3 tips for being a successful customer centric organisation

29 06 2013

The three rules at the heart of customer centric growth for O2 in Slovakia, are equally relevant to developing high performing NGBs.

At this week’s Marketing Week Live, Jonathan Earle from Telefonica O2 shared three rules upon which O2 have built their success in Slovakia. These are:

1) Stand for something
2) Be consistent
3) Trust your people

Given they’ve taken nearly a quarter of the market share on a shoestring budget, and boast very high staff & customer engagement scores, its worth considering how their success could be applied to growing sports participation.

1) Stand for something – be distinctive
What this means: use market and consumer insight to define a clear and distinctive position within the market. Brands that target everybody end up being relevant to nobody, as one size rarely fits all. So instead focus on creating offers and experiences that are aligned to your brand and are relevant to your target market.

What O2 did: O2 choose to shake up the market by being the “fair operator”, and hence don’t make offers that their target customers would think are unfair. They don’t make anyone sign a contract, when they say unlimited there’s no “but…” in the small print, and if they create a more competitive offer for new customers they automatically extend it to existing customers (not when they ask for it, or threaten to leave, but automatically – otherwise its not fair!).

What NGBs could do: standing for something requires understanding the current market for delivering sport and also the wider needs and expectations of target customers. Understanding the customer’s decision making process when they choose sport, and then specific sports within that, is key to defining a position that will be more compelling than the alternatives (which are usually not sports-related). Of course being distinctive and standing for something takes courage. It means choosing not to stand for some other things, and hence not trying to be relevant to everybody. But that’s how growth and customer loyalty is created – by focusing on being the most relevant and compelling choice for your target market.

2) Be consistent – disciplined execution
What this means: Having chosen to stand for something distinctive, maintain this clear water through being very disciplined about communications and delivery. Consistent communications keep reinforcing the key message to stakeholders and customers. Consistent decisions and delivery reinforce the authenticity of the message through the experience of customers. It’s this consistency that creates brand advocates.

What O2 did: A ruthless focus on consistent messages, offers, and in-store experiences has made the brand experience authentic and compelling rather than just a strap line. This includes considering how staff need to be managed and rewarded so that they too feel that O2 is the “fair operator”. Interestingly, in this respect Earle sees their small budget as an advantage, as they can’t afford to be tactical or distracted by unplanned opportunities.

What NGBs could do: the mixed economy of delivery in most sports involves many organisations with different priorities. NGBs need to clearly communicate how their offers add value to their target customers. They also need to be very clear about what aspects of their products and communications are customisable to local needs and what aspects are non-negotiable.

3) Trust your people – give them room to breath

What this means: being customer focused requires agility and responsiveness to customers. This agility comes from empowering staff to take responsibility and make decisions when talking with customers. This agility can be achieved by shifting budget and/or decision-making responsibility locally, and combining it with a consistent approach to communications and measurement. The motto is clearly define expectations and boundaries, then get out of their way.

What O2 did: O2 believe that their people are the experts, and don’t want them bogged down by bureaucracy. So they “treat their people like adults”, giving them clear and consistent direction and then passing down the responsibility for achieving that.

What NGBs could do: many NGBs are good at empowering local staff to make decisions and even to manage budgets. However, in many cases this empowerment is not supported by clear communication of the chosen positioning and/or success measures aren’t consistent and aligned to the overall outcomes.

In summary, one size doesn’t fit all, and therefore every brand needs to stand for something that is relevant and compelling to its chosen target audience. To achieve scale organisations must then be very disciplined in how they execute across all of their touch points. This consistency of experience comes from treating staff the same way that customers are treated, which means they must be trusted to make the right decisions.

Advertisements




The overwhelming fear of being wrong

4 07 2011

Seth Godin has made an interesting post about a consumers underlying fear of being wrong, and how they behave as a result of it. His final sentence, that this is “the lone barrier almost every product and service has to overcome in order to succeed” is particularly relevant for the sports industry.

From a sports participants perspective, the fear of being wrong could be the fear of having:
– the wrong level of skills (too rusty to try)
– the wrong level of fitness (waiting ‘another week’ until they’re a little fitter)
– the wrong friends (not in the clique)
– the wrong gear (looking like a newbie)
– the wrong attitude (not wanting to be serious / competitive)

In developing, packaging and promoting participation opportunities, sports need to be considering (which means they first need to be asking) how current and potential customers feel about their sport. And the good news is that some sports are already creating some good practice for addressing these fears. Back to Netball helps overcome the fear of no longer having the right skills, as participants can all be rusty together. Likewise the different group speeds available within RunEngland Networks and SkyRide Local’s help people get over the fear of not having the initial fitness to keep up.

But until sports fully understand how current and potential customers feel about their sport (and the same person may have different perceptions/experiences, and hence fears, about different sports), they won’t be able to talk to potential participants in a way that addresses these fears. And until then, they’ll never know what they were missing!





Forget satisfaction, what’s your net promoter score?

13 05 2011

What’s your team’s/club’s/sport’s Net Promoter Score? Or put another way, how many of your current customers would actively refer you to their friends?

While debate rages about how accurately this measure can predict revenue growth, most leading companies still pay more attention to this measure than they do to customer satisfaction scores. Why? Because we’ve all claimed to be satisfied when a waiter asks for our feedback on an ordinary meal. But rarely have we then recommended that restaurant to our friends.

Net Promoter Score was in the London news this week, in an article about Metro Bank. If you’ve not heard of them, they’ve just opened their sixth branch in London and are owned by Vernon Hill. According to the article, Metro Bank have a Net Promoter Score of 97% – that means 97% of their existing customers would recommend them to a friend.

Now they’re still very young, but that’s still a remarkable number. For context, the reported score for First Direct (who have a strong history of growth through word of mouth) was 57%, for RBS was 10% and for Barclays was -35%. In Barclays’ case, that means 35% of its clients would actively dissuade a friend from using it.

From a sports perspective, it’s easy to think that all our regular participants would recommend us to their friends. After all, they must love the club/sport if they keep doing it. But if that were the case, every team and leisure centre would be experiencing astronomic growth!

So what would you need to do, to have 97% of your current customers wanting to recommend your team or sport to a friend..?





The 3rd place…

3 04 2011

I was reading the Starbucks entry on wikinvest the other day. The bit that particularly interested me was the short entry on Starbucks 3rd place – a market positioning based on delivering a differentiated customer experience that became a catalyst for growth within the coffee shop market. growth.
The entry reads: Starbucks’ success is due in large part to the trendsetting triumph of its coffeehouses as an informal and convenient “third place” outside of home and work, ideal both for informal meetings and a quiet moment away from the hubbub of daily life. Wi-fi internet access in all stores also makes it a place where customers can work. Book and music events also take place at Starbucks, in accordance with the company’s goal of making each location a community center of sorts to garner the loyalty of local customers.

It made me wonder whether sport can build on it’s current position, for some customers at least, as being their 3rd place between work and home. What Starbucks did wasn’t new, coffee shops were already a 3rd place for some. But what Starbucks did was build it up into a relevant and compelling customer experience, and one they could use to grow their whole market (not just their share of the existing market).

Golf is a sport that often combines business with sport, and team sports like football create social and community bonds around playing. But how could a sport deliver a customer experience – consistently across all it’s touch points – that set a completely new standard? What would it take for a sport to no longer be seen by its participants as an either/or to working or spending time with the family? Could it be West Wing-style mass jogging networking events, using voice to text software on an iPhone? Or family canoeing days that start with brunch at a cafe, and end at a cinema?

The answer probably isn’t either of those suggestions. But it is out there…





Sustainable business growth at Nike

26 03 2011

Last week, Nike announced their quarterly results. Constant dollar revenues grew 9%, with growth in every geography except for Japan. But it wasn’t the results themselves that interested me; but rather, how they explained their strategy for creating sustainable business growth.

Mark Parker, NIKE Inc.’s President and CEO, said “everything we do at Nike is based on delivering long-term sustainable growth. At the same time, we’re focused on delivering value to our shareholders in the near term. This is the balance you’ve come to expect from Nike, and it remains our commitment going forward.

We strike this balance by leveraging our significant competitive advantages, and chief among them are our authentic emotional connections with consumers, innovative product and retail experiences that lead the industry and a strong NIKE Inc. portfolio that gives us tremendous opportunities for growth and significant levers to drive profitability.

Consumer-driven companies with strong brands and compelling products will be in the best position to maintain their margins, and disciplined companies who are lean and focused on how they use their resources and who are aggressively seeking new ways to grow will prosper. Those who don’t won’t. In that sense, the roadmap for success in the future is no different than it’s always been”

Later in the call Charlie Denson, President of the Nike Brand, added: “As always, we’re focused on managing the business for sustainable long-term profitability. For the Nike brand, that means staying laser-focused on innovation, first at the product and brand level to drive the top-line growth and also driving innovation and discipline into how we run the business.”

While Nike is a multi-national commercial business, I believe there are some important messages here for the UK sports sector; whether the goal is increased profitability, more fans on seats or more participants on pitches, courts and roads.

Nike see their competitive advantages as including “authentic emotional connections with consumers, [and] innovative product and retail experiences”. And the Nike store environment and the style and tone of Nike’s services and communications would confirm this. They lead the market by listening to what consumers say about how they play sport – what it means to them, how it makes them feel and how they want to ‘consume’ it. They’re not bound by the rules of each sport, but rather by the needs of their consumers.

Many people associate Nike with product innovation, whether it’s Nike Air in the 80’s or Nike+ in the 00’s. But innovation also runs through how they manage their business processes and costs. Innovation and discipline is a powerful combination, as the likes of the Barcelona football team or the British cycling team regularly demonstrate. But how often do these twin traits of innovation and discipline emerge within the organizations and processes running sport?

So according to Nike, sustainable business growth comes from:
– being a consumer-driven company (clarity about why you exist, and where your strategic priorities are)
– creating authentic emotional connections with consumers (knowing who you exist for, and why you are still relevant to them)
– delivering innovative and compelling products (aligning what you provide to the people you exist for)
– providing innovative retail experiences (differentiating how you deliver your innovative products)
– embedding innovation into all aspects of the business (creating continuous improvement in both what you produce and how)
– being disciplined, lean and laser-focused (all business processes have a clear and relevant purpose, and are carried out both efficiently and effectively).

These traits exist across elite sport, and no doubt also reflect Nike’s origins with Bill Bowerman and Phil Knight. But they are just as relevant to how sports organisations across the market place could be operating. Can you share a good example of how these principles are being applied within the UK sports market…?





What’s the $ impact of a poor customer experience?

20 08 2009

A new survey conducted by Greenfield Online, has investigated the economic impact of delivering poor customer experiences. The press release on Yahoo! Finance explains how they measured it, but some key take-aways are:

  • 72% of both New Zealand & Australian consumers said they had ended a relationship with a company due to poor customer service.
  • The Australian’s had ended 1.37 relationships each, at an average of AU$403 (US$338)
  • The Kiwis were a little lower, ending 1.17 relationships at an average of NZ$386 (US$257)
  • Indian consumers were the most sensistive to poor service, ending an average of 1.84 relationships each

While I’m always a little sceptical of the results of sponsored surveys (this was was sponsored by Genesis Communications Laboritories), the theme still raises a very interesting thought. It’s a commonly held belief that it’s cheaper to retain a customer than acquire a new one. However, to what extent are companies investing in evolving and innovating their customer experiences, to keep up with customer’s changing expectations?

Call centre’s have been around for a long time, and this research suggests that over half the consumers polled still prefer to use the phone, rather than newer channels such as email or web self-service. But recent call centre innovations seem to focus on developing cost-saving self-service, rather than improved customer experiences. And this survey suggests that it’s these same automated self-services, that feel the most challenging for these defecting customers.

Do you have an example of when a call centre either exceeded or failed to meet your expectations of service?





No friends, no access – no problem!

11 08 2009

Ever wish you could have an exercise buddy to train with? Or wish there was a mass participation race near-by? In the old ‘real world’ you’d be stuck with no friends and no access. But not any more.

MapMyRun have partnered with the Columbus Half Marathon, to bring Columbus to the world. On August 30th, MapMyRun members around the world will join those in Columbus, running the 13.1 mile race. But they won’t just be there in spirit. By registering in advance, and entering the route they will run, they will be able to ‘compete’ with runners in the race and around the world. Better yet, if they succeed, they’ll even get a finishers hat, shirt and medal!

This is brilliant. Never again will race organisers have to turn runners away. Meanwhile, MapMyRun further engage their community of runners, connected by their common pursuit of running (or cycling, walking and skiing, which they also cater for).

Nike have been credited with a similar level of engagement and community around Nike+. And have also held virtual races around the world. Where MapMyRun could push the boundaries, is by extending this concept to those pursuing other sports too. Or perhaps by including video recording of your experience. And by tying it into existing real-life races, they can even cater for the virtually home sick. The loneliness of the long distance runner is no more.

This also has me thinking. What other events/brands restrict access to those being physically present? Orchestra’s already play “live” to theatres full of people around the world, who get dressed up to enjoy the experience of almost being there. Sports broadcast games to giant screens, where fans can gather, sing, drink, cheer and get almost the same experience as being there.

So where else could brands take this..?








%d bloggers like this: