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5 Business Success Factors (So You’re Ready for Anything!)

We are sweltering in the Northern Hemisphere with record temperatures, so here’s a “cool” idea on how businesses can get ready for anything by applying these success factors.

Every winter, the media is full of stories of record snowfalls somewhere in the world, whether in the US, Europe or in the Far East. Despite all the sophisticated technologies at our disposition, we just never seem to be prepared. So what are the success factors of readiness?

Remember winter storm Juno in the USA in 2015? It dropped a couple of feet of snow on the Eastern coastline of North America. According to the Weather Channel its snowfall broke records in Worcester, MA, although in most other places it fell far below that of other storms from 2013 all the way back to 1978.

In the same year, in the North of the UK, the region was battered with a rare blast of thundersnow – an unnerving combination of thunderstorms and downpours of snow. As if that wasn’t enough, they were soon preparing to do battle with the elements with yet another storm shortly afterwards.

Now what do all these storms have to do with business you might wonder? Well for me they are a great illustration of the problems that many companies can face from time to time. Governments and city maintenance teams prepare for winter by organising vast stocks of grit and salt, as well as heavy snow-clearing machinery. But despite all this preparation, they still seem to be caught off-guard when they need to use them.

The same goes for businesses. Companies follow trends and expect to be ready for anything; they’re not!

Companies follow trends and expect to be ready for anything; they're not! #trends #scenarios #BusinessPlanning Click To Tweet

The reason is that there are two serious problems with that way of thinking:

Firstly they are all following the same trends, attending the same trend “shows” & conferences, and getting the same or at least very similar trend reports.

And secondly, they think that knowing the trends will somehow protect them from future risks and catastrophes. However, having the right material still doesn’t stop bad things happening, as we’ve seen this winter. 

So let’s take a look at what you can do to be better prepared and not get regularly “snowed-in” as many countries are this winter.

The Problem with Trend following alone

As I already mentioned, trend following suppliers are providing almost identical information to all their clients. This results in their clients then working on the same ideas & concepts and eventually launching very similar, non-competitive products and services. Have you never wondered why suddenly everyone is talking about a certain topic, or using similar slogans in their advertising? Simplistic trend following is probably the reason. 

Have you never wondered why suddenly everyone is talking about a certain topic, or using similar slogans in their ads? Simplistic trend following is probably the reason. #trends #Scenarios #BusinessPlanning Click To Tweet

As an example, think about how many companies have used the idea of “YES” and “NO” in their advertising in the past couple of years. These include:

  • The Swiss Migros Bank: see the videos here – sorry only in French & German but still easy to understand
  • BMW 320i YES, YOU, CAN
  • Orange telecom mobile exchange

Clearly the current trends of independence and freedom have been emphasised in all three organisations mentioned above, and probably many others as well. Perhaps they are working with the same trend following company or advertising agency, or are buying the same external trend reports? Whatever the reason, their advertising is likely to lead to consumer confusion and I myself would be interested to see which one gains from the strongest association with the exact same advertising “Big Idea”.

Companies which develop concepts based upon theses types of external resources alone, can find themselves in a race to be the first to market when using the ideas that are proposed to them. Incidentally, it is not always best to be the first when introducing new concepts to consumers, especially when they require a period of learning new ways of thinking or working for the consumers.

The vital step that many – dare I say most – organisations forget to take, is to turn the trends they are following into future scenarios.

The vital step that many – dare I say most – organisations forget to take, is to turn the trends they are following into future scenarios. #trends #Scenarios #BusinessPlanning Click To TweetScenario planning not only ensures original thinking and ideas, but also takes the development of new concepts in-house, where it belongs. Then, the new product and service Big Ideas, the new advertising campaigns, the new promotions are unlikely to be the same as those developed by the competition.

 

How to turn Trends into Future Scenarios

Businesses working with progressed trends have generally established their own process for turning trends into future scenarios. They often follow a similar pattern to the one summarised below. In just ten simple steps you can turn your trend following into a powerful competitive advantage that will surprise competition and delight your customers.

  1. Recruit a diverse team of internal experts from different areas, levels, and cultures from within the company.
  2. Identify the major questions management is asking about their future business.
  3. Identify the most important trends for the category, br and or area under review; ensure these include STEEP ones (social, technological, economic, environmental, political).
  4. Extend each trend into the distant future, five to ten years at least.
  5. Collide the resultant developed trends to produce the most likely changes.
  6. Note the major forces that come into play as a result of these changes – this is what is important.
  7. Agree the two most critical forces and using them as axes, create the four future worlds, the scenarios.
  8. Identify either the most likely of the four and fully develop this world, or summarise the four worlds and their major similarities and differences.
  9. Develop stories to transmit the impact on the business should each (part of the) scenario happen and the decisions that management must face now to be prepared.
  10. Plan how markets will identify the most likely scenario for them and follow the relevant trends in order to be best prepared.

 

This ten-step process can be followed over a minimum of a two or three-day workshop, or over a longer period of development lasting several months. For a more detailed 10-step process, you might like to also check out a previous post on the same topic: “The Great Trends Hoax: The don’t give business a competitive advantage”.

 

Success factors

Following the above ten-step process will ensure you make the right review and involve a diverse group of people to get the needed differing perspectives.

However, from my own personal experience, there are a number of additional success factors that need to be met in order to guarantee the most actionable scenario planning exercises. These include:

  • A diverse internal team who are both enthusiastic and curious about future changes within their organisation, category or business area.
  • An excellent creative to lead the process, ideally from outside the company, in order to push far beyond the internal comfort zone.
  • Executive management support of the exercise as well as of  its outcome and most importantly their pre-agreement to own the resulting scenarios.
  • Being able to turn the scenarios into compelling narratives and using story-telling to ignite change within the whole organisation.
  • Sufficient resources to share the scenarios with all markets and to engage their commitment for the continued measurement of the trends in their own businesses, as well as the sharing of their learnings with other markets on a regular basis.

Following the process as summarised above and including all five success factors mentioned, will give you the best chance of building plausible future scenarios that get actioned by your business. If you have never done the exercise before, it may seem daunting at first. Therefore it makes sense to ensure you have an experienced external guide to support you throughout the process.

These are some first thoughts on the importance of scenario planning and how to get started in it, based upon my own experience working for some of the major Fortune 500 companies. I would love to hear your own thoughts on the best way to get a company to move from trend following alone, to the more promising process of future scenario planning. Don’t limit your competitivity by only following trends. 

Don’t limit your competitivity by only following trends. Gain the advantage of future scenarios. #trends #Scenarios #Business Click To Tweet

 


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This post is based upon one which first appeared on C³Centricity in October 2015 under the title “Turning Trends into Future Scenarios and the 10-Step Process you Need

Technology is an Enabler not a Disruptor (So Stop Using it as an Excuse!)

I was giving a talk earlier this month in which I mentioned that technology is an enabler not a disruptor of business today.

It was to the BPW Lake-Geneva (Business & Professional Women) group in Rolle, Switzerland, which was a first for me. Not because I was speaking about customer centricity as a disruptor, but because it was an all-female group. (They even turned away one gentleman who was interested in hearing me speak about adopting a customer-first strategy!)

Anyway, my talk was about identifying the category in which you are working, the benefit you provide>and the audience to whom you are offering it. These are the first three steps of my CatSight™ Process for actionable insight development. (If you would like to know more about it sign up for our free webinar)

During the presentation at BPW I talked about the fact that technology is seen as the disruptor in business today, but it isn’t. Technology is an enabler; it is in fact customer-centricity that is the disruptor today.

Technology as enabler, not disruptor
Source: Marco Pacheco
Executive Director JP Morgan

It was 

I had already been speaking about the need for businesses to prepare for the dramatic change that was coming thanks to technological innovation. However, Pacheco’s slide made me realise why I was so keen on companies adopting a customer-first strategy and running scenario planning.

His five simple examples brought it home more powerfully than I have ever done before. That’s why I wanted to share it. The summary says:

  • Netflix did not kill Blockbuster, ridiculous late fees did.
  • Uber did not kill the taxi business, limited taxi access and fare control did.
  • Apple did not kill the music industry, being forced to buy full-length albums did.
  • Amazon did not kill other retailers, bad customer service did.
  • Airbnb isn’t killing the hotel industry, limited availability and pricing options are.

In conclusion it states that:

“Technology by itself is not the real disruptor. Not being customer-centric is the biggest threat to any business.”

That’s music to my ears!

Looking again at the five examples he gives, there are a number of specific aspects of customer-centricity that are highlighted. In my opinion they show the following advantages for the customer:

  • freedom of choice
  • transparency
  • trust
  • being valued

If you don’t want to see your own industry fall victim to start-ups that better provide these, then now is the time to act.

If you don't want to see your own industry fall victim to start-ups that better provide these, then now is the time to act. #startups #Business #Technology Click To Tweet

Include all these essential elements into your own business. In my opinion they should already be there and industries where they are not, are already being threatened. Make sure you’re not on the new list next year!

 

The Future of Many Industries is Unthinkable

By this I mean that change is happening so fast that it is difficult for organisations to even imagine the future. This is why I encourage my clients to develop plausible future scenarios. Only by doing so, can they be prepared for every possible risk and opportunity. Identifying one, most likely future is unlikely to deliver the variation than will no doubt happen. For more on this topic, read ”

As I mentioned at the beginning, technology is an enabler that permits industries to provide more of what their customers want. There are already many examples of ones which have been helped or radically altered by technology and science. For example:

  • Verizon data revenueTelecoms now make as much money from selling (geo-localisation) data than they ever did from selling phones and lines.

Already in 2015 data accounted for 44% of Verizon’s profits, as shown in this Adage article.

Don’t you think their business model has changed – dramatically? Are they happy they made the change? You bet; it is growing faster and more profitably than ever before!

 

  • Food companies are shifting from machine-made to do-it-yourself meal-kits. In fact, to be precise, the industry is being ever-more disrupted by start-ups offering replacements to the mass-produced, less-than-healthy products that Nestle, Mondelez, Kraft Heinz and Danone have been used to churning out.

Companies like Blue ApronGreen ChefHelloFreshMartha & Marley SpoonPlated, and Sun Basket are offering healthier and fresher alternatives.

The largest food manufacturers are trying to compete by lowering “bad” ingredients and increasing “good” ingredients in their mass-produced brands. However, take a look at what they are doing in detail >and you will see that in most cases their “improved” products are not better for us. They still have far too much sugar, salt and trans fats, despite being reduced. They still lack fresh ingredients, which we all know are far better for nourishing a live body.

 

  • Beverage manufacturers are getting into entertainment in a big way. They have always sponsored or promoted events, bars and cafes. Coca-Cola is probably the best known for this with sponsorships including American Idol, Apple iTunes, BET Network, NASCAR, NBA, NCAA, and the Olympic Games.

But some drinks manufacturers are going much further and have now started including media development too. As a great example, think about Red Bull which today is seen more as an entertainment company that just happens to make a drink!

 

  • Tobacco and cigarette manufacturers have been fighting to protect, even save, their industry for decades. Andre Calantzopoulos, CEO of Philip Morris International, recently declared in a Radio 4 interview that

“I believe there will come a moment in time where I would say we have sufficient adoption of these alternative products … to start envisaging, together with governments, a phase-out period for cigarettes.”

Coming from one of the largest global cigarette manufacturers, this is huge! But he is (hopefully) right. The future of the tobacco business is in heating rather than burning it, at least short term. Longer term I believe they need to look to other ways of providing personal pleasure that does less harm to the user and to their environment.

 

  • Pharmaceuticals have for years been moving investment from sickness to wellness and health. An excellent article on the topic mentions that

“The transition from current ‘high-risk, high-margin’ business model to ‘low cost high volume’ nutria business model is dependent on many factors and also advised to move into less regulated markets like animal and consumer health.”

The line between Food and Pharma is blurring as companies expand and invest in the “other side” of nutraceuticals.

The line between Food & Pharma is blurring as companies expand & invest into nutraceuticals. Click To Tweet

Which will win out in the long run? Your guess is as good as mine, but I’d love to hear your thoughts in the comments below.

 

  • Transport. Will there even be a viable automobile business in the future? How many manufacturers will survive as the market for personalised road transport collapses?

As people move from ownership to rental, and from self-drive to driven, the industry will need to move into alternative modes of transport to make up the shortfall in their businesses. What do you think?

 

Harnessing technology to enable companies to adopt a customer-first strategy

A 2016 Forrester report shows that while 72% of businesses say improving customer experience is their top priority, only 63% of marketers prioritize implementing technology investments that will help them reach this goal!

It therefore makes sense that I include in this post some of the best examples I have found to start you thinking about your own situation.

How are you harnessing technology to provide your customers with greater freedom of choice, trust, transparency and the demonstration that you value their business and loyalty? Here are some inspiring examples and ideas:

  • Amazon uses technology to identify suggested products to their clients. Many others have followed this great example and we are now bombarded with “people like you also bought…” proposals. Like it or loath it, they do come in useful occasionally, don’t they? It also shows that the company is using your data for your good and not theirs (alone).
  • Your websites can provide your customers with a wealth of information. It can also provide a platform for them to share their tips, ideas and associated facts which would be useful to other users, as well as ask questions. Petcare, Personal Care and Homecare br>ands make use of this in particular. Check out P&G and Mars Petcare for a couple of the best.
  • Insight development today uses more than information from market research. Therefore technology is used to enable quicker and deeper integration and analysis of all the information flowing into an organisation. Machine learning adds further value by understanding the relationships between the data which may have previously gone unnoticed. Many of the global CPG companies are going this, including Unilever and Coca-Cola.
  • Social Media has become the new customer services department because replies are almost instantaneous.  Pizza Hut is a great example of this, answering any customer complaints in record time. Other brands react more slowly and then feel the wrath of their customers who are today expecting immediate answers to their questions. Make sure that’s what you offer!
  • Chatbots are providing additional resources to the already overworked customer services departments. Findings from recent research in the UK show that many high street brands offering live chat and chatbot technology consistently performed better in customer sentiment analysis.

These are all examples of ways that are already being used so you can benefit from the experiences of others. But the world is moving fast and you need to also be exploring further new territories where technology can help.

Earlier this year ZDNet highlighted five technologies that touched on technological changes that could impact customer service and experience by the year 2021. They were:

1. Two-way video

Tech priorities for customer experience

2. Augmented and virtual reality

3. Virtual assistants

4. Messaging

5. Connected devices

As you can see, all five technologies are enablers of improved customer satisfaction, which will lead to increased relationship building and trust. Customers view them as novel and useful today, but it won’t be too long before they are seen as the norm. Are you using them? If so, what experiences have you had, as I’d love to hear more about their uses?

Another recent article, this time on Jacada, spoke about the “4 Technology Trends set to Improve Customer Experience in 2017.” (See their diagram on the right) In it they highlighted ChatBots, Big Data analytics, Mobile customer support and messaging Apps.

In this article they pulled out the larger areas around how technology can help with mass connection and analysis of the resulting exchanges.

What both these articles highlight is the need for marketing to harness technology in order to build relationships with their customers. If they do so, they can set their brands apart from the competition. If you are not already doing so, then you have little time remaining to catch up before being left seriously behind.

It conclusion, it is clear that technology is an enabler and can and should be employed to improve the customers’ experience. We live in a fast-paced world where we expect instantaneous responses from brands, and information at our fingertips where and when we need it. Technology is the only way we can meet these increased customer demands, by collecting, analysing and then actioning the learnings from these contacts. 

Which of these are you working with today? I’d love you to share your experiences – good and bad – below.


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Interested in using technology to help you integrate multiple data sources and develop actionable insights? Then we should talk. Book time in my calendar for a complementary Advisory session.

Market Research, Business Intelligence & Big Data: Have we Forgotten about Human Data?

The annual pilgrimage to the ESOMAR Conference took place last week in Dublin. I heard that there was much discussion, both on and off the stage, about Big Data and the future of market research. Hopefully, the whole profession will get behind one initiative, instead of each individually trying to “solve world peace” on their own!

This week sees the second Swiss BI-Day taking place in Geneva and there will no doubt be similar discussions about Big Data and the future of Business Intelligence.

It appears that Big Data is not just a buzzword or a commodity that has been likened to oil; it has become the centre of a power struggle between different industries. Many professionals seem to be vying for the right to call themselves “THE Big Data experts”.

This got me thinking about the future of data analysis in general and the business usage of Big Data more specifically. There seems to be no stopping the inflow of information into organisations these days, whether gathered through market research, which is proportionally becoming smaller by the day, or from the smartphones, wearables and RFID chips, that get added to every conceivable article, more generally referred to as the IoT (Internet of Things). Who will, and how are we to better manage it all? That is the question that needs answering – soon! (>>Tweet this<<)

Data Science Central published an interesting article earlier this year called “The Awesome Ways Big Data Is Used Today To Change Our World”. Already being a few months old probably makes it a little out-of-date, in this fast changing world we live in, but I think it still makes fascinating reading. It summarises ten ways that data is being used:

  1. Underst anding and Targeting Customers
  2. Underst anding and Optimizing Business Processes
  3. Personal Quantification and Performance Optimization
  4. Improving Healthcare and Public Health
  5. Improving Sports Performance
  6. Improving Science and Research
  7. Optimizing Machine and Device Performance
  8. Improving Security and Law Enforcement
  9. Improving and Optimizing Cities and Countries
  10. Financial Trading

Many of these are not new in terms of data usage nor business analysis. What is new, is that the data analysis is mostly becoming automated and in real-time. In addition, the first and second items, which were largely the domains of market research and business intelligence, are now moving more into the h ands of IT and the data scientists. Is this a good or bad thing?

Another article posted on Data Informed a few months after the above one, talks about The 5 Scariest Ways Big Data is Used Today   and succinctly summarises some of the dynamic uses of data today. The author of both pieces, Bernard Marr, wrote that “This isn’t all the stuff of science fiction or futurism. Because the technology for big data is advancing so rapidly, rules, regulations, and best practices can’t keep up.” He gives five examples of where data analysis raises certain ethical questions:

  1. Predictive policing. In February 2014, the Chicago Police Department sent uniformed officers to make “ custom notification visits to individuals whom they had identified, using a computer generated list, as likely to commit a crime in the future. Just one step towards the “Minority Report”?
  2. Hiring algorithms. Companies are using computerized learning systems to filter and hire job applicants. For example, some of these algorithms have found that, statistically, people with shorter commutes are more likely to stay in a job longer, so the application asks, “How long is your commute?” Statistically, these considerations may be accurate, but are they fair?
  3. Marketers target vulnerable individuals. Data brokers have begun selling reports that specifically highlight and target financially vulnerable individuals. For example, a data broker might provide a report on retirees with little or no savings to a company providing reverse mortgages, high-cost loans, or other financially risky products. Would we want our own families targeted in this way?
  4. Driving analysis devices may put you in the wrong insurance category. Since 2011, car insurance companies like Progressive and Axa, have offered a small device you can install in your car to analyze your driving habits and hopefully get you a better rate. But some of the criteria for these lower rates are inherently discriminatory. For example, insurance companies like drivers who stay off the roads late at night and don’t spend much time in their cars, but poorer people are more likely to work the late shift and to have longer commutes to work — both of which would be strikes against them when it comes to calculating their auto insurance rates.
  5. Walmart and Target determine your life insurance rates. OK, not directly, but Deloitte has developed an algorithm, based on “non-traditional third-party sources” that can predict your life expectancy from your buying habits. They claim that they can accurately predict if people have any one of 17 diseases, including diabetes, tobacco-related cancer, cardiovascular disease, and depression, by analyzing their buying habits.

Marr starts this article by very briefly discussing privacy and inherent biases in data. I think these issues are far more urgent than deciding whether it is market research, business intelligence or data scientists that are in charge of the actual data analysis. Perhaps we all need to work together so that the “Human” side of data is not forgotten? After all, most data comes from people, is understood – if no longer strictly analysed – by people, for the benefit of people, to help change people’s behaviour. What do you think? Join the conversation and let your voice be heard. (I’ll be presenting this very topic at the Swiss BI-Day this coming Tuesday, so I do hope that you will pop by and listen)

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, it’s coming soon!

What Great Leaders Know and You Probably Don’t

I’d like to start this post with a bit of background. If there’s one thing I’ve learned from recording the audio version of my book Winning Customer Centricity, it’s that we should never stop learning and improving. In fact I am often quoted as saying:

“A day without learning, is a day without living” (>>Tweet this<<)

You’re probably asking yourself, as I myself did going into it, “How difficult is it to read out loud?” I went for my first day of recording with not much more preparation than getting my book printed off. What a mistake! Luckily we had technical problems and Tony Johnston, who is helping me with the project, decided to redo the first part again a week or so later.

That extra time gave me the chance to do two invaluable things. Firstly, to get some coaching from two incredibly talented – and patient! – actors, Pamela Salem and Michael O’Hagan. Secondly, to better prepare myself by reading the book out loud several times, and then marking it up with pauses, emphases and other notes, to make the recording more agreeable to the listener.

However, after successfully recording the first half of the book, I again fell back into my usual ways of presentation mode on the second day, and Tony once again, generously offered to re-record it. So I’m back with my dream team of coaches this week, doing some intensive voice training and exercises.

By now, you’re probably thinking “Nice story Denyse, but what does all of this have to do with me and my business?” Great question; let me answer it by simply saying “A lot!” Read on, to find my easily applied learnings that will make your leadership style more efficient and effective, no matter what area you work in.

1. We should never stop learning. As we age and rise in the corporate world, we seem to forget that we don’t know it all! We even think that we should have all the answers, or worse still, think that we do!

It’s vital that we continuously strive to keep learning and challenging our every-day habits and behaviours. Lifelong training and learning should be everyone’s mantra. This has become increasingly important because technical advances are coming almost daily, so we need to constantly rethink the way we work, adapting and integrating those technologies which could improve our businesses.

Accepting help is a leadership style2. We should accept help. Some people find it hard to ask for help or even to accept it when it is offered. This is foolish, since we cannot be an expert in every area of business. In fact if we lead a team, whether just a few people or many thous ands, we should be good at managing people first.

Great leaders underst and this and surround themselves with experts in different areas where they may need support. Are you a great leader? (>>Tweet this<<) 

3. Practice really does make perfect. It’s not only perfectionists that think they’re never good enough. We should always strive to be the best we can be. If this means that we have to practice our presentation ten times when all our colleagues only do it a couple of times, then so be it. We’re all different and perhaps they have a talent for speaking, or maybe they are just satisfied with a less polished performance than we are. We should never compare ourselves to others, only to our previous selves. (>>Tweet this<<)

Final check is worth it4. That final check is worth it. When I was learning to fly, my instructor never stopped reminding me that the pre-flight checks were vital to do thoroughly. He reminded me that once you’re in the air, it’s too late!

The same goes for meetings, events and conferences once they’ve started. Make and use checklists, like pilots do, and complete that final check thoroughly and completely. You can rarely recover from anything that’s missing once you’ve started, or if you can, it will take far more effort than making that final check before your event takes flight.

5. Accept defeat and mistakes. We all make mistakes sometimes and get defeated occasionally. We’re human after all. However, those mistakes and defeats are great teachers. If we learn and grow from them, then the pain involved should be short-lived, as we move on to bigger and better things. One of my favorite quotes from Edison is

“I have not failed. I’ve just found 10,000 ways that won’t work.” 

View errors as opportunities to grow. In fact it’s those people who don’t, who make a real mistake, and a BIG one at that. Encourage the sharing of mistakes so that others won’t have to make the same ones in order to learn the lessons. A healthy business environment is one in which failure is celebrated as much as success.

Tony, a naturally positive person, reminded me of this after our first “disastrous” session. “Don’t dwell on past deceptions Denyse” he said “Think about what you learned, what actually developed your skills.” 

6. Honesty is always the best policy. Somehow honesty is rarely discussed these days and yet we all know that trust is one of the main reasons people do business with companies. Therefore it seems odd that we speak a lot about trust but not honesty. In today’s world of immediate sharing of experiences with the world, dishonest behaviour is quickly known. It is so much easier to be honest than to recover from an act that was not, and the trust built over the longterm will enable companies to be forgiven for any occasional mishap that may occur. (>>Tweet this<<)

Customers in your vision7. Business isn’t only about millenials. Everyone is speaking about the Millenials these days; this is the generation, also known as “Gen Y” or “Generation Me”, generally accepted as having been born since 1980, after “Gen X.” While Millenials may be trendy, there are other groups which are arguably just as important to consider for a successful business. For example, this is an important year for the population in the US, because for the first time, there will be more Millenials than Baby Boomers, but also because the first Gen Xs will turn fifty.

A great article in TIME Magazine at the end of last year mentioned several key points that will impact businesses. While the article speaks primarily about the importance of Gen X, Baby Boomers are also important since they are usually a larger group in most developed countries and generally also richer. Another article about the over 50’s provides some interesting statistics on their size, wealth and spending, and shows how mature consumers are changing the l andscape of the digital world we live in. I would add, not only digital, and encourage all companies to revise their vision with these in mind. Great leaders don’t just follow the latest fads and trends, they more often work with future scenario planning; you should too.

These are just a few of the ways the great leaders I have had the chance to meet and work with, make a real difference in their organisations. I hope you have been inspired to make a few changes in your own thinking.

If you have something to add please do leave a comment, the more challenging the better!

Winning Customer Centricity BookThe images used in this post come from Denyse’s latest book Winning Customer Centricity, which is now available on Amazon, andnoble.com/w/winning-customer-centricity-denyse-drummond-dunn/1121802409?ean=9782970099802″ target=”_blank”>Barnes and Noble and in all good bookstores.

If you are not yet a C³C Member, sign up (for free) in the C3C Members area. You’ll get a discount code to buy the book, many useful templates from it, as well as case studies, videos and audio presentations to download.

 

Brand Strategy, Vision & Planning: When did you Last Review Yours?

How do you develop your br and strategy and vision? Do you just take last year’s document and revise it? Do you build your plan based upon the sales and profit increases imposed by management? Or do you start from your target customers’ perspective?

You know me well enough to have guessed that as a customer centric champion, I am going to say that the third answer is the correct one. Now I’m not saying that you shouldn’t take neither last year’s plan nor management’s targets into account. Rather I’m suggesting that as you are selling to your customers, they should be top of mind.

If you believe that your own br and planning process could do with an update, then read on; I have gathered together some of the latest ideas and best practices to inspire you to make a few improvements.

One of my favourite quotes on planning comes from Alan Lakein, an American businessman and author:

“Failing to plan is planning to fail” (>>Tweet this<<)

Another from A. A. Milne the English author and playwright says:

“Planning is what you do before you do something, so that when you do it, it is not all mixed up” (>>Tweet this<<)

So let’s start planning so we don’t mess things up!

Where you are – the situation analysis

The first step of the process is to run a situation analysis. This phase can include, but not be limited to, a review of market shares and trends, your current customer persona, your br and’s current image and changes, as well as the full details about your offer – price, packaging etc. Here we’re not speaking about the industry definitions, but the consumers’ perspective, or course. You will also need to do the same for your major competitors, but more about that below.

Who are your customers?

anding” width=”349″ height=”197″ /> The 4 Ws of targetingThis should be a no-brainer and yet I am constantly surprised just how many clients are unable to answer this question in detail. They may succeed in being relatively specific on demographics, as the above example mentioned, but not much more.

A recent and-underst and-your-customers/” target=”_blank”>post on this topic will definitely help you get better and more precise at describing to whom you are selling your product or service, so do check it out.

Only be completing a detailed profile, or persona as many like to call it these days, will ensure you are starting from the best possible position.

What is your current image?

A br and image and equity review is essential for both new and existing br ands. What category are you in? Is that an industry definition or a customer one? I remember working with a client who thought they were competing in the carbonated soft drinks market. In discussing with consumers we found they were competing in a mush wider arena including carbonated soft drinks AND fruit juices, because their drink contained real fruit juice.

The segment in which you compete is vital to underst and, as you will then review how your image compares to those of your major competitors. If you don’t know in which segment(s) you are competing, the latter are going to be difficult to identify. (>>Tweet this<<) And you may miss a major one through your limited view, as did my client mentioned above.

You might also have to check your corporate image if it is mentioned on the pack. Make sure its image is adding to and not negatively impacting your br and’s image. (>>and’s%20image%20[tweetlink]%20%23br and%20%23image” target=”_blank” rel=”nofollow”>Tweet this<<)

Another client of mine wanted to sell a new service for young people but its corporate image was one associated with older businessmen. It would have been a huge struggle for them to change this image, so I suggested removing the company name from their packaging. Would you believe it? The br and took off immediately because it could then position itself as a product for their precise target group and adapt communications to them. It worked – big time!

Why you got here – your key issues & opportunities

Based upon your br and audit and situation analysis, you should be able to review your current positioning and see whether you are still aligned with the vision you set. You will also have a good underst anding of your major competitors as well as their strengths and weaknesses.

Knowing where you are and why, you can now start to identify what gaps exist and the reasons for them.  The actions that you plan to take could be a change to your communications to emphasise a different strength of your br and; or maybe you decide to exp and distribution to better cover your weaker regions; or  maybe it’s time to launch a line extension or even a completely new br and. See why the situation analysis is a vital step to conduct before getting into strategic action planning?

Where could you go – your vision

I mentioned earlier about management’s targets that may have been set for your br and. Often these have been developed with a view to the total business needs and then attributed to each br and or category in which the company is active. It is your job to review what is possible, not just what is dem anded.

Whether the targets are too high or too low, you need to review both the budget and actions needed to meet these targets and inform management early if they are not aligned.

I know that this won’t make you popular, but at least it gives management the chance to adjust their own plans based on such input and they may be able to adjust them across their full portfolio.

How can you get there – your strategies & tactics

Now your targets have been reviewed and agreed with management, they need to be translated into strategic initiatives you will plan for the year. At this stage keep them high level. Review how you are going to meet them, remembering that there are basically only three ways to grow a business:

  • get more people to buy
  • get people to buy more
  • get people to spend more

Decide on which one (or more) methods you will concentrate on and then you can identify the actions needed.

If you are working with a declining br and, then you can still review these three methods but you will use them to defend your share. For this you will need to underst and which of them is the major cause of the decline and then identify tactics to reduce these losses.

What you need to do – your actions & limitations

Planning your activities need to be done with careful thought and thoroughness. You need to take into account many internal as well as external factors. For instance:

  • How does your plan fit with those of the other company initiatives? The salesforce won’t be able to work on every br and at the same time.
  • Is your br and seasonal or impacted by outside conditions? Weather, local celebrations, holidays or cultural habits can all impact dem and for certain categories and br ands.
  • Do your competitors have an identifiable planning that you can either interrupt or avoid?
  • What personality does your br and have? Your activities need to fit with your br and’s personality, which you will have checked during the review of its image.
  • What budget do you have? Better to concentrate on a few touch-points than to cover all of them so thinly your efforts have almost zero impact.
  • How do your communication plans fit across all the media you will use. They don’t have to be identical but together they should build a complete story.

Those of you that are regulars here know my love of threes. Therefore another useful way to work in a simple but not simplistic way, is to plan three strategies and have three tactics for each. Nine actions are more than enough for any br and.

Final thoughts

When presenting your plan, don’t get hung up on the numbers. Tell a story about your vision; where you are today and how you plan to get to where you are going. Use numbers to support your ideas not to blind or drown the audience.

The same goes for your wording. Be precise and succinct, not long-winded in order to just fill the plan template – I think every company has one, no? Organisations oblige managers to use st andard templates, but treat them as guides  and not as a bible. I have never heard of a plan being criticised for being too short, although I have of course heard them being criticised for lack of relevant content, which has nothing to do with its length.

What are your best tips for a successful br and strategy? I’d love to hear your own recommendations, especially if you are using a different process.

If you would like our support in developing your br and strategy, vision and plans, then please contact us here; we are sure we can help.

C³Centricity used an image from Kozzi in this post.

15 of the Most Actionable Marketing Quotes for Inspiration. Our Year-end Gift to You!

Quotes are fun. Quotes are useful. We all love them, don’t we? They also inspire marketers and businesses alike to achieve greater things. Added to the beginning or the end, or in fact anywhere in a report or presentation, quotes are the special inspiration that is often needed to drive action.

Here, as every year, are C³Centricity’s favourite quotes with ideas on how to action them and make them a part of your 2015 objectives. Enjoy!

1. “Creativity is intelligence having fun” Albert Einstein (>>Tweet this<<)

With the global sharing of thoughts and ideas thanks to the internet and social media, creativity has become a much sought-after skill. However, the more you try to be creative, the less it seems to happen. So instead of making it an objective in and of itself, aim to have fun and your creativity will flow naturally, without effort.

2.  “If you are an artist, learn science. If you are a scientist, cultivate art” Karin Timpone (>>Tweet this<<)

This quote highlights the much needed skills of today’s marketers. They must use both sides of their brains and to develop their talents in both analysis and creativity. Which do you need to exercise more in the coming year?

3. “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” Maya Angelo (>>Tweet this<<)

Everyone seems to be talking about emotions these days and yet marketers often struggle to walk the walk of emotional connection with their customers. Review your own plans and see if you can incorporate additional ways to resonate more emotionally with your customers.

4. “A br and is no longer what we tell the consumer it is — it is what consumers tell each other it is” Scott Cook (>>Tweet this<<)

Another quote that highlights the importance of both deep customer underst anding and the use of social media today. Do you know what customers are saying about your br and? Do you observe these conversations and join them with relevant information and ideas, or are you still trying to sell?

5. “If you’re not failing now and again, it’s a sign you’re not doing anything innovative” Woody Allen (>>Tweet this<<)

We all seem to do everything possible to avoid failure and yet failing is the sign that you are going outside your comfort zone and are trying new things. If you’re not failing occasionally then you are not trying hard enough to change. When was the last time YOU failed?

6. “The cost of being wrong is less than the cost of doing nothing” Seth Godin (>>Tweet this<<)

This quote also highlights the importance of failing and reminds us that it is better to fail and correct than to continue in a state of business as usual. This also reminds me of the importance of customer complaints. Whilst some might do everything to avoid them, the modern marketer knows that customer complaints are a gift to help improve their business. Do you welcome or resist customers who complain?

7. “Don’t tell me how good you make it; tell me how good it makes me when I use it” Leo Burnett (>>Tweet this<<)

Customer centricity is all about thinking customer first in everything we do. Is your website content filled with information your customers will find useful or is it all about you?

8. “I’d rather spend money on things that improve the customer experience than on marketing” Tony Hsieh (>>Tweet this<<)

OK I know this one might be hard for a marketer to accept, but in fact this should be the mantra of marketers, not just a CEO. Marketing should be about making our customers’ lives better. (>>Tweet this<<)

9. “To know your Enemy, you must become your Enemy” Sun Tzu (>>Tweet this<<)

Although this is a quote that was originally about war, it is also very relevant for marketing. If you are not regularly walking in your customers’ shoes then you don’t really know them.

10. “We must move from numbers keeping score to numbers that drive better actions” David Walmsley (>>Tweet this<<)

Big Data has become a hot topic for marketers in the last few years and many still struggle to feel at ease with numbers. This quote reminds us that working with data is just a way to get our job done better. If you are only using it only for keeping score then you are missing a valuable asset to your marketing efforts.

11. “Innovation should be massively disruptive now – today” Kirk Perry, Google (>>Tweet this<<)

Customers today are extremely dem anding and innovation has become vital to the success of a br and. Customers no longer stay surprised and delighted for long, so if you are not innovating you are or will shortly start to decline.

12. “If everything seems under control, you’re just not going fast enough” Mario Andretti (>>Tweet this<<)

Yet another reminder that the pace of business if getting faster and faster. Moving forward automatically brings a feeling of being just a little unstable, but that shows you are not happy with the status quo and are pushing forward – great!

13. “Don’t judge each day by the harvest you reap, but by the seeds you plant” Robert Louis Stevenson (>>Tweet this<<)

If a business is satisfied with current results and not thinking about the future then it is heading for disaster. This is of particular importance to those working in B2B, where every day needs to include both client service and client search. (>>Tweet this<<)

14. “Every br and isn’t for everybody, and everybody isn’t for every br and” Liz Lange (>>Tweet this<<)

Are you trying to satisfy everyone? It’s impossible. Segmentation and targeting is the only way for a business or br and to be successful. It is hard to ignore some customers, but doing it will ensure you totally satisfy the ones you have decided to target.

15. “Stop selling. Start helping” Zig Ziglar (>>Tweet this<<)

As already mentioned marketing is not about convincing people to buy, but explaining to them why they should want to consider doing so. If you are helpful and have a product or service designed to meet or surpass their needs, then the sales will come without much selling.

These are C³Centricity’s favourite marketing quotes of the year. Do you have a favourite that is not included in our list? Then please let us know by adding a comment below; it will get added to our large Library of quotes on our website and might be added to our next book in development on Winning Actionable Insights.

If you would like help in improving your insight development or marketing processes then please contact us today for an informal chat about your needs. We would love to support you in 2015.

C³Centricity used an image from Dreamstime in this post.

How to Innovate More Creatively

I was recently on a trip to the US; a transatlantic flight on a Boeing 747, my favourite airplane – apart from the Seneca II that I used to own. Anyway, the reason I love long-distance flights is because they cut us off from everyday life, although unfortunately no longer the phone nor web these days.

They therefore provide us with a very rare commodity; some precious thinking time. How do we ever get that otherwise? Speaking personally, my brain seems to be constantly under pressure from the challenges of work, family, friends – in a word, living – so I love it when I need to get on a flight, the longer the better.

I watched Transcendence on this flight; it’s about the moment when the human brain and technology become one. I love science fiction (SciFi), because it frees the mind to dream and to be far more creative than the “normal” working environment ever allows.

After the film and lunch were over, my mind turned – of course – to business and how I could set my past, current and future clients free too; how to make them more creative as well as more customer centric. So this is what I came up with, far above the clouds and worries of my everyday world.

The future is in our h ands

We are all wise after the event, but how do we become wise before it? In my opinion, by setting free our thoughts about the future and our creativity. Many companies have an innovation group, but rarely do they set them free, to think big, to think out of the box.

In fact in many cases, they are literally put in their own boxes, separated from the business for which they are supposed to be innovating. Whilst the intention of this separation may be laudable – it is claimed that it provides increased freedom  – it generally doesn’t work, because the group’s creativity is not grounded.

Despite their incredible creativity, even science fiction writers are grounded; their stories are based on facts, a progression from current actualities to future possibilities. I am not suggesting that innovation be limited to the mere renovation of today’s products and services, but rather that they be based upon a realistic progression of today’s realities, rather than pure hypothesis. In particular, they should be developed out of current sociatal trends, behaviors and needs.

Trend following isn’t creative

Are you following trends? Are you happy with the information you are getting from your supplier? We all love to look at new inventions and products from around the world, but just think about what useful and actionable information you are really getting.

I’m sorry to break the news to you, but you are almost certainly getting exactly the same suggestions as the tens, if not hundreds of other clients your supplier has. Reports aren’t generally personalized, or only minimally, so whatever ideas their reports might spark, are likely to be sparking in every one of your competitors minds too!

So if trend following won’t help your innovation, what will? My answer would be many things; isn’t that good to know?

Develop your trends into future scenarios

Trends do not provide you with a competitive advantage, especially for innovation, so you need to first turn them into future scenarios. There are (at least) two ways to do this.

Firstly you can combine the trends and form what are often referred to as axes of uncertainty. When crossed, these form four (or more) new worlds for you to then define, describe and develop. Your possible actions in each of these scenarios can then be identified, so your business is prepared for all major possible risks and opportunities.

“We must never be afraid to go too far, for truth lies beyond” Marcel Proust (>>Tweet this<<)

The second way is by identifying the major trends that may impact your business and then letting a Science Fiction writer describe the world that could develop. It is not so much a matter of being right as being provocative, the more the better. That’s why SciFi writers are amongst the best people to stretch our thinking. They have the creativity to go far beyond what most of us would think about, even when stretching our thinking. After all, the point of future scenarios is to prepare business for the future, not to predict it (>>Tweet this<<)

Visualise the future

Once you have developed your scenario – or two – you should visualise them to increases buy-in and sharing. This can be through a simple presentation, descriptive profiles or more exciting animations and videos.

Lowe’s has been one of the companies at the forefront of such visual development, using virtual reality to develop The Holoroom to show what SciFutures‘ science-fiction writers had developed. The room puts consumers into a new world where they can see their own new world, at least of their home after their planned renovation.

Other industries that are quickly developing new virtual worlds for customers include car and plane manufacturers showing future travel options. Car purchasers can also experience their new cars before actually buying them and can help in the development of cars that more perfectly meet their desires and needs.

Innovating outside the box

In too many cases innovation is built upon reality and a company’s current offers, in other words are renovations not innovations, just a step change from what we have today. New products developed using scenario planning tend to be faster, clearer, more efficient, longer-lasting and overall more attractive.

Technology makes what was even unthinkable just a few months or years ago, a reality today or in the very near future. Everything is moving faster and faster, so businesses must do the same. As this is rarely possible, they must already think the unthinkable today, so that they are prepared when it actually happens tomorrow. (>>Tweet this<<)

Are you ready for the brave new world  that is estimated to be just ten, twenty or at most just thirty years from now? That’s when the point of singularity is estimated to arrive.

If you would like help in improving your own innovation process, or in developing a future scenario for your organisation, please let us know; we would be excited to inspire you.

C3Centricity used an image from Dreamstime in this post.

Are P&G Right to End Marketing?

In the last couple of weeks, there has been a tremendous amount of discussion around P&G’s decision to change marketing into br and management.

The consumer products world closely watches whenever P&G announces changes, whether to their strategy, marketing or in this case their organisational structure. As this AdAge article (herementions “P&G seems well out in front of the rest of the marketing world — or what used to be known as the marketing world — on this”.

As businesses have become more social, there have been a lot of articles about marketing. Some have spoken about the need for marketing and IT to get together, if not even merge in some way (See this Forbes article). Others have proclaimed the end of the CMO’s position altogether, including the infamous piece by IMD’s President Dominique Turpin “The CMO is Dead ..… Welcome to the CCO. Then there have been even more articles challenging marketing to show their worth and suggesting metrics to prove their ROI (See  Fournaise 2011 study of 600 CEOs or  Forrester’s Marketing Performance Management Survey).

The fact that there have been so many different pieces on the topic over the last year or so, suggests to me that marketing is still vital for and extremely attractive to business, but that it is in desperate need of reinventing itself. I believe this is behind P&G’s move.

At the end of last year I wrote a post proposing what I thought would and wouldn’t change and what needs to. Six months on, in light of P&G’s announcement, I thought it useful to review my list:

What will change

  • Marketing can no longer work alone in a silo; it needs to become more collaborative and more commercial or business oriented. It can no longer remain fuzzy and hide behind claims that its ROI is difficult to measure.
  • anding customer service opportunities” width=”375″ height=”226″ />The sales funnel will be (has already been) replaced by the purchase decision journey, which will be a multi-layered, flexible representation of the route to purchase. For more on this, read “How Great Customer Service Leads to Great Customer Loyalty”.
  • Advertising  and messaging TO the customer will be replaced by valuable information made available FOR the customer. In line with the longer sales journey and multiple online consultations, communication will become more informative, more useful, more timely.
  • Local will no longer be geographic but “Native”. Whether it’s language, habits or interests, customers will be targeted on their similarities that will rarely, if ever, include geographical proximity.
  • Mobile web consulting will become the norm, so br and sites need to become adaptive. Content will aim to inform, educate and entertain first and foremost, rather than sell, and websites will become flexible and adaptive to the differing screens and customer needs.

What won’t change

  • The customer is still the king, but content joins the ranks in almost equal position, needing more respect and value, and less commoditisation. For a great post on this read “5 Ways Content Marketing Must Change in 2014”.
  • Recommendations will remain a vital part of choice and decision-making, but they will no longer come from just friends and family. They will come from organised collection – think TripAdvisor or Angie’s List – or from (self) proclaimed experts through their Blog posts and faithful followers.
  • Customer (consumer) underst anding remains vital and in fact the need for underst anding will even increase as customers will be in constant evolution.

What must change

  • We are all swamped with messages and information and yet – perhaps because of this – our attention span is declining. Messaging must become shorter and simpler as people use headlines to decide whether or not to stick around.
  • In addition to the increased need for informative content, it will need to engage as well as (or is it more than?) inform. Storytelling will become an essential skill for marketers, both internally and externally.
  • Wearable technology will totally change our where and when decisions of messaging. The customer will not only be in charge of what messages are received but when to be “visible” to receive them.
  • The old marketing funnel to advocacyHaving changed the sales funnel to a path to purchase, the usual loyalty funnel no longer works. The simple path from awareness to loyalty will be replaced by a constant and consistent battle for trust. What’s more it will never be truly “won” as customers continue to be fascinated by novelty.
  • Marketing can no longer depend on creativity alone. It won’t be enough, as if it ever was, and marketers will need to get (even more?) comfortable with their BigData and its usage.
  • Customer underst anding will come from multiple sources and market researchers will become underst anding analysts responsible for turning the unstoppable flow of information into the organisation, into palatable morsels of digestible stories.

Although I didn’t predict P&G’s change, it does in fact address most of the above, by combining four functions under the new title of Br and Management: br and management (formerly known as marketing), consumer and marketing knowledge (their name for market research), communications and design. At least by combining these groups under a single leader they will be forced to work less in silos and there should be more and better collaboration. Only time will tell if this move will be successful.

Do you think P&G’s change is the right move? Will you consider doing something similar? I’d love to hear your thoughts, especially if you are, or aspire to the “old” CMO or marketing roles. 

If you need help in adapting to the new world of marketing, why not work with one of the new breed of marketers? Someone who combines cultural sensitivity with creativity and technical know-how; a catalyst for the change your organisation needs. Contact us here  and let’s discuss your needs.

C³Centricity used an image from Microsoft in this post.

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

How you React to Failure could Make you a Success

These past few weeks I have been speaking about very basic, rational and tangible subjects like br and planning, innovation and portfolio management. Therefore I’d like to take a step back and look at a more philosophical and emotional approach to marketing this week. After all we’re all creatives, even if these days we must manage br and data almost as often as we create communications.

Life is a journey made up of highs and lows, wins and losses, and the same applies to business. This week I have been working on a new product idea based upon the most popular Blog posts on my website. These are the ones that suggest actions coming from some of the most inspiring marketing quotes I’ve found over the years. In my search for new ones, I was reminded of one of my all-time favourites:

“A man’s life is interesting primarily when he has failed. I well know. For it’s a sign that he tried to surpass himself”

Georges Clemenceau, French Statesman

I love this quote for two reasons. Firstly because it reminds us that we all – without exception – fail sometimes. And secondly, that it is these failures that are the signposts of our moving forward. If we never try anything new then we are unlikely to fail.

Why is it then, that at least in Western culture, we are taught to avoid failure and celebrate success? Shouldn’t it in fact be the other way around? A similar proverb shows how Eastern culture has, at least in my opinion, a better perception of failure:

“Fall seven times, st and up eight”

Japanese proverb

In other words, it is not the failure that matters as much as what we do afterwards. If we learn from it and get back up, then success will follow. In fact it was the prolific inventor Thomas Alva Edison who it is claimed “failed” thous ands of times before he succeeded in inventing such things as the phonograph, the motion picture camera, and a long-lasting, practical electric light bulb. As far as he was concerned:

“I have not failed. I’ve just found 10,000 ways that won’t work”

We have all known and will continue to experience failure, but it is what we do after it that differentiates winners from losers, the successful from the less so. However, failure in itself doesn’t mean that you have failed, only that you haven’t as yet found the right way to succeed.

So with a few more inspiring quotes on failure, let’s all think about the future, st and back up and take action; success might just come from our very next idea.

1. “It’s fine to celebrate success but it is more important to heed the lessons of failure” Bill Gates, American Businessman (>>Tweet this<<)
THOUGHT: Do you only celebrate success? If so, your business is giving out the wrong message. In fact we learn much more from our failures than from our successes.

2. “Failure is not fatal, but failure to change might be” John Wooden, American Coach (>>Tweet this<<)
THOUGHT: Learn from every failure and celebrate those who share theirs with everyone, because it takes courage to do so, but also gives free learning.

3. “By failing to prepare, you are preparing to fail” Benjamin Franklin, American Politician (>>Tweet this<<)
THOUGHT: Lack of success can come from a lack of preparation, as much as from a lack of, or incorrect action. Thinking before acting increases the chance of success.

4. “Failure is simply the opportunity to begin again, this time more intelligently” Henry Ford, American Businessman (>>Tweet this<<)
THOUGHT: Every failure teaches us something new. Use that knowledge to change the future and get closer to success.

5. “The difference between average people and achieving people is their perception of and response to failure” John C. Maxwell, American Clergyman (>>Tweet this<<)
THOUGHT: As already mentioned everyone fails at times, but successful people don’t stop, they just try again, but differently.

success comes from failure

6. “Failure doesn’t mean you are a failure it just means you haven’t succeeded yet” Robert H. Schuller, American Clergyman (>>Tweet this<<)
THOUGHT: I love this one, as it gives hope for the future. Never take failure – or success for that matter – personally. We are all just on a road of growing and learning.

7. “Enjoy failure and learn from it. You can never learn from success” Sir James Dyson, British Designer (>>Tweet this<<)
THOUGHT: This quote from James Dyson is particularly poignant. As Edison before him, Dyson made thous ands of “tries” before getting his inventions right (5,127 and 14 years of “failures” to get his vacuum cleaner prototype to be precise). Success is never easy and it is never fast – except when viewed from the outside.

8. “Fear of failure must never be a reason not to try something” Frederick W. Smith, American Businessman (>>Tweet this<<)
THOUGHT: We should never fear failure when we can learn from it. Success should be feared, as we might then stop trying and learning.

9. “The greatest glory in living lies not in never falling, but in rising every time we fall” Nelson M andela, South African Statesman (>>Tweet this<<)
THOUGHT: This reflects the Japanese quote mentioned above. Appreciate failure as a chance to prove your strength to st and again.

10. “Failure seldom stops you. What stops you is the fear of failure” Jack Lemmon, American Actor (>>Tweet this<<)
THOUGHT: Never give in to fear. Prepare as best you can and then if you fail, learn from it and move quickly forward.

I hope you enjoyed reading these quotes and the thoughts they prompted in my head. They say that pride comes before a fall; I say success follows failure. I wish you much success in failing fast and often, so you can enjoy more successes!

If you have a favourite quote on failure, please share it below. I’d love to add it to the collection on our website, with attribution to you of course.

The Highly Effective Habits of Truly Innovative Companies

A couple of months ago I shared what I consider to be the Ten Mistakes even Great Companies Make when innovating. Whilst it is useful to have these “watch out” lists, I believe it is also beneficial to take a look at how other companies get it right.

This post was prompted by a new client who is one of those already doing innovation extremely well and yet is still looking to improve their thinking. That for me is the sign of a truly innovative company. So read on for some ideas on how you too can become great at innovating.

Set Stretch Launch Targets

Let me start by saying there is a huge difference between the quantity and quality of innovations in almost all companies. In fact I believe there is an inverse relationship between the two. Those that innovate a lot rarely do it well. I think this is because they have the pressure of meeting objectives of numbers of new launches, rather than numbers of successful launches.

What is a successful launch? For me it is meeting or beating carefully thought through and calculated objectives. Not those wishfully high numbers used to get management buy-in for the launch, nor those ridiculously low targets that everyone knows will be met even before the new product is launched. No, I mean objectives that are stretch targets but achievable with the right plan, actions and effort. In other words SMART.

Be Inspired by your Customers

There are a lot of very clever organisations, especially in the technology area, which develop incredibly innovative products. Apple is (was?) obviously one of these and until recently, was admired for its innovations. Now it has been claimed that Steve Jobs didn’t believe in market research. This is untrue. He did believe in market research, but market research done right. He didn’t ask consumers what they wanted, because he said they didn’t know. Instead he asked them what their problems were, what they dreamt about. He then showed them his answers to these and got their reactions. Even when he got his answers, he didn’t immediately start adapting products to meet these stated needs, but rather worked to underst and what consumers meant by what they asked for. As the infamous Ford quote says

“If I’d asked customers what they wanted, they would have told me a faster horse!”

Jobs didn’t build a faster tape player, or a smaller one, or a lighter one. He made “music on the go” more convenient, more accessible and above all, more fun.

Use a Flexible Approach to Idea Generation

Many companies approach innovation as a strict process. They will use something similar to the below funnel, brainstorming for a multitude of ideas that eventually get whittled down to the one or two new launches that are finally chosen.

St andard funnel used by companies lacking innovative ideas

There are many companies today offering new processes and ways of innovating, but they all come down to a finite number of alternative levers:

  • Start from your strengths and / or weaknesses
  • Start from the strengths and / or weaknesses of your competitors
  • Extend into adjacent categories
  • Extend into new channels
  • Extend into new presentations (packs, prices, communications)

They also use one of three models to reduce their number of possible choices in their selection process:

  • Start large and reduce down (the st andard “funnel” approach shown above)
  • Start small and exp and before selecting (inverse funnel approach)
  • Repeated executions of the combination of the above expansion and contraction of ideas (sometimes referred to as the accordion approach)

Whichever you decide to use, you eventually get to a decision of the one, or few, launch choices, at least in most cases. Truly innovative companies are not limited to one process or tool, and are open to idea generation from however and wherever it might come.

Make Innovation Everyone’s Responsibility

Innovation is for the privileged few in (too) many organisations today. Teams are separated off to concentrate on being “more creative” or to “bond” with R&D. However truly innovative companies use open innovation where everyone can have and share ideas about the company’s process, products and customers. In a great article on this (“ Who blocks innovation?”) Jeffrey Phillips ends with a wonderful short story:

“There was an important job to be done and Everybody was sure Somebody would do it.

Anybody could have done it but Nobody did it.

Somebody got angry with that because it was Everybody’s job. Everybody thought Anybody could do it but Nobody realizes that Everybody wouldn’t do it.

It ended that Everybody blamed Somebody then Nobody did what Anybody could have done”

Great companies are often great because they are very innovative. And they are very good at innovating because of three highly effective habits:

  • They set appropriate stretch targets for every new launch; good is never good enough
  • They listen to their customers, but don’t do what they say, but rather what they mean
  • They open idea generation to be inspired by a multitude of different processes, tools and above all people

Would you add another habit? Have I forgotten an important trait? Please let me know what you would add or feel free to react with your comments below.

C³Centricity used images from Dreamstime in this post.

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