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Today’s Toughest Marketing Challenge is Not Customer Satisfaction!

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

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

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

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

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

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

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

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

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

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

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

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

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

Amazon

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

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

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

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

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

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

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

Zappos

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

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

CEO Tony Hsieh is often quoted as saying that

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

That makes it crystal clear how customer centric they are.

Another of his quotes is

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

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

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

Apple

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

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

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

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

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

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

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

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

 

Brompton Bikes

Brompton bikes offer exception customer satifaction
Image source: Brompton Bikes

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

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

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

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

 

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

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

"I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” 

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

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

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

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

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

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Three Clever Ways to Know the Competition Better

What is the secret to success in business? That’s easy! It’s how well you know the competition.

Alright, maybe this is a slightly over-simplified perspective, but it always surprises me how many companies work with a primarily internal focus.

I have written many posts about knowing your customers, such as “Why Customers Are The Answer To All Your Problems (If You Ask the Right Questions).” Watching and listening to them in order to fully understand their rational needs and emotional desires is a great – and free! – way to start.

But today I would like to speak about doing exactly the same thing for your competitors. If you are going to succeed in attracting their customers away from their products and services, then it would make sense to know them as well as you do your own.

Here’s a simple three-step process to do so. 

 

Encourage employees to use competitive products & services

Know the competition better by trying their products and services.In most organisations today, using competitive products is still frowned upon; after all, we make the best don’t we, so why use those of other companies?

However to challenge and beat the competition you have to intimately know what you are up against. Regular contact with competitive products will encourage your employees to evaluate your own offering. They will also be encouraged to suggest competitors’ strengths and weaknesses that were perhaps not evident before. It will also ensure that you are rapidly aware of any improvements made by the competition. You won’t get left behind and find yourself suffering from declining sales due to competitive improvements of which you are unaware.

To challenge & beat the competition you have to intimately know what you are up against through regularly experiencing their product and service offers. #marketing #competition #brand Click To Tweet

This intimacy with competitors’ products and customers should be requested of employees at all levels, by being one of their annual objectives. Of course, in some industries this might not be possible, due to the selective nature of the product or service, but certainly for most consumer products and service companies, this can easily be done on a regular basis.

Now encouraging people to use competitive products is easy to say, but you should also be prepared to invest in it, by paying for your employees to experience them. It would be unfair, and would certainly be resented, if your people had to spend their own money to make such experiences. This knowledge gathering should be seen as an investment by your organisation, of at least equal value to offering your employees discounts on your own products and services.

Why don’t you start a similar process and add these experiences to everyone’s annual objectives? It’s a great way, and a free one at that, to know the competition better than you do today.

 

Make a Library of Competitive Products and Material

KNow your competition better by sharing what you knowIn one of my previous positions, the company had an incredible competitive library. This included every single competitive product that was available from all around the world, classified by country and organised by segment.

Everyone found this library extremely useful, especially when discussing such topics as shelf impact, packaging or in trying to understand our competitor’s portfolio strategy.

However, it was managed by the marketing services team and was hidden away in the lower ground floor where people rarely passed by. Additionally, the packs were emptied of their contents, to avoid infestations of vermin and insects, so people never got to try the products.

It would have been even better had the products been displayed in a location that was easily accessible to everyone. In addition, the products should have ideally been sampled before the packages were emptied of their contents. That said, they still remain one of the few companies I know that have been observing and following their competitors in such a consistent way for decades. As you can imagine, they were always ahead of the market and up-to-date with their competitive intelligence!

Stay ahead of the market & up-to-date with what you competitors are doing with a competitive library of products and communications material. #brand #marketing #communications Click To Tweet

Another client of mine has made a library of communications material. Their advertising agency is of course the major source of the samples, but employees who travel are also encouraged to take photos of ads and promotional materials which are then added to the library. You would be amazed how inspiring it is to review this work whenever a group is discussing their own advertising and promotions. They avoid duplication, get great ideas from countries to which they don’t normally have access, and can again take their customers’ perspective when comparing the samples with their own work.

What could you do to make your competitors’ products and communications more easily accessible to your employees? If you’re serious about wanting to know the competition better than you do today, you have to stay on top of what they are doing at all times.

 

Understand your Competitors’ Customers too

Observe to know the competition betterThis same curiosity to know your competitors’ products can also be used to know and better understand your competition’s customers as well.

When your employees go out to observe your own customers, they should also pay attention to those people who are not using your products or services. In this way they can gather additional information that can then be compared with your knowledge of your own customers.

Whether it is getting a better understanding of your competitors’ products and services or the people that use them, the information accumulated must be stored and shared internally to be of any benefit. Some companies organise weekly or monthly sessions where people from different departments can share their latest knowledge and observations. For more ideas on how to share effectively read “Knowledge sharing and how to WOW!” 

Other companies organise customer connection sessions where teams of employees from different departments – with differing perspectives – go out together with a task to complete or a question to answer. These could be for example:

  • How, where and when do people use our product or service?
  • What is their biggest frustration in shopping for the category?
  • If they could make one change to our major competitor’s product, what would it be?
  • What differences are there in the way the category’s brands are displayed?
  • Which social media channels are most popular with category users?

Employees gather ideas and information by first observing and only afterwards asking questions for clarification purposes. Upon their return, the teams can meet up to share their ideas and learnings, as well as to discuss the impact of their findings and agree on what actions if any need to be taken. For more details on how to observe customers, whether your own or those of your major competitors, read “Five Rules of Customer Observation and Why it’s Hard to Do Effectively.”

I have witnessed these customer connection sessions being run in countless organisations. Every single time I see just how excited and energised employees get about improving the way the company makes, packs, sells or communicates its products and services.

Isn’t it time your organisation got closer to your customers and those of the competition? 

 

These are three ways you can easily and quickly know the competition better than you do today. Do you have other ideas that you’d like to share? I’d love to see your comments below. 

Have you run any such customer connection exercises, or built a competitive library of products in your own organisation? If so please share your experiences too.

For more ideas on how you can know the competition even better, why not organise one of our 1-Day Catalyst Training Sessions? We have them on many areas of brand building, so you are sure to find exactly what you need to inspire and energise your team. Check out and download our brochures here. If you would rather talk through your needs first, then feel free to book time in my calendar. 

This post is an update of one that was first published on C3Centricity in 2011. All images in this article are from the book “Winning Customer Centricity – Putting customers at the heart of your business – One day at a time.” 

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

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

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

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

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

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

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

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

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

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

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

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

The Problem with Trend following alone

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

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

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

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

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

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

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

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

 

How to turn Trends into Future Scenarios

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

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

 

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

 

Success factors

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

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

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

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

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

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

 


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

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

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


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

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

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

 

 

#1. Who is your customer?

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

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

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

 

 

#2. What business are you in?

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

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

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

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

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

 

#3.Who are your major competitors?

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

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

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

 

 

#4. What do they buy?

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

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

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

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

 

#5. What does your customer need?

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

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

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

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

 

#6. What do they think of your price?

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

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

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

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

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

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

 

 

#7. What do they think of your packaging?

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

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

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

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

 

 

#8. What do they think of your product?

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

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

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

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

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#9. What do they think about your advertising?

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

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

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

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

 

 

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

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

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

 

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

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

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

 

 

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

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

 

#12. Why do they buy?

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

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

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

 

 

#13. Why do you sell?

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

 

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

 

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

 

 

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

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

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

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

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

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

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

 

The Opportunities

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

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

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

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

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

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

 

The Challenges

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

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

The report concludes:

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

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

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

 

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

1. Mission and Vision

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

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

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

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

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

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

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

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

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

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

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

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

 

2. Talking to (more) People

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

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

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

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

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

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

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

 

3. Analysing (more) Information

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

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

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

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

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

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

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

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

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

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4. Evaluating New Team Skills

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

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

As a recent article in The Marketing Journal mentions:

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

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

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

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

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

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

 

5. Improving Processes

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

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

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

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

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

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

 

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Say Goodbye to Marketing & Brand Building, Say Hello to Consumer Centricity

Marketing is an old profession. It’s been around for hundreds of years in one form or another. If you’d like to see more about its complete history, then I highly recommend this  Hubspot  infographic.

With the advent of digital marketing in the early 80’s, many companies began to take a serious look at their marketing. They realised that their primarily outbound strategy had to change. Consumers didn’t appreciate being interrupted in their daily lives. However, with the creation of inbound marketing, they still irritated consumers with spammy emails, popups and subtle cookies for following their every move.

Br and Building

Many large CPG companies such as P&G  and Nestle changed the name of their Marketing departments to Br and Builders, in the hope of adapting to this new world. But they failed because they continued to run their marketing in the same old way. With few exceptions, it’s still all about them  and their br ands  and not much about the consumer.

Luckily some other consumer goods companies realised that to satisfy the consumer they had to do things differently. They were the ones that moved to consumer centricity. Or to be exact they started on their journey towards putting the customer at the heart of their business. Customer centricity is not a destination because consumers are constantly changing and their satisfaction never lasts for long. The aim for satisfaction and delight will never end. (>>Consumers are constantly changing and their satisfaction never lasts for long. The aim for satisfaction and delight will never end. Click To Tweet<<)

I think we have taught our consumers far too well! They underst and a lot more about “marketing” than they used to. They underst and that companies have marketing plans and regular promotions, so they wait for their price offs. They realise that in today’s world, products have become more and more similar. Their format, colour or perfume might be different, but there are strong similarities in their performance.

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

Marketing skills
SOURCE: Korn Ferry CMO Pulse Report 2015

Customer Centricity

In response to these ever more savvy consumers, marketing has to change. In the  2015 Korn Ferry CMO Pulse Report, it is confirmed that new skills are now needed. The most sought-after skills today are analytical thinking and customer centricity. Marketing is now as much an art as it is a science. In order to take full advantage of the enormous availability of information about our customers, we can no longer rely on our creativity alone.

How to Know if you're Customer Centric

Companies which place the consumer at the heart of their business are easy to recognise. Their websites are filled with useful information, entertaining videos and games, and their contact page provides all possible forms of communication. Their advertising is consumer centric and emotional, with the consumer and not the br and as the hero. They involve their consumers in many aspects of their business. (see  "The exceptionally easy and profitable uses of co-creation" for more on this topic.)

If you're not sure how good your customer centricity is, just take a look at your own website, or why not complete the C3C Evaluator?

C3C Evaluator

Move Beyond Br and Building

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

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

These are your starter tasks for moving from marketing and br and building to a more customer centric approach. If you'd like more suggestions about moving to a new-age marketing approach, download a free sample of my book "Winning Customer Centricity". The fun drawings in this post come from the book!

 

 

The New Way to Innovate You Must Start Using Today!

When I get several requests in the same week on exactly the same topic, I know something is happening in the marketplace. This week was one such occasion.

A Pharma company wants a presentation on it; a CPG company asked me to give a half-day workshop about the topic; a conference requested a keynote speech about it; a major US business school wants a guest lecture covering the idea  and a consumer goods company wants an article for their newsletter. What’s the topic? The new ways to innovate, that’s what.

With all this interest, and despite having written some popular posts in the past on best-practice innovation, such as “ How to innovate more creatively”, “How to get R&D as excited about consumer innovation as you are”  and “Never succeed at innovation: 10 mistakes even great companies make”, I thought I would summarise the latest trends around how to innovate more successfully today. So here are some ideas to get you thinking about the changes you might want to bring to your own innovation processes.

Customers react to new innovation1. Start with the customer in mind – always

So many organisations still have an innovation process that starts with R&D or operations. It’s time to reverse your innovation funnel and start with the customer. (>>Tweet this<<) What are their problems with current products and services; what do they dream of having? How are they compensating or compromising?

 

If I had asked people what they wanted, they would have said faster horses” Henry Ford

“People don’t know what they want until you show it to them” Steve Jobs

However, as Henry Ford and Steve Jobs remind us, customers don’t usually know what they want. They are usually very clear about what they don’t like, but they also often know the solution they are looking for – even if they don’t express it as such. It is our job to interpret what they are saying into what they need. Therefore, identify the result they want but not how they want to achieve it, otherwise you will be looking for that “faster horse”!

2. Stage-gate innovation is essential for a successful business

Today’s world is fast paced and customers never stay satisfied for long. What surprises and delights today, is ordinary and normal, if not tomorrow, at best in a couple of weeks or months. That’s why it’s vital to work on new product and service developments even before you launch your latest offering.

NEW INNOVATION STAGE-GATESMany companies today work with generation pipelines, with three, four or five stages of innovation preparation. This ensures that they are already working on the replacement of each product they launch, whether or not it’s a success.

3. Line extensions can only do so much

Innovations risks opportunities

According to the McKinsey article “ Reinventing Innovation in CPG“, real growth comes from ground-breaking innovations, not simplistic renovations. However, line extensions do provide the time for organisations to prepare their true innovations, while responding to today’s customers incessant desire for novelty.

They are also easier to develop and launch, which means they are less dem anding on resources. Companies which are satisfied with only incremental innovations are unlikely to see significant growth in the long-term. For this reason successful br ands need to do both. (>>Tweet this<<)

4. Launch before you’re finished

Many tech companies use this approach, by involving customers as beta testers. In this way, they get their customers help – for free – to improve and mould the final offer. It also allows them to launch more quickly and gain the positive image associations of being first to market.

If you are concerned about confidentiality or competitive speed to respond, then work with customers through co-creation. (>>Tweet this<<) Involve them at every stage of the development process from ideation to launch preparation. If your management are  concerned about the risks of sharing innovative ideas outside the company, involve employees instead, perhaps from other divisions so they are less biassed.

5. Review the category in which you’re playing

Are you sure that your customers see your br and in the same light as you do? Many times I have heard a customer correct an interviewer in a research project, when asked about br ands in a category. “That br and isn’t in that segment, category A” they say; “It’s not a competitor of X, but of Y and Z, the main br ands in category B”. Some examples include dried soups which today compete with sauce mixes, carbonated soft drinks with fruit juices and body gels with shampoos.

Another advantage of underst anding the category in which your customers place your br and is that this can provide you with new ideas for expansion.

Mars ice creamMany confectionary br ands have moved into ice cream and desserts. They have understood that they are being seen as more of a “treat” than merely “just” a chocolate bar. When your customers choose between products from several different categories when deciding what to eat or buy, it is a clear indication that you are not (only) competing in the category you first thought you were. (>>Tweet this<<)

In conclusion, there are many reasons why innovations fail:

  • A short-term mindset where success is dem anded in weeks or months rather than years.
  • Top management instils a fear of failure, so no-one will defend ideas that are unpopular.
  • The innovation process itself is biassed towards current knowledge and skills.
  • A lack of deep customer underst anding.

These five ideas will help you to reinvent your innovation and also make it more customer-centric. After all isn’t that what all best practices should do today, involve the customer? If you have other – better? – ideas, then why not share them below?

Winning Customer Centricity BookThis post includes concepts  and images from Denyse’s book  Winning Customer Centricity. You can buy it in Hardback, Paperback or EBook format in the members area, where you will also find downloadable templates and usually a discount code too.

The book is also available on Amazon, Barnes and Noble, iBook and in all good bookstores. If you prefer an Audiobook version, or even integrated with Kindle using Amazon’s new Whispersync service, you’ll have to be patient just a little longer – but it’s coming soon!

 

 

4 “Free” Ways to Connect with Customers for World-Class Understanding

Last week I spoke about five of the most important actions you can take when starting your journey to improved customer centricity. If you missed it, you can read the post  here; it will be good background information to build from for this week’s ideas and suggestions.

In this post, I would like to continue to support your efforts with some suggestions on an area that many struggle with, that of connecting with and underst anding your customers.

I believe that one of the main reasons for this, is that the target customer segment has been poorly defined. Perhaps it is too wide, such as all category users, or only superficially described just in terms of demographics. C³Centricity’s 4W™ Template, free to download in the members area, will provide a simple way for you to complete a more detailed description of your customer. Once you have that, you can then start to connect with them to deepen your underst anding of them.

1. Retail connections

There are numerous ways that an organisation can connect with its customers. If you have a retail presence, then this is as simple as going to a few of them  and then talking to the customers present. If you yourself don’t own the outlet then you will need to ask permission of the owner, but since retailers are also interested in getting to know their customers better, they will usually accept in exchange for your sharing any learnings with them. (>>Tweet this<<) Customers are more sensitive to value than price

Another opportunity to connect with your customers in retail is through promotions, demonstrations and sampling activities. These have the added benefit of being able to speak with customers who are already interested in what you have to offer, because they have stopped beside your st and. They also are generally more willing to take the time to talk to you even if they are busy, something which can be a struggle if you are just walking up to customers in the store. (>>Tweet this<<)

In addition, I have found that both these exercises can be a great way to improve your image with the retailer and may even warrant special treatment for your br and.

2. Secondary connections

If you don’t have the luxury of meeting your customers in person, then there are still ways to learn more about them. If you have a call centre, then why not listen in or even spend time answering calls? It is both a rewarding and useful exercise to do. This is why many organisations such as Zappos, make their new employees do just that in their first few weeks after being hired.

Market research can make you more customer centricMarket research projects are also another easy way to observe and listen to your customers, although in general you will be a silent observer behind the interviewer, who is asking the questions. Some people prefer to follow focus groups or in-depth interviews, even from behind the two-way mirror, since they will have the opportunity to impact the discussions by feeding questions to the moderator.

A third way for you to make these less direct connections is by following social media discussions. These can either be on the major platforms such as Twitter, FaceBook, Pinterest and Instagram, or your company’s own panel if you are lucky enough to have one. In either case, I would encourage you to observe and not get actively involved in the conversations. There have been many infamous embarrassments caused by under-qualified people responding to heated customer conversations on social media. DiGiorno (Nestle) and Progressive are just two of the more recent examples; this post gives many others that can heed as a useful warning should you be tempted to get personally involved.

3. Website connections

Today, most organisations rely on some form of online presence, to be available wherever and whenever their customers would like to connect with them. Understanding why your customers need to contact you is important to providing them with the best experience. 

Understanding why your customers need to contact you is important to providing them with the best experience. Click To Tweet

The first place to ensure you are supplying the right information is on your contact page. Are you requesting customers to complete an online form where you request many details from them? If so, it is definitely worth checking if everything you are dem anding is really necessary for that first connection. Name, email address and perhaps telephone number if you plan to call them back, should be sufficient, together with the reason they are wanting to contact you.

Connect with customersSecondly check that you are giving your customers multiple ways for them to contact you. (>>Tweet this<<) The form mentioned above is a rather anonymous connection, since there is no way for the customer to follow up, other than by sending a second completed form. The vast majority of consumers hate such forms with a vengeance and prefer to chat directly, or at least to be given alternative contact choices. Therefore you should provide your email address, telephone number and ideally a postal address. How many times have you been interested in a company only to find that you don’t know in which country they are based? Frontiers today are more linguistic than geographical, so your customers have the right to know whether or not they can visit your offices in person.

One area where this becomes vital is in online purchasing. Ensure that you make it as easy for customers as possible to shop your website. Enable them to check-out as a guest if they want, rather than imposing the completion of a long form of their details. Kissmetrics wrote a great post on this topic, with good and bad examples, which is worth a read if you are selling online.

Finally you should check the performance of your website; how many visitors do you have, where do they come from and what are they looking for in terms of information? This underst anding could be a whole post topic on its own, but since there are many already available, suffice it to say that if your website is getting few visits or your customers are bouncing away quickly, then it is not serving its purpose of building a relationship with your customers. (>>Tweet this<<)

4. Sharing connections

Meeting and getting to know your customers is probably one of the most enriching and inspiring experiences an organisation can have. (>>Tweet this<<) There is so much you can underst and about your current category and br and users by talking to them, that everyone should find ways to do so on a regular basis. As already mentioned, this could be by speaking with them directly whilst shopping, during a market research project, or over the internet. Share experiences when you connect with customers

You won’t be able to speak to everyone, so you will also rely on your colleagues to make such connections, or even external hostesses. This is why it is important that you get a full debrief, ideally in person, whenever you can.

It amazes me every time I speak to demonstrators, that they just go home at the end of the day with rarely any sort of debrief back to the client. On the rare occasions when they do tell their supervisors something of interest that they discovered, they are generally met with a lack of interest and enthusiasm. What a waste of intimate knowledge about the customer, their likes, dislikes and unmet needs and desires! Therefore share whatever you learn with your colleagues and ask them to do the same.

These are four ways for you to get a deeper underst anding of your customers  and which are probably already available to you today. How many are you using on a regular basis? Which have you found to be the most useful or inspiring. Please share your experiences below; it would be great to hear about your own successes.

Winning Customer Centricity BookThis post has been inspired by the first chapters of Winning Customer Centricity and includes images from the same book. You can buy it in Hardback, Paperback or EBook format in the members area, where you will usually find a discount code. It is also available on Amazon, andnoble.com/w/winning-customer-centricity-denyse-drummond-dunn/1121802409?ean=9782970099802″ target=”_blank”>Barnes and Noble, iBook and all good bookstores. If you prefer an Audiobook version, or even integrated with Kindle with Amazon’s new Whispersync service, you’ll have to be patient a little longer.

Why Marketing doesn’t Always Get the Research it Needs, But Usually What it Deserves

Why do marketers sometimes complain about the market research they get? I’ve often heard comments during presentations such as “We already knew that” or “This can’t be right” or “Why can’t you answer the questions I have?” I am sure you have said something similar yourself or been on the receiving end of such statements. What’s going on?

I believe that one of the reasons for such comments is poor briefing. Poor briefing by marketing which results in a poor market research brief to the supplier. If you too are sometimes dissatisfied with your results, then read on for some useful tips on how you can get the information you need.

Briefing

A market research brief is a document that helps a market research specialist to deliver the knowledge the business needs, in a timely manner. In some cases this will require conducting a market research project, but not always. Sometimes, it may simply be necessary to re-analyse previous work, in a different or more detailed way, in order to answer the questions asked.

Therefore I would never encourage internal clients to always think in terms of requesting a market research project when they are looking for information. In fact I would actively discourage it. This is especially valid when budgets are tight, as cheap research is often useless research.

Choose what you Need

As noted by Arthur C. Clarke, there is a management “trilemma” encountered when trying to achieve production quickly and cheaply while maintaining high quality. This is the basis of the popular project management aphorism “Quick, Cheap, Good: Pick two.” Conceptualized as the project management triangle as shown below, this aptly applies to market research projects as well.

A trilemma

Marketing is a profession where progression is often rapid and therefore the marketer may not be aware of all the information that is available within an organisation. In my opinion, it is essential for market research specialists, who are more likely to have been in their position for many years, to appropriately advise and support their internal clients, and not be just order-takers. (>>Tweet this<<) Unfortunately in many companies this is what they have become, which is such a waste of knowledge and expertise!

When it has been established that a new research project is required, then the brief becomes the vital first step for getting the information that is needed, when it’s needed. It should be drawn up to meet individual internal requirements, and as a minimum it should contain the following sections:

1. Background

This should provide all relevant information on your company’s situation and what risk or opportunity has been identified, as well as how and why this has been identified. Previous reports and studies that are relevant to the situation should also be mentioned and of course have been reviewed for answers before a market research survey is requested. 

2. Objectives

Clearly defined objectives are essential to the success of any project. In addition to the background, detailed objectives allow the best possible work to be carried out  and ensure the research meets them as fully as possible.

Their precision will also avoid many of the comments mentioned above, since everyone will be starting from the same level of knowledge and underst anding, and will have agreed that there is a gap in underst anding that can only be met through the running of a research study.

3. Decisions to be taken

Knowing what questions are to be answered and how the information obtained will be used, will help to identify the best methodology. For example if large investments will be necessary to action the results, then a quantitative study should be conducted, to ensure solid information and as reliable a result as possible.

However, when looking for your customers’ ideas, thoughts, feelings, issues and desires, you could find such answers through a qualitative study or perhaps from the analysis of social media comments online.

The methodology which is finally chosen will have a direct impact on the project’s pricing, so underst anding how the results will be used will avoid any waste in resources. 

4. Budget and Timing

These go h and in h and, both with each other, as well as with the choice of methodology. Normally faster is more expensive, as it requires a larger field force or online panel, and a tighter control of the project’s progress. It is also essential to underst and any budget limitations, as one that is too small for say a large quantitative study should prompt the market research expert to refuse running it. As quoted above, good, cheap, fast, choose two!

One further point is that if timing is too tight, especially for the delivery of results, you may not have enough leeway should something go wrong in fieldwork, or there is the need for more time to analyse the output. I always agree with the often quoted advice of Tom Peters, the American writer perhaps best known for his 1982 book, that he wrote with Robert H Waterman Jr and which is entitled, ‘In Search of Excellence’:

“Formula for success: under promise and over deliver” 

Formula for success: under promise and over deliver Click To Tweet

This doesn’t only apply to timing or market research either; it applies to everything else you have to deliver as well!

5. Research target and approach

Although the MR specialist is the expert, any (internal) client suggestions about the respondents to contact or their preferred methodology to be used, should be clearly identified. If your client doesn’t believe in qualitative work, it may be unwise to rely solely on such a technique. I’ve known companies – dare I say quite a few in the US? – that run tens of group discussions, just to have a “sufficient sample size of respondents to analyse.” If you are likely to meet such criticism, then I think it’s better to know before you start, so you can make relevant changes to the methodology!

6. Test materials and availability

If materials are needed to run the test, whether products, concept boards, advertising prints or videos, clear numbers of copies and their delivery date must be specified. Too often they are delivered late but the research results are still expected to be provided on the agreed date, which just puts everyone under unnecessary and easily avoidable stress. 

7. Deliverables

Not all research needs a detailed report (>>Tweet this<<); sometimes a presentation or summary of the results is sufficient, especially when timing is tight. Again, knowing upfront your internal client’s needs can impact both cost and timing and the likely success of the outcome.

So there you have it, a summary of the seven major parts to a good market research brief. Of course, in reality there are many more sections that can be added, which are more dependent upon internal priorities and specific industry or category requirements.

This post was prompted by a request from a client who is looking to update their market research and insight processes. If you too would like to upgrade yours, then why not contact us today and let’s discuss your own particular needs? Each of our offers is unique and customised, and can include a market research toolbox audit, process updates and one-day catalyst sessions to get everyone on the same page within your organisation.  

The image used in this post came from Denyse’s forthcoming book Winning Customer Centricity, now available for pre-order on C³Centricity, Amazon.com and Barnes & Nobles.

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

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

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

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

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

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

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

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

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

Where you are – the situation analysis

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

Who are your customers?

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

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

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

What is your current image?

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

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

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

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

Why you got here – your key issues & opportunities

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

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

Where could you go – your vision

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

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

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

How can you get there – your strategies & tactics

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

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

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

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

What you need to do – your actions & limitations

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

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

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

Final thoughts

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

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

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

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

C³Centricity used an image from Kozzi in this post.

The Ultimate Guide to Developing Actionable Insights

One of the biggest challenges of many marketers is developing actionable insights about the market and it’s customers.

Are you satisfied with the way you turn your data and information into underst anding and then develop insights on which you can take clear actions? If not, then you will find this post tremendously useful in helping you to update your practices.

Even if you are happy with your insight development process, converting them into actions can still be a stumbling block. In January 2013 Forrester wrote an article suggesting that last year would be the year for market insights. Eighteen months on, things don’t seem to have progressed much, so hopefully this post will enable your own organisation to advance and to get ahead of the competition.

#1. Be precise in your objectives

Your objectives for developing an insight should be presented as a desired change in your target (>>Tweet this<<). For example, if you are looking to increase your market share, you could be looking to find a way to convince competitive br and purchasers to buy your br and instead.

Identifying the change you are looking to encourage is the first step to uncovering a true actionable insight. Are you identifying the change you desire in your customers? If not then this is something you should start doing; it will make developing actionable insights more focused and thus also easier.

#2. Involve a wide range of experts

Insights are not the sole responsibility of the Market Research & Insight Department (>>Tweet this<<). Everyone in the company can bring valuable information and underst anding to address the identified opportunity. Therefore, involving people with a wide range of perspectives can make insight development more effective.

Gather a team of experts to provide a 360° perspective of the category or br and, including for example:

  • R&D, who can bring underst anding of available internal & external technical skills
  • operations who can share current defects and development aspects
  • sales who can add retail perspectives, including distribution, packaging and shelving limitations or opportunities
  • marketing who will provide the communications, image, equity and competitive environment
  • customer services who can add current customer sensitivities, problems or suggestions
  • finance who can highlight any budgetary limitations and ensure financial goals are met

The group you bring together will be a function of the change you are looking to make. I personally believe that the exercise should be run by your market research and insights team, since it is their profession to underst and people and behaviour. They also generally have the widest and most detailed perspective of anyone in the company

#3. Review all available information & knowledge

All organisations have far more information than most employees realise (>>Tweet this<<), including your market research, insight, strategy and planning teams. This highlights the need for having a group of people from different departments since they will bring alternative perspectives and information sources to light.

Once the team has been formed and the objectives for the insight development exercise have been agreed, it is time to organise a complete review of all the available information and knowledge.  You should look for recurring themes, expressions and words across the different information sources that might provide indications of the issues or opportunities around the identified objectives.

As everyone completes the review of the information, a number of working sessions can help to share the information already found and start the process of getting closer to an insight. The actual insight development exercise will take place in another meeting once all available information has been assessed and any information gaps filled.

#4. Walk in your customers’ shoes

I am always disappointed that social media has further encouraged marketers to stay behind their desks instead of getting out and meeting their customers. Is this the case in your own organisation? Although you can certainly learn a lot about your customers’ opinions and needs online, it is only when you take their place that you get the chance to really see things from their perspective (>>Tweet this<<).

Walking in your customers’ shoes can be done in numerous ways and will depend upon the issue or opportunity you have identified, as well as the underst anding you have gained from reviewing all the information you have gathered. You could for instance:

  • go out shopping and purchase item as one of your target customers. This will help you underst and the decision making process of your target customers.
  • compare competitive offers online for a service you propose. Is your website as user-friendly as your competitors’? Have you thought of all the important elements you need to include?
  • call up the customer service departments of a number of your competitors and ask questions about their br and’s uses, reliability etc. Do your own staff provide the same information? Are they as knowledgeable, credible, empathetic?
  • role play your target customer in using your product and identify opportunities to improve for instance its packaging. If your product is used by mothers of toddlers, is it easy to open with one h and? If your product is used in certain dem anding surroundings, such as outdoors, in the car, in the country, at night, is it easy to open and consume in such situations?

Whilst walking in your customers’ shoes, you should be extremely sensitive to any pain points you uncover in considering, evaluating, shopping and using your br and. If you are looking to define a completely new offer, then it is the pain points of your competitors’ offers that you also need to consider. Taking your customers perspective, rather than just observing them, can provide a wealth of information you might not get in any other way.

#5. Fill the gaps

Having gathered as much information and knowledge about your customer as you can, including walking in their shoes, it is important to turn it all into underst anding. This also enables you to identify any information gaps there may be. Never do any market research until you have first identified all the information that is already available on the topic under review (>>Tweet this<<). These gaps can be filled by running a market research project or by acquiring the required information from other sources.

Before continuing with insight development, these new findings need to be summarised and integrated into the knowledge and information already reviewed. If the objectives of the project have been well defined, this should be relatively easy to do, as you had already clearly identified the need.

#6. Develop the insight

At this stage, you will certainly have a better underst anding of your customer in relation to the identified issue or opportunity than you have ever had before. Insight development needs input from every member of the multidisciplinary team (>>Tweet this<<), which can take anything from a few hours to several days. Don’t hurry this process; we are often too keen to get to the action and accept to work with something that is not a true insight.

You will know when you have an insight. When you summarise it in one (or maximum two) sentences phrased as if it were being spoken by your customer, it creates what is known as an “ah-ha” moment. This is when everyone sees it is obvious and wonders why no-one ever thought of it before! I am sure you will agree with me that it is a wonderfully rewarding feeling when you get there.

 

These are the six essential steps to developing true insight, but the most important step of all is still to come, that of actioning them. This is where the multi-disciplinary team really comes into its own. As all the team have agreed on the objectives and the insight, it is extremely easy for them to define the next steps that need to be taken. It also means that all areas of the organisation will work together to take the appropriate actions, rather than just the marketing department which may otherwise happen.

From my experience actioning insights is only a problem when not enough time has been spent at the beginning of the whole process, in underst anding the change in your customers that you are looking to encourage. If you have trouble with this part of the process, then I would suggest reviewing the completeness of the definition of your objectives.

What areas of insight development do you find the most challenging? Do you have any questions about generating or improving your own insight development process? If so, then please add a comment or question below. I would be happy to answer them for you.

For more information on insight development, please check out our website at: https://www.c3centricity.com/home/underst and/ as well as available trainings at: https://www.c3centricity.com/training- and-evaluation/

C³Centricity used images from Dreamstime and Kozzi in this post.

Award Winning Communications are Powered by Insight & Customer Understanding

This time last month, many marketing and communications professionals had just returned from Cannes, France, where they had attended the annual Lions Awards Festival. They are now back in their offices and have probably been comparing their own communications to this year’s winners and wondering what they can do to get one of these coveted prizes in the near future.

For the rest of us, we are also looking at the winners, but more for gathering learnings on how to make our own communications more creative and impactful, without any ambition of winning a Lions one day.

That is why I decided to review a selection of the anding/worlds-17-best-print-campaigns-2013-14-158466″ target=”_blank”>Press Lions Category  and analyse how they might appeal to their target customers. I found three dominant themes running through all the prize-winners, some of which even incorporated several of them in one single campaign. If you’d like to see all the winning ads from these campaigns they can be found in the AdWeek article linked above.

1. Simple & clear messaging

We are all in a hurry these days; we have far too much to do and so we no longer read with as much attention as we did in the past. Today we just skim headlines and articles, and quickly decide whether they’re worth digging into in more detail or whether to pass over to the next one. It is therefore essential that ads communicate their message in a way that is quick to read, underst and and capture. Examples of this from amongst the print winners:

Harvey Nichols – Gr and Prix Campaign

Harvey Nicols insight built communicationsThese are clean, simple ads showing nicely packaged but cheap seasonal gifts, because you decided to  #SpendItOnYourself, as the campaign is entitled. The eye is naturally drawn to the simple red words, since the articles themselves are white on a white background. The reader gets the message and immediately thinks whether they too could give such items, but then also reflect on why they don’t spend (more) on treating themselves. This feel-good reaction makes for good recall of the campaign as well as the positive image transfer to Harvey Nichols.

Zwilling J. A. Henckels – Gold Lion Campaign

Zwilling insight built communicationsRather than saying how sharp these high-end knives are, this is illustrated by the incredibly thin slices of different foods shown in the campaign. The thin slices are then overlapped to show the shape of the blade and the text below is kept in the form of the h andle. The artful design of the whole ad further complements the idea that these are special – definitely not cheap – knives, for connaisseurs only.

 

2. Emotional resonance

The UK was one of the first countries to use shock tactics in their road safety and other public service campaigns. Stimulating people’s emotions is guaranteed to get ads noticed and remembered, but it doesn’t all have to be negative.  Examples from amongst the winners:

Shanghai General Motors / Buick – Gold Lion Campaign

Buick ads built with insightThese ads show real people who have been injured in road accidents, holding up the signs that the drivers that hit them had ignored. The tagline “Signs are there for a reason” is clear and simple, and the images of the injured people emotionally impactful. The reader immediately thinks about occasions when they too have driven recklessly, but were lucky enough not to have injured anyone. The impact of the visuals remains long after the reader has turned the page.

Volkswagen – Gold Lion Campaign

Volkswagen communications built on insightA completely different and definitely light-hearted approach to travel is taken by Volkswagen in this winning campaign. They show how getting from one place to another can be fun in these playful, product-free ads. The visuals appeal as the viewer takes the extra few seconds to underst and it and then takes away the message that driving a Polo GTI is fun too.

 

3. Confirming intellectual superiority

In today’s overcrowded urban areas, people look for ways to differentiate and prove themselves, whether physically or intellectually. This is one of the reasons that gaming has become so popular in all age groups. Finding the hidden signs in an image or underst anding a play on words in an ad can increase the engagement, provided of course that they are neither too difficult nor too easy to solve. Examples from amongst the print winners:

Jeep – Gold Lion Campaign

Jeep communications built on insightsThis campaign includes ads that are both a play on words and images, doubly clever. Jeep shows images of animals which, when inverted became different animals or birds. The tag line “See whatever you want to see” refers to both this as well as to the advantage of the Jeep to place the driver higher up, with better visibility.

Penguin Group China – Gold Lion Campaign

Penguin communications built on insightAt first you might find these Penguin ads rather crowded and confusing, and therefore you don’t immediately “get” the joke – I admit it took me a few seconds!. But look carefully and you will see penguins holding microphone booms in otherwise classical illustrations of well-known literature. The ads are for Penguin’s new audiobooks and are a clever and amusing way to communicate the novelty.

To sum up my findings from this quick analysis, the winners have three points in common:

      • Their messages are clear and simple to underst and
      • They connect emotionally with their audience
      • They offer the viewer something in return for their looking at it

All these ads clearly demonstrate that working with customer underst anding and insight increases the likelihood that your communications will resonate with your target customers. Now we need to wait until next year to see how well these ads perform in impacting the sales and images of the br ands. Which of these will be the real winners of Cannes? I would love to hear what you think.

If you would like in improving your own communications, or in underst anding and engaging with your customers, whether using traditional or new media, then why not give us a call? Let us catalyze your own communications with some of our unique tools; contact us here.

C³Centricity uses images from Forbes  and AdWeek in this post.

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