Unhappy customers tell ten times as many people about bad experiences as happy ones do about good ones! Make happy customers into Brand Advocates!

1. Your Customers Become Your Best Channel
Joe Orlando
Director

2. What is a Loyal Customer?
 One Who is Highly Satisfied
 One Who Keeps Buying from You

3. What is a Brand Advocate?
 A Highly Satisfied Customer
 Who Keeps Buying From You
 AND Recommends You to Others

4. The Customer Hierarchy
Brand Advocate
Loyal Customer
First Time Customer
Prospect
Target
**everyone focuses on the bottom two and too little
focus on top two

5. Who Has Brand Advocates?
 Apple
 Compaq
 Dell
 Starbucks
 British Air
 Singapore Air
 Ritz Carlton
 Four Seasons
 Lexus
 Marks & Spencers
 Can you explain why
you “feel” something
when you think of
these brands?

6. 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

7. Counter Intuitive - Loyal Customers
are More Profitable Customers

8. Why Are Having Brand Advocates
Profitable?
 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

9. Additionally, Brand Advocates
 Are more tolerant of failures
 Are most willing to work with
you to enhance offerings and
develop new products

10. What Contributes to Customer
Satisfaction?

11. Focus – Focus – Focus
 Know Who We HAVE to Get
 Who we would like to get –
Nice to Have
 Who the entire market is –
Be Particular
 Don’t drink the kool-aid –
BE REAL about why we are
the best at what you do.

12. Five Steps to Creating
a Brand Advocate
 Define your BEST customers (not ALL of them)
SEGMENT PROFILE
 Define what motivates them to buy your product
(BUYER CRITERIA AND BEHAVIOUR)
 Identify all the Brand Contacts which drive
satisfaction
 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

13. Do we have brand advocates?
 Measurements
 Satisfaction
 Repeat Purchasers
 Share of the Customer’s spend
 Lifetime value
 Recommendations to others
 Online Support (Likes; Ratings; Stars, etc)
 Willing References
 Proactive Collaboration

14. Strategic Value Marketing
 Don’t be tempted to market with your Mission
Statement and define your customer as the entire
market opportunity
 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

15. Profile your best customers
 Satisfaction
 Profitability
 Retention
 Penetration
 What characteristics do they all have
in common?
 What other variables describe these
customers?
 What value do they place on your
offering?
 Why and when do you lose?

16. 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…

17. Airline Example
 If Revenue Growth is the Objective
 We Target 100,000 miles a year fliers
 Business travellers
 Long haul domestic flights
 At least twice a month
 At least 4 international flights a year

18. Airline
Example
 If Profitability is the Objective
 We must attract people who pay a lot for their
tickets
 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

19. Consider This
 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

20. Gaining Customer Insight – After
Identifying the Ideal Target
 Gaining
“insight” into
the Customer
motivations is
the path to
creating a
relevant and
personal
connection with
customers

21. While most focus on how the
products match the customers
 MUST look at how the customers view the
products
 Positioning?
 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?

22. Consider
From Your Personal Experience
 What makes the experience
worth recommending?
 “They knew me and what I
wanted!”
 “They anticipated my needs – the
service was exceptional!”
 “It was a pleasure to do business
with them!”
 Doesn’t matter if it’s a cab ride, auto
service, restaurant or home purchase

23. Ssssshh… the secret?
 Respectful, EMPATHETIC and comprehensive
understanding of a customer – like each was the
only one!
 Not demographic profiles, not target audiences –
but REFLECTIVE, DIRECT
 “It was as though he was singing right to me!”

24. 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
food?

25. Can You Answer?
 For Whom (the relevant target)
 Does (the insight of customer relevance and
motivations)
 What we Offer (whole product/experience = the
BRAND)
 That Delivers (benefits directly related to
motivating insights)
 Unlike (relevant competitor)
WHAT ARE THE RELEVANT DIFFERENTIATORS?

26. Brand is NOT
The Marketing
The Logo
The Advertising
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.

27. Classic Examples
Candies in foil wrappers are
better tasting and more
expensive than candy in
plastic wrappers?
Beer in Clear Bottles –
more or less expensive
than beer in dark green
bottles?

28. Never Forget
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
Home Depot?

29. 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

30. 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?

31. 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?

32. Look at Lexus
21% of Luxury Car Market
Highest Customer
Satisfaction for seven
years running
Highest customer
retention of any car
manufacturer 65% and
rising

33. Great Products Don’t Create
Great Brands
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
consumer segment”

34. 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

35. Customer Insight
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
day life

36. Luxury Car
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!

37. 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
own home.”

38. Building the Whole Brand
Behavioural Targeting
Key Insights and Whole Brand Positioning
Key Whole Brand Contact Points
Priority List for Improvements
Consistent “litmus test” and continuous improvement

39. 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
customer hand-offs
 Metrics focused on market performance rather than
customer performance
 Inability to maintain ongoing connections with the
customer – not an event – a culture

40. How often does the customer’s
success come into everyday
communications?
Is the focus on making the sale… or making the
customer successful?
Many Mission Statements fail to address the
customer!

41. 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

42. Let’s Test Your Brand
 What’s Your Mission Statement?
 Where are Your Customers?
 Which Values are Most Prominent?
Confidential Joe Orlando 42

43. Thank you!
EVERY action should star with…
“WHY SHOULD A CUSTOMER CARE?!”
If it takes more than one minute
– you aren’t there yet.
Confidential Joe Orlando 43