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How to be your customer’s
first choice in a tough market

     Amelia Young and Stuart Baltman
             November 4, 2011
Services are…


                                 • Intangible
                                 • Consumed at the same
                                   time they are delivered
                                 • It varies based on who is
                                   delivering – and
                                   experiencing – it
                                 • Quality is difficult to
                                   define – much less
                                   measure




     The experience is your product. You can’t
              afford to get it wrong.

                                                               2
Not just what’s urgent, but what’s
necessary


              Urgent      Necessary




                                      3
A model for winning customers

                                            Encourage
                             • Engage and excite your customers
                                        Encourage
                              with a vision
                                   • What should they expect to
                                     experience?
                                   • What does “DONE” look like?
                                   • Why should they care?
                                   • How will they feel?



              Empower                                                  Enable

• Provide your customers with the tools                • Ensure your customers have the
  required to deliver on the vision                      knowledge & skills to use the tools
         Empower
   • Give your customers access to the
     people, processes, equipment,                                 Enable
                                                         you have provided
                                                            • Educate, teach and train your
     infrastructure, and other resources that                 customers (if necessary)
     they need                                              • Leverage their capabilities and
   • Make it easy for your customers to                       build the capabilities they need
     choose you                                             • Show them how


                                                                                                 4
The good news is that these are the
only three things you need to do to….
   …. the challenge lies in the fact that you
   must do all three


                   Encourage



          Empower              Enable



                                                5
Remember how you learned to skate?

                               •   “It’s fun”
                   Encourage   •   Watch mom/dad
                               •   Hot Chocolate anyone?



                               •   “Let’s go get some
                    Empower        skates”
                               •   Rink at City Hall
                               •   Teaching process


                               •   Instill confidence
                    Enable         (overcome fears)
                               •   Teach (e.g. A. Stand, B.
                                   Walk, C. Glide…..)




                                                              6
Let’s talk about coffee




                          7
From “coffee” to “for-here, grande, half-
decaf, non-fat, extra foam, hazelnut, latte”

                         •   Teach the Starbucks “Language”
             Enable      •   Guidance from well-trained “Baristas”
                         •   Ordering guides, calling orders
                         •   Where to pay, where to stand

                         • Product variety and customization
             Empower




                           capabilities.
                         • Layout, Décor, Location, Neighbourhood, etc.
     Value               • Outgoing, friendly and knowledgeable staff.
                         • Beans, Cups, insulators, toppings, napkins,
                           etc.
                         • Your beverage, your way.
             Encourage




                         • Your “3rd place”….refuge from home & office
                         • Premium service, product and…..premium
                           price.

                                             Price
                                                                          8
From “coffee” to “for-here, grande, half-
decaf, non-fat, extra foam, hazelnut, latte”

                         •   Teach the Starbucks “Language”
             Enable      •   Guidance from well-trained “Baristas”
                         •   Ordering guides, calling orders
                         •   Where to pay, where to stand

                         • Product variety and customization
             Empower




                           capabilities.
                         • Layout, Décor, Location, Neighbourhood, etc.
     Value               • Outgoing, friendly and knowledgeable staff.
                         • Beans, Cups, insulators, toppings, napkins,
                           etc.
                         • Your beverage, your way.
             Encourage




                         • Your “3rd place”….refuge from home & office
                         • Premium service, product and…..premium
                           price.

                                             Price
                                                                          9
What are the benefits of this approach?


1. Ensures you don’t miss components of your customer’s
   experience that are critical in their process to choose you

2. Removes barriers, making it easy for your customers to do
   business with you

3. Creates barriers that make it challenging for your customers
   to switch

4. Supports premium pricing, which drives margin growth

5. Builds a strong and deep relationship with customers which
   drives loyalty and increased share-of-wallet



                                                                  10
The broken furnace…..



                          “This part looks
                        expensive…I think I’ll
                        charge them enough
                          to buy an i-Pad”




                                                 11
From “I’ll fix the furnace when it
breaks” to a multi-year service contract

         Enable              • Low monthly fee vs. high unexpected
                               repair bills
                             • Leverage print materials, web and call
                               centre staff to educate customers

                             • Create multi-year service contract
         Encourage Empower




                               product/service.
                             • Call centre, billing capabilities, technicians,
                               equipment, etc.

                             • Create need – “an unexpected breakdown
                               could cost you $100’s or even $1,000’s
                             • Professional and highly skilled technicians
                               in uniform at your home 24/7/365




                                                                                 12
From “I’ll fix the furnace when it
breaks” to a multi-year service contract

                                                                            Invoice
           Enable              • Low monthly fee vs. high unexpected
                                 repair bills                                    $20
                               • Leverage print materials, web and call      x36 mo.
                                 centre staff to educate customers            = $720


                               • Create multi-year service contract
           Encourage Empower




                                 product/service.
   Value                       • Call centre, billing capabilities, technicians,
                                 equipment, etc.

                • Create need – “an unexpected breakdown
                  could cost you $100’s or even $1,000’s
           Invoice
                • Professional and highly skilled technicians
                  in uniform at your home 24/7/365
                               $350

                                                Price

                                                                                       13
Breakout Discussion: Which of the 3Es
does your business do best? Gaps?


              Enable
              Empower
      Value


              Encourage




                          Price
                                        14
Who do you need to Encourage, Empower
and Enable?




                                        15
Example: Product differentiated by
service




                         Consumer                                 Retailer
                • Signaled to the consumer that        • They were able to demonstrate
    Enable




                  this is a special product by           a process that would ensure
                  merchandising it in the bakery         freshness would be consistent
    Empower




                • Small portion sizes make it easy     • Unique packaging made it
                  for people to have a small, guilt-     possible for the product to
                  free indulgence                        belong in the bakery section

                • Pizza Pizza deal                     • Demonstrated strong consumer
    Encourage




                • School pizza lunches                   demand from the promotional
                                                         opportunities


                                                                                         16
Example: Multi-stakeholder service


                       Economic Buyer      Direct         Indirect
                                        Influencers     Influencers
        Enable




                        • Head of       • Portfolio     • Clients
             Empower




                          Operations      Managers      • Regulators
                        • Owner/CEO     • Compliance
                                        • Admin staff
    Encourag
       e




                                                                       17
Breakout Discussion: Stakeholder
Identification

                            • Decision-makers up the     • Influences outside
      • Functions             hierarchy
      • Lines of business   • Users down the hierarchy     the organization


       Economic Buyer        Direct Influencers            Indirect
                                                         Influencers




                                                                                18
Unconventional tactics for identifying what will
encourage, empower and enable your customers

                • LinkedIn profiles and discussion threads
     What       • Investor materials
   they say     • Surveys of stakeholders other than the economic
                  buyer

                •   Mystery shopping and talking to call centre reps
     What       •   Who they’re hiring and for what
    they do     •   Marketing campaigns
                •   Comprehensive win/loss analysis

             • LinkedIn discussions
    What     • Talking to your customers’ customers
  others say • Investor presentations of their customers and
  about them   competitors

                                                                       19
Taking Action

   Commit to doing what’s necessary:
   I will do the following in the next 30 days to enhance the value of the
   experience my organization delivers to its customers:

   1. __________________________________________________

   2. __________________________________________________

   3. __________________________________________________




   _______________________        ____________________
   Signed                         Date


                                                                             20
Focus on what’s necessary to identify what a
great experience looks like for your customers


                                  Who?
                    Economic         Direct       Indirect
                      Buyer       Influencers   Influencers


        Encourage   Insight ???   Insight ???   Insight ???
What?




         Empower    Insight ???   Insight ???   Insight ???



           Enable   Insight ???   Insight ???   Insight ???




                                                              21
Thank You

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Encourage empower enable model

  • 1. How to be your customer’s first choice in a tough market Amelia Young and Stuart Baltman November 4, 2011
  • 2. Services are… • Intangible • Consumed at the same time they are delivered • It varies based on who is delivering – and experiencing – it • Quality is difficult to define – much less measure The experience is your product. You can’t afford to get it wrong. 2
  • 3. Not just what’s urgent, but what’s necessary Urgent Necessary 3
  • 4. A model for winning customers Encourage • Engage and excite your customers Encourage with a vision • What should they expect to experience? • What does “DONE” look like? • Why should they care? • How will they feel? Empower Enable • Provide your customers with the tools • Ensure your customers have the required to deliver on the vision knowledge & skills to use the tools Empower • Give your customers access to the people, processes, equipment, Enable you have provided • Educate, teach and train your infrastructure, and other resources that customers (if necessary) they need • Leverage their capabilities and • Make it easy for your customers to build the capabilities they need choose you • Show them how 4
  • 5. The good news is that these are the only three things you need to do to…. …. the challenge lies in the fact that you must do all three Encourage Empower Enable 5
  • 6. Remember how you learned to skate? • “It’s fun” Encourage • Watch mom/dad • Hot Chocolate anyone? • “Let’s go get some Empower skates” • Rink at City Hall • Teaching process • Instill confidence Enable (overcome fears) • Teach (e.g. A. Stand, B. Walk, C. Glide…..) 6
  • 8. From “coffee” to “for-here, grande, half- decaf, non-fat, extra foam, hazelnut, latte” • Teach the Starbucks “Language” Enable • Guidance from well-trained “Baristas” • Ordering guides, calling orders • Where to pay, where to stand • Product variety and customization Empower capabilities. • Layout, Décor, Location, Neighbourhood, etc. Value • Outgoing, friendly and knowledgeable staff. • Beans, Cups, insulators, toppings, napkins, etc. • Your beverage, your way. Encourage • Your “3rd place”….refuge from home & office • Premium service, product and…..premium price. Price 8
  • 9. From “coffee” to “for-here, grande, half- decaf, non-fat, extra foam, hazelnut, latte” • Teach the Starbucks “Language” Enable • Guidance from well-trained “Baristas” • Ordering guides, calling orders • Where to pay, where to stand • Product variety and customization Empower capabilities. • Layout, Décor, Location, Neighbourhood, etc. Value • Outgoing, friendly and knowledgeable staff. • Beans, Cups, insulators, toppings, napkins, etc. • Your beverage, your way. Encourage • Your “3rd place”….refuge from home & office • Premium service, product and…..premium price. Price 9
  • 10. What are the benefits of this approach? 1. Ensures you don’t miss components of your customer’s experience that are critical in their process to choose you 2. Removes barriers, making it easy for your customers to do business with you 3. Creates barriers that make it challenging for your customers to switch 4. Supports premium pricing, which drives margin growth 5. Builds a strong and deep relationship with customers which drives loyalty and increased share-of-wallet 10
  • 11. The broken furnace….. “This part looks expensive…I think I’ll charge them enough to buy an i-Pad” 11
  • 12. From “I’ll fix the furnace when it breaks” to a multi-year service contract Enable • Low monthly fee vs. high unexpected repair bills • Leverage print materials, web and call centre staff to educate customers • Create multi-year service contract Encourage Empower product/service. • Call centre, billing capabilities, technicians, equipment, etc. • Create need – “an unexpected breakdown could cost you $100’s or even $1,000’s • Professional and highly skilled technicians in uniform at your home 24/7/365 12
  • 13. From “I’ll fix the furnace when it breaks” to a multi-year service contract Invoice Enable • Low monthly fee vs. high unexpected repair bills $20 • Leverage print materials, web and call x36 mo. centre staff to educate customers = $720 • Create multi-year service contract Encourage Empower product/service. Value • Call centre, billing capabilities, technicians, equipment, etc. • Create need – “an unexpected breakdown could cost you $100’s or even $1,000’s Invoice • Professional and highly skilled technicians in uniform at your home 24/7/365 $350 Price 13
  • 14. Breakout Discussion: Which of the 3Es does your business do best? Gaps? Enable Empower Value Encourage Price 14
  • 15. Who do you need to Encourage, Empower and Enable? 15
  • 16. Example: Product differentiated by service Consumer Retailer • Signaled to the consumer that • They were able to demonstrate Enable this is a special product by a process that would ensure merchandising it in the bakery freshness would be consistent Empower • Small portion sizes make it easy • Unique packaging made it for people to have a small, guilt- possible for the product to free indulgence belong in the bakery section • Pizza Pizza deal • Demonstrated strong consumer Encourage • School pizza lunches demand from the promotional opportunities 16
  • 17. Example: Multi-stakeholder service Economic Buyer Direct Indirect Influencers Influencers Enable • Head of • Portfolio • Clients Empower Operations Managers • Regulators • Owner/CEO • Compliance • Admin staff Encourag e 17
  • 18. Breakout Discussion: Stakeholder Identification • Decision-makers up the • Influences outside • Functions hierarchy • Lines of business • Users down the hierarchy the organization Economic Buyer Direct Influencers Indirect Influencers 18
  • 19. Unconventional tactics for identifying what will encourage, empower and enable your customers • LinkedIn profiles and discussion threads What • Investor materials they say • Surveys of stakeholders other than the economic buyer • Mystery shopping and talking to call centre reps What • Who they’re hiring and for what they do • Marketing campaigns • Comprehensive win/loss analysis • LinkedIn discussions What • Talking to your customers’ customers others say • Investor presentations of their customers and about them competitors 19
  • 20. Taking Action Commit to doing what’s necessary: I will do the following in the next 30 days to enhance the value of the experience my organization delivers to its customers: 1. __________________________________________________ 2. __________________________________________________ 3. __________________________________________________ _______________________ ____________________ Signed Date 20
  • 21. Focus on what’s necessary to identify what a great experience looks like for your customers Who? Economic Direct Indirect Buyer Influencers Influencers Encourage Insight ??? Insight ??? Insight ??? What? Empower Insight ??? Insight ??? Insight ??? Enable Insight ??? Insight ??? Insight ??? 21