Posts filed under Customer Experience

The reason negative word of mouth kills Service brands

The interest in design has taken increased markedly within both consumers and organisations over the past decade. Where it was once once the domain of a select group, everyone now wants well designed products. And for good reason too, in an extensive Study by CEB Research of over 100,000 customers all across the world, they found that a Positive Product Experience produced 71% positive World of Mouth and only 32% Negative World of Mouth.

What was even more interesting were the finding for the Services. For those customers who had a positive service experience, it only generated only 25% positive Word of Mouth. The even more staggering statistic was the a negative Service Experience generated a whopping 65% negative work of mouth!

Why the startling difference. When it comes to a positive product experience, word of mouth usually comes in the form of a recommendation: “Hey you should check out this cool new phone I bought or you should try this great new restaurant!” When we find something great, we like to tell other people about it, it shows how clever we are.

On the other hand, when it comes to Service, people as we can see from the research are much more likely to tell many more people about the negative service experience. The reasoning is, as humans, when something bad happens to us, we tell others to evoke they sympathy. “You won’t believe how they treated me, they were rude to me”. The usual response as we all know is to support our friend and agree how awful that experience must have been for them.

What this tells us is that we pick companies because of their products, but we often leave therm because of their service failures.

To read the book, “The Effortless Experience by Matthew Dixon.

Posted on November 3, 2016 and filed under Customer Experience, Service Design, Innovation.

Neither a Promotor nor Detractor? How to reduce churn of customers who sit in the passive middle.

Did you know that passive customers are likely to churn (leave your brand) within 6 months? But with so much energy focused on the extreme ends of Promotors and Detractors, companies are missing opportunities to capture a majority of their customer base who sit somewhere in the passive middle. 

Passive customers are those customers who neither adamantly promote your brand nor put time into detracting from it. However they are certainly not loyal to your brand. They're price sensitive – often leaving quickly for a cheaper price elsewhere. Generally, their reported satisfaction with your brand doesn't equate to happiness or loyalty. 

"Creating a positive customer experience is the difference between having a revolving door of passive customers or an army full of promoters."

Organisations with large numbers of passive customers tend to focus on sales, not loyal customers. However, increasing sales is easy and acquiring loyal customers is not. You get a sale by selling a product. You gain a loyal customer by selling an experience and more importantly, building a relationship.

Want some tips for creating positive experiences that engage your customers? Take a look at what Proto Partners can do for your company here.

Read more about the anatomy of a Passive Customer here.

 

5 Ways To Achieve Business Transformation Through Customer Journey Mapping

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Customer Journey Maps (CJMs) are quickly emerging as the go-to tool for leading businesses because of the instantly-usable benefits they provide.

Access to fresh customer insights enable you to prioritise meaningful investments that will drive growth. CJMs help you to deeply understand your customer’s experience from the their point of view whilst leveraging that data to increase business acumen. 

In this article from TandemSeven, Steve Offsey shares five situations in which Customer Journey Maps can serve as a powerful tool for transforming your organisation. 

"Journey maps are... an ideal tool for transforming your company into a truly customer-centric organisation."

Check out how Proto Partners can map your customers' journey here. Or if you want to find out more about the value of CJMs, read the article here.

 

Reduce monthly churn by investing in your Customer Lifetime Value: it's a no-brainer

Customer Lifetime Value

If 70% of your business comes from repeat customers, why aren't you investing in Customer Lifetime Value? The key to increasing Customer Lifetime Value (LTV) is to thoroughly engage your customers - and how do you do this? By anticipating their needs and empathising with their problems.

Research continues to reveal that it's better to retain a customer rather than acquire a new one. Despite this, the 2015 Retention Marketing survey reported that:

“60% of retailers report a retention rate of less than 20%.”

This means there is an opportunity to increase your retention strategy. You can better understand every interaction your customer has with your company by mapping their journey from end-to-end.  Find out more about what Proto Partners can do for your company with the power of Customer Journey Mapping.

Empowered with this understanding, your company will have the competitive advantage it needs to retain your customers - for life.

You can find out more about building Customer Lifetime Value.
Read the article here.

 

 

The power of mapping your Customer's Journey to gain a competitive edge

Whilst Customer Journey Mapping is a powerful way to improve your customer's experience, the larger benefits are more wide-reaching in terms of your overall business strategy. The comprehensive information gained from the mapping process can provide valuable insights into the reasons why customers engage with your business and this can be used to gain a competitive edge.

Find out how Adam Richardson, the author of Innovation X: Why a Company's Toughest Problem are its Greatest Advantage, uses Customer Journey Mapping to engage customers and help businesses rise to the top of their industry.

"...if you are willing to be open-minded and unconventional, you could uncover unique insights for competitive advantage throughout your customers’ full journey."

Does your business want the competitive edge?

Click here to read more

 

 

How do banks create a 360° experience to keep customers banking "for life"?

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Gone are the days of customers choosing the one bank "for life”. Customers are now more likely than ever before to switch providers  – and digital accessibility has made this all the easier.

To remain competitive and relevant, traditional banking mindsets are starting to shift to be more digitally-savvy and customer-focused. By building partnerships with specialists in Customer Experience and building digital pathways into existing customer experience journeys, traditional banks are gaining back their competitive edge over rivals. 

The importance of the omnichannel experience

"...trends show that providing a digital-only approach in banking fails to take into account the nuances around context and journeys, and risks alienating customers."

Whilst customers utilise digital services to do their day-to-day banking,  they prefer the security of a traditional face-to-face interaction when it comes to processes that are deemed of higher importance.

What are the big banks doing to keep ahead of their competition?

Click here to read more

Posted on August 3, 2016 and filed under Customer Experience, Banks.