Customer Centri Cthinking

Copyright ©2009 Lindell Associates, LLC All rights reserved.

Consultants to Management

LindellAssociates, LLC

8 Steps To Thinking Like a

Customer

P. Griffith “Griff” Lindell


To focus well on your customers…


…Start with Yourself



The Process of developing

Customer-CENTERED Thinking

1. Begin with knowing what business your are in.

2. Refined with an acknowledgement of the impediments to success.

3. Driven by thinking about the Who, What and Why of a Customer

4. Developed by understanding your core/whole product


The Process of developing

Customer-CENTERED Thinking

5. Clarified by metaphor

6. Honed by your Unique Selling

Proposition

7. Visualized by Positioning

8. Made real by your Customer Intimacy


1. What business are you really in?


Purpose: Why did I start this

business? What difference did I

want to make?





Mental Models What

models do I use to

think about this

business?

Transactional Model?

Customer Intimacy

Model? Best Price

Model?

Value Model?


Positioning

A Picture of Your Business

Principles

Purpose


The Business I am in

Make a list of the kinds of products you

sell

What business does that seem to suggest

that you are in?

Discuss with your group


The Flow of Thought

A Way to Think About Your Business

Features Value

Core Product

Unique Stuff Value

The "stuff" that supports it

Tanigble Property

Physical Product

Features Value

Core service

Unique Stuff Value


Service Offering

Conceptual

Offering

My Product


The Flow of Thought


Features Value

Core Product

Unique Stuff Value


Tanigble Property

Physical Product

Features Value

Core service

Unique Stuff Value


Service Offering

Conceptual

Offering

My Product


The Flow of Thought


Features Value

Core Product

Unique Stuff Value


Tanigble Property

Physical Product

Features Value

Core service

Unique Stuff Value


Service Offering

Conceptual

Offering

My Product


The Flow of Thought


Features Value

Core Product

Unique Stuff Value


Tanigble Property

Physical Product

Features Value

Core service

Unique Stuff Value


Service Offering

Conceptual

Offering

My Product


Product Market

Domain Domain


Product Market

Domain Domain

Transportation Freight Trains

Passenger Trains

RR Rights-of-Way


Product Market

Domain Domain

Freight Trains

Passenger Trains

RR Rights-of-Way

Transportation Co.

• Airline Freight

• Passengers

• Airports

• Trucking

• Shipping


Understanding Your Domains

Product Domain Market Domain

What business are your really in?

What will this mean to your marketing?


2. Overcoming barriers to success




2. Refined with an

acknowledgement of the

impediments to success.

Overcoming them and making

Them Work FOR YOU


Begin with a fundamental belief

in the vision

Build with the outcome in mind.

Involve all the people.

Be radical.

JERICHO PRINCIPLEOvercoming Impediments to Success


Make it simple.

Be persistent.

Maximize your resources.

JERICHO PRINCIPLEOvercoming Impediments to Success




Remember...

...It’s not the seemingly

insurmountable height of the wall that

matters, it’s where you want to be

positioned when the wall comes

tumbling down.


Strategic Considerations

What are the impediments to our

success that must be overcome?


Choose Your Top

5 Impediments to Success

Impediments

1. .

2. .

3. .

4. .

5. .



What strengths do you have?



What are the impediments to your success that must be overcome?

What strengths do you have?

How can they be applied to overcome the impediments to our growth?


First, List Your Top 5

Impediments to Success

Impediments

1. .

2. .

3. .

4. .

5. .

_______________

_______________

_______________

_______________

_______________

_______________

_______________

_______________


3. Understand the Customer




3. Thinking About the

Who, What and Why of

a Customer

Define

Describe

Develop


Define: What Customer Have in

Common

Age

Gender

Neighborhood

Walking

Driving

Affinity

B to B

Determine the “target”

Management

User

Other “buying

center” members

purchasing

financial

operations

Retail Business


Customers Motivations

What do prospective customer have in common?

Dilemmas “if only….”

Values

Experiences (floods, wars, recession, etc.)

Education

Expertise

Geography


Define: Understanding the

Customer

Target Markets1 2 3 4

Characteristics

Needs

Value


DEFINE: Product Scenario - 1

Personalize the typical user by: age, education, gender, typical day

What is the dilemma that faces this person that your product/service will solve?

Describe the arsenal of resources available to that person (other businesses, Web, DIY ???)


PRODUCT SCENARIO - 2

Revise the dilemma illustrating how your product/service solves the prospect’s problem and compels(drives) him/her to value your solution


Meeting Customer Needs

What needs have been expressed for which you have a solution?

What needs have been expressed for which no one has yet developed a solution?

What needs have been basically unrecognized by the customer for which you have provided a solution?

What unrecognized needs still exist that are without solutions?

Copyright ©2000 by Lindell Associates


Customer Perspective

Needs Met Un-Met

Recognized

Un-

recognized



Needs Met Un-Met

Recognized

Un-

recognized

I am searching for a

better way – is yours

better?

Dilemma – if not

you, then who?

Why am I paying

for this?What’s your

roadmap?


Describe: Arsenal of Resources

Where can they go to get their needs

met?

What products/services can they buy?

What processes (DIY) can they

employ?


• Where can they go to get their needs met?

• What products/services can they buy?




Develop Your Business…

…Using the Following Chart


Customer NeedsStrongly Felt Latent

Solu

tions

Ve

ry U

niq

ue

Read

ily A

vailab

le



Customer NeedsStrongly Felt Latent

Solu

tions

Ve

ry U

niq

ue

Read

ily A

vailab

le

Price of Entry

- Ante to game

“Overkill…I’m

paying for more

than I need--

don’t need all

these features!”

Benefits

become your

differentiator

Potential as future

market drivers.

Depends on how real

needs are.

Too early is as

dangerous as too late


The spoken and unspoken customer needs and value system are understood in part by

the answers to these questions:

Who is our TARGET audience-by segment?

What are their characteristics?

What do they value?

What do these CUSTOMERS need?

Do they even know their needs?

What does the Competition offer them?

What can YOU offer them?

What do our customers THINK YOU offer them?

UNDERSTANDING THE CUSTOMER


Develop an Intimate

Understanding the Customer

Target Markets1 2 3 4

Characteristics

Needs

Value


3. Understand Your Product




4. Take Another Look at YOUR

Product…

….Understanding what the customer

values about the whole product

experience.


Whole

Product

Post-

emergent

Weeding

Trimming

Trees

Sprinkler

Maintenance

Mow & blow


Core/Whole

Which core product features are most

important to your customers?

Which whole product features are most

important to your customers?

What combined set gives the most

compelling customer experience?


Core / Whole

Whole Contains bait already Comes large bags or six-

packs Safety guarantees Free training Free placement guide Free homeowners guides Comes with Technician

Pouch with quantity purchase

• Core– See-through top– Fits into corners– Plastic


Group Discussion of one of Your

Whole Product Attributes

Which combination product features are

most important to your customers?

Whole

Product


5. The Magic of the Metaphor




5. Dig Deeper into YOUR

Product…

…for a “picture” that makes the

difference


Features = Quality inherent in the product

Function = Explains what the feature does

Benefit = The value or worth derived from

Financial the featureProductivity/Process

Motive = The underlying need met by the benefit

(safety, economy, relieving fear etc..)

Product Description From a



Physiological Needs

Safety Needs

Belonging Needs

Esteem Needs

Self actualization Needs


Features = Quality inherent in the product

Function = Explains what the feature does

Benefit = The value or worth derived from

Financial the featureProductivity/Process

Motive = The underlying need met by the benefit

(safety, economy, relieving fear etc..)

• Metaphor = Use of aids (or metaphors) to strikingly

bring home the VALUE

Product Description From a



Feature / Advantage / Benefit /

Motive / Metaphor

Transparent Red cover

Advantage: you can see inside without illuminating in the eyes of the roach

Benefit: you know how much bait is left and/or has been used

Motive: Saves time, increases effectiveness and makes user look good

Metaphor: Superman with X-ray vision



Magic of the Metaphor

Feature:

Advantage:

Benefit:

Motive:

Metaphor:


6. Understand What is UNIQUE




6. Unique Selling

Proposition…

…for the Customer’s Perspective


What is Unique About…

… Your store?

… Your location?

… Your service?

… Your website?

… You customer interaction?

… Your products?


Reason to Choose



USP - THE UNIQUE SELLING

PROPOSITION

USP communicated must be an

appropriate, compelling message to the

target prospect

POSITIONING identifies you in the

marketplace

USP sells to the individual user


U S P REQUIREMENTS FROM

THE CUSTOMER’S PERSPECTIVE

ATTENTION GETTING

ACCEPTABLE

AROUSING

ACHIEVING A SOLUTION


Message

Unique Selling Proposition

The Maxforce Bait permits roaches to kill roaches because the bait has proven attractant qualities and a slow speed of kill permitting the foraging roach to return to the harborage and “infect” other roaches.

Roaches Killing Roaches.

USP


Group Work

Pick a USP for your product

How can you make it attention-getting?

Acceptable?

Arousing?

Achieving solution?

Write the message


7. The Customer’s Choices




Getting Into the …

…Customer’s Head


Understanding Positioning

PRICE

PERFORMANCE

PACKAGING

PERSONA



Analyzing Your Offering from a

Customer’s Perspective

Priceout of my Easy toleague x_____x_____x_____x_____x_____x

justify

PerformanceAdequate x_____x_____x_____x_____x_____x Exceptional


Packaging -Whole Product

Minimal x_____x_____x_____x_____x_____x Maximize

Persona

Stable x_____x_____x_____x_____x_____x Cutting Edge

Analyzing Your Offering from a

Customer’s Perspective

6 months


4 Ps of Positioning

Mark where you are today

Then mark where you want to be in the future

with an arrow between the two (if there is

movement) and put in the time frame.

Where do customers want people in this

business?

How does that change your plan?


Price__________x_____x_____x_____x_____x_____x ________

Performance__________ x_ ___x___ __x_____x_____x_____x________

Packaging__________ x_ ___x___ __x_____x_____x_____x________

Persona__________ x_ ___x___ __x_____x_____x_____x________


In Your Customer’s

Head by Examining

the Messages

Competing with Yours

War-wall


What To Look For

Battles chosen

Comparisons made

Claims made

Areas ignored


Real Customer Intimacy


Basics

Customer service must be start of your

business strategy STEPS 1 - 7

Customer is co-creator of Company’s

Culture STEP 8


embrace customers as co-creatorsengage your customers


Calculating Thoughts

Calculate cost of losing a customer. Loss of

new, incremental revenue/opportunity

Referral - a “lifetime customer”

Recurring revenue

Replacing - a customer – Know the marketing

cost per lead that turns into a closed deal

Reactive - Cost of viral effect, how many other

customers will you lose based on bad referrals?




To Better Customer Intamacy


Improve Customer Service

Test your own first impact

How is the phone answered?

Machine?

Live person?

How does caller feel ?

Options?

Call Forwarding

Other?


Improving Customer Intimacy

Utilizing customer reviews to sell for you

If Used, what changes?



Don’t make promises you can’t keep.

What promise is the hardest to keep?

What can you do to change that result?



Be helpful even if no profit in it.

Examples?



Throw in something extra

Part of the Business Plan

Investment


#6 Staff with Individual Power



Train everyone to be customer-centric

Empower

Encourage

Enthuse


Welcome to Nordstrom

We're glad to have you with our Company. Our number one goal is to provide

outstanding customer service. Set both your personal and professional goals

high. We have great confidence in your ability to achieve them.

Nordstrom Rules: Rule #1:

Use good judgment in all situations.

There will be no additional rules.

Please feel free to ask your department manager, store manager, or division

general manager any question at any time.



Understand that it’s always about VALUE, not price.




Handling Objections

The Art of Keeping the

Conversation Going


Pricing

…Is always about


Sales Objection: “You’re Too

Much Money”

“Oh, why is that?”

“What do you base that on?”

“What, in my presentation, drove you to

believe/think/feel/know that our solution

costs too much?”


Sales Objection: “You’re Too

Much Money”

“Your competitor is cheaper…”

Retrace steps – understand the Total Cost

of Project –

to ?Remember, if the prospect thinks your price

is too high, you have not laid a solid foundation of benefit and value.


Customers Do Not Want to Be

Sold…they Do Want to Buy…

Know your customer - intimately

Understand your competitors –

thoroughly

Know yourself – brutally

Produce messages that are captivating,

creative and compelling to the

customer.
