Customer Experience Management: The Key to Continued Business Growth and Success 110910

VIPdesk Webinar Series

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Customer Experience Management:

The Key to Continued Business Growth

and Success

Presented by:

Joel WaradyPrincipalJoel Warady Group

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Today’s Agenda

• The importance of a customer-centric organization

• The influence of the customer experience on consumer wallet and market share

• How to create greater loyalty within your customer base

• Knowing all of your customer touch points, and their effect on customer value

• The role of influencers, advocates, and connectors in Web 2.0 world

• The difference between customer experience and customer relationship marketing, and the pitfalls of both

• The 10 Commandments of Creating Customers for Life


About Joel

Joel WaradyPrincipalJoel Warady Group


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It’s Tough Out There!

New Marketing & Communicating

Demands

More Than New Ideas

It Demands a Reinvention of the Entire Organization

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“Human Beings are Powered by Emotion, Not by Reason”

How does this change the way you communicate your brand story?

♥

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“Lovemarks are owned by the people who love

them.”—Lovemarks: The Future Beyond Brands, Kevin Roberts

“Trademarks are owned by companies

who create them.”

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You want to create....

Talkable Brands

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Word of

Mouth

Community Familiarity

Transparency EmotionalTies

TrustRelationships

Make Your Ears as Large as Possible

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Don’t Close Your Ears Because You Don’t Like What You Hear

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What Tools are out there?

Understanding the Value of each Relationship and Making Sure each Experience Maximizes that Value

What is CEM?

CEM Cuts Across Companies

• Why Now? Technology!!!– Face to Face– Social Networks– Inbound Marketing– Web Site– E-mail– Key Chain– Wireless– Interactive Kiosks– Interactive TV

What Does CEM Provide a Company?

• It allows for a Central Source of Truth

• Capture Information at Experience Touchpoints– Marketing

– Sales

– Customer Service

Engage the Community

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Engage with Fans

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Give Them Options

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Let Them Talk

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What are the Benefits to the Company?

• Survival!!!

– Higher Service Levels

– Customer Brand Loyalty is fading

– Customers Expect More

– Customers Expect Information Immediately

• Prosperity

– More Wallet Share

• Retention Share

– It costs less than acquiring a customer

Wallet Share vs. Market Share

• More Customers vs. More $ from same customers?– How deep can a company penetrate its current customer

accounts?

• Don’t find customers for your products– Find products for your customer

• Reduce the cost of doing business

• Create greater loyalty with your customers

Provide Quick Responses

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Rules of Engagement • Act more like a host at a party, rather than a police officer.

• The power is in the hands of the community.

• Traditional marketing tactics do not apply.

• Develop your POST methodology.– People, Objectives, Strategy, Tools

• Understand Objectives.– Listening

– Talking

– Energizing

– Supporting

– Embracing

Research Helped Put Word of Mouth on the Map; Now It Is Going Further

Create Customer Evangelists

• Create Customers with Passion– Communicate regularly

– Know your customers well enough to satisfy needs that they can’t even express

– Build a long-term relationship with the customer

• Loyal Customers vs. Evangelists– Loyal customers buy from you on a regular basis

– Evangelists promote by word of mouth

The 5 Whys of Evangelism

• Volunteer sales person is trusted• Independent source• Genuine, free of hype• Value of product or service is personalized for

recipient• Referrer explains the value until it is fully

understood by recipient

A Maniacal Focus on CustomersCustomer Centric Dedication

1. Have you engaged with a customer in the past 30 days?2. Do you gather customer input every month?3. Do you have a customer satisfaction program?4. Is employee compensation tied directly to customer satisfaction?5. Do you know your customer's average lifetime value?6. Does your company focus on creating memorable customer experiences?7. Are employees empowered to do the right things for customers?8. Do you always treat your customers, suppliers, and employees honestly and

fairly?9. Do your customers feel that they are part of your extended corporate family?10. Can you describe in detail your ideal customer?

– 8 – 10 (You get it!)– 4 – 7 (You’re on your way)– 0 – 4 (You need to get customer religion)

Measure the Buzz Quotient

• Happy Customers tell 5-8 people• Unhappy Customers tell 10 – 16 people

• Total # of Customers 100• % of satisfied customers 62% or 62• Satisfied referrals 62 x 5• Total Happy Referrals 300

• % of dissatisfied customers 38% or 38• Dissatisfied referrals 38 x 10• Total Unhappy Referrals 380

What Do Your Customers Think?

• What do current customers say that they love about you?

• What do they say you should specifically improve?

• What do customers value most about your company?

• Do customers recommend you to others?

• What do customers say when they recommend you to others?

• How many ways do your customers have to regularly provide feedback?

Marketing Success in a WOM Era

Key Research Questions

1. What’s your story?…why should consumers talk about your product?

2. Who will tell it?…who are your influencers?

3. How can you facilitate the conversation?…what tools can you create?

4. What’s the impact?…does WOM lead to positive outcomes for my brand?

Does WOM Really Work?• What percent of conversations lead to

purchase intent?

Base: Brand conversations across all categories (n=99,941)Source: TalkTrack®, October 2008 – September 2009

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Some Numbers to Know

Is a WOM Strategy Risky?• What percent of WOM about brands is

positive, and what percent is negative?


To Measure Word of Mouth, Can I Focus Solely on ‘Social Media’?

• What percent of WOM happens on social media, blogs, chatrooms?


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Is WOM Limited to “Hot” New Products Only? What About “Everyday” Brands?

Base: Respondents (Total, n=37,351)*Average daily conversations among those who have discussions about each category. Source: Keller Fay Group’s TalkTrack®, January – December 2008

Consumers Talk About Many Categories

Which Brands Win?• What are the top 5 WOM brands in

America? Which brands get the mostWOM?

1. Coca Cola

2. Verizon

3. Wal-mart

4. Pepsi

5. AT&T

Base: Brand mentions across all categories (n=308,843)Source: TalkTrack®, October 2008 – September 2009

“The Influencer Factor”

• Influencer: – “A person who has a greater than average reach or impact through word of mouth in a

relevant marketplace”

• Influencer marketing: – “When a marketer identifies, seeks out, and engages with influencers in support of a

business objective”

• Three main approaches to identifying influencers and measuring their word of mouth activities

– Surveys that delve into self-reported communication and related behavior– Online buzz monitoring and conversation tracking– Identifying people’s position within a social network

• Beware: People use the term “influencer” in many different ways– From Oprah as “influencer,” to bloggers with large followings, to “the influencer next

door” who is the “go to” person for advice and recommendations

A Few Pointers to Help Guide YouGive participants a reason to ‘Care and to Share’.

Social Media, Community, WOMM are tactics. They fit inside Social Marketing.

Social Marketing is marketing/communications that is collaborative with customers vs. strictly push

Social Marketing must be tied to Social Operations.Social Operations is an operational structure that is open to outside input and willing to react and innovate based on this

feedback

It’s the balance between social marketing and social operations that ensures your brand compass is

pointing in the right direction.

Why Is It Important to Stay Engaged?• 96% of unhappy customers will never tell you• 90% of unhappy customers will never return• For each complaint received, 26 clients actually had

problems, 6 of which are serious• 70% of people with complaints will continue to do

business if the problem is rectified• 68% of customers who stop doing business do so due

to company indifference(Research Institute of America)

What’s it All Mean?

• 3 Ways to Increase Your Business– Increase the # of customers– Increase the revenue with each transaction– Increase the frequency the customer provides you with

revenue• Understand the Lifetime Value of the Customer• Keep Your Customers Ecstatic

– If you lose 20% of your customers each year, you have to add 30% more customers just to get a 10% increase in sales

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The Way We Connect is Changing

The Way We Connect is Changing… Really Fast!

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Creating Customers for Life(The Ten Commandments)

1. Ask customers what they want and give it to them again and again

2. Systems, not smiles3. Underpromise,

overdeliver4. When the customer asks,

the answer is always yes. Period.

5. Fire your inspectors and customer relations department

6. Encourage your customers to tell you what you’re doing wrong

7. Measure everything8. Never charge your

customers for something you would not charge your friends

9. Show people respect10. Borrow, borrow, borrow

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Serving as a seamless extension of leading brands, our innovative

Brand Experience Management Solutions deliver memorable

customer experiences, business insights and actionable intelligence

that generate customer advocacy and drive business growth.


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Thank You For Attending!

Joel Warady

[email protected] – joelwaradyLinkedIn – joelwaradyTwitter - @joelwarady (703) 837-3507

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