Posts filed under Innovation

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.

5 Ways To Achieve Business Transformation Through Customer Journey Mapping

Customer_Journey_Mapping

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.

 

 

No Investment, No Growth!

There will always be a certain amount of risk and anxiety when it comes to developing new strategies. But it seems that the terror of another global crisis led the majority of the companies to stop developing growth strategies. Business leaders are completely risk adverse, massive amounts of cash are piling up, M&A diminished 14% globally since 2008, and stock buybacks just continue to increase.

In reality, business leaders always had to face uncertainty, knowing that if money is not invested... growth, expansion, and innovation just don't happen!! However, they are doing nothing and nothing is just a terrible decision. Especially nowadays, when the market change rate is accelerating and products and services go from new to completely obsolete in less than 6 years (See the case of the first generation iPhone declared obsolete last June).

Likewise, companies can grow their markets like never before. One example is Samsung, “the world’s largest technology company by revenue” who entered the global smartphone market and conquered it (almost) in just 3 years. Competition isn’t confined to the industry leaders anymore - it can come from the smallest garage start up or from an international company.

“Business leaders can anticipate change” by understanding that uncertainty is unfamiliarity. This means that old ways can be adjusted and new methods acquired. The example provided by Bain is an extreme eye-opener. A couple of years ago everyone believed that money was scarce and talent was abundant. Today, businesses lack talent and that situation could change into a shortage of 95 million people by the end of the decade.

Bain finishes the article with a clever mnemonic, stating that what is needed is an “A” game: one that’s alert, agile and able to move with alacrity.

After reading the article, we at Proto Partners, questioned something that we consider essential. How can your company create innovative strategies that allow you to grow without knowing what your customers need? Well, you simply can't! If you look carefully to what the biggest companies in all industry segments are doing, you see that they are focusing their attention on their customers, anticipating their needs and delivering outstanding customer experiences. They know that innovation and success become possible when they have feasible technology, it is economically viable and finally also desirable by the customer.

Read more here.