Be a true leader; share this post with the members of your team who need the inspiration and support.
Your boss expects you to be able to answer all his questions and especially to know your customers. Here are the 13 things your boss is likely to ask you and a handy Checklist to prove to him that you know your customers better than he realises.
Everyone speaks about customer centricity and the importance of the customer, but just how well do you know yours – really? The following is a checklist of 13 facts you need to be able to answer in order to know your customers as well as you should.
As you read the post, keep tabs on your answers and share your final score below. I’m offering a personal 50% discount code to spend in store for everyone who publishes their score here in July 2018. And if you’re the boss, I’d love to hear how well you think your team would do – 100% of course, no?!
#1. Who is your customer?
OK I’m starting off slowly, but do you know who your customers are? Not who uses your category, but who the people are that actually buy your product or service today? How much do you really know about them?
The C3Centricity 4W™ Template is a great resource for storing all the information you have on your customer. Download a free copy and watch the related videos HERE.
#2. What business are you in?
Although this refers more to the category than the customer, it is important to ensure you are looking at it through the eyes of your customers. Many organisations are working with industry definitions rather than customer ones. What about you? If you want to know your customers, you need to understand what category they think they are buying.
This is one of the essential elements you need to understand in order to know your customers deeply. It is something that many organisations don’t take the time to clearly identify, which results in an incorrect appreciation of their market and competitors. By not correctly identifying the category you are in, or plan to enter, your innovations will also lack the success you are hoping for.
For instance, are you in the food business or the pleasure business, beverages or relaxation? One of my clients wanted to launch a fruit flavoured soft drink and thought they were competing with other soft drinks. When we worked together we discovered that they were actually competing in the energy drink business!
Again 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™ 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?
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?
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.
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!
Product 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.
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.
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 meif 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?
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.
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.
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.
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!
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!
Next Wednesday is National Boss’s Day in the USA and in honour of the occasion Kathleen Brady of Brady & Associates wrote an article for the New York Daily News suggesting ways to please your Boss. Although not the topic of this post, the article incidentally makes great reading for anyone with a Boss (I think that’s all of us!)
It was P&G’s A.G. Lafley who first coined the phrase “The Consumer is Boss” about 12 years ago and since then marketing has been trying to please the consumer. It was also around this time that Consumer Packaged Goods companies then started referring to themselves as being consumer centric.
The Rise of the Customer
The below chart from Google Trends shows the search frequency of “customer” versus “consumer” since around that time. I don’t believe the changes you can see are due to a decreasing interest in consumers but are rather a reflection of the importance that all industries are placing on the people who buy their products and services. Whereas CPG may have started the trend, all industries now underst and the importance of the people that spend their hard earned cash on them. Depending upon the industry you are in, those people might be called consumers, customers or clients and customers has become the name most often used to cover all three.
The Fall of Customer Centricity
Maz Iqbal’s recent post on the CustomerThink website entitled “ The Paradox At The Heart of Customer-Centric Business” challenged the very nature of customer centricity. Whilst his ideas are certainly thought-provoking and perhaps controversial, I do agree that customer centricity alone will not grow a business. However, I personally believe that most organisations have spent most of their existence thinking more about all the other areas of the business and less about the people that actually make their businesses viable, their customers.
The Customer is now the Boss
Whilst this still continues to be the case in many organisations – unfortunately – and taking inspiration from Brady’s article, I thought I would share my own thoughts on what we can do to better please our Customers / Bosses.
#1. Make sure everything we do is ABCD: We shouldn’t be satisfied with our customers’ satisfaction! We need to go Above and Beyond the Call of Duty when trying to please them. We should surprise and delight them whenever we can, responding not only to their articulated needs, but also their unarticulated and even unimagined needs.
Look at Apple who regularly proposes technologies that their customers didn’t even know they needed and which surprisingly quickly become an essential part of their lives. They underst and their customers so well that they even know what they (we) will want in the future.
#2. Underst and what they need to know: According to a recent report by Adobe on what keeps marketers up at night, the number one issue is reaching their customers.
If we really underst and our customers, we will know how to reach them, where and when they are ready to hear what we have to say. Whereas in the past companies knew their customers were more than likely to listen to or watch their advertising when it was aired, today’s technology enables customers to switch off all but the most relevant messages for them at any given time.
#3. Know how they measure performance: We may feel proud of our latest new product idea or added benefit, but if our customer doesn’t value it, then our efforts will be ignored at best or even rejected if we try to charge extra for them. Perception and reality can be far apart, and customer value can mean charging more or less than we had planned.
#4. Offer solutions: I learnt very early on in my professional career, thanks to a very wise and open-minded Boss (Yes that is indeed you Jean-Michel), to bring solutions not problems; the same goes for our customers. We shouldn’t communicate (only) on rational benefits; we are more likely to resonate when we speak about emotional and relational benefits. We need to show we underst and their pain and offer them a solution; no-one can refuse such an offer.
#5. Be Transparent: In just the same way as a Boss needs to share his vision and objectives, we need to listen to our customers to ensure we underst and how they are changing. This doesn’t mean more regular tracking or group discussions, but rather more visits to retail outlets and even customers’ homes to share their daily lives, trials and tribulations with them. That is the best way to really see things from their perspective and to see how our products and services fit into their lives.
#6. Mind our manners: As Lafley said, the Customer is Boss. This means that when a customer complains, we must start from the position that they are right, even if it is just their perception. How many times have you yourself heard customer care personnel trying to defend their organisation in order to prove to you that you are wrong? (As a fresh example, I just today got criticised by a supplier for complaining that my dishwasher still hadn’t been delivered six weeks after it was promised! I was told it was “because it’s school vacation and I have three technicians out”. Sorry that doesn’t explain the previous five weeks’ delay)
Do whatever you can to make your customers who connect with you feel happy they did so; make them feel you truly value their opinion and them taking the time to tell you about their experience.
And please, stop your pre-recorded messages that say “your call is important to us” when you leave the caller waiting for five, ten, twenty or even more minutes – and even worse when the message is repeated at frequent intervals! You have to DO not SAY customer centricity.
#7. Customer feedback is a gift: Every complaint is a free roadmap of how to improve your product or service. How much would you have to pay an external expert or consultant to help you in improving your offers? When a customer complains or suggests improvements, you’re getting this information for free, from people who really care and are not being paid to help you. That is as close to the truth you will ever get; use it.
These are my seven reasons why the Customer is King and how we need to act when we remember it. What others can you think of?
Need help in underst anding and connecting with your own customers? Let us help you catalyse your customer centricity; contact us here
Why are so many businesses looking at building a Customer Excellence (CE) department today?
Customers, consumers and clients are demanding more attention; they want to be heard, they want to be seen and understood for who they are; they want their needs and desires answered. Social media has increased our attention to them, but many organisations are still struggling to walk the talk of customer centricity. If this is your own case and you are looking to develop customer excellence, then this post is for you.
Several companies have contacted me in the last few months, to ask for help in creating a Consumer / Customer Excellence Department. Having already gone through the challenges of doing this when I worked in the corporate world, I knew that I could certainly help others with this exciting objective. However, each time, my first reaction was to ask “Why”; not why they had contacted me but why they wanted to create the group and why now?
It is often the CEO or CMO who makes the original request, since they feel that the company is not paying enough attention to their customers. However, the initiative will only succeed if everyone in the company not only buys into the vision, but is also excited by the changes it will bring.
Let me share some of my own experiences to help you on your own journey, by illustrating a few of the imperatives to succeed in such an initiative:
#1. CE should report into the Board
This new department must report into the board and ideally have a seat there too. The initiative must be seen as an organisational and not a departmental objective. If CE reports into marketing, it will be seen as a marketing support group; maybe just a new name for the traditional marketing services, market research or insight departments, as I am sad to report was once said to me by my CEO!
#2. CE should group all customer-facing departments
Customer Excellence should include all customer-facing departments, including market research and insight of course, but also care centres, consumer services, web services, CRM and perhaps even the promotions teams.
This means that CE will watch over both personalised and anonymous connections with customers, but these can provide valuable information that can be integrated and used cross-functionally.
#3. CE ensures the business connects with the same tone & vocabulary
Every personalised contact with the customer must use the same tone and voice. They should also be based upon background information about every previous connection, by whatever medium used. In this way, the customer who already sees them all as links to the company, will perceive that the business cares about them and wants to build a deep relationship and understanding of their needs and desires. Everyone likes people who take a positive interest in them, so this is a true win-win.
#4. CE should be multi-category
In order to truly integrate all the knowledge and understanding, the CE group should also work across categories and brands in a multi-category company. In this way they will comprehend the person as a whole, and not just as a category user.
This also has the added benefit of giving the organisation an opportunity to cross-sell and up-sell when a connection is made, by proposing appropriate products and categories.
I am sure you have all been contacted at some time in the past for an inappropriate product, by a company that didn’t do this, right? For example diapers promoted to single men, a new desert to people on a diet or who are diabetic, innovative new alcoholic beverage to teetotallers etc etc. Irritating for the customer and damaging the image of the brand.
#5. CE should be Global
Wherever relevant, Customer Excellence should have a worldwide remit, integrating all regions and markets. This enables them, and the business, to be aware of global as well as regional category and societal trends, which in turns helps the company be prepared for future opportunities and challenges.
In addition, this can build a useful community spirit, especially in decentralised organisations. Markets should always be looking for information from countries ahead of them on any relevant trends, whilst also looking back to help those who are following them on other trends.
The book Winning Customer Centricity: Putting customers at the Heart of Your Business – One Day at a Time includes a simple roadmap for adopting a customer first strategy. It covers the four foundational topics that need to be addressed.
Find out more and about the book and reserve your spot for the webinar:
Most organisations today follow trends, but these do not bring competitive advantage unless they are developed into future scenarios. By doing this, Customer Excellence can prepare management for the future, identifying possible changes to the market, so that opportunities can be grabbed and response to possible challenges well prepared in advance.
Business relevance will always be higher for scenarios than trends. In a regional or multinational organisation, scenarios can help markets to be better prepared, by sharing information across borders and continents, rather than using geographic closeness to define regions.
Language rather than geography sets the boundaries in todays connected world, so innovation and new product roll-outs should follow them. Surprisingly, companies still favour launching based on market proximity; this is a big error.
By being market and brand agnostic, the Customer Excellence department is free to give advice and to share their true opinions, without fear of upsetting the business unit or regional head. Corporations today must get comfortable with cross-departmental team working and the creation of a Customer Excellence department is a great way to catalyse this change.
#8. CE should Integrate all Customer Information
Understanding and insight development from the information gathered by market research, sales, marketing, finance, supply chain, and all the other available sources within an organisation, can only come from total data and knowledge integration. Consumer Excellence can again provide the analytical expertise and the cross-category perspective to reap the full benefits for everyone.
Having a one-stop shop for a company’s customer and market information, knowledge, understanding and insights means that work is not replicated when requests come in from different departments. Additionally, multiple categories may be interested in similar target groups, which means that customer excellence can provide deeper insights to both groups without twice the work.
#9. CE should cover costs through better negotiation
This also applies to the purchasing of external information and reports. Few suppliers would ever tell a company that they have already purchased a report or database. They are happy to make that second or even multiple sales to different departments within an organisation. However, if all information requests are handled by one group, companies can certainly avoid this and also negotiate better deals for multiple purchases for reports that are relevant in several business units and which should be made available across the organisation.
This is a particularly valuable additional benefit for decentralised corporations, since there is generally little collaboration at the purchasing level. However, from my own personal experience, savings can even be found for centralised enterprises, through simply negotiating volume discounts.
#10. CE Ignites Customer Centricity & Business Growth
Last but not least, the customer benefits from a CE function, since all employees are thinking about the role they play in satisfying them. Becoming customer centric is a long journey, so the more people that are involved at the start, the more likely that cultural change will happen. This is because each employee reinforces the thinking of putting the customer at the heart of the business.
To conclude, the creation of a Customer Excellence department sponsored at board level, can put the customer at the heart of the company, as well as of every department within it. The business will benefit, the customer will benefit and hopefully the employees too.
What have been your experiences with the creation of a Customer or Consumer Excellence Department? Please share your own stories here and add the other benefits you have found from your own experiences.
For more about the processes of enhancing customer centricity or creating a Customer Excellence Department, please check out our website: https://www.c3centricity.com