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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.

Forgotten Facts & Fantasies of Customer Delight

If you follow me on social media, you’ll know that I’ve just returned from a three-week visit to Peru. I had the privilege of being the keynote speaker at IIEX-Latam in Lima and decided to take time off to visit the country after the conference. How glad I was that I took that decision, because I discovered that Peruvians are experts in customer delight!

PeruPeru is an understated yet remarkable country that deserves a more amazing reputation than I believe it has today. While its image is dominated by Machu Picchu, this wonderful l and has so much more to offer visitors. From the sprawling cities of Lima and Arequipa to the rugged desolation of the high altitude desert plains and the humid cloud forests, I quickly fell in love with the country and its people.

Of course, my mind is never far from work and I realised that I was so enamoured by this country because it’s people have customer centricity down to a fine art. They are happiest when they are delighting their visitors. Let me share a few of the surprising experiences I had on my trip –  I’m not referring to the amazing l andscapes – and which I hope will inspire your own customer centricity!

 

You’re welcome

Nowhere is this truer than in Peru. The North Americans may be quicker to wish you a good day, or to ask how your trip was, but they don’t really expect nor hear your answer.

It is the opposite in Peru. They go out of their way to ensure you are happy, even when you can’t speak their language.

A warm welcome is something you show your customers, consumers, and clients. (>>Tweet this<<) It is not a simple phrase repeated without depth or substance. It is caring about how you can deliver customer delight. So how do you show your customers that they are truly welcome?

If you have a digital presence and have an opt-in form, then this is by sending back a welcome email immediately, introducing yourself and thanking your customer for signing up. You’d by amazed in this day of simplified automation, that not all websites have this welcome programmed within their sales funnel!

GoldfishAccording to research conducted last year by Microsoft human beings have an 8-second attention span these days. And yes that’s shorter than a goldfish! But more than 70% of consumers expect a welcome email when they subscribe to your offer, according to BlueHornet. So why disappoint a third of your customers before you’ve even started your relationship with them, by not thanking them? Another reason to respond rapidly is that real-time welcome emails see more than 10x the transaction rates and revenue per email over batched welcome mailings according to Experian.

Another way of welcoming your customers’ business is by providing additional value. We all know how Amazon remain the first and best at this with their recommendation engine. But there are many other organisations working with recommender systems, including Netflix, social media platforms Facebook, Twitter and LinkedIn and retail giant Ikea

Do you have something similar to offer your customers? Whether it’s an additional free offer, or a paid product or service, your customers are connected, so make use of their engagement to provide even greater value. And speaking of value:

 

We value your business

The evidence of just how much Peruvians appreciate their visitors again comes down to the warmth of their welcome. But they go even further; I felt that I was treated with real respect. Nothing was ever too much trouble and apologies abounded for even the slightest mishap. The hotel front desk couldn’t immediately answer my question? Profuse apologies, not a canned “sorry to have kept you waiting.” The restaurant waiter had to make me wait thirty seconds to provide something? Profuse apologies and perhaps even a small extra such as a drink or special treat.

QueueOn my first day, I spent the morning getting a local SIM card and changing money. Now I agree that back home these two tasks would have taken me about thirty minutes, but I wouldn’t have enjoyed them nearly as much. They would have been chores to accomplish as quickly as possible. I would have tolerated the queues and been irritated by the time lost waiting to be served.

Not in Peru. In the bank, I was treated to a comfortable sofa, coffee and a TV channel to watch, as my name moved quickly up the waiting list on the large central screen. In the phone company’s retail outlet, I was shown to the front of the line as a “valued new customer.” And then, of course, I got the traditional apology for being kept waiting. None of the tiring, st and-up queues we find in most cities.

How do you show your customers that you value their business? (>>Tweet this<<) I hope not merely by saying that you do – if so, reread the previous point again! Don’t you get irritated when calling a company to hear those automated “your call is important to us” messages before being put on hold for ten, twenty, thirty or more minutes? So why would you think that your customers accept such “lies”? You’re certainly not proving that they are important to you. Find ways to make their wait more comfortable, if not enjoyable. Read ” Changing perception: Simple ways to improve your customers’ waiting experience” on Business.com for some great suggestions from Sarah Pike.

 

We want you to be delighted

There is still a lot of talk about customer delight and satisfaction, but there really is a huge difference. Satisfaction is meeting the minimum st andard of service. Delight happens when people are both satisfied and surprised by the level of service or quality you provide. If you can’t provide an alternative solution such as automatic call back, chat or email response, then at least give the caller an idea of how much time they need to wait. It would be even better if you could suggest a better time for them to call back when lines would be less busy if they prefer, rather than making them merely wait. Treat your customers as you would like to be treated is not a hollow rule for businesses to think about customer delight and service. (>>Tweet this<<)

In Peru, after every interaction with someone, I was always asked if there was anything else I needed. Again not the automatic response upon the completion of a job, but a real desire to provide more than just satisfactory service.

So what are you offering your customers? The lowest acceptable service level at the highest price possible? Do you even know what would delight your customers? When did you last check how their dem ands have changed? We are all excited by novelty, but it makes customer delight difficult to maintain if we don’t have our finger on the pulse of the market. As one of the young digital marketers I follow says “you can never go wrong by offering true value.” (I’m speaking about Neil Patel of course) (>>Tweet this<<) So don’t target anything less than surprise and delight; satisfaction is no longer enough. (See ” The new challenge of marketing: Customer satisfaction is not enough!” for more on this topic)

 

Enjoy the ride, not just the destination

Belmond Group LogoI am sitting on the Andean Explorer as I write the first draft of this post. It is part of what used to be known as the Orient Express Group, which recently changed its name to the Belmond Group because it offers more than just train services. I mention this group because they have customer delight in their blood. You could say it’s old-fashioned in today’s world and I, unfortunately, would agree.

According to Wikipedia, “slow” lifestyles first emerged in the slow food movement. It emerged in Italy in the ’80s and ’90s  as a reaction to fast food, emphasizing more “traditional” food production processes. Too often today we race from one action or experience to another. Think about all the photos you take which mean you never really see the places you visit until you get home and review the slides. What a waste!

I recently experienced just such a regret myself after a flight over the Nazca Lines. I have a few blurry images taken through the scratched windows of the small plane on which I flew. A fellow traveller told me that his pilot told him not to take any photos but to admire the view. I so wish I had done that. What I had expected to be the highlight of my whole trip, turned out to be just an uncomfortable scramble to see all the figures as the plane banked steeply, first in one direction and then the other. The photos on Internet are far better than any I could have taken!

This train ride is another example of luxuriating in a “slow” experience. You could take the luxury coach service from Puno to Cusco and arrive four hours earlier. But you would miss the experience I am having. I actually don’t want the ride to end! Do your customers feel the same about your product or service?

 

We want you to feel comfortable

Cruz del surOne of the many surprises in Peru was their transport system. They rely primarily on coach services between the major cities, but they are unlike anything I’ve seen anywhere else around the world.

The value for money is outst anding. Your luggage is taken from you when you arrive, similar to airport check-in; no hauling your bags on and off the train or coach. Meal service is a three-star affair, not the snacks that most airlines offer today. Cozy blankets and pillows are provided, together with headphones and a personal entertainment system. And the seats, oh the seats! They would put every airline business class to shame! They recline to a comfortable sleeping position with plenty of space for personal belongings.

Starbucks LogoSo how do you make your own customers feel more comfortable? Today’s customers will pay for experience, not for commodities. Which are you offering? With the similarities of products and services today, customers remember how you make them feel, far less than the price they paid. This is why we happily pay five dollars for a cup of coffee at Starbucks or five to ten times the economy price to fly Business or First. Improve your customers’ experience and they will happily pay more. (>>and%20they%20will%20happily%20pay%20more%20[tweetlink]%20%23CEX%20%23Customer” target=”_blank” rel=”nofollow noopener”>Tweet this<<) According to Oracle, 86% of customers will pay more for a better customer experience, but 82% of customers have left a company because of a bad customer service experience. These are HUGE numbers to be ignored at your peril! 

 

We know we can do better

Almost every tour I went on, every guide I had to show me around and every hotel or restaurant I went to, asked me to complete a short survey if I could spare the time. And when I say short I mean short. They rarely if ever went over one page. Just a few, essential questions and a request to comment on what they could have done better to make my visit even more enjoyable.

How many of your own customer satisfaction surveys ask only the essential, actionable questions? Even if you collect answers, do you make regular use of their analysis to improve your customers’ experience? Every business could benefit from following what their customers think of them and I don’t mean by simply tracking your NPS! (Net promoter score) Apart from its now questioned validity, are you even sure that this metric is relevant to your industry? If you’ve never compared your results to sales trends, do so; you are likely in for a shock!

Of course, not everything is perfect in Peru. There’s a lot of rubbish along the side of the roads in the countryside. But there are also a lot of recycling bins everywhere. They are trying hard to educate the locals that the country depends on tourism and as such they must value and protect their own country, as much as the visitors do.

My trip in Peru was truly a “once in a lifetime” experience. Hopefully, the ideas from my experiences have inspired you to make some changes in how you treat your own customers, whatever industry you are in. 

I’d love to hear about any “ah-ha” moments you had while reading this post. If you have further thoughts on how we could all increase customer delight in our businesses then please share them with the thous ands of readers here. Thanks a lot.

And finally, if you know you could be doing better in terms of customer delight, take a look at our and-evaluation” target=”_blank” rel=”noopener”>1-Day Catalyst training sessions and contact us for a quick chat about how we might support you.

 

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