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Curate Insights to Provide Information of Value

Posted by Tom Smith on Thu, Mar, 13, 2014 @ 10:03 AM

Consumer insights accelerate sales

 

 

 

 

 

 

 

 

 

Knowledge of the customer is key to providing information of value to the right person, in the right place at the right time.

 

Marketing and IT need to work together to have a digital biography of your customers -- personas, demographics, psychographics, digital journey, social media habits, interactions with your company in person, online and at tradeshows.

 

In order to maximize marketing effectiveness, companies need to ensure every interaction with a customer or prospect provides more awareness of the products and services that match the needs, attitudes and expectations of the customer.

 

Ideally the interaction is captured in the CRM which is integrated with the marketing automation software.

 

Most companies lack the full range of skills and capabilities to apply internal and external data to build effective targeting models. Identifying people with these skills, or training them, will be critical as customers become more sophisticated and have higher expectations of their product and service providers -- B2B and B2C.

 

Sending untargeted, nonpersonalized email is asking to be deleted, or worse, unsubscribed. You're better off not sending any email than sending untargeted email. Untargeted email will cause your subscriber list to shrink and make a bad impression on the recipient.

 

Response/conversion rates are 10% higher for prsonalized messages versus non-personalized.

 

Every communication does not have to sell one of your products or serivces.  Provide information of value to earn trust.

 

Road Runner Shoes always sends me a promotion on running shoes. They would earn my trust and respect by sending me information on nutrition or warm-up/warm-down that has nothing to do with shoes occasionally.

 

What information of value can you send your customers and prospects they will find useful and therefore think more highly of you because you're looking out for their best interest rather than just trying to sell them another product or service?

 

The trust of your customer is hard-earned and easily lost. Send them enough email and snail mail that's not relevant and you'll lose their trust.

 

Engage in a dialog with your customers to know how you are doing. A great way to open the dialog is with a three-question Net Promoter Score (NPS) survey. This survey has two open-ended questions that let you get voice of the customer feedback that you can respond to and that will give you insight into customers' needs and wants.

 

Once the customer has completed the survey, make sure you thank them for completing the survey and for their valuable feedback.

 

In all cases, look for client needs and determine how you can meet those needs.

 

For "promoters," those that gave you a 9 or 10, reach out to them to thank them for their feedback and ask if they are willing to provide a testimonial, serve as a reference, provide referrals or share their thoughts about you on their favorite social media channels.

 

For "passives," those that gave you a 7 or 8, thank them for their feedback and delve into what you can do to address their concerns so they will continue their relationship with you and give you the opportunity to provide a better experience than they currently perceive you providing.

 

You need to reach out to "detractors" immediately. Thank them for their feedback and let them know you're very interested in addressing their concerns. You don't want to lose their business and you don't want them sharing their negative experiences with you on social media.

 

The more you know about your customers, the more you are able to identify inflexion points at which time certain communications or offers should be made. 

 

Based on a study IBM conducted, the return on investment for tools that enable a highly personalized experience for the customer can reach 600%.

 

How are you curating insights from analytics and qualitative data to communicate more effectively and efficiently with your customers and prospects?

 

Need More Insights From Your Analytics? Download the Free e-book

Tags: consumer insights, dialog, information of value, CRM, promoters, passives, detractors

Map the 7 Phases of Your Customers' Lifecycle to Accelerate Sales

Posted by Tom Smith on Fri, Feb, 28, 2014 @ 10:02 AM

know your customers' lifecycle to accelerate sales

 

 

 

 

 

 

 

 

While marketing has evolved with the growth of the internet and social media, the phases of the customer lifecycle have not.

 

What you should do at each stage has certainly evolved and can be different for each industry, product, service and set of customers. Have a dialog with your customers so you thoroughly understand their buying process.

 

Following are my thoughts:

 

  1. Build awarenss to attract traffic and leads -- pursue lead generation and demand creation with both inbound (content and blogs) marketing and outbound (advertising, P.R.) marketing. Using both inbound and outbound together is more effective than just using one or the other.

  2. Help your prospect be more knowledgeable -- share information of value, answer your prospects' questions before they ask them. This builds awarenss, trust, content, SEO performance and leads.

  3. Consideration -- understand the buying process of your customer and the number of calls/contacts required to close. Know where your customer is in the cycle so you can supply relevant information of value at the appropriate time.

  4. Selection -- work with sales to identify the difference between a marketing qualified lead (MQL) and a sales qualified lead (SQL) it will make the sales process much more efficient and rewarding.

  5. Delivery & satisfaction -- check-in with your customer at delivery and installation to ensure they are satisfied with the process and to determine how you can improve the process. Make sure your customer is happy with their purchase and are receiving the value they expected.

  6. Advocacy -- once you know your customer is happy with your product and service. Know your customers' pain points so you can continue to provide solutions, make their lives easier and convert them from satisfied customers to loyal customers.

  7. Loyalty & referrals -- if you've followed-up properly with your customers, you know whether or not they are satisfied, how satisfied and if they're inclined to refer you to their friends, family and colleagues. It's very important to ensure they are happy before you ask for a referral. Work to move loyal customers to "raving fans."

I'm a big fan of using the Net Promoter Score (NPS) survey to determine whether or not a customer is a "promoter," a "passive" or a "detractor."

 

You can ask "promoters" for referrals right away.

 

You have some work to do to move "passives" to "promoters."

 

You have a lot of work to do to address "detractors'" concerns to keep them as a customer and to resolve their issues before they tell their family, friends and colleagues about you on social media. 

 

Commit to providing an outstanding customer experience and "promoters" will end up doing a lot of your marketing for you.

Want to Accelerate Sales? Download the Free e-book

Tags: customer satisfaction, accelerate sales, referrals, promoters, passives, detractors

Use Net Promoter Score Surveys to Determine Employee Engagement

Posted by Tom Smith on Thu, Feb, 13, 2014 @ 10:02 AM

employee Net Promoter Score

 

 

 

 

 

 

As you are aware, I am a big proponent of using Net Promoter Score (NPS) surveys with customers to determine their level of satisfaction with the company, as well as their willingness to recommend the company to their friends family and colleagues.
 

I also think it's a great way to start a dialog with a customer.

 

Ever since introducing Net Promoter Score (NPS) at my previous employer for both customer and employer surveys, I've been pleased with several different aspects of the methodology:

  • Ease of implementation
  • Ease and speed of response
  • Insights provided
  • Dialog promoted with customers
  • Education provided employees

 

I also think it's a great way to determine employee satisfaction and engagement using the same three questions, with a slight variation, that I use with customers.

The three questions are very simple and can be answered in less than five minutes, unless someone has a lot to say.
Here are the three questions I ask employees:
  1. On a scale of 0 to 10 with 10 being "extremely likely," what is the likelihood you would recommend working at ________ to a family member, friend or colleague?
     
  2. Why did you give us that score?
     
  3. What would it take to earn a 10?
By putting "Employee Satisfaction Survey -- Less than 5 minutes of Your Time" in the subject line of the email, we received excellent response rates.
Everyone who responds to the survey receives a personal "thank you" from me acknowledging their response to our request. I'm also a strong believer in saying "thank you" whenever someone gives you feedback.
Promoters, those who gave us a 9 or 10, are engaged and willing to go the extra mile for the company and their colleagues.
Detractors, those who gave us a 6 or lower, are disengaged. You need to have a one-on-one talk about these employees' concerns and agree on whther or not they can be addressed. If not, it's in everyone's best interest for these employees to find a place to work that a better fit for them. 
Passives, those who gave us a  7 or 8, are not engaged, as such you need to reach out and have a face-to-face meeting to determine what their concerns are and put a plan in place for addressing those issues.
Our goal for the emplyee satisfaction survey was three-fold:
  1. Provide a benchmark against which we can measure employee satisfaction over time;
     
  2. Facilitate a dialog with emplyees so we better understand their needs and wants and we develop an employee engagement program that will increase the eNPS score over time; and,
     
  3. Let employees see what we're asking our customers so they can gain a perspective on how customers are evaluating us.
By responding to every employee, we let them know we cared about what they had to say.  
By addressing the specific concerns of "detractors" and "passives," they know we are committed to addressing their concerns and providing a better work experience for them in the long-term.
Plenty of research validates the positive effect empowered employees and satisfied customers have on the revenue and profitability of companies.
These three questions are a great way to positively impact customers, employees, revenue and profitability.
If you need any help implementing a Net Promoter Score employee satisfaction program at your firm, please let me know.

Empower Employees to Get Insights Download the Free e-book

Tags: net promoter score, promoters, passives, detractors, employee engagement

Why Don't More Firms Use NPS for Customer Loyalty?

Posted by Tom Smith on Fri, Nov, 01, 2013 @ 06:11 AM

Net Promoter Score

 

 

 

 

 

 

Having used Net Promoter Score for several years to get customer feedback and begin a dialogue with the customer, I'm perplexed why more B2C and B2B firms aren't using it.

It's easy to implement and easy for customers to complete.

It provides a great opportunity to learn who's a "promoter" and who's a "detractor."

Are companies afraid to hear what their customers think about them?

Do they not care?

Given the better financial performance of firms that provide outstanding customer service, and have high NPS scores, you would think more companies would use this valuable, inexpensive tool.

I recommend every company employ a three question survey that will let them know what their customers think about their products and services, as well as the fact they even care what their customers think of them.

  1. On a scale of 0 to 10, 10 being "extremely likely," how likely are to recommend __________ to your family, friends or colleagues?
  2. Why did you give us that score?
  3. What would it take to earn a 10?
This survey can be fielded in-person, via email or snail mail and takes the customer less than five minutes to complete.
It provides the company fielding the survey with tremendous insights:
  • Do your customers like what you're doing well enough to recommend it to others?
  • What do your customers see you doing "different and better?"
  • What can we do to improve our product, our service, the customer experience?
  • Who's a "promoter?"
  • Who's a "detractor?"
  • What do we need to do for the "detractor" to address their concern(s)?
  • What can we do to move "passives" to "promoters?"
  • What's happening to our Net Promoter Score -- are we improving or going backward?
If you'd like some help letting your customers know you care what they think about you, as well as invaluable insights for improving your business, let me know.
Need More Insights From Your Analytics? Download the Free e-book

Tags: net promoter score, referrals, promoters, passives, detractors, customer satisfaction measurement and improvement

6 Ways to Get "Promoters" to Speak Out

Posted by Tom Smith on Wed, Oct, 02, 2013 @ 06:10 AM

Consumer insights on referrals

Word of mouth continues to be the most efficient and effective form of marketing and with the growth of social media, it's even more effective.

However, happy customers do not equal referrals.

Based on a survey of 1,188 small business owners conducted by the Enterprise Council on Small Business, only 41% of small business owners who say they have a high "likelihood to recommend" actually speak to others about their positive experience.

Those who do speak out are considered to be "active advocates," while those who do not speak out are considered to be "passive supporters."

The two groups are similar in that they both:

  • Are involved in networking groups
  • Enjoy sharing information
  • Are optimistic
  • Have an average peer network of 10 business owners

In order to convince people to speak out on your behalf, or refer you, you need to appeal to their emotional drivers of social activity:

  • Feeling smart
  • Looking cool
  • Belonging
  • Helping others

Here are six things you can communicate to convince "promoters" to speak out on your behalf:

  1. You will feel better when you share your knowledge and expertise to help others.
     
  2. You're contributing to your network when you share your positive product and service experiences.
     
  3. You'll enjoy helping others make good choices. (Do you think this product or service would help some of your peers?  If so, how?)
     
  4. Tell a story about how the product or service helped address a need or solve a problem.  Don't ask for a testimonial.
     
  5. Engage customers to identify barriers and create solutions that help others.
     
  6. Promote a conversation or dialogue -- nothing too formal, rather helpful and informational.

What have you found that works to get your best customers to speak out on your behalf?

Want to Accelerate Sales? Download the Free e-book

Tags: net promoter score, referrals, promoters, passives, detractors, customer satisfaction measurement and improvement

Know Your Net Promoter Score to Inform Your Marketing

Posted by Tom Smith on Thu, Sep, 26, 2013 @ 06:09 AM

Net Promoter Score

 

 

 

 

 

 

Do you know your Net Promoter Score (NPS)?

You should, it can make a huge impact on your marketing plan.

Simply ask your customers, "On a scale of zero to 10, with 10 being 'extremely likely,' how likely are you to recommend our company to your family, friends or colleagues?"

I just did this for a small retail grocer. Their NPS was higher than the category leader and almost as high as the overall NPS leader -- USAA.

Eighty-eight percent of those surveyed were "promoters" and nearly 40% were "raving fans." This grocery chain was the only placed the "raving fans" shopped.

There is a huge opportunity for this grocery chain to engage their "promoters," and especially their "raving fans," to tell their friends and family about their positive experiences with the grocer.

Consumers today trust 90% of what they hear from friends and family, 80% of what a stranger says on the Internet and less than 20% of what a company says about themselves.

If you have a high NPS, you want to do everything you can to get your customers to share their feelings about you via social media.

Encourage them, and make it easy for them, to do so.

Here are six specific suggestions to make:

  1. You will feel better when you share your knowledge and expertise to help others.
     
  2. You're contributing to your network when you share your positive product and service experiences.
     
  3. You'll enjoy helping others make good choices. (Do you think this product or service would help some of your peers?  If so, how?)
     
  4. Tell a story about how the product or service helped address a need or solve a problem.  Don't ask for a testimonial.
     
  5. Engage customers to identify barriers and create solutions that help others.
     
  6. Promote a conversation or dialogue -- nothing too formal, rather helpful and informational.

Don't forget to thank your customers for their loyalty and for sharing.

On the contrary, if you have a poor NPS, you need to put some definitive steps in place to improve it, as well as engage the "detractors" before they begin sharing their dissatisfaction with you online.

Ideally you can handle their problem offline and get it resolved. If you are able to convert a dissatified customer into a satisfied customer, they are more likely to stay with you longer than the customer who never complains.

Why? You've earn the trust of, and built a relationship with, the person who was initially dissatisfied.

Are you using Net Promoter Score to inform your marketing?

Want to Accelerate Sales? Download the Free e-book

Tags: net promoter score, referrals, promoters, passives, detractors, customer satisfaction measurement and improvement

7 Ways to Leverage Promoters to Accelerate Sales

Posted by Tom Smith on Thu, Sep, 19, 2013 @ 06:09 AM

Promoters accelerate sales

 

 

 

 

 

We instituted a customer satisfaction measurement and improvement (CSMI) program using the Net Promoter Score (NPS) methodology.

The survey is simply three questions that should take a customer three minutes or less to answer:

  1. On a scale of zero to 10 where 10 is "very likely," how likely are you to recommend our company to a friend or colleague?
  2. Why did you give us that score?
  3. What would it take to earn a 10 from you?

Anyone who gives us a nine or 10 is defined as a "promoter."  Those that give us a seven or eight are "passives."  While those who give us a six or less are "detractors," and potentially harmful to our business.

We immediately contact any detractors and see what we can do to rectify their negative feelings about our product, service or company.

However, we also want to leverage our promoters since they can:

  • Shorten sales cycles
     
  • Increase the likelihood of closing a deal by being a reference
     
  • Increase close rates when they speak on our behalf
     
  • Drive brand preference in their peer group
     
  • Showcase best practices for passives and detractors

Here are 7 ways we leverage promoters:

  1. Create a reference database with as much information as possible about the promoter (i.e., product, sector, problem solved, geography, professional title, etc.)
     
  2. Promote opportunities for an ongoing dialogue
     
  3. Capture the dialogue in audio via webcasts and webinars
     
  4. Capture the dialogue in video
     
  5. Capture the dialogue in case studies and white papers
     
  6. Integrate all of the promoter's information into our CRM database
     
  7. Share all information via our website and social media channels and encourage our promoters to do the same

What do you do to promote your promoters?

Want to Accelerate Sales? Download the Free e-book

Tags: dialogue, accelerate sales, net promoter score, referrals, promoters, passives, detractors, customer satisfaction measurement and improvement

Top 10 U.S. Net Promoter Scores (NPS) for 2013

Posted by Tom Smith on Wed, Aug, 14, 2013 @ 06:08 AM

Top 10 Net Promoter Scores

 

Satmetrix the owner of Net Promoter Score (NPS) published its 2013 Net Promoter Industry Benchmark reports for the financial services, technology, online services, retailing, travel, hospitality, insurance and telecommunications industries.

For those unaware of NPS, customers are asked, "On a scale from 0 to 10, with '0' be 'very unlikely' and '10' being 'extremely likely,' to recommend the company, product or service to a friend or colleague."

Scores of "9" and "10" are recognized as "promoters."  Scores of "7" or "8" are recognized as "passives."  Scores of "6" or lower are "detractors." 

The percent of responders that are "detractors" are subtracted from the percent of responders that are "promoters."  The result is the net promoter score (NPS).

The top 10 NPS leaders are dominated by USAA and Apple:

  1. USAA - Insurance = 80%
  2. USAA - Banking = 78%
  3. Costco = 78%
  4. Apple - Laptop = 76%
  5. Dillards = 75%
  6. Nordstrom = 75%
  7. Apple - iphone = 70%
  8. Amazon = 69%
  9. Southwest Airlines = 66%
  10. Apple - ipad = 65%

The industry leaders for each sector are:

  • Airlines = Southwest at 66%
  • Auto Insurance = USAA at 76%
  • Banking = USAA at 78%
  • Brokerage & Investments = Vanguard at 56%
  • Cable & Satellite TV = Verizon at 32%
  • Cellular Phone Service = Tracfone at 39%
  • Computer Hardware = 32%; Apple = 72%
  • Credit Cards = 9%; American Express = 41%
  • Department, Wholesale and Specialty Stores = Costco at 78% 
  • Grocery and Supermarkets = Trader Joe's at 63%
  • Health Insurance = Kaiser at 35%
  • Homeowners Insurance = USAA at 80%
  • Hotel = Marriott at 62%
  • Internet Service = Brighthouse Networks at 29%
  • Laptop Computers = Apple at 76%
  • Online Entertainment = Netflix at 50%
  • Online Search and Information = 43%; Google = 53%
  • Online Services = Amazon at 69%
  • Smartphones = Apple at 70%
  • Software and Apps = TurboTax at 54%
  • Tablet Computers = Apple at 65%
  • Travel Websites = TripAdvisor at 36%

We used a three-question survey that took respondents less than five minutes:

  1. On a scale of 0 to 10 with 10 being extremely likely, how likely are you to recommend our company to a friend or colleague?
  2. Why did you give us that score?
  3. What can we do to earn a 10?

The consumer feedback and insights from the open ended questions were excellent and we have a repeatable methodology so we can measure our progress over time.

It's a great way to get quick consumer feedback to let them know you are concerned about their opinions and feedback. It's also a great way to initiate a dialogue with consumers.

I urge everyone to thank all respondents when they respond.

Ask "promoters" for referrals, testimonials, case studies and to share their experience with their friends and colleagues on social media.

Get back to "detractors" immediately to let them know you heard their concerns and work with them to get them rectified. If you can rectify the concerns of a detractor, they are more likely to be a long-term customer than a customer that never complains.

Lastly, get in touch with "passives" to see what you can do to turn them into a "promoter" rather than letting them slip to being a "detractor." 

Do you, or your firm, use NPS to measure customer satisfaction?

Want to Accelerate Sales? Download the Free e-book

Tags: net promoter score, referrals, promoters, passives, detractors, customer satisfaction measurement and improvement