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Your Customers Are Your Best Channel
Joe Orlando
The TorchLite Group
What is aLoyalCustomer?
One Who is Highly Satisfied
One Who Keeps Buying from You
One Who Trusts you
One Who Looks to You for Reliable Information
What is aBrand Advocate?
AHighly Satisfied Customer
Who Keeps Buying From You
AND Recommends You to Others
TheCustomer Hierarchy
Brand Advocate
Loyal Customer First
Time Customer
Prospect
Target
**everyone focuses on the bottom two and too little
focus on top two
Who HasBrand Advocates?
Apple
Compaq
Dell
Starbucks
British Air
Singapore Air
Ritz Carlton
Four Seasons
Lexus
Marks &Spencers
Canyou explain why
you “feel” something
when you think of
these brands?
Impact on Profitability
According to Opinion Research, Corporation &
Profit Impactof 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 average3.8% Return on Sales
while Top20% in Customer Satisfaction enjoy 12.4% Return on Sales
Counter Intuitive - LoyalCustomers
are More Profitable Customers
Why Are Having BrandAdvocates
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
Additionally, Brand Advocates
Are more tolerant of failures
Are most willing to work with
you to enhance offerings and
develop new products
What Contributes to Customer
Satisfaction?
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 you
are the best at what you do.
(And what you are NOT
Best At)
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 CRITERIAAND 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
Dowe havebrand advocates?
Measurements
Satisfaction
Repeat Purchasers
Share of the Customer’s spend
Lifetime value
Lead Scoring
Recommendations to others
Online Support(Likes; Ratings; Stars, etc)
Willing References
Proactive Collaboration
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
BE HONEST WITH YOURSELF!
Profile your bestcustomers
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?
How do you usethe 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?
What Are their Key Decision Criteria?
What Are their Other Options?
How Will They Be Measuring Success?
You hunt deer where the deer live – not in a parking lot
at the mall…
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
Airline
Example
If Profitability is the Objective
We must attract people who pay a lot for their
tickets
Assess more points for 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
NOT Just a Cliché’
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.
In fact, the damage an unsatisfied
customer will do goes well beyond
THAT customer but influences
potential customers
Gaining Customer Insight –After
Identifying the IdealTarget
Gaining “insight”
into the
Customer
motivations is
the path to
creating a
relevant and
personal
connection with
customers – then
Content Market
While most focus on how the
products match the customers
MUST look at how the customers
view your offer
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?
Consider
FromYourPersonal 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
Ssssshh… the secret?
Respectful, EMPATHETIC and comprehensive
understanding of a customer – like each customer
was the only one!
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 food?
Can You Answer?
For Whom (the relevant target) Does (the
insight of customer relevance and motivations)
What We Offer (whole product/experience = the
BRAND)
Deliver (benefits directly related to
motivating insights)
Unlike (relevant competitor) Any Other
Option?
WHAT ARE THE RELEVANT DIFFERENTIATORS?
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.
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?
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 GE?
Motorola experienced this (to its peril) when
approaching a consumer market with a Corporate
Branding Position and NOT a Consumer Focused
Brand
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 EVERYContact 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?
Content Marketing Builds Relationships; Trust;
Loyalty; and “Top of Mind” Positioning
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?
Did your message “hit its mark?”
Is your message tailored to the channel and consumer of
your message?
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
Great Products Don’t
Create Great Brands
Focus at Lexus is to deliver the total customer
experience
Lexus stated strategy – “To create atotal
consumer service experience, including product,
for averyspecific consumer segment”
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
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
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!
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.”
Building the Whole Brand
Behavioural Targeting
Relevant Content Marketing
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
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
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!
(Does Your Mission Statement Even Mention the Customer?)
Where Do You Keep Your Brand?
Let’s Explore Your BrandPolicy
Look, Color, Placement
Process, Action, Empowerment
Adding Value During Research Process
Value to Make the Sale (Decision Support)
Value Beyond the Sale
Value toYour Customer
Confidential Joe Orlando 41
Let’s Test Your Brand
What’s Your Mission Statement?
Where are Your Customers?
Always Selling? Or Supporting?
Which Values are Most Prominent?
Price?
Return of Investment?
Savings?
Confidential Joe Orlando 42
Thankyou!
EVERY action should start with…
“WHY SHOULD A CUSTOMER CARE?!”
If it takes more than one minute to say
– you aren’t there yet.
Confidential Joe Orlando 43

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Creating Brand Advocates

  • 1. Your Customers Are Your Best Channel Joe Orlando The TorchLite Group
  • 2. What is aLoyalCustomer? One Who is Highly Satisfied One Who Keeps Buying from You One Who Trusts you One Who Looks to You for Reliable Information
  • 3. What is aBrand Advocate? AHighly Satisfied Customer Who Keeps Buying From You AND Recommends You to Others
  • 4. TheCustomer 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 HasBrand Advocates? Apple Compaq Dell Starbucks British Air Singapore Air Ritz Carlton Four Seasons Lexus Marks &Spencers Canyou explain why you “feel” something when you think of these brands?
  • 6. Impact on Profitability According to Opinion Research, Corporation & Profit Impactof 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 average3.8% Return on Sales while Top20% in Customer Satisfaction enjoy 12.4% Return on Sales
  • 7. Counter Intuitive - LoyalCustomers are More Profitable Customers
  • 8. Why Are Having BrandAdvocates 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 you are the best at what you do. (And what you are NOT Best At)
  • 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 CRITERIAAND 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. Dowe havebrand advocates? Measurements Satisfaction Repeat Purchasers Share of the Customer’s spend Lifetime value Lead Scoring 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 BE HONEST WITH YOURSELF!
  • 15. Profile your bestcustomers 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 usethe 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? What Are their Key Decision Criteria? What Are their Other Options? How Will They Be Measuring Success? 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 for 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. NOT Just a Cliché’ 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. In fact, the damage an unsatisfied customer will do goes well beyond THAT customer but influences potential customers
  • 20. Gaining Customer Insight –After Identifying the IdealTarget Gaining “insight” into the Customer motivations is the path to creating a relevant and personal connection with customers – then Content Market
  • 21. While most focus on how the products match the customers MUST look at how the customers view your offer 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 FromYourPersonal 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 customer 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) Deliver (benefits directly related to motivating insights) Unlike (relevant competitor) Any Other Option? 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 GE? Motorola experienced this (to its peril) when approaching a consumer market with a Corporate Branding Position and NOT a Consumer Focused Brand
  • 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 EVERYContact 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? Content Marketing Builds Relationships; Trust; Loyalty; and “Top of Mind” Positioning
  • 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? Did your message “hit its mark?” Is your message tailored to the channel and consumer of your message?
  • 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 atotal consumer service experience, including product, for averyspecific 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 Relevant Content Marketing 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! (Does Your Mission Statement Even Mention the Customer?)
  • 41. Where Do You Keep Your Brand? Let’s Explore Your BrandPolicy Look, Color, Placement Process, Action, Empowerment Adding Value During Research Process Value to Make the Sale (Decision Support) Value Beyond the Sale Value toYour Customer Confidential Joe Orlando 41
  • 42. Let’s Test Your Brand What’s Your Mission Statement? Where are Your Customers? Always Selling? Or Supporting? Which Values are Most Prominent? Price? Return of Investment? Savings? Confidential Joe Orlando 42
  • 43. Thankyou! EVERY action should start with… “WHY SHOULD A CUSTOMER CARE?!” If it takes more than one minute to say – you aren’t there yet. Confidential Joe Orlando 43