Organizations touch their audiences in many ways, with multiple interactions across multiple brand touchpoints. These touchpoints are all of the interactive, static and human interactions that your company’s customers experience over the life of their relationship with your company. In short, the heart of customer experience lies in the ways they experience your brand.
Here’s the thing that many organizations seem to have trouble grasping: every interaction between you and your customers (or those you’d like to be customers) is part of the brand experience. Every single one, every single time.
This means that your brand attributes are communicated clearly – both positively and negatively, whether you like it or not – every time you “touch” your customer. These interactions include obvious touchpoints like advertising, your website, call center and sales team. Then there are those touchpoints that aren’t usually at the forefront of brand experience planning, such as Google SERP’s, billing statements, online customer forums and more. At the end of the day, virtually every point of contact between you and your customers impacts the customer experience. The lesson to be learned? Everything matters.
So when it comes to planning customer experience, keep their point-of-view in mind. Look at the customer relationship through the lens of his or her “journey” as individual interactions string together to create experiences, driving brand perceptions and attitudes. You’ll be amazed by what shows up when you start mapping customer experience. It often isn’t pretty, but it sure can be illuminating.
It’s pretty straightforward, in theory. Know what customers want and need at each stage of their relationship, and give it to them. Be consistent in what you say, how you say it, how it looks, and how what you say and do supports your brand promises. And always keep your customers in mind.
Simple, right? Surprisingly, it often can be. If you take the step of auditing a typical customer journey, you’ll likely be ahead of 90% of the competition. We see it every day – simple steps often lead to big returns. After all, knowing what the issues are is the first step to fixing them.
Last Friday, Toyota CEO Akio Toyoda apologized. To everyone. And he did it again on Tuesday, in the Washington Post. And again and again in a subtler way on national TV, with the currently ubiquitous “commitment” TV commercial.
There’s something refreshing about a (seemingly) heartfelt apology for mistakes made. “We screwed up,” he’s saying, “and we know it.” What’s not said but implied is obvious to parents (and consumers) worldwide: we’ve learned our lesson. Let’s fix it and move on. Maybe the ad’s a little sappy, but hey – it does a great job reminding viewers why Toyota is (still) the number one car company in the world. It’s actually heartening to see a grown-up stand up and take the heat.
After all, when’s the last time any of us saw a politician apologize with something other than crocodile tears of self-pity and shame, almost universally brought on as the result of stunning self-absorption, monumental lapses in judgment and a total lack of humility?
Perhaps it’s because humility isn’t a great brand attribute for U.S. based companies. Michael Useem, professor of management at the Wharton School at the University of Pennsylvania was quoted recently in The New York Times saying, “American culture does not put a premium on apology.”
Maybe not. But when it comes to driving brand loyalty, I’m much more likely to open my wallet for someone who actually seems to care. Good luck, Akio. Yeah, you screwed up. But I, for one, accept your apology. Just don’t do it again…
The more similar competing organizations are, the more important any difference becomes. And when meaningful differences are difficult (or impossible) to find in a product or service, the market will find differences outside of them.
Your customers will define you, if you don’t define yourself.
That’s why, for most organizations, the key to success is differentiation. Even if nearly identical in many ways to other competitive offerings, your prospects and customers do perceive differences. And these differences influence purchase decisions, and relationships.
But how do you define these differences? You start by gathering information, understanding the brand experience as well as strengths and weaknesses as perceived by your key audiences. Internally, this includes executives, management and customer-facing employees. Externally, garner insights from your customers, investors, prospective customers and others.
Taken together, this provides the data you need to create a perceptual map of your brand. This “brand map” will help you understand where you stand with your customers, and the market overall, today.
Where do you want to go… tomorrow?
Brand research, and analysis of the data that must both drive and validate your approach, doesn’t tell the whole story. It’s relatively easy to capture both “present state” and “aspirational” brand attributes, values, and differentiators if you are smart, are a research expert (or have a team at your disposal) and understand both your business, and the underpinnings of high-performing brands.
But what isn’t easy is to create true differentiation by relying totally on what exists today. Yes, building a brand based on “present state” values and attributes takes both strategic acumen and research skill. But defining a brand that truly says “We’re Different; We’re Better; We’re Special” takes something more. Simply interpreting the numbers won’t drive the type of category-defining brand that many high-performing organizations wish to become. Supported by defensible (and illuminating) market and brand research, it also takes creativity.
Mind you, we’re not talking about “blue-sky let’s see what sticks” creativity, but creativity rooted in a deep understanding of your vision, your culture and your customer experience. To build a truly differentiated brand, you need to define where you want to go, where the “ideal” customer experience intersects with business, strategic and market realities, and set a stake – a defensible, differentiated stake – in the ground.
As Harry Beckwith points out in the book Selling the Invisible, “Create the possible service; don’t just create what the market needs or wants. Create what it would love.”
“The greatest trick the Devil ever pulled was convincing the world he didn’t exist.” – Verbal, The Usual Suspects
In public relations, there is a little-known segment of experts whose jobs are essentially to keep their clients names (and deeds) out of the light of public scrutiny. These men and women are almost never quoted or noted, yet they are powerful enough to pull feats worthy of David Blain by causing major negative events to literally disappear in plain sight.
Every so often in the branding world, a similar feat occurs. What do you do when your brand strategy is to be invisible, or you need to remove traces or connections of a brand to negative events? Changing your name is one way to do it; simply turn to your brand strategist of choice for guidance. But it only works if you keep your mouth shut.
Take for instance Altria Group, formerly known as Philip Morris.
This company’s innocuous logo and unassuming name tells you nothing about who they are or what they do. There’s a reason for this: the once-respected Philip Morris brand (the biggest member of the Big Tobacco club) needed to duck under cover from a constant barrage of media scrutiny and legal attacks. Unlike their competitor Lorillard Corp. which has always tried to keep a low profile, Philip Morris spent years building its brand around cigarettes and beer (“the companies of your pleasures”).
Reinventing its brand as a brand representing “nothing” was a Seinfeld-esque stroke of genius. As Altria, the company is now able to fully express its altruistic side, because non-profit organizations that had previously distanced themselves from Philip Morris were (and are) only too happy to accept grants from Altria. And best of all, the Philip Morris name wasn’t gone entirely; it could be trotted out to take the blame for corporate sins and then retired to the closet.
An unfortunate (though extremely impressive) example of marketing smarts trumping morals, as the biggest name in tobacco literally disappeared in a puff of smoke.
Corporate Culture Rules: Why Xe will likely forever remain “the company formerly known as Blackwater.”
Then you have Xe. Founded as Blackwater Group, Xe is a multi-billion dollar corporation built by CEO Eric Prince into one of the largest military contractors in the world over 6 short but tumultuous years. But the last few years have been hard on their image. As five former Blackwater employees prepared to defend themselves on charges of killing 17 Iraqi civilians in 2007, civil suits and negative press abounded. What to do? Change your name. Company spokeswoman Anne Tyrrell said Blackwater was changing its name because “the idea is to define the company as what it is today and not what it used to be.”
Better tell that to the CEO. Not the kind of man to hide quietly and wait anything out, former navy SEAL and billionaire auto parts heir Eric Prince took up several pages in this month’s Vanity Fair pointing out how unfairly he and his firm have been treated. That’s all well and good – but if the point of your name change is to lower your profile, well, you need to lower your profile.
Lesson learned?
Two of the three “legs” of the brand experience triangle are related to the corporation. The vision comes from the top, and ideally closely aligns with employees to drive a consistent corporate culture. We suspect that Xe has these two nailed down nice and tight. But the other leg – customer experience – is the one that drives how the world sees you. In Xe’s case, their direct customers – primarily the U.S. Government – still seem to be happy with what they’re getting. But their indirect customers – the taxpayers who ultimately pay Xe’s bills – are getting another perception entirely.
Brands succeed most powerfully when they align with the passion of their people, and tap into the passion of their customers. Just look at Apple or Pixar. But sometimes, it’s best to keep your passion, and your point of view, under wraps.
Your brand is an experience, ideally resulting from a successfully planned and delivered combination of messages and interactions across multiple Touchpoints.
To keep these experiences (and brand perceptions) positive and appropriate, companies must consistently touch customers and prospects in ways that build satisfaction, trust and loyalty, at each stage of their Customer Relationship Lifecycle. This systematic process creates expectations that must be regularly met, resulting in customer confidence and an emotional connection–the foundation for all successful brands.
The downside, of course, is when good Touchpoints go bad. How many customers can you lose due to dissatisfaction to a call center employee with an attitude, or an accent they cannot understand?
You get it. It’s pretty simple, really: Managing the brand experience across all Touchpoints matters.
Brand Promise. Sounds good, doesn’t it? But what does it really mean to make and support these statements, and what is the cost of less-than-perfect delivery? In truth, achieving the outcomes that delivering on this can accomplish requires near-flawless execution in making, delivering, keeping, and reinforcing the brand promise.
While appropriately positioning the organization and the development of a branding and messaging platform are critical first steps, there must also be steadfast, across-the-board organizational commitment to developing and implementing the structure, systems, and staffing needed to effectively deliver on the promise.
Our experience shows us that the benefits of making and keeping a brand promise are well worth it. Here’s a quick primer on our point-of-view:
Defining (and Making) the Promise. Your promise needs to be relevant, compelling, believable and achievable – and supported by the values that drive your organization – to make a deep connection with your target audiences. To define it, you must understand your organization, your customers and your competition.
Delivering the Promise. The responsibility for delivering the promise message falls primarily on the sales and marketing team, while management and employees in the field deliver on the elements of the promise on a daily basis.
Keeping the Promise. Your success hinges on the competency and commitment of line staff, IT, call center, outsourced vendors, etc. to deliver on the promise at each Touchpoint. So much of your relationship with customers, and of your ability to keep your promises to them, will depend on the precise coordination and structure of your systems and staff. Leverage the processes, procedures and systems needed to effectively communicate with each other, and your customers will experience the positive results.
Feedback: Have we kept our promise? The only way to know that you are making, delivering, and keeping the right promises is to continually get feedback from your customers. Utilizing Customer Listening Tools – including those in MCorp’s Customer Experience Mapping toolkit – can be qualitative, or it can be a formal, quantitative process for measuring gaps between customer satisfaction, attitudes, and needs. Finally, processes must be in place for easily and systematically collecting, reviewing, and acting upon this feedback.
Those organizations that successfully connect with customers and deliver on a relevant promise reap huge, quantifiable benefits in areas such as retention, loyalty, customer NPV (“Net Present Value”) and LCV (“Lifetime Customer Value”). The flip side for those organizations which promise one thing and deliver an experience that just doesn’t match up is the cynicism, increased churn, and reduced loyalty and satisfaction which can negatively affect relationships with both internal (employees) and external (customers, analysts, partners, etc.) audiences.
Today, virtually all marketing and corporate executives believe that tracking brand and marketing metrics is important to their overall success. At the same time, few organizations consistently track the brand and customer experience metrics which could improve performance. Why? It isn’t easy. System-wide marketing and brand performance measurement is daunting and difficult.
But with a performance measurement strategy in place, every organization can begin to take simple steps with existing programs to understand, measure and improve performance, setting the stage for increased accountability, proof of ROI, and expansion of revenue generating programs.
Questions for Your Organization to Ask:
Would a better understanding of what a “performance dashboard” might look like help your organization plan for a measurement strategy?
Do you track some of your marketing programs consistently? If so, develop a strategy to track all recurring programs by the same set of performance metrics.
Have you considered the potential intersections of brand and marketing measurement programs through quantitative customer research?
How difficult would it be to choose a single customer metric – such as loyalty – and begin to track performance?
The connection between actual brand experience and customer expectations is crucial to the perceptions of your brand.
A deep understanding of the importance of alignment between the customer experience and brand promise is evidenced by the nearly one-hundred percent of customers who responded in a recent MCorp Consulting survey who – through a series of research methodologies, across retail customer segments – stated that this relationship strongly affected their perception of an organization.
At the same time, just over half of the organizations we’ve worked with feel that they are performing extremely well in this regard. In short, the more accurately aligned the customer experience is with the brand promise (and their expectations of the brand that your promise implies) the greater the positive influence your brand will have on your customer relationships.
How well aligned are your brand and customer touchpoints?
Taking a look at your own company, how closely aligned do you think experience and brand are? If you deliver what you promise across all your touchpoints, then you’re part of a thriving minority. Congratulations! But maybe there’s some discontinuity. Or perhaps you don’t know. If that’s the case, there are questions to ask to help you find the answers.
Does your brand accurately reflect the relationship your customers feel they have with you?
Do your employees deliver your brand in the same way customers feel about it?
Does management “buy into” your brand?
Does your market perception and brand promise match the brand experience across all your touchpoints?
What do your customers think of you vs. your competition?
For those organziations who get this connection, the threads that drive success are a combination of direction and obsession. Top-down direction from a leadership team that both understands and values the customer experience. And obsession on the part of everyone in an organization when it comes to delivering a consistent, branded customer experience.
From back-office operations and the call center to front-line, customer-facing staff, obsession with experience delivery and “expectation management” across touchpoints and interactions is a hallmark of customer experience leaders, across industries.
The Economy has slowed, but it has not (completely) stalled. Even as we plough through the unemployment statistics and wait for what most believe will be a long climb out of the “Great Recession,” as long as there are companies and people doing business, things will continue to be bought and sold. That’s why for many smart businesses, now is the time to grab this opportunity to increase customer loyalty, solidify market position, and get new customers.
The evidence is in, and supported by studies of every major slowdown since 1970: Marketing wins market share in recessionary times.
Studies conducted by organizations ranging from Business Week and Harvard Business Review to The Wall Street Journal support this contention, underlining the importance – and value – of marketing in an economic downturn.
In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980 to 1985 and concluded that at the end of 1985, “…firms that had maintained or increased their advertising during the 1981-1982 recession could boast an average sales growth of 275% over the preceding five years. Those who cut advertising realized a paltry increase of only 19%.”
Management Review asked AMA member firms about spending during the 1990-1991 recession. “Fortune follows the brave,” it announced, noting that the data showed that most firms that raised their marketing budgets enjoyed gains in market share.
And Harvard Business Review chimes in with this: “The rationale that a company can afford a cutback in advertising because everybody else is cutting back [is fallacious]. Rather than wait for business to return to normal, top executives should cash in on the opportunity that the rival companies are creating for them. The company courageous enough to stay in the fight when everyone else is playing safe can bring about a dramatic change in market position.”
The tipping point: where fear and opportunity collide
In spite of this overwhelming evidence, many companies are still tightening their belts, and the marketing budget is typically an early casualty. This is a mistake for two primary reasons. First, if you reduce spending on marketing, you will reduce the number of new customers. Direct marketing drives direct sales. And consistent brand presence is critical to keeping – and increasing – customer loyalty and prospect awareness. Second, (a direct result of the first reason) it is much easier to gain ground against competitors who have cut back on marketing. Why? It’s easier to drop below buyer radar as a result of decreased market presence.
This said, we recognize costs do need to be cut. So marketing smarter is more important than ever. From strategically leveraging social media tools to doing a better job of tracking brand, marketing and customer experience ROI, there are many ways to scale back dollars without dropping off the radar.
What’s the worst that can happen if you don’t step up your customer acquisition and recession activities?
You slowly leak customers and profits, and can’t keep the doors open long enough to participate in the recovery. It’s happened to plenty of companies already and there are many more to follow before we’re through. Or maybe you and your current competitor’s scale back your marketing, only to find a competitor you didn’t know existed come from behind to take over your market.
Today, the phrase “for every loser, there is a winner” has particular relevance. Your organization may be staying the course, cutting back or (let’s hope!) using this opportunity to aggressively dominate its market. No matter which direction you’re headed at the moment, it’s not too late to take steps to make sure you’re one of the winners. But don’t leave it too long…
1. Be Dominant: Many studies show that companies which slow marketing spending lose out now, as well as after a recovery. You want your customers to know that they’ve picked a winner, and your prospects to know you’ll survive – and thrive – in tough times as well as good.
2. Audit Your Brand your company or product brand accurately reflect who you are… and who you want to be? Is what you say you stand for believable – and important to your target audience? Make sure the brand you go forward with is the right one, and put systems in place to maintain its value. A consistent experience, a single “voice” and the way you communicate your brand in other ways is critical. If you are like most companies, your brand is the most valuable intangible asset your company owns. Improve it, and protect it.
3. Reevaluate Your Product and Service Mix: Are there ways you can repackage existing products or services in ways that can provide more value? Or, develop a product or service line that can accommodate smaller clients or customers with reduced budgets? Ask your customers – they’ll be happy to help.
4. Embrace Your Database: Your current database probably houses former customers and prospects, as well as current customers and suppliers. Now’s the time to go after them. Reactivate dormant accounts and leads with new products, promotions and services. Also, contact current customers for referrals. Give them ideas they can use to help their business in the current economy, and they’ll be happy to pass you on to others who could benefit from your knowledge.
5. Measure your Return on Marketing Investment: The problem with many marketing efforts is the inability of management to ascertain what really works, and why. That’s why smart marketers always measure outcomes so they know exactly where to invest for the greatest return. The more you test and measure, the more relevant data you’ll get. And the more data you get – and analyze – the smarter your marketing will get.
6. Cost Controls: Controlling cost does not mean cutting cost. It means being smarter with the budget you do have, and wringing greater value from every dollar you invest in your marketing program. Closely related to Marketing ROI, controlling costs allows you to invest your money where it drives the greatest revenue.
7. Launch a Targeted, Integrated New-Business Campaign: Now is a great time to launch a customer acquisition campaign. Set specific goals, tighten-up cost controls, and strive to sell product and build brand. Target your best customer segments through an integrated campaign across different media (including social and other online tactics) leveraging results-driven direct-marketing and customer engagement strategies.
8. Reevaluate Your Marketing Service Relationships: Are you totally satisfied with your marketing or PR agencies? What about strategic marketing counsel? Do you have a Social Media agency, or an expert on-staff? There are lots of smart practitioners out there, and many may be able to give you greater insight, higher levels of service, and greater value for your investment.
9. Enhance the Customer Experience: Do you provide “bullet proof” customer service? The cost of getting new customers is much higher than getting more business from existing customers. Each customer you lose is taking money out of your pocket over time. By improving customer experience – with a focus you’ll boost awareness, acquisition, loyalty and retention.
10. Increase Customer Insights: The more you know about your customers, the more accurately you can target brand and marketing messages to address their specific needs. To do this, marketing executives need to get down in the trenches. What do your prospects and customers want or need, and why? From voice-of-the-customer research to tracking your brand’s online reputation, it’s easier to gather real-time data – and act on it – than ever before.