Martha Rogers - Standing Up and Standing Out

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    17-Jan-2015
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What does social networking really mean for your company and your brand? If themessages your customers hear about you come mostly from you, then advertisingrules. But now that customers communicate with each other, more and more, it'sthe customer experience that counts. As transparency has become inevitable andcomplete, and all our customers can know essentially everything about all productofferings and pricing, how do we compete?

Transcript of Martha Rogers - Standing Up and Standing Out

  • 1. COPYRIGHT 2012ALL RIGHTS PROTECTED AND RESERVED. 1

2. Toyama no Kusuri-uri House-to-house medical supplies Consumers only charged for usage Detailed records kept in a database, called the Daifuku cho Circa 1750 2COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 2 3. In 1996, Barnes & Noble offered tobuy amazon.com,--to protect them from B&Ns online launchCOPYRIGHT 2012ALL RIGHTS PROTECTED AND RESERVED. 3 4. In 1996, Barnes & Noble offered tobuy amazon.com,--to protect them from B&Ns online launchToday:Barnes & Noble has a market capof $719 millionCOPYRIGHT 2012ALL RIGHTS PROTECTED AND RESERVED. 4 5. In 1996, Barnes & Noble offered tobuy amazon.com,--to protect them from B&Ns online launchToday:Barnes & Noble has a market capof $719 millionAmazon.com has a market capof $102 billionCOPYRIGHT 2012ALL RIGHTS PROTECTED AND RESERVED. 5 6. We all recognize this, right?6COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 6 7. And everyone knows what this is?COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 7 8. Well, how about this?Philip StewartsChemical Galaxy IIperiodic tableCOPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 8 9. Taking a different point of viewCustomers just want their rock crushed to ideal granularity Oricas business involves collecting detailed blast parameters from customers all over the world Now the company sells service contracts for crushed rock, taking on the risk of managing each blast itself What business are you in?COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 9 10. Strategy. Execution. Results.COPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 10 11. Can this work forsmaller businesses?Zanes Cycles faces both Wal-Mart and a sports superstoreChris Zane applies 1to1 marketingat the retail-detail level Lifetime bicycle warranties CRM-based customer profilesDoubled his business in two yearsto $3.5 million Now has 65% of the bike market in his areaCOPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 11 12. Twin benefits of relationshipsMore satisfied customer More convenient product More appropriate offer Personalized serviceLower costsLess wasted effortRelationships andgood experiencesLower inventory costsrequire trustBetter asset utilization12 COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 12 13. Customer centricitys objective Strategy. Execution. Results.Maximizing the valueCustomercreated by each customer Needs Satisfied Customer Centricity Share of customerMaximizing the valuecreated by each product Product Centricity Market shareCustomers ReachedCOPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED.13 14. Customer centricity is building the value of the company by building the value of the customer base1COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 14 15. Welcome to the Age of Transparency 83% of consumers trust the recommendations of their friends More than half trust the online opinions of complete strangers But just 14% of consumers trust advertising! Transparency is a disinfectant for business. It will purifythings and help start the healing, but its going to sting like hell.Forrester ResearchCOPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 15 16. Moores LawEvery 20 years, computers get a thousand times faster and cheaperCOPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 16 17. Zuckerbergs Law Every 20 years, we share a thousand times as much information with othersCOPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 17 18. Now suppose you were afood source for bees Bright colors and a sweet fragrance can get any exploring bee to take a look But a bee will only do his dance to tell the other bees about you if he was satisfied with the nectar Moral: In the absence of communication among your customers, advertising rules Once your customers communicate with each other, its the customer experience that countsCOPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 18 19. Strategy. Execution. Results.COPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 19 20. Going forward: Strategy. Execution. Results.3 RequirementsFor Extreme Trust IntentionDo the right thingCompetence Do things right ProactivelyCOPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 20 21. Customers assert their new social power easily HSBC forced to reverse course Over the summer it had dropped its policyof free overdrafts for university students By using Facebook, students connectedwith others to organize a protest of thisnew policy Soon HSBC reinstated the free overdraftpolicy2COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 21 22. The components of20thcentury trust Strategy. Execution. Results.Competence doing things rightGood intentions doing the right thing Now Doing things right, and Doing the right thing, ProactivelyCOPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED.22 23. Honeybees dance about everything!2COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 23 24. Screw up, and the news will be immediate, ubiquitous, and permanentYou cant un-Google yourself.- Linda Kaplan Thaler, CEO, Kaplan Thaler GroupYou cant take something bad off the Internet. Thats liketrying to take pee out of a swimming pool. - Grant Robertson, blog post, May 1, 2007COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 24 25. Trust Is Becoming More Important Because1. Trust makes interactions efficient2. We screen information for its trustworthiness3. Interaction generates transparencyCOPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 25 26. Extreme TrustProactive trustworthiness No longer sufficient simply to refrain from cheating or deceiving customersCOPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 26 27. Earning trustStrategy. Execution. Results.sometimesrequires adeliberatebalance of short-term gain andlong-term equityCOPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 27 28. Earning trustStrategy. Execution. Results.sometimesrequires adeliberatebalance of short-term gain andlong-term equityActing in thecustomers interestCOPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 28 29. Earning trustStrategy. Execution. Results.sometimesrequires adeliberatebalance of short-term gain andlong-term equity If that seems impossible, ask whathappens when customerschoose between you anda company that can betrusted in the long runCOPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 29 30. Lots of people are asking: How can I use new social media to sell more to my customers?COPYRIGHT 2012ALL RIGHTS PROTECTED AND RESERVED. 30 31. Lots of people are asking: How can I use new social media to sell more to my customers? Wrong question!COPYRIGHT 2012ALL RIGHTS PROTECTED AND RESERVED. 31 32. Lots of people are asking: How can I use new social media to sell more to my customers? Wrong question! The question to ask now is: How can I use any tool to understand my customer better and build a moretrustable relationship?COPYRIGHT 2012ALL RIGHTS PROTECTED AND RESERVED. 32 33. Very special (mis)handling? One bank routed calls from its most valuable customers to product and sales specialists, to try to sell something, before letting them do the routine transactions they wanted Ordinary customers were able to get right to the IVR and handle their transactions Why did those valuable customers leave? Source: The Best Service is No Service, Price and Jaffe, 200833 COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED.33 34. Things arent alwayswhat they seem A BCOPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 34 35. How good is your customer experience? 80% of corporate executives say their companydelivers a superior customer experienceJust 8% of consumers report they received one Source: Bain and Company,COPYRIGHT 2012 ALL RIGHTS PROTECTED AND RESERVED. 35 36. make Trustworthy is not good enough.an Your company must be trustable impact!Take this testCOPYRIGHT 2012. ALL RIGHTS PRTECTED AND RESERVED. 36 37. Strategy. Execution. Results.A trustworthy company: Carefully follows the rule of law, and trains people on its ethics policy to ensure compliance A trustable company:Follows the Golden Rule toward customers, and builds a corporate culture around that principle 37COPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 37 38. Strategy. Execution. Results.A trustworthy company:Does whats best for the customer whenever possible, balanced against the companys needs A trustable company:Designs its business to ensure whats best for the customer is financially better for the firm, overall 38COPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 38 39. Strategy. Execution. Results.A trustworthy company: Fulfills all its promises to customers, and doeswhat it says it will do, efficiently A trustable company: Follows through on the spirit of what it promises, byproactively looking out for customer interests 39COPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 39 40. Strategy. Execution. Results.A trustworthy company:Manages and coordinates all brand messaging, to ensure a compelling and consistent story A trustable company:Recognizes that what people say about the brand is far more important than what the company says 40COPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 40 41. Strategy. Execution. Results.A trustworthy company:Uses a loyalty program, churn reduction, and/or win-back initiative to retain customers longer A trustable company: Seeks to ensure that customers want to remain loyal because they trust the firm to act in their interest 41COPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 41 42. Strategy. Execution. Results.A trustworthy company: Focuses on quarterly profits as the mostimportant, comprehensive and measurable KPI A trustable company: Uses customer analytics to balance current profits against changes in actual shareholder value 42COPYRIGHT 2012. ALL RIGHTS PROTECTED AND RESERVED. 42 43. Doing Business in the Age of TransparencySocial networks evolve in a path-dependent way,and social sentiment cascades in