The Top 10 Best Practices in the Development of Customer Experience (CX) Excellence Programs (CEEPs)

Customer Experience (CX) is becoming a greater focus for many companies world-wide. WHY? The development of Customer Experience Excellence has been demonstrated to enable marketplace competitive advantage and to create fiercely loyal customers who are willing to advocate for the company and its brands and are also willing to pay more for their products and services in exchange for uniquely excellent customer service. In addition, when customers are provided with truly exceptional/memorable customer service time and time again, they repeatedly tell positive stories about their amazing customer experience, telling as many people as they can influence about your company, how their experience made a positive difference in their lives and how your company cares about them vs. your competitors. In essence, delighted customers transition themselves into adjunct company marketing and sales agents for the company that is equal to millions in company paid efforts, plus their grass-root and viral influence is judged at least 5-10x more credible/believable vs. company paid advertising, marketing and sales.

 

The chart below is a small sample of the benefits gained by my clients and many other companies as a result of the systemic implementation of a customer experience excellence program. In addition to the above, employees are found to be much more content working for a company who truly cares about the well being of their customers and the service they are receiving.  It makes employees, as a client employee once said in a leadership meeting, “ I am Part of it, Proud of it”. In essence, making customers happy in turn makes employees feel satisfied.

Benefits of Having an Excellent Customer Experience
Benefits of Having an Excellent Customer Experience

As a result of my experience developing Customer Experience Excellence and CRM Programs for numerous Fortune 500 companies including {American Express, Intuit Software, HP, Ritz-Carlton, Pfizer, Wells Fargo, AT&T, Starwood Hotels, Marriott, JC Penney, Macy’s, Toyota of America, Nissan, General Motors, Lenox, Southwest Airlines, Astra-Zeneca, Bristol-Myers Squibb, Welch Allyn Medical Systems, Vanguard, Citibank, Allstate, AXA Insurance, SONY, Siebel & Oracle Systems, SAS Software, Unica Software, Neopost, Bank of America, Samsung, Chrysler, Toyota, Nissan, Hilton, etc.}, I have developed the following set of top 10 best practices in relation to the development of a customer experience excellence program:

 

1. The program must be advocated, supported and championed at the CxO level. This is evidenced by the increases in staffing of the position called the “Chief Customer Experience Officer” that most top companies now have.

WHY?:  Forrester reports that 76% of executives say improving CX is a high or critical priority and many companies have established a C-level position to oversee it. Great read, source: “Why every company needs a Chief Customer Experience Officer”, Harvard Business Review: https://hbr.org/2019/06/why-every-company-needs-a-chief-experience-officer

 

2. A set of balanced scorecard metrics must be developed to measure the ongoing effectiveness of the program so that it may be continuously improved. A heavy emphasis must be placed on customer ratings of the program and associated service delivery.

WHY?: The metrics are the vision of the program and without these, the program is flying blind on whether the program is resonating with the customer.

 

3. The customer must be invited, as a brand-company partner, to participate in the program development, roll-out and ongoing evolution.

WHY?: Without really asking the customer about what they want/need directly, all other attempts or approximation of customer needs through analytics or intuition based decision making are merely guesses of what the customer really needs and wants and are likely to miss their mark.

 

4. The program must be benchmarked against, and kept competitive with, all companies who are considered to be world-class customer experience companies.

WHY?: You might feel you have a great customer experience program, but without quantitatively benchmarking it against the best of the best companies, you will have no idea how really good it is, whether it is falling behind with current/leading practices, etc.

 

5. Customer Excellence procedures, policies (SOPs) and standards must be developed that are in total alignment with the customer service vision statement and overall strategy.

WHY?: Customer experience excellence procedures is the bridge and playbook that takes the higher level customer service vision and strategy and translates into the behaviors (culture) and major actions are needed on a daily, weekly, monthly, quarterly basis to bring this vision and strategy to life and make it real to every employee.

 

6. Employees must be supported in the delivery of customer experience excellence by a set of training and development programs that certify them to be able to deliver on the customer service and experience excellence standards, policies, SOPs, etc.

WHY?: The customer experience excellence training programs translate the higher-level customer experience excellence procedure and policies into a detailed playbook of specific and tactical employee actions and interactions that are required to deliver an exceptional customer service experience. In essence, these are the detailed ‘how-to’ of customer experience excellence delivery that makes the program real for front-line and customer facing employees.

 

7. The program must be underpinned and supported by best of breed technology infrastructure to capture customer knowledge and intelligence, mine customer information, automatically deliver relevant customer information real-time, allow customer to set preferences, etc.

WHY?: Technology will not only become the longitudinal memory for customer insights including needs, wants, preference, etc., but it will also serve to automate the delivery of intelligent customer interactions such that the program doesn’t become burdensome (vs. simple) to operate as it evolves and grows.

 

8. Related to #7 above, the program must be sophisticated in delivering on the various customer segment needs and wants, yet needs to be simple to engage and manage for customers and employees.

WHY?: People do business with companies that make it easy to do business with – fast, efficient, responsive companies are sought out more than those that are not. In addition, a program that is difficult to administer is at risk for execution errors by employees or by them short-cutting or avoiding the process.

 

9. The organizational culture at all levels must be created that is supportive of the customer experience excellence standards and all incentives must be aligned to encourage employee excellence in its delivery.

WHY?: Research by Gallup shows that work units in the top quartile in employee engagement outperformed bottom-quartile units by 10% on customer ratings, 22% in profitability, and 21% in productivity — and they experienced lower employee turnover, absenteeism, and safety incidents. In other words, it is difficult (impossible?) to deliver excellence customer service without a great corporate culture.  Original Source:  https://www.gallup.com/workplace/236927/employee-engagement-drives-growth.aspx

 

10. The CEE program must be viewed holistically that takes into consideration people, process, technology and culture (PPTC) capabilities as well as all customer segments across all customer preferred channels of interaction.

WHY?: Pure and simple, a great program is implemented with the full (holistic) spectrum of capabilities considered. Focusing on only 1 or 2 of the 3 pillars of CEE (refer to CEEF framework chart below) will sub-optimize its performance.

Symptoms of a Poor Customer Experience

Symptoms of a Poor Customer Experience

While the previous chart pointed to benefits of implementing customer experience excellence, the above chart, while self-explanatory, highlights a few negative impacts of having poor customer experience delivery. In addition to the above, companies that have a poor customer experience also experience the following:

  1. Market share erosion

  2. Declining customer acquisition success

  3. Declining cross-sell and up-sell success

  4. Customer social sentiment that is increasingly negative across an array of social media platforms

The above chart illustrates that in order to effectively gauge the effectiveness of your current customer experience program, you must be measuring across a number of company areas to determine what is working and what is not. Sound familiar?   2) ” A set of balanced scorecard metrics must be developed to measure the ongoing effectiveness of the program so that it may be continuously improved. A heavy emphasis must be placed on customer ratings of the program and associated service delivery.”

Best Practice Customer Experience Framework

Best Practice Customer Experience Framework

The above chart is a best practice Customer Experience Framework that depicts the major pillars that enable customer experience excellence.

  1. The first pillar is the customer knowledge and insights that enable you to provide the customer with the right interaction at the right time and by the right channel of their choice.

  2. The 2nd is a robust customer strategy and delivery model to define the desired level of customer service delivery and how you will enable it.

  3. The 3rd and last is the development of a customer oriented culture to nurture and expand customer relationships that not only provides a differentiated customer experience, but also drives increased sales, loyalty and spend per customer.

I use this chart above, along with others, to develop the customer strategy, vision, policies, etc. Sound familiar?  5) Customer Excellence procedures, policies (SOPs) and standards must be developed that are in total alignment with the over developed customer strategy.

Key Deliverables in the Development of a  Best Practice Customer Experience

Key Deliverables in the Development of a Best Practice Customer Experience

The above chart is the waterfall development method I use to develop customer experience excellence. With few exceptions, each of the top level items must be mostly developed before the following lower level items can be developed.

For example, the top level CEE program vision, strategy and goals must be developed first, to be used as a guide for the development of its supporting standards, policy and guidelines.  All of these customer experience excellence deliverables align with the ten (10) best practices we covered at the beginning of this article.

Best Practice Customer Experience Development Approach & Methodology

Best Practice Customer Experience Development Approach & Methodology

Above are the depicted major work-streams I employ to develop customer experience excellence for my clients. These major work-streams align to delivering the top 10 CEE best practices as well as my waterfall deliverable development schema in the previous chart.

Summary:

In summary, improving your customer experience delivery doesn’t have to cost a great deal, can start slowly, can now be measured and the return on investment is generally in multiples (2-10x+) of the cost. Without a delivering an exceptional customer experience (via an exceptional corporate culture),  you will be unable to acquire and retain great employees, will have more costly sales and marketing efforts and your customers will not be acquired as quickly or remain as loyal (vs. competitors). With all this being true, do you really have any excuse at all remaining not to actively work on ensuring you are delivering the best company customer experience possible as to create competitive marketplace advantage?!

If your organization is seeking experienced assistance in measuring and improving your customer service and customer experience, then give me a call or e-mail me at 518-339-5857 or stevenjeffes@gmail.com

Lastly, this is just one article of 40+ total I have written on customer strategy, customer experience, CRM, marketing, product management, competitive intelligence, corporate innovation, change management – all of which I have significant experience in delivering for Fortune 500 companies.  In fact, my blog is now followed by nearly 121,000 world-wide and was just named one of the top 100 CRM blogs on the planet by Feedspot, alongside Salesforce.com, Infor, Microsoft, SAS, etc. – Reference this informative site here: https://blog.feedspot.com/crm_blogs/

Developing an Enterprise Level Customer Relationship Management (CRM) Strategy & Road-map

Enterprise CRM Strategy Development Framework

Enterprise Customer & CRM Strategy Development Framework

The chart above is a framework I have used to guide the development and future operational model of a customer relationship management (CRM) strategy and roadmap for a large multi-national company. This framework is comprised of the following major components that must be taken into account in developing a customer strategy & roadmap (from bottom to top) :

  1. Major customer segments that exist comprise the foundation of the framework. These need to be taken into consideration as the major customer stakeholders that either are in place, or need to be defined as part of the future-state strategy.

  2. The customer channel content that exists and will be needed moving forward once the major customer segments have been determined.

  3. The partner matrix and partner relationship model that exists and will be needed – types of partners, partner distribution model, partner communications methods, partner acquisition model, etc.

  4. The current and future customer touch-points specifications – usage, volume, delivery method, cost structure, etc.

  5. Major customer, partner and market insights that exist and that are needed in the future.

  6. The current and needed future state model for customer facing operations and capabilities that exist within each functional area.

  7. The existing and future engagement model that will operate through the customer channels, utilizing the information/insights and channel and customer specific content, etc. – cost structure, automation, key strategies in each (sell in service, one and done customer service, etc.)

  8. Finally the top of the pyramid, the customer and CRM strategy that drives all other structure capabilities and operating models as defined through a series of workshops shown later in this article.

graphic2

High Level Enterprise CRM Transformation Approach

The chart above is a depiction of the transformation approach I have used to guide the development of the actual CRM strategy shown on the top of the pyramid from the last chart. In this chart we have the following:

  1. Left side, “Synthesize Insights” – Depicts sample insights that need to be gathered and synthesized on the left in order to determine a realistic future state customer strategy and roadmap.

  2. Top, under “CRM Transformation Approach” – The delivery, governance and oversight structures that must oversee and manage the delivery of a final customer strategy and 5+ year roadmap.

  3. Middle, under “CRM Transformation Approach” – The major program phases in the delivery of the future state customer strategy and roadmap as well as the major goals and deliverables from each phase.

  4. Right side, under “Net Positive Impact” – The major positive impacts from the development of a customer strategy and 5+ year roadmap stated in both quantitative measures (via a business case) and qualitative dimensions.

 

CRM Opportunity Assessment Process

CRM Opportunity Assessment Process

The chart above is the high level process (level 0) I have used to assess the CRM (future-state) opportunities at a large multi-national company. While I start with this CRM process flow to accelerate the delivery of a customer strategy and roadmap, each is tailored to each client situation and set of requirements. This also includes a detailed approach and plan for conducting a series of “CRM Opportunity Assessment Workshops” attended by key executives and stakeholders whereby many of the components listed in the above flowchart are actually defined.

 “To Be”, Future-State CRM Strategy Definition

“To Be”, Future-State CRM Strategy Definition

The chart above details a small sample of the steps details that exist within the “CRM Opportunity Assessment” processes step. In this particular example, we must define the major customer strategies we want moving forward as well as the supporting details to successfully deliver the strategy:

  1. Performance metrics that will be put in place to monitor the success of the overall program once the customer/CRM strategy is implemented

  2. Budget & governance structure that will manage both the implementation of the strategy as well its ongoing operation of the program

  3. Program success criteria for the strategy to be considered a success

  4. Specific programs and projects to deliver the strategy

  5. The stated strategic goals for each defined customer strategy

CRM Strategy & Roadmap Development Process

CRM Strategy & Roadmap Development Process

The chart above is the high level process (level 0) I have used to develop a future operational model of a customer relationship management (CRM) strategy and roadmap for a large multi-national company. I full project plan that includes task dependencies, project critical path, logical sequencing of project tasks, resourcing plan, etc. accompanies the above chart during an actual client project. This also includes a detailed approach and plan for conducting a series of “CRM Definition Workshops” attended by key executives and stakeholders that provide direct input into the future-state CRM strategy & road-map.

Strategic CRM Goals Definition Process

Strategic CRM Goals Definition Process

The chart above highlights the details associated with developing the specific and measurable objectives for a future state CRM & customer strategy. These details are highly variable and need to be tailored based on the specifics associated with the client’s market & requirements, budget, competition, market/customer gaps, etc.

This is just one article of 40+ total I have written on Customer strategy, CRM, marketing, product management, competitive intelligence, corporate innovation, change management – all of which I have significant experience in delivering for Fortune 500 companies.

In fact, my blog is now followed by nearly 160,000 world-wide and was just named one of the top 100 CRM blogs on the planet by Feedspot, alongside Salesforce.com, Infor, Microsoft, SAS, etc. – Reference this informative site here: https://blog.feedspot.com/crm_blogs/

 

The Marketing ROI Calculator – The Simple & Proven Formula for Calculating True Marketing Cost, Value and ROI

Put Your Marketing Team & Your Marketers on Notice! Your company will start using this proven formula to measure true marketing ROI !!

Introducing…The Marketing ROI Calculator – The Simple & Proven Formula for Calculating True Marketing Cost, Value and ROI !!

  1. Having trouble figuring out the value of your marketing efforts?

  2. Need a proven formula to calculate true marketing ROI?

  3. Want to continue marketing efforts that work and provide net income and abandon those efforts that are a net loss?

  4. Seeking to implement an improved world-class and six sigma marketing process to increase your marketing effectiveness while decreasing your marketing costs?

If you answered “yes” to any one of these questions, read the rest of this blog that delivers the true marketing ROI formula to help develop measured ROI driven marketing!

{Note: this is just one of many formulas variants I have developed for calculating marketing ROI and the actual one to implement will depend on the type of marketing you are performing}. 
The Marketing ROI Dilemma

The Marketing ROI Dilemma

Before we get into the main marketing ROI formula, I want to point out a relevant quote and sentiment from John Wanamaker who was an American merchant, civic and political figure, considered by some to be a pioneer in advertising and marketing. To that end and related to this topic, John Wanamaker once had a famous quote to illustrate his frustration with the inability to determine if his marketing and advertising spend was truly effective and if it was producing the expected ROI. This famous quote is as follows:

John Wanamaker & His Famous Marketing & Advertising Quote

John Wanamaker & His Famous Marketing & Advertising Quote

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The following blog content is focused on introducing the proven formula, in use by some advanced marketing companies across the US, for calculating marketing and campaign ROI designed to drive sales orders. The marketing ROI formula will be broken down in sections and then by individual fields. We will cover how the formula is used, what internal six-sigma marketing processes need to be put in place to support the population of this formula and how each field is calculated or derived.

Introducing the Tried and True Full Marketing ROI Formula:

Complete Marketing ROI Formula

Complete Marketing ROI Formula

This formula consists of a pre-launch campaign section illustrated in yellow above and a post-launch campaign section for the entry/update of actual campaign post-launch effectiveness and ROI.

Let’s now review each section in detail as follows: Pre-Launch ROI formula section:

Campaign Pre-Launch Marketing ROI Formula

Campaign Pre-Launch Marketing ROI Formula

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The first column of the pre-launch marketing ROI formula (“Campaign Number”) should be a uniquely identifiable campaign number or code being updated from your marketing automation system and the 2nd column (“Campaign Description”) should be the main goal of the marketing campaign (Customer: acquisition, retention, up-sell, cross-sell, branding or awareness, urgent business alert of crisis communication, etc.).

The 3rd column of the pre-launch marketing ROI formula (“Campaign Quantity”) is the campaign quantity being delivered to your customer audience (i.e. number of e-mails being delivered, mail, texts, etc.)

Campaign Quantity

Marketing Campaign Quantity

The 4th column of the pre-launch marketing ROI formula (“Materials and Labor Cost”) is critical to the ROI formula and will likely require a few marketing process changes, as well as IT system changes. A true six-sigma structured process marketing environment will require your company to track all labor hours and materials cost associated with the planning, development and launching of any and all campaigns. This requires that you create a work breakdown structure (WBS) to appropriately track hours and materials associated with each campaign you conduct. By doing this you will finally have the fully loaded cost for each campaign such as creative hours spent, strategy planning time, cost of materials (for direct mail, outsourced text or e-mail, etc.). The cost shown is the per-unit cost to send the campaign or 34 cents for each delivered campaign item.

Marketing Materials & Labor Cost

Marketing Materials & Labor Cost

The 5th column of the pre-launch marketing ROI formula (“Total Mktg. Cost”) is merely the unit cost expanded out to the total cost of the campaign (10,000 x. 34). If your delivered item is a single unit campaign quantity like web landing page, your campaign cost simply becomes the total labor hours used to develop this page and you can skip both columns 3 & 5.

Total Marketing Cost

Total Marketing Cost

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The 6th and last column of the pre-launch marketing ROI formula (“Plan Campaign Dates”) is the expected campaign execution dates that the orders (shown in the post campaign section) will be tracked against this particular campaign.

Planned Campaign Dates

Planned Campaign Dates (that orders will be tracked against)

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Let’s now review the last section of the marketing ROI formula in detail as follows: Post-Launch ROI formula section:

Campaign Post-Launch Formula

Campaign Post-Launch Formula

The first column is the actual campaign dates that the campaign executed in order to compare it to the planned campaign dates

To obtain the 2nd column of the post-launch marketing ROI formula (“# of Orders”) will require your company to develop the process of direct campaign attribution so that when customers order an item based on a campaign, those customers are incented to provide the campaign code (e.g. in exchange for a small discount) they viewed that drove them to order the item. By making this marketing process change, you have a direct way to track which campaigns drove which orders, by how much, etc. Car rental companies are excellent at this since every coupon is tracked with an encoded code such that they know exactly where the coupon was obtained, what campaign it was associated with, etc.

Number of Orders Associated with Campaign

# of Orders

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The 3rd column of the post launch marketing ROI formula (“Actual RR %”) is the redemption rate (RR) or simply the number of orders driven by the campaign, divided by the campaign quantity launched (column 3 of the pre-launch form).

Rate of Return for Campaign

Rate of Return

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The 4th column of the post launch marketing ROI formula (“Avg. Order Sold”) is the average order sold which is populated by your order system and is simply the total value of all orders divided by the number of orders. In this case the total of all orders is equal $2,175 (this becomes the 4th column, “Bookings”) divided by 15 orders = $145 average per order.

Average Order Sold (AOS) $$

Average Order Sold $$

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The 5th column of the post launch marketing ROI formula (“Bookings $$”) is simply the number of orders multiplied by the average $ per order or, in this case, 15 orders x $145 per average order = $2,175.

Bookings $ from Orders

Bookings $ from Orders

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The 6th column of the post launch marketing ROI formula is the Average Cost of Goods Sold (“COGS %”). In this case, the company has calculated that, historically, the cost of an average order is approximately 30% of an orders value. Another way to state this is that average margins are 70% and 30% is the cost to produce an order.

Cost of Goods Sold (Avg.) %

Cost of Goods Sold (Avg.) %

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The 7th column of the post launch marketing ROI formula (“COGS $”) is simply the COGS sold percentage (30%) multiplied by the total bookings $$ value ($2,175 x 30%) = $652.50

Cost of Goods $$

Cost of Goods $$

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The 8th column of the post launch marketing ROI formula (“Contribution $$”) is where we finally calculate the total ROI of the campaign via this simple 2 step process:

  1. Add the cost of the labor to produce the campaign as calculated in column 5 of the pre-launch formula to the cost to produce the orders that the campaign specifically drove.

  2. Subtract the total value of orders from #1 above.

Using the example shown in the full marketing ROI formula above, we first add the pre-launch materials and labor cost of $3,400 to a Cost Of Goods Sold (COGS) cost of $652.50 = ($3,400 + 652.50) = $4,052.50 We then subtract this total campaign cost from total bookings value of $2,175 = -$1,877.50.

Contribution $$

Contribution $$

The 9th and final column of the post launch marketing ROI formula (“Cost Per Order”) is simply the total number of orders divided by column 7 (“Contribution”) to determine how much each order is benefitting or costing the company when produced. In this case it is a contribution of -$1,877.50 divided by 15 = -$125.17.

Cost Per Order

Cost Per Order

Per the last section, it is important to note that, the greater the number of orders, the more likely the cost will go from a negative contribution to a positive. This occurs because you have generated enough bookings $$ to exceed the cost of the overhead associated with the labor cost to develop and launch the campaign.

Break even for this campaign would be to sell at least 34 orders where the contribution finally turns positive of $51 and the cost per order becomes +$1.50. Selling beyond 34 orders becomes pure profit for the campaign and adds to the bottom line contribution.

This sample below shows the equation using break even orders (“# of Orders”) of 34:

Campaign Break Even Example

Campaign Break Even Example

I have helped numerous companies across the US implement, not only the marketing ROI formula/equation, but an entire world class & six-sigma marketing process that accompanies the ROI formula.   Implementing this six-sigma marketing process includes implementing a marketing and campaign work breakdown structure (WBS), campaign tracking codes, a set of governing marketing performance metrics and benchmarks and much more.

Once this six sigma process architecture is in place, companies are able to implement a full closed loop marketing process and enable full marketing ROI and effectiveness tracking for any/all marketing initiatives and programs as well as the associated marketing campaigns. In addition to those benefits, companies experience an increase their marketing process repeat-ability and predictability as well as automation of numerous manual marketing tasks, leading to decreased marketing costs and decreased marketing cycle time.

The Basic S4 (S**4) Building Blocks to Creating and Implementing an Effective Customer Strategy

4S - Customer Strategy Building Blocks

4S – Customer Strategy Building Blocks

 

The following blog article will succinctly and effectively answer the following questions as related to developing and deploying an effective customer strategy:

  • What are the basic building blocks of an effective customer strategy ecosystem?

  • What is the function of each process in this customer delivery ecosystem?

  • What are the critical questions that must be answered by each function in this ecosystem?

  • How can you develop an effective customer strategy that delivers maximized customer satisfaction simultaneous to maximized profitability?

  • What is the checklist to ensuring your customer strategy and delivery is effective?

The Building Blocks of the Customer Strategy Life Cycle

The Building Blocks of the Customer Strategy Life Cycle

 

Above are the basic building blocks to delivering an effective customer experience.  Each process is designed to work in an ongoing continuous ecosystem (loop) in order to deliver a personalized customer experience that matches the customer’s current and future needs, preferences, etc.

Let’s examine each process and how it supports the overall infrastructure model.

  • Segment – the analogy for the segment process is that the more and differentiated customer knowledge you have, the better you will be able separate customers into unique needs groups in order to deliver a unique experience that they truly value.

  • Separate – Once you have effectively segmented your customers and prospects into unique needs groups, you can then start to separate them in order to deliver differentiated and 1-on-1 treatments that are uniquely valuable to each of those customer segment groups.

  • Satisfy – The next step in the process is to deliver content and programs that deliver value, not only to the needs of the overall segment group, but also delivers value to every customer sub-segment within the overall segment group via program sub-segment delivery structures. This is accomplished by delivering customized 1-to-1 customer programs that effectively leverage the unique customer insights gathered (history, needs, preferences, likes, dislikes, previous pain points, etc.).

  • Stratify – The last step in this foundational process is to develop program that migrate customers from low value segments to ever increasing higher value segments. The goal of this process to increase customer’s overall spend, overall share of wallet with the company and overall loyalty and brand ‘stickiness’ such that migrating to a competitor and defecting becomes increasingly difficult. In addition, the migration of customer to higher value segments should also increase the customer’s brand advocacy ranking such that there is a correlation between higher value customer segments and their likelihood to be more likely brand super-advocates {see blog on this topic titled “Achieving Market Leadership by Effectively Managing Customer Loyalty and Advocacy ” : Achieving Market Leadership by Effectively Managing Customer Loyalty and Advocacy  }

The 4S Customer Capabilities

The 4S Customer Capabilities

 

Critical Questions Answered by Each Process in the Above Customer Delivery Ecosystem:

  • Segment – What specific data elements and insights can we leverage or collect to increase our ability to develop unique customer treatment groups.

  • Separate – Which customer groups does it make sense to develop and deliver differentiated treatment strategies based on profitability models?

  • Satisfy – What are the optimal customer treatment strategies that can simultaneously optimize customer profitability, loyalty, brand advocacy and customer growth objectives?

  • Stratify – How do we deliver a progressive and tiered customer program to differentiate ourselves vs. our competitors and grow our market share?

Summary: You might read many complex articles on what a good customer strategy should be based on, but the above basic foundational building blocks are a simple way to start thinking about your customer ecosystem and what corporate capabilities need to be put in place to deliver effective customer and market success.

Aligning Market Insights & Trends to Customer Strategies & Priorities

Does Your Company Ever Grapple with how to answer the Following Questions related to the market you operate in and your customers?:

  1. What is the size of the potential pool of new customers and which are the best customers to acquire?

  2. Which customers are your most profitable and how do you get other customers to grow and become part of your top ( and most profitable) customer segment group?

  3. What is your current customer share of wallet (SOW) as compared to your competitors and what does driving small incremental increases in your customer SOW do to your overall revenue?

  4. What are the shifting attitudinal and behavior patterns of your customer market and how do you develop a strategy that ‘gets in front of’ these trends?

  5. What are the shifting customer demographics of your marketplace as well as the underlying shift in spending habits

  6. What are the changes in customer preferred marketing channels as well as trends that might impact customer loyalty strategy

Market Insights and Trends Drive Customer Strategy, Programs

Market Insights and Trends Drive Customer Strategy, Programs

 

The above charts illustrate why it is critically important to have clear and accurate insights into your new customer market potential/pool as well as the current customer base and their share of wallet.

The chart above (left side) details the trends for new customers by segment as compared to current customers.

The chart above (right side) illustrates which customers drive the current percentage of revenue in order to understand how customer priorities and strategy should be defined.

Critical Insights: Top Customer, Top Profitable Customers and Customer Share of Wallet vs. Competitors

Critical Insights: Top Customer, Top Profitable Customers and Customer Share of Wallet vs. Competitors

Market Spend Insights Can Be Transformational in term of goal setting

The above graphic illustrates how share of wallet changes drive bottom line revenue as well as converting customers into more loyal top customers.

Customer Attitudinal Trends Insights Are Critical to Customer Strategy

Customer Attitudinal Trends Insights Are Critical to Customer Strategy

Understanding your market & customer behavior insights is crucial to your company’s survival

The above graphic demonstrates a deep understanding in the shifting attitudinal and behavior patterns of the customer market

Customer Market Buying Power Insights are Crucial For Developing a Coherent Customer Strategy

Customer Market Buying Power Insights are Crucial For Developing a Coherent Customer Strategy

The above chart illustrates a company capability to understand shifting demographics as well as the underlining shift in spending habits per demographic group

Understanding Key Customer Behavior & Preferences is a Customer Strategy Imperrative

Understanding Key Customer Behavior & Preferences is a Customer Strategy Imperrative

The above chart illustrates a company capability to understand the changes in marketing channels as well as trends that might impact customer loyalty strategy

Customer Strategy: An Alignment of All Customer & Market Insights to Maximize Market Dominance & Profitability

Customer Strategy: An Alignment of All Customer & Market Insights to Maximize Market Dominance & Profitability

Once Customer and Market Insights are fully embraced, an Effective Customer Strategy can be developed that includes optimizing market channel selection, as well as contact and loyalty strategy program components

Blog Summary: In order to achieve the above insights, your company must develop and deploy the following strategic capabilities and delivery programs:

  1. Market sizing & trend insights

  2. Customer revenue and profitability insights analysis

  3. Customer share of wallet and competitor spend insights delivery capability

  4. Market trend & consumer attitudinal and behavior change longitudinal analysis

  5. 360° customer needs and preference cultivation that enables a personalized customer experience strategy and delivery (i.e. preference portal customer selection of preferred channels, content types, offer types, frequency of content delivery by content type.)

Below is a list of companies where I have helped develop these programs and are considered world-class in these practices:

  • Johnson & Johnson

  • Capital One

  • Amazon

  • American Express

  • Kelloggs

Turn Customer Feedback & Complaints into Market Leadership, Dominance, Max Profitability

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Turn Customer Insights & Complaints into Market Leadership, Dominance, Max Profitability

Research has shown that customers are willing to donate their time (approx. 5-10 hours per week) to become a company and brand partner to help your company grow and become more successful

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Key Customer Questions to Grow Your Market Share, Profitability

If you don’t ask your customers for insights, they will share them with someone else in the form of negative feedback, complaining, etc. which will erode your perception in the marketplace

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Golden Questions to Win New Customer, Expand Your Business with New Products & Services

Customers are your best source for insights to help grow and improve your business – if you don’t ask, then you are ignoring valuable feedback that your competitors potentially could exploit to your detriment

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Customer Complaints Can Be Turned Into Gold with the Right Approach

Treat Customer Complaints not as annoyances but rather as gifts to the company and brand(s)

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Transform Customer Complaints into Company Expansion Plans and Customers into Brand Advocates

A carefully constructed customer-partner system will simultaneously cultivate great customer business expansion ideas as well as customer advocates and partners (Research has shown that, by enabling customers to provide continuous feedback and insights, customer longer-term loyalty has correspondingly increased)

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