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Customer Insights
that Matter


        Patrick Barwise
        Emeritus Professor of
        Management and Marketing
        London Business School
Customer Insights that Matter




www.beyond-the-familiar.com
Easy to Say, Hard to Do

Marketing is not a specialized business
activity…it is the whole enterprise seen
from the customer’s point of view.



                              Peter Drucker
                              The Practice of Management, 1954



www.beyond-the-familiar.com
O wad some Power the giftie gie us
       To see oursels as ithers see us!
                              Robbie Burns, Scotsman
                                            1759-1796




www.beyond-the-familiar.com
Sustained Profitable Growth
Percent of large companies 1990-2004


Any 5 consecutive years                                     24%

Any 10 consecutive years                                    5%

All 15 years                                                1%




Source: Chakravarthy and Lorange, Profit or Growth?, 2007
www.beyond-the-familiar.com
Back to Basics

                               Customer
                                Promise




          Innovation             Open        Customer
          Beyond the          Organization     Trust
            Familiar




                               Continuous
                              Improvement


www.beyond-the-familiar.com
65 Years of Market-Driving
Incremental 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 support

www.beyond-the-familiar.com
Customer Insights for
Continuing Relevance

• New and old, high-tech and high-touch
• Formal market research and other sources
• Main new trend: DIY immersive research




www.beyond-the-familiar.com
Customer Focus is a Leadership Issue




www.beyond-the-familiar.com
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 Email



www.beyond-the-familiar.com
Tide Knows Fabrics Best




www.beyond-the-familiar.com
You’re Not as Open as You Think

Boss:                         “Why is Janet leaving?”
Colleague:                    “She’s been unhappy for months”
Boss:                         “Why didn’t she tell me?”
Colleague:                    “She tried”




www.beyond-the-familiar.com
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
                                                                                     dissatisfied
Source: U.S. Office of Consumer Affairs
www.beyond-the-familiar.com
60 Years of Rejecting
Unwelcome Messages

1946: Drucker’s The Concept of the Corporation
An attack on the company, as hostile as any
mounted by the left.

2007
I found GM impossible to deal with. They had their
own fixed ideas and always thought they were right.
                                                 Wally Olins
                                                  Brand Guru

www.beyond-the-familiar.com
Opening Up the Organization

                               Customer
                                Promise




          Innovation             Open        Customer
          Beyond the          Organization     Trust
            Familiar




                               Continuous
                              Improvement


www.beyond-the-familiar.com
Five Questions for Your Company
1. 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?

www.beyond-the-familiar.com
An Endorsement from
Last 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
                                                                      WPP
www.beyond-the-familiar.com

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Customer Insights that Matter

  • 1.
  • 2. Customer Insights that Matter Patrick Barwise Emeritus Professor of Management and Marketing London Business School
  • 3. Customer Insights that Matter www.beyond-the-familiar.com
  • 4. Easy to Say, Hard to Do Marketing is not a specialized business activity…it is the whole enterprise seen from the customer’s point of view. Peter Drucker The Practice of Management, 1954 www.beyond-the-familiar.com
  • 5. O wad some Power the giftie gie us To see oursels as ithers see us! Robbie Burns, Scotsman 1759-1796 www.beyond-the-familiar.com
  • 6. Sustained Profitable Growth Percent of large companies 1990-2004 Any 5 consecutive years 24% Any 10 consecutive years 5% All 15 years 1% Source: Chakravarthy and Lorange, Profit or Growth?, 2007 www.beyond-the-familiar.com
  • 7. Back to Basics Customer Promise Innovation Open Customer Beyond the Organization Trust Familiar Continuous Improvement www.beyond-the-familiar.com
  • 8. 65 Years of Market-Driving Incremental 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 support www.beyond-the-familiar.com
  • 9. Customer Insights for Continuing Relevance • New and old, high-tech and high-touch • Formal market research and other sources • Main new trend: DIY immersive research www.beyond-the-familiar.com
  • 10. Customer Focus is a Leadership Issue www.beyond-the-familiar.com
  • 11. 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 Email www.beyond-the-familiar.com
  • 12. Tide Knows Fabrics Best www.beyond-the-familiar.com
  • 13. You’re Not as Open as You Think Boss: “Why is Janet leaving?” Colleague: “She’s been unhappy for months” Boss: “Why didn’t she tell me?” Colleague: “She tried” www.beyond-the-familiar.com
  • 14. 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 dissatisfied Source: U.S. Office of Consumer Affairs www.beyond-the-familiar.com
  • 15. 60 Years of Rejecting Unwelcome Messages 1946: Drucker’s The Concept of the Corporation An attack on the company, as hostile as any mounted by the left. 2007 I found GM impossible to deal with. They had their own fixed ideas and always thought they were right. Wally Olins Brand Guru www.beyond-the-familiar.com
  • 16. Opening Up the Organization Customer Promise Innovation Open Customer Beyond the Organization Trust Familiar Continuous Improvement www.beyond-the-familiar.com
  • 17. Five Questions for Your Company 1. 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? www.beyond-the-familiar.com
  • 18. An Endorsement from Last 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 WPP www.beyond-the-familiar.com