Experience Growth

The Integrated Measurement System: How to Unleash the Potential of Linkage Analyses Using Customer Data

Thu, 18 Aug 2011 00:01:00 GMT

Linkage analyses can be defined as establishing the statistical connection between two (or more) separate sources of data. In essence, linkage analyses represent the real-life application of the service-profit chain theory, by quantifying the relationships between the various components of the chain. This chain once built with regularly flowing data is frequently referred to as the "Integrated Measurement System".

In the mind of the consumer, there is no prize for second place

Thu, 16 Jun 2011 00:01:00 GMT

The more you like a product, the more likely you are to buy it again, right? Traditional market research suggests this is the case - that improving a customer's satisfaction rating will coincide directly with an increase in his share of spend. Companies have run with this theory, doing anything and everything to improve customer satisfaction. From fresh flowers in hotel rooms to full beds aboard first class cabins in airplanes, corporations have stepped up spending tremendously in an effort to please their customers. This is referred to as the 'doctrine of delight' and companies bank on the idea that delighting their customers will translate into share of wallet and brand loyalty.

The US Payer Customer Experience: An emerging business model for Pharma?

Mon, 25 Apr 2011 00:01:00 GMT

Despite having a surplus of undifferentiated drugs, heritage blockbusters going off patent and weak pipelines, most pharmaceutical companies are still feeling pressure from their shareholders to produce increased sales and profit. However, in a post-healthcare reform environment, as seen elsewhere in the world, companies that pre-emptively challenge the traditional definition of 'customer' and the 'customer experience' will undoubtedly pull away from the pack.

The Apple iPhone and AT&T Story: Customer Experience and Partnerships

Mon, 7 Feb 2011 00:01:00 GMT

Sometimes one needs to take credit where credit is due. Apple is clearly getting credit for its market leading mobile device, the iPhone. At the same time, as Apple's five year partnership deal with the US-based wireless carrier AT&T nears an end, it is clear that AT&T has generated significant sales while apparently gaining very little "borrowed approval" from its association with Apple.

Reinventing the Coupon: Turning Deals into Devotion

Thu, 4 Nov 2010 00:01:00 GMT

Today's coupons aren't your grandmother's coupons - the kind that were crammed between the comics and apartment ads in the Sunday paper. Now, coupons are more sophisticated; instead of getting out the scissors, many modern coupon users are logging onto their laptops and mobile devices to get the best deals. Coupon use increased last year for the first time since 1992 to the highest level ever, according to promotion tracker Inmar, and consumer research shows that users are skewing younger and wealthier. Put simply, coupons are cool.

Letting your brand shape your emails... and not the other way around

Fri, 3 Sep 2010 00:01:00 GMT

Emails from businesses bug me enough that I have a separate "consumer" email address ? for banking, buying clothes, downloading music, booking flights. I check my personal and work email constantly, but I check my "consumer" email only once a day, and often less.

Shopper Marketing: Change the Experience, Experience the Change

Fri, 2 Jul 2010 00:01:00 GMT

Walking through a Whole Foods grocery store a few weeks ago got me observing some interesting things. Have you ever noticed that refrigerated vegetable shelving has mirrors behind it? That the international aisle has a different "look and feel" compared to other aisles? That Burt's Bees products have their own customized display? As a marketer, these things caught my attention as efforts to attract consumers through a relatively new concept called shopper marketing. Deloitte's publication "Shopper Marketing: Capturing a Shopper's Mind, Heart and Wallet" defines shopper marketing...

Customer Experience Innovation

Tue, 18 Aug 2009 10:30:00 GMT

In a global marketplace that has grown increasingly competitive, the need for companies to constantly innovate has never been more pressing. Michael Porter of Harvard University declared: "Innovation is the central issue in economic prosperity." Likewise, business strategist Gary Hamel has said, "A company can't outgrow its competitors unless it can out-innovate them...innovation is the fuel for growth." But how important is innovation in an economic downturn? Can companies still afford to innovate?

Breaking Up Should Be Hard to Do

Thu, 02 Jul 2009 11:30:00 GMT

Customer churn is a stomach-churning experience for managers. How can we manage this phenomenon? Some insights can be gleaned from a 20-year tradition of research that supports the notion that customer relationships follow a natural lifecycle (Palmatier, Robert W. (2008), Relationship Marketing , Cambridge, Mass.: Marketing Sciences Institute). Knowing the relationship stage a customer is in, and having the right metrics on hand, provides a roadmap to properly manage customer relationships--and reduce that churning feeling.

Unlocking Loyalty

Mon, 01 Jun 2009 10:30:00 GMT

We've devoted a lot of space in this column over the years discussing how firms can improve customer loyalty by providing an exceptional customer experience. We've also extolled the benefits of improved customer loyalty in terms of enhanced marketplace and financial outcomes. As customers become more attached to the brand / company, they exhibit a greater willingness to repurchase, increase share of wallet, cross-purchase, give referrals and be a cooperative partner in the relationship. All of these behaviors can have positive economic consequences for the firm. But perhaps the operative word here is "can." Improved loyalty does not guarantee improved sales growth, market share, or profitability. Often overlooked by firms that are focused on building loyalty is the simultaneous need to unlock the loyalty they are creating. The need to unlock loyalty is not just a requirement for firms that enjoy exceptionally high customer satisfaction / loyalty scores on average. Truth is, even companies with lower average scores can have customer segments with passionate loyalists / advocates who are ready to go-to-bat for the firm if given the chance.

When Loyalty Strategies Fail

Mon, 27 Apr 2009 08:00:00 GMT

While few would debate the economic rationale of customer loyalty, many companies struggle with moving the needle in an appreciable and sustained manner. This can lead to a serious loss of confidence in a customer-centric strategy among executives. Consider the results of The Conference Board's CEO Challenge 2007 survey, where "customer loyalty / retention" ranked sixth (of 76 challenges)-with 26% mentions. Yet in the first four waves of this annual survey (2000-2003), the topic ranked No. 1-with about 40% mentions. Are CEOs losing interest because it is just too hard to drive measurable change?

The Brand Scorecard

Wed, 14 Jan 2009 08:00:00 GMT

In their pioneering HBR articles and book The Balanced Scorecard: Translating Strategy Into Action (Harvard Business School Press, 1996), Robert Kaplan and David Norton introduced a framework for a strategic measurement and management system. The scorecard "balances" short- and long-term objectives, financial and nonfinancial measures, lagging and leading indicators, and external and internal performance perspectives. The balanced scorecard serves to communicate and align the organization around the business strategy. Companies around the world have adopted some version of the balanced scorecard as a means of organizing their corporate KPIs (key performance indicators).

The Brand

Fri, 8 Aug 2008 08:00:00 GMT

"The brand is the experience." This increasingly popular mantra is being repeated by both experiential marketing experts and customer experience enthusiasts. It implies that what the customer knows and understands about the brand is heavily (maybe even primarily) influenced by the customer's direct experience with the brand. In fact, we've made this same assertion in previous issues of this column.

Getting Emotional About Product Innovation

Tue, 24 Jun 2008 08:00:00 GMT

Every year, The Conference Board publishes the results of their survey identifying the top concerns of hundreds of CEOs around the world. Once again, the 2007 report puts "stimulating innovation/creativity/enabling entrepreneurship" among CEO's top ten concerns. Even more interesting in the 2007 results is that when asked about challenges to their company's innovation performance, chief executives cite "improving customer relationships" as the second most significant challenge, right behind acquiring and developing the right talent. These results reveal a crucial insight: innovation doesn't create lasting business value unless it improves customer experience and, thereby, the strength of customer relationships.

Storm Proof

Tue, 12 Feb 2008 08:00:00 GMT

Every organization engages in some sort of customer experience, relationship and loyalty management. Reams of paper chronicle the importance of actively managing customers. There are conferences galore for those who seek to discuss and learn about the principles of customer management. So, we all do "it" (customer management). We all read about it. And, we all talk about it. Yet, many senior executives and people directly engaged in customer management would admit that despite significant time, energy and investment, customer management programs regularly falter.

Shift Work

Wed, 19 Dec 2007 08:00:00 GMT

Peter Drucker famously said, "The purpose of business is to create and keep a customer." What he did not say was: the purpose of business is to create and keep a market . Drucker offered a profound insight and most 21 ^st century corporations have missed this important distinction.

Passion Comes Alive

Wed, 10 Oct 2007 08:00:00 GMT

One definition of leadership might be "to find a parade and get out in front of it." One can question, of course, the viability of that strategy. A preferable definition might be that of John Kotter, the distinguished professor of leadership at Harvard Business School who focused thinking about leadership on dealing with and advancing change.

Managing the Brand Beyond Communications

Thu, 30 Aug 2007 08:00:00 GMT

Any good rancher knows that to find the herd, one must first apply a very hot chunk of iron to the bovine body with a mark that identifies the four legged product as "my cow." Indeed, the etymology of "brand" can be traced to the old English word for burning.