• Kelly Hlavinka

    Enterprise Loyalty: Three Principles to Consider

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    Today's successful companies know the truth: the customer is king. And forward-thinking marketers are aware that gaining customer insights, through understanding data, is queen.

    But transforming the chessboard of business — which has traditionally been a product-centric, silo-based environment — towards customer-centricity won't happen in one straightforward move.

    Companies must embark on a strategic journey influenced by customer insights gained through transactional data and allow those insights to create shifts in mindset, culture and strategy across the entire enterprise – everywhere from merchandising and store layout to pricing.

    By transforming the customer experience through data and analytical insights, Enterprise Loyalty is Loyalty with a big "L.” The fundamental concepts of Enterprise Loyalty are hardly new to experienced marketers. Most already agree — in theory — that customer-centricity illuminates the path to future success in retaining loyal customers.

    You may know that Enterprise Loyalty is the direction in which you need to go, but if you are like most enterprises we talk to, you're not sure how to get started. With so many efforts at stake, from purchasing the right technology to getting buy-in from the C-suite, the transformational journey is a daunting one. Or, perhaps you've heard about companies that are using their data holistically but you aren't sure how to put it into practice in your company. Sound familiar?

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  • Bob Thompson

    Fear, Uncertainty and Doubt: My AT&T DSL Customer Service Experience

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    Despite what the title of this blog post implies, AT&T service representatives all did a good to excellent job helping me solve (maybe) problems with a balky DSL connection.

    So this post is not meant to slam AT&T, but rather serve as a teachable moment. Because sometimes good intentions and even good actions don't add up to genuine customer loyalty.

    Loyal to AT&T? Not so much

    Speaking of loyalty, I suspect AT&T thinks I'm a loyal customer. I've been a DSL and business phone line customer for 10+ years, since switching from another DSL provider that let me down. When I've interacted with AT&T staff, I've generally been pleased.

    But cracks are appearing in my presumed loyalty. When my wife and I moved into our new condo, we decided to split our business between AT&T and Comcast. Both have bundled services for TV, phone and Internet, but we didn't feel comfortable putting all our digital eggs in one basket because:

    • Comcast's cable service went down occasionally, which is no big deal for watching TV but a big problem if it means (in my mind at least) an Internet outage.

    • AT&T's U-Verse was (in my mind at least) unproven for TV/cable replacement. Our friends liked the service but we couldn't figure out if/how the cabling would work in our condo.

    So when we moved in, the edge went to AT&T. But we decided to try Comcast's VoIP for our home phone. And keep our options open for the future in looking for an integrated service.

    Fear

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  • Maz Iqbal

    Extreme Trust: can honesty be a means of competitive advantage? (part 1)

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    I enjoy reading what Don Peppers and Martha Rogers write.  In fact their point of view spoke to me in such a way that it called me to join up and become a part of  The Peppers & Rogers Group, for a while, back in 2000.  Don and Martha have published a new book Extreme Trust.  In this series of posts on trust I am going to share with you, comment upon and explore topics that are addressed by Don and Martha in their book.

    Does trust matter?

    Why don’t you take the salesman at his word and buy what he is selling you?  Because you have learnt that what is in the interests of the salesman, to make a sale and take our money, is not necessarily in your interest.  Why don’t you accept the advertising put out by companies?  Because you have learnt that advertising, as a whole, is not truthful – you know that it has been designed carefully, purposefully, to push your buttons so that you buy.  Put differently you simply don’t trust the advertising.

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  • Richard Shapiro

    Don’t Issue Loyalty Cards Without Loyalty

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    I am an advocate of generating repeat business by building relationships with people, not with a piece of plastic. Too many companies create loyalty programs for their customers which don’t create a true bond. Reward points can be the icing on the cake to demonstrate customer appreciation, but companies should not depend on these programs to build customer relationships.

    I have found that in the majority of cases, people re-visit specific establishments because of the connections they have made with the servers or sales associates. They go to the same coffee shop each day because John, the server, gives them a big smile when they enter. He knows their name, their typical order and when he tells them to have a great day, he really means it. John at the coffee shop is eager to see his customers and his customers are happy to see him too.

    If you want to create loyal customers, ones who will only visit your business instead of your competitor’s, make sure you hire folks who are welcoming and who let the customer know they are looking forward to seeing them again. It doesn’t matter whether it’s a coffee shop, service station, food-mart or an apparel store; hire people who innately understand how to build relationships. Instead of rewarding your customers with points, provide them with the best prize of all; people who really care about them as a person first, and a customer second.

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  • Phaedra Hise

    Loyalty Binges That Leave Companies Starving

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    I'm not a “buffet” type person. Those all-you-can-eat plans kind of gross me out when it comes to food. I'd rather get one of those tiny, overly-styled servings at a pretentious foodie restaurant. And, of course, I pay a ridiculous amount of money for my medallion of squab liver with rose petal foam.

    But when it comes to data, I'm lining up at the feeding trough with the rest of the gluttons. And AT&T doesn't like that, according to Randall Stephenson, AT&T's CEO. Stephenson expressed regret earlier this week about offering an unlimited data plan for the iPhone. AT&T has since discontinued its initial $30/month unlimited data plan in favor of tiered pricing. But like many others, I'm a legacy user. I'm burning data at a flat rate, while AT&T has to pay for it at a variable rate, so I'm costing them money.

    Some loyalty programs are making similar mistakes – United Airlines, American Airlines and Southwest got a shout out in the Chicago Tribune for offering “too good to be true” rewards for their airline credit card programs. Benefits include free bag check for up to eight travelers, cash back and enough bonus points to qualify for a free flight almost immediately.

    As LoyaltyOne CEO Bryan Pearson points out in the piece, it's only a matter of time before the airlines figure out that – like AT&T – it's costing them more than it's worth to bring customers in. When it comes to rewards programs, it's easy to get so caught up in the excitement of offering compelling benefits that marketers sometimes forget to do a little basic math.

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  • Annette Franz Gleneicki

    Breaking Up is Hard to Do

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    Did you know... when customers cancel their subscriptions or their memberships, it's not the end of your relationship with them? Clearly, it's not a stage that you ever want to reach in the customer experience lifecycle, but if you do get there, it doesn't have to be over. And more importantly, you don't have to treat the customer like it's over. It's not.

    I know. I know. Breaking up is hard to do. But don't treat customers with anger and frustration if they decide to cancel or move on. Don't process their cancellations begrudgingly. As a matter of fact, be gracious, grateful, and make it easy for them to cancel, if they need to.

    Why is this important? Two reasons:

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  • Lisa Biank Fasig

    When Choosing Means Losing Time

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    On a recent trip to a popular local pottery shop – the kind of place where everything is made on the premises by hand – I was faced with an unexpected dilemma: Which two of the ceramic birds should I choose as Mother’s Day gifts?

    The issue was not bird species or price – they are all the same bird, same price, same size. But the same bird came in three colors, each decorated in three distinct designs. Nine different birds.

    I joked with the owner about how lucky we are to have so many choices – it’s like choosing toothpaste! But I still second-guessed my selection as I drove home.

    Then I saw the headline in the New York Times, “Making Choices in an Age of Information Overload.” Yes! Exactly! The problem was not that I had too many birds to choose from. The issue is that I have become so conditioned to choices, and researching them, that I pretty much anticipate complexity with every purchase.

    In the Times piece, the author discusses the art of brand “signaling” or product cues that distinguish certain brands and services from others. These cues are supposed to make choices easier for us. He illustrates by detailing how, after his own extensive research that proved all baby formulas are pretty much the same, he still inexplicably found himself spending more for one particular brand.

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  • Carolyn Hall

    “I don’t care about your processes, I just want solutions”

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    I upgraded my mobile phone recently, and went to my network provider’s local store to do it. While I was there, there was another customer service story unfolding and I confess I did eavesdrop a little. Well, it takes ages to get all your numbers transferred from one phone to another, what else was I to do?

    There was a customer in the store who had been with the network provider for years and couldn’t get his new phone activated. There didn’t seem to be any reason for this, other than a series of internal processes that required him to either be somewhere else, or wait another day, or something. All told, he was obviously very frustrated and this was apparently the third day in a row that he’d been to the branch to sort it out. Each time, the staff said it would be sorted “tomorrow”.

    The staff in branch were talking to the contact center to try to resolve the issue, but no matter what option they suggested, they met with a resounding “no”. Eventually the customer spoke to the call center again. I was struck when he said;

    “I just want my phone to work. Give me a solution. Everything you’ve said is about your processes. I don’t care about your processes, I just want solutions”.

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  • Gary Bembridge

    Influencers versus advocates. Which is more important for your brand?

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    Recently I wrote about Influencers (what is online influence, and why is everyone desperate to measure it?). In this, I look at what the difference is between an "influencer" and a "brand advocate", and why both are important. But why "brand advocates" are more important for driving sales, and how to engage with them.


    With all the focus on “influencers” and the obsession and battle to measure and track the size of their networks, there is a risk that marketers confuse INFLENCERS with ADVOCATES.


    ADVOCATES will actually be more key for your brand or business than INFLUENCERS.
    • Brand Advocates will be more important in driving your brand as they have passion and will be evangelical about it. Usually without you actually having to incentivize them to do so, unlike with Influencers. They will do it because they love your brand, and want to spread the word to others.
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  • Adrian Swinscoe

    Connecting the dots of word of mouth, customer loyalty and customer service

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    connect-the-dots


    A recent piece of research from Clickfox got me to thinking about word of mouth, customer loyalty and customer service and if we should be thinking about ‘connecting the dots’ between them. In many cases and in many companies these three things can exist in isolation of each other.

    However, the Clickfox research found that the best places to earn loyalty were at the point of purchase/service (49%) and at the point where a customer has an issue that customer service has to deal with (40%). The research goes on to say that 78% of happy customers reward companies that have earned their loyalty by talking about them – word of mouth.

    Clickfox Customer Loyalty


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