Customers Have Been Stretched Too Thin by Company Service Agreements

Our lives are becoming increasingly elastic with businesses who empower our constantly changing lives as our greatest allies. Service relationships used to be agreed upon as strict packages measured in multi-year contracts with hefty cancellation fees. Mobile phones, insurance plans, and cable subscriptions – anything you couldn’t own outright, involved an ironclad, unchangeable contract. But that’s increasingly passé as businesses tap into the natural ebb and flow of consumer and business life. Namely, if you want to use, rent, or borrow something for a month, a week, or just this moment, an arrangement can be made.

Consistently Inconsistent

These new service relationships make sense when looking at how change is the only constant in our lives. A team can be rapidly growing a business one moment, freezing everything to handle a crisis at another, and then be back expanding at a breakneck pace, all in the same quarter. Naturally, they’d like their services to keep pace.

In our own personal lives, we can be traveling nonstop for what feels like weeks, then come back to a monotonous daily commute for two months. While all of this is going on, we always wonder to ourselves why we are paying for what we often don’t need and can’t increase what we need when we do need it. Why am I paying for utilities when I’m never home? Why can’t I increase my data plan for my phone without entering into another agreement? Why can’t I rent the office space I need, instead of these giant spaces that are available? These were all questions that challenged established businesses to change their perspective on service, and modernize their business models through innovation and flexibility.

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I Know What You Did and Which Aisle You Did It In

Loyalty in the Enterprise:  This is Part Two of a series on loyalty best practices in the Enterprise. Read Part One and discover what are the Four Holy Grails of Marketing.

Indoor mapping of consumer location is the latest arrow in the quiver of the retail marketer. When marketers know where things are happening, they can develop interesting patterns for where to put resources like people, signage and information technology. Geolocation also provides the remarkable ability to spot the patterns that predict what to expect from consumers, and can be tested and continuously refined based on effectiveness and cost.

Marketers can also send messages directly to the consumer based on where they are in that very moment. They can say, “Hey, you were in Aisle 5 and showed interest in that new phone—here’s an offer for 10% off.”

Service versus stalking

But where does it start to look like stalking and less like helpful service? The difference between creepy and convenience is found in whether consumers are knowingly and willingly sharing details about their path through the store, mall or city, and how long they spend in any one spot. When they’re not agreeing to this level of data collection and use, the outcome looks much more like Big Brother.

Pretty soon, they’re not agreeing to share their location and turning off that app that tracks their location. Who wants that? [Read more...]

What are the Four Holy Grails of Marketing?

Loyalty in the Enterprise:  This is Part One of a series on loyalty best practices in the Enterprise.  Tune in tomorrow for the next part in the series.

The remarkable amount of change in the consumer world is ushering in a new definition of loyalty. What have long been static programs of points and plastic cards are becoming dynamic, individualized and much, much more engaging.

The old way of simple ledgers and confusing redemption schemes was a fundamentally flawed proposition. Customers were able to accumulate points but struggled to keep track of and gain real value in return. Something had to change.

Enter Customer Loyalty Management

Customer Loyalty Management is the new, holistic approach to driving higher levels of loyalty to brands. It puts a focus on what have emerged as the four “pillars” of loyalty:

  • Loyalty programs
  • Wider event streams
  • Marketer-driven relationship marketing
  • Test & learn

Each of these four is key to finding the “Holy Grail” of marketing: creating “fans”—people who think of a brand first and represent a much higher lifetime value. But today’s technology combines social, mobile and analytics to create new ways to drive another layer atop the four pillars, including higher trust, greater insight and relevance, and recognition leading to virtuous cycles of increasing value.

These are lofty goals that would be impossible without the new approach in technology and strategy offered by Customer Loyalty Management.

Aligning the Tools and Techniques

As consumers’ buying patterns change, the tools and techniques of loyalty need to change alongside them. There are four specific areas where the tools and techniques align with the four pillars and matter the most for the new Customer Loyalty Management:

  • Social
  • Mobile
  • In-store
  • On-line

Each of these areas is impacted by those changing buying patterns, and there’s an opportunity for brands to avoid disruption and benefit from the shift. These points of personal and digital engagement are the new realities of letting consumers engage in ways that increase their experience and create true fans.

Loyalty 101: How Savvy Shoppers Get the Most Out of Loyalty Programs

For years I have collected miles with a few different airlines, but have managed to fly only twice using my miles. Here, in one sentence, you have the problem with airline loyalty programs, but also my loyalty strategy.

Airlines want you to fly with only them and collect miles. But they really don’t want you to use the miles to fly – or so it would seem from the way the programs are structured. It is a “game” and you need to understand how to play in order to win. In fact, modern loyalty programs are morphing based on gamification techniques. More on this later.

Flawed loyalty strategy

Having been treated to a Loyalty101 class by an American colleague, I’ve discovered I’m doing it wrong. First, you need to fly with just one carrier, no matter how inconvenient it may be in terms of routing, to make sure that you are at the highest level in the loyalty program. These high levels are the only place you get real benefits. My loyalty mentor has over 1 million miles on United and gets access to lounges, automatic upgrades, and priority access to seats. And on every upgraded flight, she collects miles at a higher rate – like compound interest. So she will happily take United flights which include a change rather than take a direct flight with an alternative carrier. [Read more...]

It Only Takes Seconds to Lose a Customer Without Real-Time Information

Getting the right information on demand is an eternal problem of today’s knowledge workers, and will only grow. Lack of knowledge causes a delay in decision-making, and ultimately leads to bad decisions. This is the essence of the Two-Second Advantage, where a little knowledge in the correct context at the correct time is much more useful than all of the pertinent knowledge if it is too late to act upon.

Nowhere is this more true than retail where an immediate and succinct answer to a customer’s question is essential. Not reacting to a customer leads inevitably to dissatisfaction. Answering a customer question incorrectly can also lead to a potential revenue hit when the customer returns a product due to lack of information.

Cleanup in Aisle Two

Here is an example of the environment that exists in many retail stores: a store manager walks up to the shelf in his store and needs more information about the product in front of him. In the old world, he would write a number on the back of hand with his pen and go back to the dirty, smelly office in the back, log on to some application (or likely several), type in that number and get the information that would allow him to make a decision. [Read more...]

3 Ways to Get Online Communities to Contribute When Only 28% Do

Providing a great product, a wonderful customer experience, and actively engaging customers based on their preferences make up the foundation of turning a customer into a fan. It’s what sets the scene, or as they say: “If you build it, they will come.” But, the number of companies who have fans that mobilize into movements all by themselves are few and far between. Quite simply, we have to get in the habit of asking for our fans to speak up.

Will the Fans Please Rise?

Many of us are fans of companies, but don’t share our stories until prompted to think about it. Until a friend asks us for a recommendation for a restaurant, mechanic, or electric toothbrush, do we realize that we are passionate fans about so many companies. A number of companies make their point of differentiation on the reviews of things they sell – Amazon, Yelp, Overstock.com, etc. to name a few. Reviews have a big influence on decision-making and can create communities who actually create free, compelling content which engages other customers. In fact, Opinion Research Group did some research on the power of online reviews and found that 84% of Americans report that online reviews impact how the products and services that they buy, yet only 28% report writing their own feedback. How do you inspire your fans to speak up? [Read more...]

Valve’s Steam is Beloved by Gamers While EA’s Origin is Loathed. Why?

Leveling Up in the Enterprise

In our ongoing series about the video game industry and what businesses can learn from it, we take a look at two content delivery services and why one is loved and the other is reviled.

Steam from video game studio Valve Software and and Origin from Electronic Arts are two services that essentially do the same thing. Instead of going to a store to purchase a video game, these services let you do it from your computer via cloud-based direct download. In a sense, it’s iTunes for PC games. The main difference is most gamers (an increasingly diversifying market in age, race, and gender) love Steam and hate Origin.

iTunes for Video Games

Steam was first to market in 2003. Valve is a video game developer and publisher behind such classics as Half-Life and Portal. They’re a company which garners respect within the gaming community. At first, consumers were wary of this new way of purchasing video games, but the service eventually succeeded. Third-party developers began distributing their games on Steam, and it soon became the go-to online marketplace for digital distribution of video games, just like iTunes is for music. It delivered real value to its users, and gamers felt they could trust Valve. [Read more...]

Turning Customers into Fans is an Enterprise Game

In case you haven’t noticed, there’s a significant shift in how, where and when consumers buy. This shift has completely upset the applecart and is changing customer relationship management. The new way of doing business has several names, be it real-time interaction management, customer experience management, digital customer experience, or a host of others. At its root, it comes down to being able to analyze, understand, predict and act on opportunities to engage with customers. Done right, a customer becomes a fan and the loyal 12th man on the business playing field.

Engaging isn’t necessarily a discount, either. Customers won’t become fans simply by giving them offers and trying to sell them something. Powerful engagement, the kind that makes real fans, comes in many forms that include social interaction, loyalty rewards, exclusive content, perhaps gamification, but certainly interaction wherever and whenever the customer chooses. Not only does this involve many different technologies, but it also touches enough disciplines and parts of the organization that marketing now qualifies as an enterprise game.

If today’s marketing is truly enterprise level (and it is, trust me) that means the way to approach turning customers into fans has to be worthy of  the scope of enterprise. It has to serve historical questions as well as the data streams that are happening in real time. It also needs to face the organization as well as the customer’s data needs at the same time. This calls for integration of systems that were previously silo’d and/or unavailable in the moment.

This is why turning customers into fans can’t be solved by a simple point application or offer engine. It takes, to borrow a phrase, a village of integrated data combined with the ability to serve a variety of platforms. More than anything, it has to be responsive to a customer that is undergoing change at least as quickly as technology. Turning Customers into Fans is an enterprise game.

Passengers are Getting Smarter and Turning Into Fans

Passengers want to be able to use a form of public transportation that is easy, convenient, and reliable. Give them what they want and you’ll turn a customer into a fan.

This shouldn’t come as a surprise. When people have a favorite sports team, rock band, or social figure, they are willing to spend money and take the time time to display their dedication and loyalty. This level of devotion and ‘fandom’ can be enjoyed beyond what people typically think of as garnering passion.

Beyond rock and roll

People are ready to shell out money if their public transportation service is great, just as someone will pay for an expensive replica jersey or top dollar for concert tickets. However, if the service people receive from a transportation company isn’t what they expect, complaints soon follow. Transportation companies are finally starting to wake up and do something about it by turning customers into fans.

The Station Experience

The characteristics that make transportation attractive to riders aren’t specific to the type of travel service. Customer service breakthroughs happen when we get smart about ease of use of the whole system from the time the person purchases a ticket to when they reach their final destination, sometimes called a “station experience.” The definition of comfort has broadened with time when people expect stations to have wi-fi, be eco-friendly and a host of other things. In order to keep customers coming back, companies must provide an experience that makes customers feel at home, even in the most public of places. [Read more...]

Lunchtime in a Day in the Life of the Customer as a Fan

When we last left Marc, our perfectly integrated consumer who is a fan of the companies he loves, he was heading off to work. A few hours have passed, and lunch is mercifully approaching. Marc’s morning was stressful. His workday has been, well, work. New, last-minute projects have fallen in his lap, and a few difficult personalities have created stress. Marc’s blissfully planned morning routine is far behind him. He looks forward to lunchtime because it’s actually open — a nice chunk of time for himself. Today, he’s going to forego his usual cafeteria lunch and go for a run. He laces up his favorite running shoes, puts on the same brand running shorts, and the same brand shirt. He looks like a moving billboard for running equipment, but he is decked out from head to toe in the same brand because he is a fan of their products. Hoping to salvage his day, he looks forward to the mental reset of getting out of the office and getting his sweat on.

Out For a Run

Marc’s been running for the past three months and using Nike+ and Spotify to track and improve his performance, with a constant stream of new music. As a perfectly integrated consumer who doesn’t always have time to refresh his music collection, Marc loves how he can gather data about his runs and connect with his friends’ new band recommendations. [Read more...]