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BACK TO ZERO - Understanding who our customers really are and what to do with them
The document discusses the importance of understanding customer loyalty and retention strategies, emphasizing that customer satisfaction does not always equate to loyalty. It outlines various customer types and the business model's unique selling propositions required to meet their needs, focusing on operational excellence, customer intimacy, and product leadership. The document ultimately argues that effective customer relationships lead to increased sales and long-term success.
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BACK TO ZERO - Understanding who our customers really are and what to do with them
- 1. BACK TO ZERO Understandingwho our Customers really are and what to do with them Kenny Ong
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- 4. BACK TO ZERO:CX 0.0 EDITION Understanding our role in the whole scheme of things
- 5. 5 Philosophy “In business afterbusiness, 60% to 80% of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.” HBR March/April 1996
- 6. 6 What is thepurpose? Ultimate Objective : “Get more people, to buy more things, more frequently, at higher prices.” Sergio Zyman “Retention and Loyalty are useless if No Conversion is happening.”
- 7. 7 What is theObjective? 1.Obj = Relationship (something like Dating) 2.Obj ≠ Media glitz 3.Obj ≠ ATL/BTL/BwTL/ArTL/FTL 4.Obj ≠ CSR 5.Obj ≠ Social Media 6.Obj = Get more people, to buy more, more frequently, at higher prices
- 8. 8 1.Loyalty = Relationship(something like Dating) 2.Loyalty ≠ Points 3.Loyalty ≠ Redemption 4.Loyalty = Get more people, to buy more, more frequently, at higher prices
- 9. KNOW WHO YOUARE TALKING TO Loyalty and Experience mean different things to different people http://totallyunrelatedrandomanddebatable.blogspot.com/
- 10. 10 Target: Customer Types Loyalty ExperienceSwing Former Opposition Experience shaped by “Product” Experience shaped by Transactions
- 11. 11 Target: Customer Types Loyalty ExperienceSwing Former Opposition Experience shaped by “Product”
- 12. 12 Zig Ziglar “Most prospectsthat don’t buy are confused about the offer”
- 13. 13 Loyalty 1: Experience Loyalty= Experience vs. Expectations Solution Strategy: Business Model
- 15. 15 What is theBusiness Model? USP Market Discipline Profit Model •Google •Tata Nano
- 16. 16 What is theProduct? Core Buying Purpose/ Customer Value Proposition/ Job To Be Done (JBTD)
- 17. 17 “The Product isNot the Product” • What is the customer really buying? • What is the “Core Buying Purpose”?
- 18. 18 Business Model: USP •Unique Selling Proposition (USP) • = • Targeted Customer • = • Core Buying Purpose/ Customer Value Proposition/ Job To Be Done (JBTD)
- 19. 19 Business Model: USP Obstaclesto JBTD: 1. Insufficient WEALTH 2. Insufficient ACCESS 3. Insufficient SKILL 4. Insufficient TIME
- 20. 20 Market Discipline "They arethe most innovative" "Constantly renewing and creative" "Always on the leading edge" "A great deal!" Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership "A no-hassles firm" Convenience and speed Reliable product and service "Exactly what I need" Customized products Personalized communications "They're very responsive" Preferential service and flexibility Recommends what I need "I'm very loyal to them" Helps us to be a success Product Leadership Operational Excellence Customer Intimacy • Cost • Convenience • TCO • Features, Benefits • Limited Range • Solutions • Customization • Breadth & Depth
- 21. 21 Market Discipline "They arethe most innovative" "Constantly renewing and creative" "Always on the leading edge" "A great deal!" Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership "A no-hassles firm" Convenience and speed Reliable product and service "Exactly what I need" Customized products Personalized communications "They're very responsive" Preferential service and flexibility Recommends what I need "I'm very loyal to them" Helps us to be a success Product Leadership Operational Excellence Customer Intimacy•Air Asia •LV •Ramly
- 22. 22 Operational Excellence • Competitive price •Error free, reliable • Fast (on demand) • Simple • Responsive • Consistent information for all • Transactional • 'Once and Done' Customer Intimacy • Management by Fact • Easy to do business with • Have it your way (customization) • Market segments of one • Proactive, flexible • Relationship and consultative selling • Cross selling Product Leadership • New, state of the art products or services • Risk takers • Meet volatile customer needs • Fast concept-to- counter • Never satisfied - obsolete own and competitors' products • Learning organization Alignment & Consistency: Disciplines, Priorities, and KPIs
- 23. 23 Loyalty 1: Experience OperationalExcellence: Quality and selection in key categories with unbeatable prices * Treacy & Wiersema, The Discipline of Market Leaders, 1995 Quality Product/Service Attributes Price Time Selection √ √ Smart Shopper Relationship Image
- 24. 24 Loyalty 1: Experience ProductLeadership: Unique products and services that push the standards Product/Service Attributes √ Brand Time Function √ √ Best Product Relationship Image
- 25. 25 Loyalty 1: Experience CustomerIntimacy: Personal service tailored to produce results for customer and build long-term relationships √ Product/Service Attributes √ √ √ Trusted Brand Relationship Service Image Relations
- 26. 26 Each Market Discipline RequiresA Different Emphasis Operational Excellence • Production, Logistics, Finance • Order fulfillment, Resource Customer Intimacy • Marketing Sales, Service • Market mgmt, Customer satisfaction Product Leadership • R&D, Legal (Licenses), Engineering • Product development, Concept-to- Customer Functional emphasis Process Emphasis .my stewardship • Transactions, costs, time • Costs, quality, speed • Trends (past), Transactions Employee tools/tasks • Customers, analysis, linkages • Satisfaction, cust. success, share, anecdotes • Today, Relation- ships, Employee empowerment • Linkages, insight, comm, groupware • Ideas-thru- funnel, patents, etc. • Tomorrow, Product Portfolio, Ideas and Risks Information emphasis Key metrics Key concerns
- 27. CX1.0: PROTECTING YOURBASE Do the right things, then do the right things efficiently
- 28. 28 Target: Customer Types Loyalty ExperienceSwing Former Opposition Experience shaped by Transactions
- 29. 29 Loyalty 2: Swing www.myCNI.com.mywww.OOBEY.com Loyalty = Best alternative at the current moment until I find another alternative Solution Strategy: Base Retention
- 30. 30 Loyalty 2: Swing SwingCustomers are “loyal” because: • Individual Relationships • Convenience (at that point in time) • Tied-up • Product Uniqueness • Promotions • No better alternative • Downlines • No known alternative • Psychologically lazy
- 31. 31 Sample Strategies for‘Swing’ • Increase switching costs • Mega packages • Community • Incentive programs • Membership Subscription • Communications • Newsletters • Personalized alerts • Survey • Suggestion Box • Switching Techniques (e.g. Balance Transfer of credit cards)
- 32. 32 Downturn: Customer Typesvs. Branding Customer Types Your Products/Services Hand brake Surviving Well Off Don’t Care Essentials Treats Postponables Expandables
- 33. 33 Downturn: Customer Typesvs. Branding Your Products/Services Essentials Treats Post- ponable s Expa n- dable s •Necessary •Survival •Well-being •Indulgences •Justifiable • Needed or desired • Can be put off •Unnecessary •Unjustifiable
- 34. 34 Downturn: Customer Typesvs. Branding Hand brake Customer Types •Price •Smaller Pack Essentials Surviving Well Off Don’t Care •Private Labels •Low-cost ‘Value’ products •Fighter Brands •Less Variety/Customization •Immediate cash back
- 35. 35 Downturn: Customer Typesvs. Branding Hand brake Customer Types •Shrink sizes •Hold down prices Treats Surviving Well Off Don’t Care •“You Deserve It” •Less Variety/Customization •Immediate cash back
- 36. 36 Downturn: Customer Typesvs. Branding Hand brake Customer Types Postponables Surviving Well Off Don’t Care •Low-cost Financing •Exceptional Deals •“Danger of Postponing” •Immediate cash back
- 37. 37 Downturn: Customer Typesvs. Branding Hand brake Customer Types Expandables Surviving Well Off Don’t Care •Offer D.I.Y. versions •Awareness •Immediate cash back
- 38. 38 Downturn: Customer Typesvs. Branding Hand brake Customer Types •Lower Price options Essentials Surviving Well Off Don’t Care •Bonus Packs (Stockpile) •“Dependability” •“Good enough” •Immediate cash back
- 39. 39 Downturn: Customer Typesvs. Branding Hand brake Customer Types •Reward Loyalty Treats Surviving Well Off Don’t Care •“Improve Morale” •Affordable vs. Luxury •Immediate cash back www.myCNI.com.my www.OOBEY.com
- 40. 40 Downturn: Customer Typesvs. Branding Hand brake Customer Types Postponables Surviving Well Off Don’t Care •Simpler Models, Lower Prices •Lower TCO models •Repair services •Immediate cash back
- 41. 41 Downturn: Customer Typesvs. Branding Hand brake Customer Types Expandables Surviving Well Off Don’t Care •Awareness •R&D of Core Products •Immediate cash back
- 42. 42 Downturn: Customer Typesvs. Branding Hand brake Customer Types Essentials Surviving Well Off Don’t Care •Awareness
- 43. 43 Downturn: Customer Typesvs. Branding Hand brake Customer Types Treats Surviving Well Off Don’t Care •“Outstanding Quality” •“You deserve it”
- 44. 44 Downturn: Customer Typesvs. Branding Hand brake Customer Types Postponables Surviving Well Off Don’t Care •“Save from Buying Now” •“You are missing out”
- 45. 45 Downturn: Customer Typesvs. Branding Hand brake Customer Types Expandables Surviving Well Off Don’t Care •Discreet purchase (avoid flaunting) •“Impress Your friends”
- 46. 46 Downturn: Customer Typesvs. Branding Hand brake Customer Types Essentials Surviving Well Off Don’t Care •Awareness •“You can’t live without it”
- 47. 47 Downturn: Customer Typesvs. Branding Hand brake Customer Types Treats Surviving Well Off Don’t Care •A.R.O. •“Seize the moment”
- 48. 48 Downturn: Customer Typesvs. Branding Hand brake Customer Types Postponables Surviving Well Off Don’t Care •Monthly Payment Plans •“Quality of Life”
- 49. 49 Downturn: Customer Typesvs. Branding Hand brake Customer Types Expandables Surviving Well Off Don’t Care •New products •“Must Have” •“For exclusive people…”
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- 52. 56 Which Company? American CustomerSatisfaction Index (ACSI) • 64 out of100-point scale: lower than IRS (Tax) • 2nd last among 30 companies surveyed • Lowest 5% among 223 companies surveyed • Bottom 5% of all measured private sector companies • 500 million customers 2010 American Customer Satisfaction Index (ACSI) E-Business Report
- 53. 57 Which Company? American CustomerSatisfaction Index (ACSI) • 64 out of100-point scale: lower than IRS (Tax) • 2nd last among 30 companies surveyed • Lowest 5% among 223 companies surveyed • Bottom 5% of all measured private sector companies • 500 million customers 2010 American Customer Satisfaction Index (ACSI) E-Business Report Between 2011 and 2014, Facebook either held last place alone or tied with LinkedIn for the worst user satisfaction in this already low-scoring category. https://acsimatters.com/2015/09/08/big-user-satisfaction-turnaround-for-facebook/
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- 56. Thank You. soft copyof slides: https://www.slideshare.net/kennyong