Category Archives: Customer Insight

This is how to become the answer to your customer’s prayers

Pope Francis at general audience

The simple answer is to make sure you know what they are praying for!

We call this customer insight. In other words, what are your customer’s needs? What are they trying to accomplish and how can you help them achieve it?

While you as the leader of your organization might have these answers, can everyone in your organization answer these questions? Really great organizations have clear answers to these questions and are aligned and empowered to deliver the experience customers value. Their leaders are what we call customer-centric leaders.

Is the Pope a customer-centric leader?

My co-author, Linden was surprised recently when he spoke with a CEO of a multinational business this month and asked him who came to mind as a customer-centric leader. He immediately answered: “the Pope”! Linden said: “Tell me more”.

He then went on to tell explain that a customer-centric leader must be prepared to take risks and he or she must go out and meet with customers and spend meaningful time with them questioning and listening. This type of leader must be prepared to be challenged and also to challenge the current status quo and visit customers in the most difficult markets. This person needs to be authentic with customers and employees through an ability to communicate personal experiences that are relevant and create belief in their followers. He said the current Pope does all these things. He travels widely across different national cultures, talks with his “customers”, takes risks particularly with personal safety and is prepared to question current dogma in the Catholic Church. He comes across as an authentic person with those he meets and how he communicates to the world at large. It got me thinking. Can we learn something from the Pope about customer-centric leadership?

This type of leader must be prepared to be challenged and also to challenge the current status quo and visit customers in the most difficult markets. This person needs to be authentic with customers and employees through an ability to communicate personal experiences that are relevant and create belief in their followers.

He said the current Pope does all these things. He travels widely across different national cultures, talks with his “customers”, takes risks particularly with personal safety and is prepared to question current dogma in the Catholic Church. He comes across as an authentic person with those he meets and how he communicates to the world at large.

It got us thinking. Can we learn something from the Pope about customer-centric leadership?

How a customer culture makes or breaks new product success: A lesson from Comcast

For those of you familiar with our work you will know that we successfully validated the link between a customer centric culture and new product success. Our chart below shows the links between our 8 dimensions of a customer centric culture and the key business performance outcomes.

8 Dimension Performance Links

Essentially organizations that develop a cultural focus that is obsessed with customers, outperform everyone else in the markets in which they play.

I just came across a great example of how this can work in reverse for a company that has not developed a customer culture – Comcast Cable.

Comcast recently announced a major new product – they are now a cell phone provider in the US market:

Comcast New Product Intro

Here is the reaction I found in some comments people who saw this announcement on LinkedIn (the majority of the comments were along the same line….):

Comcast New Product Intro Reaction

This is of course only anecdotal evidence, however, it is going to make it tough to make this product launch a success with an undercurrent of negative feelings towards the experiences many customers have had with the brand in the past….

How you treat your current customers today will have a massive impact on how they will respond to new product introductions in the future. 

Build your company’s customer culture today to ensure you continue to be successful in the future. Learn more in the Customer Culture Imperative, our award winning book.

Adapting to change by putting Customers at the center of everything: Lessons from Macquarie Telecom

Transforming Unhappy Customers into Happy Customers

“The Only Thing That Is Constant Is Change” – Heraclitus 500BC

It’s hard to believe this quote is from more than 2000 years ago… I can’t think of a more relevant quote to describe the times we are living in right now!

From a business context the change we are experiencing is the rapid shifts occurring in customer expectations and behavior. The companies that are embracing this are the ones that are winning and will continue to win in the future.

The question is how do we adapt to this changing customer environment, stay ahead and stay relevant?

Many forward thinking organizations are using increasingly sophisticated customer experience metrics to stay in touch with what their existing customers are experiencing. Specifically they have embedded these processes in a manner that makes it part of their organizational culture – we call this a “Customer Culture”. A great example comes from the work being done at Macquarie Telecom, a leading Telecommunications firm in Australia.

Macquarie’s CEO, David Tudehope, has taken a personal interest in leveraging the Net Promoter Score (NPS) methodology to help drive a customer centric culture. NPS is essentially a simple way to measure customer advocacy. It is based on answering the question – “How likely are you to recommend us?” on a 0-10 point scale. While a great methodology, it is not the right one for every business. What’s more important than the metric is the fact there is a focal point at which all employees can focus on and work together to improve.

For Macquarie, leveraging this methodology has been transformational. It has raised the visibility of the importance of customer experience on customer retention and ultimately business performance. It has also served as a goal that aligns everyone and drives collaboration across the firm.

What have Macquarie learned from their transformational journey that you can apply in your organization?

  1. Engage everyone in the journey – measure every significant touch-point as everyone has an impact on how customer’s experience the company
  2. Be Transparent – display results for everyone to see so teams can see how others are performing and compare results
  3. Celebrate individuals and teams – share great customer stories and celebrate teams with high NPS scores
  4. Integrate into hiring processes – hire people with a desire to create great experiences for others
  5. Customer Success gives employees meaning and purpose – connecting people’s roles with the impact they have on customers provides meaning, inspiration and purpose and will derive up engagement levels and ultimately people’s performance

What are the results?

Macquarie’s NPS is 60+ which means they have many more promoters than detractors (see this post to compare Macquarie’s NPS with the most customer centric companies in the world). While they are not the best in the world (they can still improve), they significantly outperform their competitors in the space they play in.

To read more about how to begin the journey to a customer centric culture, get a copy of our book, the Customer Culture Imperative or learn about the Market Responsiveness Index.

Trump – the ultimate salesman but now comes the true test, will he deliver?

 

trump

Love him or loath him, one thing seems certain. Donald Trump understood the perceived needs of the middle-American “working class” and their real needs for a bigger share of America’s wealth. In business we refer to them as disenfranchised customers. In this case it was a huge proportion of the electorate that felt abandoned and had lost hope of achieving “the American Dream”.

The decisive power of a customer centric sales approach is on show here. He had the odds stacked against him – the media, the Republican party leaders, less resources than his competitor, a perceived lack of authenticity, a flawed character on show for all to see, a dubious business track record and inconsistency in his views. Any independent marketing observer would say the Trump brand was tarnished. Yet he prevailed.

Why? He listened to Americans, understood their anger and concerns and revived their aspirations. He understood how to communicate to them in a way they could understand and he effectively used fear as a motivator for action – in this case bringing them to the polls to vote for him. He used the old maxim – “the fear of loss is greater than the desire for gain”. It demonstrates that if you can tap into real needs and create an emotional connection that demands action you can create a following and eventually loyalty irrespective of flaws or weaknesses in your product. Such is the power of a customer-centric mindset. We might say customer centricity “trumps” strategy and superior resources.

Donald Trump has done the first bit of being customer-centric – creating perceived value in the minds of enough Americans to deliver him the presidency. Now he has to deliver the promise.

How he does that will require strong customer-centric leadership – ongoing insight and foresight and a team that has the mindset, capabilities and strategy with an alignment with the external environment that delivers value to middle-Americans. He will need to be consistent in his communication, be prepared to act on feedback that may differ from his own views and implement policies that will deliver on his promise. He will need to do even more than that – demonstrate his authenticity as a leader who really cares more for the American people than himself and demonstrate a character that commands respect and even admiration.

If he cannot do that he will be a one-term president.

Many senior leaders are like Donald Trump. They talk the talk and communicate great promise to their employees and their customers. But a majority of them do not display customer-centric leadership, do not walk the walk and don’t demonstrate they are in it for the long term value for delivery of value to their customers, employees and community before rewarding themselves. Those leaders are transitory, do not leave a legacy and often create chaos for all around them.

If you want to know more about customer-centric leadership contact MarketCulture and read The Customer Culture Imperative.

What is the kryptonite for disruptors?

Established businesses everywhere are under attack. The headlines are full of stories of business disruption. Entrepreneurs everywhere are building companies to unseat the entrenched firms.

While many think the answer is to invest in more technology, lobby government or follow their competitors actually the answer is right in front of them.

Our team in Sydney recently had the chance to sit down with Luke Jecks, the Global CEO of Naked Wines for his perspective. Listen to Luke talk about what he describes as the Kryptonite for disruptors, its a great lesson for anyone in business today:

So what’s the Kryptonite for disruptors? A Customer Culture or as Luke puts it:

“Love your customers”

If you spend time understanding and acting on your customers needs you will create loyalty that will keep you as immune as you can be to disruption.

So how did Naked Wines disrupt the wine industry?

Before Luke setup Naked Wines four years ago he was looking for an industry where customers felt disenfranchised. He found it in the Australian wine industry – a market dominated by two large retail chains owned by Coles and Woolworths that between them shared almost 70% of wine sales nationally. Not only did he find wine lovers who felt little connection with the vast array of brands but also boutique vineyards that were being squeezed out of the market by ever narrowing margins and an inability to finance the next vintage.

Luke knew that if he could create a personal connection between wine growers and consumers and a financial model that could provide more stability and certainty for wine growers he could build a new business.

He realized that he needed wine consumers as repeat customers and he came up with the idea of “angels’ – that is consumers as angel investors who would pay $40 per month and build up a credit in their account to be used to buy the boutique wines of their choice.

Four years after launch Naked Wines in Australia has more than 50,000 sustained angels, more than 35 boutique winery suppliers with an online communication and ordering system that connects them.

Annual Australian revenue of $30 million and more than $200 million globally is testament to the fact that the whole Naked Wines team have a culture that enables them to “love” their customers.

Isn’t it time to create a customerculture in your business and build up your disruptor defenses?

If you are interested in creating this type of culture in your organization why not attend one of our MRI Accreditation Workshops held all around the world!

 

How customer insight uncovers growth opportunities – Lessons from Nestle Japan

cappucino

Nestle’s customer insight creates a new market in Japan

Traditionally Nescafe was bought in grocery stores and consumed at home. As Nestle Japan searched for new ways to expand its coffee business it found that the economic downturn led to Japanese companies ceasing to supply coffee on the job for their employees. There are about 6 million offices in Japan, most having less than 20 workers and few coffee suppliers were selling directly to offices.

Nestle Japan developed the concept of the Nescafe Ambassador – an office employee with a passion for coffee, interested in collaborating directly with Nestle on behalf of their workplace and acting as an “in-office barista”. The company supplied an in-office Nescafe Barista soluble coffee machine and the Ambassadors ordered the coffee from Nestle, collected money from their co-workers for coffee consumed and forwarded payment.

This innovation came from the insight that Japanese employees liked to have the convenience of having coffee in the workplace. But more than that it was an opportunity to talk with their colleagues, collaborate and catch up with what is going on – it rebuilt their social interaction and a sense of community at work which had been lost in many office environments. Nestle was able to capitalize on this unique understanding of what was happening in the Japanese office environments

Nestle is also looking for new ways to meet the needs of Ambassadors to enhance the atmosphere at their workplaces and facilitate communication between their colleagues.

customer insight

This new business model based on a customer-centric approach to business has been very successful for Nestle japan. The program was rolled out in November 2012 and by early 2015 there were 170,000 Nescafe Ambassadors. Their goal is to establish 500,000 Nescafe Ambassador cafes at the workplace as well as 6,000Nescafe Satellite cafes and Café-in-shops over the next five years.

Source: Kotler Impact, “Mind your Marketing”, Volume 1, October 2015, Business Model Innovation: The Nescafe Ambassador Program, pages 120-121

Lexus – a beacon of customer centricity

lexus_windy_road

The auto manufacturing industry will soon be under siege – impacts are already being felt with easy consumer access and convenience of services like Uber, better public transport, parking costs and restrictions in increasingly large cities around the globe and technological advances in communications propelling less commuting between home and work.

Traditionally auto dealers have focused on each transaction – just getting a sale – and not on nurturing the long term relationships with their customers that will make them lifetime brand loyalists.

Lexus is an exception. Nick Dieltiens, a customer centricity consultant based in Europe, tells us of his experiences when working with Lexus in Europe. First the mindset. It’s not about the “car”, its about the “customer’s journey”. This is illustrated by the fact that on the rare occasions when a Lexus broke down in the French Alps, Lexus arranged for a helicopter to be flown in to collect the stranded family and fly them to their destination.

Also, customer service people at Lexus in Europe are empowered to make the decision to take back a car if the customer is not entirely satisfied with the purchase. Nick tells the story of a senior Lexus executive taking back a car from a customer because the remote control would not connect to the customer’s garage door and the issue could not be fixed. So the executive purchased a Mercedes at a discounted price and provided it to his customer at that discounted price.

The next car the customer bought was a Lexus.

The customer culture in many Lexus dealerships in Europe is strong. Staff are trained to observe Lexus vehicles on the road. If one is see with a broken tail light, they would wave down the driver where safe to do so, give them their car, take the car to get the light fixed free of charge and return the car to the owner.

You may think this costs Lexus a lot of money. It may cost a little more in the short term, but it pays off in a big way with high customer loyalty in car servicing and repeat purchase.

The most important investment by Lexus is in building and retaining a customer culture! This will be essential for all auto companies if they want to grow their businesses in future.