October 18, 2010
New Releases: An Excerpt from Voice-of-the-Customer Marketing
In recent years, there have been many customer relationship management (CRM) initiatives that have not listened well to the Voice of the Customer. As well intentioned as these initiatives have been, we must acknowledge that today’s customers do not feel like being “managed” (or, for that matter, manipulated).
Going forward, the premise of marketing and indeed the entire enterprise, must begin not with the idea of “managing” relationships—as we might “manage” a crisis or “manage” risk. Rather, we must begin with the vision of creating a community in which customers know their voice is being heard and acted on and in which they therefore look forward to engaging with us because they derive value from doing so.
We must acknowledge that today’s customers do not feel
like being “managed” (or, for that matter, manipulated).
The five steps that allow us to engage customers in this way are illustrated below. Notice that the first step, Voice of Customer, drives the subsequent four steps and that all five steps are interrelated.
CONDUCT AND APPLY VOC RELATIONSHIP RESEARCH
This involves in-depth interviews with prospects, customers, and key stakeholders to understand how they expect the marketer to satisfy their needs for a high-value relationship that includes increasingly relevant offers, services, and communications.
By doing this, MSC Industrial Direct, a Fortune 1000 industrial supply company, was able to:
- Avoid investing time and resources in a campaign to “win back” customers who had not really left at all, but instead had changed their buying patterns.
- Develop competitively powerful strategies for strengthening relationships with high-value customers.
- Identify significant opportunities to further drive incremental sales within the most critical customer segments.
CREATE VOC-DRIVEN OPT-IN RELATIONSHIP STRATEGIES
This means engaging prospects and consumers to tell you exactly what they value and want from you... and what they don’t want from you.
By creating an opt-in relationship marketing program, software giant Microsoft experienced the following “unprecedented” results:
- Opt-in rates that range between 45 to 95 percent
- Response rates that are currently performing in the double digits
- Revenue that is expected to continue being significantly greater than the revenue from the control population
CREATE A VOC-DRIVEN MULTICHANNEL MIX
This means creating an integrated, multichannel marketing program that engages and inspires your customer.
The Walt Disney Companies created such a program for its resort operations. As a result, Disney has achieved the following:
- Grown the database by over 100 percent
- Increased the number of targeted interactions by over 10 times
- Expanded e-mail coverage by over 10 times
CREATE A VOC-DRIVEN SOCIAL MEDIA PRESENCE
This means creating strategies or real-time engagement with your customers and prospects.
By doing this, Ford Motor Company not only took control of a public relations crisis but also generated the following:
- 4.5 million YouTube views
- 3.5 million Twitter impressions
- 80,000 “hand raisers” who asked to be kept up to date on the U.S. launch of the Ford Fiesta (A staggering 97 percent of the hand raisers did not own a Ford vehicle.)
INVEST IN AN EXCELLENT CUSTOMER SERVICE EXPERIENCE
This means not pretending that customer service is something for operations to worry about.
By building this philosophy into its corporate culture, QVC experienced the following:
- 20 percent reduction in complaints and/or queries from customers
- 93 percent repurchase rate among the most satisfied customers.
Excerpt from Voice of the Customer Marketing Copyright © 2011 by Ernan Roman Published by McGraw-Hill Books
If you'd like to delve into specifics of each step and read about them coming to life successfully in almost every industry, get yourself a copy of the book today.