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February 8th, 2010
We all know how important it is to satisfy – and ideally delight – our customers. After all, it’s much cheaper and easier for a company to look after and maintain its existing clients than to seek out new ones.
But just how big a deal is it to lose customers? Well, according to a new study by WhiteConcierge, UK companies are losing 20 million customers – equivalent to £3.4 billion – simply through bad customer service. That’s not even taking into account those customers who, for example, have been disappointed by the product itself or are unhappy with the price.
Three out of every four customers questioned in the survey switched at least one product or service in the last two years. More than one in five blamed bad customer service for switching to other finance, telecoms and utilities brands, with insurance and electricity providers faring worst.
At the same time, new YouGov/RightNow research has brought us its customer experience wish list for 2010. To improve customer satisfaction this year, companies should avoid these ‘top customer service wrongs’:
- Being put on hold for an indefinite amount of time when calling the contact centre (26% of customers are unhappy about this)
- Premium rate numbers (0870, etc.) (25%)
- Having to make multiple calls or emails to resolve an issue (15%)
- Having to repeat yourself to uninformed agents (10%)
- Being ‘forced’ to interact with an organisation through their chosen communication channel rather than your preferred channel (8%)
- Having to make multiple calls or emails to just find out some information (5%)
- Emails that only ever get an automated response with no issue resolution (4%)
- Not being able to find the information you need on the company website (3%)
Click here to find out more about our Customer Satisfaction Market Research
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February 5th, 2010
In this week’s Thursday Night Insight, Julia Cupman explores the importance of language in marketing communications, highlighting that market research is a small price to pay to avoid costly linguistic blunders.
I moved to America a couple of years ago and my legal title here is a “resident alien”. No I don’t look like ET, but I have descended from a little island 3,000 miles away where we eat Branston Pickle, Yorkshire puddings and cream teas – otherwise known as Great Britain.
As a foreigner in this huge country, my ears have been attuned to the American vernacular. Indeed when one of my friends called me and asked, “How’s it hanging, sister?”, I wondered (a) whether we had metamorphosed into siblings over night, and (b) what exactly she was alluding to as “hanging”? Despite my confusion, I did think, what a friendly country I’m living in!
At one point, I was, however, grateful at being considered just a “sister” given that I heard the same friend call another woman her “girlfriend”, only to then discover that ALL my female friends had “girlfriends”. Good grief, I thought, this place is full of love! (If any American readers are confused here, the term “girlfriend” in the UK tends to be more than just a platonic relationship…)
Although language can create that sense of community, it has also created a linguistic barrier for me on a number of occasions. For example, I was disgusted and outraged at being offered a “fanny pack” in a store selling outdoor gear. I asked myself whether this was some kind of incontinence bag – until the sales person showed me what us Brits would otherwise call a “bum bag”. (Dude, I know what you’re thinking – this term is no better!)
In this country, you want to pay for your meal but you ask for the “check”; you park your car on your “driveway” but drive to work on a “parkway”; you frequent “bathrooms” in which there’s not always a bath; and you “ship” packages across land even though there’s no water transportation involved. But in spite of these absurdities, I’ve conditioned myself to speak the local lingo under the firm belief that when in Rome, you do as the Romans do.
These are just a few examples of the linguistic challenges and confusions I have encountered in my time here as an “alien”. In fact, of around the 200,000 English words in common use in Britain, it is estimated that 4,000 have a different meaning or are used differently in the US. So in summary, we speak the same language, but with a myriad of exceptions, foreignisms and alienisms. We are two nations divided by a common language, as Winston Churchill once said, as well as George Bernard Shaw and Oscar Wilde, apparently.
So what have language discrepancies got to do with marketing? My point is this: for marketers to meet the needs of the market profitably, they have to be able to speak the language of their customers. This might sound simple, but consider the following illustration of how a supplier has clearly failed to talk the talk of its customers. After reading the sign in the photograph below, have a guess at the type of establishment in which this sign is placed, before you read any further.
Believe it or not, the sign is by the swimming pool in the most exclusive hotel here in Westchester, New York. This hotel costs several hundred a night and caters for mainly businessmen and government officials. In displaying a sign forbidding activity from all human orifices, is the hotel not therefore suggesting that these well-to-do people would actually urinate, defecate or release any other bodily substance in the swimming pool had this sign not existed?! What’s more, apart from providing a totally inappropriate message with unsuitable language for its guests, the hotel embarrasses itself further with the non-existent term “expectorting”, which should actually read “expectorating” – otherwise known as coughing or spitting.
It cannot be presumed that the language suppliers speak is the language that buyers understand or relate to, especially where international branding or marketing communications are concerned. Indeed Honda only realized the importance of cultural, linguistic nuances after having introduced its new car “Fitta” into Nordic countries in 2001. Had the major car manufacturer invested in cross-cultural market research, it would have discovered that “fitta” was a vulgar, old fashioned word used to refer to a woman’s genitals in Swedish, Norwegian and Danish. This, by the way, through a rather circuitous and very expensive route, led to the birth of the Honda “Jazz”.
Ikea made a similar mistake in launching a children’s desk called “FARTFULL”. Although this apparently means “speedy” in Swedish, it was an embarrassing blunder given its connotation in English–speaking geographies. Once again, why was research not carried out to test the language and its meaning?
The UK food manufacturer Sharwoods suffered equally costly embarrassment. The company spent £6
million on a campaign to launch its new ‘Bundh’ sauces, only to later discover that this term sounded like the Punjabi slang word for a person’s bottom, thus dispelling a sizeable segment of the market.
We seldom stop to consider the language we use and how countless words and expressions in our branding and communications campaigns can be misinterpreted. This can lead to discrepancies in understanding, sometimes embarrassment such as in the examples above, and a cloud of uncertainty surrounding the message being conveyed. Given the considerable financial resource required for new product development, branding or marketing campaigns, the relatively low cost of market research is a small price to pay to eliminate risk and maximize marketing potential.
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February 3rd, 2010
Much has been written on the subject of brands – not least by B2B International! As we know, a brand is made up of many things – name, logo and values to name but a few. But can there be any doubt about the importance of a brand name? In a Thursday Night Insight article last year, Chrissie Douglas gave us some hints on selecting a brand name:
- Brand names should be simple so that they are easy to understand, pronounce and spell. Two words in the name should be considered the maximum.
- Brand names should be vivid in imagery so that the mnemonics present strong memory cues.
- Brand names should be familiar sounding so that much of the information to which the name relates is already stored in the mind.
- Brand names should be distinctive so that the word attracts attention and does not become confused with other brands.
So, what happens if you get it wrong?
According to research by YouGov/G2, Cillit Bang has been voted the UK’s most disliked brand name. Of the 2,000 British consumers surveyed, a quarter of women, a fifth of men and 27% of over-55s did not like the brand name. Yet, the cleaning brand, which was launched in 2005 by Reckitt Benckiser, is actually considered by its owner to be a “power brand” and its sales show it to be an extremely successful product. So, clearly, brand name is not everything.
Yet, of the top 10 most disliked brand names (shown below), four are new names for previously known brands, including 3 in the top 5:
- Cillit Bang
- Cif
- Starbucks
- Pasta Hut
- Snickers
- Veet
- Accenture
- Aldi
- Plenty
- Mates
Cif used to be known in the UK as Jif, Snickers was for many years called Marathon, and Veet previously went by the name Immac. This perhaps underlines the importance of getting the brand name right in the first place. Once people have started to associate certain values and attributes with a brand, any changes can lead to confusion or mistrust. Unless you recognise the importance of brands and adopt a well thought-out marketing and communications rebranding strategy, you could find yourself with a lot of brand rebuilding work to be done.
To find out more about branding, please refer to several of our white papers, including:
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February 1st, 2010
Colleagues in our Beijing, New York and Manchester offices have all been complaining about the cold weather of late. With much of the northern hemisphere suffering its severest winter for years, most of us are just trying to grin and bear it. Yet some savvy marketers are definitely making the most of the opportunities this bad weather presents. AdAge.com’s ‘Marketers Make Most of Falling Mercury’ article below tells us all about how some marketers are using the latest weather intelligence to feed into their marketing plans:
In Alabama, the night before the Crimson Tide took on the Texas Longhorns for the National Championship, it would normally have been tough to find chips and salsa, maybe beer. But, instead, Chris Hendrix, 27, found empty shelves where the bread should have been. Bottled water was also in limited supply, as panicky residents stocked up for a forecasted inch of snow.
Unusually icy temperatures are gripping most of the U.S. — according to Accuweather, this could be the coldest winter the country’s seen since 1985 — and that’s proving a boon for opportunistic marketers who target their media around the thermometer and have the wherewithal and ability to make their marketing more flexible and nimble.
Bad weather is, of course, relative: An inch of powder in Alabama may trigger mass panic and closures, while for Minnesotans it’s just another winter day. For marketers who understand these differences and capitalize on them, there’s money to be made.
“That’s where the marketing gold that needs to be mined is,” said Scott Bernhardt, chief operating officer at Planalytics, who said 40% of his clients are using weather intelligence to inform their marketing, up from 25% to 30% 18 months ago. “Marketing into a situation that’s favorable for your product [causes] the numbers to go off the chart.”
Creature comfort
Take, for example, Campbell Soup. In addition to the company’s considerable national media advertising, the brand monitors weather patterns in 30 second-tier markets like St. Louis, Des Moines and Tampa, ramping up local radio support when an area gets particularly cold, wet or snowy.
The brand team conducts weekly meetings with media buyers to review a 30-city “misery index” that Campbell has built using an algorithm that incorporates temperature fluctuations within a given day, the year-ago difference, the week-ago difference and extra credit for snow or “nasty” rain. When an area becomes miserable, it gets a positive ranking on the index (negative ratings ironically connote a relatively happy area).
John Faulkner, director-brand communications at Campbell Soup Co., said that when an area becomes about 5% miserable, Campbell will cue up chicken-soup radio ads from BBDO, New York, that typically last three to five days. Its current campaign, which underscores the 32 feet of noodles in every can, ties in neatly with freezing conditions. Mr. Faulkner would not comment on how sales have fared since the company put the “misery” index in place, but it’s clearly worked: Not only has Campbell kept the program going, it’s added a flu-tracking system as well.
Not all advertisers are set up to take advantage of events like the weather because of institutional and technological barriers — in fact, only 40% of Planalytics clients tie that information to marketing. But over the past year there’s been a focus on becoming more nimble — not just in reacting to weather conditions or news events, but also to economic changes and consumer behavior changes.
“A booming economy hides a lot of mistakes,” Mr. Bernhardt said. “People were living in the past and thinking in old ways. Now you have to do things better, smarter.”
Boots made for selling
Zappos, for example, is doing its best to grab the attention of shoppers who may be looking for cold-weather apparel and footwear. Aaron Magness, head of business development and brand marketing, said that the company has adjusted its web presence to capitalize on the wintry conditions. “We planned on having more of a fashion story on our homepage and e-mail blast, but we’re adjusting it to keep winter products top of mind,” he said. Zappos’ homepage now features models wearing coats and the headline “Cold Weather Outfits Are Hot!”
As marketers take advantage of the cold front sweeping the nation, they turn to media that can be swiftly adjusted such as spot radio, e-mail marketing and search advertising. Dan Schock, a retail industry director at Google, said that, for companies looking to buy against newly popular search terms such as “hot chocolate,” “weather forecast” or “long underwear,” his team can launch new search campaigns in just a few hours.
In the days before Christmas, for example, Google worked with several advertisers to geo-target the Northeast and adjust creative to capitalize on the impending blizzard by encouraging consumers to shop from home.
Weather-triggered campaigns are a specialty of the Weather Channel, of course. The cable network is working with advertisers including General Motors, The Home Depot and Nationwide Insurance to do just that, and it has benefited from bigger ratings as chilled consumers stay inside and keep an eye on the forecasts. According to a spokesman, viewership was up 24% in the first five days of the year, compared with the same period a year ago. And on Jan. 7, Weather.com experienced what was likely its biggest page-view day ever, with 82.5 million views. Ironically, it was tough to get those statistics from Weather Channel last week, as its executives were stuck at home due to icy, snowy conditions in its headquarters city of Atlanta.
While some advertisers moved to crank up their buys due to cold, the marketer of Snuggie went in the opposite direction. The mercury plunge caused a run on retail that resulted in an “extreme shortage” for the blanket-with-arms, precipitating Anne Flynn, VP-marketing at Allstar Marketing Group, to halt the brand’s marketing. That notwithstanding, the cold weather is generating plenty of free publicity, be it from local newscasts or appearances of college-themed Snuggies at Bowl Games. “It’s a nice problem to have,” she said, “but when people want their Snuggies, they want them now.” The company is ramping up production.
Slight relief
Snuggie’s not the only brand benefiting. In Palm Beach County, Fla., space heaters were selling out last week, and snow blowers were out of stock in Kansas City, according to local news reports. Planalytics reported that demand for electric blankets jumped 13% in December, ice-melting products were up 12% and thermals rose by 9%.
Classic Ugg boots that retail between $140 and $180 have been moving briskly. “We are hearing good reports from our retailers all over the country, as consumers are shopping with Christmas cash and gift cards,” said Ed Goins, VP-sales at Ugg Australia. “It’s safe to say that the cold weather is certainly not hurting our business and is most likely enhancing it.”
Indeed, cold temperatures appear be helping consumers forget about the recession, at least temporarily. According to Google, searches for “snow boots” began outperforming searches for “cheap boots” in the past few weeks, the first time that’s happened in almost a year.
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January 29th, 2010
In her first Thursday Night Insight of 2010, Caroline Harrison takes the opportunity to go back to basics.
I’m sure – at least I hope – he won’t mind my telling you this, but I had something of a hand in my colleague Oliver Truman’s last Thursday Night Insight. Whilst knowing that Oliver had “volunteered” to write (I guess some might say “been coerced into writing”!) an article for the B2B International blog, I was also aware, with just a couple of days to go, that other commitments meant he hadn’t yet got around to it. So, when I happened upon an article in the marketing press about the possible rebranding of Newcastle United’s beloved football ground, St. James’ Park, and knowing Oliver to be something of a sports aficionado, I forwarded him a link to the said article, wondering if it might inspire him.
Inspire him it did, and some two days later, Oliver treated us to his latest Thursday Night Insight, which I read with interest.
But, while Oliver did use the article I had sent him as the basis for his ‘Insight’, what struck me the most was the specific content of his piece. His blog talked in a broad sense about many of the lucrative tie-ins between a company’s brand and the world of sport – be it shirt sponsorship, providing half-time refreshments or prizes, ‘pure’ advertising at the stadia…and, of course, buying the naming rights to the venues themselves.
While I could not disagree with any of the points Oliver raised, these were not the issues that had first jumped into my mind when I read about the possible selling of the naming rights to St James’ Park. I immediately focused on, if you like, the more ‘emotional’ side of things – the likely reaction of the fans to any proposed rebranding of their stadium and the potential risks or rewards for any company brave enough/rich enough/stupid enough/inventive enough to take on such an opportunity. In a nutshell, Oliver and I, when given the same basic trigger, had very different thoughts and approaches to the issue.
And so, with this in mind, the message of my Thursday Night Insight today is really very simple. Nevertheless, it is absolutely critical.
We can never forget that people are all different. Their various upbringings, culture, language, values, education, interests, priorities, desires and much, much more all combine to affect how they think and how they will react to certain situations and stimuli.
For example, as we all know only too well, the product or service you provide is never going to meet the exact needs of everybody out there. That is why segmentation of a target audience is so crucial to deciding which markets you can serve successfully and profitably.
Equally, if you show a room full of prospective customers your latest product for launch, I guarantee they will all have differing views on it. You may think it’s the greatest thing since sliced bread – but so what? That doesn’t necessarily mean any or many other people will agree!
Even with the customers you already serve – you can’t assume everything’s always hunkydory with them, nor that they will stay loyal for life. Their needs may change, their expectations will likely shift. That’s one of the things that makes your job and mine so difficult.
But that’s also why we turn to market research. While we can never presume to know what all people are thinking all of the time, the great thing is that we are usually able to ask at least some of them how they are feeling.
It’s not that difficult to grasp that people can be unpredictable. Fortunately, nor is it that difficult to use market research to make things more certain.
Incidentally – for anyone who is even remotely interested – as of November 2009 until the end of the current season, Newcastle’s stadium is temporarily known as Sportsdirect.com @ St James’ Park Stadium. Personally, I think that’s a bit odd – but that doesn’t mean everyone will agree with me, of course…!
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