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How to Measure Customer Centricity the Right Way

As a customer first strategist (hopefully just like you), I spend a lot of my time searching how to better measure customer centricity for my clients. I also do a lot of analyses on what customers really want today. I’m always trying to understand exactly the solutions customers need, desire and dream of having.

My regular searches 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 up the term, you get redirected to customer satisfaction!  Try it for yourself and see.

My other go-to source for definitions 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 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:

  1. A positive customer experience has been shown to increase both loyalty and advocacy. (>>Tweet this<<) As we all know, it costs five times more to acquire a new customer, as it does to keep a current one. Therefore loyalty is an incredibly 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. Luckily, what’s good for the customer is good for business. You can see many more facts and statistics about this in Forrester’s report “The Business Impact of Customer Experience.”
  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 product performance and services are almost identical, so how can you stand out? By your customer care, that’s how and knowing what your customers really want . It has been shown that customers are willing to pay more for excellent customer service. You can read a summary of this and more in the summary report of the American Express research.

 

I would also add that what customers really want today is a seamless experience from pre- to post- purchase, as well as from on to offline. That’s how you deliver satisfaction and build loyalty.

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THE IMPORTANCE OF CUSTOMER SATISFACTION AND UNDERSTANDING

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

  1. It is now proven that it is important for the business, so what is stopping companies from quickly adopting a more customer centric approach? The longer they wait, the more they risk being beaten by a more customer friendly competitor. It’s no longer (just) about product performance.
  2. 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.
  3. Customer service is confused with customer satisfaction. Companies are happy when their customers say they are satisfied, but they should be looking not just to satisfy them but to delight them too!

 

As mentioned before, 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. 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 with service in green, care in blue, satisfaction in red and understanding in yellow)

Google trends on measuring customer centricity
Click to see original

 

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? Apparently not.

And this is when I realised that perhaps businesses are more interested in the process than the real benefit of customer centricity. That is a serious flaw in their thinking in my opinion. What do you think?

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. So you would think it should have a positive impact on customer satisfaction.

 

 wAAACwAAAAAAQABAEACAkQBADs 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, but most other industries continue to ignore what their customers really want. You can see the Infographic overview above; click on it to see the full-sized original.

I then went back to Google to find ways which were suggested for increasing customer satisfaction. I found more than  two million articles on how to do it, but very few on the results. Again, extremely worrying.

According to the US ACSI (American Customer Satisfaction Index) August 2019 report, customer satisfaction is once again on the decline in the USA.

measure customer centricity
National ACSI Scores, 1994 to Q2 2019 (0-100 Scale) (PRNewsFoto/American Customer Satisfaction)

As mentioned in their press release accompanying the Q2 2019 results "With few exceptions, the rate of growth in consumer spending – which accounts for almost 70% of GDP – has declined since 2016. ACSI is still below its high watermark from 2017, yet GDP growth has, by and large, increased over the same time periods."

“This is untenable in the long run,” said Claes Fornell, ACSI Founder and Chairman. “It’s also untenable for customer satisfaction to weaken and for consumer spending to strengthen in the long run. But that’s what happened in the second quarter of 2019.”

The UK is showing a similar negative trend. The UKCSI is currently 77.1 (out of 100), 0.8 points lower than a year ago. This is the fourth consecutive, though small, drop in customer satisfaction since July 2017, when the index score was 78.2. This has no doubt also been negatively impacted by the Brexit vote and ongoing struggle to negotiate terms with the EU.

UK Customer Satisfaction Index 2019

 

THE KEY TAKEAWAYS

So what does a business need to do to deliver what their customers really want today and increase their level of 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 satisfy, but ideally delight.
  2. Companies need to go beyond the mere process of customer centricity, to truly put their customers at the heart of the organisation.
  3. Customer centricity adds demonstrated value to a company; it should be a no-brainer.
  4. Customer centric improvements are happening too slowly in most industries, especially when customers are becoming increasingly demanding.
  5. Providing customer service doesn’t guarantee customer satisfaction.
  6. A positive customer experience 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, they expect a satisfactory outcome as a minimum. Those organisations who go beyond, to deliver delight, will see their reputation improve, as well as an increase in their customers’ loyalty and advocacy. 

 

Customers also want companies to be open and transparent. They want answers to their questions and criticisms. They have a right to know the source of ingredients, the ingredients themselves, their 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 can no longer wait! You’re getting left behind by your competitors who are taking action today! If you need help in catalysing your organisation in customer centricity and aligning your business to what your customers really want, C3Centricity provides 1-Day training on many relevant topics. See more and download the summary brochures HERE.

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The 6 Best Ways to Show you Respect your Customers

More than one year after the introduction of GDPR in Europe and the CCPA in California, I wondered what has changed. And more importantly, I got to thinking about customer privacy and how to build a mutually beneficial relationship whilst also respecting it.

Customers don’t want to be automatically segmented and followed as they go about the web, viewing different sites. A recent article on Business2Community by Owen Ray said that

The tracking cookie is crumbling. Smart cookie-blocking technology led by Apple’s Intelligent Tracking Prevention (ITP) and Firefox’s Enhanced Tracking Protection (ETP) now block third-party cookies by default, and even Google’s Chrome will soon get controls that let consumers block cookies.”

If you want to understand more on the topic of cookies I highly recommend this two-part article.

Companies who are truly customer centric know that it is important to build a mutually beneficial relationship where there is something for both parties in exchanging information and services. Too many businesses ask too much of their customers, with little if anything in return. I believe this is one of the major reasons that customers today are becoming sensitive to what and to whom they give any information about their interests, habits, needs and wishes.

I, therefore, thought it was useful to review the major points to keep in mind, when a business wants to collect information about its customers in order to offer products and services that better meet their wants and desires.

 

1. Ask Permission to Gather Information

This should be a no-brainer and yet I still find myself on lists to which I didn’t subscribe! You too?

Whether you are connecting with your customers by mail, phone, email or the web, you need to first request permission to ask any questions and to gather the information you are looking for. Not only should you ask for consent; if you are not in direct personal contact, but connecting via email or the web, you should also double-check that permission. You have to ensure that the agreement has been given by your customer and that they are still ready to provide the information.

Being attentive to privacy when starting to build a relationship is vital and shows you respect your customers. It also means asking them to confirm their consent not once, but twice. Double opt-in as it is known, ensures that your customer is correctly identified and that they have indeed themselves agreed to provide or receive information, or to be put on your mailing list.

 

2. There Must be Mutual Benefit

When your customer has agreed to provide information you need to thank them in return immediately. This can be as simple as offering coupons for your products, some valuable information not easily available elsewhere, a free guide or e-book on a relevant topic, or special privileges such as club membership or express shipping. Something that shows them that they were right to agree and that you value their information.

Another thing to keep in mind is not to overwhelm them by asking everything in one go. Since your objective is to build a long-term relationship with them, you can complete the information you require through several contacts with the same customer.

This also has the added advantage of keeping the conversation more frequent than it might otherwise have been. Ask just enough to be able to identify your priority metrics and then refine your understanding of them as you gather more information.

Your objective should be to build a long-term relationship with your customers, so don't gather more information than you can immediately use. #CEX #CRM #CustomerService #CustomerSatisfaction Click To Tweet

 

3. Make them Feel Special

More and more CPG companies and brands now offer a loyalty program, especially to their higher-value consumers. These provide more targeted privileges and even give the opportunity to preview new communications or product concepts. In general customers love to give feedback and it has the benefit of building a closer tie to the brand as they feel ownership of those launched.

This is probably one of the more intimate and bigger win-win relationships that can be developed with your customer. But it does take a dedicated team within the company to manage such a club, as these customers are naturally the most demanding for services and constant information updates. So only set one up when you know you can satisfy their needs, as otherwise they can feel frustrated when they perceive they are not getting the attention they think they deserve.

Over the past couple of years, we have started to see new types of member offers. Sephora launched a members-only social platform, which encourages shoppers to share beauty tips and advice, and to comment about any new products bought, not just those from their stores.

Nike has taken things to the extreme by opening an entire members-only store concept, Nike Live, in Los Angeles.

Both of these provide exceptional recognition to their members, making them feel a part of an exclusive program, which is exactly what they are!

 

4. Keep the Relationship Fresh

Once you start building the relationship with your customers, you must continue to interest them by offering news, information, photos, videos or articles of interest. This can be quite a strain on internal resources, so you may want to (also) consider including user generated content (UGC) on your website.

Not only does this ensure continuously updated content, but also involves the customer in what is shown, so that it remains relevant and of interest to them. People love to post and comment, so include message boards, tip sharing platforms or photo albums, whatever is relevant to your targeted customers.

Beauty, fashion and petcare brands were amongst the first to make use of UGC, as they are in very visual industries. Who doesn’t want to share a photo of themselves when they are looking especially beautiful, or show how cute their cat or dog is?

One great example comes from L’Oreal. Their DermaBlendPro brand encouraged users to share photos or videos of how the brand had transformed their look, by hiding disfiguration or tattoos. They clearly understood that happy customers make the best brand ambassadors, and this was clearly proven by the thousands of entries and immense buzz the brand received on social media platforms such as Pinterest and Instagram.

 

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5. Ask their Advice - Frequently

For your customers to appreciate how much you value them and their business, involve them in it, by asking for feedback on how you are doing. If you have new ideas or plans, share details with them or enable them to vote for new flavors, concepts or advertising ideas.

You can also enable them to preview the ads or products before everyone else, but do make sure you provide them with some great information about it too, so that they can share it with their friends and family members. This will make them feel like the special and valued customer they are, and also help you spread the word - for free!

 

6. Always Offer a Simple Way Out

Once you have made the connection with your customers, recognize that they might change their minds at any time and want to unsubscribe from your club or mailing list. Make this as quick, simple and pain free as possible. This shows respect for your customer and their time, and also enables them to leave with a positive opinion of you and the brand. You never know, they might change their minds and stay after all, or come back again in the near future.

From making the unsubscribe link in tiny font to pale and almost illegible, to using button colours to mislead, many brands think that this will stop people from unsubscribing. It may, but it is more likely just to irritate them and label your communications as spam.

Even large companies get this wrong. Apple may provide full details of all the different ways to connect on their contact page, but it is laid out in an overwhelming block of text that is so off putting I doubt anyone hunts to find the information they need.

Apple shows how not to respect your customers

Another example used by Swiss airlines and their parent company Lufthansa almost had me agreeing to give all my information, not just the necessary data to make my experience more comfortable. Their coloured button draws the eye and without reading you could end up making the same mistake I almost did.

No way to respect your customers

With so much choice available to customers today, it is our responsibility to build an engaging and respectful relationship with them. If there is no trust, there may soon be no sales!

What other ways do you show respect for your customers? Please share your best examples below. Of course, if you have come across a bad example that frustrated that, then please share it too. Let's name and shame!

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What Customer First Strategies Really Are (And what they’re not!)

Everyone is talking about customer first strategies and why they are important. However walking the talk is a different matter!

An interesting article on NewMR by Ray Poynter prompted this post. He spoke about the differences between customer focus and customer centricity and the often times confusion between the two terms. That is why I tend to speak about customer first rather than customer centricity these days.

In its simplest form a customer first strategy is about thinking customer first in everything you do. Yes I know it sounds easy but it really isn’t. And it doesn’t come naturally, at least to start with. I believe that’s because it involves a culture change to move the organisation in this direction. But I can assure you it’s worth it; its value is now well proven.

If you would like to see some exciting statistics about the value of making your customers the heart of your business, then CMO.com has a great article. It’s called “15 Mind-Blowing Stats About Customer Centricity” and many of the research results reported are still valid today, so it’s definitely worth a read.

 

 

What Are Not Customer First Strategies

I have seen a customer first strategy defined as

“a strategy by which businesses create their products, content, and marketing campaigns so that they serve their customers first, and their organization second.”

I don’t agree! If you don’t think about your organisation then it will likely fail! That said, I am also a little sensitive to the comments of Sir Richard Branson, who says

“Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”

This may be true for an airline, where the client is primarily basing their opinion on the service on board and the “niceness” of the crew. After all, every airline will get you from A to B.

However for many industries, customers are enjoying (or not!) your product or service without your employees being present. They will remain loyal (or not!) to your brand, based upon their own personal experiences, at least in most cases.

A customer first strategy is therefore not about only thinking about the customer. It is about understanding how best to serve them in such a way as to delight them, while keeping your employees and shareholders happy. This is relatively easy to do because when the business is going well, all stakeholders are happy.

 

What Customer First Strategies Are

Econsultancy asked what effective leadership in the digital age is. Several key leadership qualities were found, including being ruthlessly customer-centric, data-driven, innovative, collaborative and agile. I am thrilled to see customer centricity coming first by a long margin.

 

Customer-centric organizational culture characteristics

So the leaders have got the message, but what are they doing about it? Not a lot in many cases. And why? From my experience it is because they just don’t know where to start or what to do. (If that’s your situation, try our Customer Centricity Mini C3C Evaluator™ – for free! It will immediately show you your biggest opportunities.)

 

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Executing a customer first strategy doesn’t happen without a clear understanding of what needs to change. This is why I decided to take the four other qualities mentioned and see how they influence the adoption of such a culture within an organisation.

 

 

Being Data Driven

We are all aware that when we visit a website, buy something online, or post on social media, we are being tracked. Information is being gathered about us and our actions which can then be used to follow our behaviours, show relevant advertisements or even communicate directly with us.

But automated data gathering doesn't only happen online. Many organisations store our information when we contact their customer service center, enter a promotion, sign up for a club or gift card, or apply for free samples.

While the GDPR in Europe has increased the security of this data and our permission for companies to use it, data driven marketing is not all bad news.

OK, so I'm not talking about the 2002 Minority Report. I'm not speaking about how the hero is bombarded with advertising messages in the street and in the shopping mall, as the clip below shows.

No. While it is unlikely that we would appreciate such invasive messaging, people rarely complain about the suggestions proposed of further articles to purchase when they visit Amazon and similar online stores. This is because they provide a real service and we therefore happily give our details to these websites.

Data driven marketing and communications will need to carefully balance the support they provide to customers, with respect for their desire for privacy at certain times. The companies that succeed will be those that understand this and connect at the right times. Those that don't, risk being banned from all future contact.

We are now one year on from the introduction of GDPR and we have seen little change other than being asked to approve the privacy terms of the sites we visit that use cookies. There have been a few companies who are being fined for not sufficiently protecting their customer data from hackers. This is serious stuff. Fines can go up to €20,000,000 or 4% of the total worldwide annual turnover of an organisation. This would mean that Facebook could end up paying $1.6 billion and British Airways £183 million. But in reality I don't think the fines, at least to start with, will be this high.

An article by Toby McKenna on AdAge spoke of the "Three resolutions for data-driven marketers in 2018." He said they are:

  1. Demand fresher data
  2. Revise your definition of "in-market" consumers
  3. Shift your approach from myopic to broad-based (and forward thinking)

I applaud the emphasis on the importance of data freshness. We are all irritated by ads presented to us that are no longer relevant once we have made a purchase, aren't we?

I also encourage a forward-thinking, longer-term perspective. Change is happening so fast today that we need to prepare for things before they even happen! Difficult maybe, but essential for businesses to survive. For further ideas on how you can do this, read "How to Prepare Business for Anything. Five Actions You Can Take Now."

Change is happening so fast today that we need to prepare for things before they even happen! #marketing #brand #CEO Click To Tweet

But good as the above list is, it needs a fourth resolution in my opinion; that of using the collected data for the benefit of the customer. As the data comes from them I believe all organisations have a duty to use it to return our customers' trust in us when they shared it. Do you agree? Let me know in the comments below.

Use the customer data you collect for the good of the customer. Return their trust in us when they shared it. #Data #Customer #CEX #CEO Click To Tweet

 

 

Being Innovative

We all get bored with novelty more quickly these days. What excites us one day, is normal the next and "passé" after that! Innovation is the life-blood of every successful business. Not renovation, innovation. If you don't know the difference, then you should read "How to Innovate Successfully (What You’re Still Getting Wrong!)."

The post includes the ten reasons your innovations are failing:

  1. The process
  2. Meeting company quotas
  3. Lack of customer understanding
  4. Lack of category understanding
  5. Not living up to your promises
  6. Not being sufficiently differentiated
  7. Being too different
  8. Pricing yourself out of the market
  9. Inappropriate distribution
  10. Being too far ahead of the customer:

If you think that any of these reasons applies to your own organisation, then you must read this post. It contains answers to solve each of the issues. Invaluable!

 

 

Being collaborative

Despite moves to flat organisational structures, open-offices and social areas in work today, silos seem to be as strong as ever! And yet silos cost businesses a fortune in wasted effort and investments. Suppliers are unlikely to tell you when you have already bought a report. I found this was the case for one of my clients, that had bought the same report an amazing 26 times! They wasted millions just because their organisation was siloed.

Departments hold onto information they have gathered like treasure and consider it to be for their personal advantage only. This results in multiple projects being run on the same topic, sometimes even in parallel! I found three similar projects being run by an FMCG client, that the department that hired me was unaware of. By working collaboratively, they were able to have more resources, both in terms of budget and personnel! You can imagine what that did to the completion of all the projects. They were finished in record time and well under budget! One more happy customer!

If you're not sure your information resources are being used effectively and efficiently, then we should talk. 

Collaboration is the only way to decrease this waste and hopefully marketing automation and open data storage will help resolve at least a large part of it. However I have found in working with clients that it is the culture change that makes the biggest impact. After all, what is an employee's benefit in working with and helping other departments? The executive board must encourage collaboration and be seen to walk their talk, for the whole company to follow.

Have you ever heard the phrase "it's not in my objectives" when asking for support? If so, then why not suggest that collaboration be included in everyone's objectives? Change will happen - fast!

 

 

Being agile

Following on from the need for innovation, today's businesses must be agile and flexible. With technology changing the way we live our lives, companies must be both ready for change and prepared to benefit when there is something relevant happening.

 

Some of the best examples of agile marketing:

Being agile can take many forms. The examples below show that it can be online, offline, or outdoor. Brands that are agile are where their customers are; that's what matters.

 

Tweets when the lights went out at the SuperBowl in 2013:

 

customer first agile marketing tideThinking customer first with Oreo

 

 

Unofficial ads during the 2012 London Olympics:

Customer first ads London 2012Customer first ad London 2012

 

The ongoing struggles between major brands:

Audi vs BMW

customer first ads audi bmwcustomer first audi vs bmw

 

 

 

Coke vs Pepsi

(Thanks to CAVE House for this great video collection)

Of course these examples could only be developed because the brand owners were ready to take advantage of what was happening in their customers' lives. They therefore had to know them deeply in order for their communications to be relevant and resonate with them.

 

Reasons most companies fail their customer first strategy adoption

In conclusion, I would like to give some of the many reasons why companies fail to adopt a customer first strategy. Last year I wrote a highly popular post explaining why many companies don't succeed, called "7 Reasons Most Companies Fail to Adopt a Customer-First Strategy." The post also appeared on CustomerThink and received many comments that are definitely worth reviewing too.

That is why I am not going to go into detail here, but just summarise the 7 reasons I gave:

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

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

2. The organisation has not fully embraced the strategy

Whenever you take a decision, ask yourself: What would our customers think? #CEX #Customer #CEO Click To Tweet

3. The project is treated just like any other

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

4. The initiative does not have a visible leader

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

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

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

7. They think it costs too much

Which of these is (are) the main reason(s) for your slow move to a customer-first strategy adoption? Is it something different? Let me know in the comments; I'm sure every reader would love to exchange their own experiences with you.

If you would like to know which area of a customer first strategy offers you the most opportunities for improvement, why not complete our mini C3C Evaluator™ tool? It's FREE! And in just 12 questions you will get a clear indication of what to prioritise. Then let's talk.

 

How Good is your Customer First Strategy?Answer just 12 questions to find out!

 

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.

Top 10 Posts on Brand Building Strategies of 2018

A New Year tradition we started here at C3Centricity back in 2011, is to share our most popular brand building strategies and posts of the year. This gives everyone a chance to catch up on our best posts that they may have missed.

This year has been a particularly successful year for C3Centricity, with many of our newest post getting the top scores globally. This is quite tough for a blog that has been running for almost eight years and highlights the quality of the content we share with you! So have a look at our list and see if your own favourites are there. If not, then please let us know in the comments. Thanks.  

market research departments should deliver insights1. Is it Time to Do Away with Market Research Departments? 

This post shares the highlights of recent research into how market research departments can become true business partners, rather than being viewed as a mere cost center. It also shares ten steps to reinventing and upgrading your market research department. If you believe that you could be getting better support on your customer understanding and insight development, then these ten ideas will take you a long way to doing this in 2019.

 

 

CMO & Head of marketing keep your job2. Head of Marketing, How Can You Keep Your Job When Most CMOs Are Losing Theirs? 

Many CMOs are frustrated by their lack of recognition by their fellow c-suite colleagues. If this is your case, or you are new to the position and want to make an impact quickly, then this is a must-read post. It shares the most collon opportunities and challenges you may face and suggests five areas to (re)visit which will provide a new and fresh perspective on their business.

 

 

Top 2018 Infographics3. Top 10 Marketing Infographics to Smash 2018 (Inspiration for the Visual World)

These are the most shared marketing infographics of 2017. As usual, for each one we have added an action for you to take based upon the topic covered.

What was new for last year is that many marketing infographics that were shared were actually about content marketing. It’s as if “true/traditional” marketing doesn’t exist any more! That in itself says a lot about the focus of marketers these days! Are they right to do so? I don’t think so, but let me know your opinion.

 

 

Customer first strategy4. What a Customer First Strategy Is (And what it’s not!)

In its simplest form a customer first strategy is about thinking customer first in everything you do. Yes I know it sounds easy but it really isn’t. It doesn’t come naturally, at least to start with. And it involves a culture change to move the organisation in this direction. But I can assure you it’s worth it; its value is now well proven.

This post lays out the importance of being data driven, innovative, collaborative and agile to succeed a customer first strategy. It also shares the seven reasons most companies fail.

 

Customer journey map5. Do You Know Your Customer Journey Map & the Emotions Overlay?

This post shares the three lessons learnt from a personal (bad) experience with a hotel chain and its “guaranteed lowest price” promise. These are: 1. The customer journey needs to integrate all possible contact points. If it doesn’t you could alienate your customers before they make a purchase. 2. If you mess up admit it and correct the situation. People understand that mistakes get made. While they may forgive you if you quickly put it right, they will never trust you again if you pretend nothing is wrong. 3. Follow up to make sure the customer is happy. In the heat of the moment a customer may feel satisfied that something was done. However in the cold light of the next day, week or month they might feel that what you did was not enough.

 

Data helps you resonate with customers6. You’ve Got Data? Well Don’t Start There!

In working with clients around the world and in numerous industries, I have found that many are lost by the wealth of information that is available to them. In fact it seems to drown out their reasoning of what to do and they remain frozen in indecision.

If this is your situation, just follow the detailed steps of this post and you will soon be doubling, quadrupling, if not 10x the ROI of your data!

 

brand image and equity7. Brand Image, Equity, Personality & Archetypes: What Every Marketer Needs to Know

Your brand is not what you think it is! It is what your customers think it is; its brand image, personality and its value to them.

If you’re having issues with your own brand in either of these areas, then you’ll find this article both interesting and valuable. It covers why we buy brands, the different elements of a brand, the three types of attributes you should be measuring for your brand. It then goes on to review brand personality and the main archetypes with some great examples.

 

insight development8. Five Ideas to Improve your Insight Development

This article has been amongst the top twenty posts every year ever since it was first published back in 2013, a staggering five years ago! If you haven’t read it yet, then you really have been missing out on some surprising facts about insight development. Perhaps one of them is the reason that you are still struggling to develop valid and actionable insights? Check it out and see what you have missed all these years.

 

Provide better service and customers will love you9. The Revolutionary Marketing Challenge is Not Customer Satisfaction

We all know how extremely demanding consumers have become. Constant innovation and novelty has made us all more impatient and critical. We want things better, faster and sometimes cheaper as well. And customer satisfaction is becoming insufficient to drive growth alone. Marketing must deliver more!

This article shares three examples that 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.

 

Golden nugget of segmentation10. Essentials of Segmentation and some Simple Alternatives

All brands and services need to choose a group of customers that they are going to satisfy, since it is impossible to satisfy everyone most of the time. This means that you need to make a choice and agree to ignore some of the category users you could appeal to, in order to totally satisfy your target customer.

Although this may sound counter-intuitive, segmentation is the only way to ensure you have the best possible chance to satisfy the needs of your targeted customers.

 

When I look back at these top ten posts I am proud that most of them are from 2018. After almost eight years, it seems that what I am writing today is more in line with marketers’ needs than previous posts which have been around for much longer.

There are a few exceptions to this, my evergreen content on topics that will always appeal to marketers young and old. This year, as in the past, they are on the topics of Brand image, equity and personality, Insight development and Principles of segmentation. I think this makes a lot of sense as they are fundamental skills that every marketer needs, even in this digital age. 

Now my question to you dear reader, is what topics you want me to cover in 2019? If you have reached the end of this post then you must be a keen supporter, so I will offer a free e-book to everyone who completes our short survey in January 2019. Just click on the button and you will be taken directly to the survey. Once completed you will receive an email with a link to download the ebook “Secrets to Brand Building” for free – it’s normally US$ 4.95!

Thanks for your help

To Survey

 

What Consumer Goods Companies Can Learn From Healthcare. 7 Lessons of Customer Service Excellence

If you work in consumer goods you probably think you have nothing to learn from healthcare, right? After all, you have consumers in your industry name and well healthcare’s reputation is not that great.

But think again. I was recently in a clinic for surgery and was surprised by how customer (patient) centric they are.

I remind my clients that exceptional customer service examples can come from anywhere! So they keep their eyes and ears open and find inspiration everywhere. Do you? If not, then these lessons will come as your wake-up call so you start opening your eyes to new possibilities. Do this every day and your business will only get better.

 

Background

Before I give you the lessons I learned, I think I owe you a little background to what led up to this list.

I had been suffering from a bad back for a while. Unfortunately, not so unusual for those of us who spend too many hours at our desks. However, one morning I tried to get out of bed and fainted as an explosive pain shot down my back to my right foot! I was totally immobilised in three seconds flat!

Now living alone I realised that this was serious as I couldn’t move. Luckily my mobile was by my bed so I called the emergency services who immediately sent an ambulance. I ended up spending a night in a local University Hospital for the first time in my adult life.

However, the story doesn’t end there. Two days later I fell down the stairs because my leg had become partially paralysed. Another visit to the emergency room, an ankle brace fitted, a consultant’s assessment, an MRI scan and finally emergency surgery the following day.

All these experiences of hospitals and doctors gave me the superb opportunity to see the health service from the patient’s perspective. I work a lot with the Pharma industry but luckily have never been a patient, at least until now.

As you probably know, actually becoming your customer and seeing the market from their perspective, is one of the exercises I suggest to better understand them. How often do you do it? Ever?!! You really should, because you’re missing out on a valuable – and free – experience.

Perhaps surprisingly, this incident showed me that many of the practices of the nurses and doctors that I witnessed in my heavily sedated state, are easily transferable to any business. This is why I decided to share them with you.

So here are my seven learnings about customer service excellence:

 

1. Introduce yourself

Customer service excellenceEvery time someone came to my room, they introduced themselves and explained why they were there. Over the course of the days I spent at the hospital and then the clinic, I saw many different doctors, nurses. cleaners, waiters etc. I appreciated that they themselves always started by introducing themselves and stating what their responsibility was in caring for me.

How you can apply this idea: In business, we often forget to introduce people in meetings and when we do, we forget to explain their responsibilities, why they are there.

Perhaps if we did this, there would be far fewer people in meetings, as only those with a real reason to be involved would attend! That already is a time and money-saving idea. But there are even more applications of this idea when it comes to our customers.

Direct contacts with customers, whether by phone, email, chat, social media or in person, deserve the same detailed introduction. This moves the connection from a somewhat cold, professional exchange, to something far more friendly and personal, if not actually personalised.

I often wonder how we so easily forget that customer service is after all just two people connecting and engaging for mutual benefit. Is that how your own customer care centre exchanges feel? If not, how about making them friendlier?

How do we so easily forget that customer service is just two people connecting and engaging for mutual benefit? #CEX #CRM #CustomerService Click To Tweet

 

2. Confirm that you know me

Although I myself saw many different specialists in the university hospital, it made no difference to how I was treated. I felt comfortable that my details had been transferred between the staff members, so they didn’t have to ask me to repeatedly explain what had happened. They also always started by checking my name, to make sure they were speaking with the right person.

How you can apply this idea: While I accept that checking names and wearing wristbands are essential in a medical environment, most businesses could benefit from confirming who their customers are too.

Whether by careful targeting for marketing purposes or by reviewing notes of previous interactions with customer services, a company needs to immediately recognise a (returning) customer.

Whether by careful targeting for marketing purposes or by reviewing notes of previous interactions with customer services, a company must immediately recognise a (returning) customer. #Customer #CEX #CRM Click To Tweet

Have you ever been frustrated when calling back a company only to be asked to explain who you are and why you’re calling? I know I have. It always makes me feel that the organisation doesn’t really care about me. And with automation systems easily available today, there is no excuse for this sort of lack of knowledge.

Personalisation has become essential in all engagements between companies and their customers. In fact, this is one of the most important uses of Big Data, both now and for the foreseeable future.

Personalisation has become essential in all engagements between companies and their customers. This is one of the most important uses of Big Data, both now and for the foreseeable future. #BigData #CEX #CRM Click To Tweet

 

3. Ask if I am happy/comfortable

Whatever the reason was for the medical practitioner to see me, they always asked if I was comfortable. They openly encouraged me to share any negative thoughts, feelings or sensations I was experiencing.

How you can apply this idea: Do you encourage critique of your ideas from your colleagues? It takes a strong and confident person to constantly put themselves up for criticism. Too many people look (only) for positive support when asking for opinions, rather than a truly constructive assessment.

Customer service excellence should involve every employeeMany years ago, one of my first bosses mentioned that when he asked for opinions in a meeting, it was me he listened to the most. Why? Well, not because I knew more than my colleagues. No; it was because I said what I really thought, not what I believed he wanted to hear. Although he didn’t always agree with what I said, he knew that what I said was what I was truly feeling.

Over the years, I came to realise that he was one of a dying breed of true leaders. Many organisations today are political hothouses, where supporting the boss is the only way to keep one’s job!

I hope you are not in this situation because according to a Gallup study, around 50% of employees leave their company to get away from their bosses. If you are in such a situation at the moment, my advice to you is to GET OUT NOW! You will more than likely end up leaving one way or the other, so why waste your time with a boss who lacks this essential leadership skill? You’ll get the support you deserve and more importantly need, to grow, elsewhere.

According to a Gallup study, around 50% of employees leave their company to get away from their bosses. If you're in such a situation today, my advice is to GET OUT NOW! #Leadership #EmployeeSatisfaction Click To Tweet

And what about your customers? Do you encourage them to share complaints and ideas? If not, why not? It’s much better to know what’s wrong and put it right quickly, than to continue in blissful ignorance until your customers leave because of it.

Customer experience is negative

According to“Understanding Customers” by Ruby Newell-Legner, you are unlikely to hear from more than just a fraction of dissatisfied customers. And most of those dissatisfied customers will never come back to you. Therefore it makes sense to not only pay attention to complaints but actively search them out – before they damage your business.

 

4. Ask if you can do more

You can always do more to improve customer experience

As anyone who has been to the emergency room of a hospital knows, patience is important. You don’t get seen by order of arrival, but by the importance of your ailment. In other words, if your problem is not life-threatening, you will pass after the road accident, whose victim is more seriously injured. I know this and was happy to actually be left to “float” in a drug-induced relaxation between staff visits.

Whenever they woke me up to “check my vitals” or to inform me of the next tests or treatment planned, they always finished by asking if I had any questions or needed anything else. I was made to feel that nothing was too small or unimportant to them, if it made me feel more relaxed and comfortable.

 

How you can apply this idea: According to the White House Office of Consumer Affairs  “It is 6-7 times more expensive to acquire a new customer than it is to keep a current one.”

It is 6-7 times more expensive to acquire a new customer than it is to keep a current one. Click To Tweet

Business, therefore, can no longer afford to merely satisfy their customers, they need to delight them. Do you ask both yourself and your customers what more you can do for them? If you do, you might just find a new product or service concept that answers their desires and gets you ahead of the competition.

 

5. Don’t stop before the end

When I was admitted for surgery, I was told that the average stay was between 6 and 12 days in hospital. Having thought I was there for just a day or two, this came as quite a shock.

As my progress after the operation was good, I expected to leave the clinic within five days. (I always want to be better than average!) However, with the added complication of the torn ligaments in my ankle, the professor had other ideas. I ended up spending ten days there and was then on a month of complete bed rest before starting physio!

How you can apply this idea: As the well-known Napolean Hill quote goes

“Most great people have attained their greatest success just one step beyond their greatest failure.”

Some people are great at ideation; perhaps you’re one of them. However, ideation without action is just day-dreaming.

Some people are great at ideation; perhaps you're one of them. However, ideation without action is just day-dreaming. So get active today! #Innovation #Ideation #Action Click To Tweet

Therefore don’t think your job is done when you’ve come up with an idea or two. You need to follow up to turn the ideas into actions.

Customer service excellence means involving customers everywhere you canEntrepreneurship is very popular today for both individuals and even within large corporations. However so many entrepreneurs try an idea and when it doesn’t immediately work, they give it up for a different one.

Yes, there have been many huge successes recently, but most “overnight” triumphs have come from years of just plain hard work and dedication.

Therefore, as they say “plan the work and work the plan.”  Did you know that the origin of this quote is unsure, although it has been used by many people? These include Vince Lombardi, Margaret Thatcher, and even Victor Hugo. With such illustrious support, perhaps you could work your own plan a little better, no?

Plan the work and work the plan. #Plan #Action #Learning Click To Tweet

But remember, today’s world is one of constant change, so even if you do plan, remember to also stay flexible and adapt to the changing circumstances of the market or your brand. And never totally give up your plan at the first sign of failure either. Just because one part of the plan didn’t work doesn’t warrant throwing out the whole thing.

 

6. Don’t wait until it’s urgent

As I tried to wean myself off the painkillers, I found myself alternating between extreme pain and none whatsoever. The carers told me that while it’s a good objective to reduce drug usage as quickly as possible, it is counter productive to not take painkillers when they’re needed.

By my deciding to “wait and see” if the pain got worse before asking for medication, I found that the drugs became less effective.

Small, slow steps work better than giant leaps in so many areas because they are sustainable. Think New Year’s resolutions, like crash diets, new fitness regimes, or changes in lifestyle habits. It’s the small, almost imperceptible changes that tend to last and lead to success.

How you can apply this idea: So many adjustments in business involve making significant changes, whether cultural or process-wise. As the well-known saying goes:

“The best way to eat an elephant is one slice at a time.” 

Therefore when introducing large changes within your organisation, break them down into more “humanly” manageable steps. Want to make a radical change in one of your processes? It is often more effective to start by modifying the beginning and the end of the process. The middle steps then adapt automatically as new needs are identified.

For example, in updating your innovation process, start with better identifying the target customers and their needs. Then look how the launch will be rolled out and monitored amongst them. You will quickly realise that brainstorming in a vacuum or testing multiple concepts just before launch is no longer effective – if it ever was! These parts of the process will then be adapted to the new demands.

Time to revamp your own processes? Find out more about our I3: Improved Ideation and Innovation and other 1-Day Catalyst Training sessions HERE.

 

7. It all starts and ends with the customer

During my hospital and clinic stays I realised that the staff were there for me, not vice versa. I am extremely independent and had to learn to accept the help of others, even for some of the most intimate actions. It was “normal” for them, but not for me.

They recognised that and did everything they could to make me feel at ease. From being there just when I needed them, to eclipsing to leave me alone when I needed space. The staff knew and demonstrated that it was I who was important.

How you can apply this idea: Take a look at your website, your communications, your plans; do they all start and end with the customer?

Do you publish content your customers want to read, or just what you want to tell them? Does your contact information include every possible way a customer can connect with you or just a static form and drop-down menu?

Are your communications relevant and emotionally validating for your customers?

Do your plans mention the customer as often as the brand? Remember:

“There may be customers without brands, but there are no brands without customers.”

Do they also show images of customers and include extensive knowledge and understanding about them?

If not, then perhaps you found inspiration for change in the above examples. Take one small step and make one of the changes mentioned; the benefits will be quick to appear.

For more ideas about improving your customer understanding, why not watch the FREE Customer Centricity Champions Webinar? It shares many tips, tools and templates to catalyse your business and improve your customer understanding immediately.

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.

What a Customer First Strategy Means Today (Why Your Company Needs to Recenter Behind It)

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Every few days there seems to be another customer service disaster that fills the newspapers and online social media shares.

Almost every single organisation, big or small, recognises the importance of their customers. They talk about customer centricity but very few actually go beyond voicing their opinions. Why?

A customer first strategy is not so hard. Just think customer first in everything you do. So how come most businesses get it spectacularly wrong? I think the reason is because they don’t see the immediate return and it costs money to implement. What do you think?

Reasons for having a customer-first strategy

There has been enough research done to prove that the return on a customer first strategy is significant. Here are just a few of the numbers I found.

  • 86% of buyers will pay more for a better customer experience. But only 1% of customers feel that vendors consistently meet their expectations. CEI Survey
  • 89% of consumers have stopped doing business with a company after experiencing poor customer service. RightNow Customer Experience Impact Report
  • By 2020, customer experience will overtake price and product as the key brand differentiator. Customers 2020 Report
  • A 10% increase in customer retention levels result in a 30% increase in the value of the company. Bain & Co

Those are numbers that would make any CEO sit up and take notice! But will it make them act? What’s holding them back from investing in their customers rather than (just) in the products and services they offer?

I believe that those numbers can no longer be ignored. It’s time every CEO started initiating a move to a more customer centric organisation. NO more excuses; this has to be (OK, one of) your top priorities!


If you’re ready to put your customers first, then why not sign up and join the FREE Customer First Strategy Webinar. In it, I share many Tips, Tools and Templates to improve your Customer Targeting, Understanding & Engagement to Grow your Business Faster.

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Marketing are too busy building brands

With so much information available today, marketing is being challenged to demonstrate its ROI. This might explain why they are still putting their efforts into brand building, sometimes to the detriment of their customers, consumers and clients.

However, an analysis run by IBM on research carried out in the UK last year by the Callcredit Information Group gives a different reason. They found that the majority of marketers is feeling overwhelmed by all this data. Their explanation for this is that "only 29% of marketers believe they have the necessary skills to analyse data, with 44% planning on investing in further training over the next two years to boost confidence within their organisations around the handling of information." 

According to a Forrester report, 44% of B2C marketers are using big data and analytics to improve responsiveness to customer interactions. But of equal importance in terms of top two mentions, is the desire to generate insights. ( Source)

Top 3 critical factors to marketing program success

It surprises me that despite the constant flow of data into companies they still lack insights into their customers. As I'm often quoted as saying:

"We're drowning in data but thirsting for insights."

Marketing is clearly so busy using data to manage pricing, distribution and communication channels, that they are not using the information to get to know their customers better. This conclusion is confirmed by a and-sales/#3fdc714521cf">Forbes article which mentions that marketing is using big data to provide answers to "which content is the most effective, how to increase conversion rates and customer lifetime value." It would be good if they used it to increase satisfaction and loyalty, no?

Big data has actually done customer understanding a disfavour since organisations are hardly increasing their spend on market research according to ESOMAR's latest industry figures. The industry grew a measly 2.2% in 2015, the first "significant" growth recorded in five years! Compare this to the more than 4% increases recorded for ad spend over the past five years.

 

ESOMAR MR industry growthTrends in ad spend

 

 

But there is some hope. A recent report on the KPIs used by marketing showed that Marketers are using a variety of metrics to measure the impact of their brand marketing activities. and.me/state-of-branding-report-2017/">(OnBrand Magazine study) In surveying more than 560 global brand managers and CMOs, the analysis concludes that new customer acquisition (75%) and social media engagement (72%) are the two primary ways they use to determine the success of their brand marketing efforts.

However, there is still a lot of room for improvement. A 2016 and-insight/2016-cmo-summit-survey-highlights">Spencer Stuart survey shows data analysis and insights are one of the three main areas where CMOs need the most development as a leader. Unfortunately, they are also the skills which more than a half of them say are most difficult to find when building a team!

 

CMOs need more analytical skills

Marketing team skills needed

So if CMOs can't develop insight about their customers, shouldn't market research be more not less important to them? After all, it's the one profession which spends its whole time trying to understand the market and customers. So what's going wrong?

 

Market research is seen as a cost, not an investment

Companies still need market research to understand their customers. Yes, there is a wealth of information flooding into organisations with the IoT, but those numbers don't tell you their "why." That's where market research comes into its own. It needs to provide more "why" answers and not just the mere statistics they seem comfortable dropping on the laps of executives and marketers alike.

I believe that (a large?) part of the issue is also the researchers themselves. They're not sociable, speak a language others don't understand and seem afraid to voice their own opinion let alone make recommendations.

This was recently confirmed in The Vermeer Millward Brown Insights 2020 research. It clearly showed the advantages of a senior market research position at board level. But to get there, most researchers need new skills. The critical capabilities which were said to highlight the biggest differences between leaders and laggards were in business acumen, creative solution thinking, storytelling and direction setting.

It seems a real pity to me that the very people who should benefit from the explosion in data availability are not profiting from it. As if their needed skills are not enough, there is also a real opportunity for them to lead the customer first strategy in many organisations.

Customer services are seen as complaint handlers

When I was first hired to head up the global consumer excellence division for Nestle, I found a group of siloed departments which rarely shared information. Even worse, the customer care centre was seen as mere complaint handlers. Their image was of a group of women who spent their days on the phone talking to other women!

I don't think Nestle were the only ones who had this image at that time. I still find similar perceptions in many organisations which thankfully become my clients through a desire to make changes.

You only have to take a look at companies which excel at customer care to realise the business benefits of putting the customer first. Amazon, Southwest, Zappos to name but a few.

An excellent article by Shep Hyken called " and-customer-experience-cx-trends-for-2017/#415839175e58">Ten Customer Service And Customer Experience Trends For 2017" details the essentials of a forward-thinking customer-first strategy and what it means today. In it, he mentions that "According to Forrester, 72% of businesses say that improving the customer experience is their top priority. A study from NewVoiceMedia indicates that companies lose more than $62 billion due to poor customer service. No company can afford to be a customer service laggard."

The Forrester report from which Shep quotes was from an ongoing analysis that has been run each year since 2010. The key findings from the 2016 report showed:

  • In all five sectors they covered, companies with higher customer experience (CX) scores outperformed their rivals in revenue growth
  • CX leaders showed an annual growth rate of 17% compared to just 3% for the others.
  • The cable and retail industries beat the field in CX by 24% and 26%, which is a huge boost to the bottom line.
  • Even in the sector with the smallest range (airlines), there was a 5% difference between companies.
  • This also translated into subscriber growth – in the cable industry leaders grew internet subscribers by 23.9% more than others and video subscribers by 13.9%

Along with the previously mentioned statistics, I can see no reason for a company not to invest in a customer-first strategy. If you can think of any yourself, then I'd love to hear them in the comments below.

 

In conclusion

So to answer the title of this article, a customer first strategy needs an organisation to recenter itself behind this company-wide objective. It can make a real difference in terms of both sales and profits to those who follow this direction. But it is essential to have executive support and true commitment from every employee to think customer first.

 

It will take skill upgrades for both marketing and market research departments to translate the data and information gathered into actionable insights.
And it will mean every employee having the chance to get close up and personal with customers. This is the only way for them to understand the role they play in satisfying and delighting them.

 

Are you ready to adopt a customer-first strategy? If so, then let's discuss how you can identify the priority changes needed through our proprietary C3C Evaluator tool. Book a free half-hour strategy session and we will send you the link.

 

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