/

C³Centricity used images from Dreamstime and Microsoft in this post.

This post has been adapted from one which first appeared on C³Centricity in April 2013.

Which of these 10 Customer Centricity Steps are you Missing?

Last Saturday was the start of Summer in the Northern hemisphere and the weather certainly confirms this, at least for now! Summer is a great time to reflect on the progress we have made to date on our journey to Customer Centricity.

Organisations need to take a step back occasionally and review how their plans are going. What changes do they need to make to ensure they meet their objectives over the remaining six months of the year? So here are my ten ways to tell if you are well on your way to becoming truly customer centric – and what actions you can take to get further along your journey.

#1. Identify the category in which you are competing

This may sound strange to you, but many br ands are not competing in the category in which they first thought they were. Think soup which is now a meal replacement, or laptops which are now entertainment platforms.

Action: Review how your product or service fits into the customers’ daily life and how they compare and decide between options. This will help you identify your real competitors and the actual category in which you are competing.

#2. Underst and your primary target

Knowing precisely who the customer is for each of your br ands is the first essential step to satisfying them. Use the BCG Matrix to help select the best group. Do you already work with this matrix, or do you have a better system? Please share your own best practice below, so I can learn.

Boston Matrix for improved customer centricity  and segmentation evaluationAction: Review the target audience for each of your br ands and ensure you have information on their “4Ws”. In other words the Who, What, Where and Why: demographics, purchase, usage, media use, places of purchase, consumption, connections to communications, their values, usage motivations and emotions when doing so. If you would like to learn more about targeting, check out this post.

#3. Watch and listen to your customers

Personal experience of your customers is essential to putting them at the heart of your business.

Action: Ensure everyone has regular – ideally monthly – contact with the customer. This can be by listening in at the call centre, watching market research interviews & discussions, or observing customers as they shop and use your product / service.

#4. Know what current trends could mean for your business

Many organisations follow trends, but they don’t provide any competitive advantage. It’s time you started turning them into future scenarios or use future prototyping. (Contact us here to learn more about this)

Action: Identify the most relevant trends for your br and and then project them into the future to develop two axes of uncertainty and four plausible future worlds. These will help prepare the business for future opportunities and challenges. Alternatively, why not try Sci-Fi Future Prototyping? (Contact us here for more information)

#5. Reinvent your innovation

Most organisations innovate based upon their current knowledge or technical skills. This keeps them boxed into a narrow b and of categories.

Action: Take your NPD thinking outside its box, by making use of all relevant innovation levers, including, but not limited to, packaging, channels, sourcing, communications, br anding, services. Check last week’s post for more details about innovation.

#6. Follow your image

It is amazing how many companies don’t follow their br and images on a regular basis. Image trends are a great way to be alerted to possible sales issues before they appear in the numbers.

Action: Identify the major image attributes of both your own and competitor br ands, and measure them regularly (annually for fast moving categories, every two to three years for slower moving ones).

#7. Turn your information into insight

Whilst information and knowledge are essential to gather, it is only when they are turned into underst anding and insight that they become truly customer centric.

Action: Review your insight development process and ensure decisions about customer satisfaction are based on them and not just on information. Insights ensure your communications resonate with your customers and your product / service delights and sometime surprises them.

#8. Share your information and insights

Companies spend a lot of money gathering data and information about the market and customers. However, in most cases they spend far too much money, because the information that is needed is actually already available somewhere in the company.

Action: Review your organisation’s information needs and negotiate contracts and access company-wide rather than by department. Make your information and insights available to everyone in the company through a library or database with appropriately managed access rights.

#9. Evaluate your progress

As the infamous quote from Peter Drucker says:

“What gets measured gets managed” (>>Tweet this<<)

Besides br and image, are you following other KPIs to measure your progress on your journey to customer centricity?

Action: Identify the three to five most important areas you want to improve and then measure them consistently. If the numbers aren’t trending up, act – see #10. below. The actual metrics you follow will depend upon your industry, but may include market comparison (shares), availability (distribution or out-of-stock) communications impact, competitivity, value.

#10. Plan for action

Once you have identified the KPIs to follow, you need to take action to improve those that are trending downwards and perhaps also those which are stable.

Action: Since your KPIs are the most important metrics for your business, plan actions as soon as their trend changes and don’t wait for them to start declining. Once they are, it will be much more difficult to reverse.

These ten steps should ensure your organisation remains focussed on the customer and doesn’t get lost in the day-to-day issues of the business. After all, as I have been quoted many times for saying:

“There may be customers without br ands, but there are no br ands without customers”  (>>Tweet this<<)

Think about it; do you have the right priorities? How do you know? Have I missed an essential step off of my list above? If so, let me know. Please also share which of your actions towards customer centricity you are struggling with the most. Together we’ll find a solution.

If you would like to know how customer centric your organisation really is, then why not complete the C³C Evaluator? Check it out on our website: https://www.c3centricity.com/C3Cmembers

Need help on your journey to customer centricity? Let us help you catalyze your business; contact us here.

C³Centricity uses images from Dreamstime.com and Kozzi.com

This post is based on one that was first published on C³Centricity in July 2013

How to get R&D as Excited about Consumer Innovation as you are

Did you do a double-take when you read this post’s title? I bet you did. R&D is at the heart of innovation for most major manufacturers, so they should be excited by consumer underst anding, shouldn’t they? You would think so, but in reality, their concepts are almost always based on the company’s current technical know-how and skills. If you want to break away from this very predictable process and get them excited so they add some “oomph” to your innovations, then read on.

One of my most loyal CPG clients contacted me recently about the latest problem (opportunity?) he has been asked to address: making R&D more consumer centric. Having faced a similar challenge in one of my previous jobs, I immediately empathised with him. It can really be a daunting task, especially when speaking to people who are usually more interested in numbers than emotions.

I remember speaking about consumer centricity at an annual R&D conference and in the discussion session that followed, the Head of Operations commented “You know Denyse, our R&D group is very consumer centric; we know exactly what consumers need. It’s marketing who don’t know how to explain to consumers why they need what we develop!”

Trying to keep a straight face, I thanked him for his comment and also for having just proven my point. I said that I believed it was time for R&D to become more consumer centric by developing a better underst anding of consumers and their needs. I then went on to suggest some ways they could get closer to current or potential consumers. By the end of my talk I had a queue of volunteers wanting me to organise some of the suggested actions for them. Here’s what I shared:

Observe & Listen to your Consumers

Most people working in a company and certainly those working in R&D, know far more about the category than the average consumer. However, most employees – excluding hopefully the insight team – don’t know what their consumers really think about their products and services.

Observation of consumers as they go about their daily lives, helps us to identify pain points, whilst also stimulating new thinking and concepts. Listening to their complaints and ideas, whether online, through carelines or during a market research project, can provide the consumer perspective and input for new or better solutions.

It’s time for R&D to get out of the factory and into the shops & homes of consumers (>>Tweet this<<)

Involve your Consumers

Ben  and Jerry are great at innovationLast year Ben & Jerry asked residents of five cities in the USA to vote for the names of new ice cream flavors that reflected their locales. The br and’s Scoop Truck toured 11 cities and also served as one of the campaigns’ voting platforms. Once consumers had eaten their free frozen treats, they were asked to use their spoons as “ballots” (they voted by depositing their spoons in one of several recycling boxes marked with various ingredient names). Doesn’t that remind you of another br and which used a similar voting tactic when it was starting out – Innocent?

Great br ands and companies have no problem “stealing with pride” and recognise good ideas when they see them (>>Tweet this<<)

Ben & Jerry’s are by no means the only br and to involve their customers in developing or choosing new products and services. Nespresso have been collaborating with their Club members for years on many aspects of their marketing. Whether choosing the end of their commercials or identifying the next new blend to be launched, Nespresso Club members are made to feel important and privileged.

Involving customers in the development of new product and/or service concepts not only makes them feel valued, it also makes them more loyal and valuable advocates of your br ands too (>>Tweet this<<)

Exp and your Thinking

Innovation leversHow do you come up with ideas and concepts for new products and services today? If you are like most companies, they probably come in a majority from your current portfolio of br ands. Whilst this can meet with a certain level of success, as it is what customers expect, or rather dem and, there is another process that can drive even greater success. This is the use of what are often called innovation levers, or what others refer to as “the s and box”. I love the latter term as it suggests light-hearted play, which is an effective way to get people thinking “outside the box”.

Innovation levers enable thinking to “push the envelope” and to exp and outside the box in which R&D and marketing can sometimes find themselves. Rather than thinking about the next flavour or packaging idea, why not consider a new channel or communications strategy?

Coca Cola takes br and innovation seriouslyLast year, Coke used two of these levers, but combined them, when it launched its “sharing can”. Not only can the can be split in two for sharing, it also enables new potential consumers to consider buying a can, such as those with smaller thirsts or those traveling.

This year they took this winning idea a step further and launched the bottle that could only be opened by another Coke bottle – another way of sharing.

Starting from a different innovation lever than the one you usually use can result in more creative NPD concepts (>>Tweet this<<)

Go Beyond Trend Following

Another challenge when looking to make R&D more customer centric, is in moving them from trend following to scenario planning. R&D people often seem to be more comfortable with trends and “poo poo” future scenarios as improbable forecasts. It is therefore important to explain to them that scenario planning is not forecasting. If they can allow themselves to be open to listening to a story, which exposes imaginary but plausible new worlds to them, they can become inspired by the opportunities.

The innovative ideas that are created from scenario planning, have in my experience been amongst the most ground-breaking ever developed. Isn’t that exactly what we would all like to market, rather than the staple diet of predictable renovations?

These are just four ideas that I shared during that conference a few years ago, to stimulate and excite the R&D department. Hopefully they have inspired you too to have a go at convincing your own operations people to get closer to the customer.

Have you other examples of how you got your own R&D people to think outside their technical box? Then I’d love to hear about them, so please share your thoughts and ideas below.

Need help in taking your innovation outside its box, or in connecting with your customers? Let’s discuss how we can help you catalyze your customer centricity; contact us today.

C³Centricity used images from Microsoft, Ben &Jerry’s and Coke in this post.

This post has been adapted from one first published on C³Centricity in June 2013

New Thinking for Old Ways of Business

I’ve just come back from IIeX-EU (Insight Innovation Exchange – Europe) in Amsterdam, and my head is full of exciting new things to experiment. It’s strange what happens to our brains when we have the chance to get away from the office and THINK! We become more creative, less bound by old habits, and ready to try new experiences.

After these few days away, I am fired with enthusiasm to bring real changes to my own business, those of my clients, as well as to yours through this post. I’d like to share a few of the ideas which were stimulated by some of the best presentations I’ve ever seen grouped into one single conference. Read on for four inspirational ideas for you to implement immediately, to bring new thinking into your own business.

Partner for Growth

Lowes logo eOne of the first speakers at the event was Kyle Nel from Lowe’s, an American home improvement chain. He explained that business is about changing customers’ behaviour and to do this we need to constantly update our methods for underst anding them. Lowe’s finds inspiration in partnering with organisations including Coke, UNICEF and NASA; how’s that for thinking outside the box? By connecting with companies in other industries, their thinking is constantly challenged, which enables them to grow exponentially, rather than in the linear fashion that most of us seem to be satisfied with. Kyle shared how Lowe’s accepts that whilst there may often be disappointments, the one in ten new ideas that truly deliver are worth all their efforts.

NEW THINKING: Find a catalyst for your own growth to bring you new ideas from external sources. Also look outside your industry for inspiration, and partner with a select few industry leaders that are trying new, exceptionally creative things (Like Loew’s!)

Know what you Know

Information & knowledge sharing is essentialGregory Short, author of “The Billion Dollar Paperclip”, suggested that it’s time we took a new look at our business and the eco-system in which it is operating. Amongst the list of things mentioned, he included identifying what you already know. This resonated with me because so often when new clients ask for help, they often already have a lot of the information they are seeking, they just didn’t know they had it!

Haiko van Lengen and Sjoerd Koornstra shared a Heineken case study which covered a similar point on knowledge sharing. They mentioned the 2009 Boston Consulting Group Insight Benchmarking study which showed that most companies are not using the majority of the information they gather.

Haiko and Sjoerd suggested that before doing any sort of information gathering, we should first assess what is already available internally on the topic. This review should include talking to all departments and definitely not just market research. You would be surprised how many companies operate in silos, each buying their own reports and information, and too often without the knowledge of their market research and insight department.

NEW THINKING: Find a way of sharing more information across your organisation, by setting up an easily accessible storage system. This could be as simple as a shared folder or as proprietary as a knowledge management system and library.

Don’t be Scared of Emotions

Plutchik's wheel of emotionsDiana Lucaci at True Impact Marketing, spoke about the surprising habit many marketers have of being satisfied with knowing just the “Who” and the “What” of their customers’ behaviours. She pointed out that it is even more important to underst and the “Why” of customer actions in order to impact them.

With the rapid expansion in the use of neuroscience and biometric measurement in market research, we now have the possibility to underst and a lot about our customers without even directly asking. Perhaps it’s time for you to experiment (again?). Let me know if you’re interested in trying out the leading emotional measurement tool around.

Diana also made a throw-away comment at the end of her presentation that was also later picked up by Daryl Travis during his talk on “Why emotions win the battle of the br ands”. It reminds us that there are simple things we can do that can have an incredibly positive impact on our customers’ loyalty:

“Make sure that checkout, or the last action your customer makes, is a memorable and positive experience” (>>Tweet this quote<<)

Daryl also ended his presentation with another well chosen, inspiring quote from Maya Angelou, the American author and poet:

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel” (>>Tweet this quote<<)

NEW THINKING: Review your own customer journey maps, but this time as an emotional journey and ensure that the last step is a positive experience – or urgently correct it if it isn’t!

Customers only Care about the Benefit

Benefits are what interest customersThis links to the previous comment on emotions. Michael Bartl from Hyve, mentioned that your customers don’t really care about who or how you solve their problems, only that you have a solution. Whilst this is probably correct in general, I believe there are some customers who do care and you need to know who they are. Concerns about sustainability, sourcing and ecological impact can all be relevant for some industries and br ands, so you need to check whether they are to your customers or a segment of them.

NEW THINKING: Review your advertising and see if you too spend most time speaking about rational product or service elements and less about the customer benefits. If it’s the case, make the swap to a more benefits-driven communications and measure the impact.

These are just four of the tens of pages of ideas I wrote, that were stimulated by presentations I followed during the IIEX-EU conference in Amsterdam last week. I hope they inspired your own thinking and interest in trying out some new things in your own marketing and market research. Let me know if you have any questions or comments, or if you’d be interested in getting some help in catalysing change in your own organisation.

C³Centricity uses images from Dreamstime and  Kozzi

FREE DOWNLOAD “Innovation Secrets Ebook”

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

* indicates required