Wednesday, March 25, 2015

'Smart Malls' Turn to Data Troves to Enhance Shopping Experience

Very interesting article in Ad Age this week on the transformation beginning to take place at the local mall and how some of the top upscale developers/operators are turning some of these shopping destinations into "smart malls" by wanting to merge the digital and physical worlds and further engage shoppers.

Thursday, July 17, 2014

CMO Council Webcast - Mastering Adaptive Customer Engagements

Recently attended this very informative webcast from the CMO Council - Mastering Adaptive Customer Engagements. It explores how today’s marketing leaders are driving business performance across the customer-centric enterprise. The focus was on how the customer experience impacts business performance, profitability, competitive differentiation, loyalty, advocacy and affinity.

Saturday, April 19, 2014

Great Customer Experiences Drive Brand Loyalty, Lifetime Value

Great article...Whether it is a consumer’s first visit to a website, or a consumer advocating a brand on social, or a long-term customer searching for product support, marketers can make a huge difference to CLV by just recognizing the stage each consumer is at with their brands and focusing on how to maximize the opportunity every time...providing this holistic experience is not just about technology...but also includes being able to work across departments, with marketing joined with operations, customer service, support and retention teams, to define and deliver together this new approach.
http://loyalty360.org/resources/article/great-customer-experiences-drive-brand-loyalty-lifetime-value


Friday, March 7, 2014

Room #829


Room #829.  The first place I lived when I moved to Chicago in 1991 to start my career, when I didn't know a soul, didn't have a job, or a place to live, until I found this great dorm room for $16/night at Northwestern's graduate school housing with a view of Lake Michigan.  The students were gone for the summer.  Just a few stragglers, a couple families and perhaps some other hopeful people just starting out.  Life wasn't that bad starting out.  This article below brought back some memories...

 1927 athletic club proves fit for luxury apartments


 

Friday, February 28, 2014

CVS Tobacco Decision A Lesson in Filtering Loyalty Programs

Interesting article from Colloquy that discusses the potential impacts on CVS' loyalty program from their decision to stop selling tobacco products.  I don't know if anyone really knows the answer completely just yet.  They are taking a corporate responsibility stand to do right for its customers while also reinforcing their brand re-positioning as a health care merchant.  Aside from these admirable and consistent strategies, I believe they have also fully analyzed their customer data before making such a major business decision and  found that the benefits will fully outweigh the costs over the long-term. 

Earlier in my career, I developed and delivered targeted marketing programs and campaigns for two major cigarette brands for their lead agency.  The tobacco industry is very unique, and response rates to mailings are unheard of compared to just about all other industries.  However, I believe CVS is taking the broad view here and not just looking at tobacco on its own or the short-term.







CVS Tobacco Decision A Lesson in Filtering Loyalty Programs - COLLOQUY

Friday, January 10, 2014

How to Evaluate and Engage Your Own Loyalty Program

This article I wrote recently for Loyalty360 was published this week.  Here it is as well...




How to Evaluate and Engage Your Own Loyalty Program


By Richard Long, Independent Marketing Consultant 


Ok, so you just landed a new role leading an existing, established in-market loyalty rewards program, or perhaps, are providing consulting or agency services to evaluate, enhance and grow it.  Where do you begin?


Before we start, let’s first set the proper scope.  It is generally difficult and not recommended to isolate the loyalty club membership on its own, separate from the overall customer experience that the member has.  Membership is the entire experience, from their first encounter with the brand (usually occurring before you even joined the club) to hopefully them not calling to cancel one day and every point along the way.  Members, like all humans in general, naturally think in a holistic fashion, taking in each and every big or small, good or bad interaction collectively.  So, start by approaching this challenge (and opportunity) by evaluating the entire member experience.


5-Step Strategic Approach


  1. Current Foundational Assessment
    Understand the current state.  Gather information and data.  Start by identifying all key stakeholders in the organization (or perhaps external) that may have an impact on the member experience and meet with them and listen.  Learn first-hand knowledge and insights around their responsibilities and how they (or their team) may directly or indirectly influence the member experience.  Important functional areas include some obvious ones like Customer Service, in-store/on-site personnel and Marketing along with the “behind-the-scenes” functions such as IT, HR and Operations.  For example, in reviewing HR loyalty program-related incentive strategies and one in which a staff member receives valuable compensation for each new member sign-up , does that overtly drive individual frontline behavior to put the “hard-sell” on potential new members, getting that new sign-up at any cost, even if they cancel the next day?  

    Included in this step is a Data Audit, both a collection of all information collected above from these stakeholders as well as an actual data inventory.  This includes gathering, analyzing and interpreting reports and primary/secondary research that may include: loyalty program member financial performance (transactional sales, customer value, revenue, margin etc.) and engagement  behavior (you may need to define), both overall and by segment or tier, if applicable; member persona profiling and RFM history;  retention/attrition;  industry/competitive market landscape; loyalty program industry benchmarking and best practices; member needs and satisfaction; customer service member FAQs, complaints, suggestions and cancel reasons; and social media monitoring.  This is not a complete data list, but you should try to obtain as much as possible.  You may also need to supplement any key gaps with new data requests or even doing your own field research.

  2. Touch Point Map
    Document the member’s holistic experience, sequentially from pre-member to post-member interactions, based on the Current Foundational Assessment, to help you to make key observations and see big gaps and potential areas of opportunity.  If there are differences among key segments, indicate those too.   This touch point map of the member eco-system is not intended to be exhaustive of every single interaction, which can number in the hundreds or more.  If you do try, it generally results in a spaghetti bowl that is difficult to gleam any meaningful insights from other than there being lots of interactions.  Instead, to make this mapping more manageable to document, develop a method of categorizing/color-coding all interaction types.  Just a few example types include marketing communications, events and Customer Service.  Then, as you plot them, still list out specific touch points that fall under them, like the market launch prospect mailing, new member welcome kit, VIP event, birthday reward email or monthly account statement.  Once you have completed this, you might find big clues for answering some of these important questions:
    • Are there sufficient pre-member acquisition activities?
    • Is there an impactful, informative welcome experience?
    • Are multi-channel communications well-orchestrated?
    • How well are you trying to engage members once they are no longer new?
    • Are the communications, benefits and experiences the same for all members?
    • Are there any proactive efforts geared towards inactive or less-engaged members?
    • Are there any post-member re-engagement activities?

  3. Gap Analysis
    Conduct a gap analysis between the current foundational state and a more ideal future state.  Organize your analysis around some of the same foundation assessment and/or touch point categories.  Use data and insights already gathered to begin pointing you down your roadmap path. 

  4. Lifecycle Framework
    Is there a member lifecycle framework in place?  If so, do the stages match the reality?  If a framework does not exist, it is important to create one that allows you to more effectively set goals, plan, target, manage and measure that seamless member experience as they progress through their lifecycle.  Most frameworks begin with the Acquisition stage, soon followed by Welcome.  A final stage is usually Reactivation.  What’s in-between?  Depending on the dynamics of your program and degree of precision you can manage to, there may be other important stages that should be built in, like Trial, Assimilation, Engagement, Re-Engagement and Save to name a few.  The actual names you pick can vary, but conceptually many of the same lifecycle stages should still apply regardless of the industry or program.

  5. Roadmap Planning
    Before you start your roadmap planning, do you know the company business priorities and financial goals, both short and long-term, along with any ones specific to the loyalty program itself?  Company ones are probably documented, but perhaps not always for the loyalty program.  If that’s the case, you should help to establish them, along with KPIs.  As you develop the roadmap, you don’t want to jump the guardrails and get out of alignment, nor be able to measure what is success.

    Develop a loyalty program roadmap template as you start the planning process of all new or enhanced strategies and tactics.  This will enable you to evaluate all roadmap considerations consistently.  Develop evaluation criteria that align with goals and objectives and other company priorities.  Such ones may include Potential Business Impact, Ease-to-Implement, Timing, Budget, Key Stakeholders and perhaps even a Comments section that will be useful as you begin to fill this out and later reference. 


All of your roadmap consideration strategies and tactics you list on the template can be informed from all of the work done up until this point, along with any additional brainstorming and ideation sessions.  Also, it is critical to include as much member input as possible to ensure you are evolving the program around them and their changing needs.  No ideas are bad ideas…just yet.  Once all considerations have been listed, you then evaluate each and begin the filtering and prioritization process.  Your final roadmap should end up being a realistic, actionable and aligned pathway to a more impactful and engaging loyalty program.  Now, you can move on to delivery! 


The depth, rigor and scope applied throughout this process may vary depending on resource, budget, timing and other parameters, yet the more thorough you are, the more informed your overall loyalty program evaluation will be along with the impact of future enhancement roadmap planning and delivery.



About the Author:  Richard Long


Rich is an independent marketing consultant based in Chicago.  Throughout his career, he creatively and passionately puts the customer at the center of strategic planning, decision-making and execution to drive meaningful engagement with all customers to appeal to their hearts, minds and wallets. Rich has gained a unique customer-driven business perspective acquired from roles in consulting, agency and corporate environments along with a broad marketing knowledge base gained from a very diverse set of industry experiences. 

http://loyalty360.org/loyalty-management/january-online/how-to-evaluate-and-engage-your-own-loyalty-program


Thursday, December 19, 2013

Friday, December 13, 2013

Lost and Found: Why Journey Mapping Is Critical to Your Business

just re-posting this interesting article by David Clark of SDL.  I have conducted many journey maps throughout my career and can't say enough about the value they offer if done well.  A few excerpts...


...In theory, an effective journey map highlights the actual flow of the customer experience—from initial awareness of a need to fulfillment of that need. They force a business to look at all of the components of the experience, not just the ones that are well understood, currently surveyed, or well funded for innovation/process improvement.

...Journey Maps are “about the process, not the picture,” and that “different customers go through different journeys. So the most effective CJMs [customer journey maps] look at the paths of individual customer segments. Sometimes there are even different CJMs for individual customers in a single segment

...Each customer will take a different journey—just like snowflakes, no two are alike. The key is to create an optimal set of potential experiences for them, whichever path they take.

...The best journey maps are always created based on ethnographic research, contextual interviews, and, increasingly, analysis of social data.

...Properly executed and measured, your journey map and associated customer feedback will highlight the barriers and the enablers in the journey. Each of these will likely correspond to a part of your organization.

... journey maps are at their best when used to map all customer interactions across the journey to develop an understanding of common pain points and challenges across all the moments of truth in different experiences and across different customer personas

...different customers place a higher value on different experiences

The full article is at
http://www.dmnews.com/lost-and-found-why-journey-mapping-is-critical-to-your-business/printarticle/323279/



Wednesday, October 9, 2013

Marketing, Customer Experience, and Revenue

Walt Disney once said, “Whatever you do, do it well. Do it so well that when people see you do it they will want to come back and see you do it again and they will want to bring others and show them how well you do what you do.”
Disney's wise words encapsulate the power and value of customer experience (CX). Read more at
http://www.dmnews.com/marketing-customer-experience-and-revenue/article/313878/


Thursday, May 9, 2013

When do company apologies make sense?

My wife recently received a "apology" email from the President of G.H. Bass & Co. (see below)letting her know how they had "lost their way over the past few years" which was a surprise to her.

Lately, a handful of companies have taken an "apology" approach to their marketing strategy and branding (ie. JCPenney just released a new ad featuring an apology to customers for recent changes and a promise to start listening more; Domino's campaign a couple years back stating how their pizza had been terrible all these years).  I'm sure declining business results have led these companies to finally realize serious fundamental and operational issues at play.  I think the solution, in addition to actually fixing the key problems (remember Oldsmobile?), doesn't always have to require that they apologize and point out all their past deficiencies to your customers (unless of course they also plan to give them something tangible, like refunds for "not listening to their needs").

In many of these business situations, I think these brands are making matters worse by focusing their attention and perhaps building greater awareness of these so-called transgressions by communicating them with their customers (and non-customers) as part of an overall strategy to introduce some bold new strategies.   I know that I would want my money back for all the pizzas I bought over the past ten years after now realizing I had been duped.

I am not saying that companies should hide serious customer issues or be deceitful in any way.  But it depends on the situation.  Certainly, there are companies that should be required to apologize, like BP, and at a bare minimum, ask for the public's forgiveness, share what significant actions they will take to make things right again (and prevent from happening again) in order to re-store customer trust.

Thoughts?





From: G.H. Bass & Co.
To:
Sent: Wed, May 8, 2013 4:15:52 PM
Subject: G.H. Bass & Co - A Letter From the President.

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Wednesday, April 24, 2013

3 Missed Opportunities in Customer Loyalty

Sharing this good article on customer loyalty...

Customer loyalty is an incredibly lucrative opportunity for brands, yet marketers still struggle to maximize their relationships with existing customers even though recent research from Forrester shows that 93% of companies have placed customer experience on their list of strategic priorities, with 28% claiming it as their top priority.

Clearly brands understand the value of each customer, yet there is a disconnect between knowing what customers need and want and the ability to actually deliver in a way that creates an experience that builds long-term loyalty. Recent advances such as runtime modeling, location-based services and the increased use of smartphones as shopping devices have greatly improved marketer’s capabilities to deliver exceptional customer experiences by anticipating customers’ needs in near real time.
Lasting loyalty is built on three basic strategies: acquisition, retention and engagement. Here are three commonly missed opportunities and how brands can best address the needs of an increasingly mobile and connected customer to foster loyal and lucrative relationships.

Read more...
http://www.chiefmarketer.com/promotional-marketing/3-missed-opportunities-in-customer-loyalty-17042013

Sunday, March 17, 2013

MEASURING LOYALTY BEYOND SIMPLY SPEND

Here's a good paper on how brands are benefitting from the power of advanced multi-channel loyalty software which allows them to extend their loyalty programs beyond simply measuring their customers’ spend but also by capturing all the ways a particular customer impacts a brand

MEASURING LOYALTY BEYOND SIMPLY SPEND

Monday, November 19, 2012

Panera Customer Appreciation. Good Tasting

I wanted to share an example of a great loyalty program member experience…

A couple weeks back, my wife, a member of the Panera loyalty club, received an email invitation for a “special tasting” at a nearby location on November 17th afternoon.  She registered in advance, and we both went.  When we arrived, they had a special room set-up with a person greeting us and taking down our name to confirm us. It was pretty crowded and everyone seemed to be having a good time.  They positioned it as customer appreciation. All in all, it was a very simple, yet nicely done member experience. My wife is not a real frequent visitor, nor high value, nor an infrequent or lapsed visitor as well…just visits periodically. I was not able to determine how might have been specifically targeted, but it was probably to increase her periodic visits/spend or to drive more store traffic to this location.

Do any of you have any loyalty program member experiences worth sharing?

Thursday, July 12, 2012

Lettuce Experience

Hello All-

It's been a very long time since my last post.  Hope everyone is having a nice summer.

I wanted to share two examples of recent customer experiences...



Lettuce Entertain You
About a month ago, we received a postcard for a Lettuce Entertain You restaurant Frankie’s Scaloppine at 900 N. Michigan Ave. downtown for $25 off a meal, good through 6/27. I think they were targeting people in the suburbs to come into the city and dine at one of their restaurants. During the day on Saturday, June 23rd, we thought it would be nice to head into the city and go there again for dinner. My wife Karen called the restaurant about 3pm to make a reservation. They simply replied that “they stopped taking reservations for the evening, but walk-ins were welcome.” So, we decided to make a night of it. We arrived about 7:45pm. The host informed us that they had a private party on the inside and were not taking anymore people. We asked about the “outside” area (not really outside) of the restaurant, which was still serving many patrons. There were at least 5 open tables right in front of us. The host then went on to say that the private party would be spilling out soon and he could not give us a table.

If the person on the phone in the afternoon told us this, it would not have been a big deal, and we just would not have come into the city. However, in sharing this with the host, he honestly couldn’t care less. His only response was that the person on the phone probably thought we lived in the neighborhood. My wife and myself were really incredulous over his lack of empathy or interest in the situation. My wife even asked him, “you really don’t care, do you…you would just prefer we walk away.” He really didn’t say much, so we did just walk away feeling really angry. We know how much emphasis founder Rich Melman places on customer service, so we were really shocked. We drove close to an hour into the city on a Saturday night, parked, for nothing? After walking around afterwards trying to figure out how to salvage the evening, we ended up at other Lettuce Entertain You restaurant Mity Nice Grill. We had an excellent dinner and great service. Afterwards, we even complimented the manager on both.

With the help of a friend who had contacts with lettuce Entertain You, I was able to get my story to a company executive.  A few hours later, I was contacted by the Managing Partner of Frankie's, who offered his sincerest apologies.  He then said he would send us somethiing for our trouble, hoping we would give them another chance.  Later that week, we  received four $25 gift cards in the mail along with a nice personal letter, again, offering us their apologies.

I was impressed how they dealt with this situation and made a real sincere effort to win me back.  We will be making our reservations soon!

Apple
This past Sunday, I visited our local Apple store because my iPod stopped working the day before when I was out for a run.  As usual, the store was buzzing with activity.  I had forgotten to make an appointment, but when I showed up, there was a cancellation so I only had to wait 10 minutes for my apointment.  When my turn was up, the store consultant looked over my iPod for a few minutes, then took it away to further investigate for a few minutes.  When he returned, he said my iPod had gotten a little moisture in it (sweat), which caused it to shut down and stop functioning.  He then handed me a new iPod with no questions asked.  I was very impressed by the ease and resolution of my experience.  They certainly have my loyalty!


Do any of you have any good or bad experiences to share??



Wednesday, October 19, 2011

Thursday, August 25, 2011

How AT&T pushed my business away

I just experienced an all too typical poor customer experience in which the company actually made it easier for me to leave than staying on as a valued customer.

As a result of my consulting with many different organizations throughout the year, there are often times when I am unable to access the Internet through their company networks while working on-site for long stretches of time. Because of this, I purchased a wireless card awhile back through AT&T. A few months ago, I was at a client location where web access was not an issue, so I knew I would not need my wireless card for about 3-4 months. I didn't want to keep paying $60/month if I was not even using it, so I contacted AT&T customer service to see if they could help me out. Rather than cancelling my contract outright, I was pleasantly surprised to learn of a "contract suspension' program they offer, where it was explained I could put it "on hold" with out any monthly fee and then resume whenever I chose. Kinda like stopping the newspaper for a vacation hold. This seemed like the perfect soution.

However, I just realized I had been charged $10/month during this suspension period. I would have realized this sooner had I looked more closely at my monthly statements. Because I had a large credit due to starting this suspension at the start of a billing period, I only saw the overall credit appearing on each statement. But apparently that credit had been going down every month until this latest bill, when it ran out and I now owed $7.37.

I immediately contacted AT&T customer service to find out why I had been charged a monthly fee during this suspension period. I soon learned that there is actually a "reduced" monthly service charge. The original agent who explained this program to me was completely wrong on the key essence of the program. If I knew that before, I would have just ended my contract then rather than pay any amount while my card was never going to be used for this period of time. In explaining this situation with CSR "Willy," it became clear that he was unable or unwilling to make amends for their agent's misinformation, so I asked to speak with a supervisor.

As I waited on hold for about 15 more minutes, expecting to finally speak with a supervisor who might be willing to credit these past few "reduced" monthly charges and as well as waive them for no more than a couple more months until I resumed service, Willy returned to tell me that "he" spoke with the supervisor himself and all they would offer was to allow me to cancel my contract without paying what would be a $106 early-cancellation charge. At first, that seemed like a good deal and an easy solution, but I really didn't want to cancel.

I countered that if they were willing to credit me back the last 3 months and not charge me anything for up to only 3 more months, I would keep my contract and stay an AT&T customer. I further explained that if I cancelled my contract, it was very uncertain that I would return back to AT&T when I do need to resume having a wireless card, as there are many competitive choices out there, but if they kept me in suspension a little longer under the terms it was originally proposed to me, that would ensure I stay a customer and keep paying $60/month or $720/year once I started back up. I further explained that separately, I am an AT&T customer for my for home cable, phone and Internet and spend over $150/month ($1,800/year) for those services, but that did not seem to matter.

So, bottom line, when AT&T could keep me as a satisfied and loyal customer for as little as $60 total (to credit past charges of $30 and waive up to 3 new months of up to $30 maximum while on suspension), they preferred to instead eat $106 and take the chance that I might possibly start up a new wireless card contract with them in a few months when I am again shopping around for a new wireless card.

Wally was not empowered to deviate from their standard terms & conditions, no matter the circumstance. The supervisor could not be bothered to speak with me after I requested to. From a pure financial standpoint, they made a very bad business decision in both the short-term and long-term. From an overall customer experience standpoint, they were unwilling to take responsibility for an agent's misinformation and essentially opened the door and pushed me away rather than trying to retain my business.