Over communication – It is estimated that customers are exposed to between 800 to 2000 advertising messages per day.
Traditional media dilution – Due to the advent of cable TV, MP3 players and the web.
Increased choices and competition – Look at the number of fashion outlets, types of milk and mobile phones that are available now in comparison to the past.
Customers now have unprecedented access to information - with a few clicks they can look at how hundreds of other customers rate your product, or get independent reviews on products and services.
In this environment merely satisfying customers is not enough, as you have only met customer expectations not exceeded them. However, for many organisations customer satisfaction is still a key goal.
Net Promoter Score®
To guarantee success you need to move beyond satisfaction to creating promoters for your Brand. To achieve this many organisations are embracing the Net Promoter Score® developed by Fred Reichheld.
Customers are asked the question How likely are you to recommend us to a friend or colleague?. Based on their response they are categorised into three groups.
The percentage of Promoters less Detractors gives you your Net Promoter Score®.
Iconic organisations such as GE, Intuit, Microsoft, ebay, American Express, Charles Schwab, Apple, Logitech, Macy’s, The Wall Street Journal and the Harvard Business Review are some of the many organisations that use this unique metric.
The reason for its popularity is that it is easy to understand and has a strong correlation to growth. We believe this is a great measure and makes intuitive sense however the Net Promoter Score® is an end business outcome. The key issue is what do you need to do to achieve a high Net Promoter Score®? See how we implement the Net Promoter Score®
So how do we help our clients retain and acquire new customers in this environment?
In our experience if you want to foster an environment that increases the number of customers that promote you to others you must have absolute clarity and alignment with the following elements:
customer value proposition
brand
internal culture
customer experience
We work with you to develop customer value propositions that are unique and differentiated.
We help to build strong, focused brands that customers can relate to.
We help you build great customer experiences based on strong customer insight and delivered by staff that understand your strategy and direction and are strongly committed to making it a success.
Most importantly we ensure that your customer value proposition, brand advertising, internal culture and customer experience are strongly aligned.
Worldwide research that confirms the importance and links between Customer Value Propositions, Brand, Culture & Customer Experience:
Organisations with a clear understandable shared vision and values are five times more likely to achieve long term growth and success (Volvo, Nordstrom, Sears etc)
Source TARP International 1999 UK Benchmark Study.
70% of customer brand perception is determined by experiences with people.
Source Ken Irons Market Leader, Winter 1998.
UK Retailer: 1% increase in employee commitment equates to a 9% increase in
monthly sales
Source: enterprise IG case history for CLF UK, 8 July 2004.
Finally a study in the UK that brings brand, culture and shareholder returns together.
In a study that looked at 5 year returns to shareholders, if the S and P Index = 100, companies with high brand ratings from consumers scored = 160 and companies with high brand ratings from BOTH consumers and employees = 320. Source: The Vivaldi Brand Leadership Study 2002
So how do we apply this thinking in a practical sense?
At Engaged Marketing we have developed a tool called the Total Engagement Model™ that seamlessly aligns your brand, culture and customer experience. These key components are all held together by your unique customer value proposition resulting in engaging advertising, staff and ultimately engaged customers.
We do this by working closely with you and utilising our proprietary templates, processes and tools.
