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So you want to be innovative?

So you want to be innovative & basics of customer centric innovation presentation given at the World Innovation Congres 2012

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So you want to be innovative?

  1. 1. Customer Centric Innovation in B2B Some notes, ideas and cases
  2. 2. Stefan Kolle (@flb_stefankolle) Welcome We’re no gurus, seminar pro’s or professors … We’re just some guys who’ve been there too (and still are)
  3. 3. We do more than consult, we want to right what is wrong Opinionated – a desire to make a difference – unafraid to take the high road • + 10,000 articles • 75,000 regular readers + 10,000 followers + 350,000 readers Regular speaking & media appearances RecognitionThought leadership
  4. 4. 22/09/2016 4. Our promise We bring you new profit opportunities Ways to make more from the customers you have today Innovations to attract your customers of tomorrow. FUTURELAB
  5. 5. Who will be the first Penguin? There ARE no orcas!
  6. 6. FUTURELAB Today How to innovate in a customer centric way Create some happiness Create sustainable, organic growth (i.e. make more money) Our mission: A more customer-friendly world
  7. 7. FUTURELAB 8 Innovation is not just new products
  8. 8. Source: Mohan Sawhney, ©2002 Brand Organisation A 360° VIEW ON BUSINESS INNOVATION
  9. 9. FUTURELAB Innovate Beyond the Product PROCESSED FOOD PHARMA AIRLINES BANKS COMPUTERS UTILITIES Source: The Doblin Group Most industries focus just on one type of innovation, winners go “beyond” Business model Finance Networking Channel Delivery Brand Customer experience Core process Process. Enabling process Product performance Offering Product system Service
  10. 10. FUTURELAB Deconstruction What (non-obvious) assets do you have? What assets do we really have? Supplier Network Logistics Locations Personae Brand/reputation Partners Audience Your people Skills Etc How can we use these in a different way?
  11. 11. What about the experience behind these processes? Do we actually think about the real customer experience? 22/09/2016 12
  12. 12. The customer evangelists say: • They will be more loyal • Customers pay our salary • They will talk well about us • It’s important The business hears: • This may cost money • This sounds complex • Another marketing hype • Yes, this will cost money See customer experience as a “moral imperative” Most companies FUTURELAB
  13. 13. “Why should I allocate precious budget to experience?” You get paid in Euros, Not in happy faces. There’s only one problem with this FUTURELAB FUTURELAB
  14. 14. The good news There is an intuitive case linking money to experience The same coffee beans The futures market (nov 2011) in a package at the grocery store at Nespresso in a paper/plastic cup from a machine from a machine in a theme park in a cup in a big city café at a deluxe restaurant after proposing on the Piazza San Marco Cost per cup € 0.01 € 0.075 € 0.40 € 1.00 € 2.20 € 2.50 € 5.00 I haven’t got a clue! FUTURELAB
  15. 15. perception 80% of CEO’s believe their brand provides a superior customer experience 8 % of their customers agree (Bain & Company) 22/09/2016 16
  16. 16. Personal experience in 15 industries … and counting 5:1 The worst I’ve ever seen 6000:1The best I’ve ever seen FUTURELAB Experience is about making money Happy customers are most profitable
  17. 17. Your product – your services – your people – your reputation/company – your agreements - … Customers “judge” you by the experience you offer FUTURELAB
  18. 18. How experience makes money Experience drives margin Experience is about making money Metro Bank 3 year savings = 3,04% … rivals = 4+% OPEN 7 DAYS (early & late) FREE COIN COUNTING NO STUPID BANK RULES LEAVE THE BANK WITH YOUR CARD HAVE A COFFEE NEXT DOOR (on us) FRIENDLY & SMILING STAFF OPEN 7 DAYS (early & late) OPEN 361 DAYS A YEAR NO ANNUAL FEE NO LATE PAYMENT FEE NO OVER-CREDIT LIMIT FEE NO CASH ADVANCE FEE NO BALANCE TRANSFER FEE FREE ATM USAGE … (January 2011)
  19. 19. The bottom line: the ones with the best experience win Ultimate premium experience What you get • best online shopping experience • 365 day return policy • free shipping/returns • surprise “overnight” shipping upgrades • extreme customer service • occasionally send customers to competitor sites • no discounts or coupons How they do it • no maximum call times • no sales targets for customer service reps • warehouse 24/7 with 100% product on inventory • recruit & train on people values & fit • active customer engagement (on site & off site) across all social networks ‘go to the customer’ • EVERYONE is a customer-service agent FUTURELAB
  20. 20. The bottom line: the ones with the best experience win The ultimate discount experience “Customer experience includes having the lowest price, having the fastest delivery, having it reliable enough so that you don’t need to contact [anyone]. Then you save customer service for those truly unusual situations.” FUTURELAB
  21. 21. The bottom line: with customer experience we’re We’re not talking about the fluffy stuff “Let’s spread love & hug” “Let’s be like Disneyland”“Let’s go WOOOOOWW!!” FUTURELAB
  22. 22. In fact The experience IS the product FUTURELAB
  23. 23. Defining “what is the experience” The experience IS the product I sell overpriced, underspec’d devices with poor battery life. It just works A low performance gaming console with few titles. This is cool!
  24. 24. This disconnect is the problem Most companies roll the dice on customer experience FUTURELAB
  25. 25. Pre-sales Sales After Sales The Traditional Perspective Search Evaluate Try Select Wait Search*** *** *** *** * * * = Confidential 22/09/2016 26 The Customer’s Reality Case A radically different perspective FUTURELAB
  26. 26. RFP Development Delivery The Traditional Perspective Latent Problem Self- study Discuss @ office 22/09/2016 27 The Customer’s Reality Informal RFI RFP Prep RFP … Case: Professional Services A radically different perspective FUTURELAB
  27. 27. FUTURELAB What is your customer’s journey? Do you REALLY understand all the steps? Have you walked in your customer’s shoes? 22/09/2016 28
  28. 28. Customer Experience Management Is about managing emotions at each step of the journey
  29. 29. 69% of consumers say emotions drive their customer experience Source: strategic resource development group, 2006 In B2B, the average impact of emotional motivation on loyalty outweighs rational motivation by 2:1 margin, in both goods and services Source: Synovate Meta-analysis of 275 studies, 2008 Remember Experience is about emotions The amygdala did it FUTURELAB
  30. 30. Remember Emotional Satisfaction
  31. 31. Remember Emotional Engagement
  32. 32. FUTURELAB Experience: rational and emotional 1 Drive technology, yet also: - Connect to customer needs (strategic, operational, personal) - Look beyond R&D - Use open innovation and co-creation to balance speed and accuracy/success. Business Class Beds • A rested manager is more profitable • A nice bed, meal and movie is more agreeable Custom Procedure Trays • When it comes to life & death there’s no room for error (both moral as financial argument) Factory Chairs • Workers who tire less quickly are more productive • I actually sit more comfortable
  33. 33. FUTURELAB Listen , I shouldn’t say this but I actually like your December events in London best, as it allows me to get in some Christmas shopping. The experience IS the product Case study: a training company FUTURELAB It would be really important for us to have the opportunity to say our prayers appropriately
  34. 34. FUTURELAB 22/09/2016 35
  35. 35. FUTURELAB Insights Not only in B2C!
  36. 36. Know your customer....” These are insights too... CEO: I need to be sure that the strategy I want to propose will be supported by the board. “Nobody ever got fired for buying....
  37. 37. Structural listening: You want to dig deeper A short-cut: Toyota’s Secret Weapon WHY? WHY? WHY? WHY? WHY? FUTURELAB
  38. 38. Structural listening: You want to dig deeper Case: a bank I take care of my family, my employees and my community. Above everything I want respect and recognition for that. FUTURELAB - Business support tools - Trusted Payment management - Time management support
  39. 39. Lawyers Whats the insight?
  40. 40. 41 ALS EERSTE KANTOOR IN NEDERLAND GAAT HVM DAAROM OVER TOT EEN GESEGMENTEERDE MARKTBENADERING 1. beperkt aantal juridische diensten 2. van hoge kwaliteit 3. doch lage “fixed” marktprijs (incl. abonnementsformule) 4. Met de juiste partners voor de overige diensten Een “first price” juridisch pakket dat dankzij extreme proces-efficiëntie in staat is de MKB’er bij te staan met een 1. Gestandardiseerde kwaliteit biedt doch met persoonlijke “touch” 2. Dat fixed price werkt, dan wel met een vaste offerte vooraf, die ca. 25% onder de huidige marktprijs ligt Voor courante diensten Een “middenklasse” juridisch pakket dat dankzij innovatief “account management” & interne processen Voor specialistische diensten Een “topklasse” juridisch pakket waar budgetten bewust worden beheerd maar kwaliteit primeert (wanneer het écht belangrijk is) 1. van de hoogste kwaliteit (alleen partners) 2. Met 100% maatwerk qua inhoud en prijs Spin-out REMOVED
  41. 41. Structural listening: You want to dig deeper Remarkable B2B “classic”: Livevault Activity: • Note the insights you gain • Share them with the group FUTURELAB
  42. 42. Surveys – market research – customer feedback systems … Do you listen, or gather information to write reports? Aren’t we already listening enough? FUTURELAB
  43. 43. FUTURELAB Make the customer a point of continued conversation Case: P&G India – did you speak to a customer?
  44. 44. But obviously you can’t speak to everyone A structural listening mechanism
  45. 45. Enter Fred Reichheld We need something else … Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld. FUTURELAB
  46. 46. 0 1 2 3 4 5 6 7 8 9 10 How likely are you to recommend The ‘ultimate’ question Detractors: Dislike Promoters: DelightedPassives: Satisfaction FUTURELAB
  47. 47. Customer Delight is “the” biggest driver of future business growth … Likelihood to Repurchase (B2B-markets) Share of Wallet (B2B-markets) “delighted customers are 5x more likely to (recommend) repurchase” “at the point of delight, there is an exponential increase in the share of wallet” Source: Customer Delight The game is not about “customer satisfaction” … it’s about “delight”
  48. 48. Customers who recommend you, are more profitable The ‘ultimate’ question – most important finding  spend more  negotiate less  stay longer as customers  are more open to upselling  are easier to service  upgrade quicker  are ready to refer to others  increase staff morale  etc. Customers that are so happy they are likely to recommend a company FUTURELAB
  49. 49. 0 1 2 3 4 5 6 7 8 9 10 This time, there is a money link The ‘ultimate’ question – most important finding Detractors: Dislike Promoters: DelightedPassives: Satisfaction FUTURELAB
  50. 50. This time it’s personal The main reason FUTURELAB
  51. 51. And its even stronger in B2B The main reason
  52. 52. Promoters are more profitable Philips used customer experience to drive revenue FUTURELAB
  53. 53. 5:1 The worst I’ve ever seen 6000:1The best I’ve ever seen FUTURELAB Promoters are more profitable Personal experience in 15 industries … and counting FUTURELAB
  54. 54. Derive recommendations for improvement Implement initiated action NPS survey Plan and initiate concrete actions Prepare and analyze results Execute Feedback Calls Initiate Quick Fixes Listen to each customer Tactically close the loop FUTURELAB
  55. 55. A structural listening mechanism B2B: Look at individuals, not at accounts FUTURELAB
  56. 56. A structural listening mechanism NPS driven innovation Dropoff Distribution Selfmanaged BBQ Academy
  57. 57. FUTURELAB Make the customer a point of continued conversation Case: Orange
  58. 58. The people behind the processes
  59. 59. Reminder: it’s not just about direct buyers Case: patient-centric management at Resmed patients Sleep medicine & non-invasive ventilation nursesdoctorsadministrationinsurance patient familygovernment anyone else of relevance FUTURELAB
  60. 60. 22/09/2016 61 Who is the buyer vs who is the influencer?
  61. 61. 22/09/2016 62 We know who’s the influencer – but what’s the real story?
  62. 62. FUTURELAB Doctors revolt
  63. 63. Observing your customers They key to understanding
  64. 64. FUTURELAB Seed Farmer Auction Super market Consumer Info Sharing Active observation & insight gathering Sales Argumentation Case: Syngenta
  65. 65. 22/09/2016 66. Syngenta really knows its customers
  66. 66. 22/09/2016 67. Help your customers help their customers
  67. 67. Co-Creation Help us develop Customer Council Guide us Customer Communities Help each other Beware: these are not employees! Dont try to be too controlling – let them become selfmanaging. Dont pay them in cash – pay them respect. Back at your office Activate your most loyal and enthousiast customers FUTURELAB
  68. 68. Savouries @Unibake Case
  69. 69. 70 Wireless Router Your iron Finally.... REMOVED
  70. 70. A few suggestions from a guy who’s been there before. Making Customer Centricity Happen FUTURELAB
  71. 71. Always remember It’s a balancing act BE 100% CUSTOMER-CENTRIC Structural Change ORGANISATIONAL STABILITY Quick & Easy Wins FUTURELAB
  72. 72. Make sure your people see the value in customer experience #1 Show Me the Money FUTURELAB
  73. 73. Build a mechanism to close the loop on every customer at every touchpoint #2 Listen & Act on the Customer Voice LISTEN TO THE CUSTOMER ORGANISE A MEETING ON FINDINGS AGREE ON ACTIONS 0 1 2 3 4 5 6 7 8 9 10 Disarm Detractors Delight passives Draw lessons on promoters FUTURELAB
  74. 74. Build a mechanism to close the loop on every customer at every touchpoint #3 Empower your people to go beyond the script FUTURELAB
  75. 75. (cc)ZachKlein “I’m sure this is all interesting but I don’t have time for the fact that customers find our bills too complex. I don’t deal with the customer. So I really think I shouldn’t be here and do something useful instead.” Head of IT Include everyone in your customer experience efforts #4 Link every task to its customer impact … or kill it FUTURELAB
  76. 76. FUTURELAB Words, action lists and process maps are meaningless #5 Set the example & start a movement
  77. 77. FUTURELAB Call-out So, what will you do?
  78. 78. FUTURELAB FUTURELAB A structured approach 1. Show me the Money 2. Listen to the Customer’s Voice 3. Build a platform for aligned action 4. Manage the customer experience 5. Future-proof your channels 6. Manage all your social media 7. Build a customer movement 8. Walk the customer talk
  79. 79. FUTURELAB Available via YOUR FREE E-BOOK DOWNLOAD ON: @FLB_StefanKolle