Your Customers Become Your Best Channel
What is a Loyal Customer?
One Who is Highly Satisfied
One Who Keeps Buying from You
What is a Brand Advocate?
A Highly Satisfied Customer
Who Keeps Buying From You
AND Recommends You to Others
The Customer Hierarchy
First Time Customer
**everyone focuses on the bottom two and too little
focus on top two
Who Has Brand Advocates?
Marks & Spencers
Can you explain why
you “feel” something
when you think of
Impact on Profitability
According to Opinion Research, Corporation &
Profit Impact of Marketing Strategies Database
“Companies that achieve the highest level of customer
satisfaction and retention are significantly more profitable than
those who do not”
Bottom 20% in Customer Satisfaction average 3.8 % Return
on Sales while Top 20 % in Customer Satisfaction enjoy 12.4%
Return on Sales
Counter Intuitive - Loyal Customers
are More Profitable Customers
Why Are Having Brand Advocates
Reduced Marketing Costs
Higher Profits since they readily buy again and
willingly recommend to others
Willing to pay a slightly higher price
Buy new offerings more quickly
Buy across the product lines
Additionally, Brand Advocates
Are more tolerant of failures
Are most willing to work with
you to enhance offerings and
develop new products
Focus – Focus – Focus
Know Who We HAVE to Get
Who we would like to get –
Nice to Have
Who the entire market is –
Don’t drink the kool-aid –
BE REAL about why we are
the best at what you do.
Five Steps to Creating
a Brand Advocate
Define your BEST customers (not ALL of them)
Define what motivates them to buy your product
(BUYER CRITERIA AND BEHAVIOUR)
Identify all the Brand Contacts which drive
All points of contact that for them define your brand –
FROM THE RECEPTIONISTS TO THE SUPPORT DESK
Orchestrate a single brand experience across
every Brand contact CONSISTENCY IS CRITICAL
Do we have brand advocates?
Share of the Customer’s spend
Recommendations to others
Online Support (Likes; Ratings; Stars, etc)
Strategic Value Marketing
Don’t be tempted to market with your Mission
Statement and define your customer as the entire
Focus only on the BEST customers for your products
and capture them first
Carve out a space where YOUR value proposition sets
you apart from your competition – don’t lose at their
game – create a new game – on a new playing field –
turn your weaknesses into positive differentiators
Profile your best customers
What characteristics do they all have
What other variables describe these
What value do they place on your
Why and when do you lose?
How do you use the Profile?
You have now profiled your ideal target-
Where do they shop?
What do they read?
Where do they eat?
What are their priorities and pain points?
How are they solving their problem today?
You hunt deer where the deer live – not in a parking lot
at the mall…
If Revenue Growth is the Objective
We Target 100,000 miles a year fliers
Long haul domestic flights
At least twice a month
At least 4 international flights a year
If Profitability is the Objective
We must attract people who pay a lot for their
Assess more points or First Class Travel 1.5 mile points
Business class 1.25 mile points
Full Fare Economy – 1 mile points
Discounted Economy .5 mile points
Delta now has a zero points fare to compete at low end
It costs five times more to get a new
customer than it does simply to keep you
you have- - and still, most companies
allocate six times as much to the process of
acquiring new customers than they do to
the less expensive process of retaining and
growing current customers
Gaining Customer Insight – After
Identifying the Ideal Target
the path to
While most focus on how the
products match the customers
MUST look at how the customers view the
Points of contact?
Easy to purchase?
What is in place to “delight” the customer?
What steps are in place to create an advocate?
When is the last time you showed you cared?
From Your Personal Experience
What makes the experience
“They knew me and what I
“They anticipated my needs – the
service was exceptional!”
“It was a pleasure to do business
Doesn’t matter if it’s a cab ride, auto
service, restaurant or home purchase
Ssssshh… the secret?
Respectful, EMPATHETIC and comprehensive
understanding of a customer – like each was the
Not demographic profiles, not target audiences –
but REFLECTIVE, DIRECT
“It was as though he was singing right to me!”
Don’t Differentiate Just Your Products –
Differentiate the Experience
The ideal restaurant experience
starts with when you pull up
outside – how you are greeted –
where you are seated – the place
settings – the atmosphere – the
wait staff - … is it really just the
Can You Answer?
For Whom (the relevant target)
Does (the insight of customer relevance and
What we Offer (whole product/experience = the
That Delivers (benefits directly related to
Unlike (relevant competitor)
WHAT ARE THE RELEVANT DIFFERENTIATORS?
Brand is NOT
IT IS AN EMOTION – WHAT DOES IT EVOKE? The first
1000 Miatas off the line were ALL red. This was
due only to what emotion a red convertible sports
car can create as people see it for the first time.
Candies in foil wrappers are
better tasting and more
expensive than candy in
Beer in Clear Bottles –
more or less expensive
than beer in dark green
While the Company Owns the Trademark
The Customer Owns the Brand
An industrial brand won’t sell in a consumer market –
would you expect high quality furniture from
To Steal a Quote:
“Brands are built like birds build their nests – by the
scraps and twigs they chance upon,” Stephen King,
WPP Group, London
Every Contact Adds or Detracts
from the Brand
The Brand is Communicated with EVERY Contact a
customer has with your company
It has body and verbal language
Trace every point of contact and establish – did I win or
lose than opportunity to delight the customer?
Every Contact Sends a Message
Is it consistent across every point of contact?
Does it match the Customer’s expectations?
Does it match and remain consistent with the insight?
What message did they get?
Look at Lexus
21% of Luxury Car Market
Satisfaction for seven
retention of any car
manufacturer 65% and
Great Products Don’t Create
Focus at Lexus is to deliver the total customer experience
Lexus stated strategy – “To create a total consumer service
experience, including product, for a very specific
Know thy Customer
HAD to get Customers
Previous European luxury car owners
Replacing or adding an automobile
Nice to Have Customers
Current mid price Toyota customers who are trading up
Elite professional who are used to, expect and
demand high service/support
They deserve to be able to avoid the everyday
hassles and discomforts of common every
Ownership is a Reward
The consumer insight – “I earned this!”
If I pay more for “just a car” I should get more
than a typical car owners experience!
I deserve to pampered!
To Wrap it Up for Lexus
FOR past owners of European luxury cars
WHO feel they deserve the ultimate in service
OUR PRODUCT IS a cocoon of luxury
THAT makes you feel honored and catered to
UNLIKE any other luxury product
LEXUS DELIVERS the most deferential and
supportive ownership experience you can have as
long as you own your car
LEXUS MOTTO: “ We treat you like a guest in our
Building the Whole Brand
Key Insights and Whole Brand Positioning
Key Whole Brand Contact Points
Priority List for Improvements
Consistent “litmus test” and continuous improvement
Barriers to Overcome
Business Models which de-emphasize the customer
Lack of continuous pulse checking with the insights,
behaviours and motivations of the customer
Internally focused structures
Functions driven by internally focused structures
Poor cross functional relationships create poor
Metrics focused on market performance rather than
Inability to maintain ongoing connections with the
customer – not an event – a culture
How often does the customer’s
success come into everyday
Is the focus on making the sale… or making the
Many Mission Statements fail to address the
Where Do You Keep Your Brand?
Let’s Explore Your Brand Policy
Look, Color, Placement
Process, Action, Empowerment
Value to Make the Sale
Value Beyond the Sale
Value to Your Customer
Confidential Joe Orlando 41
Let’s Test Your Brand
What’s Your Mission Statement?
Where are Your Customers?
Which Values are Most Prominent?
Confidential Joe Orlando 42
EVERY action should star with…
“WHY SHOULD A CUSTOMER CARE?!”
If it takes more than one minute
– you aren’t there yet.
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