In most countries, the Police have a love / hate relationship with their population. You can imagine my surprise, therefore, to find myself writing about how they appear to be adopting a customer first strategy in Switzerland!
Let me explain. They have recently introduced many new-style speed radars in the villages around my home town in Switzerland. The elements are not that new per se, I know, but last week it suddenly hit me why they are so effective. They are customer centric. They have adopted a customer first strategy! And that’s why I want to share this story here.
One of the reasons why the Police are disliked in many countries, is because of their speed radars.
Whether they are permanent fixtures as on the right, or temporary ones, we all dislike the flash that tells us it’s too late, that we’ve been “caught.”
We then wait a few days, to weeks or even months, naively hoping that it wasn’t our car that was flashed. But eventually the letter arrives asking us to pay a fine.
I think the worst of them all are the laser guns that the Police have been using for many years now. We don’t even know we’ve been flashed until the communication arrives at our home, or we are pulled up a few hundred meters down the road.
The relatively new types of radar that are being introduced in my home area don’t flash either. But that’s because we never get “caught” as such.
You see they measure our speed and give us immediate feedback. Take a look at the photo on the right; I’m sure you’ve seen such installations before.
Now if we make the assumption that all four types of equipment are to get road users to decrease their speed in critical areas – and not just to gather money as I’ve heard suggested – then the results must vary widely.
So let me share my thoughts from the perspective of a customer first strategy champion.
Everyone quickly knows where these are located. In fact, in some countries there are warning signs and they are actually highlighted on the GPS mapping system you may have in your car.
In some places the permanent radars are not always functioning, as the cameras inside them are rotated between installations. It is therefore not possible to know which radars are active and which aren’t. The Police then get a multiple deterrent effect, beyond the number of cameras they have purchased.
What I have observed with these radars is the following behaviour. The traffic is rolling along “normally” and then everyone brakes hard just in time to pass the radar below the speed limit. They then speed up again to continue along the road.
This phenomenon is in fact well known by the Police. They sometimes add a second, mobile radar a few hundred meters down from the permanent one, to catch those who are once again speeding!
Even the warning signs, as on the right, don’t have much impact on drivers and the speed limitation is quickly forgotten.
Whether they get caught with the first or second radar, the impact on the end customer, the driver, will be the same.
They feel angry and frustrated, which makes them less attentive, and may result in them driving more erratically. They may even speed up feeling that now they have been caught, there is nothing more to lose!
Not good for the driver nor the Police’s objective of maintaining a slower, safer speed in the vicinity. Clearly not a part of a customer first strategy!
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Temporary radars are similar to the permanent ones, but it usually takes a day or two for people to become aware of them. Their reactions will then be similar to the permanent radars, with the slowing down and speeding up of their driving behaviour.
This is not good for traffic fluidity, nor for slowing it down. And the drivers’ reactions if flashed will be just the same. Again not good for anyone and clearly not a demonstration of a customer first strategy.
Laser speed guns
These are probably the most hated by drivers. They have no knowledge of where they are, nor even that they have been flashed. It could be argued that they are therefore not a deterrent to speeding, but a pure money-making exercise for the Police.
I admit that the Police do tend to stand in certain places where speeding is a common occurrence. Knowledgeable, local drivers look out for them when approaching the areas and adapt their speed accordingly. But overall they are not really a device to deter speeding and therefore the associated sentiments are very negative. Once again this type of radar would not be used if the Police have adopted a customer first strategy.
The speed radar that prompted this post measures your speed but then immediately gives you feedback. You are rewarded with a happy green smiley if you are within the speed limit. Or a red frown with a message to slow down if you are speeding.
I have witnessed people approaching these devices and slowing down whether or not they are speeding. And they don’t speed up after they have passed them either. How’s that for positive influence?
Also, if the drivers are like me, they also get a feel-good feeling for being congratulated for not speeding. I find these by far the most efficient at controlling traffic speed and fluidity, but of course the Police don’t get any money.
What about your business?
So what does this example have to do with your own customer first strategy? Everything. Because my question to you, as it is to the Police, is what do you really want for your business?
In their case, I am assuming they want to reduce the speed of drivers in certain areas. In this case, the customer-centric approach, which has by far the most success at slowing drivers down to within the speed limit, is the information panel. If that is their objective, then the Police in every country should adopt these new style radars.
But I think that if those who consider speed checks to be a mere money-making operation are right, then the Police will continue to use one of their other options. But they must then accept the negative consequences on so many levels.
So what do you yourself want for your business? If you are sincerely customer centric, you will stop any practices where you know your customers wouldn’t approve.
Half filled packaging – gone. False claims and promises – deleted. Getting credit card details for free trials in the hope customers will forget to cancel and you can automatically charge them for a service that haven’t specifically requested. Not any longer! These all might get you that first sale but you won’t get a loyal customer.
And you? What do you want your customers to think and feel about your brand? What are the objectives you have for your business and customers? These questions are only a small part of the second step of our highly successful 7-step insight development process called CatSight™. If you’d like to know more about it, or get trained in insight-development, or adopting a customer first strategy, just let me know – I’m only a call away.
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I presented last week at an exciting, forward-looking conference in Fort Lauderdale, USA. It was ITEXPO, a successful conference celebrating its twentieth anniversary this year! The huge turnout of thousands clearly shows the value that both attendees and exhibitors get from it.
This year the programme included a new stream, the Future of Work and that was the one in which I was invited to speak. Before summarising what I presented, I’d like to share some of the ideas and takeaways that I discovered about digital marketing and the impact of AI (artificial intelligence) and ML (machine learning).
From text to voice:
Most of us have grown up with text communication, but Gen Z, those born after 1996, are more comfortable with voice. They are less formal but far more impatient than previous generations.
They expect Alexa, Siri, Cortana and similar voice-activated personal assistants to be available whenever they have a question. With this type of search expansion into daily life, being on the front page of Google is no longer good enough. You have to be the number one answer to their questions!Being on the front page of Google is no longer good enough; you have to be the number one answer in this voice-activated, personal assistant supported world we live in. Click To Tweet
AI is not one technology:
Despite what digital marketers may have hoped, AI is not the solution to all our problems. It is simply a series of technologies addressing various current and future customer needs.
Unlike normal analytical processes, using AI needs developers and users to start with the end in sight. Knowing what we are looking for, rather than waiting to see what the analysis brings us, needs a very different thought process. The questions asked become as important as the answers received, if not even more so. Therefore it is advisable to make them the best you can possibly ask. Your digital marketing has everything to gain and nothing to lose.
AI is far from 100% accurate:
AI is still in its infancy, despite great leaps forward in some areas in the past year or so. For example, language translation is still far from accurate today, but that doesn’t mean it’s not useful. Anything that moves us toward increased customer satisfaction from our digital marketing efforts is great. However, we must understand their limitations and not be fixated on perfection.
One of the biggest challenges is siloed data – still! It is easy to see that the more information sources we integrate, the more accurate our platforms are likely to be. But until we finally break down our internal silos AI will not be able to deliver to its full potential.
Taking the robots out of humans:
Robots are not new. Henry Ford was one of the first to realise the advantage of taking robots out of humans. In other words, gatting machines to do the boring, repetitive tasks done until then by people.
Today we need to consider the digital workforce as also an HR challenge and not (just) a technical one. Humans are not upskilling and progressing as fast as robots are. This is the real cause of any work losses that may happen as automation rolls out.
The future of work
Now that I’ve touched on the elephant in the closet, that everyone is secretly scared about, that of job losses, let’s talk about employment. The future is not so much about replacing workers, as in expanding and amplifying their work through the use of AI.
The future will be a world of work plus AI, not work minus AI. When, not if, robots take on many of our current tasks, humans will need to supplement their knowledge with soft skills, ones that AI can’t replicate, at least for now. This is why I, like many others, refer to AI as augmented intelligence rather than artificial intelligence.AI should refer to AI as augmented intelligence rather than artificial intelligence. We are not replacing people but increasing their capacities in many areas. #AI #Digital #Intelligence Click To Tweet
One area that will certainly need a tremendous amount of human input is in speech analytics. You probably don’t realise it, unless you’ve learnt another language or two, but speech has an enormous diversity in the ways to say the same thing. Just ask any owner of Alexa, Siri or Cortana! Sometimes their responses are hilarious, at least at first, but these quickly become irritating and frustrating, when you can’t make yourself understood.
If robots are to understand humans, then these alternative expressions need to be programmed in, before being understood. Although machine learning may speed our progress, the foundations must be identified and created by humans.
AI and care centers
Most businesses have customer service departments and many are jumping on the bandwagon of requesting AI. However most don’t really know why they need it! The case for AI has to be put into terms of its business impact and relevance in order to be valued beyond mere “modernisation.” Just ask anyone who has chatted with a bot or gone round in circles on self-service phone lines! So many corporations today have increased their technology but have not improved their customers’ satisfaction.
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AI is already proving to be of great value in following and analysing customer service connections. A supervisor can’t listen in or read every exchange, but AI can. However, as previously mentioned, understanding speech is still in its infancy, especially when it comes to sentiment. An agent will quickly sense when something is wrong or an answer is unsatisfactory, even when the customer is saying everything is alright.
The customer journey that led to the connection, is just as important as the call itself. This is where total integration of all touchpoints is vital. The customer already sees them as such, but most companies do not. This leads to irritation when a customer must repeat their details and experiences with each new customer service agent.
It could be so easily eliminated, by simply integrating multiple data sources and then assessing the customer’s “effort” in getting the answers they are looking for. The greater the effort has been, the quicker a solution should be found.
I believe that not taking the customer’s perspective here is the root cause of this less than satisfactory situation today. Once again, adopting a customer first strategy is the answer. If you would like help with this or don’t know how customer centric you are today, why not contact C3Centricity and complete our complementary C3C Evaluator™?I believe that not taking the customer's perspective is the root cause of many less than satisfactory situations. #CEX #CRM #Customer Click To Tweet
Customers in developed markets already have far more interaction with AI than they probably realise. However, when developing chatbots it is important to allow for far more variation than we are aware of. The challenge is not only understanding the variations in vocabulary mentioned previously, but also colloquialisms, spelling mistakes, acronyms and alternative expressions.
Therefore, instead of aiming for perfection, by brainstorming all possible variants, our time is better spent in identifying the 20% of variations that cover 80% of the cases. Ideally we should first collect information and then analyse what the company is likely to receive most of the time. Perfection is once again the enemy in progressing the use of chatbots.
We also need to be transparent about when chatbots are being used. It may be a good idea to make them respond in a friendly way, but pretending to actually be a human is not a good idea. Customers will eventually understand that they are exchanging with a chatbot when the responses they are getting do not meet their expectations.
AI and taking digital marketing to the next level
After all these intriguing sessions, it was my turn to speak. Luckily I was taking a far more practical approach to digital marketing, AI and ML, which I am happy to say was met with enthusiasm. The audience were fascinated with my hands-on perspective and had loads of questions and comments at the end of my talk.
I would be delighted to share my slides with any reader who would be interested in seeing them, but to summarise my main points:
- Digital marketing has made our communications’ media choice even more challenging. There are far more channels than ever, many being used concurrently, especially by the under 35’s (for example TV and the internet).
- There are more brands vying for space online. The relative cheapness of advertising on the internet means that those that didn’t have access to traditional media because of their high costs can now communicate.
- Customers are more demanding and expect real-time responses to their questions, and ever shorter delivery times for purchased goods.
- AI and ML can improve digital marketing through predictive intelligence, content curation / creation, dynamic pricing, and especially by improving the customers’ overall experiences.
- Digital is best used as an amplifier of traditional media, and when connections need to be more individualised, relevant and timely. This is not always the case, so choose wisely.
It is exciting times for marketing with all the opportunities that technology, AI and ML offer us. However, we are still faced with many of the same challenges we always have been. Essentials such as knowing and understanding our customers more deeply, and removing the siloed information hubs within organisation, remain critical.
Without finding solutions to these, digital marketing will perhaps be cheaper in terms of investment, but could become a more costly exercise and no more effective. What do you think?
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If you commission or conduct market research, then this post is a must-read. It shares ten important reasons I have learned over the years for NOT doing research, but which are unfortunately still prevalent today. Which, if any, are you guilty of? Leave your comments below – I dare you!
#1. WHEN THE ISSUE / OPPORTUNITY IS NOT CLEAR AND THE OBJECTIVES ARE NOT WELL DEFINED
Most organisations will have a briefing of some sort, written or oral, for each piece of research that is required. It usually includes the background to and the objectives of the project. These should be specified in terms of the opportunity or issue identified, as well as the relevant information and data already gathered and analysed.
If the briefing doesn’t include these basic elements, it might mean that someone wants to know or understand something and just thought research could quickly provide them with the answers. Wrong! The best studies come from a thorough situation analysis which should include a complete review of all current knowledge and past research findings.The best MR studies come from a thorough situation analysis which should include a complete review of all current knowledge & past research findings. #MRX #CustomerUnderstanding Click To Tweet
#2. WHEN THE COST WOULD EXCEED THE VALUE OF DOING THE RESEARCH
Following on from the above point, when requesting a study, if the objectives are well defined, then the decisions and actions resulting from the findings should be clear. If they are, then the expected benefit of the information to be gathered will be evident.
Thinking about how you will use the data and information gathered is one of the best ways to estimate the true value of a piece of research. If the decisions and actions to be taken cannot be clearly expressed, then the research results will be just “nice to know” and not “need to know”. It also suggests that the objectives have not been well defined and I would suggest you revise them before continuing.
#3. WHEN THE BUDGET IS TOO SMALL TO DO AN ADEQUATE JOB
Most agencies would agree that clients often want a top-class work, but at a lower price than it would cost. Some clients even make a point of negotiating all prices downwards on principle. But this is a bad and futile habit. Their reputation soon goes before them. Agencies will then start adding an amount that they will remove in answering the client’s request for a cost reduction. If an agency is to become a true partner then transparency is one of the foundations, in both directions.
A second example of this aspect of cost is when a client wants to do research but doesn’t have an adequate budget to cover it. They may be tempted to request something “quick and dirty”. My recommendation to any agency who received such a request would always be to refuse to get involved. If it is worth doing it is worth doing well, and a good agency will always work with the client to accommodate their needs as best they can within the budget available.
You have heard, I am sure, that any project has three parameters: price, speed and quality. You can have two but never all three – yes even in today’s digital age where some agencies may claim that you can have all three!
#4. WHEN TIME IS AN ENEMY
How many times have you been asked to run a research project, but in fact the requestor is actually in need of the results – now?! As already mentioned in #3 if a study is worth organising, it is worth executing to the best of our abilities.
If the person requesting the project is unable to give you the time you need to run it, then simply refuse! However, today there are many ways to reduce the time needed to run a study. We can use panels, the web, or reduce the sample size or number of groups / regions covered. The best projects are developed as a win/win, with client and agency working together to deliver the highest quality results within the available resources of both time and money.
One of the biggest frustrations I remember having when I worked in market research, was a delay in the delivery of materials to be tested. Even when they turned up days or even weeks late, we were still expected to deliver results and recommendations on the originally agreed date! I know it is hard to refuse, but the briefing document should shield market researchers from exactly these situations. Timings should be shown from delivery of materials and not the date the brief is sent. Make sure yours do and you should avoid most such problems.
#5. WHEN CONDUCTING THE STUDY WOULD “TIP OFF” THE COMPETITION
This is a difficult situation to be in, as it is often a real worry of management, especially when conducting market research on innovation projects. Whilst it is a very valid concern, a lot can be done to limit the risk, although it cannot honestly be completely eliminated.
There is an interesting perception in many industries, that most major companies are working on very similar developments within a similar time scale. Therefore, competition is not likely to be surprised if they learn about your own efforts. The most important thing to do to reduce the risk of tipping off the competition, is to ensure that people who work, or have friends or family members working in relevant professions and positions, are eliminated at the start of the research. However, I myself know what is behind this question, so will often “lie” in order to learn something new, so be warned!
If it is vital that your development remains secret, then either run research amongst your own employees, which may bias the results, or just don’t conduct market research.
#6. WHEN FINDINGS WOULD NOT BE ACTIONABLE
If the information will be “nice to know” but will not be actioned, (and I have seen many of those in my career!) then you shouldn’t be running the project. This can happen when the objectives are not well defined, or when action needs to be taken for a brand, but no one knows what to do.
Running a research project will certainly get people active, but not necessarily moving forward in a relevant way. It will also delay the required situation analysis that would be far more beneficial.
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#7. WHEN MARKET RESEARCH IS POLITICALLY MOTIVATED
This situation can arise when a researcher is relatively young in his or her career and doesn’t feel confident enough to refuse a project. It can also be linked to a half-hidden requirement from management concerning the outcome as well. This puts the researcher in the difficult situation of working on a project that will be ignored if it doesn’t confirm the boss’s opinion.
In these situations it is vital to agree upfront what actions will be taken based on the outcome. In fact this is a good idea for all projects; review possible outcomes before the market research is conducted and evaluate the consequent actions that should be taken. They might not be firmly agreed, but at least everyone will have had the chance to review possible outcomes and think about their consequences, before the results are presented. It will hopefully open peoples’ minds and if this is not the case, well the project should not be run.
As mentioned before, your briefing document is your best ally, this time in preventing political market research projects.Your Market Research briefing document is your best ally. #MRX #MarketResearch Click To Tweet
#8. WHEN WHAT IS TO BE MEASURED CHANGES ONLY SLOWLY – OR TOO FAST
Everyone today understands the importance of measuring brand image, to understand what their customers’ perceptions are of their offer and how it differs from the desired image. In most industries, images change slowly, much more slowly than marketers would like to see. Unless there is a significant change in the market such as a powerful new competitor or communications drive, bi-annual or at most annual metrics are sufficient.
The same would apply to usage and habits in a market where very little is happening and customers rarely switch brands or segments. In most of these cases, market research run in the last few months can often be sufficient for most assessments of issues and opportunities.
However, there are also situations where habits are changing almost daily, such as in a heavily discounted or promoted category. In these cases, it is best to run a continuous measurement and present rolling averages. Or another solution would be to measure at the same time each year, accepting that the metrics will be just a “snapshot” of the market at the time of the fieldwork and will have already changed by the time the results are delivered. In such situations, following the trends and any changes from one period to the next becomes more important than the actual level at the time of measurement.
#9. WHEN THE INFORMATION PROVIDER / INSTITUTE IS NOT “OK”
Many market research agencies have been around a long time and have built up solid reputations for high class, accurate data and information gathering. Newer agencies can be faced with a hard struggle to gain market share and a few are tempted to “cut corners” in order to offer cheaper prices or shorter timings.
I remember once discovering that an agency had in fact only run half the agreed number of interviews for which we had paid, and had then “weighted” every answer in the database during its analysis to show a larger base size. Unfortunately for the agency, we asked for the weighted and unweighted base sizes. This is always recommended to ensure there are not skews in the sub-samples or oversized weightings made.
It is obvious that when budgets are tight or timings are too short, neither MR agencies not MR departments should be tempted to meet the demands of management by resorting to such practices.
#10. WHEN THE INFORMATION ALREADY EXISTS
This is linked to #1; all projects should start with a detailed situation analysis. While conducting it, review all current knowledge, information and understanding about the category and market. In some cases it can just be due to laziness that a new study is asked, rather than taking the time to review the results of all previous surveys and analyses.
Unfortunately not all MR suppliers will advise clients that the project has already been recently conducted. I remember once getting very angry when I learned that one agency was conducting three almost identical research projects for different departments of the company for which I worked. Needless to stay I stopped all three projects and asked them to come up with one study that covered all three objectives. This they did quite easily, but they found it hard to accept that I had just slashed their budget in half!
This completes my list of the ten reasons NOT to conduct market research. If you check them before commissioning any work, it will ensure that resources are used correctly. Both client and agency will be happy with the outcome and everyone wins.
Do you have another point you think should be on the list? Then please share it below.
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Every few days there seems to be another customer service disaster that fills the newspapers and goes viral on social media. These usually happen when an organisation does not adopt a customer first strategy.
Almost every single organisation, big or small, recognises the importance of their customers. They talk about customer centricity but very few actually go beyond voicing their opinions. Why?
A customer first strategy is not that difficult to implement. Just think customer first in everything you do! So how come most businesses get it spectacularly wrong? I think one reason is because they don’t see the immediate return and it costs money to implement. Or perhaps it’s because they have hesitated starting and now feel left behind; they just don’t know where to begin. What do you think? If your in one of those situations, then help is at hand. Read on for some of the most useful tips I’ve seen on the topic of adopting a customer first strategy.A customer first strategy is not that difficult to implement. Just think customer first in everything you do! #CEX #CRM #CustomerFirst Click To Tweet
REASONS TO ADOPT A CUSTOMER FIRST STRATEGY
There has been enough research done to prove that the return on a customer first strategy is significant. Here are just a few of the most noteworthy numbers I found during my research online; if you are still not sure it’s worth it this data will convince you:
- 86% of buyers will pay more for a better customer experience. But only 1% of customers feel that vendors consistently meet their expectations. (Source: CEI Survey)
- 74% of consumers have spent more due to good customer service (Source: Entechus.com)
- 89% of consumers have stopped doing business with a company after experiencing poor customer service. (Source: RightNow Customer Experience Impact Report)
- By 2020, customer experience will overtake price and product as the key brand differentiator. (Source: Customers 2020 Report)
- A 10% increase in customer retention levels result in a 30% increase in the value of the company. (Source: Bain & Co)
Those are numbers that would make any CEO sit up and take notice! But will it make them act? What’s holding yours back from investing in your customers rather than (just) in the products and services you offer?
I believe that those numbers can no longer be ignored. It’s time every CEO started to adopt a customer first strategy. NO more excuses! This has to be (one of) your organisation’s top priorities!It’s time every CEO started to adopt a customer first strategy. NO more excuses! This has to be (one of) your organisations top priorities! #CustomerFirst #CEX #CRM #Customer Click To Tweet
If you’re ready to put your customers first, sign up to watch my Customer First Strategy Webinar. In it, I share many Tips, Tools and Templates to improve your Customer Targeting, Understanding & Engagement, to Grow your Business Faster. You will immediately make noticeable progress.
MARKETING IS TOO BUSY BUILDING BRANDS
With so much information available today, marketing is being challenged to demonstrate its ROI. This might explain why they are still putting their efforts into brand building, sometimes to the detriment of their customers, consumers and clients.
However, an analysis by IBM on some research carried out in the UK by the Callcredit Information Group gives a different reason. They found that the majority of marketers are feeling overwhelmed by all this data. Their explanation for this is that “only 29% of marketers believe they have the necessary skills to analyse data, with 44% planning on investing in further training over the next two years to boost confidence within their organisations around the handling of information.”
According to a Forrester report, 44% of B2C marketers are using big data and analytics to improve responsiveness to customer interactions. But of equal importance in terms of top two mentions, is the desire to generate insights. ( Source)
It surprises me that despite the constant flow of data into companies they still lack insights into their customers. As I’m often quoted as saying:
“We’re drowning in data but thirsting for insights.”
Marketing is clearly so busy using data to manage pricing, distribution and communication channels, that they are not using the information to get to know their customers better. This conclusion is confirmed by a Forbes article which mentions that marketing is using big data to provide answers to “which content is the most effective, how to increase conversion rates and customer lifetime value.” It would be good if they (also) used it to increase customer satisfaction and loyalty, no?
Big data has actually done customer understanding a disfavour since organisations are hardly increasing their spend on market research according to ESOMAR’s latest industry figures. The industry grew a measly 1.0% in 2017, down from a 2.2% growth the previous year, the first “significant” increase recorded in the previous five years!
Compare this to the more than 4% increases recorded for ad spend over the past five years.
But there is some hope. A recent report on the KPIs used by marketing showed that Marketers are using a variety of metrics to measure the impact of their brand marketing activities. (OnBrand Magazine study) In surveying more than 560 global brand managers and CMOs, the analysis concludes that new customer acquisition (75%) and social media engagement (72%) are the two primary ways they use to determine the success of their brand marketing efforts.
However, there is still a lot of room for improvement. A 2016 Spencer Stuart Survey shows data analysis and insights are one of the three main areas where CMOs need the most development as a leader. Unfortunately, they are also the skills which more than a half of them say are most difficult to find when building a team!
So if CMOs can’t develop insight about their customers, shouldn’t market research be more not less important to them? After all, it’s the one profession which spends its whole time trying to understand the market and customers. So what’s going wrong?
MARKET RESEARCH IS SEEN AS A COST, NOT AN INVESTMENT
Companies still need market research to understand their customers. Yes, there is a wealth of information flooding into organisations with the IoT, but those numbers don’t tell you their “why.” That’s where market research comes into its own. It needs to provide more “why” answers and not just the mere statistics they seem comfortable dropping on the laps of executives and marketers alike.
I believe that (a large?) part of the issue is also the researchers themselves. They’re not sociable, speak a language others don’t understand and seem afraid to voice their own opinion let alone make recommendations.
This was confirmed in The Vermeer Millward Brown Insights 2020 research. It clearly showed the advantages of a senior market research position at board level. But to get there, most researchers need new skills. The critical capabilities which were said to highlight the biggest differences between leaders and laggards were in business acumen, creative solution thinking, storytelling and direction setting.
It seems a real pity to me that the very people who should benefit from the explosion in data availability are not profiting from it. As if their needed skills are not enough, there is also a real opportunity for them to lead the customer first strategy in many organisations.
CUSTOMER SERVICES ARE SEEN AS COMPLAINT HANDLERS
When I was first hired to head up the global consumer excellence division for Nestle, I found a group of siloed departments which rarely shared information. Even worse, the customer care centre was seen as mere complaint handlers. Their image was of a group of women who spent their days on the phone talking to other women!
I don’t think Nestle were the only ones who had this negative image at that time. I still find similar perceptions in many organisations which thankfully become my clients through a desire to make changes.
You only have to take a look at companies which excel at customer care to realise the business benefits of putting the customer first: Amazon, Southwest, Zappos to name but a few.
An excellent article by Shep Hyken called “Ten customer service and customer experience trends for 2017” details the essentials of a forward-thinking customer-first strategy and what it means today. In it, he mentions that “According to Forrester, 72% of businesses say that improving the customer experience is their top priority. A study from NewVoiceMedia indicates that companies lose more than $62 billion due to poor customer service. No company can afford to be a customer service laggard.”
The Forrester report from which Shep quotes was from an ongoing analysis that has been run each year since 2010. Although it is a couple of years old now, the conclusions are still just as valid. The key findings from the 2016 report showed:
- In all five sectors they covered, companies with higher customer experience (CX) scores outperformed their rivals in revenue growth
- CX leaders showed an annual growth rate of 17% compared to just 3% for the others.
- The cable and retail industries beat the field in CX by 24% and 26%, which is a huge boost to the bottom line.
- Even in the sector with the smallest range (airlines), there was a 5% difference between companies.
- This also translated into subscriber growth – in the cable industry leaders grew internet subscribers by 23.9% more than others and video subscribers by 13.9%
Along with the previously mentioned statistics, I can see no reason for a company not to invest in a customer-first strategy. If you can think of any yourself, then I’d love to hear them in the comments below.
Are you ready to adopt a customer-first strategy? If so, then it’s time to identify the priority changes needed through our proprietary C3C Evaluator tool. Complete it now and then book a free half-hour strategy session so we can go through the results together.
This post is based upon and is an updated version of one first published on C3Centricity in 2016.
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I remember reading an article in the Financial Times a couple of years ago, that challenged companies to search for a new style of marketer. They weren’t speaking about the current need for marketers to be both creative and comfortable with data. They were referring to the growing need for marketers to stand up to the challenge of taking local brands global. The marketer who understands when local specificities make sense and when they don’t, is the one who will succeed in today’s global economy.
In this networked world, more and more successful local brands are attempting global roll-outs. What does it take to repeat the success you’ve had at market level, when you launch globally? Here are my five rules to fortune:
1. Understand the Market
This is the basis of any new product launch and applies just as well to global rollouts as it does to local brand developments. Today’s consumers are demanding, so find out as much as possible about them. Understand their rational needs but also their emotional desires, even if they don’t openly articulate them.
For global rollouts, an additional information concerning the comparison of similarities and differences between the customers in the local and future markets must also be considered. This is where trend following is of particular use, even if you haven’t developed future scenarios, as I recommend here.
Let’s look at some of the latest trends which are growing across regions today.
- I want it now! Consumers and shoppers want information where and when they need it. This has been the case for years. But now they expect to get answers as well as making use of visual search that enables them to buy whatever they see, wherever they see it. Ikea Place offers shoppers the possibility to snap and then see an article in their home environment. Ikea also offers a visual search function for shoppers to identify an item seen in a magazine or real life, and then find similar ones. Dulux’s Paint Colour Visualizer offers shoppers a similar service; you can try out paint colours virtually in your home to see how it will look with your furnishings, before you purchase it.
- Personalised Experiences. Despite the desire for data privacy control, consumers are ready to provide their information in exchange for a better, highly personalised experience. ZozoSuit is one example which enables consumers to order clothing online that will fit them perfectly.
- Join the Club! Another use of personalised data is in providing privileged services – at a price. This idea is used for the regular delivery of razor blades and tampons, as well as for personalised exercise routines and menus. Consumers are happy to join a “club” to pass on mundane tasks to a (virtual) assistant to make their lives simpler. Some successful examples of these include Dollar Shave Club, Freda, and Amazon Dash buttons.
2. Understand the Customers
What does the product stand for in the eyes and minds of your customers? Do those in the new market have the same sensitivities as the ones in the local market where your product has met with success? Will the consumers in the new target market perceive the same benefits in the same way?
If not, is this really a potential market, or are you just rolling-out there due to geographic proximity? I am still amazed how many organisations base their roll-out strategy on geography rather than the customer! Big error!
Examples of such disasters include:
- Kellogg’s Cornflakes launch into India. It failed because they ignored the Indian habit of having a boiled & sweetened milk rather than using cold milk for their cereals, so the flakes went soggy.
- P&G’s Pampers was launched in Japan with the image of a stork which confused consumers. Whereas a stork is fabled to bring babies to parents in the west, this is not the case in Japan.
- Mitsubishi (Pajero), Mazda (LaPuta) and Chevrolet (Nova) all had issues when rolling out their cars into Spanish speaking countries. Had they bothered to check the meaning of the model names in the local language, they would have avoided the negative connotations and the need to change their names after launch.
3. Position Based on a Human Truth
One of the similarities that brings all consumers together is their basic human needs. Think parenting and wanting the best for your children, used by many, many brands, including Nestlé’s Nido and Unilever’s Omo / Persil.
Or what about women and their frustration with not being considered as beautiful as the retouched models in their magazines, which is very successfully used by Unilever’s Dove?
And how about men and their need to charm women, to affirm themselves, that is used by Lynx / Axe from – you’ve guessed it – Unilever, again. (They really do know their consumers better than any other brand builder today!)
Human Truths or Needs are used the world over and form the basis of many very successful roll-out communication strategies. So before you dream of taking your local brand’s success to global stardom, think about what human truth you are using to build it. If you can’t identify it, there is a far lesser chance of your repeating its local success in other markets.
4. Can You Use Your Local Heritage?
Many countries and regions have strong, stereotyped images that can play to inherent qualities associated with certain product categories coming from them. Examples of these include French perfume, Swiss watches, Russian Vodka, Italian fashion, German or American cars and Japanese technology.
If your brand has a strong positive association with local tradition or nationality, then make use of it. Even if consumers in the new market may be less aware, authenticity and tradition are strong current sensitivities on which you can build your brand in new markets. (Just make sure you check trend levels of them before choosing the new countries for rollout!)
5. Understand the Category
As I mentioned above, many companies get their rollout strategy wrong by looking at geographical proximity, rather than the closeness of the customers’ social sensitivities in them. Just because countries are geographically close, doesn’t mean their populations are similar when it comes to category image and usage.
When planning product roll-outs, also consider how alike the customers are in terms of usage and behaviour, as well as the category trends. By doing this, you are more likely to better prioritize the markets most open to the local brand’s product launch.
One Final Idea
I’d like to end with a final comment on global roll-outs. C3Centricity’s partner PhaseOne, wrote a guest post for us on the risks of implementing a global creative strategy. As communication experts, PhaseOne knows what it takes to succeed in engaging customers across the globe. The article makes a great complement to this post and you can read it here: “Why Implementing Global Creative is Risky”
Many companies have effectively rolled-out local brand successes to other countries in the region, if not the world. But many more have failed. What would you add to the list to increase the odds in favour of a regional or global roll-out? I would love to read your own thoughts in the comments below.
If you would like to know more about improving your branding and communications, then please check out our website: https://www.c3centricity.com
C3Centricity uses images from Denyse’s book “Winning Customer Centricity.”
This post has been adapted and updated from ones which were first publicised on C3Centricity Dimensions in 2012 and 2013.
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If you work in consumer goods you probably think you have nothing to learn from healthcare, right? After all, you have consumers in your industry name and well healthcare’s reputation is not that great.
But think again. I was recently in a clinic for surgery and was surprised by how customer (patient) centric they are.
I remind my clients that exceptional customer service examples can come from anywhere! So they keep their eyes and ears open and find inspiration everywhere. Do you? If not, then these lessons will come as your wake-up call so you start opening your eyes to new possibilities. Do this every day and your business will only get better.
Before I give you the lessons I learned, I think I owe you a little background to what led up to this list.
I had been suffering from a bad back for a while. Unfortunately, not so unusual for those of us who spend too many hours at our desks. However, one morning I tried to get out of bed and fainted as an explosive pain shot down my back to my right foot! I was totally immobilised in three seconds flat!
Now living alone I realised that this was serious as I couldn’t move. Luckily my mobile was by my bed so I called the emergency services who immediately sent an ambulance. I ended up spending a night in a local University Hospital for the first time in my adult life.
However, the story doesn’t end there. Two days later I fell down the stairs because my leg had become partially paralysed. Another visit to the emergency room, an ankle brace fitted, a consultant’s assessment, an MRI scan and finally emergency surgery the following day.
All these experiences of hospitals and doctors gave me the superb opportunity to see the health service from the patient’s perspective. I work a lot with the Pharma industry but luckily have never been a patient, at least until now.
As you probably know, actually becoming your customer and seeing the market from their perspective, is one of the exercises I suggest to better understand them. How often do you do it? Ever?!! You really should, because you’re missing out on a valuable – and free – experience.
Perhaps surprisingly, this incident showed me that many of the practices of the nurses and doctors that I witnessed in my heavily sedated state, are easily transferable to any business. This is why I decided to share them with you.
So here are my seven learnings about customer service excellence:
1. Introduce yourself
Every time someone came to my room, they introduced themselves and explained why they were there. Over the course of the days I spent at the hospital and then the clinic, I saw many different doctors, nurses. cleaners, waiters etc. I appreciated that they themselves always started by introducing themselves and stating what their responsibility was in caring for me.
How you can apply this idea: In business, we often forget to introduce people in meetings and when we do, we forget to explain their responsibilities, why they are there.
Perhaps if we did this, there would be far fewer people in meetings, as only those with a real reason to be involved would attend! That already is a time and money-saving idea. But there are even more applications of this idea when it comes to our customers.
Direct contacts with customers, whether by phone, email, chat, social media or in person, deserve the same detailed introduction. This moves the connection from a somewhat cold, professional exchange, to something far more friendly and personal, if not actually personalised.
I often wonder how we so easily forget that customer service is after all just two people connecting and engaging for mutual benefit. Is that how your own customer care centre exchanges feel? If not, how about making them friendlier?How do we so easily forget that customer service is just two people connecting and engaging for mutual benefit? #CEX #CRM #CustomerService Click To Tweet
2. Confirm that you know me
Although I myself saw many different specialists in the university hospital, it made no difference to how I was treated. I felt comfortable that my details had been transferred between the staff members, so they didn’t have to ask me to repeatedly explain what had happened. They also always started by checking my name, to make sure they were speaking with the right person.
How you can apply this idea: While I accept that checking names and wearing wristbands are essential in a medical environment, most businesses could benefit from confirming who their customers are too.
Whether by careful targeting for marketing purposes or by reviewing notes of previous interactions with customer services, a company needs to immediately recognise a (returning) customer.Whether by careful targeting for marketing purposes or by reviewing notes of previous interactions with customer services, a company must immediately recognise a (returning) customer. #Customer #CEX #CRM Click To Tweet
Have you ever been frustrated when calling back a company only to be asked to explain who you are and why you’re calling? I know I have. It always makes me feel that the organisation doesn’t really care about me. And with automation systems easily available today, there is no excuse for this sort of lack of knowledge.
Personalisation has become essential in all engagements between companies and their customers. In fact, this is one of the most important uses of Big Data, both now and for the foreseeable future.Personalisation has become essential in all engagements between companies and their customers. This is one of the most important uses of Big Data, both now and for the foreseeable future. #BigData #CEX #CRM Click To Tweet
3. Ask if I am happy/comfortable
Whatever the reason was for the medical practitioner to see me, they always asked if I was comfortable. They openly encouraged me to share any negative thoughts, feelings or sensations I was experiencing.
How you can apply this idea: Do you encourage critique of your ideas from your colleagues? It takes a strong and confident person to constantly put themselves up for criticism. Too many people look (only) for positive support when asking for opinions, rather than a truly constructive assessment.
Many years ago, one of my first bosses mentioned that when he asked for opinions in a meeting, it was me he listened to the most. Why? Well, not because I knew more than my colleagues. No; it was because I said what I really thought, not what I believed he wanted to hear. Although he didn’t always agree with what I said, he knew that what I said was what I was truly feeling.
Over the years, I came to realise that he was one of a dying breed of true leaders. Many organisations today are political hothouses, where supporting the boss is the only way to keep one’s job!
I hope you are not in this situation because according to a Gallup study, around 50% of employees leave their company to get away from their bosses. If you are in such a situation at the moment, my advice to you is to GET OUT NOW! You will more than likely end up leaving one way or the other, so why waste your time with a boss who lacks this essential leadership skill? You’ll get the support you deserve and more importantly need, to grow, elsewhere.According to a Gallup study, around 50% of employees leave their company to get away from their bosses. If you're in such a situation today, my advice is to GET OUT NOW! #Leadership #EmployeeSatisfaction Click To Tweet
And what about your customers? Do you encourage them to share complaints and ideas? If not, why not? It’s much better to know what’s wrong and put it right quickly, than to continue in blissful ignorance until your customers leave because of it.
According to“Understanding Customers” by Ruby Newell-Legner, you are unlikely to hear from more than just a fraction of dissatisfied customers. And most of those dissatisfied customers will never come back to you. Therefore it makes sense to not only pay attention to complaints but actively search them out – before they damage your business.
4. Ask if you can do more
As anyone who has been to the emergency room of a hospital knows, patience is important. You don’t get seen by order of arrival, but by the importance of your ailment. In other words, if your problem is not life-threatening, you will pass after the road accident, whose victim is more seriously injured. I know this and was happy to actually be left to “float” in a drug-induced relaxation between staff visits.
Whenever they woke me up to “check my vitals” or to inform me of the next tests or treatment planned, they always finished by asking if I had any questions or needed anything else. I was made to feel that nothing was too small or unimportant to them, if it made me feel more relaxed and comfortable.
How you can apply this idea: According to the White House Office of Consumer Affairs “It is 6-7 times more expensive to acquire a new customer than it is to keep a current one.”It is 6-7 times more expensive to acquire a new customer than it is to keep a current one. Click To Tweet
Business, therefore, can no longer afford to merely satisfy their customers, they need to delight them. Do you ask both yourself and your customers what more you can do for them? If you do, you might just find a new product or service concept that answers their desires and gets you ahead of the competition.
5. Don’t stop before the end
When I was admitted for surgery, I was told that the average stay was between 6 and 12 days in hospital. Having thought I was there for just a day or two, this came as quite a shock.
As my progress after the operation was good, I expected to leave the clinic within five days. (I always want to be better than average!) However, with the added complication of the torn ligaments in my ankle, the professor had other ideas. I ended up spending ten days there and was then on a month of complete bed rest before starting physio!
How you can apply this idea: As the well-known Napolean Hill quote goes
“Most great people have attained their greatest success just one step beyond their greatest failure.”
Some people are great at ideation; perhaps you’re one of them. However, ideation without action is just day-dreaming.Some people are great at ideation; perhaps you're one of them. However, ideation without action is just day-dreaming. So get active today! #Innovation #Ideation #Action Click To Tweet
Therefore don’t think your job is done when you’ve come up with an idea or two. You need to follow up to turn the ideas into actions.
Entrepreneurship is very popular today for both individuals and even within large corporations. However so many entrepreneurs try an idea and when it doesn’t immediately work, they give it up for a different one.
Yes, there have been many huge successes recently, but most “overnight” triumphs have come from years of just plain hard work and dedication.
Therefore, as they say “plan the work and work the plan.” Did you know that the origin of this quote is unsure, although it has been used by many people? These include Vince Lombardi, Margaret Thatcher, and even Victor Hugo. With such illustrious support, perhaps you could work your own plan a little better, no?Plan the work and work the plan. #Plan #Action #Learning Click To Tweet
But remember, today’s world is one of constant change, so even if you do plan, remember to also stay flexible and adapt to the changing circumstances of the market or your brand. And never totally give up your plan at the first sign of failure either. Just because one part of the plan didn’t work doesn’t warrant throwing out the whole thing.
6. Don’t wait until it’s urgent
As I tried to wean myself off the painkillers, I found myself alternating between extreme pain and none whatsoever. The carers told me that while it’s a good objective to reduce drug usage as quickly as possible, it is counter productive to not take painkillers when they’re needed.
By my deciding to “wait and see” if the pain got worse before asking for medication, I found that the drugs became less effective.
Small, slow steps work better than giant leaps in so many areas because they are sustainable. Think New Year’s resolutions, like crash diets, new fitness regimes, or changes in lifestyle habits. It’s the small, almost imperceptible changes that tend to last and lead to success.
How you can apply this idea: So many adjustments in business involve making significant changes, whether cultural or process-wise. As the well-known saying goes:
“The best way to eat an elephant is one slice at a time.”
Therefore when introducing large changes within your organisation, break them down into more “humanly” manageable steps. Want to make a radical change in one of your processes? It is often more effective to start by modifying the beginning and the end of the process. The middle steps then adapt automatically as new needs are identified.
For example, in updating your innovation process, start with better identifying the target customers and their needs. Then look how the launch will be rolled out and monitored amongst them. You will quickly realise that brainstorming in a vacuum or testing multiple concepts just before launch is no longer effective – if it ever was! These parts of the process will then be adapted to the new demands.
Time to revamp your own processes? Find out more about our I3: Improved Ideation and Innovation and other 1-Day Catalyst Training sessions HERE.
7. It all starts and ends with the customer
During my hospital and clinic stays I realised that the staff were there for me, not vice versa. I am extremely independent and had to learn to accept the help of others, even for some of the most intimate actions. It was “normal” for them, but not for me.
They recognised that and did everything they could to make me feel at ease. From being there just when I needed them, to eclipsing to leave me alone when I needed space. The staff knew and demonstrated that it was I who was important.
How you can apply this idea: Take a look at your website, your communications, your plans; do they all start and end with the customer?
Do you publish content your customers want to read, or just what you want to tell them? Does your contact information include every possible way a customer can connect with you or just a static form and drop-down menu?
Are your communications relevant and emotionally validating for your customers?
Do your plans mention the customer as often as the brand? Remember:
“There may be customers without brands, but there are no brands without customers.”
Do they also show images of customers and include extensive knowledge and understanding about them?
If not, then perhaps you found inspiration for change in the above examples. Take one small step and make one of the changes mentioned; the benefits will be quick to appear.
For more ideas about improving your customer understanding, why not watch the FREE Customer Centricity Champions Webinar? It shares many tips, tools and templates to catalyse your business and improve your customer understanding immediately.
So there you have them. The seven lessons I learned about customer service excellence from a short stay in various hospitals. As you can see they are all relevant to almost any business environment and industry, whether B2B or B2C.
Let me know what you think in the comments below and also share what learnings you have yourself found from your own experiences. The world is full of inspiration if we just look more closely.
Need help in identifying, connecting and engaging the very best customers for your business? Let us help you catalyse your customer service excellence. Contact us here and don’t forget to check out our “Customer Centricity Champions Webinar.” Reserve your slot before you forget!
C3Centricity used images from Denyse’s book “Winning Customer Centricity.”
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How Can You Provide Better Services For Your Client? This is a great question isn’t it? It was asked recently on Quora and I answered it, as I do many posed on topics such as brand building and customer understanding.
But this question is I believe very different from most of those asked on Quora. That’s because it is one that every company, product, service and brand should be asking!
The answer is actually in the question itself if you look closely.
Provide Better Service
Firstly what is better service? Is your clients’ perspective the same as yours? And better than what or whom? Whenever a comparison is made it is vital to understand with what it is being compared.
To answer that, we need to understand what is important for customers. What is essential and can’t be forgotten, and what else would delight them and make them not just satisfied, but delighted and maybe even surprised. That’s a lot to ask I know, but even that is not enough!
We also need to ensure that we are better than our competitors, assuming that they are to what we are being compared. You’d be amazed how many brands are not competing in the category in which they think they are. We need to understand the exact category in which we are competing so that we can also identify the major competitors. Let me give you some examples.
Are dried packet soups competing with other dried packet soups? Or also with canned soups, or boxed soups, or homemade soups? Depending upon the answer to each of those questions, the competitive set is going to be vastly different.Depending upon the category you identify as being the one in which you are competing, your competitive set is going to be vastly different. Are you sure about yours? #Brand #Marketing #Competition Click To Tweet
Once you know with which other brands you are competing, you can identify your strengths and weaknesses, as well as those of your competitors. You should be able to identify one thing at which you excel in order to have a reason for customers to buy your offer rather than a competitors.
Now it is obviously difficult to be better at everything, but we should strive to be better than every other competitor in the category in at least one area. That should be our USP or unique selling point. It should be what we are known for and hopefully also the reason people buy what we have to offer.
To identify this, we need to know our competitors very well and understand why their customers buy them rather than us. Is there anything about these customers that we could satisfy better than they are? Is there anything about our competitors that their customers are still dissatisfied about? Is there something we can offer that our competitors can’t? Then when we have found it (them), all we have to do is to make sure our current and potential customers know.
Here are some great examples:
TOMS: With every product you purchase, TOMS will help a person in need. One for One®
Target: Expect More. Pay Less.
Avis: (We’re number two.) We try harder.
- Southwest Airlines: We are the low-fare airline.
FedEx Corporation: When it absolutely, positively has to be there overnight.
M&Ms: The milk chocolate melts in your mouth, not in your hand.
Domino’s Pizza: You get fresh, hot pizza delivered to your door in 30 minutes or less or it’s free.
In most of these cases the USP has also become the brand and communication slogan. What others can you think of? Add them in the comments please.
Deep Customer Understanding
The second part of the question is answered by not just knowing but also deeply understanding our customers. By that I mean not just knowing their demographics – they are men 18 to 24, or housewives with young children at home, but a much deeper intimacy with them. I use what I call the 4Ws when learning about Group of customers. WHO they are;WHAT they buy, consumer, read, watch, surf etc,; WHERE they buy, consume, read, watch, surf etc; and most importantly of all WHY? Why do they choose the category, the brand, the pack size, the shop, the time, the location, their hobbies, etc?
Once you know who your customer is (and potentially too) and why they are buying your brand, you will know exactly what better service means for the. Then all you have to do is deliver – beyond their expectations. That is what makes better service great service.
Hopefully this short yet still detailed answer inspires you to now go out and do it for your brand. Enjoy the journey!
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All marketers know their marketing 5Ps, but how do you update your marketing when you adopt a customer first strategy? Here are some tips and ideas for you to adopt – or adapt.
This is the easiest of the marketing 5Ps for a customer centric organisation to adapt because a customer first strategy is all about your customers. However, in recent years, there has been a lot of talk about the importance of employees, some even suggesting that they are more important than customers!
I discussed this in detail in a post a couple of months ago, called ” Customers Care About Products & Value, Not Employees.” Click the title link to read my perspective on this topic.
Personally, I believe that customers are your biggest asset, as they are the ones who pay your wages and make your business thrive. It, therefore, makes sense to know them intimately. If you have a different perspective I’d love to hear it; just add a comment below.
In C3Centricity we use the 4W™ Template to record and describe the customer personas of our clients’ brands.
If you still haven’t downloaded our FREE persona template, CLICK HERE to get your free copy and instructions.
In addition to knowing and describing your target customers in detail, the other tip I give when you want to update your marketing when you adopt a customer first strategy. is to start and end every meeting by asking the “magic question.” What is it? It is this: “what would your customers think about the decision you have just taken?”
This one simple idea is incredibly powerful in identifying actions which are not customer centric. I will give examples of these in the remaining 4Ps below.
So a customer-centric approach to your customers is both thinking about them in every action you take, as well as knowing them as deeply as you can and keeping this knowledge constantly updated.
This is often seen as the most important to address when you decide to update your marketing. After all it is what you are selling. It is also the one thing you think about day in and day out. But it’s not the most important in a customer centric organisation. Surprised?
Think about it for a second. Without knowing the P for people in great detail, you won’t be able to optimise your offer in terms of the other four Ps. That’s why it’s a customer first strategy that works better than any other.Without knowing the customer in great detail, you won't be able to optimise your offer of the other Marketing 5Ps Click To Tweet
Here are some examples of how companies realised they get their product wrong when adopting a customer first strategy and a couple of right actions for inspiration:
- WRONG! Any business that reduces pack content without informing its customers of it and the effective price increase. Read JD Roth’s “Hidden price increases at the grocery store” for more on this.
- WRONG! Exaggerated claims or twisting the numbers of contained calories by having unnatural serving sizes – seven potato chips anyone? Or saying a product is 95% fat-free, but it refers to the weight, not the calories! I once heard that everything written on the front of a pack is a lie!
Check this out with any pack and you’ll see what I mean; there’s sure to be something not strictly correct on it. Please share any funny or annoying examples you find in the comments below.
- WRONG! Making variant identification difficult for customers. Have you ever bought the wrong product because packs were the same colour and just the names changed? I know I have. Or tried to understand the differences between variants that have five or seven descriptors?
- WRONG! Running frequent product tests only comparing to the latest version. Although this is standard procedure, if you make regular tests for small changes which go unnoticed in the short term, they can amount to a big, noticeable change over the long term. Better to compare results also to past best ones than only using the current benchmark.
- WRONG! Any company that makes it difficult for its customers to use their product. Think large bags of pet food or kitchen rolls without easy-carry handles; salad sauce or shampoo bottles which are impossible to open with damp hands; sealed bags which split when opened and need to be stored in a different container.
- WRONG! Making pack or logo changes without finding what your customers like or dislike in the current one. Think about the much-publicised Tropicana disaster back in 2009, or the Gap logo change.
Or more recently the Coke holiday edition white can that consumers confused with the diet version, and were understandably disappointed when they realised they had bought the wrong variant.
- RIGHT! Taking the customers’ perspective when designing your packaging. Think deeply about how your customers will purchase, open and use your product. Don’t make them struggle in any way, whether to carry, open, close or store it.
- RIGHT! Working with your customers to perfect current and develop new products. This is by far the best way to guarantee that you stay connected to changing preferences.
- RIGHT! Be transparent, in your operations, your actions and your plans. If you aren’t, whatever you try to hide will eventually be uncovered and then made public on social media, probably with an accusation of unethical behaviour. United have discovered this many times.
A customer-centric approach to the product when you want to update your marketing is therefore once again thinking about your customers when developing it. And ideally actually involving them in your decision-making whenever possible.
Pricing in my opinion is the most difficult of the marketing 5Ps to get right, especially when updating your marketing when adopting a customer first strategy. You may think that a customer-first price is the lowest possible. It’s actually not! People estimate the value of products and services they purchase, based only in part upon its price.
For example, how many “cheap” products have you bought, perhaps on sale, only to wonder why you ever bought it when you were home? You’d bought on price alone, excited by what appeared to be a “good deal” and then realised your purchase didn’t meet your needs or desires when you contemplated it more rationally at home.
Research shows that customers value a better experience above price and it is expected to surpass both price and product by 2020.Customers value a better experience above price and it is expected to surpass both price and product by 2020 Click To Tweet
Retailers like Aldi and Lidl have used their pricing strategies to position themselves against more traditional competitors. In these new super-discounters, consumers accept limited choice for the sake of rock bottom prices. However, as they expand their offering to include more well-known brands, they have positioned themselves to appeal to a growing target of purchasers.
However, many manufacturers lose out as their margins are stripped to almost zero. This is why we are now seeing a slow realisation that there is a better way to do business than mere price cutting. Both retailers and manufacturers are adapting to new consumer demands of value and not just low prices.
Consumer goods companies, in particular, have for too long relied primarily on price promotions to meet their sales targets. Amazon has forced pricing down in most other categories because people now check online before buying in many categories. However, as Amazon starts trialling their Fresh online groceries and their bricks and mortar stores the whole world of retail is about to change forever.
As if lowered prices is not challenging enough, people expect to receive something for free in exchange for their personal information online. Data has become the trading currency between consumers and product or service providers. This has resulted in many companies even changing their business models. Just one example of this is telecom that has become geolocalization data providers to many other industries.Data has become the trading currency between consumers and product or service providers. #Data #Marketing #SMX #CEX Click To Tweet
A customer centric pricing strategy will enable businesses to continue to grow, by understanding how to fix pricing levels more carefully. Knowing the value of what you offer and the importance of brand or service will enable retailers and manufacturers alike to continue to thrive.
This is a major difficulty for every brand, especially if they have a lot of variants. The answer to improving your distribution is your customers – of course!
The more variants you have the more difficult it usually is to gain a wide distribution. If you know your customers as deeply as you should, then you will be able to identify their differences by region. You can then use these to make decisions about what to sell where.
Since most retailers provide limited shelf space to each manufacturer, it is best used by showcasing your top selling variants in that area, plus eventual new offers to test their acceptance.
Another “place” that it is important to understand today is social media. The Pew Research Center provides a 2016 US analysis of the major channels by demographics which is a great starting point. Ideally, you should know both where your customers are and when. That way you can be present when they are open to messaging. But more about that in the next topic.
This P is relatively easy for a brand to be customer centric. You just have to offer what your customers need, where and when they need it.To have customer-centric distribution, you just have to offer what your customers need, where & when they need it Click To Tweet
I know it’s easier said than done when you don’t have full control over your distribution. This is one reason why many manufacturers are now offering their products directly to their customers through online shops.
The change will certainly have a significant impact on retailers and it is only a question of time before they increase the prices of making goods available in physical stores. In so many categories today, outlets are mere showrooms for people to see before they buy – online.
As with place, knowing what messages your customers are interested in receiving from you and even more importantly where and when are one of the keys to successful communications.
Whether it is advertising, price promotions, social media sharing or other advertising activities, understanding your customers deeply is the other foundation of success.
An organisation which makes it difficult for customers to connect using their preferred channel is not customer-centric.An organisation which makes it difficult for customers to connect using their preferred channel is not customer-centric Click To Tweet
Take a look at your own website contact page. Does it include email, postal and street addresses? Does it have a telephone number or live chat option? It should.
But if not, then I bet it has a contact form with possibly a drop-down menu from which a customer chooses their reason for reaching out. You probably also ask them for all their details, while not providing them with yours. Definitely not fair play is it?
Another related area of promoting your brands is PR. Quickly owning up when you’ve made a mistake, rather than trying to hide it. This builds trust and customers will even forgive companies that do this. Honesty is definitely the best policy when it comes to your customers.
A customer-centric organisation provides their customers with valuable information where and when they need it. They also communicate in ways which enhance their relationship and shows they value their business. If things go wrong they own up quickly, inform the public, say how and why it happened and what they are doing to put things right. They then go on to do just that by taking the appropriate actions, all the while informing their customers of their progress.
Interested in updating your own Marketing 5Ps?
Check out our 1-Day Training courses and download the brochure for more details on each of them.
What Do You Think About Adopting a Customer First Strategy?
Did you notice that the new way of thinking about each of the Marketing 5Ps that I am suggesting involves the customer? Thinking and above all following a customer first strategy is the new marketing objective that gets results.Thinking and above all following a customer first strategy is the new marketing objective Click To Tweet
I believe that both manufacturers and customers will benefit from a customer-first strategy. In fact, research from both Forrester and Gartner has now proven this; customer-centric organisations grow seven times faster and are 60% more profitable. Makes you wonder why companies are not rushing to change, doesn’t it?
Marketers have been working with the marketing 5Ps (and 7Ps) for decades, so perhaps it’s time for an update. What do you think? Should they be translated into a more customer centric approach? What do you see are the major challenges in doing this? Why are some businesses still hesitating about moving to a customer-first strategy? I’d love to hear your thoughts on the topic.