B2 b marketing bucharest 2012

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Presentation given at the B2B Marketing conference by Evensys at the Hilton Bucharest on April 19th, 2012

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B2 b marketing bucharest 2012

  1. 1. Are you realizing the full potential of your customer relations?Customer Centricity in B2B Markets
  2. 2. WelcomeStefan Kolle (@flb_stefankolle)We’re no gurus, seminar pro’s or professors … We’re just some guys who’ve been there too (and still are)
  3. 3. “Like an architect, we add to the vision of our clients and manage their agencies and vendors towards the desired result.” Futurelab International Hoornzeelstraat 24 3080 Tervuren Belgium T: +32 2 7338332 F: +32 2 7065772 E: info@futurelab.net We are business strategist with a passion for customers, innovation and profit We deliver new profit opportunities through customer-centricity, commercial sense and hands-on innovation19/04/2012 3
  4. 4. Thought leadership Recognition • + 10,000 articles • 75,000 regular readers + 350,000 readers + 10,000 followers Regular speaking & media appearancesWe do more than consult, we want to right what is wrongOpinionated – a desire to make a difference – unafraid to take the high road
  5. 5. When I think of customers I think of whales We talk about them Somehow we care We even try But in the end,month’s bills must be paid FUTURELAB
  6. 6. FUTURELAB Virtually all CEO’s consider the customer experience to be important 80% of them believe they offer a superior customer experience 8% of their customers agreeExhibit # 1Customers are the whales of the corporate world Source: Bain & Company
  7. 7. FUTURELAB The business hears: • This may cost money • This sounds complex • Another marketing hype The customer evangelists say: • Yes, this will cost money • They will be more loyal • Customers pay our salary • They will talk well about us • It’s importantMost companiesSee customer experience as a “moral imperative”
  8. 8. FUTURELABThere’s only one problem with thisYou get paid in Euros,Not in happy faces. “Why should I allocate precious budget to experience?”FUTURELAB
  9. 9. FUTURELAB Our mission: A more customer-friendly world Create sustainable, organic Create some happiness growth (i.e. make more money)The next half hourHow to break through this disconnect
  10. 10. FUTURELAB The same coffee beans Cost per cup The futures market (nov 2011) € 0.01 in a package at the grocery store € 0.075 at Nespresso € 0.40 in a paper/plastic cup from a machine € 1.00 from a machine in a theme park € 2.20 in a cup in a big city café € 2.50 at a deluxe restaurant € 5.00 during my honeymoon with a glass of I haven’t got a clue! 100 year old ArmagnacThe good newsThere is an intuitive case linking money to experience
  11. 11. FUTURELAB Discounts? You must be joking.The good newsBest practice experiences exist
  12. 12. FUTURELABThe bad newsGeneral satisfaction or marketing rethoric won’t cut it
  13. 13. FUTURELABWhen surveying the satisfaction responses of ISP defectors in the 12 months prior to their defection80% were “satisfied” to “very satisfied”
  14. 14. FUTURELABIn spite of a standing ovation55% Year-to-year churn rates are normal in classical music (cc) Jorge Franganillo
  15. 15. FUTURELAB “When it comes to customer experience we’re doing fine. All our customers are very satisfied. The only problem is that they don’t return to buy again.”Real CaseEuropean B2B brand
  16. 16. FUTURELAB Self Reflection: Do YOU Expect Not to be Satisfied?The simple truthCustomers “pay” to be satisfied
  17. 17. FUTURELABEnter Fred ReichheldWe need something else …Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
  18. 18. FUTURELAB Detractors: Dislike Passives: Satisfaction Promoters: Delighted 0 1 2 3 4 5 6 7 8 9 10The ‘ultimate’ questionHow likely are you to recommend
  19. 19. FUTURELAB Customers that are so happy they are likely to recommend a company  spend more  negotiate less  stay longer as customers  are more open to upselling  are easier to service  upgrade quicker  are ready to refer to others  increase staff morale  etc.The ‘ultimate’ question – most important findingCustomers who recommend you, are more profitable
  20. 20. FUTURELAB Detractors: Dislike Passives: Satisfaction Promoters: Delighted 0 1 2 3 4 5 6 7 8 9 10The ‘ultimate’ question – most important findingThis time, there is a money link
  21. 21. FUTURELABThe main reasonThis time it’s personal
  22. 22. The main reasonAnd its even stronger in B2B
  23. 23. FUTURELABPromoters are more profitablePhilips used customer experience to drive revenue
  24. 24. Disguised numbersClient case
  25. 25. Customer Delight is “the” biggest driver of future business growth … Likelihood to Repurchase (B2B-markets) Share of Wallet (B2B-markets) “delighted customers are 5x more likely to “at the point of delight, there is an exponential (recommend) repurchase” increase in the share of wallet”Source: http://www.ipsos-ideas.com/library/dl.cfm?pdf=IpsosLoyalty_WP_Delight.pdf The game is not about “customer satisfaction” … it’s about “delight” Customer Delight
  26. 26. FUTURELAB FUTURELAB The worst I’ve ever seen 5:1 The best I’ve ever seen 6000:1Promoters are more profitablePersonal experience in 15 industries … and counting
  27. 27. FUTURELAB Detractor Passive Promoter 0-1-2-3-4-5-6 7-8 9-10 Margin on purchase of printer RON 50 ___________ ___________ RON 150 RON 250 ___________ # Purchases over life time 1 ___________ 3 ___________ 10 ___________ 2 ___________ 10 ___________ 50 ___________ # Service visits over life time Customer Value RON 250 ___________ RON 950 ___________ RON 5.000 ___________ Word-of-mouth effect (+/-) RON 500 -/- ___________ ___________ RON 500 RON 4.350 ___________ Total Customer Value ___________ RON 250 -/- ___________ RON 1.450 ___________ RON 9.350Making the case ASSUMPTIONS • Printer price: RON 500-2500Printer case • Average life: 5 years (warranty 3 years) • Avg. service visit: RON 50 Margin
  28. 28. FUTURELAB Customer value increase = ROI Cost to make them happySo, how do we implement this?Breaking the CEO Dilemma
  29. 29. perception80% of CEO’s believe theirbrand provides a superiorcustomer experience8 % of their customers agree(Bain & Company) 19/04/2012 29
  30. 30. FUTURELAB “Let’s go WOOOOOWW!!” “Let’s spread love & hug” “Let’s be like Disneyland”The bottom line: with customer experience we’reWe’re not talking about the fluffy stuff
  31. 31. FUTURELABIn factThe experience IS the product
  32. 32. It just works This is cool! I sell overpriced, underspec’d A low performance gaming devices with poor battery life. console with few titles.Defining “what is the experience”The experience IS the product
  33. 33. CEO: I need to be sure that the “Nobody ever got fired for strategy I want to propose will be buying.... supported by the board.Defining “what is the experience”The experience IS the product
  34. 34. FUTURELABThis disconnect is the problemMost companies roll the dice on customer experience
  35. 35. FUTURELAB The Traditional Perspective Pre-sales Sales After Sales The Customer’s Reality Search Evaluate Try Select *** Wait *** *** *** Search * * * = ConfidentialCaseA radically different perspective19/04/2012 35
  36. 36. FUTURELAB The Traditional Perspective RFP Development Delivery The Customer’s Reality Latent Self- Discuss Informal RFP RFP … Problem study @ office RFI PrepCase: Professional ServicesA radically different perspective19/04/2012 36
  37. 37. Customer Experience ManagementIs about managing emotions at each step of the journey
  38. 38. FUTURELAB FUTURELAB 69% of consumers say emotions drive their customer experience Source: strategic resource development group, 2006 In B2B, the average impact of emotional motivation on loyalty outweighs rational motivation by 2:1 margin, in both goods and services Source: Synovate Meta-analysis of 275 studies, 2008 The amygdala did itRememberExperience is about emotions
  39. 39. RememberEmotional Satisfaction
  40. 40. RememberEmotional Engagement
  41. 41. FUTURELAB There’s more Leave the bank with your card Have a coffee next door if you need to wait (with alerts) Friendly & smiling recruitment policyNOT rolling the diceCase: Metro Bank
  42. 42. FUTURELAB I take care of my family, my employees and my community. Above everything I want respect and recognition for that.Structural listening: You want to dig deeperCase: a greek bank
  43. 43. FUTURELAB Listen , I shouldn’t say this but I actually like your December events in London best, as it allows me to get in some Christmas shopping.Structural listening: You want to dig deeperCase study: a training company
  44. 44. FUTURELAB Aren’t we already listening enough?Surveys – market research – customer feedback systems …Do you listen, or gather information to write reports?
  45. 45. But obviously you can’t speak to everyoneA structural listening mechanism
  46. 46. FUTURELAB NPS survey Implement initiated action Prepare and analyze results Initiate Quick Fixes Execute Feedback Calls Plan and initiate Derive recommendations for concrete actions improvementTactically close the loopListen to each customer
  47. 47. FUTURELABA structural listening mechanismB2B: Look at individuals, not at accounts
  48. 48. FUTURELAB insurance administration doctors nurses Sleep medicine & non-invasive ventilation government patients patient family anyone else of relevanceReminder: it’s not just about direct buyersCase: patient-centric management at Resmed
  49. 49. But it can also be very simpleCase: Rackspace
  50. 50. FUTURELAB Go forth and discover this wonderful brand!Once the basics are sortedYou can start activating promoters
  51. 51. FUTURELAB THE ACTIVATION CHALLENGE Are you likely to Do you actually recommend? recommend? YES !! NO What goes wrong ?That’s not the whole storyYou can start activating promoters
  52. 52. FUTURELABIf you want me to talk about youGive me a storythat makes myconversations(and me) more interesting.
  53. 53. What IS the story?18/04/2012 53
  54. 54. And of course…delivery18/04/2012 54
  55. 55. If you want me to introduce you to my friendsGive me toolsthat demonstrate my value to myfriends, colleagues and family
  56. 56. FUTURELAB Co-Creation Customer Council Customer Communities Help us develop Guide us Help each other Beware: these are not employees! Dont try to be too controlling – let them become selfmanaging. Dont pay them in cash – pay them respect.Back at your officeActivate your most loyal and enthousiast customers
  57. 57. FUTURELABIf you want me to introduce you to my friendsJust ask meYou’d be surprised how easy it isto get me to talk
  58. 58. FUTURELAB Dont forget: You already asked them in the survey!Mechanisms to spread the wordAsking is free FUTURELAB
  59. 59. FUTURELAB • Engage at a truly personal level, individual by individual (no automated communications) Super • Involve in future marketing, product development, sourcing, etc. Promoters • Identify the reasons and sources of their promotion, which help fuel future marketing campaigns Promoters • Give them tools to actually promote (stories to tell, gifts to give…) • Ensure that the passives know what drives the promoters, i.e. highlight what is good and positive Passives • Capture if they just want to be left alone (lest they might turn into detractors) • Based on root cause analysis engage early and on the topics that matter most Detractors • Show that you actually listen and are serious to resolve issues – f.i. list current issues on the website • Engage directly and personally to resolve their issues, see what it takes to stop them from damaging you Brand • Turn them into ambassadors – also internally, to teach the organisation how to stop creation of ‘terrorists’ TerroristsNPS based segmentationDifferentiate conversations based on customer attitude
  60. 60. NPS based segmentationDifferentiate conversations based on customer attitude
  61. 61. FUTURELAB Case: World Economic Forum Everyone who works for the WEF and openly uses social networks is – de facto – a spokes person for the company • Train them • Create minimal guidelines • Support them to go (more) onlineGuidance is usefulMake sure your people are social-savvy
  62. 62. FUTURELAB2 out of 3 employeesis proud about theiremployer, but only 19%shares stories onsocial media: unusedconversation potential.
  63. 63. FUTURELAB “you know what those idiots did at work”?Employees matterRemember last Christmas dinner conversation?
  64. 64. FUTURELAB 117,000 employees* = 17.5 million 1st degree contacts = 2.65 billion 2nd degree contacts I have the power to Not to mention: Distribution network, vendors, other. make or break you. If you do the math There are a lot of conversations waiting to happen* Applying Dunbar’s number of an average of 150 meaningful relationships to a global electronics company
  65. 65. FUTURELAB Romanian insurance employee media impact (excl. agents) = 350 employees = 52,500 1st degree contacts X trust multiplier = 7,875,000 2nd degree contacts Bucharest population = 1.9 million (4.14 x) Vs. Romanian population = 21.9 million (36%)Act as an ambassador at all timesThis conversation actually has quite a bit of impact
  66. 66. Consider • Would you buy vs. Would you work • Handle with care – politicalEmployee NPS • Anonymity is Imperative
  67. 67. FUTURELABWould you recommend the bank to friends /family?32% No 28% conditionallyWould you recommend the bank as an employer?39% No 30% Yes N=25,000 (out of 59,000)This is especially bad if you consider that not all employees are promotersCase: Commerzbank
  68. 68. FUTURELAB Really??DebateHow is this in your businessImage attribution: Rob Markey, Bain & Company
  69. 69. FUTURELABIn countries where employees are 10% more likely to promote Holcim, NPS is on average 18 points higherCase: Holcim18/04/2012 69
  70. 70. FUTURELABCreating promotersIt takes more than ticking the customer feedback box.
  71. 71. FUTURELAB A structured approach 1. Show me the Money 2. Listen to the Customer’s Voice 3. Build a platform for aligned action 4. Manage the customer experience 5. Future-proof your channels 6. Manage all your social media 7. Build a customer movement 8. Walk the customer talkFUTURELAB
  72. 72. FUTURELAB @FLB_StefanKolle www.futurelab.net slideshare.net/futurelabYOUR FREE E-BOOK DOWNLOAD ON:http://tinyurl.com/b2bbucharestAvailable via

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