All posts in Business

Recently Estée Lauder’s Digital Strategy premiered a video: Follow Consumer Behavior on FORA.tv from the WWD Beauty Conference featuring Lynne Greene, global brand president, Clinique, Origins and Ojon.

The WWD Beauty forum is looking to answer questions about brand creation, brand renewal and how to refresh and revamp a brand without doing damage to customer loyalty and perception. A big mention is digital. Digital has fast become a major player from blogs to eCommerce and to social media,  but what’s being said on digital may be falling behind the aspect of “following the behavior,” according to Greene.

In today’s market its hard to keep up with technology, as newer versions and upgrades seem to appear right after you just bought the last one.

This creates a challenge for marketers. They want to deliver the message that the latest product is better, faster, hotter than the last one and that you need it. They also have to protect their existing customers and either make them appreciate their existing product for longer or make upgrading to the newer product more affordable to reward them for their loyalty.

iphone 5

Apple often does this by timing platform upgrades for existing models around the time of new model launches.
This can help make existing products seem less outdated and overshadowed by the release of new products, while still being able to promote the new models.

An example would be the upgrade of the iPhone operating system before the iPhone 4 was released. The iPhone 3G and 3GS received a few great upgrades, such as multitasking, folders and the book store.

This is a very important strategy to get right, as Apple is near to launching the iPhone 5 not very long after the iPhone 4 was released.

It will be interesting to see the approach from some non-tech companies.

Nunwood’s strategy director David Conway looks at how insight has helped fuel the performance of the firms that came out top in the agency’s customer experience league table.

In his 2003 book The Fusion Manager, management theorist Robert Heller noted businesspeople’s intense preoccupation with finding the ‘one right answer’ – a belief that a wholesale adoption of a single idea (Total Quality Management, Six Sigma, NPS, Business Process Re-engineering) will lead to success.

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In fact, the only right answer is that there is no right answer, says Heller. The world is too complex for that – it is only through understanding and managing this complexity in a way that meets customer needs better than competitors that success can be achieved.

Nunwood recently published the top 100 league table of UK companies for customer experience, and those who lead the pack are not just masters at managing complexity, but have found ways to get up close and personal to thoroughly understand what their customers want.

Amazon, which tops the league table, resonates with its customers through its offer of the widest possible range of products delivered to exacting time scales. The recommendation engine, which processes huge quantities of customer insight every day, is viewed not as a crude cross-selling device, but as a valuable service identifying products which otherwise might have been missed. As a result, customers feel they receive a highly personalised experience. And more importantly, when things go wrong (as they inevitably must) Amazon responds rapidly and decisively to recover the situation and ensure it continues to deliver on the brand promise. The net result is customers who love the company. If Amazon ceased trading tomorrow, there would be millions of customers who would genuinely miss it.

In a financial industry fraught with problems, the exclusively telephone and online bank First Direct has become something of a ‘beacon brand’, winning not just customers but fans. It came in second on our list. As the bank’s brand supremo Natalie Cowen says: “It’s about creating an effortless and enjoyable process – which are ideas that don’t always go with banking.” First Direct is constantly talking to its customers about how it can improve – every month they measure their performance, striving to achieve industry-leading service – a great lesson in integrating customer service with customer insight.

For department store chain John Lewis and its supermarket brand Waitrose, which came third and fifth respectively, it’s all about listening to their employees. With a business model in which all staff are partners and co-owners, the John Lewis Group has mastered harnessing employee feedback and integrating their observations into brand delivery. When it comes to customer service these co-owners consistently go the extra mile because what is good for customers is good for them.

Marks & Spencer, which came seventh and its M&S Food brand, which came fourth, have clearly listened closely to their customers. The company has responded to concerns over the provenance of food and the wellbeing of those who produce it with large scale in-store statements of how it is improving its practices. This approach not only demonstrates their commitment to the brand promise, but also shows that they have listened to customer concerns.

For Virgin Atlantic, number six on the list, it’s all about being close to customers, taking every opportunity to show they really care. In a market where the low-cost carriers are lowering customer expectations, Virgin sets standards that put them apart. “Every airline should be like this,” one customer said. Its close proximity to customers is no accident as every quarter, Virgin Atlantic runs highly detailed customer satisfaction surveys. The surveys monitor everything from the punctuality of the flight departures to the length of check-in queues and the quality of the in-flight entertainment and service. Results of the surveys are fed back to managers globally and improvements continually implemented.

At positions eight and ten are, respectively, restaurant chains Nando’s and TGI Friday’s. Nandocas and Fridoids (as they call their employees) are carefully selected to be able to deliver the brand proposition. By creating a sense of theatre, both of these brands depend on the shared experience as a differentiator. But it’s their focus on the little things that sets these brands apart. For example, mixing drinks is all part of the show at TGI Fridays, and the company has made a special effort to make its cocktails more accessible, after research suggested people were sometimes nervous about ordering because they weren’t sure what the ingredients were.

At number nine is supermarket chain Asda, which is owned by Wal-Mart. With a market-leading price promise, Asda’s customers value both low prices and the friendly staff – a powerful combination. Using TV to communicate their extensive price-based research, the firm consistently reassures its price-sensitive customers that it is continuing to deliver the brand promise.

Increasingly the insight manager needs to be able to understand the whole picture of how their brand relates to their customers, taking into account service quality and customer experience. And while there might not be ‘one right answer’ to fix your business, it does seem that the ‘one right answer’ when it comes to delivering outstanding customer experiences is: listen to your customer.

Source: Research Live

Twitter is a popular mechanism for customers to contact brands, but it can cause issues if questions or complaints are left unanswered.

Vodacom has often been fairly quick to respond and deal with customers on Twitter, but it has filled the companies main Twitter feed with a lot of direct feedback that is not meant for it’s larger audience.
It was a smart move by Vodacom to create @vodacom111, which is a 7 day a week dedicated customer care account much like it’s phone version when you dial 111.

vodacom customer service

iPad – The Laptop Killer

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Some recent statistics from Morgan Stanley Research don’t look great for the future of the notebook. This could be due to the increasing popularity of tablet pc’s, which are quickly proving to manage similar tasks one would perform on a laptop, but with the benefits of size, weight and battery life.

Morgan Stanley says: “tablet cannibalization.”

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How to boost staff productivity

In our latest article, Do ‘excellent companies to work for’ provide better quality customer service?, we introduced the concept of a holistic approach to customer service.  The article demonstrated that there is a link between staff satisfaction with their roles in the companies they work for and quality of customer service, based on results from the getclosure Customer Centricity Ratings and the latest Job Crystal Happiness Indicator.
To have top quality customer service and retain your customers, you need to ensure that your staff are happy and motivated.  Here are a couple of suggestions of how to do this:

Engage with your employees

Build a corporate culture that requires employees to be an integral part of the company – talk to your employees about the overall mission and values of the company and about how their efforts contribute to achieving it.  Work out what method of communication works best, and use it to give your employees regular feedback, suggestions and tips.  Remember to ask them for their suggestions and feedback too.

Empower your staff to make decisions

“Job dissatisfaction usually boils down to not feeling recognised, or not seeing how you are making a difference,” said Kevin Laithwaite, managing director of JobCrystal, the only interactive talent management portal in South Africa. “Combine this with the trend, started in the IT world, that you work on a project, rather than for a company, for a set period of time and then move on.

“Typically employees expect these project groups to be fairly autonomous, with significant decision making powers. So as an employer, if you want keep your staff happy and hang on to your top talent you need to supply them with the tools and information they need to do their jobs, and then let them get on with it.”

Offer a work schedule with as much flexibility as possible

Staff satisfaction and productivity are almost guaranteed to improve if you give your employees the opportunity to avoid the worst of the traffic, squeeze in a doctors appointment or watch their son’s first rugby match.  This doesn’t mean they should work fewer hours, just that they should be able to start or finish early, or work some of the day from home.  With smart phones and increasingly affordable broadband, this is more and more possible in a number of industries – you just need to make the mind shift and embrace this way of working.

Article by: Emma Donovan, Content Manager of www.getclosure.co.zagetclosure is South Africa’s leading independent complaints management and consumer affairs portal.  The getclosure service is fast, free and effective for consumers.  All suppliers have the opportunity to respond to complaints on the getclosure site, free of charge.  getclosure also makes a host of consumer rights news and information available to South Africans.

Marketing and Research Roundup

Craft An Irresistible Price By Focusing On Your Users

Price influences behavior. In order to craft an excellent user experience, the price — and how your users interact with that price — must be central to the development of the product, especially applications. No user will welcome an application if the cost is prohibitive. This makes price every bit as important as design, information architecture and wireframing, and it goes deeper than just getting people to click “Buy.” By focusing on users in setting and maintaining a price, you will increase revenue, lower overhead and, most importantly, significantly improve the user’s (read customer’s) experience. Read More

Google Wave is Dead

Google Wave, the revolutionary product, platform and protocol for distributed, real time, app-augmented collaboration will no longer be actively developed and may be shuttered after the end of the year, Google announced this afternoon. Read More

Vanity Purchases Are All About Image Even in a Recession

Vanity purchases occur when a customer buys a product with the intention of using it to enhance or support their perceived personality or, as we call it in the Consumer Buying Behavior tutorial, their self concept. Read More

Train your customers

Yes, you can train them. By rewarding some behaviors over others, by keeping some promises not others, by having some expectations instead of others, you get the audience you deserve. Some things you can train customers to do… Continue Reading

Turn More Visitors into Buyers with Adwords Ad Sitelinks

Ad Sitelinks is a new Adwords targeting feature for sponsored search ads that allows you to extend the value of your existing AdWords ads by providing targeted and specific links for searchers whose keyword triggered your ad. Read More

500 Million People Hate Facebook

A survey recently by ForSeewent out called the American Customer Satisfaction Idex, which added a few social media website this time, provided some interesting feedback on what people think of Facebook.

The feedback was primarily of dislike for Facebook, which is surprising when looking at its gigantic exponential growth, while closing in on 500 Million users.
It is also quite obvious that due to it’s size and lack of competition, users simply don’t have anywhere else to go. It’s a monopoly.

Google is planning to launch Google Me, a Facebook-like service and it will be interesting to see the impact on Facebook if Google manages to launch a service that people love. It could be the MySpace/Facebook war all over again.

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Live Labs, an image/tech/data contingent of Microsoft has launched PivotView, which is visualisaton data tool that takes large chunks of data and presents it in a usable and visual way.

PivotView makes comparing a topic easy by placing everthing on one page with images which can lead to furthur information, rather than having a whole bunch of pages open and having to sift through them all.

The project is an ongoing development and can be downloaded here.

microsoft pivotview

Vuvuzela Facts (Infographic)

The Vuvuzela has always been popular in South Africa, but quickly gained worldwide interest during the 2010 World Cup.

It became a trending topic on twitter, it was seen in the hands of the Google Street View man and it was added as a special feature on YouTube.

Here are some facts and figures on the Vuvuzela.

vuvuzela-infographic