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Great customerloyaltyb2b
1. Generating Great Customer Loyalty
in the Real World (B2B Edition)
Prepared for North Seattle Community
College
by Scott Pinzon, Director of
Marketing, ICANN
14 FEBRUARY 2012
18. How you can make a positive difference
• Do some down ‘n’ dirty, no-budget
research
• Set a goal of engaging customer
emotions
• Leverage social media
Money nice, but not required.
Mainly need: compassion, courage, and
time
30. Your goal: making“true fans”
Buys everything
Even the B-sides
Even the holiday
record
Knows your offering in
detail
Actively waits for your
next release
38. LiveSecurity‟s Misses
• Started out written by experts, to experts
• Key user was less informed than we
thought
• Key user was younger than we thought
39. LiveSecurity‟s Hits
• We discovered our audience loved
puzzles.
“Dustin Barnes” cliffhangers generated
up to 125 emails per episode.
• We noticed our audience was funny. So
we played with them.
40. LiveSecurity‟s Hits
We discovered our audience loved multi-
media.
• Radio Free Security grew to 3,000 downloads
per month in 2 years
• YouTube videos amassed 250,000 views
• Total Investment: camera, mics, editing
software
(< $15K over 3 years)
41. LiveSecurity‟s Hits
• We discovered our audience was busy.
• We added an RSS feed so our content was
pushed to them; they didn’t need to visit.
• We shortened everything we sent them, from
articles to videos to podcasts.
42. LiveSecurity‟s Hits
• We anticipated
their needs.
SecurityWise
grew
from their need
to teach security
training.
43. LiveSecurity‟s Arc
Across 5 years:
• Tripled subscribers, from 20K to 60K
• Rose renewals from <50% to 80%
• Company raised revenues from 40mil to
80mil
• Subscription revenue rose from 30% to
57%
• Thousands of emails of thanks and praise
• Based on the efforts of 7 people out of 350
44. Can You Have Similar Success? Yes!
• From 2006 on, social media drove our
wins.
• Social media lets you engage on a
shoestring.
• Social media lets you listen for free.
46. Social Media Is Pervasive
• >70% of adults online use social media
(that’s more than one billion people).
• Awareness of Facebook is close to 100%.
• Average Facebook session lasts 37
minutes.
47.
48. “But I don‟t really get social media…”
• Focus on people/relationships, not
platforms
• The rules are the same as at any party.
49. Social Media Policy and Guidelines
• socialmediagovernan
ce.com has 130
policies
• compliancebuilding.c
om
53. Great Customer Loyalty…
• Requires knowing your customer
• Requires engaging your customer’s
emotions
• Can be generated using social media
• Requires authentically caring
Mostly need: compassion, courage, and
time
Who is this guy? Why did Marcia bring him in out of nowhere?
I’m Scott PinzonMy first professional job was as an operations supervisor for Greyhound. I dispatched buses out of the Los Angeles terminal, which fills a city block.It’s in one of the toughest parts of town, and whenever it would rain – especially at night – the terminal would fill with homeless people trying to find shelter.A big part of my duties was to throw them out. I was 27 and soft-hearted and I thought, There has to be a better way to make a living.Technical writer – 6 years; headed documentation teams in two companies.Bored, switched to marketing; that’s been my focus since 1992. Worked in high tech since 1988. Currently Director of Marketing and Outreach for the Internet Corporation for Assigned Names and Numbers (ICANN).This is a non-profit that coordinate the Domain Name Service and IP addresses so that there can be one global Internet.My approach to customer service is extremely pragmatic. I don’t have a degree. But I’ve had success by pursuing what works.
Why are you here?Why take a class on customer service?How many are planning to start a company?How many want to get ahead at a traditional employer by learning about customer service?Thanks; that will help me keep my remarks relevant.
Let me introduce the main themes I hope to convey today… Then I’ll drill down into more detail on each theme.
Anybody disagree with this? But of course it is a means to an end…
So, we’re not being nice to people because we like being nice. This is a mercenary proposition.Now the BEST model is an enlightened one where everybody wins:
The Golden Ideal is, you have done a wonderful service for the customer making them genuinely happy because you genuinely care, AND they keep giving you money because your offering has value to them.Maybe that’s why there is a scale in balance on our currency.Do we agree? The golden ideal is, truly happy customer getting value, and us getting recurring revenue for offering the value?
Ever gotten a gift from grandma that’s wildly inappropriate for who you are? Customer service can be just as misguided.
Customer service doesn’t work for EITHER party when it’s misguided or a little “off.”You might make a terrific eye makeup remover. But who will buy this?You might make terrific noodles, but who will buy this?Does this send the signal it intends to?Why do we see so much customer service that’s not on target?
In my experience, it’s because executives so often forget this.We each think our own perspective is reasonable, normal, and mainstream. But logically, not everyone can represent normal. SOMEone is populating the ends of the bell curve.Your customers are NOT JUST LIKE YOU. So what are they like?
In pop culture, we have this enduring legend of zombies that exist as the forever-undead, with an unquenchable, unending desire to eat brains.We need to take a cue from them. But what we should have an unquenchable desire for is customer data.
I’ll add another thought here that I consider foundational. If you have a business where people cannot escape you, then it’s fine if they don’t feel anything about you.We each pay our utility bill regularly, so in that sense you’re a repeat customer; yet you don’t love the electric company, right?But if you have a product or service where consumers have choices, where you have competition – you survive best by making them love you. I’m here to talk about B2B today, and this is JUST AS TRUE there as in B2C.
For a long time, marketing theorists have understood that consumers buy products for non-rational reasons. BMW sells a car on the basis of prestige; or a toothpaste will grant you love, sex, and belonging. But marketing leaders assumed that when a business buys from another business, it’s entirely rational, and you have to win on straight-up features, finances, and facts.Marketers figured, look, it’s really a group buy. So even if a sales person’s wining and dining charms some buyer, the buyer has to persuade a committee or a couple of levels of management, so… it’s all very rational. That is no longer consensus wisdom. Thinking today is that even though it’s a group buy, SOMEone is the driver. And in his or her heart, that person buys for an emotional reason first, then back-justifies an already-made decision by seeking a rational defense.If you doubt this, simply Google this string, and read article after article. Go to one marketing forum after another. In fact, the concept of a completely objective, rational business buyer is considered a myth!
So how do you engage the customer emotionally? I’ll give examples.
But what can you do about it, if you’re part of the 90% of organizations that don’t care?
I’ll share some simple tips that work for me when I have been in organizations that in reality have insufficient customer focus.The system is very hard to beat if you need to ask upper management for money… so these are low- to no-budget techniques.
Mingle with your audience at live events. if they’re “racing for the cure,” be there at least once. You know why? See what they laugh at. See what disgusts them. You get more from hearing a few wise-cracks than you do from reading that they “dislike office politics.” Every vertical niche in business has associationsand almost all of them have a Seattle chapter. Learn about upcoming gatherings using these resources. And of course, if you can afford to attend an expensive conference, do it!But this requires no airfare, no hotels, no per diem.. just go mingle.
Magazines – subscribe to the stuff your business customer is almost certainly readingTrade journals, association newsletters, pop magazines that frequently cover their spaceYou can get free subscriptions to some trade journalsSome are really expensive.Instant solution: Average annual employee turnover in businessis 16% per year; go in the mail room and grab the magazines of the quit, fired, and retired
If you personally know anyone who falls within the category you’re trying to reach, quiz and observe them. In a B2B setting, you should know the specific title of your buyer, or the narrow range of titles.When you have ideas for customer service, try it on someone you are friendly with who has that title. Tell them what you have in mind and ask for their reactions.SecurityWIse: We wondered if ten-minute training videos were too long for the IT staffer we were trying to reach. So I invited the guy at my company who had the same title as my audience to watch the video and give me his candid response. He came to my office and watched the video and gave me really positive feedback.But my big learning was that while he was watching the video, his pager went off three times. He said ten minutes was a fine length because you could watch it on a coffee break, but because I saw his pager buzzing, I made the videos shorter.
Think like an anthropologist, observing gorillas in the mist. Take an analytical mind into this; don’t just go and play wallflower in the corner.How does this pay off? In my industry, high tech products, I was at a conference where a leading firm had spent on an enormous trade show area. It was expensive for ONE booth, and they had the equivalent of eight. They had fancy displays and blinken-lighten and several sales people standing around, ready to serve you… but not getting much traffic. Meanwhile, two aisles over, a single-sized little booth was getting so much traffic, they had a long line of IT guys waiting to interact with the booth personnel.Why? Because the smaller company knew their audience. Guitar Hero had just come out, and they had an Xbox, a TV, and the peripherals to play Guitar Hero. And all you had to do to play was hand over your business card. They knew what those guys were interested in.The point is, this stuff only become possible if you know your customers.Your goal is to be able to think like a member of their tribe.
So, here’s a recap of the quick-n-dirty method to get your own internal feel of your readership.
is it possible to MAKE true fans of your product or service? How?I’ve done it.
here’s your secret weapon: Maslow’s Hierearchy of Human Need.Abraham Maslow was an American psychologist, and in a paper he published in 1943, he gave his theory of what motivates human beings. Lower levels must be addressed before a person feels free to address higher levelsEvery human need maps to this pyramid.What I am suggesting to you is, During every contact with the customer, you should know what layer on Maslow’s pyramid you are addressing.
During customer service, it’s essential to show patience, understanding, and respect for the customer. What layer is that?[Esteem]If your service person is late, the reason the customer freaks out is on this pyramid. What layer is that?[Various].The simple point here is that if you are doing this explicitly, with awareness, you do it better. The customer walks away thinking, “That company really gets me.”hey! NOW if they tell their FRIENDS about you, THEY have answers, and your service triggered THEIR Love/Belonging layer. Or if the new knowledge they got from you makes them look smart, you’ve got THEIR Esteem layer working for YOU.
This is a true story. And Marcia was there for a good amount of it.
Get this book. Read the appendix. Look up the social media policies of companies similar to yours. Steal shamelessly. Done.
have you ever looked at your bills or your checking account balance and thought to yourself,“Boy, today I want to leverage my current assets and optimize my liquidity using Morningstar’s # 1 investment choice!”No! What you think is, “Ow, I need more money.”In social media, don’t write like a talking logo. The goal is to engage customers emotionally. NO ONE likes to be hustled, conned, or lied to. EVERYONE likes to hang out. To the extent you can, write to the “blue jeans” mindset. (Note I didn’t say “underwear” or “mentally, everyone is going commando.”)Be plainspoken and authentic. If your company screwed up, the best way out is to apologize and fix it… getting defensive only prolongs and heightens the shame.
If you are stuck on any of these concepts in the next few weeks, feel free to write me.