B2B Marketing in 2014 - What's Changing? Joel Harrison, B2B Marketing
B2B marketing bucharest 2012
description
Transcript of B2B marketing bucharest 2012
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Are you realizing the full potential of your customer relations?
Customer Centricity in B2B Markets
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Stefan Kolle (@flb_stefankolle)
Welcome
We’re no gurus, seminar pro’s or professors …
We’re just some guys who’ve been there too (and still are)
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We are business strategist with a passion for customers, innovation and profit
We deliver new profit opportunities through customer-centricity, commercial sense and hands-on innovation
19/04/2012 3
“Like an architect,
we add to the
vision of our
clients and
manage their
agencies and
vendors towards
the desired
result.”
Futurelab International
Hoornzeelstraat 24
3080 Tervuren
Belgium
T: +32 2 7338332
F: +32 2 7065772
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We do more than consult, we want to right what is wrong
Opinionated – a desire to make a difference – unafraid to take the high road
• + 10,000 articles
• 75,000 regular readers
+ 10,000 followers
+ 350,000 readers
Regular speaking & media
appearances
Recognition Thought leadership
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I think of whales
We talk about them
Somehow we care
We even try
But in the end,
month’s bills must be paid
When I think of customers
FUTURELAB
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Exhibit # 1
Customers are the whales of the corporate world
80% of them believe they offer a superior customer experience
8%
Source: Bain & Company
of their customers agree
FUTURELAB
Virtually all CEO’s consider the customer experience to be important
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The customer evangelists say:
• They will be more loyal
• Customers pay our salary
• They will talk well about us
• It’s important
The business hears:
• This may cost money
• This sounds complex
• Another marketing hype
• Yes, this will cost money
See customer experience as a “moral imperative” Most companies
FUTURELAB
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“Why should I allocate precious
budget to experience?”
You get paid in Euros,
Not in happy faces.
There’s only one problem with this
FUTURELAB
FUTURELAB
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FUTURELAB
The next half hour
How to break through this disconnect
Create some happiness Create sustainable, organic
growth (i.e. make more money)
Our mission: A more customer-friendly world
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The good news
There is an intuitive case linking money to experience
The same coffee beans
The futures market (nov 2011)
in a package at the grocery store
at Nespresso
in a paper/plastic cup from a machine
from a machine in a theme park
in a cup in a big city café
at a deluxe restaurant
during my honeymoon with a glass of
100 year old Armagnac
Cost per cup
€ 0.01
€ 0.075
€ 0.40
€ 1.00
€ 2.20
€ 2.50
€ 5.00
I haven’t got a clue!
FUTURELAB
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The good news
Best practice experiences exist
Discounts?
You must be joking.
FUTURELAB
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General satisfaction or marketing rethoric won’t cut it The bad news
FUTURELAB
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80% were “satisfied” to “very satisfied” When surveying the satisfaction responses of ISP defectors in the 12 months prior to their defection
FUTURELAB
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55% Year-to-year churn rates are normal in classical music In spite of a standing ovation
(cc) Jorge Franganillo
FUTURELAB
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European B2B brand Real Case
“When it comes to customer
experience we’re doing fine. All
our customers are very satisfied.
The only problem is that they don’t
return to buy again.”
FUTURELAB
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Self Reflection:
Do YOU Expect Not to be Satisfied?
Customers “pay” to be satisfied The simple truth
FUTURELAB
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Enter Fred Reichheld
We need something else …
Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
FUTURELAB
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How likely are you to recommend The ‘ultimate’ question
Detractors: Dislike Promoters: Delighted Passives: Satisfaction
FUTURELAB
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Customers who recommend you, are more profitable The ‘ultimate’ question – most important finding
spend more
negotiate less
stay longer as customers
are more open to upselling
are easier to service
upgrade quicker
are ready to refer to others
increase staff morale
etc.
Customers that are so happy they
are likely to recommend a company
FUTURELAB
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This time, there is a money link The ‘ultimate’ question – most important finding
Detractors: Dislike Promoters: Delighted Passives: Satisfaction
FUTURELAB
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This time it’s personal The main reason
FUTURELAB
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And its even stronger in B2B The main reason
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Promoters are more profitable
Philips used customer experience to drive revenue
FUTURELAB
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Client case Disguised numbers
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Customer Delight is “the” biggest driver of future business growth …
Likelihood to Repurchase (B2B-markets) Share of Wallet (B2B-markets)
“delighted customers are 5x more likely to
(recommend) repurchase”
“at the point of delight, there is an exponential
increase in the share of wallet”
Source: http://www.ipsos-ideas.com/library/dl.cfm?pdf=IpsosLoyalty_WP_Delight.pdf
Customer Delight The game is not about “customer satisfaction” … it’s about “delight”
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5:1
The worst I’ve ever seen
6000:1 The best I’ve ever seen
FUTURELAB
Promoters are more profitable
Personal experience in 15 industries … and counting
FUTURELAB
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Promoter
9-10
Detractor
0-1-2-3-4-5-6 Passive
7-8
# Purchases over life time
# Service visits over life time
___________
___________
___________
___________
___________
___________
___________ ___________ ___________
Customer Value ___________ ___________ ___________
Margin on purchase of printer
Making the case
Printer case
Word-of-mouth effect (+/-) ___________ ___________ ___________
Total Customer Value ___________ ___________ ___________
ASSUMPTIONS
• Printer price: RON 500-2500
• Average life: 5 years (warranty 3 years)
• Avg. service visit: RON 50 Margin
FUTURELAB
RON 50 RON 150 RON 250
1 3 10
2 10 50
RON 250 RON 950 RON 5.000
RON 500 -/- RON 500 RON 4.350
RON 250 -/- RON 1.450 RON 9.350
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Breaking the CEO Dilemma So, how do we implement this?
Cost to make them happy
Customer value increase = ROI
FUTURELAB
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perception
80% of CEO’s believe their brand provides a superior customer experience
8 % of their customers agree
(Bain & Company)
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The bottom line: with customer experience we’re
We’re not talking about the fluffy stuff
“Let’s spread love & hug” “Let’s be like Disneyland” “Let’s go WOOOOOWW!!”
FUTURELAB
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In fact
The experience IS the product
FUTURELAB
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Defining “what is the experience”
The experience IS the product
I sell overpriced, underspec’d
devices with poor battery life.
It just works
A low performance gaming
console with few titles.
This is cool!
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Defining “what is the experience”
The experience IS the product
CEO: I need to be sure that the
strategy I want to propose will be
supported by the board.
“Nobody ever got fired for
buying....
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This disconnect is the problem
Most companies roll the dice on customer experience
FUTURELAB
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Pre-sales Sales After Sales
The Traditional Perspective
Search Evaluate Try Select Wait Search *** *** *** ***
* * * = Confidential
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The Customer’s Reality
Case
A radically different perspective
FUTURELAB
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RFP Development Delivery
The Traditional Perspective
Latent
Problem
Self-
study
Discuss
@ office
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The Customer’s Reality
Informal
RFI
RFP
Prep RFP …
Case: Professional Services
A radically different perspective
FUTURELAB
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Customer Experience Management
Is about managing emotions at each step of the journey
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FUTURELAB
69% of consumers say emotions drive their
customer experience
Source: strategic resource development group, 2006
In B2B, the average impact of emotional
motivation on loyalty outweighs rational
motivation by 2:1 margin, in both goods and
services
Source: Synovate Meta-analysis of 275 studies, 2008
Remember
Experience is about emotions
The amygdala did it
FUTURELAB
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Remember
Emotional Satisfaction
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Remember
Emotional Engagement
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NOT rolling the dice
Case: Metro Bank
There’s more
Leave the bank with
your card
Have a coffee next
door if you need to
wait (with alerts)
Friendly & smiling
recruitment policy
FUTURELAB
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Structural listening: You want to dig deeper
Case: a greek bank
I take care of my family,
my employees and my
community. Above
everything I want respect
and recognition for that.
FUTURELAB
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Listen , I shouldn’t say
this but I actually like
your December events in
London best, as it allows
me to get in some
Christmas shopping.
Structural listening: You want to dig deeper
Case study: a training company
FUTURELAB
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Surveys – market research – customer feedback systems …
Do you listen, or gather information to write reports?
Aren’t we already
listening enough?
FUTURELAB
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But obviously you can’t speak to everyone
A structural listening mechanism
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Derive recommendations for
improvement
Implement
initiated action
NPS survey
Plan and initiate
concrete actions
Prepare and
analyze results
Execute Feedback
Calls
Initiate
Quick
Fixes
Listen to each customer
Tactically close the loop
FUTURELAB
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A structural listening mechanism
B2B: Look at individuals, not at accounts
FUTURELAB
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Reminder: it’s not just about direct buyers
Case: patient-centric management at Resmed
patients
Sleep medicine
& non-invasive
ventilation
nurses doctors administration insurance
patient family government anyone else
of relevance
FUTURELAB
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But it can also be very simple
Case: Rackspace
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Go forth and discover
this wonderful brand!
Once the basics are sorted
You can start activating promoters
FUTURELAB
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Are you likely to
recommend?
YES !!
Do you actually
recommend?
NO
THE ACTIVATION CHALLENGE
What goes wrong ?
That’s not the whole story
You can start activating promoters
FUTURELAB
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Give me a story
that makes my conversations
(and me) more interesting.
If you want me to talk about you
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What IS the story?
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And of course…delivery
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Give me tools that demonstrate my value to my
friends, colleagues and family
If you want me to introduce you to my friends
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Co-Creation Help us develop
Customer Council Guide us
Customer Communities Help each other
Beware: these are not employees!
Dont try to be too controlling – let them become selfmanaging.
Dont pay them in cash – pay them respect.
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Back at your office
Activate your most loyal and enthousiast customers
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Just ask me You’d be surprised how easy it is
to get me to talk
If you want me to introduce you to my friends
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FUTURELAB
Mechanisms to spread the word
Asking is free
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Dont forget: You already asked them in the survey!
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Super Promoters
• Engage at a truly personal level, individual by individual (no automated communications)
• Involve in future marketing, product development, sourcing, etc.
Promoters
• Identify the reasons and sources of their promotion, which help fuel future marketing campaigns
• Give them tools to actually promote (stories to tell, gifts to give…)
Passives
• Ensure that the passives know what drives the promoters, i.e. highlight what is good and positive
• Capture if they just want to be left alone (lest they might turn into detractors)
Detractors
• Based on root cause analysis engage early and on the topics that matter most
• Show that you actually listen and are serious to resolve issues – f.i. list current issues on the website
Brand Terrorists
• Engage directly and personally to resolve their issues, see what it takes to stop them from damaging you
• Turn them into ambassadors – also internally, to teach the organisation how to stop creation of ‘terrorists’
NPS based segmentation
Differentiate conversations based on customer attitude
FUTURELAB
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NPS based segmentation
Differentiate conversations based on customer attitude
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Guidance is useful
Make sure your people are social-savvy
Case: World Economic Forum
Everyone who works for the
WEF and openly uses social
networks is – de facto – a
spokes person for the company
• Train them
• Create minimal guidelines
• Support them to go (more) online
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FUTURELAB
2 out of 3 employees
is proud about their
employer, but only 19%
shares stories on
social media: unused
conversation potential.
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Employees matter
Remember last Christmas dinner conversation?
“you know what
those idiots did at
work”?
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117,000 employees*
= 17.5 million 1st degree contacts
= 2.65 billion 2nd degree contacts
Not to mention: Distribution network, vendors, other.
FUTURELAB
* Applying Dunbar’s number of an average of 150 meaningful relationships to a global electronics company
If you do the math
There are a lot of conversations waiting to happen
I have the power to
make or break you.
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Act as an ambassador at all times
This conversation actually has quite a bit of impact
350 employees
= 52,500 1st degree contacts
= 7,875,000 2nd degree contacts
Bucharest population = 1.9 million (4.14 x)
Romanian population = 21.9 million (36%)
X trust multiplier
Romanian insurance employee media impact (excl. agents) =
Vs.
FUTURELAB
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Consider
Employee NPS • Would you buy vs. Would you work
• Handle with care – political
• Anonymity is Imperative
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This is especially bad if you consider that not all employees are promoters
Case: Commerzbank
Would you recommend the bank to friends /family?
32% No 28% conditionally
Would you recommend the bank as an employer?
39% No 30% Yes
N=25,000 (out of 59,000)
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Debate
How is this in your business
Image attribution: Rob Markey, Bain & Company
Really??
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18/04/2012 69
In countries where employees are 10% more likely to promote Holcim, NPS is on average 18 points higher
Case: Holcim
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Creating promoters
It takes more than ticking the customer feedback box.
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A structured approach
1. Show me the Money
2. Listen to the Customer’s Voice
3. Build a platform for aligned action
4. Manage the customer experience
5. Future-proof your channels
6. Manage all your social media
7. Build a customer movement
8. Walk the customer talk
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