Category Archives: Uncategorized

Thinking Differently is a choice

Finding new and better ways to do anything requires you to approach whatever it is differently. Apple were the first to capture and promote their approach so publicly. However, thinking differently is not owned by them, it is owned by anyone who wishes to challenge the status quo in their industry or area of focus.

So putting Apple’s approach to innovation way to one side( lets leave others to debate that), just thinking differently when approaching current problems or challenges is a really good start if you want to find new and better ways of solving anything. In our instance, we apply that belief to helping organisations care for their customers better using a Service Design approach.

Enjoy the Think Different Manifesto which Apple have stuck to with great discipline stuck to for decades – not falling for the features and benefits trap of many companies.

Think Different

(Apple Computer Ad Campaign)

Here’s to the crazy ones.

The misfits.
The rebels.
The troublemakers.
The round pegs in the square holes.
The ones who see things differently. They’re not fond of rules.
And they have no respect for the status quo. You can praise them, disagree with them, quote them,
disbelieve them, glorify or vilify them.
About the only thing you can’t do is ignore them.
Because they change things.

They invent.    They imagine.    They heal.
They explore.    They create.    They inspire.
They push the human race forward.

Maybe they have to be crazy.
How else can you stare at an empty canvas and see a work of art?
Or sit in silence and hear a song that’s never been written?
Or gaze at a red planet and see a laboratory on wheels?
We make tools for these kinds of people.

While some see them as the crazy ones,
we see genius.
Because the people who are crazy enough to think
they can change the world, are the ones who do.

Use the ‘Customer Loyalty Formula’ to keep customers coming back

I found this article by Kevin Stirtz which I thought was a pretty good insight into the increasing demands of customers in a tighter economic environment. It is a reminder that although we may have a set of loyal customers, keeping them is not a static equation, it is constantly evolving  and challenging process that requires a new toolset and skillset to solve these service challenges. It is not by using old creativity tools developed for and used by manufacturing organisations.

That’s why using Service Design is so important  in helping Service based organisations that represent 70%+  of First World economies GDP. Over to Kevin…

According to a recent study, many big consumer brands are losing their loyal customers. It revealed that 52% of highly loyal consumers either reduced their loyalty or defected completely from the brands in the study. Further, only 4 out 10 brands in the study retained 50% or more of their highly loyal customers from year to year.

A big reason for this, according to the study is the recession. The economic downturn has caused customers to re-evaluate what they’re getting for their money. Our priorities have changed so what we look for in products has changed too. Many customers are looking for more value in the products they buy. And if the big brands have not changed, at least in the eyes of their customers, then customers will defect. They’ll try other brands that appear offer more value.

A way to look at this is by using what I call the Customer Loyalty Formula. Here’s how it works:

Customer Loyalty = Connection * Value  * Experience

(Or CL=C*V*E for short.)

In this formula, Connection means, as a customer, how connected you are with the brand? Can you easily and conveniently communicate with people who represent the brand?  Value means your perception of what the brand offers you in the context of what you want and expect. Are you getting what you want or more? Do you feel the brand offers you the best combination of features and benefits for the price?

Finally, Experience here means how have you experienced this brand? Have you been treated well by the people involved? Do you have a positive emotional feeling associated with the brand?

This formula tells us where many big brands have failed in this recession.  They have failed to redefine their value. For a brand to keep our loyalty it has to change with us. It needs to show us it offers more value than before.

If you would like to see the whole article, please click here

How to reduce Price Discounting by increasing focus on Customer Experience

Walk around any Shopping Mall in Australia and you will find it hard to find the stock for all the “on sale” and “40% off sale” signs that are plastered across retailers stores. The same goes for airlines, telecommunications and B2C and B2B organisations. Everyone is having to work much harder for the sale and are quickly resorting to price discounting to get their customers to buy from them.

In a recently published research report called “Customer Service Trumps Price,” 4,600 consumers were asked how they choose the companies they do business with across 12 mainstream industries.

In particular, it asked consumers to rate the importance of two criteria: good customer service and low prices. Here’s some of what was found when the data was analysed across five generations of consumers:

* Across all 12 industries (and every generation of consumers), good customer service was selected more frequently than low prices as being important.
* When it comes to the gap between good customer service and low prices, seven industries have double-digit spreads, led by banks (31%) and health insurance plans (18%).

Given nearly everyone has pulled or is close to pulling the price lever, this month I thought I would share with you an approach which is proven to reduce reliance on price discounting.

In a great 12 page mini-book written by Bruce Temkin who is the Vice President and Principal Analyst at the respected Forrester Research focusing on customer experience, he has used his extensive research to compile the 6 laws of customer experience.

1) Every interaction creates a personal reaction.
2) People are instinctively self-centred.
3) Customer familiarity breeds alignment.
4) Unengaged employees don’t create engaged customers.
5) Employees do what is measured, incented, and celebrated.
6) You can’t fake it.

While some isolated situations may not follow these 6 laws, they accurately describe the dynamics of customer experience for large organisations. Anyone looking to improve customer experience must understand and comply with these underlying realities.

With all companies challenged and marketing budgets cut back in this environment, keeping how to keep your customers (and keep them happy) is the key currency.

Whether you lead a service organisation or you are looking to find ways to add services to your product range to generate new opportunities for growth, if you are looking for ideas on how to improve your customer’s experience, I know you will find this article extremely valuable.