Tag Archives: McKinsey & Company

How to Create Game-Changing Market Differentiation

Photo: USS Enterprise, Rob Young from United Kingdom. This file is licensed under the Creative Commons Attribution 2.0 Generic license.’

“Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves.” – Steve Jobs, American entrepreneur

In “Across The Board, CMOs Struggling To Deliver An Integrated Customer Experience,”  Daniel Newman states that “only 13% of the 110 CMOs surveyed said they are able to truly deliver a personalized and engaging customer experience across channels.”

Are you facing the same challenge? Join Darryl Speach, Chief Customer Officer, Greystone & Co, Inc., as he presents “Designing a Customer Centric Culture: The Final Frontier for Game-Changing Market Differentiation” during the Total CX Leaders Conference June 3-4 in Miami, Fla.

During this session, you’ll learn valuable insights and the steps required to instill and sustain a successful customer-centric culture.

Prior to joining Greystone, Darryl was Disney’s lead consultant assigned to the Disney Institute/McKinsey & Company co-branded joint venture, specializing in customer experience transformations.

Total CX Leaders Conference will help you “learn how to listen to your customers, understand their differences and set the foundation to build a road map to create a seamless experience for modern customers.”

Join Darryl at Total CX Leaders Conference (TCXL) 2015 in Miami. Register today!

Stay connected with TCXL15:
- twitter.com/#TCXL15
- linkedin.com/Total Customer Experience Leaders
- facebook.com/Total Customer Experience Leaders

Peggy L. Bieniek, ABC is an Accredited Business Communicator specializing in corporate communication best practices. Connect with Peggy on LinkedIn, Twitter, Google+, and on her website at www.starrybluebrilliance.com.

The Customer Experience: A Journey Best Understood in Reverse?

‘Life can only be understood backwards, but it must be lived forwards.’ -Soren Kierkegaard
Even after decades of study (and oodles of actual studies), the ‘Customer Experience’ remains a top focus for large and small companies alike. Work from McKinsey about the consumer decision journey (references below) is just one of many recent examples. Millions of dollars and labor hours, and prodigious efforts, are spent on the subject.
From time to time, clients ask’usually around the annual budget-setting cycle”What should our priorities be in evaluating customers’ experiences?  What’s the first, most important thing we need to understand’?  My answer often echoes Kierkegaard’s assertion above: To best understand and prioritize, begin at the end.  Although this list doesn’t include every possible flavor of CEM study, here’s my ranking and rationale for some major types:
1. Understand Churners/Defectors/Disconnectors

Three standard aims of these studies are:
  • Why did they leave (pushed or pulled)?
  • Where did they go?
  • Would they come back? (hint: many would)
But why put this at the top of the list?
  • Like the Little Dutch Boy, you must plug the holes in the dam: High attrition rates require high acquisition rates just to maintain the size of your customer base’and that can get expensive.
  • Many wounds are self-inflicted, some are easy to fix: Pick that low-hanging fruit.
  • Know when and why you lose customers to specific competitors.
  • While the reasons people leave are not always the same as the reasons they stay, fixing the former may go a long way to keeping your customers in the fold.
2. Understand Current Customers

They are the source of current revenue and profit’not to mention paychecks and bonuses. Even simple information about satisfaction based on level of product usage (volume) and specific products used (‘Is subscribing to our internet service an upper or a downer’?) can be very enlightening. There are many ways to gain useful knowledge here, for example:
  • The McKinsey paper posits that as good and bad events occur, customers may enter a Loyalty Loop: If, at a minimum, experiences nearly meet expectations, they don’t search and remain ‘loyal.’ A price increase, bad customer service or a competitive offer can disrupt this, as can small annoyances over time.  So one focus can be ensuring customers remain in that Loyalty Loop’and if they are not, figuring out how to get them back there.
  • With later follow-up, a company can discover key tipping points (e.g., 4-6 months before the end of a mobile phone contract, or two and four years into auto ownership) when it’s optimal to bolster loyalty with a proactive contact or offer.
3. Understand New/Upgrading Customers
So we now know why customers leave and maybe something about why they stay. What next? New customer studiesare the reverse of a churn/defector study: Your new customers are probably someone else’s defectors. You’ll discern why they came to you, what attractants and promotions really work, if they were pushed or pulled, where they came from, and among other options:
  • What was their purchase decision process like? Short or long, involved or impulse?  How and why did their path end with you?
  • What was their experience during the sale itself? How were they treated? What was their opinion of the salesperson and others?
  • The ‘on boarding’ experience: early disappointments and successes; that first monthly bill; so far, so good?
  • How do we find more of them?
4. Understand Prospects and the Market as a Whole

These studies place your finger on the market’s pulse, and how your and the competition’s changing images are linked to marketing programs, new product introductions, etc. It is the realm of Brand Trackers’illuminating awareness, familiarity, attractiveness of and openness to your brand, why prospects don’t chose you, and whose image is rising and falling. (FWIW, note that McKinsey’s scheme questions the relevance of the traditional funnel approach, which assumes consumers frequently go through a systematic and active re-evaluation of alternatives. That leads to often-expensive awareness building and promotions, and a possibly misallocated budget.)
Understanding the marketplace is critical. Knowing where you are ahead and behind the pack tells you what the game’s score is today. So if it’s that important, why list this last? It can be more imperative for your company to make sure you have your own house’product, price, customer service, systems, etc.’in order first, before you try to acquire a new customer. Some years ago, Ramada had to pull an advertising campaign called ‘No Surprises’: Apparently, guests were still finding too many.
Without a solid, well-running process in place, a customer’s journey with you may be short indeed!
About the Author: Randy Hanson, Vice President, Market Strategies International
Join Mark Willard of Market Strategies and Mary Lee of AAA for ‘Revolutionizing CX: How AAA Turned Satisfied Customers into Loyal Advocates’ at TMRE 2014 in Boca Raton (2:30 p.m. on Tuesday, October 21). They’ll share how a new measurement program and a built-in, closed-loop system revolutionized AAA’s member experience program and empowered employees across the organization to make immediate and lasting improvements in customer experience. And, visit the Market Strategies team in Booth #508. Learn more about TMRE 2014 here: http://bit.ly/1pEaxzO

6 Things of Note For Segmentation

Segmenting seems straightforward but is something that most companies fail at. Gretchen Gavett explains in her article that it is harder than it appears to break down segments. Segmenting is the separation of customers with different needs into a subgroup of customers with similar needs. 

Overcoming Obstacles:

John Forsyth, of Mckinsey’s, describes three pitfalls that companies fall into when thinking about segmentation:
 
1. Companies rarely create a segment, they usually uncover one

2. Segmentation and demographics are very different things

3. Asking why you want to segment and what decisions will be made based on the info

Approaching Insights:

There are six characteristics to consider when coming up with a useful segmentation.


1. Identifiable – You should be able to identify customers in each segment and be able to measure their characteristics

2. Substantial – A segment must be large enough to be profitable

3. Accessible – You should be able to reach you segment via communication channels

4. Stable – A segment should be stable enough to be marketed to effectively

5. Differentiable – The people should have needs that are visibly different from other segments

6. Actionable – You have to be able to produce products catered to your segment

These are basic explanations for a more complex set of characteristics, but they are essential in figuring out segments. There are other things to consider when searching for a segment including such as learning from prominent failures. Forsyth also mentions that focus groups are antiquated and the best way to learn about customers is to spend time with them in their homes. Segmentation is far more difficult than people assume and companies are not even close to being adequate at it yet. 

About the Author:

Ryan Polachi is a contributing
writer concentrating his focus on Marketing, Finance and Innovation. He can be
reached at rpolachi@IIRUSA.com.

TMRE 2013: Big Data & Predictive Analytics and Disruptive Technologies & New Methodologies

You are being charged with being disruptive, doing things
differently and igniting change through insights.  And as you know,
nothing breakthrough comes from what’s already been shared.

On that note, I wanted to make sure you are aware of the ONLY event that brings
you what’s new and next before anyone else: The
Market Research Event
.

Especially since you expressed interest in The Future Of Consumer Intelligence
Event but could not attend this year, I wanted to remind you that TMRE, the
world’s #1 insights event, presents an unbiased platform for competing
viewpoints, diversity of perspective and an invitation for all. 

Here are some sessions that may be of particular interest to you focused on Big
Data & Predictive Analytics and Disruptive Technologies & New
Methodologies:

Upping Your Seat at the Table – Transforming Market Research Into Business
Insights Teams Through Big Data & Analytics
         Aaron Fetters, Director KNA
Insights and Analytics Solutions, Kellogg’s

Traditional Market Research & Big
Data Integration: A Case Study in What Works and What Doesn’t 

          Donald Hodson, Directory, Market Research and Consumer
Insights, AT&T Mobility
          Gregory Mishkin, Vice President, Research & Consulting,
Market Strategies International 

         
From Data Collector to Agent Provocateur 
         Greg Heist, Vice
President, Research Innovation, Gongos Research
         Jason Raguso, Managing
Director O2, Integrated (a gongos enterprise)

Segmentation in a Big Data World
         Shawn Utke, Vice
President, Brand Insights & Research, Panera Bread

Google Consumer Surveys: Real-Time Research in a Connected World

         Paul McDonald, Project
Manager, Google   

To see the full TMRE 2013 agenda including sessions organized across the
following themes: Your NEW Hybrid Skillset, Transformational Leadership,
Predictive Insights & Futuring, Strategic Planning, Disruptive Technology
& New Methodologies, Customer Driven Innovation, Big Data, Analytics &
Measurement, Brand Strategy & Engagement and many more,  click
here:  http://bit.ly/12ne0YU

TMRE
October 21-23, 2013
Nashville, TN
Mention code TMRE13LINK & Save 15% off the standard
rate. Register today: http://bit.ly/12ne0YU
To see The Market Research Event legends, leaders and game
changers taking the stage, click here: http://bit.ly/12ne0YU
Best,
The TMRE Team
@TMRE

How to Make Smarter Decisions in a Data Overloaded World

Big Data is a small idea; according to Christopher Frank it’s all about being able to use the information to make smarter decisions. However, according to a recent study by McKinsey, the United States will soon face a shortage of up to “1.5 million managers and analysts to analyze big data and make decisions from their findings.”*

The Total Customer Experience Leaders Summit will explore the skills needed to sift through the Big Data to uncover and understand the insights that lead to better business decisions. Customer-focused leaders from eBay, Facebook, Forrester, Hunter Douglas, JetBlue, Safelite AutoGlass, Toyota Financial Services and more will share best practices with their own customer programs that drive business results.

Christopher Frank

Keynote Spotlight: Curating the Customer Conversation: Making Smarter Decisions in a Data Overloaded World
- Christopher Frank, Vice President, American Express, Author, Drinking from the Fire Hose

Just about everyone these days suffers from information overload the 24/7 explosion from our computers, smartphones, media, colleagues and customers. Information is essential to making intelligent decisions, but more often than now, it simply overwhelms us. It’s like trying to drink from a fire hose.

How do you find the truly essential nuggets of information and use them with confidence? From first-hand experience from Fortune 100 companies and start-ups, Christopher Frank will share insights to drive your customer experience agenda forward.