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March 2007 Archives

March 30, 2007

What’s in a Name?

Job titles may or may not influence whether someone takes a job or stays with a company. According to a late 2006 study by Korn/Ferry, 85 percent of employees surveyed said that a bigger job title wouldn’t entice them to keep a job. So titles, it seems, aren’t an effective retention tool.

But what about as a motivator? If your job title is Chief Customer Experience Officer are you more likely to drive the creation of compelling customer experiences in your organization than a counterpart with a simple Marketing Director title?

Continue reading "What’s in a Name?" »

March 28, 2007

Is Web Innovation Dead?

Yesterday I spoke with Bill Rice, president of the Web Marketing Association, who talked about the organization’s annual WebAward competition, now in its 11th year and begins its official call for entries in April. The contest recognizes individual achievements behind the creation of today’s top Web sites.

He talked about the seven criterion used in judging the competition which include design, content, ease of use, copywriting, interactivity, use of technology, and innovation. The last criteria, Rice said, is the hardest to define because the Internet is so dynamic. Typically, if an organization finds something innovative to build onto its site, suddenly that capability becomes the standard with many companies.

If that’s the case, does innovation ever exist on the Web? Brian Tomz, director of product strategy at Coremetrics, got me thinking about this yesterday afternoon. He said the way that sites are interacting with customers is changing and that’s the innovative part. It’s not perfecting the use of Flash or applying avatars for the sake of introducing an animated or video character.

Continue reading "Is Web Innovation Dead?" »

Any thoughts on Borders' new "loyalty" program?

Big article in the Wall Street Journal today about Borders cutting back loyalty rewards in its very popular program. See http://online.wsj.com/article/SB117504224198951153.html?mod=hpp_us_at_glance_mm for the story. (I believe non-subscribers can access this WSJ link only for a limited time period.)

It seems to me that there are several things wrong with Borders' new approach. I don't begrudge them the need to contain costs, but the way this new program is configured doesn't sound like it's going to be very attractive at all to customers, and I predict a virtual insurrection of customer dissent from the company's most frequent current customers, who now enjoy 10% discount days when they can buy all they want to at a Borders Bookstore at a 10% discount, and several other benefits.

What does everyone else think of this new program?

March 27, 2007

Wasting Time At The White House

In case you missed it the domestic auto makers had a meeting of the minds with the President yesterday to discuss goverment-funded alternative fuel development. I don't know why they bothered. The President isn't buying any cars these days, and if I was an executive at GM or Ford I would spend a lot more time in front of paying customers. I also wouldn't put too much faith in government intervention for domestic auto issues or flexible fuel alternatives. First of all, the meeting with Bush lasted 30 minues. By the time they got past the small talk, I'm sure there were about 20 minutes left. Sounds like a pretty complex issue for a 20 minute discussion. Flexible fuel is all about getting customers aware and excited about the technology, its effect on the environment, and its ability to lessen foreign oil dependence. PItch that message to the people who will matter most: Car buying customers.

March 26, 2007

Untapping Email's Potential

The days of "spray and pray" emails are over. At least that what customers keep telling companies, with their refusal to open irrelevant email messages and their upgraded spam blocking software. But unfortunately, many companies just aren't getting the hint. Volume rules in a lot of marketing departments, where cheap technology is the strategy behind blast emails that don't do anyone any good. In today's 1to1 Weekly lead article, Email Marketing Strategy at a Crossroads, Don Peppers and Martha Rogers look at the practice from the customer angle.

Continue reading "Untapping Email's Potential" »

March 22, 2007

Tuning in to CRM

I’ve met myriad customer advocates in my many years of covering CRM strategies. Fervent in their belief that customer centricity can make a significant impact on the bottom line, they are evangelists for the customer cause both inside their organizations and in the broader business landscape. Of course, Don Peppers and Martha Rogers are two you know well. Their one-to-one approach has transformed the customer strategies of countless organizations.

There are many customer advocates whose voices may not have carried as far just yet, but have made no less of an impact in their circles of influence.

Continue reading "Tuning in to CRM" »

How Self-Service Serves Assisted Service

Have you ever had the experience of calling into a contact center after gathering information online and feeling like you have more information than the agent does? It may be that the company’s Web group has launched a robust knowledge based while its contact center is using the same old disjointed information silos that require an excess of clicks into multiple systems. Besides the obvious need for those two groups to work in tandem, this is a case where customers should actually come second.

Continue reading "How Self-Service Serves Assisted Service " »

March 21, 2007

Yum! Brands Must Work Harder to Restore the Brand

In February, dozens of plump, healthy-looking rats were caught on tape by news crews at a Greenwich Village, NY KFC-Taco Bell scurrying about after hours on tables, floors, and counters. For Yum! Brands, this incident can potentially damage the brand if not addressed now.

While late-night comics spoofed the rat-infested restaurant nightly in comedy bits and news programs repeatedly replayed the video of the rodents invading consumers’ friendly eatery, Americans recoiled at the images.

While Yum! Brands posted a video apology on its Web site, calling it an “isolated incident,” I don’t think that the company has done enough to quell the images of the scurrying creatures from customers’ heads. That’s because Emil Brolick, president of Yum! Brands, hasn’t worked diligently enough to rebuild and restore trust.

Continue reading "Yum! Brands Must Work Harder to Restore the Brand" »

March 20, 2007

BtoB Is Ford Tough

Interesting article in The Wall Street Journal today about Ford's BtoB relationships. Apparently the auto giant can't get its partners in the auto parts space to play nice when Ford desperately needs them to play nice in pricing. It's another lesson that companies should never underestimate their BtoB relationships. BtoB relationships need the same kind of short-term care and long-term vision that BtoC relationships demand.

March 19, 2007

Choice, Control and Customers

In today's 1to1 Weekly article, Virgin Atlantic's Paul Dickinson talks about how important it is to give customers choices. The company's approach to air travel and the customer's experience with it really makes it stand out. For a company known for its branding skills, it also has a very strategic outlook when it comes to customer choices.

Continue reading "Choice, Control and Customers" »

March 16, 2007

Setting Customers’ Service Expectations

“If you tell customers what to expect from you, they won’t be surprised when get it.”

This wise observation came from Gartner research director Esteban Kolsky, during his keynote at the Talisma Customer Conference earlier this week. Kolsky was discussing how to balance efficiency and effectiveness in the contact center.

Continue reading "Setting Customers’ Service Expectations" »

March 15, 2007

CRMA Goes Viral

The CRM Association is all about helping organizations share insights and strategies on ways to improve the customer experience. In a twist of practicing what they preach, the CRMA is using new media to promote its National Conference, and having a bit of fun with it in the process.

Continue reading "CRMA Goes Viral" »

March 14, 2007

Disney Says "I Do" to Building Long-Term Value

One of the best emotional brands in the world has done it again.

Disney announced that it would launch its first line of wedding gowns this June. The “Fairy Tale Collection,” by Los Angeles bridal designer Kirstie Kelly, is moderately priced and draws inspiration from Disney characters like Belle, Sleeping Beauty, and Snow White.

This new line of dresses is Disney's way of building lifetime value for its young female consumers who have grown up with the brand. The dresses will serve as an add-on service to its Fairy Tale Weddings & Honeymoons service launched in 1991 which hosts 2,000 weddings every year.

In a BusinessWeek article, Marc Gobé, author of the newly released Brandjam: Humanizing Brands Through Emotional Design, says that Disney will find a built-in audience by saying to young women “We can help you bring that dream into your life.”

Disney is proof that age-old brands can continue to find new ways to reinvent itself to build long-term value.

March 12, 2007

Measure the Right Things

In today's lead 1to1 Weekly article, Forrester Research reports that many banks talk a good game when it comes to customer retention strategies, but as of now the money's still being spent on acquisition. Nearly all of the decision-makers polled by Forrester (95 percent) indicated that customer retention is "very important" or "critical." But they have a long way to go to actually make that happen. "Banks have not traditionally focused on loyalty," says report author Mary Pilecki. "In general there have been very few strategies and they don't measure who stays and who goes."

Continue reading "Measure the Right Things " »

March 9, 2007

Six Trends and a Must-Do

Forrester Research just released its report “Trends 2007: Customer Relationship Management,” which reveal six key trends impacting organizations attempting to improve their customer experience. Based on conversations with many of our readers, I have one to add.

Continue reading "Six Trends and a Must-Do" »

March 8, 2007

Marketing’s Next Big Thing

What do I think is the trend that will play out to be the Next Big Thing in marketing? No, it’s not Web 2.0. And it’s not experiential marketing. It’s not even social media. I think that the “trend” to watch is marketing strategists’ endless search for the Next Big Thing.

Continue reading "Marketing’s Next Big Thing" »

March 7, 2007

McDonald's Takes Guest (Dis)Satisfaction Seriously

What happened to service with a smile?

McDonald’s recently reported that its accounting of guest satisfaction for 2006 shows that during a year in which the fast-food chain improved its financial performance on several fronts, the number of customer complaints also grew. Complaints per 100,000 guests totaled 20.1 at company-operated stores, compared with 18.5 in 2005.

A recent article by Dow Jones Newswires' Richard Gibson, reports that the lack of transaction accuracy accounted for about one-fourth of the more than 500,000 complaints logged by the company's customer contact center last year. What topped the list included “wrong item in order,” “product missing,” and “incorrectly prepared product.” After accuracy problems, customers complained most about what they regarded as "rude or unprofessional" employees, which represented more than 15 percent of the logged complaints. Speed of service was the third-largest negative complaint, accounting for about 7 percent of those compiled.

Continue reading "McDonald's Takes Guest (Dis)Satisfaction Seriously" »

March 6, 2007

David Neeleman For President

Yes, I'm serious. Although I think JetBlue had it covers yanked a little bit in terms of customer operations over the past few weeks, I think his attitude and approach could be copied in some other areas. How about the current mess at Walter Reed Hospital and the entire Veterans Administration disgrace? If Neeleman's management style and attitude could be copied no one would be yapping about new policy statements, subcommittees, and high-profile investigations. Neeleman's style would simply state that "we screwed up, we have some major issues and we will fix it so that the people who need the service will benefit most from it." Patients. Citizens. Customers. What a concept.

March 5, 2007

Building Trust, One Customer at a Time

It's pretty common sense -- customers who trust you are likely to be more loyal and ultimately more profitable than those who don't. But it's surprising how many companies treat their customers in ways that undermine trust. In today's 1to1 Weekly lead story, we discuss the state of customer loyalty in financial services, and what banks can do to improve loyalty and trust.

Continue reading "Building Trust, One Customer at a Time" »

March 2, 2007

Silos and the CEO

Yesterday I had a long conversation with one of our Editorial Advisory Board members. I’ll have to keep who it was a secret so I can tell you the rest. He told me the stories of two C-level marketing executives. I bet you know people just like them.

Continue reading "Silos and the CEO" »

March 1, 2007

The Evolution of the B2B Enterprise

Earlier this week reader Ben Hill emailed me a question:

“I have observed that companies that have a primarily B2B model are diminishing. The old B2Bers that are adapting to reach their B2C market segments are the ones that seem to be surviving. The companies that are strategically targeting the B2C as a part of their core business are actually growing. Am I wrong about this? If not, am I the last one on the planet to recognize this?”

Continue reading "The Evolution of the B2B Enterprise" »