For many companies, the economic outlook for 2011 is somewhat of an uncertain one.

Economic recoveries in their early stages of growth are normally rocky and it’s not out of the ordinary to see fluctuations in growth from quarter to quarter.

This has been echoed by previous recoveries, with the quarterly rises in GDP fluctuating from zero to 1.5% in the first three years of the 1980s recovery and from -0.2% to 1.4% in the equivalent period when the UK economy was recovering in the early 1990s.  [1.]

Over the last month, we have seen a deluge of news stories highlighting the uncertainty in the economy with declining sales for retail stores such as John Lewis, Unilever, WH Smith, Halfords, and Mothercare with Dixons, HMV and Clinton Cards being the hardest hit of all posting profits warnings to their shareholders. [7,8.]

These economic pressures coupled with new, enabling technologies and shifting consumer tastes have changed the business landscape for many organisations and have given rise to a new breed of customer who are intelligent, savvy and no longer buy from brands with big budgets but more so from brands they can trust and depend on.

To meet the demands of this new, sophisticated customer, many organisations are paying significantly more attention in retaining their existing customers by analysing the drivers behind why consumer tastes are changing so rapidly and how best they can adapt.

The Multi Channel Approach

One such idea, gaining momentum, is that of the “unified customer view” which essentially involves mapping the customers experience over an organisation’s touch points and adapting them to better suit the needs and expectations of your customers.

In a recent report published by PwC titled “Meeting the demands of the new multi-channel shopper”, they discuss how:

“Increased access to information and a broader set of offers means consumers can now pick and choose how they research, buy and receive their purchases to suit their individual needs.

This has led to distinct changes in the way consumers’ shop – particularly how and why they use store space – which are now shaping the UK retail landscape, and the balance of power in the sector.” PriceWaterhouseCoopers [2.]

So how can organisations make sure they remain competitive in these uncertain times?

In a survey of US and UK business thinkers, Customer Service Measurement Ltd found that 71% of people surveyed regarded a word class response to customer feedback to fall within the “Real-time to 1 hour category” whereas 29% felt as though a world class response fell in the “1-5 days category”. (Sample of 50 respondents) [3.]

A leading practioner using this approach is Coca-Cola where real-time access to customer data allows Coke to develop deeper insight into people’s true motives.

Instead of looking at the past to predict the future, Coke can look at, and make sense of, real-time customer feedback using it to display the right message, in the right media, to the right consumer segment, in a specific geography, at the right time. [4.]

Looking at the broader picture, it is important to remember that a real-time response to a customer complaint is only one factor of a world class experience, and other indicators such as quality of response, time to resolve the issue and the time it takes to connect to a human within the organisation are equally important.

Ultimately, taking your time to respond appropriately is far better for customers than responding quickly and then falling short.

Developing a World Class Customer Experience

Developing and delivering a “World Class Experience” can tie up organisational resources due to the vast amounts of data generated from systems that need to be maintained manually in order to analyse and report back to management teams effectively.

“Now that multiple channels have become the norm, the complexity of the reporting challenge is ballooning, as managers are spending inordinate amounts of time collating data from each channel in Excel spread sheets.” Karl Reed – Marketing Director for Elingo [5.]

To overcome this hurdle, organisations are investing in operational and customer dashboards in order to free up time to spend on higher priorities and respond to customer feedback within a world class time i.e. “Real-Time to 1 hour”

If you’re thinking about investing in a dashboard, you have to make sure that it reports the right data and in the right way, enabling meaningful assessments and decisions to drive your organisation forward in line with your customer expectations and future needs.

When it comes to dashboards Russell Swanborough founder of ScIAM reflects:

“A dashboard is nice like a cup of tea is nice. The more dials, the more you think you are managing. In a sense that is true but it is only partly true.

There is a mantra chanted by the computer literate that goes, “If you don’t measure it, you can’t manage it”. This is true, but it is only half of the mantra.

The information literate add, “If you don’t set it, you won’t get it”. Don’t believe that if you tell me how you will measure me that it will magically also tell me what I have to do. It won’t.

You can’t know where you need to go and get there by looking only at the dashboard.

Be specific, provide a corporate windscreen as well as a corporate dashboard and your grip on the corporate steering wheel will be considerably more steady and sure.” [6.]

As more and more organisations adopt the multi-channel approach to drive new business through the doors of their retail stores, early adopters are effectively utilising customer dashboards as part of their new tool box to consolidate the vast amounts of data generated from the variety of customer channels they use and grow gracefully in to the new retailer paradigm.

CSM is a renowned supplier of real-time customer insight research and dashboards.  To book a 30 minute consultation with our Customer Champion Oakleigh Wood, please email research@csmsurveys.com or call direct on 0800 970 9940.

References:

1. Bank of England “Let it grow: how monetary policy can support sustainable economic growth” Speech given by Andrew Sentance, External Member of the Monetary Policy Committee, Bank of England To the CBI East of England Annual Lunch, Suffolk; 22 March 2011, http://www.bankofengland.co.uk/publications/speeches/2011/speech483.pdf
   
2. PricewaterhouseCoopers “Pick ‘n’ Mix: Meeting the demands of the new multi-channel shopper” Article/Report, 19th April 2011, http://www.pwc.co.uk/eng/publications/multichannel.html
   
3. Customer Service Measurement Ltd “Poll: What is a world class response time to customer feedback?” 20th April 2011, http://linkd.in/g3DSoH
   
4. ScribeMedia “Coca-Cola Taps Into Real-time Social Data” Interview with Joseph Tripodi, EVP and Chief Marketing & Commercial Officer of The Coca-Cola Company, Article by Peter Cervieri, 18th April 2011, http://www.scribemedia.org/2011/04/18/coca-cola-taps-into-real-time-social-data/
   
5. ITWeb “Info overload haunts call centres” By Admire Moyo, 5th April 2011, http://www.itweb.co.za/index.php?option=com_content&view=article&id=42640:info-overload-haunts-call-centres&catid=69
   
6. LinkedIn | BP Group “Customer Dashboards… are they good or bad?” By Russell Swanborough founder of ScIAM, 20th March 2011, http://www.linkedin.com/groups/Customer-Dashboards-are-they-good-1062077.S.46141814?qid=b28d7bce-c92d-4bcb-bcf6-fcb20a108b64&goback=.gmp_1062077
   
7. Independent “Retailers report struggling profits”, 7^th April 2011, http://www.independent.co.uk/news/business/news/retailers-report-struggling-profits-2264597.html
8. Brand Republic “Unilever plans further cost reductions after inflation warning”, 28^th April 2011, http://www.brandrepublic.com/news/1067383/unilever-plans-further-cost-reductions-inflation-warning/

A recent LinkedIn question asked for ideas regarding an assessment tool or diagnostic for evaluating the market research agencies and voice of customer suppliers.

These are the organisations that deliver customer satisfaction surveys and similar customer insight programmes.

The questioner asked for advice under the following headings:

Process – systems – experience – skills – effectiveness

I thought to myself, what a great question.  In fact it is a framework which we should address, as we are a provider of these services.

This is the classic conundrum, how can you make a decision if you don’t know what you don’t know!  So I thought it would be useful to write a few words.  If I were a buyer, knowing what I know, what would I be looking for within each category:

Process
Ensure your supplier can articulate a structure that captures all the information at the front end, to deliver your goal at the back end. We call the clients goal the End Game. The end game isn’t the research output it is the clients organisational goal i.e. increase sales by X, or reduce costs by Y.

You seek a process that must include the intelligent steps that will deliver the right customer insight.

This might seem like high level waffle, but this is the most important part of your project. If your supplier isn’t interested, doesn’t think about this, or doesn’t understand your business objectives – the project will fail at worst, at best you will have nice data, but it wont relate to your need.

Sounds simple, but it’s a challenge. Make sure your business benefit is the no.1 part of that initial discussion over coffee.

Another go/no-go discussion is your contact data. Make sure your supplier really grills you on this. It’s easy for a client to say the data is great, but then when you are live in the project, the reality of poor data means you miss milestones. The supplier should push you hard on data from the word go.

Systems
Technology means your customers can be contacted in almost any way at any touch point, to identify their moments of truth during the customer journey… Data capture is relatively easy.

Think about data security, data management, what happens at the end of the project? How is data backed up, what security is involved.

Also think about data mining, and graphical reporting, online dashboards, access at different levels within your organisation. Who needs what information. What is the time lag? Will your customer satisfaction survey be based on transactional customer activity? If yes, you will probably need real-time reporting via an online dashboard.

If you are considering investment in customer satisfaction or voice of customer, how will you use that customer insight? If a customer is unhappy, how will you react? How will you track and record your staff as they action your service recovery process? Think about integration of auto alerts, triggered by poor or wow experiences (always nice to catch staff doing wow and say Thank You). Think about CRM integration into your online reporting, then you have an audit trail, related to the customers comment.

Experience
A key consideration. But what type of experience?

I suggest you look for a supplier who can demonstrate the elements of the programme you are looking for. Perhaps they worked in alternative sectors or verticals, if they did, they will bring a wider experience. Best practice is great, as long as it’s not just from your sector, how can your supplier help you learn from others.

Follow up with previous clients, if the supplier states that have delivered a customer satisfaction programme or another activity for a brand, ask for the lead contact at that organisation and drop them an email.

Skills
Another good heading, and yes, technical skills are key. But think about the associated skills that will make or break your project. Good customer insight will affect your organisations strategy, so ensure you have a supplier who understands the DNA of business, or can quickly demonstrate an understanding for your challenge.

If you ask the right questions, you will have insight that will impact the way your organisation thinks. In which case, ensure your supplier can hold an intelligent conversation with the board.

Effectiveness
There are two elements that are front of mind when thinking of this heading.

Response rates, although you only need 400 responses for a data set to have a confidence of 95% i.e. 95% probability that it represents your audiences view.

That said, when organizations are making strategic business decisions, the board will feel more comfortable if the response rate of a customer satisfaction survey is based on a large percentage of the customer base.  In our experience, B2B research will deliver a response in excess of 40%, without incentive.  With the right techniques this can more to 80-90%.

B2C response rates relate to other influences, usually need an incentive and often have a lower response level.  However the right approach will 20%+ starting from a point of zero customer contact data.

The second element is ROI, click here for more on ROI.

I hope these thoughts have been helpful.

If we can be of assistance, please drop us a line or give us a call, always happy to have a chat, and give you our view on the best approach to your challenge.

Research projects help organisations gain a better understanding of the part of the business they are researching…

It could be an organisations customer segments, purchasing behaviour or even the sentiments held by your customers, an organisation is always better informed to make better decisions when the basis of their decisions are centred around the core of the organisational challenge at hand.

For example, your organisation may want to increase sales, the effectiveness of marketing campaigns or the ability of their call centre reps.  In all cases, having a clearer understanding of the customer is key to success of any improvements you make to achieve operational excellence.

But how can an organisation ensure the initiatives and steps it takes generates new revenue, increases efficiency and benefits the organisation as a whole?

Building a Business Case

Building a business case for your research programme helps your organisation set goals and objectives which can in turn, be clearly communicated to members in your team and senior leaders.

It also helps the organisation as whole understand the benefits of running such programmes and ways it will increase the likelihood of reaching top level goals such as retaining customers, reducing customer acquisition costs as well as taking steps to influence a higher share of customer spend.

As buying decisions generally affect departments across the whole structure of an organisation, it is important that you gather support for you initiative and this only comes when you have the ability to communicate it’s organisational benefits, its payback period and expected return on investment.

In turn, this will help you build confidence and credibility around the initiative that you’re trying to push through…

The key points to use in your report here should focus on…

• Which benchmark metrics are you going to use?
• What are the expectations you need to communicate?
• How will you gain the acceptance of the initiative by management?
• Can we create a scalable model for measuring success of improvements made?

Download your ROI worksheet here

Case Study

Taking our clients as an example, we helped design a research programme around enhancing the customer experience delivered by the organisation but more precisely focusing on the quality and training surrounding their call centre staff.

With our online dashboard, they were able to visually recognise that the quality delivered by call centre representatives differed greatly from across the globe…

The result? The organisation was better informed, and make decisions on tangible facts.  In this case they were able to re-route their customer support calls from the UK and US which averaged on £10 to £12 a call to Hungary which equated to £8 a call whilst at the same time, maintaining the quality of service that their customers expected.

This helped the organisation make a £4 saving per call which resulted in a win-win for both the customer and the organisation.

By building this picture around call centre quality, price and customer expectations, they were able to see and measure the effectiveness of the changes made over time using the initial data gathered as a baseline measurement.

What do you think? have something to say? Feel free to discuss this article below..

Are your customers truly satisfied? Do they come back time and time again singing your praises and referring new business to you?

Is there an area of your organisation that you could improve that you are currently unable to see?

If so, this could indicate that there is a misalignment between the internal thinking within your organisation i.e. the perception of satisfactory service delivery and external thinking held by the perceptions of the customer once they have transacted and experience working with your organisation…

So why are satisfied customers so important?

It is fairly known within the customer service arena that a satisfied customer is a happy customer… and we all know that if our customers are happy, then they will be more likely to purchase more from us, tell their friends about what a great service they’ve had and refer new business to us.  Having a strong customer base in this way is integral for any organisations long term survival and sustainability as it ensures that the organisation will live on through the generations and explore new markets.

However, reaching this fine balance between the customer and organisation can be easier said than done as with any market, the customers that you are addressed will be made up from a wide variety of customer groups and their needs regarding your product/service will vary depending on how they aim to put it to use.

I think Theodore Levitt summed it up best when he said that

“People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!”

But if you had more than one product you were selling, say a portfolio, each targeted at different segments of the market, then it immediately becomes apparent that shaping your organisations resources to be more customer centric can be much more of challenge.

To develop this further, your organisation may already be delivering a quality service to the majority of your customer base but say a minority of customers had an issue with, the voice of these customer could shed light on how best to innovate your products/services and also, re-align your customer satisfaction processes to increase satisfaction across the board.

So what are the different types of customer feedback?

In a general sense, there are two types of customer feedback your organisation can use in it’s customer satisfaction programmes… they are:

Positive Customer Feedback:

• Helps define best practices in service delivery and  quality control
• Delivers the Voice of the Customer into the Organisation
• Allows management teams to apply the right resources in the right areas of the business

Negative Customer Feedback:

• Helps define change management programmes
• Identifies gaps between customer expectations and service delivery
• Identifies inefficient or in-appropriate business processes

Reshaping Organisational Thinking

In the fast paced business world we work in today, there can be tendency to focus on short term goals and measurement metrics that help deliver a ROI in an as short a time as possible, but to make a sustainable business that transcends across generations and delivers a long term ROI, your organisation will ultimately need to invest into areas of the organisation that improve the customer experience across the board to ensure that your organisation foresees changes in customer buying preferences and trends and pip you competitors to the post before they can take the opportunity to meet your customer expectations.

So how should an organisation view a customer satisfaction programme?

Scholars and academics have maintained the fact that a highly satisfied customers can contribute more to an organisations revenue generation programme as they are more likely to talk about your organisation in a positive light, refer more business to you, purchase more goods and services as well as stay with your organisation as it evolves over time.  It is these advocates of your service that are the most important customer groups to your organisation as it shows that the way your organisation communicates and delivers its products or service are closely aligned to the needs and buying preferences of your customers.

With top management teams stressing about meeting short term objectives and meeting targets/quotas means that all too often, investing into a customer satisfaction programme gets left on the back burner… however, tipping this perception on it’s head shows us that investing into a customer experience/satisfaction programme should not be accounted as organisational cost, but more as a long term investment that will return positively to your bottom line i.e. an ROI

But sometimes this isn’t the case…

Sometimes, organisations can see growth in revenue whilst there is a drop in customer satisfaction.  But why does this occur?

One of the reasons I have looked into around this phenomena is that although an organisation may be experiencing growth in revenue, this also attracts many more customer groups who also choose to buy from you.

Moreover, as the characteristics of these new customer groups may be beneficial for an organisations growth, or even survival, the leadership functions within these organisations need to recognise these new customer groups also attract a new customer expectations that an organisation needs to address.

Quite often, this can be the trigger point for where gaps between service delivery, customer support and the customers expectations occur so wouldn’t it be nice if you could nip these in the bud before gaps widen?

However, once the Voice of the Customer starts filtering through an organisations decision making processes and a reconfiguration and restructuring programmes are deployed in order to manage these new customer expectations, organisations can then focus on optimising their business processes around raising the quality of customer satisfaction to in effect, make longer terms savings in service delivery and retain customers for longer thus increasing the value of the customer for the organisation.

Long Term Organisational Benefits

• Increased word of mouth
• Satisfied customers retained for longer
• Referral sales
• Increased cross sell opportunities.
• Increased loyalty
• Increased retention

No matter what market you operate in, you could be a marketing manager, a clinician, an , a student or an employee of any organisation.  Promoting positive customer satisfaction programmes throughout your enterprise can bring the voice of the group into your planning process and grow your organisation with your customers instead of without them.

Measuring customer satisfaction is an integral building block for any organisation wanting to leverage the knowledge gained from customer insight programmes.

Depending on your end goal, survey research can help your organisation to gather and understand information surrounding your customers, employees and key stakeholder groups in order to design relevant and effective processes, technology, management structures and programmes centred on the needs of group being studied.