20 February 2012 0 Comments

Customer Centric Is The New Competitive Advantage

For small business, there are some really great wins to be had based around the concept that the customer now has more influence over whether our businesses succeed or fail. As a small business, we are best placed to deliver that awesome customer experience.

I have just finished reading The Customer Experience Edge, one of the most important books I have read in the last 18 months, if not my entire career as a marketer. Why? Because it focuses on the thing I am most passionate about. The core differentiator that sets you apart for all your competitors, the customer experience. “According to research reports, it is predicted that more than 75% of products and services will be undifferentiated in 10 years.” The Customer Experience Edge pgxxxiv. I am seeing it every day with my clients. most are service and product driven rather than customer centric and are  clearly undifferentiated, Very few have profiled their  ideal customer and none have mapped out the customer touch points. Clearly there is a lot of work we need to do.

The way we engage as customers has changed. The way we communicate, shop, review and share. It is this change, fostered by an information and technology revolution, that has on one hand, turned traditional marketing and sales efforts on it’s head in and on the other, is bringing us back to a strategy that I base my marketing company on, having the customer at the centre of our business.

Business from the customer’s point of view is the new competitive advantage.

The Customer Experience Edge is so timely, as it discusses how technology, culture, strategy and execution are are now being harnessed to create customer centric companies thats pure aim is to delight and “wow” customers interactions with them for life.

1. Total customer experience:

Think of how your customers/clients can engage with you or your service today. Web browsing, smart phone viewing, seeking recommendations via social media, in-store visit, email campaign, SMS, phone call, Facebook stream,  advertising on shopping trolleys the list goes on. It is the sum of all these interactions that shapes your customers experience and most rate it as mediocre according to Bloomberg Business Week Research.

There is such a great opportunity to create a truly awesome customer experiences, but why then are they so rare? I believe it is because most businesses don’t spend the time identifying ideal customers and then mapping out their customer journey with a focus on identifying opportunities to delight them.  I think most companies just let the experience happen. Is it really that hard to create a great customer experience? This is where as a small business we can really have an advantage.

We all remember those little extra efforts that people go to because they are so rare. The nice sample added in with your purchase, the card to say thanks for your referral, the colouring pencils and paper at your local cafe for your 6 year old to keep them entertained while you have a well deserved latte. We all notice these little opportunities to really understand us and how to make us feel looked after. These little efforts to endear us are just not very common.

Getting the focus right on your ideal customers and spending a lot of time identifying with them, talking with them and seeking their feedback is part of the key to finding how to gain a better experience.

It is no longer acceptable to just let the customer experience happen.

2. Technology

Technology is a very powerful and under-used resource for all businesses. Just like the ipad taking off as a new entertainment medium, businesses are seeking to leverage technology to improve their efficiency, marketing and  their customer experience. It is how this technology is used and how it is integrated into a customer intimacy strategy that is the real opportunity for small business. Automated email campaigns I have used have back-fired because I have strayed from my ideal customers needs. Frankly one well constructed useful email is better than 15 random messages.

3. Listening

The best use of technology for a small business is in listening. Seeking out what is being said in forums on google, in all the mediums about your business, your competitors and what your customers want. Better still, is to use these technology tools to ask your customers what they want. There is a novel idea! Survey tools, polls, Facebook insights, can all give you incredible insights about how to improve your customer experience, service and product offering and uncover new leads.

Customers feel empowered to tell you exactly what they want and how they want it. They are looking for the right service or product for them, not just an “anybody”. It is hard to sometimes realign your thinking to this huge shift in focusing on the customer. However, it is this customer centricity that is a competitive advantage that is hard to beat.

4. Ignore at your peril

Ignoring the customer is starting to undo many companies. Not only does it make you vulnerable to the competition, but it could make your business extinct very quickly. Bad experiences spread like wildfire and “going viral” can turn a PR glitch into a global boycott these days.

The Customer Experience Edge talks of four keys to creating a great experience.

5. Table: Four Customer Experience Essentials

 

Customer Experience Essential  What It Looks Like 
Reliability Living up to your promises. Example: Consistent on-time delivery, each and every time.
Convenience Offering choice, consistency, and timeliness. Example:Using multiple channels to engage with customers.
Responsiveness Listening and responding quickly. Example: Changing a process or policy when feedback reveals that it causes problems for customers.
Relevance Ensuring that offerings are personalized and meaningful.Example: Gaining insight into what really matters to individual customers at a particular point in time.

 

Reliability, convenience, responsiveness and relevance. At the core of all of these values is the customer. Keep close to them, understanding them and earning their trust.

Customers don’t need to listen to you; you need to listen to them and incorporate feedback into your customer experience.

 

6. Employees

If you look at MacInnis Marketings value proposition it is:

We put in place a system that assists you to make better marketing decisions, attracts a regular stream of ideal customers and creates a brand that your employees and customers will love.

Employees are a big part of that strategy.  The lines between work and play has blurred. Employees are big influences of your brand and the culture does shape your value proposition and the customer experience. Employees play a vital part in sharing information and shaping the business. It is their commitment to that customer experience all the way through the customers lifecycle, that makes a business stand out from it’s competitors.

Giving employees a voice, a forum and the tools tools to communicate as well as the road map of what a great customer experience should look like is vital.

7. Leadership

If you don’t feel it I won’t. That passion for the customer has to begin with you the leader of your company. It is a commitment. To create a great culture and a great brand you have to have that burning desire to get it right for your customer. It is something that makes a great receptionist from an average one, that makes a taxi clean and comfortable experience rather than a terrifying one. When that commitment to create a customer experience is lived by the business leader, it has a far greater chance of it being felt by the end customer.

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5 September 2011 0 Comments

Customer Touch-Points Can Make or Break Your Brand

Today I went to drop my Honda off at a Honda Service Centre for a service. I wanted to share with you my experience so you can see the importance of customer service and that customer touch points give you the opportunity to build your brand or jeopardize it. Listen to this on my podcast HERE.

The way your customers experience their journey with you, especially in a service based business, is such a powerful way to build brand loyalty and devotion but so many businesses stuff it up.

Anyway back to my experience. So it is 8:30am on a Monday morning and I have dropped my son at school and am heading to the Honda Service Centre. My anxiety grows as I try to cross a busy road to find that there is no where to park except crossing a double lane major road and parking on in the small space of in-front of the service centre. I am already stressed.

I go to reception where the front receptionist is on the phone with a bank of calls lined up. I am asked for my registration number which I can’t remember because it is a new car. Another service person searches the paperwork on the desk  and doesn’t find it. I then peak out the window and read the rego number off the car. They find my paperwork.

 

Then I am asked to sit in the waiting area. I have my car key off my set of keys ready to drop, but I go into the waiting area disappointed that I can’t drop and go. The waiting area is packed.  The TV is on. One guy has his Apple Mac on his knees, two of us are checking our phones and two are watching TV. Looking around it feels like a doctors reception. No one looks happy. Most people look like they have been waiting a while. They do have a coffee and tea area but you have to walk around too many people to get to it and it looks like that hot water instant stuff so I don’t bother.

After 20 minutes I am asked not by name but my registration number to come through. I walk 10 steps to a table where the service man asks tells me about what they are going to do in the service.

I stop him. What is your name. He answers, “Peter”, “Well Peter, I have been waiting like I suspect most people in the waiting room to drop off my keys for 20 minutes. I was wondering if there is a faster way that we can drop off our keys and not be kept waiting to go through this process.” Peter explained to me that he needs to get my signature on the the service paperwork. He also explains that it is something that management has put in place and almost washes his hands of it.

I explain from the customer’s point of view it is very annoying and while most car service centers might be the same, it doesn’t mean it is a great experience. I ask if there is a better time to drop off and pick up to avoid the wait.On deeper probing I find out that there is a solution. The is an express service where you can drop off your keys in an envelope and write a note about contact details and service and leave it through their glass door. Eureka!

I was happy there was a better process but I had to ask for it. I said thank you and left.

 

See the problem and opportunities with this customer experience?

Let’s go through it.

  1. I could have been give the Express option on the phone when I booked my service in. This would have been a fantastic benefit to me as a busy small business. Tick one! 

2.The parking. This could be assisted by providing some alternative parking on the other side of this busy road and or looking at a parking solution with another company on the same side.  Even being given notice about this before the drop off would have been better

  1. The receptionist could ask for my name not registration. No1. I am likely to know this and number 2, it is more personal.
  1. The waiting area could be fitted out with the tools and convenience that busy people need. A window area could be fitted out with wireless connection and power for computers or mobile browsing. The coffee could been more visible and clearly having someone make you a cappuccino would be delightful instead of the watered down stuff.
  1. The service person who eventually called for me could of again used my name! Rather than explain what the service department was going to do (at all but if this is a requirement then first) he could have asked, “Do you have any concerns with the car?” He did do this last. He should also introduce himself by name. Peter did ask when I would like to pick up the car which was considerate but he could have increased my confidence and experience if he has said, “Danielle, I am sorry you have had to wait and I am glad you now know of the Express Drop off option, I will ensure that we have your car ready at 2pm for collection.”

 

How many opportunities were missed in this experience? What is more concerning is that having had that experience a few times, this service centre is at risk of people opting for a no-name service centre to do the servicing. It doesn’t take much to think about the small ways to improve your customers experience. Map out the touch points that can really make or break your experience.

Done well you can create a real point of difference that will keep your customers coming back time after time even with premium pricing. Done poorly and you run the risk of them seeking out alternatives. I have no doubt Honda Service is charging a premium and you know what I am happy to pay it, but come on guys you need to vastly improve your process or I for one will be checking out my options!

For more on branding visit my success story on Stockdale Print Staff.

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8 January 2011 0 Comments

Is your small business customer centric?

Customer touch point map

Every interaction between us and our customers is a chance to be customer centric. Ask yourself these questions below to see how customer centric your small business is. And if you don’t know the answers to these questions, maybe it is time to find out! Customer insight is so VALUABLE and very easy to do with online tools.

These questions are adapted from Denis Gershowitz (VP of Client Services for the Anthony and Alexander Group). Denis has a great webinar on Driving Service Revenues and Profits.

1.What percentage of customers do you lose annually?

2.What are the three top reasons why customers leave?

3.Do you have a customer retention plan and do your employees know about it?

4.How do your customers perceive the value you offer next to your competitors?

5.Are your service quality and service training standards defined and in place?

6.When was the last time you examined your process to support the customer?

7. For key accounts what percentage of their business do you get?

8. What percentage of customers have increased their spend with you over the last 12 months?

9.Do you have a customer ranking process?

10. How often does a senior management visit or speak with key accounts?

11. Do you have a customer advocate  in your board meetings in order to capture real suggestions.

To summarise there are really two questions that you MUST answer to become more customer centric and WOW them.

1. What do our customers really want and need from us?

2. What can we do better than anyone else in the marketplace and how to we communicate this value to our customers repeatedly through their experience with us.

Speak to us today about becoming more customer centric with a consultation.

Other related posts on customer insight:

Build your business from the inside out.

How much do you love your customers?

Whats your story? Its your decisions and actions.

21 May 2010 0 Comments

What is a brand? Key functions

What is a brand? Key functions

What is a brand?

The collections of perceptions about your company.

Brand is not just a packaging, tag-line and logo. Brand is every interaction with your customers. The perceptions your customers have about your brand, influences whether they choose you over a competitor.

Brand is more than a logo

Do you have brand recognition or awareness or just a corporate identity with a logo. Many small businesses spend a lot of time on their logo or website without considering the messaging to the target audience to see if it will resonate and any time promoting their communications. A brand is not just visual, it is behavioural. Are you listening to your customers?

I bought an Apple Mac computer this week. Until then I had a Dell and had been very happy. The support was fantastic, they were proactive with their sales calls and not pushy. Despite enjoying my Dell laptop it did get viruses and I didn’t feel as cool as I might. I even stuck on a Apple logo on my Dell saying to clients ” I want to be an Apple computer”. So you get the picture. So the time had come and I ventured into their Chadstone store.

The store the atmosphere and the branding everywhere made you feel like you were somewhere special. The uniform of the staff being hip and the furniture and layout super cool. Then  I met a salesperson called Clay. He was helpful but not energetic like I imagined a Apple person to be. I felt like I got the right technical advise but the service  left me feeling ripped off. First I asked Clay if there was anything else I needed (perfect up-sell opportunity). I thought at the end of the conversation I had everything only to discover when I got home I didn’t. I didn’t have the extra software I asked for and I didn’t have a mouse which I think is key. What’s more the 1 to 1 registration that we did for extra support in the store had locked me out on my new computer at home. All of this I could live with but then I experienced more dissatisfaction when I went back into the store for the second time in 2 hours. This time Igor told me I had to bring in my old laptop with my new laptop so they could see how long the appointment time would be for support which I then had to book! Holy cow, totally rubbish support and not only that, apparently wrong. I spoke with another salesperson when getting my wireless mouse and he (Chris) said I could book the support/ lesson on line. Come on Apple what is going on. I tell this story because Apple have nailed their physical brand. The logo, tag, store and salespeople appearance, but it all is devalued the moment you experience less than satisfactory customer service. Someone needs to start training these geeks in customer service fast!!! Interesting also is there is no where on the Apple website to make a customer compliant. Not at all promoting the right image in assisting customers.

Brand attributes: for a brand to do its job well it should have the following benefits.

  • Recognition/ awareness: Does the market know you exist? Have you heard of x company?
  • Top of mind awareness: memorised your brand
  • Brand preference: choose you over others, they need what you do.  They like you.
  • Differentiation: they believe you are different to the other choices.

Remember the famous McGraw Hill ad from about 30 years ago? The one with the grumpy, old man saying, “I don’t know you. I don’t know your company. I don’t know what you stand for. Now, what was it you wanted to sell me?”

Brand can help give you sell you service by providing a level of trust and comfort in the eyes of the customer.

What does branding do?

1.Branding – draws clients to you and gives you opportunity to meet face to face with customers.

2.Brands pulls everything together in a cohesive package which gives the your business a visual identity.

3.Brand can make price less of a consideration in the buying cycle.

4.Brands increase sales effectiveness. Brands help generate leads. It makes lead generation programs work better.

5. Brands helps you beat the competition.

6. Brands facilitate repeat purchases as customers prefer to buy from you.

7. Brands attract the best candidates.

8. Brands increase value of a company.

Brands have many long term financial benefits. So as a small business think about brand as more than the physical elements and put as much effort or more into the messaging about what you stand for and delivering the brand promise to your customers.

Insight taken from Professional Service Marketing by Mike Schultz and John Doerr

17 May 2010 0 Comments

What is your secret sauce?

What is your secret sauce?

Are you memorable or boring? Are you safe or unpredictable? In small business it is important that you are creating something your customers feel compelled to shout about. How do you do this? What is your secret sauce?

Well I believe it has something to do with the customer experience you provide.  The Dijuluisgroup is a company that focuses their efforts on creating world class customer service organisations.

Let’s face it; there is so much choice with products. Just look at the supermarket shelf and the choice of different sorts of bread, milk, yoghurt or tea. Everything has become commoditised. The real last point of differentiation is your service or more so the customer experience that you deliver to your customers in a consistent delightful way.

Everyone will say that they have great customer service but interestingly as John DiJuluis points out that is an internal view point and when you ask your customers you might be surprised about how they rate your service. Most people however only notice your customer service when it is bad. If you screw something up, believe me it is memorable! Customer insight is a key. dijuliusgroup

Customer experience speaks more to this secret sauce. It is about your companies culture and focus on delighting the customer at every touch point. How do we personalise their experience. How do you deliver your experience to the customer currently? If you are not sure how you stack up why not take some of the surveys on the dijulusgroup site. They have one for the organisations customer experience aptitude and one for the individual. If nothing else it will make you think.

Two key questions to keep in mind.

  1. You can make price irrelevant. John tells the story on Jay Ehret Power to the small business of two hairdressers. One had a sign in his window “HAIRCUT ONLY $10”. The salon across from them was a totally different salon and had an average haircut cost of $50. The suggestion was to put a sign in the opposite window saying “We fix $10 haircuts”. The challenge to make price irrelevant is to create a haircut and an experience that is so different is like taking a 60 minute holiday.
  2. Create a fantastic customer experience everytime. Imagine instead of charging $100 per hour for a consultation you charged $1000. Now note down what you would do differently and do it. Make the experience exceptional.

Look at how I create an exceptional experience.

Dan’s Quick tips:

Use the customer and your name a few times when on the phone.

Add some value by doing your homework before you meet a potential client, the web is an awesome tool for this

Ask your customers for feedback every chance you can and act on it, own it, improve it.