Customer Insights that Matter


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At the Advertising Research Foundation’s (ARF) 2011 annual re:think convention, a key issues forum presentation was held entitled Customer Insights that Matter. Patrick Barwise-Emeritus Professor of Management and Marketing at London Business School and author of books, Simply Better and Beyond the Familiar presents on how to keep customer and business sustainability.

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Customer Insights that Matter

  1. 1. Customer Insightsthat Matter Patrick Barwise Emeritus Professor of Management and Marketing London Business School
  2. 2. Customer Insights that
  3. 3. Easy to Say, Hard to DoMarketing is not a specialized businessactivity…it is the whole enterprise seenfrom the customer’s point of view. Peter Drucker The Practice of Management,
  4. 4. O wad some Power the giftie gie us To see oursels as ithers see us! Robbie Burns, Scotsman
  5. 5. Sustained Profitable GrowthPercent of large companies 1990-2004Any 5 consecutive years 24%Any 10 consecutive years 5%All 15 years 1%Source: Chakravarthy and Lorange, Profit or Growth?,
  6. 6. Back to Basics Customer Promise Innovation Open Customer Beyond the Organization Trust Familiar Continuous
  7. 7. 65 Years of Market-DrivingIncremental Innovation• 1946: First heavy-duty synthetic laundry detergent (coincided with first automatic washing machines)• Relentless improvement and extension of the brand (65 years and counting)• Rigorous use of insights to ensure continuing relevance• Brand
  8. 8. Customer Insights forContinuing Relevance• New and old, high-tech and high-touch• Formal market research and other sources• Main new trend: DIY immersive
  9. 9. Customer Focus is a Leadership
  10. 10. Feedback Loops Aggreko Customers Aggreko Email Invitation Client Contact Information Sample Survey File Management Deposit Website System Qx A Firewall Sample DB SecureSite Access Control Satmetrix CEO Executive Platform Report Site Sales Team Analyst Report Site Survey DB Low Scores Email Notification Operational Report Site Automatically Sends Report as Word Doc Business Managers (Outsourced Solution) in
  11. 11. Tide Knows Fabrics
  12. 12. You’re Not as Open as You ThinkBoss: “Why is Janet leaving?”Colleague: “She’s been unhappy for months”Boss: “Why didn’t she tell me?”Colleague: “She tried”
  13. 13. Every Layer is a Bad Layer 1 complain to V. P. 2 customers dissatisfied at middle management Every layer is a bad layer… obstructing swift and Vice President 10 customers complain to simple communication…. We must create an atmosphere middle management where people can speak up to somebody who can do something about their problem. customers dissatisfied Middle 50 after front-line effort Management Jack Welch 200 who complain to front-line Front-line Service Providers 500 who are dissatisfiedSource: U.S. Office of Consumer
  14. 14. 60 Years of RejectingUnwelcome Messages1946: Drucker’s The Concept of the CorporationAn attack on the company, as hostile as anymounted by the left.2007I found GM impossible to deal with. They had theirown fixed ideas and always thought they were right. Wally Olins Brand
  15. 15. Opening Up the Organization Customer Promise Innovation Open Customer Beyond the Organization Trust Familiar Continuous
  16. 16. Five Questions for Your Company1. Can your middle managers accurately describe your customer promise?2. Can every member of your top team list the three things that most erode trust among your existing customers?3. Is your brand really the best option for customers, and will it still be next month and next year?4. Have you acted on any novel ideas in the last year which led to a significant innovation beyond the familiar?5. Have your front-line staff asked you any uncomfortable questions or suggested any important improvements over the last three months?
  17. 17. An Endorsement fromLast Night’s Speaker The value of Beyond the Familiar lies almost as much in the silver bullet solutions it debunks as in the infinitely wise marketing principles it advocates. In their search for the secrets of consistent growth, Barwise and Meehan distil the experience of others with merciless objectivity. Shareholders could sleep better at nights if every CEO had absorbed their fundamental lessons. Sir Martin Sorrell, CEO