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The Future of Brand Building is Customer Centricity

Marketing is an old profession. It’s been around for hundreds of years in one form or another. But with the advent of digital in the early 80’s, companies began taking a serious look at their marketing strategies.

Many organisations realised that it was time for a major overhaul of their primarily outbound strategies. Consumers no longer appreciated being interrupted in their daily lives, if they ever did!

However, even today, with the creation of inbound marketing strategies, they are still irritating their customers with spammy emails, intrusive popups and over-complicated cookies, that gather far more information than most organisations will ever need or use.

Despite these changes CMOs remain one of the leading c-suite members who struggle to keep their jobs for more than four or five years. The reasons are many, but the post “Head of Marketing, How Can You Keep Your Job When Most CMOs Are Losing Theirs?” explains what you can do to ensure you only leave your position when you want to.

 

Brand Building

Many large CPG companies, such as P&G, Coca-Cola and Nestle, have changed the name of their Marketing departments in the past twenty years, to Brand Building. They hoped that it would revive sales and give new vitality to their communications to better engage their customers in the new social world. But most failed miserably, because they remained very much in a state of business as usual. They continued with the same processes and mind-sets. And with few exceptions, they prioritised thoughts about themselves and their brands, and rarely took their customers’ perspective.

Luckily a few other consumer goods companies realised that to satisfy the consumer they had to do things differently. They were the ones that moved to customer centricity. Or to be exact they started on their journey towards putting the customer at the heart of their business. Customer centricity is not a destination, because consumers are constantly changing and their satisfaction never lasts for long. It is a journey with the aim to satisfy and delight.

Customer centricity is not a destination, because consumers are constantly changing and their satisfaction never lasts for long. It is a journey with the aim to satisfy and delight. #CEX #CRM #CustomerCentricity Click To Tweet

I think we have taught our customers far too well! They understand a lot more about “marketing” than they used to. They understand that companies have marketing plans and regular promotions, so they wait for the next price offs whenever they can.

They also realise that in today’s world, products have become more and more similar. Their format, colour or perfume may differ, but there are strong similarities in their performance.

That’s why consumers now often have a portfolio of brands from which they choose in many categories. They are far less likely to be loyal to only one brand than they used to be.

 

Switching economy harming loyalty and brand building
Source: Accenture

They have also come to expect constant innovation as they quickly adapt to the once novel idea and start searching for the next big improvement. According to Accenture’s “ Customer 2020: Are You Future-Ready or Reliving the Past?” almost a half of consumers believe that they are more likely to switch brands today compared to just ten years ago!

Customer Centricity

Brand building needs new skills for marketers
Source: Korn Ferry

In response to these ever more savvy customers, marketing has to change. In the  2015 Korn Ferry CMO Pulse Report, it confirmed that marketers need new skills and can no longer rely on creativity alone.

 

 

If you’re interested in ups killing your team, then we can provide fun training on many areas of customer centricity. Download our training brochure and then contact us so we can discuss your precise needs. All our courses are personalised to meet your specific requirements; no off-the-shelf trainings are ever given.

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Are You Customer Centric?

Companies that place their customers at the heart of their business, are easy to recognise. Their websites are filled with useful information, entertaining videos and engaging games. Their contact pages provide many alternative ways for customers to reach out to them, rather than the less appealing reason menu and message box that disappears into hyperspace!  Their advertising is emotional, with the customer and not the brand as the hero. They involve their customers in many aspects of their business.

If you would like to start involving your customers more in your business then the post "The exceptionally easy and profitable uses of co-creation" is a popular and highly recommended read.

And if you're not sure how good your customer centricity is, just take a look at your own website and then complete our free quiz C3C Evaluator.

 

Moving Beyond Brand Building

Whether you are still doing marketing or have already moved to brand building, here are some ideas that you can use to help you quickly move forward on your journey to greater customer centricity:

1. Place pictures of consumers everywhere, so people start to naturally think about them. This can be at the beginning and end of presentations, in your office reception, in the lifts or anywhere many employees spend time.

2. Whenever you take a decision, ask yourself "What would our consumers think about the decision we have just taken?" If they would disagree, then you should reconsider your options.

This will avoid such practices as hiding price increases by reducing pack content without telling the consumer. Or asking credit card details for the use of a "free" trial, in the hope that the customer will forget and be automatically charged for a service they may not want.

What would our consumers think about the decision we have just taken? If they wouldn't like it, reconsider your options. #CEX #CRM #CustomerCentricity Click To Tweet

3. Review the content of your website in detail. If there are more "we's" than "you's" then you know what to do. And while you're online, check out your contact page for possible improvement opportunities, as detailed above.

Review the content of your website. If there are more we's than you's then you know what to do. Customer centric companies talk about their customers more than themselves. #CEX #CRM #CustomerCentricity Click To Tweet

4. Take a look at your target consumer description or persona / avatar. When was it last updated? If you don't even have a written document clearly describing them, then use C3Centricity's 4W™ Template until you develop your own. (you can download it for free HERE)

5. Examine your advertising. Who is the hero? Consider developing concepts that are more customer centric, by making use of your understanding of them and their emotional triggers.

Review your current advertising campaign. Who is the hero? If it's not your customer, consider developing concepts that are more customer centric, by making use of your understanding of them and their emotional triggers. Click To Tweet

6. If you are lucky enough to have retail outlets, spend time with your front-line staff and your customers. Make use of call centers, in-store promotions and merchandisers to talk to your customers, as well as to the employees who connect with them. They will almost certainly be able to tell you a lot more about your customers than you yourself know. Then add the information to your persona description and review your future promotions for any improvements you could make.

7. Share your latest knowledge about your customers with everyone in the company. Help every employee to understand the role they play in satisfying the customer. Make them fans of your customers and you will never have to worry about such questionable practices as those mentioned in #2 above.

These are your starter tasks for moving from marketing and brand building to a more customer centric approach. They all have your customer at the heart of them. Any others you'd like to add? I know you can come up with many more ideas than I can alone, so why not share them below and let your knowledge shine?

If you'd like more suggestions about moving to a new-age marketing approach, check out my book "Winning Customer Centricity". You'll see it's like no other business book you have ever seen! Then you will understand why numerous major CPG / FMCG companies follow it annually. It's fun, inspiring and a useful roadmap for your customer centric journey. 

How the Best Marketers are getting More Actionable Insights

Are you as busy as I am, as we plan on how we’re going to deliver on all our objectives before year-end? The last quarter of any year is a stressful time indeed, but this post on actionable insights is a must-read if you want to start 2020 ahead of the competition!

I’ve just returned from running a two-day workshop in Japan. The topic was “Insight into Action with Impact”. One of the things that I loved about the workshop was that marketing was invited too. Even though market research and insight (MRI) groups generally report into marketing in most companies, it seems to me that they are often working on different planets! In many organisations, the collaboration between these two departments goes no further than project briefings and results delivery.

This is not the case with my client in Tokyo; this MRI group has a wonderful working relationship, not only with marketing but also with Channel, Sales, R&D, Finance and even Legal. They have understood that insight development is too important to be left to the market research team alone and have worked hard to build strong relationships with all the other departments in their organisation.

Insight development is too important to be left to the market research team alone. #MRX #Marketing #Insight Click To Tweet

I am sure that many of you reading this, are asking why this is so important. It is NOT important, it is VITAL! Insights are the golden nuggets that we are all searching for. Successful companies depend upon deep customer insights to grow their business. They understand the power of engagement built on insight, to connect with and inspire their customers. And yet many companies continue to leave this to the insight team to develop and deliver on their own. It’s as if they believe that this group have some natural-born skill or magic that enables them to do it while others cannot. Don’t worry, we can all do it with the right training and a few tools.

Insights are the golden nuggets that we are all searching for. #MRX #Marketing #Insights Click To Tweet

Great companies understand the importance of insight generation and the challenges faced by everyone in developing them. This is why the best marketers search for greater collaboration. I always encourage the market researchers in my client companies to socialise with other departments, rather than sitting behind their computers all day. The best marketers already do this, do you?

I was encouraged to see that marketing have finally understood the importance of insights. In some recent research by Gartner CMOs selected market research and insights as just as important as marketing analytics and digital commerce (see graph below). Better late than never I suppose, but it always amazes me that marketing could put anything ahead of insights. After all, every action they decide to take should be based upon deep knowledge and understanding of the customers targeted.

actionable insights supporting marketing strategy

If you are struggling to develop insights that will truly resonate with your consumers or customers, then I suggest you follow these eight tips that I shared with my client’s marketing and insight teams last month.

Despite being some of the best marketers I know, they are still keen to progress their thinking and processes to embrace customer-centricity in every area of their organisation. This seems to be a trait of all successful companies, that they have a desire to improve and learn more. They never consider that they “know it all,” which is a reason I have often heard from businesses when I ask why they are not doing more to understand their customers!

1. Turn business objectives into customer-centric ones. If you are defining your objectives in terms of the business, such as increasing sales, beating the competition or increasing awareness, you are not thinking customer first.

Instead, identify what you want to change in terms of your customers’ behaviour or attitude, and you are likely to correctly identify the actions to be taken. When you think customer’ objectives rather than (just) your own, you are far more likely to meet with success.

2. Insight generation should start with customer connection. When was the last time you personally spoke with your customers? If it wasn’t in the last week, you’re not getting out enough! Make a habit of regularly watching and listening to your customers.

They are changing faster than you may realise, so it is important to keep your finger on the pulse of market changes. These days you don’t even have to leave your office. Market research interviews can be videos live and care centres are always answering calls from customers, so make a habit of listening in. For hints on how to observe your customers better, check out “Five Rules of Customer Observation for Greater Success.”

Insight generation should start with customer connection. #MRX #Insight #Marketing. Click To Tweet

3. Have regular contact with all other departments. It is impossible to really understand the business if your contacts with other groups are limited to meetings and presentations of analyses you have conducted or plans you have written. It must become a daily habit, so you are seen as the true voice of the customer / consumer internally.

Meet for a coffee, or go to lunch with someone other than your usual group of colleagues. These impromptu meetings will deliver big on understanding and will provide invaluable information from the perspective of other departments.

4. Get MRI to share their nuggets of information at every occasion. While they may present findings in formal meetings and presentations, I know that market research and insight teams learn a host of new things about the business every day. So why not share them?

Every project and analysis turns up more information than that for which it was designed. Somehow these learnings get lost, as they are not seen as relevant to the question in hand. However, make them a regular part of newsletters, Lunch & Learn sessions, or internal “Tweets” and they will surely inspire new thinking across the organisation.

Every MR project & analysis turns up more information than that for which it was designed. Make sure to share it. #MRX #Insight #Marketing #Brands Click To Tweet

5. Get into the habit of speaking with consumers at every chance you can. As already suggested, join in when research projects are being run, listen in to call centre conversations, speak to demonstrators and merchandisers, or even talk to shoppers at retail.

These connections can quickly become addictive, as they are for the best marketers in the most consumer-centric organisations. As an added bonus, the insight development process will become both quicker and less challenging for everyone.

6. Ask MRI to analyse more than market research information alone. They are the best synthesisers you have and can manage multiple data sets from all available sources. There is so much information flowing into organisations today that there is more data than even the best marketers can manage.

According to IBM, more than two-thirds of CMOs feel totally unprepared for the current data explosion, especially as it relates to social media. And in research conducted by Domo, a similar number of marketers claimed to be unable to handle the volume of data available to them. Ask MRI to help and you will both be better informed and also feel less overwhelmed.

7. Remember that insight development takes energy and time. Although my client’s teams got close to the perfect expression of an insight in just two short working sessions, it usually takes days, if not weeks or even months to refine, group and synthesise information down to an actionable insight. However, the right training and some simple tools can speed their development for even less than the best marketers.

If you’re interested in learning more, then we can provide fun training on many areas of insight development. Download our training brochure and then contact us so we can discuss your precise needs. All our courses are personalised to meet your specific requirements; no off-the-shelf trainings are ever given.

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8. Insight development should involve more than the insight team, which is why it is important for them to always be building their relationships with other departments. The alternative perspectives brought by the other groups will enhance the overall understanding of both the customer and the market situation you are looking to address.

So these are the eight tips I shared with my Japanese client during our workshop. Are you doing all of them, or have they given you some ideas on how to improve your own process? I do hope so.

If you work in marketing or even another department outside of market research and insight,  I would love to hear what you do to develop your relationships with MRI. Do they involve you in insight development or do they only deliver the results of their process to you? What could you and they do better to make insight development and customer understanding easier in your organisation? Add a comment with your suggestions below.

For more information on the training courses in insight development and brand building, please check out our website or contact us here. Let's have an informal chat about how we could support your brand building efforts and provide fun training days. We already do this for businesses in many industries all over the world. We love customers, consumers and clients and can help your teams know and understand them better.

Winning Customer Centricity

 

 

This post includes concepts and images from Denyse's book Winning Customer Centricity. It is available in Hardback, Paperback, EBook and AudioBook formats. You can buy it, usually at a discount, on our website HERE. Of course, the book is also available on Amazon, Barnes and Noble, iBook and in all good bookstores.

Today’s Toughest Marketing Challenge is Not Customer Satisfaction!

We all know how extremely demanding consumers have become in recent years. The offers of constant innovation and novelty have made us all more impatient and critical.

Today we want things better, faster and sometimes cheaper as well. And customer satisfaction is becoming insufficient to drive growth alone. Companies need to deliver more, a lot more!

I was recently in the US and as seems to be the norm these days, the hotel in which I stayed asked me to rate their performance afterwards. I completed their form, giving only four and five-star ratings, as I had been very satisfied with my stay, the hotel rooms, the staff and their services. Imagine my surprise therefore when I got the following email a day or so after submitting my review:

“Thank you for taking the time to complete our online survey regarding your recent stay at our hotel.

On behalf of our entire team, I would like to apologize for failing to exceed your expectations. Your satisfaction is important to us and we will be using the feedback you provided to make improvements to ensure we offer an exceptional experience for our guests in the future.

I hope that you will consider staying with us again so that we can have another chance to provide you with a superior experience.”

Shocking mail isn’t it? To think that a Hotel apologises for not exceeding my expectations! But I believe that is exactly why they get a 4 1/2 star rating on TripAdvisor. For them customer satisfaction is not enough; they want their guests to be enchanted, enthralled, excited, so that a return visit is a “no brainer”; no other hotel choice would make sense!

Shocking to think that a Hotel would apologise for not exceeding my expectations! #hotel #travel #leisure #CustomerSatisfaction Click To Tweet

How do you treat your own customers, consumers and clients? Do you do just enough to satisfy them, or do you consistently look to exceed their expectations?

If you are a regular reader here – and I’d love to know why if you’re not, so I can do better in the future – you will know that I often talk about “surprising” and “delighting” our customers. These are not hollow words; there’s a very real reason why I use them. The reason is that our customers may be satisfied, but they will never stay satisfied for long.

Our customers may be satisfied, but they will never stay satisfied for long. #CRM #CEX #CustomerSatisfaction Click To Tweet

The above personal example I give is one way that the hotel staff ensure they have enough time to correct whatever is not a “superior experience” as they term their own desired service level, and to continue to offer total customer satisfaction.

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Here are a few examples of other companies who go above and beyond in terms of their own customer service. I hope they inspire you to do the same and to aspire to exceed customer satisfaction whenever and wherever you can.

Amazon

Amazon's amazing customer satisfaction logo
Image source: Amazon.com

I have to start with Amazon because they clearly mention in their mission statement that they want

"to be the Earth's most customer-centric company, where customers can find and discover anything they might want to buy online."

Although they don't specifically mention exceeding their customers' expectations, they are known for regularly giving extra in their customer service. This might be by surprising their customers by sending the ordered goods by priority mail when only standard was paid for, or refunding the total cost of an article that failed to totally meet if not exceed expectations.

They are also known for being extremely helpful in proposing other articles you might be interested in buying, based upon your current or past orders. Yes it might also make good business sense to do this, but as a result of this practice, who doesn't trust Amazon and start their search online on their website? Customer service to Amazon means going beyond customer satisfaction alone.

One recent challenge for Amazon is the claimed increase in fake reviews. I myself was once asked to give a five-star rating in return for a total reimbursement of the cost of the product. Needless to say, I immediately returned the item and informed Amazon.

This practice seems to be particularly common for articles coming from China, although I am sure it is becoming a widespread behaviour as companies realise the importance of high customer ratings. In fact, there are now even platforms for checking the validity of reviews, so hopefully things will improve in the near term. If you would like to learn more on the topic, then I suggest you read this great article on cnet.

Zappos

Zappos powered customer satisfaction through service
Image source: Zappos.com

Just like Amazon, Zappos too has made customer centricity the heart of their business. Their mission statement, also referred to by Zappos employees as their "WOW Philosophy," is "To provide the best customer service possible."

CEO Tony Hsieh is often quoted as saying that

"We believe that customer service shouldn't be just a department; it should be the entire company."

That makes it crystal clear how customer centric they are.

Another of his quotes is

“To WOW, you must differentiate yourself, which means do something a little unconventional and innovative. You must do something that’s above and beyond what’s expected. And whatever you do must have an emotional impact on the receiver.” 

This mentions another of the reasons it is important to go beyond what customer's expect today - the emotional connection. That is what touches our customers and makes them feel differently about our brand, company or service. Customer satisfaction is not enough, we need to stimulate their emotions too. 

Customer satisfaction is not enough, we need to stimulate their emotions too. #CEX #CRM #CustomerSatisfaction #CustomerCentricity Click To Tweet

Apple

Apple targets customer satisfaction
Image source: commons.wikimedia.org

Steve Jobs is famously quoted as saying that "It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them."

It was therefore his philosophy to do limited market research and never to ask the advice of consumers on his innovations. What he did ask questions about however, was their pain points.

In a video way back in 2014 Tim Cook talked about being "better." While Cook mentions the environment, the bigger picture in what he was saying was that he wanted Apple to produce world-changing products that leave the planet better off. This can be in a literal sense like pollution, but also in a more figurative sense, like the iPhone, which has made millions of lives better.

Over the past four years, we have seen clear evidence of Cook's vision coming true. In an interview for Fast Company earlier this year, he was asked what makes a good year for Apple. His reply?

"For me, it’s about products and people. Did we make the best product, and did we enrich people’s lives? If you’re doing both of those things–and obviously those things are incredibly connected because one leads to the other—then you have a good year."

How many organisations would look different if we used these same criteria!

Did you make the best product, and did you enrich people’s lives? If you’re doing both of these, then you are having a good year. #quote @TimCook #CEX #CRM #CustomerSatisfaction Click To Tweet

 

Brompton Bikes

Brompton bikes offer exception customer satifaction
Image source: Brompton Bikes

The final example I want to share is from the UK and shows how even retail can become an essential part of delighting the customer. The brand is Brompton Bikes, a folding, city bike.

They understand that it is no longer sufficient to provide an excellent product and an easy way to buy them or to order online. Brompton have realised that their retail outlet needs to be an integral part of the brand experience, if they want to not only satisfy, but delight their customers.

Now while that may not in itself be that new, Nike and other trainer brands have been doing this for a while, it is the first time I have seen it done for durable goods.

What Brompton have done particularly well, is to understand their urban buyers' lifestyle. They have been able to become an integral part of it, by not only providing transport, but also an easy way to buy accessories, get repairs done and even to park safely while their customers visit the adjacent shopping mall. In other words they have made their brand a solution for city dwellers.

 

In conclusion, these examples provide a clear roadmap for anyone wanting to move their customer service and engagement to the next level, by offering more than mere customer satisfaction:

  • Surprise your customers with something unexpected. Whilst I know it is becoming ever more difficult to do this these days, it is definitely worth the effort in order to build their loyalty.
  • Touch the customer emotionally so your product or service resonates with them. Brompton have achieved this by deeply understanding the lifestyle of their customers. As Maya Angelou is famed for saying

"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.” 

  • Strive for better in everything you do, Never be satisfied with just repeating previous successes. This is perhaps the greatest lesson from all these great companies. As the Hotel mentioned, they want to exceed the expectations of their guests.
  • Make it a part of every employee's objectives to ensure your products and services not only obtain customer satisfaction, but go even beyond that in any way they can. As Tony Hseih says, customer service is not the responsibility of any one department.

Coming back to the title of this post, I hope you now agree that satisfaction is no longer sufficient to attract and keep your customers. It is time to step up your game, to aim for surprise and delight. This should be an ongoing objective too, since customers can quickly increase their demands as what once excited them becomes the norm. 

I am sure you have many examples of companies that were not satisfied until they had gone above and beyond what you as their customer expected of them. In a previous post I mentioned Dyson; what others would you add to the list?

Which companies excel at not only satisfying their customers, but surprising and delighting them too? #CEX #CRM #CustomerSatisfaction #CustomerDelight #CustomerCentricity Click To Tweet

Please share your suggestions below. Of course, you can also share your horror stories, as they provide useful information - and often amusing anecdotes too! Thanks. 

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Fundamentals of a Customer First Strategy For Every Industry

Every industry strives to improve their customers’ experience with their products and services. Adopting a customer first strategy is therefore in many company objectives. Unfortunately it rarely goes beyond the theory in many organisations, so I decided to help out with these six suggestions.

Hospitality is perhaps one of the most visible industries where customer satisfaction, or lack of, is quickly shared with the world.  It is true that without satisfaction, customers will not return to a hotel or restaurant. And they will almost certainly share their (bad) experiences with anyone who will listen.

Hospitality is also one of the industries that receives the most comments online, thanks to TripAdvisor and other booking sites. There is no hiding from their clients for hospitality! While I empathise, it’s not all bad news. This is because it also means that great service will also be more quickly seen online. Therefore you can make changes and see the results almost immediately, or at least far quicker than in most other businesses.

However, despite this, I believe that the hospitality industry has a lot it can learn from consumer packaged goods (CPG). In fact most other industries could benefit from taking a look at some of CPG’s best-in-class processes.

Both the hospitality and CPG industries have their customers at their heart. They are both founded on pleasing and hopefully delighting their clientele in the quality of the products and services they offer. However, as the world changes, customer demands do too and companies need to stay current if not ahead of these requirements in order to ensure continued growth.

#1. From ROI / ROR to ROE

There has been a lot of talk recently on moving from a return on investment to a return on relationships. Whilst I agree with the importance of relationships, I believe that what we should be talking about is engagement. Be honest, other than the popular book that started talking about brand love, who wants to have a relationship with a brand?!

Brands that have a high following and loyalty have found a way to consistently engage their fans and keep them coming back. They become involved and interested in the brand, the product, their website, even their communications. Coca Cola and Red Bull are great examples of this. You should also check out another post entitles Increasing Impact & Engagement through Advertising Testing.”

Brands that have a high following and loyalty have found a way to consistently engage their fans and keep them coming back. #CEX #CRM #Engagement @C3Centricity Click To Tweet

 

#2. Build relationships with strangers

Whilst the hospitality industry has been based on serving and satisfying its guests, in today’s connected world it also needs to consider people who are currently strangers – but who could potentially become clients. These might be the friends of current guests, which for example the Rosewood Mayakoba resort in Mexico tries to attract.

This wonderful hotel encourages its guests to photograph their experiences during their stay at the resort and then to share them with their friends on Facebook. This not only provides free publicity for the hotel, but also enables it to start engaging these potential clients, since they probably have similar lifestyles to their current guests.

User generated content (UGC) works well because customers trust each other a lot more than they do brands. Research from Forbes shows that 81% of consumers’ purchase decisions are influenced by their friends’ social media posts.

For some great examples of successful UGC campaigns, I highly recommend checking out this article on Wedevs. You may also want to readThe Exceptionally Easy & Profitable Uses of Customer Co-creation.”

User generated content (UGC) works well because customers trust each other a lot more than they do brands. #CEX #CRM #Trust @C3Centricity Click To Tweet

 

#3. Value is more important than price

Having additional control in their lives today means that customers are re-evaluating what they are offered. They have higher expectations and are more discerning in their choices. They expect recognition at every touchpoint, even if in reality their peers influence their decisions more than does traditional marketing.

The internet enables them to compare offers, so they are less interested in bundled propositions, preferring to decide what is best value for them personally for each element. Several brands have understood this and now offer the customer the possibility to define their own, personal bundle of options. Liberty Mutual is one such example of this.

According to research by Walker, 86% of consumers would be willing to pay more for a better experience. So don’t get fixated on price; find ways to add value that consumers may appreciate far more than its actual cost to you.

To learn more about pricing and value check out “Sourcing & Services Matter: Why Price Alone Won’t get your Customers to Stay.”

Don't get fixated on price; find ways to add value that consumers may appreciate far more than its actual cost to you. #CEX #CRM #Trust @C3Centricity Click To Tweet

 

#4. Renovation is more than for buildings

Most CPG companies have targets for Innovation & Renovation, sometimes 30% or more of annual revenue. They also have mid-term innovation pipelines which can include partnerships in joint ventures with what were previously only competitors. These help each partner by building on their individual talents and enable them to develop better products and services.

For hospitality, innovation can no longer be purely physical or rational; we need to consider more emotional and relational ways to satisfy. The Rosewood Mayakoba resort, already mentioned above, is one good example of this; the Art Series Hotels are another. Check out the latter’s recent ad to understand better how they excel at understanding their guests: Art Series Overstay Checkout, or why not review the picture posted on MayaKoba’s Facebook page?

If you want more ideas on innovating, then read “A Customer-First Approach to Successful Innovation.”

 

#5. Loyalty is never really won

One of the reasons that I believe we need to work on building engagement and in all industries, not just hospitality, is because customer demands are constantly evolving. What satisfied them yesterday can bore or even disappoint today.

To acquire and retain our customers, we need to be constantly upgrading our products and services, so that they will be surprised and delighted. This means that loyalty is much less long-term than in the past and lifetime value is now measured in months or a few years, rather than in decades.

To acquire and retain our customers, we need to be constantly upgrading our products and services, so that they will be surprised and delighted. #Customer #CEX #CRM #Satisfaction @C3Centricity Click To Tweet

 

#6. Dialogue, don’t just communicate

In today’s connected world, customers want a say in not only what they consume, but also where, when and how they are marketed to. They want a say in what they buy and expect a rapid resolution to any queries or complaints. According to a recent Edison Research, 20% expect a company to answer to their social media posts within 15 minutes, 42% within the hour! That means 24/7 monitoring for all organisations if we are not to disappoint our most engaged customers.

We must have 24/7 monitoring if we are not to disappoint our most engaged customers. #CEX #CRM #Customer #Engagement @C3Centricity Click To Tweet

 

These are just six of the many ideas I shared during a presentation I gave to the faculty of a world- renowned hospitality school. If you are interested in seeing the full talk, I am happy to share it. Just email me with your details and what your biggest business challenge is currently in adopting a customer first strategy.

Are you too struggling to improve your own customer centricity? Whatever people-facing industry you are in, we would welcome the chance to support and catalyse your efforts. Please check out our website for more information about our services and training courses, or contact us here.

Even the Police Can Get it Right! Adopting a Customer First Strategy

In most countries, the Police have a love / hate relationship with their population. You can imagine my surprise, therefore, to find myself writing about how they appear to be adopting a customer first strategy in Switzerland!

Let me explain. They have recently introduced many new-style speed radars in the villages around my home town in Switzerland. The elements are not that new per se, I know, but last week it suddenly hit me why they are so effective. They are customer centric. They have adopted a customer first strategy! And that’s why I want to share this story here.

 

Image: Pixabay

One of the reasons why the Police are disliked in many countries, is because of their speed radars.

Whether they are permanent fixtures as on the right, or temporary ones, we all dislike the flash that tells us it’s too late, that we’ve been “caught.”

We then wait a few days, to weeks or even months, naively hoping that it wasn’t our car that was flashed. But eventually the letter arrives asking us to pay a fine.

 

I think the worst of them all are the laser guns that the Police have been using for many years now. We don’t even know we’ve been flashed until the communication arrives at our home, or we are pulled up a few hundred meters down the road.

Example of a customer first strategy in action with a smiley traffic radar
Image: Alibaba

The relatively new types of radar that are being introduced in my home area don’t flash either. But that’s because we never get “caught” as such.

You see they measure our speed and give us immediate feedback. Take a look at the photo on the right; I’m sure you’ve seen such installations before.

Now if we make the assumption that all four types of equipment are to get road users to decrease their speed in critical areas – and not just to gather money as I’ve heard suggested – then the results must vary widely.

 

 

So let me share my thoughts from the perspective of a customer first strategy champion.

 

Permanent radars

Everyone quickly knows where these are located. In fact, in some countries there are warning signs and they are actually highlighted on the GPS mapping system you may have in your car.

In some places the permanent radars are not always functioning, as the cameras inside them are rotated between installations. It is therefore not possible to know which radars are active and which aren’t. The Police then get a multiple deterrent effect, beyond the number of cameras they have purchased.

speed radar warning
Image: Pixabay

What I have observed with these radars is the following behaviour. The traffic is rolling along “normally” and then everyone brakes hard just in time to pass the radar below the speed limit. They then speed up again to continue along the road.

This phenomenon is in fact well known by the Police. They sometimes add a second, mobile radar a few hundred meters down from the permanent one, to catch those who are once again speeding!

Even the warning signs, as on the right, don’t have much impact on drivers and the speed limitation is quickly forgotten.

Whether they get caught with the first or second radar, the impact on the end customer, the driver, will be the same.

They feel angry and frustrated, which makes them less attentive, and may result in them driving more erratically. They may even speed up feeling that now they have been caught, there is nothing more to lose!

Not good for the driver nor the Police’s objective of maintaining a slower, safer speed in the vicinity. Clearly not a part of a customer first strategy!

 

Temporary radars

Temporary radars are similar to the permanent ones, but it usually takes a day or two for people to become aware of them. Their reactions will then be similar to the permanent radars, with the slowing down and speeding up of their driving behaviour.

This is not good for traffic fluidity, nor for slowing it down. And the drivers’ reactions if flashed will be just the same. Again not good for anyone and clearly not a demonstration of a customer first strategy.

 

Laser speed guns

Police laser gun
Source: Wikipedia

These are probably the most hated by drivers. They have no knowledge of where they are, nor even that they have been flashed. It could be argued that they are therefore not a deterrent to speeding, but a pure money-making exercise for the Police.

I admit that the Police do tend to stand in certain places where speeding is a common occurrence. Knowledgeable, local drivers look out for them when approaching the areas and adapt their speed accordingly. But overall they are not really a device to deter speeding and therefore the associated sentiments are very negative. Once again this type of radar would not be used if the Police have adopted a customer first strategy.

 

Speed Information

The speed radar that prompted this post measures your speed but then immediately gives you feedback. You are rewarded with a happy green smiley if you are within the speed limit. Or a red frown with a message to slow down if you are speeding.

I have witnessed people approaching these devices and slowing down whether or not they are speeding. And they don’t speed up after they have passed them either. How’s that for positive influence?

Also, if the drivers are like me, they also get a feel-good feeling for being congratulated for not speeding. I find these by far the most efficient at controlling traffic speed and fluidity, but of course the Police don’t get any money.

 

What about your business?

So what does this example have to do with your own customer first strategy? Everything. Because my question to you, as it is to the Police, is what do you really want for your business?

In their case, I am assuming they want to reduce the speed of drivers in certain areas. In this case, the customer-centric approach, which has by far the most success at slowing drivers down to within the speed limit, is the information panel. If that is their objective, then the Police in every country should adopt these new style radars.

But I think that if those who consider speed checks to be a mere money-making operation are right, then the Police will continue to use one of their other options. But they must then accept the negative consequences on so many levels.

So what do you yourself want for your business? If you are sincerely customer centric, you will stop any practices that you know your customers wouldn’t approve.

What do you want for your business? If you are sincerely customer centric, you will stop any practices that you know your customers wouldn’t approve. Click To Tweet

Half filled packaging – gone. False claims and promises – deleted. Getting credit card details for free trials in the hope customers will forget to cancel and you can automatically charge them for a service that haven’t specifically requested. Not any longer! These all might get you that first sale but you won’t get a loyal customer.

 

And you? What do you want your customers to think and feel about your brand? What are the objectives you have for your business and customers? These questions are only a small part of the second step of our highly successful 7-step insight development process called CatSight™. If you’d like to know more about it, or get trained in insight-development, or adopting a customer first strategy, just let me know – I’m only a call away.

Goodbye CMOs, Your Time is Up: From Brand Building to Business Growth

It is more than a year ago that Coca-Cola did away with their CMO in favour of a Chief Growth Officer. Was it a wise move or foolhardy?

In a recent interview with Marketing Week their global vice-president of creative claims that it has “broadened” the company’s approach to marketing. Well something is clearly working for Coke; at the end of last month it reported higher-than-expected financial results for Q3 2018. So what do you think? Will you replace your CMO?

 

HOW MARKETING HAS CHANGED

Marketing is an old profession. It’s been around for hundreds of years in one form or another. If you’re like me and are fascinated by how change happens, then I’m sure this complete history of marketing Infographic by Hubspot will be of interest.

With the arrival of digital marketing in the early 80’s, many companies began to take a serious look at their marketing. They realised that their primarily outbound strategy had to change. Their consumers didn’t appreciate being interrupted in their daily lives. However, with the creation of inbound marketing, they still irritated their consumers with spammy emails, popups and “subtle” cookies for following their every move. No wonder the EU felt inclined to develop its GDPR (General Data Protection Regulation).

What has changed during 2018 is marketing’s deeper awareness of, if not complete adherence to, what customers like and dislike. The major trends that we have seen this year and their impact on marketing, include:

  1. Chatbots, especially through Facebook Messenger and WhatsApp, to catch consumers on the go with highly personalised messaging.
  2. The use of Voice. With the battle between Amazon, Microsoft and Google in the voice search and commands domain, customers can get answers just by asking. These are a huge challenge for businesses, because being on the first page of search results is no longer enough; you have to be first!
  3. Video is taking over social media, with its rapid rise on YouTube, Twitter and Facebook.
  4. Influencer marketing is giving way to customer journey mapping with the increased detail that IoT can provide. Many organisations have moved their marketing plans to mirror their customers’ path to purchase. Or rather paths, as personalisation continues to trump mass engagement.
  5. Blockchain technology has made marketing results more transparent. This is good for business as customers see how their data is being used, which builds trust.

Have you taken these megatrends on board and adapted your marketing this year? If not, why not? 

 

BRAND BUILDING

In the past decade or so, many large CPG companies such as P&G  and Nestle renamed their Marketing departments as Brand Builders, in the hope of adapting to this new world. They failed, miserably. I believe the reason they failed is because they continued to run their marketing in the same old way. With very few exceptions, their communications are still all about them  and their brands  and very little to do with their consumers.

Luckily, some more progressive consumer goods companies realised that to satisfy the consumer they had to do things differently. They were the ones that moved to consumer centricity. Or to be precise, they started on their journey towards putting the consumer at the heart of their business. Consumer centricity is not a destination because consumers are constantly changing and their satisfaction never lasts for long. Therefore the aim for satisfaction and delight will never end. 

It is interesting to see how Coke’s change to a growth officer pans out. I don’t see other companies following for now, so I suppose they are prefering to just wait and see.

Consumers are constantly changing & their satisfaction never lasts for long, so the aim for satisfaction & delight will never end. #brand #Marketing #CEX #CRM Click To Tweet

We have taught our consumers far too well! They understand a lot more about “marketing” than they used to. They understand that companies have marketing plans and regular promotions, so they wait for their price offs. They realise that in today’s world, products have become more and more similar. Their format, colour or perfume may be different, but their performances are pretty comparable.

That’s why consumers now have a portfolio of brands from which they choose in many categories. They are far less likely to be loyal to only one brand than they used to be. They have come to expect constant innovation so they quickly adapt to the once novel idea and start searching for the next big improvement. According to Accenture’s Customer 2020: Are You Future-Ready or Reliving the Past?” almost a half of consumers believe that they are more likely to switch brands today compared to just ten years ago.

Consumers believe that they are more likely to switch brands today compared to just ten years ago. @Accenture #CEX #CRM #Consumers #Marketing Click To Tweet

 

CUSTOMER CENTRICITY

Marketing needs new skills
SOURCE: Korn Ferry CMO Pulse Report 2015

In response to these ever more savvy customers, marketing has to change, to become smarter. In the  2015 Korn Ferry CMO Pulse Report, it is confirmed that marketing needs new skills. The most sought-after skills today are analytical thinking and customer centricity.

 

Marketing is now as much a science as it is an art. We must take full advantage of the enormous quantity of data about our customers that is now available; we can no longer rely on creativity alone to connect.

 

Companies which place the customer at the heart of their business are easy to recognise. Their websites are filled with useful information, entertaining videos and games, and their contact page provides all possible forms of communication.

Their advertising is clearly customer centric and emotional, with the customer and not the brand as the hero. They involve their customers in many aspects of their business. (see  “The exceptionally easy and profitable uses of co-creation” for more on this topic.)

If you’re not sure how good your customer centricity is, just take a look at your own website, especially the contact page. Or why not complete the C3C Evaluator? It’s free!

 

MOVE BEYOND BRAND BUILDING

Whether you are still doing marketing or have already moved to brand building, here are a few of the essential first steps that you need to urgently make to adopt a more customer centric approach:

  1. Place pictures of your customers everywhere, so people start to naturally think about them. This can be at the beginning and end of presentations, in your office reception, on the lift doors or anywhere employees spend time.
  2. Whenever a decision is taken, ask “What would our customers think about the decision we have just taken?” This will avoid such practices as hiding price increases by reducing pack content without telling the customers. Or asking credit card details for the use of a “free” trial, in the hope that the customers will forget and be automatically charged for a service they may not want. What would our customers think about the decision we have just taken? If they wouldn't like it, it is wrong. #CEX #CRM #Customer #Business #Decision Click To Tweet
  3. Review the language of your website. If there are more “we’s” than “you’s” then you know what to do. While you’re online, check out your contact page for possible improvement opportunities, as detailed above. Look at your website; if there are more 'we's' than 'you's' then you know what to do. You're not thinking customer first. #CEX #CRM #Customer Click To Tweet
  4. Take a look at your target customer description or persona. When was it last updated? If you don’t even have a written document clearly describing them, then use C³Centricity’s 4W™ Template until you develop your own. (you can download it for free  here)
  5. Examine your advertising. Who is the hero? Consider developing concepts that are more customer centric, by making use of your understanding of them and their emotional triggers.
  6. Spend time with your front-line staff and customers. Make use of call centers, in-store promotions and merchandisers to talk to your customers, as well as to the employees who connect with them. They will almost certainly be able to tell you a lot more about your customers than you yourself know.
  7. Share your latest knowledge about your customers with the whole company. Help every employee to understand the role they play in satisfying the customer. Make them fans of your customers and you will never have to worry about such questionable practices as those mentioned in #2.

 

These are your starter tasks for moving from marketing and brand building to adopting a customer first strategy. If you’d like more suggestions about moving to a future-oriented marketing approach, download a free sample of my book “Winning Customer Centricity”. The fun drawings in this post come from the book!

This post is based upon and is an updated version of one first published on C3Centricity in 2016.

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

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

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

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

 

Customer Centricity

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

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

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

It then goes on to say:

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

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

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

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

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

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

 

The Importance of Customer Satisfaction & Understanding 

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

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

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

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

 

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

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

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

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

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

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

 

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

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

Customer satisfaction shows what customers want
National ACSI Q1 2018 USA

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

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

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

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

 

Key Takeaways

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

 

 

#1. Who is your customer?

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

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

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

 

 

#2. What business are you in?

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

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

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

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

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

 

#3.Who are your major competitors?

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

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

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

 

 

#4. What do they buy?

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

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

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

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

 

#5. What does your customer need?

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

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

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

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

 

#6. What do they think of your price?

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

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

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

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

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

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

 

 

#7. What do they think of your packaging?

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

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

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

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

 

 

#8. What do they think of your product?

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

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

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

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

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#9. What do they think about your advertising?

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

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

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

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

 

 

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

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

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

 

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

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

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

 

 

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

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

 

#12. Why do they buy?

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

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

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

 

 

#13. Why do you sell?

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

 

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

 

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

 

 

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

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

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

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Head of Marketing, How Can You Keep Your Job When Most CMOs Are Losing Theirs?

What does a Head of Marketing (CMO) do in their average four-year tenure to ensure that they keep their job for longer?

Did you know that CMOs have the shortest average term of office of any chief in the C-suite, according to a recent report by Korn Ferry? And even more shocking is the fact that in the consumer goods industry it is even lower at just 3.6 years! So just how long have you been in your position?

A 2012 global survey by the Fournaise Marketing Group provides one possible explanation. It highlights the ongoing tensions between CEOs and CMOs. A huge 80% of CEOs don’t trust or are unimpressed with their CMOs, compared to just 10% for their CFOs and CIOs. Why is this? Perhaps it’s because CEOs don’t understand the role of a CMO or is there still an issue with the ROI of the marketing budget? I’ll let you be the judge of this in your own situation.

 

The Opportunities

Let’s start at the beginning. Marketers, what opportunities are there, that you can keep your job? Despite the short lifespan of a CMO, you’ll be pleased to hear that it’s not all bad news. While the position is plagued by high turnover, this could also be because CMOs are highly visible for promotions or a steal by the competition. Nice to feel wanted, isn’t it?

CMOs are highly visible, which is great for promotions or a steal by the competition. #CMO #Marketing Click To Tweet

It is therefore important that a new CMO quickly makes an impact. More so than any other c-suite function, bar the CEO of course, who sometimes faces almost immediate criticism by shareholders and the financial world, upon being named.

Another piece of good news for the head of the marketing function is that being on the executive board they have access to resources. The bad news is that as the CMO is a member of the EB, management expects them to make (profitable) changes fast. And even more so if they have just been hired! The board trusts the new CMO to analyse the situation, identify what needs to be done, develop the plan to do it and then take actions. And all of this in their first 3 months or so!

Are you or have you yourself been in exactly this situation? Tough isn’t it? That’s why many CMOs hire a supportive advisor or sounding board such as myself to accompany them on this stressful early part of their journey. (If you like, you can book a complimentary session with me here)

In the meantime, here is what I would do if I were in the position of a new CMO, or one who is reaching their four-year breakpoint and is not ready to leave quite yet.

 

The Challenges

The latest Forbes research into the CMO function highlights three major areas where the head of marketing’s remit now goes far beyond the previous traditional, more creative areas. In the report they mention three changes that CMOs are grappling with in an effort to impact both inside and outside their organisation:

  1. How the relationships between brands and customers have changed.  The most influential CMOs lead digital transformation with a customer-first mindset.
  2. How brands can offer the very best customer experience. Top CMOs are championing the voice of their customers and aligning their organizations around better customer experiences.
  3. How brands can become more human and approachable. CMOs are no longer afraid to raise their voice or take a stand on political and social issues – because that’s how they connect and build trust with their customers. Take a look at the Forbes list of The World’s Most Influential CMOs of 2018 to see inspiring examples of this.

The report concludes:

The world’s most influential CMOs recognize that customer experience is the new brand, and inspire marketers everywhere to ask: How can we better know and serve our customers — not as a collection of data points, but as people?

How can we better know and serve our customers — not as a collection of data points, but as people? @Forbes #CMO #Marketing Click To Tweet

However, the most influential CMOs also recognize that their ultimate job is driving business growth. And to do that, effective CMOs play a larger role, taking on additional responsibilities in areas as diverse as internal culture, talent, IT purchasing, and customer engagement. Talk about broadening their skill-set!

 

So how should CMOs, old and new, tackle their businesses from a fresh perspective? I suggest looking at the following five areas:

1. Mission and Vision

These are the very foundation of a company and are the starting point for any employee who wants to understand their role in an organisation, not just the CMO.

For the head of marketing however, it is perhaps even more important, since it is their actions that will bring them to life for consumers. And don’t forget that this also includes developing the corporate brand as well!

The mission should be played out in every product, service and communication that is launched. If it doesn’t, then those planned actions should almost certainly be reconsidered.

Or perhaps it’s the brands in the current portfolio that are not a good fit for the company’s aspirations. If this is your case, then a brave and determined effort is needed to admit which ones are not supporting current values and make plans for moving them out. This can be done either through discontinuing them or by selling them to other organisations which have less lofty ambitions.

One example of this that was recently in the news comes from Nestle USA. Nestle has for many years had the ambition to become a nutrition, health and wellness company, not “just” a food and beverage company. This past month we saw them (finally) selling their U.S. confectionery business to Ferrero. CEO Mark Schneider said of the sale:

“This move allows Nestlé to invest and innovate across a range of categories where we see strong future growth and hold leadership positions, such as pet care, bottled water, coffee, frozen meals and infant nutrition”.

Companies that ignore making hard portfolio decisions, risk diluting their impact, their image and more importantly their equity. The various top 100 most valuable brand tables only highlight this issue. Brands appear on the leaderboard but sometimes fail to remain there.

In the Brand Finance list Amazon took over the top spot from Google this year. And Apple then pushed them into third place. What makes Amazon more valuable than Google? Customer understanding and building a relationship based on solutions. Beyond being an online retailer, Amazon includes a cloud infrastructure, electronics, music and video streaming. Compare this to Google’s search and cloud technology; pretty limiting if you ask me.Companies that ignore making hard portfolio decisions, risk diluting their impact, their image and more importantly their equity. #marketing #brand #Business Click To Tweet

Now it is true that Google’s parent company Alphabet does dabble in other sectors such as smart-home technology, self-driving cars, aging research and more, but almost all these new developments are losing money. Identifying and responding to customers’ needs is clearly one of Amazon’s real strengths and has allowed them to expand into distant industries far from their origins of the simple online bookstore they were just 25 years ago.

In Forbes’ Worlds’ Most Valuable Brands list, Apple leads ahead of Google and Microsoft, with Google in fifth position. The Forbes list is dominated by tech companies because I believe they are more in line with consumers needs today. These companies are also relatively new and thus have missions and values which are closely aligned with our new-age world. However even this list highlights the struggle Google is having to increase its value in the same way as Amazon or Apple. I wonder how their CMOs are planning to correct this. (and if they’d like my help!)

The vision and mission of an organisation can sometimes be difficult to live up to, but isn’t that the case for anything of value? This is why I see it as the first thing for a new CMO to get their head around and fully embrace – updating comes later when the EB trusts them enough to allow them to suggest changes.

The vision and mission of an organisation can sometimes be difficult to live up to, but isn't that the case for anything of value? #Business #Vision #Mission Click To Tweet

 

2. Talking to (more) People

Once the (new) CMO understands the company’s mission and vision, it is important for them to evaluate how well these are integrated into the daily working of all employees.

This means gathering qualitative information from key players from the board on downwards, at global, regional and market level. Including market heads, business unit heads, marketing heads, brand managers, sales heads, operations, innovation, R&D, market research and insight provides a good overview. The more diversity in perspectives gathered the better, so the head of marketing should aim to talk to people from different departments, categories, levels and geographies (where relevant).

Have you noticed how most consultants that start working within a company will usually commence their audits by speaking with many people internally? They then come back and share a multitude of findings and information that we should probably already have known! Frustrating perhaps, but a useful pointer at what all CMOs should be doing – regularly – in order to be up-to-date with the organisation and ensuring they add value everywhere.

Have you noticed how most consultants start their audits by speaking with many people internally? Copy them for increased understanding and impact! #business #impact #CXO Click To Tweet

I don’t know how many times I have heard a new client say to me “If only we knew what we know.” That’s why we external consultants have it relatively “easy.” We can ask the naive questions that perhaps a new CMO is too shy to pose and a longer-serving CMO is afraid to admit they don’t know.

Well, why not change this by taking the decision to ask the naive questions you have about your business – even if you are not new to your job? You can make your fact-finding less formal by doing it over a simple coffee or lunch. This way your colleague is unlikely to see that you are actually drilling them for information! A definite win-win as you will be building your reputation and internal relationships at the same time.

“Dare to ask the naive questions you have about your business. You have everything to gain.”

 

3. Analysing (more) Information

After the qualitative information gathering, and having identified any possible issues and opportunities the business has, based on the interviews and their own analysis of the situation, it’s time to put some metrics against them.

Some organisations are very rich in terms of data and know it. But many more are rich and don’t know it, as previously mentioned.

Some organisations are very rich in terms of data and know it. But many more are rich and don’t know it. #information #Data Click To Tweet

The information you need will depend upon the business you’re in, but there are some basics that all companies have or should have, ideally with the trends of them too:

  • Market size, in total and by geography.
  • Category size, shares.
  • Consumer (customer, client) profiles.
  • Brand image and equity.
  • Segmentation results.
  • Customer lifetime value.
  • Communications’ awareness and performance
  • Website / SEO performance

The analysis of these metrics and especially their trends will help identify the facts from the feelings. Not to say the latter are unimportant, but they will need addressing separately. With this analysis done, the CMO can start defining strategies and prioritising actions.

One exciting improvement to information analysis that is now available to any business is the use of AI and machine learning. A recent article from Bain & Co explores the opportunities that it brings to marketing mix optimisation in particular. They call it MMO 3.0. The article makes a great read, but their conclusion suffices for here. They end by summarising the major elements of analysis that CMOs should keep in mind:

“Stay practical and in control of your data. Use balanced analytic approaches. Don’t let analysis get too far beyond action. Cultivate analytic marketers. And focus on incrementally better insights and predictions that you understand, rather than big-bang black boxes you don’t.”

I believe that that these points are valid and valuable for all marketers to remember. As AI and machine learning distance us all from the data sources, we are at risk of losing the means to make sense of it all. And we are all so overwhelmed by the data tsunami, that we often forget to keep it simple – so KISS your analytics and look for small, steady advances in your information learnings.

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4. Evaluating New Team Skills

Most CMOs will join an existing team, so I will not speak about how to create a dream marketing team. (However I would be happy to jump on a Skype if that is your situation) It will therefore be necessary to review and evaluate the members of your inherited team.

Hold off the temptation to immediately start hiring colleagues from your previous company for at least six months and ideally a year or more. Give yourself and your team the necessary time to get comfortable working together. This will also enable you to correctly identify any missing skills; sometimes good people are just in the wrong jobs.

As a recent article in The Marketing Journal mentions:

"The war for marketing talent is escalating as companies demand people skilled both in the art and the science of marketing, and who understand the emerging realities of empowered customers in a social media universe."

Despite what the people who attended the Cannes Lions in the South of France last week may think, creativity alone is no longer enough. Marketers need a whole list of other skills.

The war for marketing talent is escalating as companies demand people skilled both in the art and the science of marketing. #Marketing #CMO #Brand Click To Tweet

I came across an interesting list (thanks to @ValaAfshar from Salesforce) of the 20 talents that the ideal team should have. I think it pretty much covers the needs of the modern marketing department but you be the judge:

1 storyteller 11 entertainer
2 designer 12 alchemist
3 builder 13 connector
4 magician 14 negotiator
5 stabilizer 15 teacher
6 fighter 16 juggler
7 explorer 17 scientist
8 dreamer 18 futurist
9 mentor 19 mathematician
10 recruiter 20 journalist

Now clearly many of you reading this article don't have such a large team that you can include all these positions in addition to brand and communications staff. Nor do you have the possibility to hire more members to a smaller one, so you will have to think creatively. However as everyone has far more talents than the one for which they were hired, I am sure you will find people in your current group who can fulfil all or most of these positions. (How about a storytelling scientist?)

 

5. Improving Processes

All organisations have ways of working and hopefully many of them have been developed into processes. I believe these processes are what make a company more or less successful. This is because the methods used and any information collected is consistent, which makes product and service management that much easier. It also makes results comparable and the process repeatable over time.

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”Will Durant - not Aristotle!

As for the CMO, their process is their whole job. It involves reviewing the information mentioned earlier and then taking the following steps:

  1. Prioritize: Every position will uncover more tasks to do than can be handled in the average working day. That's why priority setting is so important. For the CMO this will mean identifying the tasks that will support the company's objectives as well as its mission and vision.
  2. Strategise: Next they will build strategies to meet these objectives in the most resourceful way. With such emphasis on ROI for marketing, this will include paying attention to the budget split and people allocation. I would highly recommend reading this article by Smart Insights' cofounder Dave Chaffey on the differences between strategy and tactics - with some useful examples included.
  3. Structure: As already mentioned having a range of skills in any team is important, as is talent development. CMOs must ensure they are surrounded by a capable team able to implement their strategies with appropriate tactics and actions.
  4. Motivate: Every job has its set of challenges and with marketing being challenged to prove its ROI, motivation can take a hit. The CMO's task is to motivate both their team and internal peers to the opportunities provided by marketing to impact and grow the business. No man is an island and the CMO needs the support of the c-suite, and especially the CIO and CFO to support their plans.
  5. Excite: Marketing excites me, but I know not everyone feels the same. The function can be seen as having too much fun and not being that serious, especially at the Cannes Lions time of the year. However since marketing will impact most other functions within an organisation, it is essential for the CMO to excite other departments to support their carefully laid-out plans.
  6. Lead: This is often one of the most difficult things for a CMO to do - really! Since they are usually the most experienced professional in the marketing group, it can be tempting to end up doing a lot of the work that should be handled by the team. Yes it can always be done better, but if the CMO manages all the above steps then they will not need to get personally involved in the day-to-day tactics and actions. If you are still doing everything from planning to sweeping the office floor (ladies, you know what I mean don't you?) then it's time to check which of the above steps you need to improve - and yes I'm actually referring to all female c-suite members and managers in general here!
If you're doing everything in your department from strategy to switching off the lights as the last one out, then you're probably a woman! #marketing #CXO Click To Tweet

Of course, the CMO also has a lot of other processes that they lead, such as for communications development, innovation and scenario planning. However, for this post I wanted to concentrate on the role of a new CMO and how they can quickly make their mark. If they get through their first 90 days and then 3+ years, they will have plenty of time to address these other very specific processes. Other C3Centricity posts on these topics will certainly help them.

So marketers, have I answered your question about how to keep your job? Are these five steps sufficient to make a difference? Personally I think so - but only if they are followed with real actions and change. After all making an impact is the name of the game in any profession but especially for one that previously relied on creative juices alone. Do you agree? What changes are you making or would you like to see made in your own organisations?

 

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Why You Struggle To Meet Your Business Objectives (And how to Crush them)

“There may be customers without brands, but there are NO brands without customers!”

I am often quoted as saying this and yet I still find most companies spend more time thinking about their brands than their customers, which is alarming to say the least! And you? 

Last week I spoke about identifying the exact category in which you are competing. If you missed it, then I suggest you read “You’re Not Competing In The Category You Think You Are!” before continuing. You will never be successful if you don’t understand the category people put you in and the competitors they compare you to.

In the post, I explain that we often work with a category definition that is based upon industry norms rather than that of our customers. For instance you might segment by price or demographic groups, whereas your customers group brands by flavour or packaging.

Understand how customers see the category and its sub-segments, can make a huge difference to your success in satisfying your own target customers.

This week I want to continue the theme of taking the customers’ perspective by speaking about our own business objectives. You know, the topics that make up our business and marketing plans with such lofty ambitions as:

  • Grow our market share to X%
  • Become the category captain/leader in Retailer Z
  • Launch three new brand variants

All of these may be valid business objectives, but they are not customer focussed. They start from the business perspective.

Growing market share may be a valid business objective, but it's not customer focussed. Click To Tweet

Adopting a customer-first strategy means turning business objectives into customer aims, by taking what is sometimes referred to as a bottom-up, rather than a top-down approach.

Here are some questions to help you identify your customers’ aim, their attitudes and behaviours that you are trying to influence:

1. Who are you targeting?

Every brand has a target audience. This is a sub-segment of all category users. Yes you do need to segment users and target the most relevant and most profitable group of them for your brand, and then ignore the rest. If you are trying to appeal to everyone you end up pleasing no-one!

“If you are trying to appeal to everyone you end up pleasing no-one!”

2. Why are they currently using your competitor’s brand?

In order to attract your competitors’ customers you need to understand their motives, why they are preferring the competitive brand to your offer. This information can come from many sources, such as market research, social media, or care centre contacts.

3. What reason might make them consider switching?

If you are to appeal to your competitors’ customers then you must be able to satisfy them at least as well, and ideally better than does their current brand. What do you know about the criticisms customers have of the brand? What benefits do you offer and they don’t, or only partially? Could these be appealing to some of their customers?

4. Why do you believe that you can appeal to them now but didn’t before?

Do you have benefits that you have never highlighted in the past? Have you improved your product or service to now make it a better option? The reasons for switching must be both obvious and appealing in order to attract new customers to your brand.

Answering these four questions will enable you to turn a business objective into a customer aim. You now have all the information you need in order to be able to attract some, if not all, of your competitors’ customers.

Answer four simple questions to turn a business objective into a customer aim. You will have all the information you need to attract some, if not all, of your competitors' customers. Click To Tweet

Let’s now look at a (necessarily) simple example.

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Business Objective: Grow our market share

This is probably one of the most common business objectives I have come across. Is it yours too?

In order to grow market share, we first need to answer the four questions mentioned above, and turn the business objective into a customer aim:

1. Who are you targeting? Suppose you sell a carbonated soft drink. At first, you may think you are selling to all soft drink consumers. However, from your Usage & Awareness data (or observation at retail) you know you are attracting 18-35 year old men, who live in main urban areas of your region. You also know that there are two competitor brands who attract the same consumer group, Brands X and Y. Brand X is the same price as your brand and is sold in similar can packaging. Brand Y however is higher priced and sold in glass bottles.

2. Why are they currently using your competitor's brand? From your brand image study, communications analysis or in-store interviews, you know who the consumers of Brand X and Y are. Hopefully you also know why they are using that brand rather than yours.

Do you have any of the benefits for which they are searching? If so, then you may be able to appeal to them. If not, then they are certainly not the best source of potential new customers for your brand.

For this example we will assume that consumers like Brand X because it is sweet and has small bubbles, whereas Brand Y is less sweet and is very fizzy.

3. What reason might make them consider switching? Consumers of Brand X are sensitive to fashion and the latest trends. Brand Y is a traditional brand that has been around for decades. Brand X was launched in the last five years and its can is bright, modern and trendy looking.

4. Why do you believe that you can appeal to them now but didn't before? You launched a new campaign that went viral on social media. Everyone if talking about it and it has positively impacted your brand's image. Whereas you used to be seen as a cheaper version of Brand Y, you have revitalised your brand's image and are now perceived as much trendier.

Customer Aim: Attract consumers from Brand X who are looking for a trendy, carbonated soft drink that comes in a can and is affordably priced.

As you can see from this objective, it is far more focused and is now based upon your potential customers' aim. This makes it both more actionable and easier to implement.

I hope you found this exercise useful and will try it yourself in your next marketing or business plans. If you do, then do let me know how it goes. You can email me or simply add a comment below and share your experiences.

Final Thoughts

Your plan may say that you want to grow your business, but in reality this objective is ongoing. Every year you are usually looking to grow your brand - unless of course you are "milking" an older brand as you allow it to die off.

In order to grow, you need to both maintain your current customer base, as well as attract new ones. It is well documented that it costs a lot more to acquire a new customer than it does to keep one.

And yet most organisations continue to spend more on acquisition than retention. To see the latest numbers on this, I suggest you check out this awesome infographic by Invesp that was recently shared by Neil Davey on MyCustomer.

According to Gartner's latest CMO Survey US CMOs continue to find more success with customer acquisition than they do with retention. They reported a 3.1% year-over-year increase in customer acquisition performance versus a 1.9% increase in customer retention performance.

The explanation could be that they always have growing market share as a company objective and think that they therefore need to invest more. Or perhaps it's because they take the time to attract new customers, but then don't invest to follow them over time, in order to identify their changing needs and desires.

While I agree both are important, with loyalty levels decreasing, organisations must invest more in retention than acquisition, at least in my opinion. What do you think?

While loyalty levels are decreasing, organisations must invest more in retention than acquisition, at least in my opinion. What do you think? Click To Tweet

Growing market share can only come from attracting more customers, getting your current customers to buy more, or getting your customers to spend more. It's time you considered investing (equally?) in all three areas.

Of course, you can also grow market share by maintaining your customers in a declining category, but that needs a totally different approach and more pertinent questions. If you're interested, then I'll happily cover this in a future post. Just let me know.

Customer Centricity is Today’s Business Disruptor (Insights are its Foundation)

I’ve just returned from a speaking invitation in Las Vegas. It was an incredible Symposium run by Sitecore and I was blown away by the importance placed on customer centricity during the whole event!

From the opening keynote by Sitecore’s new CEO Mark Frost, to the second-day keynote by Kirsten Newbold-Knipp from Gartner, everyone in this tech and data heavy conference understood that data is only as good as the use you put to it. Do you?

We are all excited by the wealth of information available to us about our customers, from the IoT as well as people’s behaviour on the internet. In fact, data gathering is no longer an issue; it is its management, analysis and above all understanding to turn it into actionable insights that is today’s challenge.

I believe that the reason most organisations today are drowning in data and thirsting for insights as I am often quoted as saying, is because they are more excited by data than people.

“Organisations are drowning in data and thirsting for insights”

And yet data usually comes from people and their acts, is analysed by people, so that businesses can have more impact on their customers’ attitude and behaviours. It is therefore vital to turn that wealth of information into actionable insights. That’s why I want to share my 7-step process for doing just that with you.

I call it CatSight™

and the acronym always causes a few giggles as I’m sure you can imagine. After all, business is a serious topic, which is why I try to find ways for us all to find reasons to laugh in all this seriousness.

I choose the name CatSight™ because I thought it is not only memorable but also has a serious relevance to what insight developers do.

Cats have an acute vision, particularly in the dark. They are good at listening because their ears turn 180 degrees. They are highly sensitive – just ask an owner how their cat reacts when they are sad or ill.

Seeing in the dark, listening skills, sensitivity and empathy for the customer are essential skills for all insight developers.

Seeing in the dark, listening skills, sensitivity and empathy for the customer are essential skills Click To Tweet

So here are my 7-steps to insight development – and note that information gathering is only step #6!

If you react to business questions by immediately running a market research project, then please read on. It could save you a lot of money and time!

Using my method, you only start spending money on running a survey in step six – and then, only if you have identified a gap in your knowledge of the situation. Many organisations don’t know what they already know and what is already available within the company that they are unaware of.

This 7-step process will save you money because you will run less research AND make better use of all the information already available within the organisation. That’s an immediate improvement in the ROI of your information gathering.

7-steps to insight development, but information gathering is only step #6! #customer #insight Click To Tweet

C = Category

Whenever you want to develop insight, the first task is to decide on the category you want to study. At first sight, this may seem obvious, but in many cases, it isn’t as clear as you might at first think.

Category identification for developing actionable insightsFor instance, suppose you are looking to launch a new juice flavoured soft drink. You may think that you are competing with other juices or perhaps other soft drinks.

In working with one client in just such a situation, we actually found that their main competitor was an energy drink! The reason was that they were both seen as being for lively, fun people who needed a kick – whether from caffeine or healthy fresh ingredients with added vitamins and minerals.

If we’d only looked at other fruit flavoured soft drinks we would have missed a whole – and large – section of category consumers.

This shows the power of taking the consumers’ perspective, especially when segmenting a market. But more about that in a moment.

 

A = Aim

Once you know which category you should be trying to understand better, you must consider what the aim or objective of your initiative is towards the customer. Are you looking to change their attitude or behaviour? Yes, of course, these are linked, but there will be one you are trying to influence more than the other.

Then you need to translate your objective into the words of the customer, or at least a description of your objective in how it impacts the.

For instance:

How can we grow the market share of Brand “A”?

This could be written as: How can we attract consumers from competitor Brand “X” who are looking for a low sugar CSD?

You will notice that the second is far more focused and will deliver more relevant results than the first.

A customer-centric objective is more focused & will deliver more relevant insights than biz objective Click To Tweet

 

How can I expand my business?

This could be written as: Which of my customers would be most interested in my new service offer and why?

This example came from work with one of my clients in the service industry. He wanted to offer something new and was trying to identify which of his clients would be most interested in it.

When we worked together, we first ran a detailed segmentation of all potential customers for this new service. By understanding each segment in detail, we actually found that he had two and not one group to whom he should be selling his basic service to. One of these groups could also be exactly interested in this new offer. Talk about leaving money on the table – he almost doubled his business overnight!

T = Target

There are many different pieces of information that make up a complete knowledge of your customers. This takes time to complete, but there are hree main areaas which I suggest to at least get basic information on:

BCG Matrix for developing actionable insights1. First thing you need to segment all category users and then choose the most attractive one.

For this one of the simplest tools to work with is the BCG matrix. I say that because it works just as well with observed facts as it does with complex measured and weighted data.

 

 

4W Customer persona template for developing actionable insights2. Next you need to develop a customer image or persona.

We use the 4W™ Template as you know, because it reminds users to find out the who, what where and why. That way no area if forgotten.

 

3. The third tool we use to better understand our customers deeply, is their journey map.

Customer journey map for developing actionable insights.This can be as simple or as complex as you like too. However I would suggest adding the emotional state of the customer at each stage, as this provides valuable information concerning pain points. These steps are obviously the ones you want to solve for your customer as a priority.

These three tools will provide you with a great foundation on which you can build both your understanding and insight development. Do you have others which you regularly use? If so, then please suggest them in the comments below. 


Ready to go deeper into these first three steps that most organisations forget? Book an online training or an in-house 1-Day Catalyst Session for your whole team in November and get a 20% discount.


S = Supporters 

No-one is an island and this goes whether you are an executive, solopreneur or corporate slave. If you work in a business, then I advise you to get out from behind your desk and talk to people in other departments. We can sometimes get so tied up in our work that we never take time to understand the wider corporation in which we work. We live on our floor, take coffee and lunch with fellow employees and never learn much news that we didn’t know already.

by making a habit to speak with your colleagues from other departments and floors, will open you to a deeper understanding of your organisation. It will give you an advantage over your colleagues in knowing what’s going on in other groups and will enable you to gather information you would be unlikely to get otherwise.

If you are a solopreneur, meetings others on a regular basis becomes even more vital. It provides you with some fresh thinking and perspectives, a friendly ear to discuss business with and a change of air for an hour or two. I try to meet up with someone for coffee or lunch at least three or four times a week when i`’m not traveling.

Getting supporters is vital to the success of both projects and business in general, so make a habit of widening your professional circle anyway you can/

 

I = Intimacy

Even if you have a detailed persona of your target customers – you do don’t you? – nothing beats getting intimate with them. Not only does this bring your data and information to life, but you may also learn new things about your customers.

You can do this by simply listening into your care centre calls or by serving in your retail outlets if you have them.

But you can also accompany a researcher while interviewing or organise customer connection sessions. If you are interested in organising these events designed specifically for getting closer to your customers then I suggest you read “Why customers are the answer to all your problems”

 

G = Gap Filling

As I’ve already mentioned, when a business wants to know their customers better they immediately think of running a market research project. Don’t do this!

Save yourself time and money by first reviewing everything your organisation already knows. Identify any gaps and only then run a survey. You will be amazed how this simple habit can save you tens of thousands every year.

 

HT = Human Truth

A human truth is a

“Fact of human attitudes & behaviour, based on fundamental human values & beliefs.”

It is vital to insight development since it is needs based and emotional resonant. It is a powerful and compelling statement that is rooted in basic human values, which is why it is valid for all your customers, wherever in the world they live.

Some simple examples are:

  • Parents want to protect their children so they grow up happy and healthy.
  • Men and women want to find love.
  • People want to feel good about their choices. (be better than their peers?)

These human truths are the basis of many of the well-known brands such as Omo / Persil, Nido, Axe / Lynx, Dulux, Heineken. When you are next watching an ad break on television, it is fun to try and identify the human truths on which they are based. The more clearly identifiable they are the better the ad will resonate with its customers.

I also suggest using this as a fun exercise in a brainstorming or other meeting of marketers in particular.

An Offer You Can’t Refuse!

So there you have it, the 7-step process I call CatSight™ which practically guarantees an insight every time you use it. 

Why not try it yourself next time you are trying to work through a marketing challenge?

If you like this process and would like to learn even more details about it, then we offer two solutions:

  1. An online course of videos and workbooks to take you through every step in detail.
  2. An in-person training in your own office. This is particularly cost-effective when you are upgrading the skills of your entire team.

For either one, we are offering a 20% discount during November, to help you assign any remaining budget before you lose it at year-end! (I’ve been there too so I understand your situation very well) Just contact us and book your session; you can even plan it early in the New Year if you prefer. As long as you pay this year, we will accord the 20% discount. How’s that for an early Christmas present?

7 Reasons Companies Fail to Adopt a Customer First Strategy (And How to Succeed)

By now, every CEO knows that a stronger customer focus is the answer to many of their business challenges. Why therefore do so many companies still struggle to adopt a customer-first strategy and culture?

Read on for my own thoughts and perspectives on what should be a top company objective for proven business success.

1. The CEO has stated it as a company objective but has not detailed what and how the organisation will change

While it is essential that a customer-first strategy has a board-level sponsor, it is important that every employee understands their role in making it happen. It should not be treated as just another project but as a long-term company top 3 objective.

When this happens, every division is obliged to see how they will be impacted and what part they will play in meeting it. This is one area where the CEO can’t set it and forget it. He/she needs to be regularly informed of progress and ask “awkward” questions to ensure that everyone is embracing it. Without company-wide support, it will never succeed.

The CEO needs to ask the awkward questions to ensure everyone is embracing a customer-first strategy Click To Tweet

2. The organisation has not fully embraced the strategy

As mentioned above, everyone has a role to play in satisfying and delighting the customer. It is not the job of marketing, sales or market research alone. It is vital that each employee thinks customer first and ensures that every action and decision they make is customer centric.

One easy way to do this is to ask this question at the end of every meeting: “what would our customers think of the decision we just made?” If there is something they wouldn’t like or you know that you yourself wouldn’t approve of, then it needs to be reconsidered.

What would our customers think of the decision we just made? #CEX #Customer Click To Tweet

3. The project is treated just like any other

As with every well-defined objective, it is important that there is a leader supported by a team, to make progress while also adapting and adjusting as challenges arise in its execution. The same is true for a customer-first strategy.

However, unlike most other projects, this one will not have an end date! It should have a timeline to identify milestones, of course. But as the customer will continue to change, the actions needed will need constant adaptation. I like to say that “customer-centricity is a journey, not a destination.”

Customer-centricity is a journey, not a destination. #CEX #Customer Click To Tweet

4. The initiative does not have a visible leader

The initiative must have an executive sponsor and a passionate and charismatic leader, to excite and drive the whole organisation towards a more customer-centric approach to business.

Once the board has endorsed the initiative, the every-day leadership should be handled by someone who exemplifies customer-centricity and has a passion for customer delight. In the most customer-centric organisations, this person is a Chief Customer Officer who sits on the executive board alongside the CEO, CFO and CMO.

According to this recent article in Forbes, the responsibilities of a CCO are to:

  • 1. Bring The Customer To Life
  • 2. Reach Outside The Organization
  • 3. Involve The Front Lines
  • 4. Embrace The Data

As you can see, these are actions that demand specific capabilities that complement rather than replace those of the heads of sales, marketing and PR. That is why a customer-first strategy needs a separate functional head. Trying to integrate these into the responsibilities of these leaders is unlikely to meet with much success.

 

5. No-one understands how to move the initiative forward.

When you don’t know where you’re going, most people are afraid to take the first step. But that’s the only one you need to know. It’s easier to course-correct when you are moving than when you’re standing still. As already mentioned, customer centricity is a journey, not a destination.

That’s why many organisations now work with a business catalyst to help them take those all important first few steps. Once the project is up and running, occasional sessions are then sufficient to keep the internal excitement for the customer growing.

Successful businesses work with a business catalyst to help them take the important first few steps of a customer-first strategy Click To Tweet

6. Everyone in the organisation is not clear about their role in satisfying and delighting the customer.

It is well-known that companies such as Amazon and Zappos have new employees enjoy direct contact with the customer from their very first days working in the company. However, this is something that should be encouraged on an ongoing basis as well.

Ideally, every employee should get the chance to watch, listen and interact with customers regularly. The best organisations have such connections on every employee’s annual objectives, specifying such exchanges on a monthly basis as a minimum.

7. They think it costs too much

While this may be the perception, in reality, it costs a lot more NOT to adopt a customer-first strategy. It makes both business sense AND customer sense.

There has been so much research done on the impact of a customer- first strategy that there is no doubt that it provides a positive ROI (return on investment):

  • Walker found that 86% of buyers would pay more for a better experience.
  • Genesys showed that improving the experience for customers is the key to increasing retention, satisfaction and sales.
  • Deloitte and Touch claim that customer centric companies are 60% more profitable.
  • Bain & Company research shows that increasing customer retention rates by 5% increases profits by between 25% and 95%.

These numbers should be sufficient to convince every CEO that a customer-first strategy is worth investing in. In fact, it is an essential strategy every CEO would be wise to adopt, no matter what industry they are in.

So what are you or your CEO waiting for? Did I miss a different problem you are currently facing? What other challenges have you faced or are now facing in adopting a customer-first strategy? Please let me know by adding your comments below.

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