Amabhubesi Conference 16 March 2016

Strategic Customer Loyalty

Why Businesses Decline

Their customers leave them… or they leave their customers

Leads to a scarcity of customers… and falling revenues

And why do customers leave?•Poor quality, high defect rates, deficient service•Lack of understanding of customers’ needs• Inadequate/inappropriate marketing/sales effort •Many more competitors and choices…

Maximising Value through Customer Management

• That wouldn’t happen here, Sir

• By the way, I’m going to be in your area…

The trust deficit

We don’t even trust the news anymore…

Maximising Value through Customer Management

World of business in turmoil

today!

Today the customers make the

rules!

But the “new” stuff just doesn’t work anymore!

We thought that the good times would last forever…

Corporate complexity…

and stupidity!

Who approved this?

Who is the 21st Century customer?

STILL

>“and never satisfied”

Short of money

Time Poor

Bored

Alienated, alone, frustrated, not valued…

“…and surrounded by

morons!”

For a generation of customers used to doing their buying research by search engine, a company’s brand is not what the company says it is, but

what Google says it is. Word of mouth is now a public conversation, carried on in blog comments and customer reviews, exhaustively collated and measured.

The ants have megaphones now(Chris Anderson, Editor-in-Chief, Wired, from his book

The Long Tail: Why the future of business is selling less of more)

18 million

hits per

month!

Maximising Value through Customer Management

• R & D and market research• Product & service development, and launch• Advertising, promotion & sales costs• Getting new customers on board

Customer loyalty is extremely profitable

Year0 1 2 3 4 5

Cust

omer

Pro

fit

Acquisition Costs

Base ProfitMarketing Cost ↓Cost to Serve ↓Increased SalesReferralsPrice Premium

But benefits also accrue from…

Why should you care?• Lifetime value of loyalty

• “Profitability” of company

• Customer reaction and response to us

• “Marketing” and communication costs

• Word of mouth & public reputation

• Tolerance & forgiveness

• Effect on competitors

• Company security and your job stability

• Financial reward and other recognition

• Pleasant work environment & morale; better work relationships

• Growth opportunity & career advancement

• Sense of pride

Maximising Value through Customer Management

Let’s Talk About

Customer Loyalty

Five Key Objectives of Any Strategy…

•Identify and find

•Win (& win back)

•Retain: but happy

•Grow

•Reduce cost to serve

Maximising Value through Customer Management

Most resources spent here. Why?

Real success lies here!

Customer Loyalty

Behaviour

Low

High

Customer Satisfaction Perceptions

Low High

How do we make ourselves indispensable?

By giving them irresistible experiences…

And thereby making competitors irrelevant!

“Smooth” Touchpoints: Get the basics incredibly right. Kill “dumb contacts” (3)

High barriers to switching

Continuous value

innovation

Put Relation-ships First

Sustainable Customer Loyalty

Creating the “perfect customer experience” begins with making it

easy to do business with your company

This is critical to customer loyalty – and avoiding customer disloyalty!

The Pillar ATM

Simplify my life

There is always a solution!

There are at least

82 ways to add value

for Your customers!

Getting to Unbelievable!

• Did you send my goldfish to London?

• Who is going to organise my seatbelt?

Maximising Value through Customer Management

Are We Customer Driven? A strategy for achieving customer

centricity

Three Prerequisites for Customer Management

Process and System Management

Leadership, People and Organisation

Customer Information & Technology Support

Customer Retention Strategy

Analysis & Planning

CVP (Customer Value Propo-

sition)

Customer Expectations

Perceptions of Experience

Segmentation & Targeting

Enquiry Management &

Conversion

Welcoming & Getting to Know

Delivering the Basics

Customer Value

Development

Managing Problems/ Recovery

Win Back Measurable Results

Benchmarking Best Practices

Customer Management

Value Innovation

Retention Activity

Maximising Value through Customer Management

BUT! The only way to consistently deliver the perfect customer experience is through people

Your competitors may be able to imitate just about everything else, but the only source of

advantage is people

Turning Ducks into

Eagles

Maximising Value through Customer Management

When the top look down they see only crap…

When the bottom look up they see only assholes

You can’t go anywhere unless you change it!

A bad attitude is like a flat tyre…

There are two kinds of people in life: ducks and eagles

Ducks act like victims, waddle around and go,

“Quack! Quack! Quack!”

Eagles take the initiative and soar above the crowd

If you show people that you don’t care, they will return the favour

Show them that you do care, and they will reciprocate

“There are no bad employees -

just bad managers”

Maximising Value through Customer Management

“I believe that we’ve got this all wrong… We should look after our people first. They

will in turn take care of customers - and they will look after the

shareholders”

http://www.youtube.com/watch?v=VVUtxdJaw10 download this video

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