Inside The Customers Mind

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  • Inside The Customers Mind

    1. 1. Inside the customer’s mind: A framework for building profitable customer relationships NCDM Summer 2003 Intensive Session – July 28, 2003 Dave Harkins VP, Strategic Services The Jackson Group
    2. 2. About today <ul><li>Some “lecture” </li></ul><ul><li>Mostly interactive! </li></ul><ul><li>Hands-on session </li></ul><ul><li>Apply your knowledge of your company, using a defined, repeatable framework to build better customer relationships </li></ul><ul><ul><li>There much more to what’s presented today—in the interest of time we’ll be focusing on just a few key points </li></ul></ul>
    3. 3. Today’s Goals <ul><li>Stimulate your thinking about your company and its customer relationships </li></ul><ul><li>Provide tools to help you plot a course of action for overcoming relationship-building challenges </li></ul><ul><li>Help you create relevant, hands-on examples to assist you in thinking through issues </li></ul><ul><li>Others? You tell me… </li></ul>
    4. 4. Introduction <ul><li>What we need to get on the table up front </li></ul><ul><ul><li>Cultural Issues </li></ul></ul><ul><ul><ul><li>We think about the customer, but generally treat customers as numbers in the spreadsheet. </li></ul></ul></ul><ul><ul><ul><li>Customer-centered thinking is at the core of all we do </li></ul></ul></ul><ul><ul><li>Okay, but… </li></ul></ul><ul><ul><ul><li>What about channel conflicts? </li></ul></ul></ul><ul><ul><ul><li>What about technology challenges? </li></ul></ul></ul><ul><ul><ul><li>What about the data? </li></ul></ul></ul><ul><ul><ul><li>What about the “brand”? </li></ul></ul></ul>
    5. 5. Everything you do is to get or keep customers. -Jack Welch, paraphrased News Flash!
    6. 6. Strong customer relationships begin by looking at your organization from the outside-in. -Dave Harkins
    7. 7. What does the customer think? <ul><li>Listening for the silent screams of customers </li></ul><ul><ul><li>Do you hate your customers? </li></ul></ul><ul><ul><ul><li>Do you make it hard for your customers to buy? </li></ul></ul></ul><ul><ul><ul><li>Do you have absurd return policies? </li></ul></ul></ul><ul><ul><ul><li>Do you have sales procedures (commissions, perks, etc.) that push products on customers, regardless of their needs? </li></ul></ul></ul><ul><ul><li>Are your business operations or structure transparent to the customer? </li></ul></ul><ul><ul><ul><li>Do your customers get lost in “voice-mail hell” when they call? </li></ul></ul></ul><ul><ul><ul><li>Do your customer have to talk to more than 2 people because your structure doesn’t allow front-line employees to solve customer problems? </li></ul></ul></ul>
    8. 8. What customers really want from you <ul><li>Value for price paid </li></ul><ul><li>Solve my problems and/or make my life easier </li></ul><ul><li>Stop making it hard for me to be your customer </li></ul><ul><li>Get rid of “things” that don’t matter to me or make my life more complicated </li></ul><ul><li>Keep me informed </li></ul><ul><li>Listen to what I say (and make me say it only once) </li></ul><ul><li>Show me how sharing my personal information will be of benefit to me </li></ul><ul><li>Show me you care </li></ul><ul><li>Be sincere and trustworthy </li></ul><ul><li>Quit asking me if I like you </li></ul><ul><li>Remember that I pay your bills </li></ul>
    9. 9. Putting the customer first <ul><li>How you can contribute to a customer-first culture </li></ul><ul><ul><li>Ensure that everything you do is done by first looking from the outside-in </li></ul></ul><ul><ul><ul><li>How will the customer view what you’re doing? </li></ul></ul></ul><ul><ul><ul><li>Will it satisfy the “holy grail” of customer “wants”? </li></ul></ul></ul><ul><li>Create a sustainable relationship using a methodical, easy-to-understand framework </li></ul><ul><ul><li>Understanding the customer </li></ul></ul><ul><ul><li>Developing a relationship </li></ul></ul><ul><ul><li>Selling through the relationship </li></ul></ul><ul><ul><li>Fulfilling your obligations in the relationship </li></ul></ul><ul><li>Keep the promises you make </li></ul>
    10. 10. Building a framework to deliver Profitable Customer Relationships
    11. 11. It starts with a Promise <ul><li>The customer has expectations of their interactions based on some external factors </li></ul><ul><li>Think of this like dating… </li></ul><ul><ul><li>Get to know and understand the other person </li></ul></ul><ul><ul><li>Develop the relationship by sharing and interacting </li></ul></ul><ul><ul><li>“Sell” yourself and your value as someone with which to spend time </li></ul></ul><ul><ul><li>Fulfill your obligations to make the relationship work </li></ul></ul><ul><li>It’s work </li></ul><ul><li>It’s a never ending cycle </li></ul><ul><li>You win some, you loose some, but you never really fail if you learn something each time you go through the process </li></ul>
    12. 12. The Customer Relationship Process <ul><li>Definition: </li></ul><ul><li>What the customer experiences or believes he/she will experience when interacting with a company. </li></ul><ul><li>We call the value delivered or implied: </li></ul><ul><li>“ The Customer Promise” </li></ul>
    13. 13. Types of Promises <ul><li>Institutional </li></ul><ul><ul><li>Broader, “brand-oriented” promises </li></ul></ul><ul><ul><li>Generally “implied” promises </li></ul></ul><ul><ul><li>Difficult to measure </li></ul></ul><ul><ul><li>Often deployed through taglines </li></ul></ul><ul><ul><li>Can be presented as part of the corporate mission or in customer service statements </li></ul></ul><ul><li>Interactive </li></ul><ul><ul><li>Directly stated </li></ul></ul><ul><ul><li>Tangible, tactical </li></ul></ul><ul><ul><li>Actionable by employees </li></ul></ul><ul><ul><li>Often “made up on the spot” </li></ul></ul><ul><ul><li>Can be any promise made by an employee, regardless of fit with the institutional promise </li></ul></ul>
    14. 14. Customer Promise Examples <ul><li>A few implied, institutional promises presented through taglines </li></ul><ul><ul><li>“You’re in good hands…” </li></ul></ul><ul><ul><li>“Yeah, we’ve got that.” </li></ul></ul><ul><ul><li>“Like a good neighbor…” </li></ul></ul><ul><ul><li>“Have it your way…” </li></ul></ul><ul><ul><li>“You can do it, we can help” </li></ul></ul><ul><li>How can these promises be consistently delivered? </li></ul><ul><li>The Promise is delivered using a repeatable process we call: </li></ul><ul><li>The Customer Promise Framework </li></ul>
    15. 15. Framework Objectives <ul><li>Provide the understanding of the customers (and prospective customers) Needs, Values and Expectations (NVEs) to put the human element back into the process </li></ul><ul><li>Provide the foundation for relationship-building with customer and prospective customers </li></ul><ul><li>Provide a process for how best engage the total organization in the customer’s experience </li></ul><ul><li>Determine how to leverage NVEs to build sustainable customer relationships </li></ul>
    16. 16. Framework Importance <ul><li>Allows for a better understanding customer (and prospective customer) </li></ul><ul><ul><li>Needs, Values, and Expectations (NVEs) allow an organization to deliver higher value products and services, and build stronger relationships </li></ul></ul><ul><li>Stronger relationships allow an organization to leverage additional sales opportunities </li></ul><ul><li>Additional opportunities result in revenue growth </li></ul><ul><li>REMEMBER: Everything you do is to get or keep customers (in other words, it’s about SALES ) </li></ul>
    17. 17. The Customer Promise Framework <ul><li>Develop the relationship by providing relevant value in: </li></ul><ul><li>Product/service offerings </li></ul><ul><li>Pricing strategies </li></ul><ul><li>Distribution </li></ul><ul><li>Promotion/Advertising </li></ul><ul><ul><li>Understand the customer with analysis of: </li></ul></ul><ul><ul><li>NVEs </li></ul></ul><ul><ul><li>Transaction activity </li></ul></ul><ul><li>Sell using the relationship with: </li></ul><ul><li>Targeted acquisition efforts </li></ul><ul><li>Direct, F2F sales </li></ul><ul><li>Loyalty and continuity programs </li></ul><ul><li>Fulfill your obligations to the relationship through: </li></ul><ul><li>Customer service </li></ul><ul><li>Frontline support </li></ul><ul><li>Product/Service Delivery </li></ul>The Customer Promise Framework Information Technology Organizational Development Human Resources Finance
    18. 18. Step 1: Understanding the Customer
    19. 19. Understanding the Customer <ul><li>All data and information play a part, but we tend to look too much at the numbers </li></ul><ul><ul><li>Promotion History </li></ul></ul><ul><ul><li>Response History </li></ul></ul><ul><ul><li>Purchase Transactions </li></ul></ul><ul><ul><li>Predictive models </li></ul></ul><ul><ul><li>Demographics, lifestyle, overlays, etc. </li></ul></ul><ul><li>We need to also look at the human element </li></ul><ul><li>Evaluating Customer Needs, Values and Expectations or NVEs help to put the human element into the equation </li></ul>
    20. 20. It begins with customer NVEs <ul><li>What are customer NVEs? </li></ul><ul><ul><li>Needs: Basic human needs (like food, clothing, shelter) or core needs , as well as variable needs to solve a specific problem at hand </li></ul></ul><ul><ul><li>Values: Combines the customer’s values (integrity, honesty, etc.) with what he or she deems to be important in the relationship with your organization (comfort, security, stability, friendliness, etc.) </li></ul></ul><ul><ul><li>Expectations: What the customer expects from his or her interactions with your company based either on past experiences or on the Customer Promise that you’ve presented—your brand identity. </li></ul></ul><ul><li>How well do customer’s NVEs align to a company’s perspective of itself? Let’s look at a retail example… </li></ul>
    21. 21. Aligning NVEs to Corporate Perspective 5 = Excellent 1 = Poor Alignment Variance: 0 = Excellent 1-2 = Good (Caution Areas) 3+ = Poor (Problem Areas) Retail Operation
    22. 22. Aligning NVEs to Corporate Perspective
    23. 23. How does your company measure up? <ul><li>Do you know… </li></ul><ul><ul><li>Your customer’s NVEs? </li></ul></ul><ul><ul><li>How do well do you think your company aligns to your customer’s NVEs? </li></ul></ul><ul><ul><ul><li>Looking from the outside-in, would your customer agree? </li></ul></ul></ul><ul><ul><li>In reality, how does who you are (and what you look like) align with customer NVEs? </li></ul></ul><ul><ul><ul><li>Where the area of convergence between what you say and how you act? </li></ul></ul></ul><ul><ul><ul><li>Do you meet expectations every time? </li></ul></ul></ul><ul><ul><li>How do NVEs impact your customer interactions? </li></ul></ul>
    24. 24. Understanding the customer <ul><li>Exercises (20 Minutes) </li></ul><ul><ul><li>Pick two customer segments, define NVEs </li></ul></ul><ul><ul><li>Identify your organization’s key strengths from a customer perspective, relative to the NVEs (use a scale of 1-5 with 5 being “Excellent” and 1 being “Poor” </li></ul></ul><ul><ul><li>Variance in alignment of 0 = Excellent; 1-2 = Good; 3+= Poor </li></ul></ul><ul><ul><li>Map and evaluate alignment </li></ul></ul><ul><ul><ul><li>What are you going to do to gain greater alignment in weaker areas? </li></ul></ul></ul><ul><ul><ul><li>How will you prioritize the order of work to be done? </li></ul></ul></ul>
    25. 25. Step 2: Developing the Relationship
    26. 26. Developing the relationship <ul><li>The key to developing a relationship is anticipating and providing for customer needs and expectations </li></ul><ul><ul><li>When, how and why a purchase is made (or planned) is critical for developing product, market, and customer strategy </li></ul></ul><ul><ul><li>What’s provided (product or services) must be relevant and timely to the customer </li></ul></ul><ul><li>Understanding how the customer’s purchase decision process is almost as important as NVEs in building the relationship </li></ul>
    27. 27. Developing the relationship <ul><li>Understand how the customer buys </li></ul><ul><ul><li>Provides key knowledge to map with NVEs to develop product, price, distribution and promotion for customer segments </li></ul></ul><ul><li>Purchase Decision Cycle provides a guide </li></ul><ul><ul><li>All customers have a decision process for buying </li></ul></ul><ul><ul><li>For the most part, everyone follows the same pattern </li></ul></ul><ul><ul><li>It’s driven by a combination of needs, that are often identifiable by internal and sometimes external triggers </li></ul></ul><ul><ul><ul><li>Triggers are the key to understanding where a customer is in the buying cycle so you can determine how to best meet his/her NVEs in the process </li></ul></ul></ul>
    28. 28. Defining the Purchase Decision Cycle Customer has a need created by internal or external forces Change brings discontent Need becomes firmly established Customers seek to understand options Compare alternatives Identify preference Value and expectations are set Customer determines which products, services and companies best meet his/her needs, values and expectations Makes purchase Customer forms opinion of product, service, company relative to NVE’s Develops relationship (or not) based on that value Repeats the process Concept Source: Getting Into Your Customers Head, by Kevin Davis Need Learn Buy Value
    29. 29. Visible internal trigger examples Need Learn Buy Value Automobile Dealership Automobile ages Increase in repair visits Visits a website to look at models Visit dealerships to test drive Asks about specific available features Requests literature Asks about financing options Begins negotiations to buy/trade Purchases a new automobile Expresses intent to buy if NVEs are met Returns to dealer for service Refers friends/family to dealer Purchases ancillary services/warranty
    30. 30. Leveraging the triggers <ul><li>If you know the customer NVEs and know the triggers in the purchase decision cycle, you could… </li></ul><ul><ul><li>Tailor communication to facilitate faster decision making </li></ul></ul><ul><ul><ul><li>Anticipate and answer questions before asked </li></ul></ul></ul><ul><ul><li>Sell against competitive products/services </li></ul></ul><ul><ul><li>Provide more relevant information </li></ul></ul><ul><ul><ul><li>Better demonstrate your knowledge of the customer </li></ul></ul></ul><ul><li>You don’t have to begin at the beginning to take advantage of the process </li></ul>
    31. 31. Developing the Relationship <ul><li>Exercises (20 Minutes) </li></ul><ul><ul><li>Define and map The Purchase Decision Cycle for your two segments </li></ul></ul><ul><ul><li>Identify key internal trigger points </li></ul></ul><ul><ul><li>Determine what actions you could take with this new information </li></ul></ul>
    32. 32. Step 3: “Selling” the Relationship
    33. 33. “Selling” through the Relationship <ul><li>Selling through the Relationship is a process that builds company value through sustained, relevant interactions with the customer </li></ul><ul><ul><li>Both the customer and the company have invested time to understand each other’s NVEs and believe that mutual benefit is gained through sustaining the relationship </li></ul></ul><ul><ul><li>Specifically: </li></ul></ul><ul><ul><ul><li>The company has consistently met customer needs and expectations </li></ul></ul></ul><ul><ul><ul><li>The company delivers on what’s important to the customer </li></ul></ul></ul><ul><ul><ul><li>The customer sees a “relationship” rather than a business transaction </li></ul></ul></ul><ul><ul><ul><li>The customer believes that the company is deserving of ongoing support </li></ul></ul></ul>
    34. 34. “Selling” through the Relationship <ul><li>NVEs and the Purchase Decision Cycle allow you to better position your products or services to “the right customer, at the right time”, reduce operational costs, and create sustained value. </li></ul><ul><ul><li>Can reduce overall marketing and sales costs because your efforts are more targeted </li></ul></ul><ul><ul><li>Will increase sales because your offerings are more relevant </li></ul></ul><ul><ul><li>Solidifies your relationship as a company that understands and acts on its customer’s NVEs </li></ul></ul><ul><li>The relationship becomes established with a purchase (or re-purchase) and your company gains a “valued provider” status </li></ul>
    35. 35. Relationship “Selling” Program Strategies <ul><li>Continuity of Contact </li></ul><ul><li>Rewards </li></ul><ul><li>Rebate </li></ul><ul><li>Appreciation </li></ul><ul><li>Partnership </li></ul><ul><li>Affinity </li></ul><ul><li>Community/Philanthropy </li></ul>
    36. 36. Relationship “Selling” Program Strategies <ul><li>Continuity of Contact </li></ul><ul><ul><li>Can be used to drive acquisition offers </li></ul></ul><ul><ul><li>Encourages new customer to create a new relationship or deepen an existing relationship by creating incentives for repeat business </li></ul></ul><ul><ul><li>Not generally used as a loyalty program </li></ul></ul><ul><ul><li>Low risk </li></ul></ul><ul><ul><li>Relatively low cost </li></ul></ul><ul><ul><li>Highly flexible </li></ul></ul>
    37. 37. Relationship “Selling” Program Strategies <ul><li>Continuity of Contact </li></ul><ul><ul><li>Definition: </li></ul></ul><ul><ul><ul><li>Special offers, value-added benefits to customers </li></ul></ul></ul><ul><ul><li>Use it when: </li></ul></ul><ul><ul><ul><li>Your primary goal is both to acquire and retain customers </li></ul></ul></ul><ul><ul><ul><ul><li>Will require different programs for each </li></ul></ul></ul></ul><ul><ul><ul><li>You want to motivate new incremental purchases </li></ul></ul></ul><ul><ul><ul><li>You want to increase specific channel traffic </li></ul></ul></ul><ul><ul><li>Example: </li></ul></ul><ul><ul><ul><li>Lenscrafters </li></ul></ul></ul><ul><ul><ul><ul><li>Event driven continuity program offering reminders to schedule visits, expiration of contact prescription, birthday discounts </li></ul></ul></ul></ul>
    38. 38. Relationship “Selling” Program Strategies <ul><li>Rewards </li></ul><ul><ul><li>L everages a customer’s interest in an idea or concept that has nothing to do with the brand </li></ul></ul><ul><ul><ul><li>Rewarding a customer's behavior with merchandise unrelated to the brand </li></ul></ul></ul><ul><ul><ul><li>Customers become emotionally involved in the program </li></ul></ul></ul><ul><ul><ul><li>Can serve double-duty as an acquisition program </li></ul></ul></ul><ul><ul><ul><ul><li>If prospective customer sees no differentiation between your brand and another, then merchandise rewards may sway purchase decision </li></ul></ul></ul></ul>
    39. 39. Relationship “Selling” Program Strategies <ul><li>Rewards </li></ul><ul><ul><li>Definition: </li></ul></ul><ul><ul><ul><li>Awards points for purchases. Points can be exchanged for rewards unrelated to the brand </li></ul></ul></ul><ul><ul><li>Use it when: </li></ul></ul><ul><ul><ul><li>You offer limited options for rewarding customers with additional products or services </li></ul></ul></ul><ul><ul><ul><li>You want your program to serve double-duty as a new customer acquisition device. </li></ul></ul></ul><ul><ul><ul><li>You need to differentiate your brand from your competitors' brands </li></ul></ul></ul><ul><ul><li>Example: </li></ul></ul><ul><ul><ul><li>AT&T </li></ul></ul></ul><ul><ul><ul><ul><li>Offers reward program for using X dollars per quarter. Rewards are generally $10 purchase card chosen from a variety of merchants </li></ul></ul></ul></ul>
    40. 40. Relationship “Selling” Program Strategies <ul><li>Rebate </li></ul><ul><ul><li>S implest form of value exchange, most prevalently used by retailers </li></ul></ul><ul><ul><ul><li>Supports the brand and the buying habits of the highest value customers by giving them more of what they like </li></ul></ul></ul><ul><ul><ul><li>A tool to increase traffic and incremental sales without reducing perceived brand image </li></ul></ul></ul>
    41. 41. Relationship “Selling” Program Strategies <ul><li>Rebate </li></ul><ul><ul><li>Definition: </li></ul></ul><ul><ul><ul><li>Awards a gift certificate, redeemable against new purchases, when a customer reaches a spending threshold </li></ul></ul></ul><ul><ul><li>Use it when: </li></ul></ul><ul><ul><ul><li>Product or service lines represents a wide selection </li></ul></ul></ul><ul><ul><ul><li>Desire to motivate new incremental purchases </li></ul></ul></ul><ul><ul><ul><li>Want to increase channel traffic </li></ul></ul></ul><ul><ul><li>Example: </li></ul></ul><ul><ul><ul><li>Borders </li></ul></ul></ul><ul><ul><ul><ul><li>Children’s “book club” that provides a $5 rebate for every 10 children’s books purchased </li></ul></ul></ul></ul>
    42. 42. Relationship “Selling” Program Strategies <ul><li>Appreciation </li></ul><ul><ul><li>S imilar to the rewards program, with rewards based on the brand rather than on unrelated offerings </li></ul></ul><ul><ul><li>I ncrease lifetime value among current customers </li></ul></ul><ul><ul><li>I f customers are asked whether they prefer rewards or cash, they'll always take the cash </li></ul></ul><ul><ul><ul><li>But in giving your customers cash, you could diminish the value of your brand </li></ul></ul></ul>
    43. 43. Relationship “Selling” Program Strategies <ul><li>Appreciation </li></ul><ul><ul><li>Definition: </li></ul></ul><ul><ul><ul><li>Offers a reward selection of your company’s merchandise in exchange for accumulated points </li></ul></ul></ul><ul><ul><li>Use it when: </li></ul></ul><ul><ul><ul><li>Your goal is solely to increase customer lifetime value, not acquire new customers </li></ul></ul></ul><ul><ul><ul><li>You want your customers to sample other products or services </li></ul></ul></ul><ul><ul><li>Example: </li></ul></ul><ul><ul><ul><li>Blockbuster </li></ul></ul></ul><ul><ul><ul><ul><li>Gold Rewards program provided to members renting over X number of movies per year. Free rental for every 5 rented per month; free Blockbuster Favorites (non-new releases) Monday-Thursday. </li></ul></ul></ul></ul>
    44. 44. Relationship “Selling” Program Strategies <ul><li>Partnership </li></ul><ul><ul><li>D esigned primarily to acquire new customers and then to reward them for additional purchases </li></ul></ul><ul><ul><ul><li>Actively seek new customers with a specific interest in a partner's product, and rewards those customers with more of the product </li></ul></ul></ul><ul><ul><ul><li>Only the partner's customers are aware of the offer </li></ul></ul></ul>
    45. 45. Relationship “Selling” Program Strategies <ul><li>Partnership </li></ul><ul><ul><li>D efinition: </li></ul></ul><ul><ul><ul><li>Rewards a customers accumulated purchases or points with a partner company's products or services (discounts or free) </li></ul></ul></ul><ul><ul><li>Use it When: </li></ul></ul><ul><ul><ul><li>Your primary goal is to acquire new customers </li></ul></ul></ul><ul><ul><ul><li>You have the opportunity to prospect a partner company's database </li></ul></ul></ul><ul><ul><ul><li>The partner company’s customers are likely prospects for your loyalty program </li></ul></ul></ul><ul><ul><li>Example: </li></ul></ul><ul><ul><ul><li>FTD </li></ul></ul></ul><ul><ul><ul><ul><li>Partners with airlines to offer discounts on flowers for frequent flyer programs. </li></ul></ul></ul></ul>
    46. 46. Relationship “Selling” Program Strategies <ul><li>Affinity </li></ul><ul><ul><li>I ncrease the lifetime value of customers by building strong relationships with them, without the use of rewards </li></ul></ul><ul><ul><li>V alue is added to customer relationships through information-intensive communications, value-added benefits and recognition </li></ul></ul><ul><ul><li>A pplicable only where the brand represents a strong lifestyle </li></ul></ul><ul><ul><li>S uccess may be more difficult to measure </li></ul></ul>
    47. 47. Relationship “Selling” Program Strategies <ul><li>Affinity </li></ul><ul><ul><li>Definition: </li></ul></ul><ul><ul><ul><li>Offers special communications, value-added benefits and recognition to valued customers </li></ul></ul></ul><ul><ul><li>Use it when: </li></ul></ul><ul><ul><ul><li>Your brand strongly represents a specific customer lifestyle </li></ul></ul></ul><ul><ul><ul><li>Your customers are generally interested in learning more about your products or services </li></ul></ul></ul><ul><ul><ul><li>Rewards are not needed to cultivate long-lasting interactive relationships </li></ul></ul></ul><ul><ul><li>Example: </li></ul></ul><ul><ul><ul><li>State Farm </li></ul></ul></ul><ul><ul><ul><ul><li>Agents provide ongoing newsletters, return mailing labels, birthday cards, etc. </li></ul></ul></ul></ul>
    48. 48. Relationship “Selling” Program Strategies <ul><li>Community/Philanthropy </li></ul><ul><ul><li>Use rewards to enhance value proposition, as well as brand core philosophy </li></ul></ul><ul><ul><li>Value is added to the customer relationships through the good feeling associated with contribution to a cause </li></ul></ul><ul><ul><li>Ideally applied to companies with long-established, well-known community/philanthropic platforms </li></ul></ul><ul><ul><li>Can sway a prospect to purchase </li></ul></ul>
    49. 49. Relationship “Selling” Program Strategies <ul><li>Community/Philanthropy </li></ul><ul><ul><li>Definition: </li></ul></ul><ul><ul><ul><li>Reward a customer’s purchases with a donation to community or philanthropic cause </li></ul></ul></ul><ul><ul><li>Use it when: </li></ul></ul><ul><ul><ul><li>Your brand strongly represents a known philosophy </li></ul></ul></ul><ul><ul><ul><li>Your customers support the brand philosophy </li></ul></ul></ul><ul><ul><ul><li>Smaller reward for high perceived value is necessary </li></ul></ul></ul><ul><ul><ul><li>Rewards are not needed to cultivate long-lasting relationships </li></ul></ul></ul><ul><ul><li>Example: </li></ul></ul><ul><ul><ul><li>Third-party phone company who’s name I can’t remember </li></ul></ul></ul><ul><ul><ul><ul><li>Donates a portion of your monthly bill to a cause of your specification (chosen from a provided list) </li></ul></ul></ul></ul>
    50. 50. Choose Currency… <ul><li>Carefully </li></ul><ul><ul><li>Points </li></ul></ul><ul><ul><ul><li>Liability and exposure </li></ul></ul></ul><ul><ul><ul><li>Spoilage </li></ul></ul></ul><ul><ul><ul><li>Restrictions and rules for redemption </li></ul></ul></ul><ul><ul><li>Discount / Rebate </li></ul></ul><ul><ul><ul><li>Brand devaluation </li></ul></ul></ul><ul><ul><ul><li>Effect on margin </li></ul></ul></ul><ul><ul><ul><li>Effectively paying current customers </li></ul></ul></ul><ul><ul><li>Added value </li></ul></ul><ul><ul><ul><li>Deliver on promises </li></ul></ul></ul>
    51. 51. Best Practices in Relationship “Selling” <ul><li>What Doesn’t Work </li></ul><ul><li>Channel specific/single channel </li></ul><ul><li>Cookie-cutter messaging </li></ul><ul><li>Talking to the customer </li></ul><ul><li>Designed for company </li></ul><ul><li>Company-valued rewards </li></ul><ul><li>Automated customer contact </li></ul><ul><li>Customer service rhetoric from the top </li></ul><ul><li>What Works </li></ul><ul><li>Channel-neutral, but multiple </li></ul><ul><li>Customized messaging </li></ul><ul><li>Communicating with the customer </li></ul><ul><li>Designed for customer </li></ul><ul><li>Customer-valued rewards </li></ul><ul><li>Face time </li></ul><ul><li>Customer service from the ground up </li></ul>
    52. 52. “Selling” through the Relationship <ul><li>Exercises (20 Minutes) </li></ul><ul><ul><li>Using the NVEs and purchase decision cycle as a guide, determine which program strategy would work best for each of your segments. </li></ul></ul><ul><ul><li>Explain why you choose the program strategy </li></ul></ul><ul><ul><li>Determine the currency you would use and why </li></ul></ul><ul><ul><li>Define the benefits you would offer your customers </li></ul></ul><ul><ul><ul><li>Does it measure up to the best practices? </li></ul></ul></ul>
    53. 53. Step 4: Fulfilling the Relationship
    54. 54. Fulfilling the relationship <ul><li>Keeping the relationship going is the hard part </li></ul><ul><ul><li>How do you fulfill customer expectations and promises after the sale? </li></ul></ul><ul><ul><li>Are all parts of the company focused on the same goal for meeting customer expectations? </li></ul></ul><ul><ul><li>Do you have ongoing education and training programs to ensure that customer value is? </li></ul></ul><ul><li>Continuous improvement is paramount </li></ul><ul><ul><li>What do you learn at each interaction that you can use the next time through the framework? </li></ul></ul><ul><ul><li>How can you apply what you learn to improve your value to customers? </li></ul></ul><ul><li>Managing interaction points are key </li></ul>
    55. 55. Customer Interaction Map Computer Store (computer purchase)
    56. 56. Customer Interaction Points <ul><li>How many points of interaction does the customer have with your company? </li></ul><ul><ul><li>What are these points? </li></ul></ul><ul><ul><li>When do they occur? </li></ul></ul><ul><ul><li>What messages are being put forth (from the customer’s perspective)? </li></ul></ul><ul><ul><li>Are the messages consistent with your Customer Promise? </li></ul></ul><ul><ul><ul><li>Who’s ensuring this consistency? </li></ul></ul></ul>
    57. 57. Fulfilling the relationship <ul><li>Exercises (20 minutes) </li></ul><ul><ul><li>Determine the interactions your two customer segments will have, based on their NVEs </li></ul></ul><ul><ul><li>Create a Customer Interaction Map for each </li></ul></ul><ul><ul><ul><li>How will you determine the consistency in meeting customer expectations at each point of contact? </li></ul></ul></ul>
    58. 58. Key points to remember <ul><li>Think from the outside-in (look at everything from the customer’s viewpoint) </li></ul><ul><li>Customers have needs, values and expectations of their interactions with your company—know them and understand how they impact the relationship </li></ul><ul><li>“Selling” through relationships requires both and understanding of the customer and knowledge of how he/she buys </li></ul><ul><li>Relationships aren’t built with a single purchase—they’re developed over time when both parties see mutual benefits </li></ul><ul><li>Long-term customer relationships are a result of continuous fulfillment of the customer’s Needs, Value and Expectations (keep the human factor) </li></ul>
    59. 59. Key points to remember Develop the Relationship Sell through the Relationship Fulfill the Relationship Understand the Customer
    60. 60. Questions? Dave Harkins VP, Strategic Services The Jackson Group 1.800.JACKSON x3374 803.548.4172 (direct line) dharkins@jacksongroup.com | www.jacksongroup.com This presentation will be available for download from our website at: www.jacksongroup.com/presentations

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