Has the economic downturn minimized the importance of the Customer Experience?
In Chapter 5 of my book, Strategy Activation: How to Turn Your Vision into Marketplace Success, I talk about how important it is to improve your holistic customer experience to differentiate your company from your competitors. As products and services continue down the inexorable path toward commodification, it is the ongoing customer experience that drives customers to choose one vendor over another.
However, in the past two years, as the economic downturn has forced significant changes in customer behavior, many have questioned the importance of the overarching customer experience. These naysayers claim that in tough times price is the only thing that matters. Customers, they say, are more likely to accept a bad experience as long as they are getting a good deal. This perspective, however, is not confirmed by the data.
When Money is Tight, Customers Expect an Even Greater Customer Experience…
The most recent Harris Interactive Customer Experience Impact Report surveyed consumers on how they engage with companies both online and via phone, what they find frustrating, and how negative and positive customer experiences affect them.
They discovered these facts that are startling to most business owners today…
* 87% of the surveyed consumers stopped doing business with an organization or company because of a negative customer experience. That’s up from 68% reported just two years ago.
* Even during tough economic times, the significance of customer experiences does not dwindle. More than half (58%) of consumers polled said they will pay more for a better customer experience during a down economy.
* Consumers stated that the most important thing companies could do to encourage them to spend more is to improve the overall customer experience
So, it’s clear that even when finances are tight, people still value good service.
Why This Study’s Results Are Not Surprising To Me…
When money is easy to come by customers are likely to be more forgiving. Consider this restaurant dining example…
When the economy was booming many couples found themselves dining out twice per week or more. With eight to ten dining-out occasions per month a single bad experience is easily forgotten. However, when belts tighten, monthly dining-out occasions may settle back to just two or three. With fewer opportunities to “splurge” on an evening out couples and families now demand that each experience justifies the expenditure of limited funds. Thus a bad experience like poor service, long wait times and cold food makes a bigger impression and stays with us longer.
Once you have a bad customer experience, you may wait months before you visit that restaurant again – and that’s if you ever go back. Plus, you’ll probably tell your family and friends about your experience. This will make them think twice before they visit that restaurant.
Real Proof That Bad Customer Experience News Travels Far…
A recently published Forrester Research report, “How Customer Experience Drives Word of Mouth” cites:
* Consumers tend to discuss bad experiences with more people than they discuss good ones
* Gen Xers, as a group, tend to tell the most people about a bad experience
* Gen Yers are the chattiest in general. They are more likely to tell someone about a good experience. They are also the most likely to share a bad experience.
So, don’t you think that you should find out right now exactly what your customers are saying about your organization’s performance over the past eighteen months? Have their experiences diminished in the wake of corporate austerity? As we begin to see the recession bottom out, now is the time to explore this issue; to find new ways to improve the customer experience; to ensure that your customers have only good things to say!
About the Author:
Strategy Execution Consultant Scott Glatstein, President of Imperatives LLC turns market opportunities into record breaking profits even in a recession. Now, with his new book, “Strategy Activation: How to Turn Your Vision into Marketplace Success,” Scott unveils his groundbreaking plan for improved customer experiences and higher strategic profits. Get your FREE Sneak Preview at: http://www.strategyactivation.com
Month: November 2009
Last couple of issues I talked about how either moving too fast or too slow can sabotage your success. (You can read part 1 and 2 here: http://www.michelepw.com/blog ) Today I’m going to talk about a place where entrepreneurs typically move too fast — launching their product.
I know. You just finished your product or program and you can’t wait to start selling it. In fact, if you could, you’d start selling it yesterday!
And it’s agonizing waiting to launch your product. You want to be making money NOW, not waiting for weeks or months before you actually see any income. Plus you want to get it into the hands of your ideal clients, they NEED what you’re selling. So who has time to sit around waiting to promote? Just get a sales letter up and start selling it, right?
Okay here’s the thing. There’s a reason why product launches work and there’s a reason why you reach more people (and make more money) if you control yourself and do it right.
What’s that reason? Urgency.
You see, probably the biggest reason why your ideal clients decide not to buy is lack of urgency. They may like the product, they may know they need it, they may like YOU. And I bet they even INTEND to buy — just not right now. Right now they have a million other things going on and a bunch of other things they’re spending money on but in a few months or a year they will have the time or money to “finally” invest.
Well, we all know how that works out.
The more time and energy you spend building up buzz for your product, the more you’ll start creating that urgency. And the more you’ve built that urgency into your ideal clients’ minds, the more likely they’ll buy (and USE) your product, thus getting the results they want.
So it’s a win-win. You win because you get your product into the world while being paid handsomely for it, and your ideal clients win because they get the help they need to solve their problem.
So how much time should you allow for a product launch? Well it depends on the launch. There are a variety of launch systems out there, and depending on what you want to accomplish (and who your ideal clients are) dictates your launch. But here are some guidelines to get you started:
If you’re doing a straight teleclass launch (i.e. a preview call that sells the product or program) I would allow a minimum of a 2 weeks before the preview call. (Note, if you want to get affiliates involved you’ll need to allow a lot more time to plan. The more time you give your affiliates to put in their promotional calendars, the more likely you’ll get them to actually promote.)
If you’re doing more of a “release a special report and/or video” which teases the product by providing information, then you’ll need 4-6 weeks. Those take a little longer to get the viral aspect going. Because a preview call has a “date” when the call is, there’s built-in urgency, but a special report or video doesn’t necessarily have that.
If you want to use surveys or a contest, you might be able to do it in a couple of weeks but it would help if you had a little longer (2 weeks to do the survey then 2 weeks to do something with the results of the survey).
Remember these are minimum times AND these are how much time to actually PROMOTE. No, you don’t have 2 weeks to write a squeeze page, once the squeeze page if up, you need at least 2 weeks to promote. If you wanted to add a couple of weeks to do some other promotions, that’s never a bad idea. (Remember, the more you promote the more urgency you build and the more your ideal clients will want to buy.)
Article Contributed by Mark Hunter
It’s always rewarding to close a sale and immediately have the new client sign the documents to secure the sale. No matter how many years in the business, this always feels good. We all have stories about new customers who have “fallen into our lap” and bought quickly. For some reason, we can’t seem to forget the great rush that occurs from these new clients. I’m here to say that as good as the rush might be when we allow a sale to occur too quickly, we wind up leaving money on the table.
When beginning to talk with a new customer, the salesperson and the customer invariably have the intent of doing so with a specific product in mind. It may be any number of products you sell. The initial interest expressed by the customer always guides the discussion. Once the discussion turns to a specific product, the customer’s focus becomes even more closed to any other products. The real danger comes when the customer agrees to buy. At that moment, the customer feels the process is over, and their mind moves to something else, usually something totally unrelated to your business or products.
To avoid a situation like this, the salesperson needs to ask the necessary exploratory questions early to determine the customer’s other needs. By asking exploratory questions early, you are able to assess which additional products may interest the customer. If you wait to ask these types of questions until after the initial sale is complete, you will always be behind. This is the whole principle of not closing too quickly. You need and want enough time to explore and determine all of the customer’s needs.
What are exploratory questions? Exploratory questions generally are open-ended questions that get the customer talking. Questions may include asking the customer about their job and the types of benefits they receive in the job. A question of this nature is non-threatening and is likely to start a conversation in which the customer shares about the dynamics of their work, particularly the level of security they do or don’t have in their position. When a salesperson can get the customer talking and, more importantly, talking about items about which they do not feel secure, the greater the likelihood the salesperson can identify additional products that will alleviate some of the customer’s pain.
Whether in a face-to-face meeting or over the phone, the salesperson must take the time to engage the customer early on. The key with the early questions is to not blatantly ask, “What other products or services would you be interested in?” Asking a new customer this type of a question before a relationship has been established runs the risk of alienating the prospect. Plain and simple, they will view you as a “hard-sell salesperson.”
Engage the customer in a non-threatening manner and that customer will be more likely to share information without throwing up defensive barriers. Keep your exploratory questions short and simple, so that that the customer can do most of the talking. Customers are much more willing to share key information in short segments rather than long drawn-out responses that more-complicated questions dictate.
Due to the wide number of issues the typical customer faces today, it is a privilege to be a salesperson in today’s economy. When you are able to assist a customer with multiple solutions, the customer feels at ease, and you have truly done your job. Building a solid relationship instead of going for the quick close just makes good sense when you are striving to build a long-term sales career. Begin today to incorporate exploratory questions into your sales process as a way of engaging the customer.
About the Author
Mark Hunter, “The Sales Hunter,” is a sales expert who speaks to thousands each year on how to increase their sales profitability. For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit www.TheSalesHunter.com.
Categories
Twables.com
One of the hallmarks of good social networking strategy is to overlap your social networks. This means that when you connect with someone through one social network, you want to try and connect with them also on the other social networks.
There are several reasons this is important. First, it enables you to leverage multiple platforms at once, so if your account on one platform (or the platform itself) goes down, you haven’t lost touch with your network. The second reason you want to overlap your social networks is psychological. The more familiar you are to people, the more they will like you. Seeing your name and profile again and again on multiple networks will automatically make you more familiar to those in your network. You can assist this process by offering good insight and relevant information.
The great thing about technology is that there are more and more services which can aid you in overlapping your social networks. If you use Facebook connect on Plaxo, for instance, your Plaxo network grows when you connect with someone on Facebook, if both you and the other person have this feature enabled.
A similar type of interconnectivity is promised by Twables.com, which is a service that connects your Facebook friends with your Twitter friends. You can access the service by going to http://www.twables.com/fb140
I didn’t find it extremely straightforward to set up, this probably could be slightly improved. However, once it was set up, I started getting @ messages on Twitter telling me which of my Facebook friends were on Twitter. I then have to login manually to my Twables account to accept or confirm the connection.
I think the idea of this service is very good, and it will be one to watch in the coming months. More and more, we will be seeing technology to help us connect in as many networks as possible, which will help us better navigate the flow of new social media connections and relationships.
Dr. Rachna Jain is Chief Social Marketer at The Mindshare Corporation. Rachna works with speakers, consultants, authors, and small business owners to develop and execute effective social media marketing strategies. Her proprietary persuasive social media process (sm) focuses on building influence, credibility and visibility online. This translates into greater recognition, increased website traffic, faster lead generation, a shorter sales cycle, and more opportunity for her expert clientele. She blogs regularly at The Mindshare Blog
In every female entrepreneur’s life, opportunity will knock. Successful women must determine how they’ll answer. Will they fling the door open and shout, “Welcome!” with no more trepidation than they’d use when hosting their best friend? Or will they hook up the security chain and open the door just a crack, asking, “What do you want?” Whether it’s one of those extremes or something in between, one thing is certain: her response to opportunity likely will determine opportunity’s response to her – and her business.
A new study from Jane Out of the Box, an authority on female entrepreneurs, recently revealed there are five distinct types of women in business. Each one has a unique approach to running a business – and therefore each one has a unique combination of characteristics and factors.
This article profiles three important Jane “types” and the ways they are likely to respond when opportunity shows up on their doorstep.
Jane Dough is an entrepreneur who enjoys running her business and makes good money. She is comfortable and determined in buying and selling, which may be why she’s five times more likely than the average female business owner to hit the million dollar mark. Jane Dough is clear in her priorities and may be intentionally and actively growing an asset-based or legacy business. It is estimated that 18% of women fall in the category of Jane Dough.
Opportunity is a guest Jane Dough will carefully consider. Sure, she’ll open the door, but she’ll give Opportunity a good once-over before letting it in. Because she’s business-minded and pragmatic, she will look at all the angles before deciding whether this particular opportunity is one she wants to be closer to.
If you’re a Jane Dough, you should think about a few things while making your careful assessment:
* You’re a big picture kind of girl. You might see an opportunity and know it will fit in, in the grand scheme of things. But before you give the go-ahead in your quick and business-like manner, be careful to analyze exactly how it will fit in to the rest of your system.
* Ask yourself, “Even if this opportunity will make my business even more successful, will taking it allow me to continue to focus on what I want to focus on at work?” In short, evaluate not just the opportunity, but the timing as well. Jane Dough works best in a very focused manner, so it’s important not to allow a new opportunity to become a distraction for you and your team. If you’re already working on a big project, it might be best to re-negotiate timing so you can maximize your effectiveness with both opportunities.
Tenacity Jane is an entrepreneur with an undeniable passion for her business, but who tends to be struggling with cash flow. As a result, she’s working long hours, and making less money than she’d like. Nevertheless, Tenacity Jane is bound and determined to make her business a success. At 31% of women in business, Tenacity Janes are the largest single Jane type.
Tenacity Jane LOVES Opportunity because she is seeking the key(s) to helping her financially struggling business become more profitable so she can rest easier. That said, it’s important to realize that not every gift horse should be allowed in the door. When faced with a new opportunity, Tenacity Jane can consider the following:
* Sometimes what looks like Opportunity is just trouble in disguise. Before you proceed with something new, take the time to analyze whether the opportunity has significant potential to deliver the income you’re looking for, and what will be required for that to occur. Map out your plan and examine feasibility before diving in with both
feet.
* Consider your current projects and workload. How will the new opportunity fit in? Will it disrupt fledgling efforts you have underway already to improve the finances in your business? If so, it might be better to put the new opportunity on hold until the work you have currently underway begins to bear fruit.
* Finally, consider the costs of the opportunity. What will it cost you in terms of time, and importantly, money? Before pursuing any new opportunity, make sure you have sufficient resources to fully take advantage of it. If it would require an investment in building a new website, for example, and you don’t have the money to do so, the opportunity will not pay out the way you hoped. Again, it might be worth postponing slightly, until you can marshal more resources to truly make the most of it.
Merry Jane. This entrepreneur tends to be “building a business on the side”-in addition to a day-job, or a focus on family or other pursuits. She doesn’t have a high personal income from her business, but she also tends to be working less than 40 hours a week, and she loves the freedom her business affords her.
For Merry Jane, being a successful woman means multi-tasking well and having a smoothly running life. It also means having the freedom and flexibility to do what she wants when she wants. Merry Jane is enjoying herself and her business overall due to the freedom she enjoys so she will want to examine any new opportunity to decide whether it threatens her work/life balance or whether it will deliver sufficient profitability to allow her to make even better money while preserving her time freedom. When opportunity comes knocking, Merry Jane can as herself the following questions to ensure she chooses her course wisely:
* How much time will this opportunity take (in hours per week and overall duration)? Is this an investment of time I am willing to make? What might I be able to let go of to free up more time?
* Will this opportunity fit into my existing systems or am I going to have to invent new ways of doing things to take advantage of this? If it will take a change in the way I work, is it worth it?
* Will I enjoy this work? Overall, Merry Jane loves her work and her business and any new opportunity should be equally or more enjoyable than the work she does today to ensure her continued happiness.
* If the answer to all of the above results in a continued desire to pursue the opportunity, Merry Jane can then ask herself … What can I do to make this new opportunity even more profitable? A key opportunity for Merry Jane is to increase her personal income through
her business, so this is always a great question when embarking on a new project.
Whether you’re a Jane Dough, a Tenacity Jane or a Merry Jane, deciding whether to invite a new opportunity in requires quite a bit of consideration. Each type of female entrepreneur should identify the myriad ways the opportunity may affect her, and then make the decision about whether to accept it. One of the greatest joys of owning your own business is the freedom to choose – so choose what’s right for you!
About the Author:
Michele DeKinder-Smith is the founder of Jane out of the Box, an online resource dedicated to the women entrepreneur community. Discover more incredibly useful information for running a small business by taking the FREE Jane Types Assessment at Jane out of the Box. Offering networking and marketing opportunities, key resources and mentorship from successful women in business, Jane Out of the Box is online at www.janeoutofthebox.com