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No customer,
no glory
It’s all about connecting with
people
Who is the customer?
A customer is not a number
A customer is not a target group
A customer is the person you are working
for. The one you serve. He is the user of
your products. He knows the best how to
use your products and make them even
better. He talks about you and your
products. He experiences your services.
He should be feeling important,
welcome, embraced, connected,
recognized. He is the one why you are in
business. Without him you’ll be out of that.
But…
Do you know your customer? Do you
understand his needs, wishes, plans,
values? Do you know what your
customer expects from you, and your
products or services? And are you
delivering at these expectations? Or
even beyond them? Do you offer him the
best value possible? Are you consistently
delivering in a way that satisfies and
even surprises your customer?
And…

Do you think that your customer will
give the same answers to those
questions as you did?
Many companies spend
most of their marketing
budgets in lead
generation/new
customer acquisition
and invest 20% or less in
their own customers
That’s an unwise policy
That’s an unwise policy
Because 80% of revenues
come from customer retention
Treat your customers well, and they
will stay with you (and will come
back to you at the next purchase)
Surprise your customers, and they
will share their surprise with their
friends (and will convince them to
become a ‘fan’ as well)
So,
find ways to genuinely surprise your
customers…
… creating WOW   MOMENTS
In our competitive, over-communicated
society, there’s more to deepen
customer relationships than delivering
operational excellence
Managing     Managing
efficiency   affection
It’s about
  Being interested in human beings, not in
   figures, numbers etc.
  Spending time and money to get to know
   the users of your products
  Continuously engaging with real people
  Willing to build a customer-centric business
  Delivering lasting moments on top of
   valuable products and services
‘A deep understanding of the users of
your products and services, leads to
new perspectives which, in turn, spawn
novel solutions’                  d.school
Research shows:
Most customers will put service ahead
of price - if you give them the chance




                                BIGresearch
Unfortunately 79% of business leaders
have only a generalized or superficial/
absent understanding of their
customers…




                                IBM research
And 60% of marketers
doubt if they can identify their
loyal customers…




                                   Acxiom/Loyalty360
And 60% of marketers
doubt if they can identify their
loyal customers…
let alone their customers’
needs and expectations
Do you know what your customers
EXPECT from your products and
services?
Do you know what your customers
EXPECT from your products and
services?

90% of businesses don’t



                           Smart Advantage
Reasons why:
  no direct interactions with customers
  unwillingness to ask about
   expectations
  unpreparedness in addressing them



                                Pheng & Nguan
When decision makers do not fully
understand customer’s expectations,
they may cause a chain of bad
decisions and suboptimal resource
allocations that result in poor service
quality

                                 Gap analyses
Management
                                                       perceptions of
                                                  customers’ expectations     •  Absence of customer
                                                                                 driven standards
                                                                              •  Inadequate service
                                                                 gap 2           leadership
ORGANISATION           •  Ineffective
                                                                              •  Poor service design

                         management of
                         customer expectations         Translation of
                       •  Overpromising           perceptions into services                                          •  Inadequate market
                                                                                                                       research orientation
                       •  Inadequate horizontal                               •  Deficiencies of
                         communications            quality specifications                                            •  Lack of upward
                                                                                human resource
                                                                                policies
                                                                                                        gap 1          communication
                                                                                                                     •  Insufficient
                                                                              •  Failure to match
                                                                 gap 3          supply and demand                      relationship focus
                                        gap 4
        Communications with                                                   •  Customers not
                                                                                fulfilling roles
           customers                              Service/product delivery


                                                           Actual
                                                      service/product


                                                         Perceived
                        Closing this                      service/
                        customer gap will:
                        •  enhance customer               product
                          satisfaction
                        •  enhance customer
                          loyalty                    gap 5
                        •  develop the
                          lifetime value of
                          the customer
CUSTOMERS                                                Expected
                                                          service/
                                                          product


                                                      Actual personal
            Past experiences                         problems, needs &                              Worth of mouth
                                                           wishes
A customer experience starts with a
personal question, need or wish;
which solution is worth paying for
But why should people choose YOUR
COMPANY to solve their problems?
Why should consumers spend their
most valuable and scarce resources
- money, time and attention - on you?
You only EARN these by meeting the
needs of your customers surprisingly
well
HOW?
By putting your customers in the heart
of your organization
‘In high performing organizations,
everything starts and ends with the
customer. This is a radical shift from
organizations whose business design
puts customers as the end-receiver of
the chain.’


                                Ken Blanchard
Marketers might think that putting
their customers in the heart of their
organization equals CRM, database
marketing or marketing intelligence
But having a customer-centric
organization is not the same as:
  Having an up-to-date client database
  Using profiles and scenarios of your
   average client or target group
  Asking feedback from clients when
   product modifications have been
   developed
Customer-centricity means before
making any decision, find out how that
decision will have impact on your
customers
It means watching at and listening to
real people when you have a business
or product idea or assumption;
focusing on your customers’ needs,
whishes and perspectives
If you do so, you’ll let real customers
involve in the way your products and
services are conceived, designed,
delivered and experienced
But how do you get in contact, and
keep in touch with your customers?
And how can this contact be
effective?
THE GOOD NEWS:
your customers are willing to help you
Nowadays, consumers increasingly
want to participate in the organizations
they feel connected with
Rather than receiving e-mails, news
letters or push-tweets consumers want
to engage in debate, co-create, share
experiences and stories, and build
engaging relationships with organiza-
tions that are truly looking for customer
insights to make their customers happy
Especially with organizations that are
reliable, value sustainability, adopt
mindful consumption, and have the
drive to innovate, and are able to
make a difference
It’s a fact:
Organizations that work closely with
their customers and end-users, design
and develop better, more relevant and
more consistent high-impact solutions
for people’s problems, needs or wishes
So, empower your organization to
engage with customers to design
sustainable products and excellent
service which creates lasting
interactions and experiences
Most executives believe that customer
engagement is extremely important to
their business. Nearly 90% say that
customer relationships are very
important to the success of their
business


                              The Economist
More important; companies with
engaged customers enjoy: improved
customer loyalty (80%), increased
revenue (76%), and increased profits
(75%)



                              The Economist
REMEMBER,
Customer engagement isn’t realized by
a set of isolated interactions. It’s about
cooperation, involvement, consultation
and dialogue. You have to recognize that
the interactions with your customers are
based on an ongoing dialogue of equals
to nurture trust and form meaningful
relationships
These interactions create valuable
experiences and outcomes for your
customers
It all starts and ends with connecting
with your customers
Inge Keizer
Email: inge.keizer@yabber.nl
Twitter: @ingejk
March 18, 2012

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No Customer, No Glory - about customer relationships and customer-centric business

  • 1. No customer, no glory It’s all about connecting with people
  • 2. Who is the customer?
  • 3. A customer is not a number
  • 4. A customer is not a target group
  • 5. A customer is the person you are working for. The one you serve. He is the user of your products. He knows the best how to use your products and make them even better. He talks about you and your products. He experiences your services. He should be feeling important, welcome, embraced, connected, recognized. He is the one why you are in business. Without him you’ll be out of that.
  • 6. But… Do you know your customer? Do you understand his needs, wishes, plans, values? Do you know what your customer expects from you, and your products or services? And are you delivering at these expectations? Or even beyond them? Do you offer him the best value possible? Are you consistently delivering in a way that satisfies and even surprises your customer?
  • 7. And… Do you think that your customer will give the same answers to those questions as you did?
  • 8. Many companies spend most of their marketing budgets in lead generation/new customer acquisition and invest 20% or less in their own customers
  • 10. That’s an unwise policy Because 80% of revenues come from customer retention
  • 11. Treat your customers well, and they will stay with you (and will come back to you at the next purchase)
  • 12. Surprise your customers, and they will share their surprise with their friends (and will convince them to become a ‘fan’ as well)
  • 13. So, find ways to genuinely surprise your customers…
  • 14. … creating WOW MOMENTS
  • 15.
  • 16. In our competitive, over-communicated society, there’s more to deepen customer relationships than delivering operational excellence
  • 17. Managing Managing efficiency affection
  • 18. It’s about   Being interested in human beings, not in figures, numbers etc.   Spending time and money to get to know the users of your products   Continuously engaging with real people   Willing to build a customer-centric business   Delivering lasting moments on top of valuable products and services
  • 19. ‘A deep understanding of the users of your products and services, leads to new perspectives which, in turn, spawn novel solutions’ d.school
  • 20. Research shows: Most customers will put service ahead of price - if you give them the chance BIGresearch
  • 21. Unfortunately 79% of business leaders have only a generalized or superficial/ absent understanding of their customers… IBM research
  • 22. And 60% of marketers doubt if they can identify their loyal customers… Acxiom/Loyalty360
  • 23. And 60% of marketers doubt if they can identify their loyal customers… let alone their customers’ needs and expectations
  • 24. Do you know what your customers EXPECT from your products and services?
  • 25. Do you know what your customers EXPECT from your products and services? 90% of businesses don’t Smart Advantage
  • 26. Reasons why:   no direct interactions with customers   unwillingness to ask about expectations   unpreparedness in addressing them Pheng & Nguan
  • 27. When decision makers do not fully understand customer’s expectations, they may cause a chain of bad decisions and suboptimal resource allocations that result in poor service quality Gap analyses
  • 28. Management perceptions of customers’ expectations •  Absence of customer driven standards •  Inadequate service gap 2 leadership ORGANISATION •  Ineffective •  Poor service design management of customer expectations Translation of •  Overpromising perceptions into services •  Inadequate market research orientation •  Inadequate horizontal •  Deficiencies of communications quality specifications •  Lack of upward human resource policies gap 1 communication •  Insufficient •  Failure to match gap 3 supply and demand relationship focus gap 4 Communications with •  Customers not fulfilling roles customers Service/product delivery Actual service/product Perceived Closing this service/ customer gap will: •  enhance customer product satisfaction •  enhance customer loyalty gap 5 •  develop the lifetime value of the customer CUSTOMERS Expected service/ product Actual personal Past experiences problems, needs & Worth of mouth wishes
  • 29. A customer experience starts with a personal question, need or wish; which solution is worth paying for
  • 30. But why should people choose YOUR COMPANY to solve their problems?
  • 31. Why should consumers spend their most valuable and scarce resources - money, time and attention - on you?
  • 32. You only EARN these by meeting the needs of your customers surprisingly well
  • 33. HOW? By putting your customers in the heart of your organization
  • 34. ‘In high performing organizations, everything starts and ends with the customer. This is a radical shift from organizations whose business design puts customers as the end-receiver of the chain.’ Ken Blanchard
  • 35. Marketers might think that putting their customers in the heart of their organization equals CRM, database marketing or marketing intelligence
  • 36. But having a customer-centric organization is not the same as:   Having an up-to-date client database   Using profiles and scenarios of your average client or target group   Asking feedback from clients when product modifications have been developed
  • 37. Customer-centricity means before making any decision, find out how that decision will have impact on your customers
  • 38. It means watching at and listening to real people when you have a business or product idea or assumption; focusing on your customers’ needs, whishes and perspectives
  • 39. If you do so, you’ll let real customers involve in the way your products and services are conceived, designed, delivered and experienced
  • 40. But how do you get in contact, and keep in touch with your customers? And how can this contact be effective?
  • 41. THE GOOD NEWS: your customers are willing to help you
  • 42. Nowadays, consumers increasingly want to participate in the organizations they feel connected with
  • 43. Rather than receiving e-mails, news letters or push-tweets consumers want to engage in debate, co-create, share experiences and stories, and build engaging relationships with organiza- tions that are truly looking for customer insights to make their customers happy
  • 44. Especially with organizations that are reliable, value sustainability, adopt mindful consumption, and have the drive to innovate, and are able to make a difference
  • 45. It’s a fact: Organizations that work closely with their customers and end-users, design and develop better, more relevant and more consistent high-impact solutions for people’s problems, needs or wishes
  • 46. So, empower your organization to engage with customers to design sustainable products and excellent service which creates lasting interactions and experiences
  • 47. Most executives believe that customer engagement is extremely important to their business. Nearly 90% say that customer relationships are very important to the success of their business The Economist
  • 48. More important; companies with engaged customers enjoy: improved customer loyalty (80%), increased revenue (76%), and increased profits (75%) The Economist
  • 49. REMEMBER, Customer engagement isn’t realized by a set of isolated interactions. It’s about cooperation, involvement, consultation and dialogue. You have to recognize that the interactions with your customers are based on an ongoing dialogue of equals to nurture trust and form meaningful relationships
  • 50. These interactions create valuable experiences and outcomes for your customers
  • 51. It all starts and ends with connecting with your customers